Idaho vocational rehabilitation designated high-risk after reporting lapses; $10 million federal infusion, $2.5 million contractor, and state supplement sought

The Joint Finance-Appropriations Committee was told Feb. 24 that the Idaho Division of Vocational Rehabilitation (IDVR) was designated a high‑risk grantee by the federal Rehabilitation Services Administration after auditors found failures in fiscal controls and federal reporting, prompting a $10 million noncognizable federal adjustment and urgent state budget questions.

The finding by April Renfro of the Legislative Services Office audits division said “the division did not establish procedures and control activities to ensure compliance with appropriation laws applicable to fiscal year 2024.” The designation by RSA followed IDVR’s notification that the legislature did not act on a supplemental request and that the agency faced an over‑obligation risk.

Why it matters: IDVR assists Idahoans with disabilities to obtain and retain employment. Committee members were warned that persistent reporting and control problems could threaten the division’s ability to pay vendors and staff, erode federal funding, and reduce services for people on the agency’s waitlist.

Auditors and agency officials gave the committee multiple figures to show the scale of the problem. IDVR reported about 2,735 active clients and roughly 1,950 qualified applicants on a waitlist. The division’s budget analyst and auditors detailed that the federal reallocation process produced a $10,000,000 increase in available federal funds late in 2024; that award requires a state match of roughly 21.3 percent. To access the $10 million, IDVR has requested a $2,700,000 one‑time…