Forensic audit, $10M federal reallocation and $2.5M consulting contract put Idaho vocational rehab under federal scrutiny

Summary

Legislative auditors reported control weaknesses at the Idaho Division of Vocational Rehabilitation, RSA designated the division a high‑risk grantee, the governor recognized a $10 million federal reallocation requiring state match, and the agency contracted consultants in a noncompetitive process that now totals nearly $2.5 million.

Brooke Dupree, a budget and policy analyst with the Legislative Services Office, told the Joint Finance-Appropriations Committee on Feb. 24 that the Division of Vocational Rehabilitation (IDVR) is managing a complex federal-grant situation after a late federal reallocation and internal reporting problems.

A noncognizable adjustment recognized by the governor added $10 million in federal Rehabilitation Services Administration (RSA) funds for fiscal year 2025, Dupree said; those federal funds carry a state-match requirement. The division has requested a $2.7 million one-time general-fund supplemental to provide the state match, and the governor recommended $1.7 million for services the division expects federal partners to deem ineligible.

Why it matters: The division helps Idahoans with disabilities obtain and retain competitive employment. Auditors and the federal grantor have raised concerns that IDVR did not track obligations and expenditures in a manner consistent with appropriation and grant requirements and that federal financial reporting was inaccurate or unsupported.

April Renfro of the Legislative Services Office audits division summarized the office’s accountability report, saying: “We issued one finding with this report and…

Forensic audit, $10M federal reallocation and $2.5M consulting contract put Idaho vocational rehab under federal scrutiny

Summary

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