Veterans’ Programs Provide Similar Services and Largely Serve Different Populations, but It Is Unclear If the Disabled Veterans’ Outreach Program Is Appropriately Serving Its Targeted Population Six Federal Programs Provide Similar Types of Employment Services but Largely Serve Different Populations

As shown in figure 1, the six federal employment and training programs  targeted to veterans offer similar types of employment and training  services. Labor and VA have provided staff with training on the handbook and  formed a group to monitor coordination. Some Coordination Issues Have Arisen across Veterans’ Employment and Training Programs

Our interviews with Labor and VA officials identified certain challenges  with meeting desired program outcomes resulting, in part, from sections  of the handbook that are subject to misunderstanding or provide  insufficient guidance. The second challenge with referrals as outlined in the handbook involved  ensuring that job-ready participants are directed to “suitable employment.”  When veterans are referred to the Disabled Veterans’ Outreach Program  at the job-ready stage, Disabled Veterans’ Outreach Program and VA  staff are supposed to coordinate to find “suitable employment,” or  employment that will not aggravate the participant’s disability and follows  the participant’s rehabilitation plan. While the handbook says  agencies are to coordinate to achieve “suitable employment,” it does not  explicitly say how Disabled Veterans’ Outreach Program and VA staff  should deal with situations where a veteran’s financial need or  preferences do not align with the goal of suitable employment. Absent  guidance about how to navigate such situations, program staff may be  working at cross purposes and program participants may be taking  employment they cannot retain in the long run. DOD Is Expanding Its Employment Initiatives, Which Are Not Included in the Labor-VA Coordination Framework

DOD is expanding its employment assistance to National Guard and  Reserve members, but does not have employment service agreements  with Labor or VA beyond an agreement for TAP. While Most Programs’ Outcomes Are Below Pre-Recession Levels, Labor Has Not Reported the Extent to Which Programs Are Achieving Their Performance Goals

		Most Programs’ Outcomes Are Below Pre-Recession Levels, and Outcomes for Veterans Are Lower Than They Are for the General Population

Employment outcomes for veterans’ programs have generally not  regained levels attained prior to the recent recession. Labor Has Not Consistently Reported the Extent to Which Veterans’ Programs Are Meeting Performance Goals

While Labor reports some data on veterans’ program outcomes, it does  not report the extent to which each of these programs is achieving its  established performance goals. Labor provides Congress an annual  veterans’ program report that provides certain performance information,  such as the number of disabled and recently separated veterans who  received intensive services. In contrast,  Labor’s website on general employment programs—WIA Adult and ES— includes both performance goals and outcomes. Without information on how the  outcomes for each veterans’ program compare against their annual  performance goals, Congress and other key stakeholders lack essential  information needed to assess the performance of the program. VA officials said that this is the first  fiscal year this goal has been used. While Labor has not conducted impact evaluations, it has  conducted research that examines veterans’ outcomes in relation to their  characteristics and has other studies planned or under way (see table 2). For example, Labor’s 2007 study  of veterans’ outcomes covered five states, and its findings cannot be  generalized to all states. Conclusions

Given that the number of service members transitioning to civilian  employment is expected to increase and the number of veterans with  service-connected disabilities is on the rise, Labor’s Disabled Veterans’  Outreach Program is likely to see an increased demand for its services. However, Labor and VA’s agreement does not govern their  coordination with DOD’s programs. In addition, while the federal  government makes a substantial investment in Labor and VA programs to  achieve employment outcomes for veterans, neither agency has  conducted studies to see if these outcomes can be attributed to the  programs’ services, instead of other factors. Agency Comments

We provided a draft of this report to the Department of Labor, the  Department of Veterans Affairs, and the Department of Defense for  review and comment. Both  Labor and VA said they would work to enhance coordination with each  other with respect to the guidance in their interagency handbook. Our 2011 report identified services, eligibility  For this report, we focused on the six programs identified in our January  2011 report in more detail and examined (1) the extent to which federal  veterans’ employment and training programs vary in terms of the services  they deliver and the veterans who receive them; (2) the extent to which  federal agencies coordinate these programs; and (3) what is known about  the performance of these programs. To determine what is known about program performance, we analyzed  relevant federal laws and regulations, and agency documents, and  interviewed agency officials and stakeholders.
Why GAO Did This Study

In fiscal year 2011, the federal government spent an estimated $1.2 billion on six veterans' employment and training programs, serving about 880,000 participants. Labor administers five of these programs and VA administers one. Despite these efforts, the unemployment rate for veterans who have recently separated from the military is higher than that for the civilian population. The number of service members transitioning to the civilian workforce is expected to increase. In response to a request, this report examines (1) the extent to which federal veterans' employment and training programs vary in services they deliver and veterans who receive them; (2) the extent to which federal agencies coordinate programs; and (3) what is known about the performance of these programs. To address these objectives, GAO reviewed agency data, policy documents, and relevant federal laws and regulations, reports, and studies, and interviewed federal and regional officials and state officials in six states selected to achieve geographic and demographic diversity. In examining coordination, GAO included in its review employment assistance DOD provides to Guard and Reserve members.

What GAO Found

The six federal veterans' employment and training programs offer similar employment services, but largely target different groups. Among these programs, the Department of Labor's (Labor) Disabled Veterans' Outreach Program has the greatest potential for overlap with other veterans' programs and Labor's employment programs for the general population. Federal law governing the Disabled Veterans' Outreach Program makes all veterans who meet the broad definition of "eligible veteran" eligible for its services, but gives disabled veterans and economically and educationally disadvantaged veterans the highest priority for services. However, Labor's guidance does not provide states--who administer the program using federal funds--criteria for prioritizing services. The law also generally requires that program staff provide participants with intensive services (e.g., individual employment plans), but Labor's data indicate that nationally 28 percent of participants received such services in 2011. In explaining this statistic, Labor officials said one possible explanation was that staff are enrolling people who do not need intensive services. Labor said it plans to develop guidance on prioritizing services, and it also has a six-state pilot to improve monitoring, but neither of these efforts has been completed.
In 2008, Labor and the Department of Veterans Affairs (VA) compiled a handbook intended to guide the roles of their respective staff in coordinating services to disabled veterans; however, they have not updated the handbook nor included related Department of Defense (DOD) employment initiatives in their interagency agreements. GAO's interviews with VA and Labor officials identified certain challenges with meeting desired program outcomes resulting, in part, from sections of the handbook that provide insufficient guidance or are subject to misunderstanding. For example, the handbook says Labor and VA are to coordinate to achieve "suitable employment"--employment that follows the veteran's rehabilitation plan and does not aggravate the disability. However, it does not explicitly say how staff should navigate situations where a veteran's financial need or preferences do not align with this goal. In such instances, program staff may work at cross purposes and veterans may accept jobs that do not count as suitable employment. Further, DOD is expanding its employment assistance, but does not have an interagency agreement to coordinate with Labor and VA efforts. Absent an updated handbook and integration of DOD into the coordination framework, there is increased risk for poor coordination and program overlap.
While available performance information shows that most programs' outcomes are below pre-2007 levels, the information Labor reports and the research it has conducted make it difficult to know the extent to which each program is achieving its annual performance goals. Veterans' employment outcomes for programs administered by both Labor and VA have generally not regained levels seen before the recession that began in 2007, which is similar to employment programs for the general population. In reporting performance, Labor does not relate employment outcomes to individual program goals. In contrast, Labor reports outcomes and goals for its other workforce programs aimed at the general population. Moreover, while both agencies have studies completed or under way, neither has conducted impact evaluations that assess program effectiveness to determine whether outcomes are attributable to program participation and not other factors. As a result, Congress and other key stakeholders lack essential information needed to assess each program's performance. GAO is making four recommendations aimed at improving the guidance provided to staff in the coordination handbook, integrating DOD into the interagency coordination framework, improving agency reporting on achievement of program performance goals, and assessing program effectiveness.

What GAO Recommends

GAO is making four recommendations aimed at improving the guidance provided to staff in the coordination handbook, integrating DOD into the interagency coordination framework, improving agency reporting on achievement of program performance goals, and assessing program effectiveness.