Audit finds control failures at Idaho Vocational Rehabilitation; federal grant reallocation and contractor spending follow

Legislative auditors told the Joint Finance‑Appropriations Committee on Feb. 24 that the Idaho Division of Vocational Rehabilitation (IDVR) failed to establish internal controls needed to ensure compliance with annual appropriation laws, and federal partners have placed the division on high‑risk status.

April Renfro of the Legislative Services Office audits division summarized the office’s Jan. 13, 2025, accountability report and said auditors issued one finding: “the division did not establish procedures and control activities to ensure compliance with appropriation laws applicable to fiscal year 2024.” The report identified failures in financial management systems, incorrect obligations and expenditures reporting, and inaccurate federal financial reporting.

Nut graf: Because IDVR operates multi‑year federal grants that require state matching and strict period‑of‑performance accounting, auditors said the agency’s case management and fiscal systems did not reliably tie commitments to the correct grant period. The U.S. Rehabilitation Services Administration (RSA) designated IDVR a high‑risk grantee; the governor recognized a $10 million federal reallocation (a noncognizable adjustment) that requires state…