Disabled Veterans' Employment: Additional Planning, Monitoring,  
and Data Collection Efforts Would Improve Assistance (12-SEP-07, 
GAO-07-1020).							 
                                                                 
To better assist veterans with service-connected disabilities	 
seeking employment, in 2005, the Departments of Labor (Labor) and
Veterans Affairs (VA) signed an agreement to coordinate 	 
employment services for disabled veterans. Around the same time, 
VA rolled out a redesigned employment program for these veterans,
known as the Five-Track program, which also established an	 
employment coordinator position and job resource labs. To help	 
Congress understand the status of these initiatives, GAO was	 
asked to provide information on (1) the progress in implementing 
the 2005 agreement and challenges to implementation, (2) the	 
status of implementation of VA's Five-Track program and 	 
challenges posed by recently returning veterans, and (3) the role
of employment coordinators and job resource labs in serving	 
veterans. To obtain this information, GAO interviewed Labor and  
VA officials and national veterans' service organizations, and	 
conducted site visits in five states.				 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-1020					        
    ACCNO:   A76148						        
  TITLE:     Disabled Veterans' Employment: Additional Planning,      
Monitoring, and Data Collection Efforts Would Improve Assistance 
     DATE:   09/12/2007 
  SUBJECT:   Cooperative agreements				 
	     Employment assistance programs			 
	     Employment of the disabled 			 
	     Federal/state relations				 
	     Program evaluation 				 
	     Program management 				 
	     Rehabilitation programs				 
	     Veterans						 
	     Veterans benefits					 
	     Veterans employment programs			 
	     Program coordination				 
	     Program goals or objectives			 
	     Program implementation				 
	     Veterans' Employment and Training			 
	     Service						 
                                                                 

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GAO-07-1020

   

     * [1]Results in Brief
     * [2]Background
     * [3]Labor and VA Have Implemented Some Elements of Their Agreeme

          * [4]Labor and VA Have Established Joint Work Groups and Taken So
          * [5]The Five States We Visited Had Implemented Some Elements of
          * [6]Labor and VA Have Not Developed a Comprehensive Plan to Guid

     * [7]VA Has Mostly Implemented Its Five-Track Employment Program

          * [8]VA Has Implemented Most of Its Five-Track Employment Program
          * [9]Agencies Have Taken Initial Steps to Address Challenges Pose

     * [10]While Employment Coordinators and Job Resource Labs in the F

          * [11]Employment Coordinators Performed Direct Services, Job Devel
          * [12]Job Resource Labs Provided Additional Opportunities to Assis

     * [13]Conclusions
     * [14]Recommendations for Executive Action
     * [15]Agency Comments and Our Evaluation
     * [16]Interviews with National Labor and VA Officials
     * [17]Site Visits
     * [18]Interviews with Veterans and Veterans' Service Organizations
     * [19]Status of Job Resource Lab Implementation
     * [20]GAO Contact:
     * [21]Staff Acknowledgments
     * [22]GAO's Mission
     * [23]Obtaining Copies of GAO Reports and Testimony

          * [24]Order by Mail or Phone

     * [25]To Report Fraud, Waste, and Abuse in Federal Programs
     * [26]Congressional Relations
     * [27]Public Affairs

Report to Congressional Committees

United States Government Accountability Office

GAO

September 2007

DISABLED VETERANS' EMPLOYMENT

Additional Planning, Monitoring, and Data Collection Efforts Would Improve
Assistance

GAO-07-1020

Contents

Letter 1

Results in Brief 2
Background 5
Labor and VA Have Implemented Some Elements of Their Agreement, but
Data-Sharing Restrictions, Staffing Limitations, and Lack of a
Comprehensive Plan Pose Challenges 11
VA Has Mostly Implemented Its Five-Track Employment Program for Disabled
Veterans, but the Types and Severity of Recent Veterans' Disabilities May
Pose Challenges 18
While Employment Coordinators and Job Resource Labs in the Five States We
Visited Provided Employment Assistance to Some Veterans, Similar Services
Were Available Elsewhere 25
Conclusions 31
Recommendations for Executive Action 32
Agency Comments and Our Evaluation 33
Appendix I Objectives, Scope, and Methodology 35
Appendix II Comments from the Department of Labor 38
Appendix III Comments from the Department of Veterans Affairs 40
Appendix IV GAO Contact and Staff Acknowledgments 44
Related GAO Products 45

Tables

Table 1: Key Elements of National Memorandum of Agreement between Labor
and VA 6
Table 2: Selected Labor and VA Initiatives Designed to Enhance Services
for Program Participants Returning from Recent Conflicts 24
Table 3: Examples of Services Provided by Employment Coordinators and
Others in the Five States We Visited 28
Table 4: Site Visit Locations and Key Selection Criteria 36

Figures

Figure 1: Five-Track Employment Model 8
Figure 2: Implementation of Elements of Agreement between Labor and VA in
the Five States We Visited 14
Figure 3: Five-Track Program Implementation Components and Completion
Status 20
Figure 4: Photographs of VA Job Resource Labs 30

Abbreviations

DVOP Disabled Veterans' Outreach Program
DVET state VETS program director
LVER Local Veterans' Employment Representative
UI unemployment insurance
VETS Veterans' Employment and Training Service
VA Department of Veterans Affairs
VRE Vocational Rehabilitation and Employment

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protection in the United States. The published product may be reproduced
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wish to reproduce this material separately.

United States Government Accountability Office
Washington, DC 20548

September 12, 2007

The Honorable Daniel K. Akaka
Chairman
Committee on Veterans' Affairs
United States Senate

The Honorable Bob Filner
Chairman
Committee on Veterans' Affairs
House of Representatives

In 2005, an estimated 55,000 of the 2.5 million veterans with
service-connected disabilities were actively seeking employment, and
current military operations in the Middle East may raise that number in
the coming years. The Department of Veterans Affairs (VA) helps disabled
veterans find employment through the Vocational Rehabilitation and
Employment services (VRE), and the Department of Labor (Labor) does so
through the Veterans' Employment and Training Service programs (VETS). The
two agencies serve many of the same veterans, and as we have previously
reported, an effective relationship between them is important in giving
disabled veterans the best chance for successful outcomes. In 2005, an
estimated 55,000 of the 2.5 million veterans with service-connected
disabilities were actively seeking employment, and current military
operations in the Middle East may raise that number in the coming years.
The Department of Veterans Affairs (VA) helps disabled veterans find
employment through the Vocational Rehabilitation and Employment services
(VRE), and the Department of Labor (Labor) does so through the Veterans'
Employment and Training Service programs (VETS). The two agencies serve
many of the same veterans, and as we have previously reported, an
effective relationship between them is important in giving disabled
veterans the best chance for successful outcomes.

In October 2005, Labor and VA signed a national memorandum of agreement to
coordinate efforts in advancing the employment opportunities for disabled
veterans. Although the agencies have historically had an agreement, this
most recent one was aimed at further improving collaboration and
coordination. While the national offices of Labor and VA have overall
responsibility for implementing the agreement, many of the activities set
out in the agreement take place on the regional, state, and local levels.
Although the missions of Labor's and VA's employment programs to serve
disabled veterans are similar, the organizational structure of each is
somewhat different: VA administers its programs through 57 regional
offices staffed by federal employees, while Labor administers its programs
through grants to state workforce agencies. In October 2005, Labor and VA
signed a national memorandum of agreement to coordinate efforts in
advancing the employment opportunities for disabled veterans. Although the
agencies have historically had an agreement, this most recent one was
aimed at further improving collaboration and coordination. While the
national offices of Labor and VA have overall responsibility for
implementing the agreement, many of the activities set out in the
agreement take place on the regional, state, and local levels. Although
the missions of Labor's and VA's employment programs to serve disabled
veterans are similar, the organizational structure of each is somewhat
different: VA administers its programs through 57 regional offices staffed
by federal employees, while Labor administers its programs through grants
to state workforce agencies.

Around the same time the agreement was signed, VA rolled out a redesigned
employment program aimed at standardizing rehabilitation services for
veterans with service-connected disabilities, known as the Five-Track
program. The program is intended to serve any disabled Around the same
time the agreement was signed, VA rolled out a redesigned employment
program aimed at standardizing rehabilitation services for veterans with
service-connected disabilities, known as the Five-Track program. The
program is intended to serve any disabled veteran who meets the
eligibility requirements. Both Labor and VA provide services to Five-Track
program participants, and these services are covered by the agreement. As
part of the Five-Track program, VA established the employment coordinator
position to provide veterans with assistance preparing for and finding
employment. The program also included provisions for each VA location to
install a job resource lab with computers, Internet access, and other
materials for veterans to use in their career exploration and job search.

You have asked us to study the progress Labor and VA are making toward
implementing these initiatives. To address this request, we examined the
following questions: (1) What progress has been made in implementing the
agreement signed by Labor and VA in 2005 to coordinate efforts to serve
disabled veterans, and what challenges are the agencies facing in
implementing the agreement? (2) What is the status of the implementation
of VA's redesigned employment program for veterans with service-connected
disabilities, known as the Five-Track program, and what challenges are
posed by recently returning veterans? (3) What role do employment
coordinators and job resource labs have in the employment and training of
disabled veterans, and how have they affected the job search experiences
of these veterans, given other available resources?

To answer these questions, we conducted interviews with Labor and VA
officials and representatives of national and local veterans' service
organizations. We also conducted site visits to five states--Alabama,
California (San Diego Region), Illinois, Michigan, and South Dakota--where
we met with VA and Labor staff, state workforce agency officials, and
program participants, and toured job resource labs and one-stop career
centers. We selected a mix of states based on the following criteria: (1)
dispersion across the four VRE geographic areas (Eastern, Central,
Southern, and Western), (2) both pilot and nonpilot sites for the
Five-Track program, (3) states with large and small veteran populations,
and (4) states with a history of greater and lesser coordination between
VA and Labor at the state and local levels, which we determined based on
input from Labor and VA officials, veterans' service organizations, and
other sources. We conducted our work from November 2006 through September
2007 in accordance with generally accepted government auditing standards.

Results in Brief

Labor and VA have carried out some aspects of their agreement signed in
October 2005 to coordinate services, but difficulties in sharing
information, staffing limitations, and the lack of a comprehensive plan
for guiding and measuring the progress of the agreement pose challenges to
full implementation. Of the elements that need to be implemented by the
national offices, Labor and VA have fulfilled one, partially implemented
four, and have not taken action on the others. National officials have
established three joint work groups, and these groups have begun efforts
on their designated tasks, including proposing a set of shared performance
measures. In addition, each of the five states we visited had taken
actions that would further the implementation of the national agreement.
All five states had a mechanism for referring VA clients to Labor's VETS
program, located within the state workforce agency, for employment
services. All of these states had also entered into an agreement with
Labor and VA concerning the provision of services to disabled veterans.
However, some of these states faced challenges implementing certain
elements of the agreement. For instance, the agreement calls for both
parties to share unemployment insurance wage data, but we were told in one
state that state law forbids the state workforce agency from sharing an
individual's wage data with VA. In addition, the agreement provides for a
state workforce agency staff member to be colocated at VA or provide
itinerant coverage to VA clients, to the extent it is appropriate and
feasible. However, we were told that not all state workforce agencies feel
they have a sufficient number of veterans' representatives to implement
this provision. To date, Labor and VA have not developed a complete plan
for implementing the agreement that outlines long-term time frames and
benchmarks by which progress at both the national and state levels could
be gauged, nor have they made plans for taking action if states do not
take steps to implement the elements of the agreement. As of July 2007,
the agencies had not fully assessed the extent to which states have
carried out activities in which they have a role, and it was unclear
whether the agencies have provided states with sufficient direction on
implementation.

VA has implemented most of its Five-Track employment program for disabled
veterans, but the particular employment needs of newly returning veterans
may pose challenges. In implementing the program, VA officials have
completed a pilot study, trained regional staff on the Five-Track model,
distributed orientation materials, and deployed 74 employment coordinators
nationally. However, some components of the program are still in process.
Specifically, not every location has established a job resource lab, the
official program manual has not been distributed, and some features of the
related Web site are still in development. In addition, some staff
expressed concerns about whether employment programs for disabled
veterans--including both VA's Five-Track program and Labor's VETS
programs--are prepared to meet the needs of participants returning from
recent conflicts in Iraq and Afghanistan, who are surviving with serious
injuries that may have been fatal in past conflicts, such as those
associated with traumatic brain injuries. VA has made initial efforts to
address these needs. For example, VA told us it has made training
materials related to the needs of recently returning veterans available to
VA staff and has appointed a liaison in each regional office to coordinate
services for veterans in medical treatment facilities. Labor has made
similar efforts.

While employment coordinators and job resource labs in the five states we
visited provided veterans with employment assistance, they did not reach
all eligible veterans and some of the functions they performed were
duplicated elsewhere. Employment coordinators provided direct services to
individual veterans, including assisting with job search activities and
helping with employment plans, and also performed outreach to businesses
and community organizations to market VA programs and disabled veterans.
However, while the employment coordinator position description provides
for an array of employment services for veterans across each VA region,
employment coordinators we met with offered only limited services to
veterans outside their local areas. Additionally, some of the
responsibilities of the employment coordinators were similar to those of
other workforce agencies' staff. For example, in some places both
employment coordinators and workforce agency staff were available to
provide labor market information and resume writing assistance to
veterans. Job resource labs provided some additional resources for
veterans, such as increased opportunities for one-on-one job search
assistance from VA staff, but according to staff in some of the states we
visited, not many veterans were using the labs. As with employment
coordinators, job resource labs appeared to duplicate other available
services. For example, we were told that the computers and other materials
in the job resource labs were readily available to many veterans
elsewhere, such as one-stop career centers or public libraries.

To ensure the implementation of their agreement and the efficient and
effective use of resources, GAO recommends that Labor and VA develop a
comprehensive plan to implement their agreement and undertake additional
guidance and monitoring efforts, and that VA review the role of the
employment coordinator, and assess the use of the job resource labs. In
their comments on GAO's draft report, Labor and VA agreed with our
recommendations.

Background

Labor and VA have had a long-standing relationship formalized by
agreements acknowledging their mutual concern and responsibility for
helping veterans with service-connected disabilities transition to the
civilian workforce. Their past efforts to coordinate and collaborate have
faced difficulties, however. In 2005, at the recommendation of a VA task
force and encouragement of congressional staff, the two agencies forged a
new memorandum of agreement. In this agreement, the agencies agreed to
share information, including wage data, and establish and maintain
management information systems to enable accurate yearly reporting. The
agreement also called for three joint work groups to develop performance
measures to assess partnership program results, design a training
curriculum, and establish joint data collection, analysis, and reports. In
addition, the agreement outlined means to promote cooperation and
eliminate duplication of efforts between the agencies. These include
developing an approach to serving veterans that involves both VA and state
workforce agency staff from the early stages, advising all VA clients
about the employment services offered by the state workforce agency, and
establishing an effective process for referring VA clients who are seeking
employment to the state workforce agency. While many of the specific
elements of the agreement need to be implemented at a national level
within Labor and VA, other activities, by their nature, would take place
on the state or local level.1 The agreement provides for separate
memorandums of agreement, containing common goals and measures, to be
executed among Labor, VA, and the states. Table 1 summarizes the key
elements of the national agreement, the specific actions to which Labor
and VA agreed, and the level at which implementation generally would
occur.

1VA refers to its main VRE offices in the states as regional offices. For
the purposes of this report, we discuss actions taken by VRE officials
located in regional offices as taking place on the state level, unless
otherwise noted.

Table 1: Key Elements of National Memorandum of Agreement between Labor
and VA

                                                      Level of    
Key elements of                                 implementation 
agreement           Specific actions               National    State/local 
Joint work groups   Establish three joint work                             
                       groups to address:                                     
                                                                              
                          o shared performance                                
                          measures                                            
                          o training curriculum                               
                          design                                              
                          o joint data collection,                            
                          analysis, and reports                               
Performance         Both parties agree to                                  
measures            establish performance                                  
                       measures.                                              
Management          Both parties agree to                                  
information systems establish and maintain                                 
                       management information                                 
                       systems.                                               
Yearly reporting    Both parties agree to                                  
                       accurate yearly reporting.                             
                       Yearly reports will include                            
                       number of VA program                                   
                       participants; number of VA                             
                       participants referred to                               
                       state workforce agency;                                
                       and, of those referred,                                
                       number registered for                                  
                       employment services, number                            
                       entered suitable                                       
                       employment, and number                                 
                       maintained suitable                                    
                       employment for 180 days or                             
                       more.                                                  
Staff evaluations   In evaluating performance                              
include partnership of their respective staff                              
activities          members, managers from both                            
                       organizations will consider                            
                       documented effectiveness of                            
                       partnership activities                                 
                       between VA staff and state                             
                       workforce agency staff.                                
State-level         Both parties will establish                            
memorandums of      and monitor common goals                               
agreements          and measures within each                               
                       memorandum of agreement                                
                       executed with state                                    
                       partners. Corrective action                            
                       will be taken when goals                               
                       are not met.                                           
Information sharing All information from                                   
                       interviews, counseling,                                
                       testing, and assessment                                
                       will be used by each agency                            
                       with consent of                                        
                       participants and in                                    
                       accordance with applicable                             
                       privacy laws.                                          
Unemployment        Both parties will share                                
insurance (UI) wage information and data                                   
data                accessed from UI wage                                  
                       records and other                                      
                       administrative wage                                    
                       records, as may be                                     
                       available to each agency,                              
                       in accordance with                                     
                       applicable privacy laws.                               
Team approach       Labor and VA agree to                                  
beginning early in  enable local                                           
the rehabilitation  representatives from both                              
process             parties to take a team                                 
                       approach to job development                            
                       and placement activities                               
                       beginning as early as                                  
                       possible in the                                        
                       rehabilitation process.                                
Advise of state     All VA participants will be                            
workforce agency    advised of the benefits of                             
benefits            registering for employment                             
                       assistance and will be                                 
                       encouraged to register with                            
                       their state workforce                                  
                       agency.                                                
Referral process    Participants and local                                 
                       representatives from both                              
                       organizations are required                             
                       to establish and maintain                              
                       an effective mechanism for                             
                       referral and service                                   
                       delivery.                                              
Point of contact    Labor will appoint a point                             
                       of contact for the                                     
                       provision of employment                                
                       services who will work                                 
                       closely with the VA staff                              
                       located in each VA regional                            
                       office's service area.                                 
State workforce     To the extent feasible and                             
agency staff        appropriate, a state                                   
colocated at least  workforce agency staff                                 
part-time in VA     member or other designated                             
office              individual will be                                     
                       colocated or otherwise                                 
                       provide itinerant coverage                             
                       to VA participants.                                    

Source: GAO analysis.

Note: The state/local column includes actions taken by state or local VA
or Labor offices and actions taken by state workforce agencies.

Around the same time the national agreement was signed, VA rolled out the
Five-Track employment program aimed at standardizing rehabilitation
services for veterans with service-connected disabilities and providing a
greater focus on employment options early in the rehabilitation process.
The five employment tracks from which veterans can select are reemployment
with their previous employer, rapid access to employment through job
readiness preparation and training opportunities, self-employment,
employment through long-term services that include education programs and
formal training leading to employment, and independent living services for
those who are currently unable to work due to their disabilities. These
tracks were available prior to the rollout, but the program changed the
way they were presented to veterans. The Five-Track program was piloted in
four regional offices starting in October 2004, and a national rollout
began in November 2005.2 Figure 1 describes the Five-Track model.

2The four pilot sites were Detroit, Michigan; Montgomery, Alabama;
Seattle, Washington; and St. Louis, Missouri.

Figure 1: Five-Track Employment Model

As part of the Five-Track program, VA established the employment
coordinator position and drew up plans to install job resource labs. The
position description for the employment coordinator contains duties aimed
at providing veterans with assistance preparing for and finding
employment. These duties include helping veterans make informed choices
about their employment track, assessing veterans' readiness to seek
employment, and assisting veterans with job networking, development, and
placement. The position description also includes responsibilities for
marketing the VA program to employers and developing partnerships with
other agencies to assist veterans with employment services. Also as part
of the Five-Track program, VA allocated funds for each location to install
a job resource lab with computers, Internet access, and other materials
for veterans to use in their career exploration and job search. VA made
plans to have employment coordinators in most of its 57 regions, and a job
resource lab in each regional office and in every satellite location.

Although the missions of Labor's VETS and VA's VRE programs to provide
employment assistance to disabled veterans are similar, the organizational
structure of each is somewhat different. VA administers its VRE programs
through regional offices--roughly one in each state, with multiple offices
in larger states--and its staff are federal employees. The regional
offices have some autonomy in deciding the operations of the office,
including their working relationships with the Labor programs and the
state workforce agency. Labor administers its programs through the
Disabled Veterans' Outreach Program (DVOP) and the Local Veterans'
Employment Representative (LVER) program, which are funded by a grant from
Labor to the state workforce agencies. DVOP specialists and LVER staff are
employees of the state and are typically housed in state employment
service offices. Although there is evidence LVER staff and DVOP
specialists often perform similar duties,3 the DVOP specialist's role was
designed to provide intensive services to veterans with employment
barriers, including those with disabilities, while the LVER staff role was
designed to market veterans to employers. Labor provides oversight and
monitoring of the state grants through a state VETS program director
(DVET) in each state.

The Labor and VA programs serve similar clientele, but there are
differences in eligibility requirements and the measure of successful
completion. To participate in VA's VRE program, the veteran must have
disabilities that affect a minimum percentage of daily activities, as
determined by VA, and must have an employment handicap related to the
disability. In addition, there is a time limit for receiving services,
generally 12 years following the date the veteran was discharged or
separated from the military or received a disability percentage rating
from VA. The primary outcome measured by VA's VRE program is whether the
veteran obtained and maintained suitable employment, that is, work that is
within a veteran's emotional and physical capabilities and consistent with
the veteran's abilities, aptitudes, and interests. By contrast, any
veteran who was discharged because of a service-connected disability or
who served more than 180 days and was not dishonorably discharged can
receive services through Labor's programs. The primary outcome measured by
Labor is whether or not the veteran entered employment, without requiring
determination of suitability.

3GAO, Veterans' Employment and Training Service. Labor Could Improve
Information on Reemployment Services, Outcomes, and Program Impact,
[28]GAO-07-594 (Washington, D.C.: May 24, 2007).

VA and the state workforce agencies--including DVOP specialists and LVER
staff--work together on the local level. In many states, DVOP specialists
work with veterans who have completed their VA training to help them find
employment. The process by which these referrals are made is not
determined nationally; it is left up to VA regional officials to develop
local policies and procedures. In addition, some state workforce agencies
provide VA staff with state unemployment insurance wage data to verify the
employment status of their clients. Additionally, many VA regional offices
have a DVOP specialist colocated in the office at least part of the time.
However, cooperation between Labor and VA has historically been better in
some states than in others, reportedly in part because of variation in the
number and quality of services provided by DVOP specialists. As a result,
VA's VRE Task Force concluded in its 2004 report that VRE should consider
using DVOP specialist services as one of many options to help its clients,
and not view the DVOP specialist as the sole provider of employment
services.4

4VA Vocational Rehabilitation and Employment Task Force, Report to the
Secretary of Veterans Affairs: The Vocational Rehabilitation and
Employment Program for the 21st Century Veteran (Washington, D.C.: 2004).

Labor and VA Have Implemented Some Elements of Their Agreement, but Data-Sharing
Restrictions, Staffing Limitations, and Lack of a Comprehensive Plan Pose
Challenges

Labor and VA have fulfilled some elements of their agreement to coordinate
efforts, but the agencies face a variety of challenges to fully executing
the agreement, including the lack of a comprehensive plan for implementing
the agreement and measuring progress. The national offices of Labor and VA
have implemented one of the elements of the agreement for which they are
responsible, have begun to address four elements, and have not taken
action on the others. All of the states we visited had taken action to
implement some of the elements of the national agreement, but faced
challenges implementing others due to state privacy laws, staffing
limitations, and other obstacles. In addition, Labor and VA lack a
long-term plan for implementing the agreement that includes timelines and
benchmarks against which progress can be judged, as well as procedures for
dealing with states that are not carrying out activities in which they
have a role. Further, the agencies have provided states with limited
guidance on implementation. As of July 2007, the extent of nationwide
implementation was uncertain because the agencies had not thoroughly
reviewed the implementation of the agreement at the state level.

Labor and VA Have Established Joint Work Groups and Taken Some Steps toward
Implementing Other Elements of Their Agreement

Labor and VA have fully implemented the element of their agreement that
calls for the establishment of joint work groups composed of staff from
both agencies. The agencies have formed three joint work groups to address
issues related to shared performance measures, staff training, and joint
data collection, with the goal of improving the quality of employment
services and suitable job placements for veterans with disabilities.
According to a Labor official, the implementation of the agencies'
agreement revolves around the efforts of these work groups. The work
groups met for the first time in April 2006, 6 months after the agreement
was signed. In January 2007, they conducted a survey of Labor and VA field
staff in 24 states to gather preliminary information about the working
relationship between the agencies at the local level and identify areas
needing improvement. On the basis of the survey results, the work groups
plan to launch a pilot project in eight regional offices in August or
September of 2007 to explore new strategies to improve the partnership
between Labor and VA. Labor and VA officials expect to complete the pilot
project in January 2008, and plan to make recommendations thereafter
regarding the implementation of these strategies nationwide, but the work
groups have not yet made definitive recommendations for program changes.

Four of the elements that Labor and VA are responsible for
implementing--staff evaluations, yearly reporting, performance measures,
and monitoring of state-level memorandums of agreement--are in process but
not yet completed. The agreement between Labor and VA calls for agency
managers to consider the effectiveness of partnership activities between
VA and the state workforce agency when evaluating staff. Although Labor
has implemented such standards for state VETS program directors, these
provisions are not specifically outlined in the performance standards for
other VETS program staff or for VA staff. The agreement also calls for the
agencies to have yearly reports that include measures of the number of VA
program participants referred to the VETS program who registered for state
workforce agency services, the number of participants who entered suitable
employment, and the number of participants who maintained suitable
employment for 180 days or more. While the agencies are collecting data on
most of these measures, they are not currently collecting data on the last
measure.5 With regard to performance measures, one of the joint work
groups has started to develop new shared measures to better assess
partnership activities between the two agencies. For example, one proposed
measure is the percentage of veterans referred from VA to VETS program
DVOP specialists who receive an employment services assessment within 30
days. In addition, the agreement calls for the agencies to monitor common
goals and measures within memorandums of agreement executed at the state
level and stipulates that corrective action will be taken when such goals
are not met. According to information provided by VA, the agency obtained
copies of state-level agreements from all but one of its 57 regional
offices in June 2007, but officials have not yet reviewed the agreements
for common goals and measures.

Labor and VA have not yet acted on the other elements of their agreement
related to information sharing and management information systems. The
agreement calls for the agencies to share information about veterans,
including all information from interviews, counseling, testing, and
assessment. In addition, the agreement stipulates that the agencies will
develop and maintain management information systems that enable accurate
yearly reporting. Although Labor and VA officials told us they are
considering the possibility of establishing national data-sharing
practices and a joint management information system through which
information could be shared, no action has been taken on the national
level.

5According to a 2006 VA report, the agency is developing targets for
outcome measures on the percentage of program participants who are
employed one quarter and three quarters after program exit.

The Five States We Visited Had Implemented Some Elements of the Agreement, but
Faced Challenges to Full Implementation, Including Data Sharing and Staffing
Issues

The 5 states we visited had all implemented a number of the elements of
the agreement between Labor and VA, including advising veterans of the
benefits of registering for state workforce agency services, establishing
a referral process, establishing state-level memorandums of agreement, and
appointing VETS points of contact for VA staff. All 5 states had processes
in place whereby VA advised program participants of the benefits of
registering for employment services with the state workforce agency. All
of the states we visited had also established a process for referring
veterans from VA to the state workforce agency for employment services,
although the process was not the same in every state. In addition, all 5
states we visited had a memorandum of agreement between the regional VA
office serving the state, the state VETS program director, and the state
workforce agency to coordinate their services for disabled veterans. All
of the states had recently revised their state agreement or were in the
process of doing so.6 All 5 states we visited had also appointed a VETS
program contact person for VA staff, and a national Labor official told us
that all 50 states have appointed such points of contact. Figure 2
summarizes the implementation of the elements of the agreement in the 5
states we visited.

6According to information provided by VA, all but one of the agency's
regional offices have established formalized memorandums of agreement with
VETS partners within their states, but only 40 of these agreements have
been updated since Labor and VA signed the national memorandum of
agreement in October 2005.

Figure 2: Implementation of Elements of Agreement between Labor and VA in
the Five States We Visited

Note: A Michigan state workforce agency official told us the agency plans
to have a staff member colocated on a part-time basis at the VA regional
office beginning in summer 2007.

All five states included key VA and state workforce agency staff in the
rehabilitation process, but not all states fully coordinated the Labor and
VA programs by involving DVOP specialists early in the process as outlined
in the agreement between Labor and VA. Typically, VA clients seeking
employment would meet with a VA counselor, VA employment services staff,
and a DVOP specialist from the state workforce agency. However, the states
varied in terms of the point at which the DVOP specialist became involved.
In three of the states we visited, DVOP specialists provided assistance to
veterans soon after they entered the VA program, typically by presenting
labor market information to veterans to incorporate into their vocational
rehabilitation plans. In the two other states we visited, DVOP specialists
did not typically meet with veterans until they had neared the end of
their VA training programs or were otherwise prepared to seek employment.
In one of these states, we were told that this was due to negative past
experiences in providing veterans services from both VA and DVOP
specialist staff at the same time.

The five states we visited were collecting data on all but one of the
yearly reporting measures outlined in the agreement between Labor and VA,
and staff identified challenges to implementing this remaining reporting
measure. In all five states, agency staff told us that they were gathering
data on the number of VA program participants referred to the VETS
program, and of those referred, the number who registered for state
workforce agency services and the number who entered suitable employment.
In these states, VA staff said that they tracked program participants for
60 days after they obtained suitable employment, and we learned that state
workforce agencies tracked veterans for varying lengths of time. However,
none of the states were tracking the number of VA program participants who
maintained suitable employment for 180 days or more. In four states, some
agency staff told us that they would face challenges implementing this
additional reporting measure, and staff in three states said that this was
because following up with veterans for 180 days would likely require
additional staff time and resources.

In four states, workforce agencies were able to share UI wage data with
VA, but in one state, they faced challenges sharing such data because of
state laws. UI wage data are managed by the states.7 According to VA
officials, if agency staff want to use this information--for example, to
verify that a client is employed--they need to obtain the data from the
state workforce agency. In Illinois, VA and the state workforce agency had
signed a shared data agreement that allowed the workforce agency to
provide VA with UI wage data. In Alabama, state workforce agency staff
told us that they had given VA staff direct access to their database,
which contained UI wage information. In California's San Diego region, VA
and the state workforce agency had developed a centralized process in
which VA sent UI wage data requests to the state workforce agency
headquarters. And in South Dakota, workforce agency staff told us that
they were able to share UI wage data with VA, but said that they rarely
received requests for such data. However, in Michigan, we were told that
they were unable to share UI wage information because state law prevents
the workforce agency from sharing an individual's wage data with VA.

7Each state maintains UI wage records to support the process of providing
unemployment compensation to unemployed workers. The records are compiled
from records submitted to the state each quarter by employers and
primarily include information on the total amount of income earned during
that quarter by each of their employees.

Staffing limitations prevented some states from having a full-time
colocated DVOP specialist at the VA office, although most had at least
part-time coverage from an itinerant DVOP specialist. The agreement states
that to the extent feasible and appropriate, a DVOP specialist or other
designated individual will be colocated at the VA office or will otherwise
provide itinerant coverage to VA participants. Only one of the five states
we visited had a full-time colocated DVOP specialist at the VA office.
Three of the other states we visited had part-time colocated DVOP
specialists, but one state had no coverage at the VA office at the time of
our visit. VA staff in the states with a DVOP specialist on site part-time
told us that such an arrangement was useful, and staff in two states said
that they would like to increase the amount of colocation time per week.
However, officials in three states told us that funding constraints
limited the number of workforce agency staff and thus the workforce
agency's ability to share a DVOP specialist with the VA office. National
VA officials also told us that fluctuating state budgets made it
challenging for states to commit to providing a colocated DVOP specialist
from year to year.

None of the five states had fully implemented the information-sharing
element of the national agreement between Labor and VA, and staff in all
five states told us that some of this information sharing was unnecessary.
The agreement states that both agencies will share all information about
veterans gathered from interviews, counseling, testing, and assessment. VA
staff in the five states we visited told us that they did not regularly
share all of the information outlined in the agreement with the state
workforce agency, and staff in all states said that it is not necessary to
share all information about veterans in order to help them find
employment. In all five states, VA staff shared a standardized, but
limited, set of information with the state workforce agency when referring
a veteran for employment services. For example, in one state, VA staff
told us that this standardized set of information included the veteran's
contact information, employment goal, and level of education, as well as
general information related to the veteran's barriers to employment.
However, VA staff in all five states told us that they did not regularly
share specific information about veterans' disabilities with state
workforce agency staff, and staff in two states said that this was a
result of privacy concerns.

None of the five states we visited were using partnership activities
specifically to evaluate staff, as outlined in the agreement between Labor
and VA, and some officials said it would be impractical. In the three
states that had a centralized referral process and thus had minimal
contact between state workforce agency and VA staff, some local agency
staff stated that it did not make sense to evaluate staff on the
effectiveness of their partnership activities. In all five states, we were
told that staff evaluations contained a general category related to
teamwork or cooperation, but did not include specific performance measures
to evaluate DVOP specialists and VA staff on the effectiveness of their
partnership activities. In one state, workforce agency managers told us
that they were considering implementing specific performance measures
related to the effectiveness of partnership activities.

Labor and VA Have Not Developed a Comprehensive Plan to Guide Implementation,
and Have Not Fully Assessed Data on Implementation

Labor and VA lack a comprehensive plan for implementing their agreement,
and have not set benchmarks or long-term time frames for implementation.
While Labor and VA have designed a pilot project, agency officials have
not developed a plan to guide the full implementation of the agreement.
Although the joint work groups have set short-term time frames for the
pilot project, and plan to make recommendations regarding pilot project
expansion in May 2008, the pilot project plan does not include long-term
time frames for the implementation of the agreement, and Labor and VA
officials told us that they considered implementation to be a work in
progress. In addition, the pilot project plan does not outline steps for
taking action when states do not implement the agreement.

It is unclear whether national VA and Labor officials have provided
sufficient direction to states on the implementation of the agreement. In
one state, workforce agency staff told us that guidance from national
officials on implementing the agreement was lacking. Both agencies sent
letters to regional and state officials notifying them of the agreement,
but have done very little to assist with implementation. A national VA
official told us he has discussed implementation in conference calls with
VA program managers and employment services staff, but a national Labor
official told us his agency has not done any follow-up. In addition, the
agreement calls for the agencies to take corrective action when common
goals outlined in state-level memorandums of agreement are not met.
However, both VA and Labor officials told us that they have not yet
defined steps for corrective action. Labor also told us that it does not
have much leverage to induce state workforce agencies to implement the
agreement given its limited authority over such agencies.

Further, as of July 2007, Labor and VA had not yet fully assessed state
actions to implement the agreement, so the extent to which the national
agreement has been implemented across all states was unclear. The agencies
collected some data on states' activities in the January 2007 survey of
agency field staff conducted by the joint work groups. VA officials told
us that the survey identified several areas for improved collaboration
between the agencies, including clarifying definitions of terms,
increasing staff training, and facilitating communication among staff.
However, the results cannot be used to understand the extent of nationwide
implementation because the survey only included about half of the states
and did not cover all aspects of the national agreement. In June 2007, VA
conducted a second survey asking all of its 57 regional offices to submit
copies of their state-level memorandums of agreements to national VA
officials, and received these agreements from all but one regional office.
A VA official told us that the agency plans to review these agreements to
assess their alignment with the national agreement and offer assistance to
states that are having difficulties, but it had not done so as of July
2007.

VA Has Mostly Implemented Its Five-Track Employment Program for Disabled
Veterans, but the Types and Severity of Recent Veterans' Disabilities May Pose
Challenges

Although VA has almost fully implemented the Five-Track employment
program, the agency may face challenges serving the employment needs of
recently returning veterans because of the types and severity of their
disabilities. VA officials told us that they have fully implemented four
of the seven components of the Five-Track employment program and the other
three components are mostly complete. VA officials have noted that many
recently returning veterans have serious injuries and they anticipate
higher caseloads as increasing numbers of veterans apply for program
benefits. In response to these challenges, VA has taken some initial steps
to address the specific employment and training needs of these veterans,
and Labor has made similar efforts.

VA Has Implemented Most of Its Five-Track Employment Program for Disabled
Veterans, but Some Components Are Still in Process

According to VA, officials have completed most of the seven components
needed to implement the Five-Track program. While four components have
been completed, three other components remain in process. Figure 3 shows
the seven components of the Five-Track program and their respective
completion status.

Figure 3: Five-Track Program Implementation Components and Completion
Status

VA officials told us that three of the initial components of the new
Five-Track employment program--the national distribution of orientation
materials, the pilot study, and introductory staff training--have been
fully implemented. According to VA, officials have also completed the
distribution of Five-Track orientation materials nationally, including a
new video and a booklet that describes program eligibility requirements.
VA officials have also distributed information nationally on each of the
five tracks to employment--reemployment, rapid access to employment,
self-employment, employment through long-term services, and independent
living services. In October 2004, VA officials began a pilot study in four
regional offices to test several proposed components of the Five-Track
program. At the pilot study's completion in September 2005, VA issued a
status report based on the study results and made some changes to the
program before beginning the full launch a few months later. VA also
completed introductory training for VRE staff members nationwide on the
Five-Track program, between February and April of 2006. The VA staff who
received this national training were expected to return to their local
offices and train other staff on the program. According to VA, the
training included simulated case management exercises and a review of the
logistics and application of the new job resource labs.

VA has also hired and trained employment coordinators. This position was
developed to revamp the existing employment specialist position and
provide more direct assistance to veterans with job readiness and job-
seeking skills, as well as helping them with job placement. Training for
employment coordinators began in November 2005, and a few months later, 52
employment specialists were reclassified as employment coordinators. Since
then, VA national officials have hired additional employment coordinators,
and as of April 2007 there were 74 employment coordinators nationally.8
Qualifications for the employment coordinator position include knowledge
of marketing concepts, thorough knowledge of the VRE program and its
objectives, and diverse presentation skills. Of the 6 employment
coordinators we spoke with, 3 had prior experience providing employment
assistance to veterans, either as a DVOP specialist or an employment
specialist.

8As of April 2007, 48 VA regional offices were staffed with at least one
employment coordinator. The nine regional offices without employment
coordinators were Wilmington, Delaware; Boise, Idaho; Wichita, Kansas;
Togus, Maine; Jackson, Mississippi; Reno, Nevada; Manchester, New
Hampshire; Manila; and White River Junction, Vermont. These offices had
other staff providing employment services in addition to their assigned
duties.

Information provided by VA shows that the agency has mostly completed the
implementation of 160 job resource labs. The job resource labs were
intended to be a supportive tool to help VA staff provide veterans with
employment resources and job readiness assistance. As of April 2007, 144
labs (90 percent) labs were operational, although some were utilizing
borrowed computers.9 Sixteen of the labs (10 percent) were further
postponed due to construction issues, lack of appropriate space,
difficulty securing Internet access, or complications obtaining computers.
Before providing funding, VA conducted a survey of its field offices to
assess existing resources. Then, between June and September 2006, VA
provided field offices funding to purchase noncomputer items such as
furniture and books. VA transferred $1.5 million to the VA Office of
Information and Technology for procurement of 359 computers, but there
were delays in obtaining them. VA officials told us the computers should
be available in summer 2007.

According to VA, officials have begun to implement a new employment
resource Web site and a program manual, but they are not yet completed. VA
launched the employment resource Web site, known as vetsuccess.gov, in
2005 to be a new supportive tool for veterans and VA staff. Currently,
veterans may access the Web site via the Internet and can utilize the site
to view program videos, employment resources, employment search links, and
information about VA partner organizations. VA is planning to install
additional interactive features on the Web site, including a log-in option
that would allow veterans to post resumes and employers to search and view
them. However, a VA official told us the installation has been delayed
indefinitely until security concerns can be resolved. Additionally, as
part of the Five-Track program implementation, VA officials plan to
distribute a program manual to staff. However, a VA official told us the
agency is postponing the release of the manual until the employment Web
site features have been completed and can be included as part of the
manual.

9Information provided by VA included one lab that was located in a state
workforce agency one-stop center. VA data characterized the lab completion
status as not applicable; therefore we did not include the lab as part of
our analysis.

Agencies Have Taken Initial Steps to Address Challenges Posed by Employment
Needs of Recent Veterans because of the Types and Severity of Their Disabilities

Officials in some states we visited raised concerns about the ability of
employment programs--including the Five-Track program--to address the
needs of severely disabled program participants returning from recent
conflicts in Afghanistan and Iraq. According to VA officials, many
recently returning veterans have multiple and severe disabilities, such as
speech, hearing, and visual impairments as well as loss of limbs and brain
injuries, and behavioral issues due to the stress of combat. Additionally,
veterans from recent conflicts are surviving with more of these serious
injuries that would have been fatal in past conflicts, a fact that can
present major challenges to providing training and securing appropriate
job placements. For example, VA officials in one state told us that from
their experiences assisting veterans with traumatic brain injuries, they
have found that these veterans may find it difficult to filter their
thoughts and actions and may act and speak inappropriately, making
employment placement more difficult. In addition, VA officials anticipate
increased caseloads because of expanded outreach efforts to veterans and
service members separating from the military, and increasing disability
claims from veterans of recent conflicts.

To address these challenges, VA told us that officials have developed
programs to provide additional resources for recently returning veterans
to receive employment services. VA officials have an early outreach
program, Coming Home to Work, to provide civilian work experience to
eligible service members pending medical separation from active duty at
military treatment facilities. VA has also designated a particular
individual in each VA regional office to coordinate vocational
rehabilitation and employment case services for recently returning service
members located in military treatment facilities.

According to VA, officials have also made training available to staff on
the specific disabilities that may be more prevalent among recently
returning veterans. The agency has developed training materials on
traumatic brain injuries, amputations, and transferable work skills, which
an official told us have been made available to VA counselors and
employment coordinators through VA internal satellite broadcasts and other
means. Additionally, VA plans to develop an online training curriculum
that would include training specific to the needs of recently returning
veterans that will be available to VA staff. In addition to training, a VA
official told us the agency used internal staff meetings and conference
calls to address the immediate concerns of VA staff related to recently
returning veterans.

Labor has also taken some initial steps to address the challenges of
serving severely disabled Five-Track program participants returning from
recent conflicts, and we were told staff who work with these veterans have
access to VA training. Labor has a program, called Recovery and Employment
Assistance Lifelines (REALifelines), to provide individualized job
preparation, counseling, and reemployment services to veterans seriously
injured in recent conflicts. VETS program staff, including DVOP
specialists and LVER staff, can also access the National Veterans'
Training Institute VETS NET online newsletter, which often includes links
to information on serving recently returning veterans. In addition, VA
told us that state VETS program directors have access to training
materials related to the needs of recently returning veterans such as
traumatic brain injuries and amputations. Similarly, VA told us that state
workforce agency staff will also have access to its planned online
training curriculum, including courses specific to the employment needs of
recently returning veterans. A list of selected VA and Labor initiatives
related to addressing the employment needs of recently returning veterans
is in table 2.

Table 2: Selected Labor and VA Initiatives Designed to Enhance Services
for Program Participants Returning from Recent Conflicts

Initiative      Description                                               
Programs           o Recovery and Employment Assistance Lifelines--Labor  
                      program providing individualized job training,         
                      counseling, and reemployment services to veterans      
                      seriously injured in recent conflicts                  
                      o Coming Home to Work--VA outreach program providing   
                      civilian work experience to VRE-eligible service       
                      members pending medical separation                     
                      o Vocational Rehabilitation and Employment Case        
                      Coordinators--coordinate VRE services for recently     
                      returning service members located in military treatment
                      facilities                                             
Staff training     o Recent VA staff training on amputation, traumatic    
                      brain injuries, and blast injuries                     
                      o Distribution of training materials to VRE regional   
                      offices and state VETS program directors               
                      o VA planned development of online curriculum that will
                      be available to VA and Labor staff                     
Staff resources    o National Veterans' Training Institute VETS NET       
                      online newsletter                                      
                      o Regular internal VA staff meetings and conference    
                      calls                                                  

Source: GAO analysis.

While Employment Coordinators and Job Resource Labs in the Five States We
Visited Provided Employment Assistance to Some Veterans, Similar Services Were
Available Elsewhere

Employment coordinators and job resource labs in the five states we
visited provided employment services to veterans, but some of these
services were available elsewhere. Employment coordinators generally
provided direct employment services to veterans and performed job
development activities and outreach to employers and the community.
Despite the fact that the employment coordinator position description
outlines a variety of services to be provided to veterans across each VA
region, these activities were largely limited to their local areas. In
addition, employment coordinators performed some services that duplicated
other available resources. Although job resource labs afforded some
additional opportunities for VA staff to assist veterans with employment
activities, they generally were not used by many veterans. Job resource
labs also provided some resources that veterans were able to access
elsewhere.

Employment Coordinators Performed Direct Services, Job Development, and Outreach
in Their Local Areas and Duplicated Some Other Available Resources

The employment coordinators in the five states we visited provided some
direct assistance to veterans. The services to veterans included helping
with veteran employment plans, resume preparation, interview preparation,
and job search activities. In addition, employment coordinators with whom
we spoke typically provided veterans and VA counselors with labor market
information, which generally included average salary, to assist veterans
in selecting potential career fields. Other duties varied by state and
included managing the referral process to DVOP specialists, conducting
follow-up with veterans after they have been placed in employment,
arranging for the distribution of a stipend given to veterans during their
employment search, and focusing on providing services to veterans who were
having difficulty finding employment. One employment coordinator reported
that she assisted employers with making workplace accommodations for
disabled veteran employees who were participants in the VA program, while
two others reported that they had not had the opportunity to provide such
accommodations. In one case, the employment coordinator had carved out the
specific role of assisting veterans with federal job applications.

Most of the employment coordinators we met with also performed some job
development and outreach activities. These activities included promotion
of VA programs, developing partnerships with businesses and other
agencies, and marketing and providing VA employer incentives. For example,
an employment coordinator in one state we visited told us she partners
with other agencies to obtain employment leads for veterans and another
employment coordinator told us that he markets an incentive program to
employers through which VA pays half of the veteran's salary for the first
6 months of employment. Some employment coordinators also told us they
conduct presentations about VA at community events.

Employment coordinators in the five states we visited primarily provided
services to veterans in their local areas, even though VA originally
intended that they provide a variety of employment services across each VA
region. In the five states we visited, the employment coordinators seldom
traveled to offices outside their local area, and when some did, they met
with a much smaller number of veterans. VA staff in several locations told
us the lack of face-to-face contact with an employment coordinator
disadvantaged some veterans. For example, VA staff in one office without
an employment coordinator on-site found communication via phone and e-mail
to be less effective in providing employment services to veterans than
in-person interactions. Similarly, an employment coordinator in another
state told us that veterans outside her local area do not receive the same
level of services from her as those located in her immediate area. VA
acknowledged it was not aware of the extent to which employment
coordinators were able to work with veterans outside their local areas. In
addition, VA national officials acknowledged that the current number of
employment coordinators is not enough to provide a full array of
employment services to all program participants, as they had originally
intended when they wrote the position description. They told us they tried
to compensate for this deficiency by assigning employment coordinators to
offices in the most populous areas and expected that state workforce
agency staff would serve veterans in other locales. In one state, the
employment coordinator was stationed over 200 miles away from the office
we visited and was only able to provide services for 15 of the
approximately 300 veterans served in that office at the time of our
interview. The employment coordinator, VA counselors, and some veterans in
this state told us they considered local DVOP specialists to be the
primary employment services providers for program participants.

According to veterans and VA staff in the five states we visited,
employment coordinators provided some unique services to veterans in their
local areas, but other services were also available from alternative
sources. Employment coordinators provided some services that were not
available elsewhere, such as marketing VA employer incentives, promoting
the VA program through networking and ongoing contacts with employers,
distributing veterans' employment search stipend, and assisting with
employer accommodations. However, according to veterans and VA staff in
the five states we visited, some of the direct services provided by
employment coordinators were similar to those offered by others. For
example, according to some VA staff and veterans, college career centers,
DVOP specialists, and VA contractors all provide veterans assistance with
resume writing and interviewing techniques. Additionally, some veterans
and VA staff told us that both employment coordinators and state workforce
agency staff can assist veterans and VA counselors with labor market
information. Similarly, in two states we visited employment coordinators
were available to provide more services to veterans who were having
difficulty finding employment, while DVOP specialists were also
responsible for facilitating services for veterans with special employment
needs. One veteran told us he met with the employment coordinator daily
for assistance with resume and interview preparation and obtaining
employment leads while also working with a DVOP specialist weekly.

The outreach activities employment coordinators conducted were also
sometimes performed by others. In some states we visited, both employment
coordinators and DVOP specialists marketed to employers on behalf of
disabled veterans in the VA program by identifying employer hiring
contacts and obtaining information on job vacancies and hiring
prerequisites. Similarly, in some states employment coordinators and DVOP
specialists performed job development activities, such as fostering
partnerships through participation in job fairs and networking with local
businesses. VA staff in two states told us that state workforce agency
staff often performed job development and outreach activities. Although
Labor and VA national officials acknowledged some similarities between the
employment services performed by employment coordinators and those
available to program participants elsewhere, VA officials have not
collected information on the full extent of the duplication nationally. A
summary comparing the services provided by employment coordinators and
employment services available elsewhere in the states we visited is in
table 3.

Table 3: Examples of Services Provided by Employment Coordinators and
Others in the Five States We Visited

                                                Selected providers
                                                              Contractors and
                                      Employment     DVOP      school career
Employment coordinator duties     coordinators specialists     centers
Direct services provided to VA                                             
clients                                                                    
Conduct follow-up with veterans                                            
after they have been placed in                                             
employment                                                                 
Assist with resume and interview                                           
preparation                                                                
Provide general assistance with                                            
job search activities                                                      
Provide labor market information                                           
Provide employment assistance                                              
specifically to hard-to-place                                              
veterans                                                                   
Coordinate distribution of                                                 
employment search stipend                                                  
Assist veterans with employment                                            
plans                                                                      
Assist employers with providing                                            
accommodations for VA clients                                              
Job development and outreach                                               
Promote VA program through                                                 
networking and ongoing contacts                                            
with employers                                                             
Develop partnerships with                                                  
businesses and state and federal                                           
agencies                                                                   
Market VA incentives to                                                    
employers, such as subsidized                                              
internships and wage subsidies                                             
Establish contact with specific                                            
employers to be aware of job                                               
opportunities and job                                                      
qualifications                                                             

Source: GAO analysis.

Note: A checkmark indicates that services were provided in at least one of
the states we visited. Employment coordinator activities were typically
limited to those veterans in their local areas. The employment
coordinators we interviewed in California were responsible only for the
San Diego region, and the employment coordinator for Sioux Falls, South
Dakota was stationed in Fargo, North Dakota.

Job Resource Labs Provided Additional Opportunities to Assist Veterans, but They
Appeared to Play a Minor Role and Duplicated Resources Available Elsewhere

Job resource labs provided equipment and materials that VA staff used to
assist veterans with employment-related activities, but the labs were not
typically staffed throughout the day. All of the labs in the five states
we visited were equipped with computers that had Internet access, desks,
printers, and employment resource libraries. The number of computers
available for veterans' use in the labs ranged from one to four. All of
the labs also had at least three additional resources such as copiers, fax
machines, informational pamphlets, job postings, and televisions and DVD
players located directly in the lab or available for use elsewhere in the
office. According to the veterans and VA staff in the five states we
visited, the job resource labs were used primarily to conduct Five-Track
program orientation and to allow for veterans to engage individually in
career exploration activities. In three of the states we visited, the labs
were also used as a meeting space, for example, to host workshops and
veteran employment networking groups. The labs sometimes also served as an
office for the part-time colocated DVOP specialist or as an extra space to
conduct activities such as mock interviews. We were told VA staff were
available to assist veterans as needed, but only one of the labs we
visited was staffed throughout the day. Although some veterans were able
to use the labs with minimal guidance, others told us they needed the
assistance provided by VA staff when they were first introduced to the
labs. Figure 4 shows photographs of a sample of the job resource labs we
visited.

Figure 4: Photographs of VA Job Resource Labs

Veterans in the five states we visited did not typically use the labs for
any activities other than those that were part of the program orientation.
VA staff in the five states we visited told us the labs were not used by
many veterans. Four of the labs we visited tracked usage informally, and a
month of data from these labs showed as many as 34 veterans using one lab
and as few as 3 using another. Additionally, none of the veterans we spoke
with used the labs regularly or more than a few times during the program.
For example, 1 veteran said he only used the lab to occasionally look at
his grades online and another veteran used printed resources in the lab
once to prepare for an interview. Some of the low levels of usage may be
explained by factors associated with the lab. In two of the states we
visited, the labs had only been operational for 2 months or less. In three
other sites, VA staff lamented that the labs were housed in buildings that
were not conveniently located or required security searches to enter.
While VA officials told us they plan to assess the usage and effectiveness
of the job resource labs nationally, they have not done so yet because
they are waiting for all labs to have permanent computers.

Veterans and VA officials told us that program participants have access to
equipment and materials similar to those in the job resource labs at other
locations. In the five states we visited, job resource labs provided
veterans with some additional VA services, for example, one-on-one
computer assistance from VA staff and the opportunity to network with
other VA participants. However, according to veterans and VA counselors
with whom we spoke, veterans typically had computer and Internet access
available at home, school, the public library, or the local one-stop
career center. Similarly, one veteran told us he used printed materials
found in the job resource labs, such as resume and interviewing technique
books, at his local one-stop career center. While some veterans and
veteran service organization representatives we spoke with found that
having access to resources at multiple locations allows veterans more
flexibility, some also told us the labs were duplicative of most of the
basic resources available at local one-stops, such as computers, printers,
faxes, printed materials, job postings, and brochures.

Conclusions

VA staff and their counterparts in Labor are charged with the
responsibility of helping veterans achieve the best possible employment
outcomes--each in their own capacity but also in cooperation with each
other. Given their similar missions and clientele, and to ensure the
seamless delivery of services and efficient use of resources, it is
critical that these agencies work together effectively. The October 2005
agreement between Labor and VA stated that both parties commit themselves
to active cooperation and coordination in meeting the goals of the
agreement. However, without additional efforts--developing a comprehensive
plan that outlines long-range time frames and benchmarks for its
implementation, thoroughly reviewing implementation at the state level,
providing guidance to states, and outlining plans for taking action if
states do not implement the agreement--it is difficult to determine the
extent to which the agreement has been implemented or what, if any,
progress has been made toward its goals. In addition, VA officials were
not fully aware of how the employment coordinator position was serving
veterans outside of the employment coordinator's local area. As a result,
VA may not be providing all veterans in a regional office's jurisdiction
with equal access to the full array of services from an employment
coordinator. Furthermore, Labor and VA have not collected systematic
information on employment coordinators and job resource labs to help
eliminate all duplication in the delivery of needed employment services
and provide a seamless employment transition. Without this information,
there may be unnecessary duplication of services, which is not in keeping
with the agreement. Finally, VA has not examined the usage or
effectiveness of the job resource labs nationwide, and as a result, VA may
end up spending money to sustain a resource that few veterans are using.

Recommendations for Executive Action

To ensure the complete and timely implementation of the agreement, we
recommend that the Secretary of Labor and the Secretary of Veterans
Affairs direct VETS and VRE to take the following actions:

           o develop a written plan for the full implementation of the
           agreement that includes long-term time frames, benchmarks by which
           to track implementation at the state level, and plans for taking
           action in instances when states are not fully implementing the
           agreement;
           o provide additional direction to the states on implementing the
           agreement, including examples of promising practices from states,
           such as strategies for sharing information;
           o provide technical assistance to states that are facing
           difficulties implementing the agreement; and
           o collect and assess complete information on the progress of the
           states in implementing the agreement using well-designed and
           appropriate methodology, such as a systematic review of
           state-level memorandums of agreements or a comprehensive survey of
           all locations.

To ensure the employment coordinator role is being used in the most
effective and efficient way possible without duplication of other
available services, we recommend that the Secretary of Veterans Affairs,
in consultation with the Secretary of Labor, direct VRE to take the
following actions:

           o determine how best to use the employment coordinator in serving
           veterans located outside the employment coordinator's local area;
           o undertake additional efforts to review how the employment
           coordinator role has been carried out at the regional level,
           especially vis-`a-vis staff of other workforce agencies;
           o determine how this position could best be used in light of other
           services available to VA program participants; and
           o modify the national employment coordinator position description
           accordingly.

To ensure that resources spent on job resource labs are used efficiently
and effectively, we recommend that the Secretary of Veterans Affairs
direct VRE to undertake additional efforts to:

           o review the number of veterans using the job resource labs and
           ways in which veterans are using them;
           o assess and offer regional offices direction on how the labs
           could be better used; and
           o determine whether there are additional opportunities to
           coordinate with other agencies and organizations, such as local
           one-stop career centers.

Agency Comments and Our Evaluation

We provided a draft of this report to Labor and VA for their review and
comments. In their comments, the agencies agreed with our recommendations.
The agencies said they would work together to develop a plan to fully
implement the agreement that focuses on time frames and benchmarks and
would implement a systematic review of state-level agreements. Both
agencies also said they will continue to develop joint training for
improving the coordination and delivery of employment services for
veterans with disabilities. In an effort to provide technical assistance
to states that are facing difficulties implementing the agreement, Labor
said it would review possible ways of providing VA confirmation that a
client is employed without actually providing personal wage data. In
addition, VA said it will continue to evaluate the effectiveness of the
employment coordinator position and develop methodology to assess how the
job resource labs are used. The Department of Labor's comments are in
appendix II and VA's comments are in appendix III.

We will send copies of this report to the Secretary of Labor, the
Secretary of Veterans Affairs, other relevant congressional committees,
and other interested parties and will make copies available to others upon
request. In addition, the report will be available at no charge on GAO's
Web site at http://www.gao.gov.

A list of related GAO products is included at the end of this report. If
you or your staff have any questions about this report, please contact me
at (202) 512-7215. Contact points for our Offices of Congressional
Relations and Public Affairs may be found on the last page of this report.
Staff acknowledgments are listed in appendix IV.

Cynthia M. Fagnoni, Managing Director
Education, Workforce, and Income
Security Issues

Appendix I: Objectives, Scope, and Methodology

Our overall research objectives were to describe the status of the
implementation of the October 2005 memorandum of agreement between the
Department of Labor (Labor) and the Department of Veterans Affairs (VA)
aimed at coordinating efforts to advance the employment opportunities for
veterans with service-connected disabilities, and to describe the status
of the implementation of VA's Five-Track employment program, with a
particular emphasis on the role of employment coordinators and job
resource labs. To address these objectives, we conducted interviews with
national Labor and VA officials and national representatives of veterans'
service organizations. We also visited five states, where we met with
Labor, VA, and the state workforce agency officials and staff, and toured
job resource labs and one-stop career centers. During our site visits, we
spoke with veterans who were past or current participants in VA's
Vocational Rehabilitation and Employment services (VRE) and local
representatives of veterans' service organizations. In addition, VA
provided us with information on the number of job resource labs that were
completed, the number still in process, and the reasons for the delays.
Finally, we reviewed prior GAO reports and other relevant documentation.
We conducted our work from November 2006 to September 2007 in accordance
with generally accepted government auditing standards.

Interviews with National Labor and VA Officials

We interviewed national Labor and VA officials to determine the status of
implementation of the agreement, in particular, time frames for completion
and any challenges to implementation. With VA officials, we also discussed
the status of the implementation of the Five-Track program, including any
implementation challenges that remain, and the roles of employment
coordinators and job resource labs in the employment and training of
disabled veterans.

Site Visits

We conducted site visits in five states--Michigan, Alabama, Illinois,
South Dakota, and California. California is divided into three VA regions;
we visited only the San Diego region. We selected a mix of states based on
the following criteria: (1) dispersion across the four VRE geographic
areas (Eastern, Southern, Central, and Western), (2) both pilot and
nonpilot sites for the Five-Track program, and (3) states with large and
small veteran populations. Table 4 lists our selected site visit locations
and summarizes these selection criteria for each state. In making our
selections, we also factored in the states' reputation for coordination
between Labor and VA at the state and local levels, which we determined
based on input from national Labor and VA officials and other sources.

Table 4: Site Visit Locations and Key Selection Criteria

                              VRE        Was a      Has large veteran         
                Locations     geographic Five-Track population (500,000 or    
State        visited       area       pilot site more veterans in state)   
Michigan     Detroit       Eastern    yes        yes                       
Alabama      Montgomery    Southern   yes        no                        
                Huntsville                                                    
Illinois     Chicago       Central    no         yes                       
South Dakota Sioux Falls   Central    no         no                        
California   San Diego El  Western    no         yes                       
(San Diego   Cajon Anaheim                                                 
region)                                                                    

Source: GAO.

Note: Veteran population of states is based on 2000 Census data.

In each state, we met with VA regional office staff and officials from
Labor and the state workforce agency. At VA regional offices, we spoke
with VA counselors, employment coordinators, and regional office
management. We also toured the job resource labs. In each state, we also
spoke with either the state VETS program director or assistant director
assigned to the region. In addition, we met with staff and officials from
the state workforce agency, including Disabled Veterans' Outreach Program
specialists. We visited one-stop career centers in four states and met
with local office managers in three of these. In some cases, we followed
up on our interviews by phone, e-mail, or in person to collect additional
information.

In two of the states, we visited locations that have satellite offices of
the VA regional office. In California, we visited Anaheim, which is a
satellite location of the San Diego VA regional office. There, we met with
the VA vocational rehabilitation counselor and state workforce agency
local office management and staff. We also observed the job resource lab.
We chose Anaheim based on its proximity to San Diego, which was one of our
site visit locations. In Alabama, we interviewed VA and state workforce
agency staff in Huntsville, a satellite location of the Montgomery VA
regional office, and also visited the job resource lab. We selected
Huntsville based on the recommendation of a Montgomery VA official and its
proximity to a GAO field office.

Interviews with Veterans and Veterans' Service Organizations

To gain additional perspectives on the implementation of the agreement and
the Five-Track program, on each of our site visits, we met with veterans
who were currently participating in the Five-Track program or who had
recently completed training through VA's Vocational Rehabilitation and
Employment program. We also spoke with local representatives of veterans'
service organizations. In addition, we conducted phone interviews with
representatives of a number of veterans' service organizations who are
based in the Washington, D.C. area.

Status of Job Resource Lab Implementation

VA provided us with a list of the job resource labs and the status of
their implementation. From this list, we calculated the total number of
labs, the number of labs that were completed, and those that were still in
process. We also categorized and sorted the reasons for delays in
implementing the labs that were not yet complete. We assessed the
reliability of the VA data and determined it was suitable for the purposes
of this report. The information provided by VA was current as of May 2007.

Appendix II: Comments from the Department of Labor

Appendix III: Comments from the Department of Veterans Affairs

Appendix IV: GAO Contact and Staff Acknowledgments

GAO Contact:

Cynthia M. Fagnoni, (202) 512-7215 or [29][email protected]

Staff Acknowledgments

Sigurd R. Nilsen, Director

Heather Hahn and Kathryn Larin, Assistant Directors

Anne Welch, Analyst-in-Charge

Caitlin Croake and Amber Yancey-Carroll also made significant
contributions to this report in all facets of the work. In addition,
Walter Vance assisted in the review of external data and in developing
site visit selection criteria; Elizabeth Curda and Gregory Whitney lent
subject matter expertise; Doreen Feldman and Jessica Botsford provided
legal support; Letisha Jenkins and John Ortiz assisted with data
collection; and Charles Willson provided writing assistance.

Related GAO Products

Veterans' Employment and Training Service: Labor Could Improve Information
on Reemployment Services, Outcomes, and Program Impact. [30]GAO-07-594 .
Washington, D.C.: May 24, 2007.

Trade Adjustment Assistance: Labor Should Take Action to Ensure
Performance Data Are Complete, Accurate, and Accessible. [31]GAO-06-496 .
Washington, D.C.: April 25, 2006.

Veterans' Employment and Training Service: Greater Accountability and
Other Labor Actions Needed to Better Serve Veterans. [32]GAO-06-357T .
Washington, D.C.: February 2, 2006.

Veterans' Employment and Training Service: Labor Actions Needed to Improve
Accountability and Help States Implement Reforms to Veterans' Employment
Services. [33]GAO-06-176 . Washington, D.C.: December 30, 2005.

Workforce Investment Act: Labor and States Have Taken Actions to Improve
Data Quality, but Additional Steps Are Needed. [34]GAO-06-82 . Washington,
D.C.: November 14, 2005.

Veterans' Employment and Training Service: Preliminary Observations on
Changes to Veterans' Employment Programs. [35]GAO-05-662T . Washington,
D.C.: May 12, 2005.

Workforce Investment Act: States and Local Areas Have Developed Strategies
to Assess Performance, but Labor Could Do More to Help. [36]GAO-04-657 .
Washington, D.C.: June 1, 2004.

Veterans' Employment and Training Service: Flexibility and Accountability
Needed to Improve Service to Veterans. [37]GAO-01-928 . Washington, D.C.:
September 12, 2001.

Veterans' Employment and Training Service: Proposed Performance
Measurement System Improved, but Further Changes Needed. [38]GAO-01-580 .
Washington, D.C.: May 15, 2001.

Veterans' Employment and Training Service: Strategic and Performance Plans
Lack Vision and Clarity. [39]GAO/T-HEHS-99-177 . Washington, D.C.: July
29, 1999.

Veterans' Employment and Training Service: Assessment of the Fiscal Year
1999 Performance Plan. [40]GAO/HEHS-98-240R . Washington, D.C.: September
30, 1998.

Veterans' Employment and Training: Services Provided by Labor Department
Programs. [41]GAO/HEHS-98-7 . Washington, D.C.: October 17, 1997.

Vocational Rehabilitation: Better VA Management Needed to Help Disabled
Veterans Find Jobs. [42]GAO/HRD-92-100 . Washington, D.C.: September 4,
1992.

(130628)

[43]www.gao.gov/cgi-bin/getrpt?GAO-07-1020 .

To view the full product, including the scope
and methodology, click on the link above.

For more information, contact Cynthia M. Fagnoni at (202) 512-7215 or
[email protected].

Highlights of [44]GAO-07-1020 , a report to congressional committees

September 2007

DISABLED VETERANS'EMPLOYMENT

Additional Planning, Monitoring, and Data Collection Efforts Would Improve
Assistance

To better assist veterans with service-connected disabilities seeking
employment, in 2005, the Departments of Labor (Labor) and Veterans Affairs
(VA) signed an agreement to coordinate employment services for disabled
veterans. Around the same time, VA rolled out a redesigned employment
program for these veterans, known as the Five-Track program, which also
established an employment coordinator position and job resource labs. To
help Congress understand the status of these initiatives, GAO was asked to
provide information on (1) the progress in implementing the 2005 agreement
and challenges to implementation, (2) the status of implementation of VA's
Five-Track program and challenges posed by recently returning veterans,
and (3) the role of employment coordinators and job resource labs in
serving veterans. To obtain this information, GAO interviewed Labor and VA
officials and national veterans' service organizations, and conducted site
visits in five states.

[45]What GAO RecommendsTo ensure the implementation of their agreement and
the efficient and effective use of resources, GAO recommends that Labor
and VA develop a comprehensive plan to implement their agreement and
undertake additional guidance and monitoring efforts, and that VA review
the role of the employment coordinator, and assess the use of the job
resource labs. The agencies agreed with our recommendations.

Labor and VA have implemented some elements of their agreement to
coordinate efforts, but face challenges executing the agreement on the
state level and lack a complete plan for implementing and assessing the
progress of the agreement. Labor and VA have implemented one element of
the agreement--establishing three joint work groups--but have only
partially implemented or taken no action on the others. In addition, all
five states we visited had implemented at least some elements of the
agreement that need to be carried out on the state level, but faced
challenges implementing others. Labor and VA have not developed an
implementation plan that includes long-range time frames and benchmarks to
measure progress. Further, Labor and VA have not fully assessed state
actions to implement the agreement and may not have provided states with
sufficient guidance.

While VA has mostly implemented its Five-Track employment program for
disabled veterans, the employment needs of newly returning veterans may
pose challenges. VA officials have completed a pilot study, trained staff,
distributed orientation materials, and deployed employment coordinators,
but other components remain in process. Some officials expressed concerns
that employment programs for disabled veterans--including the Five-Track
program--may not be prepared to meet the needs of participants returning
from recent conflicts, who VA predicts will be more likely than previous
returning veterans to have certain disabilities, such as those associated
with traumatic brain injuries. VA has begun efforts to address these
needs.

VA employment coordinators and job resource labs in the five states we
visited provided employment assistance to a limited number of veterans and
some of their functions were available elsewhere. Employment coordinators
provided direct employment services for veterans and also performed job
development and outreach activities. However, employment coordinators we
met with provided limited services to veterans outside their local areas,
and similar services were available elsewhere. Job resource labs provided
some additional resources for veterans, but according to some staff, not
many veterans are using the labs. Job resource labs also appeared to
duplicate other available services.

VA Job Resource Labs: Detroit, Michigan, and Sioux Falls, South Dakota

References

Visible links
  28. http://www.gao.gov/cgi-bin/getrpt?GAO-07-594
  29. mailto:[email protected]
  30. http://www.gao.gov/cgi-bin/getrpt?GAO-07-594
  31. http://www.gao.gov/cgi-bin/getrpt?GAO-06-496
  32. http://www.gao.gov/cgi-bin/getrpt?GAO-06-357T
  33. http://www.gao.gov/cgi-bin/getrpt?GAO-06-176
  34. http://www.gao.gov/cgi-bin/getrpt?GAO-06-82
  35. http://www.gao.gov/cgi-bin/getrpt?GAO-05-662T
  36. http://www.gao.gov/cgi-bin/getrpt?GAO-04-657
  37. http://www.gao.gov/cgi-bin/getrpt?GAO-01-928
  38. http://www.gao.gov/cgi-bin/getrpt?GAO-01-580
  39. http://www.gao.gov/cgi-bin/getrpt?GAO/T-HEHS-99-177
  40. http://www.gao.gov/cgi-bin/getrpt?GAO/HEHS-98-240R
  41. http://www.gao.gov/cgi-bin/getrpt?GAO/HEHS-98-7
  42. http://www.gao.gov/cgi-bin/getrpt?GAO/HRD-92-100
  43. http://www.gao.gov/cgi-bin/getrpt?GAO-07-1020
  44. http://www.gao.gov/cgi-bin/getrpt?GAO-07-1020
*** End of document. ***