Legislative auditors flag internal‑control failures at Idaho Vocational Rehabilitation; federal reallocation, contractor costs and supplements under review

Legislative auditors told the Joint Finance‑Appropriations Committee on Feb. 24 that the Idaho Division of Vocational Rehabilitation (IDVR) failed to maintain controls ensuring compliance with appropriation laws and federal grant reporting. The finding accompanies a governor‑recognized $10 million federal reallotment, a high‑risk designation by the Rehabilitation Services Administration (RSA), a multi‑million‑dollar consultant contract, and supplemental state funding requests to match federal money.

April Renfro of the Legislative Services Office audits division summarized the office’s Jan. 13, 2025 accountability report. “We issued one finding: the division did not establish procedures and control activities to ensure compliance with appropriation laws applicable to fiscal year 2024,” she told the committee. The auditors recommended procedures to monitor expenditures committed in individual plans for employment (IPEs) and further recommended the division and the Legislature address rising costs and participation.

Brooke Dupree, the legislative budget analyst, explained the fiscal facts: RSA reallocated approximately $10 million in federal Rehabilitation Services Administration funds to Idaho late in federal FY2024; the governor recognized that noncognizable adjustment in September. Dupree said the federal grant requires a state match (about 21.3% of federal spending in the grant formula the analyst cited), and IDVR requested a $2.7 million one‑time general‑fund supplemental to meet the state match for that $10 million. The governor’s recommendation included that $2.7 million request plus an…