Forensic audit, $10M federal reallotment and contractor costs put Idaho vocational rehabilitation under review

Legislative auditors and division leaders told the Joint Finance-Appropriations Committee on Feb. 24 that the Idaho Division of Vocational Rehabilitation (IDVR) is under federal scrutiny after reporting and control weaknesses prompted Rehabilitation Services Administration (RSA) actions, a $10 million federal reallotment and an expanded remediation contract.

Brooke Dupree, a budget and policy analyst with the Legislative Services Office, explained that RSA reallocated $10 million in federal funds late in 2024 to Idaho (a noncognizable adjustment recognized by the governor) but those federal funds require a state match. The division requested a $2.7 million one-time general-fund supplemental to provide the state match for the $10 million reallotment. The governor’s recommendation includes that $2.7 million plus an additional $1.7 million one-time general-fund item the agency estimated would cover services the federal partners may deem ineligible.

April Renfro, audits manager with the Legislative Services Office, reported that a December fiscal monitoring review by RSA identified three concerns: failures to maintain internal controls, insufficient financial management systems, and inaccurate or…