The Office of the Assistant Secretary for VETS  administers the agency’s activities through regional administrators and a  VETS director in each state. For example, JVA clarified  the roles of DVOP and LVER staff, and gave states greater flexibility in  determining how the staff are used. Although VETS has issued guidance on the performance  incentive program to recognize exemplary staff as required by JVA, states  have implemented this program differently, and 11 states do not plan to  implement the incentive program because sometimes it conflicts with the  state’s policy if awards are given to individuals. In addition, integrating  DVOP and LVER staff into one-stop centers continues to be challenging. VETS Has Provided Guidance and Training to Distinguish DVOP from LVER Staff Duties and Many States Plan to Use Part-Time DVOP Staff

Through its policy guidance letters, VETS has clarified the DVOP and  LVER staff’s new functions, along with new staffing and reporting  requirements, including the use of part-time positions for DVOPs. New Performance System Implemented for DVOPs and LVERs, but Too Early to Link Changes to Veterans’ Employment Outcomes

VETS has implemented some JVA changes to the accountability system  related to the measures used for assessing DVOP and LVER performance,  but it estimates that it will be at least 2007 before it can implement a  minimum standard for veterans entering employment that all states will be  expected to meet. In addition, Labor has established an entered-employment goal of 58  percent for veterans served through the DVOP and LVER programs. While  VETS reported that the DVOP and LVER programs met Labor’s program  year 2003 goals for some measures, concerns about data reliability remain,  preventing an accurate assessment of how well DVOP and LVER staff are  performing. Three  measures are based on WIA:  (1) veterans that entered employment; (2)  retention in employment at 6 months; and (3) job seeker satisfaction. VETS Reports Meeting Goals, but Data Reliability Concerns Remain

Nationwide, VETS reported that the DVOP and LVER programs met  Labor’s goals for the entered employment rate (58 percent) for all eligible  veterans in program year 2003, while they fell short of their 60-percent  target entered employment rate for disabled veterans (see table 2). Monitoring Systems Evolving to Strengthen Program Accountability

In response to JVA’s requirement to monitor the DVOP and LVER  programs, VETS has shifted greater responsibility for monitoring program  performance to the state level, and VETS’ monitoring role continues to  evolve from enforcer to partner in achieving state goals. Veterans’ Employment and Training Service: Flexibility and  Accountability Needed to Improve Service to Veterans.
Why GAO Did This Study

The Department of Labor's Veterans' Employment and Training Service (VETS) administers two programs designed to assist the roughly 700,000 veterans who are unemployed in any given month. These two programs, the Disabled Veterans' Outreach Program (DVOP) and the Local Veterans' Employment Representative (LVER) program, fund employment, training, and job placement services to veterans. In 2002, Congress passed the Jobs for Veterans Act (JVA), which redefined the roles of DVOP and LVER staff and required that VETS establish a new performance accountability system. This testimony is based on GAO's ongoing work in this area and focuses on three aspects: (1) the separation of DVOP's and LVER's roles and responsibilities; (2) VETS' performance accountability system for DVOP and LVER staff; and (3) VETS' system for monitoring DVOP and LVER performance.

What GAO Found

VETS has established separate roles for DVOP and LVER staff and has provided policy guidance and training to states explaining these changes. Under JVA, states now determine how many DVOP and LVER staff they hire, where to place them within the local workforce areas, and 23 states are planning to use some part-time DVOP staff. There are indications that integrating DVOP and LVER staff into the local workforce offices remains challenging. While VETS has issued guidance on an incentive program to encourage improved performance, state implementation of the program has varied, and 11 states do not plan to participate. VETS has implemented employment measures for DVOP and LVER staff, but a minimum standard that all states must meet for veterans entering employment will not be available before 2007. VETS reported meeting Labor's goal of achieving a 58-percent employment rate for all veteran job seekers during program year 2003, but fell somewhat short of reaching a 60-percent employment goal for disabled veterans. Assessing how well DVOP and LVER programs are serving veterans may continue to be difficult due to ongoing concerns about data reliability. VETS implemented a monitoring system in program year 2004 that relies primarily on state self-assessments of performance in conjunction with onsite reviews. It is unclear, however, how VETS staff at the state, regional, and national levels will use this information consistently to guide or improve the DVOP and LVER programs. VETS is working with other Labor agencies to coordinate monitoring and enforcement efforts.