United States General Accounting Office 

Report to the Ranking Democratic 

Member, Committee on Veterans’ 

Affairs, House of Representatives 

 

GAO

June 2004 VA VOCATIONAL 

REHABILITATION 

AND EMPLOYMENT 

PROGRAM 

GAO Comments on 

Key Task Force 

Findings and 

Recommendations 

GAO-04-853 
Page i GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

Letter 1

Appendix I Briefing Slides 4 

Related GAO Products 31 

Abbreviations 

C&P Compensation and Pension 

DOD Department of Defense 

DOL Department of Labor 

IT information technology 

VA Department of Veterans Affairs 

VBA Veterans Benefits Administration 

VHA Veterans Health Administration 

VR&E Vocational Rehabilitation and Employment 

Contents 

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Page 1 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

June 15, 2004 

The Honorable Lane Evans 

Ranking Democratic Member 

Committee on Veterans’ Affairs 

House of Representatives 

Dear Mr. Evans: 

This report responds to your request for an analysis of the findings and 

recommendations contained in the March 2004 report of the Department 

of Veterans Affairs (VA) Task Force on Vocational Rehabilitation and 

Employment (VR&E).1

 You requested this work as part of our ongoing 

review of VA’s VR&E program. The mission of the VR&E program is to 

provide comprehensive services and assistance necessary to enable 

veterans with service-connected disabilities and employment handicaps to 

become employable, then obtain and maintain stable and suitable 

employment. 

We agreed to review and comment on the Task Force report’s key findings 

and recommendations and make general observations about these findings 

and recommendations in light of our previous and ongoing work in the 

area. To meet these objectives, we attended Task Force public fact-finding 

sessions, interviewed the Task Force chairman and VR&E central and 

regional office staff, and reviewed and analyzed Task Force report findings 

and recommendations. We conducted our work in accordance with 

generally accepted government auditing standards. 

On May 27, 2004, we briefed your office on the results of our work. This 

report formally conveys the information provided during that briefing. 

Appendix I contains the briefing slides. 

In summary, we generally agree with the Task Force’s three key findings. 

We agree that VR&E has not been a Veterans Benefits Administration 

(VBA) priority in terms of returning veterans with service-connected 

 1

Department of Veterans Affairs. Report to the Secretary of Veterans Affairs: The 

Vocational Rehabilitation and Employment Program for the 21st Century Veteran 

(Washington, DC: March 2004). 

United States General Accounting Office 

Washington, DC 20548 
Page 2 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

disabilities to the workforce. GAO has reported that the VR&E program 

emphasized education and not employment, and we have recommended 

that VBA focus on obtaining suitable employment for disabled veterans. 

Although we have not specifically reviewed VR&E’s capacity to manage its 

workload, we agree that many of the VR&E management systems 

identified by the Task Force as needing improvement are fundamental to 

the proper functioning of all federal programs. Finally, we agree that the 

VR&E program needs to be modernized. We have reported that VA uses 

outmoded criteria for establishing disability ratings, which are used to 

determine who is eligible for VR&E. Furthermore, we have designated VA 

disability programs as high risk in part because they use these outmoded 

criteria for determining disability. 

Regarding the Task Force recommendations, we observed that disabled 

veterans might continue to use the program for education in the absence 

of an equally beneficial alternative, even if VR&E adds employment tracks 

to reflect veterans’ diverse employment-related needs. Furthermore, 

implementing the Task Force recommendations will be a major challenge 

for VBA: 

• Some recommended changes may require assistance from other 

agencies, such as the Department of Defense and the Department of 

Labor. 

• Other recommendations, such as changes to eligibility determination, 

may require legislative changes. 

• The large number of near-term recommendations will require 

prioritizing to determine what can be done within the existing budget. 

In providing oral comments on a draft of the briefing, VA generally 

concurred with our comments and observations. 

We are sending copies of this report to the Honorable 

Christopher H. Smith, Chairman, House Committee on Veterans’ Affairs, 

and the Honorable Anthony J. Principi, Secretary of Veterans Affairs. We 

will also make copies available to others upon request. 

If you or your staff have any questions about this report, please contact me 

on (202) 512-7101 or Irene Chu, Assistant Director, Education, Workforce, 

and Income Security Issues, on (202) 512-7102. Margaret Boeckmann, 
Page 3 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

Connie Peebles Barrow, and Joseph J. Natalicchio also made key 

contributions to this report. 

Sincerely yours, 

Cynthia A. Bascetta 

Director, Education, Workforce, 

 and Income Security Issues 
Appendix I: Briefing Slides 

Page 4 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

Appendix I: Briefing Slides 

1

The Vocational Rehabilitation and Employment 

Program for the 21st Century Veteran

Briefing for the Democratic Staff 

Subcommittee on Benefits 

House Committee on Veterans’ Affairs 

May 27, 2004 
Appendix I: Briefing Slides 

Page 5 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

2

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

GAO Briefing on VA VR&E Task Force Report 

Contents

1. Background

2. Scope and Methodology

3. Key Task Force Findings and GAO Comments

4. Key Program Design and Other Task Force 

Recommendations and GAO Comments 

5. GAO Observations
Appendix I: Briefing Slides 

Page 6 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

3

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Background

• On the basis of the Under Secretary for Benefits’ 

recommendation, in April 2003 Secretary Principi 

established the Task Force to independently assess the 

Department of Veterans Affairs (VA) Vocational 

Rehabilitation and Employment (VR&E) program.

• The VR&E program is designed to help veterans with 

service-connected disabilities prepare for, find, and keep 

suitable employment. 

• The Task Force discussed its report findings on April 1, 

2004, at a hearing held by the House Committee on 

Veterans’ Affairs’ Subcommittee on Benefits.

• You asked GAO to review and comment on the Task Force 

findings and recommendations. 
Appendix I: Briefing Slides 

Page 7 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

4

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Scope and Methodology

To do our work, we:

• attended Task Force public fact-finding sessions;

• interviewed 

• the Task Force chairman and

• VR&E central and regional office staff;

• reviewed and analyzed the Task Force report findings and 

recommendations in light of published GAO reports; and

• focused our analysis on key Task Force findings and 

recommendations.
Appendix I: Briefing Slides 

Page 8 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

5

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Overview of Key Task Force Findings

• VR&E service has not been a Veterans Benefits 

Administration (VBA) priority in terms of returning veterans 

with service-connected disabilities to the workforce.

• The VR&E service has limited capacity to manage its 

growing workload.

• The VR&E system must be redesigned for the 21st century 

employment environment. 
Appendix I: Briefing Slides 

Page 9 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

6

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Findings

Task Force Finding

GAO Comments

We agree that VR&E has not been a VBA priority. 

• GAO has reported that the VR&E program emphasized 

education and not employment.

• We recommended that VBA focus on obtaining suitable 

employment for disabled veterans.

VR&E service has not been a VBA priority in terms of 

returning veterans with service-connected disabilities 

to the workforce.
Appendix I: Briefing Slides 

Page 10 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

7

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Findings

Task Force Finding

The VR&E service has limited capacity to manage its growing 

workload.

GAO Comments

Although we have not specifically reviewed VR&E’s capacity 

to manage its workload, we agree that many of the VR&E 

management systems identified by the Task Force as needing 

improvement are fundamental to the proper functioning of 

federal programs, regardless of workload.
Appendix I: Briefing Slides 

Page 11 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

8

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Findings

Task Force Finding

GAO Comments

We agree that the VR&E system needs to be modernized.

• GAO reported that VA uses outmoded criteria for 

establishing disability ratings, which are used to determine 

who is eligible for VR&E. 

• GAO has designated VA disability programs as high risk in 

part because they use these outmoded criteria for 

determining disability.

The VR&E system must be redesigned for the 21st century 

employment environment. 
Appendix I: Briefing Slides 

Page 12 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

9

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Task Force Recommendations

The Task Force made 105 recommendations and suggested 

that VBA start 72 of them in the near term. 

0

10

20

30

40

50

60

70

80

Number of 

recommendations

Start in near term Start in midterm Start in long term

Time frame
Appendix I: Briefing Slides 

Page 13 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

10

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Overview of Key Task Force

Program Design Recommendations

• Streamline eligibility and entitlement for those veterans in 

most critical need.

• Replace the current VR&E process with a 5-track 

employment-driven service delivery process.

• Expand counseling benefits to provide VR&E services to 

predischarge service members and postdischarge veterans.
Appendix I: Briefing Slides 

Page 14 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

11

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Program Design Recommendations

Task Force Recommendation

• service members who have been medically discharged or 

are pending medical discharge;

• veterans with a combined service-connected disability rating 

of 50 percent or greater; and

• veterans receiving compensation for the loss, or loss of the 

use, of a limb.

Streamline eligibility and entitlement for those veterans in 

most critical need by giving automatic entitlement to:
Appendix I: Briefing Slides 

Page 15 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

12

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Program Design Recommendations

GAO Comments

• Service members being medically discharged and veterans 

who have lost, or lost the use, of a limb could receive VR&E 

services more quickly because they would no longer go 

through the Compensation and Pension (C&P) benefits 

rating process or the VR&E employability assessment.

• Veterans with a combined service-connected disability 

rating of 50 percent or more would still go through the C&P 

rating process to establish eligibility for VR&E, but would not 

have to be assessed for employability.
Appendix I: Briefing Slides 

Page 16 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

13

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Program Design Recommendations

GAO Comments, cont.

• Because VA’s outmoded disability criteria raise questions 

about the validity of its disability decisions, the Task Force 

recommendations do not ensure that the most seriously 

disabled veterans will receive priority VR&E service. 

• Since medical conditions alone are generally a poor 

predictor of work incapacity, focusing on severity of disability

rather than on employability may result in placing veterans 

with severe employment handicaps at a disadvantage in 

terms of VR&E services.
Appendix I: Briefing Slides 

Page 17 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

14

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Program Design Recommendations

Task Force Recommendation 

Replace the current VR&E process with a 5-track 

employment-driven service delivery process.

Current service delivery process (3 tracks)

1. rehabilitation and employment services;

2. job ready services; and

3. independent living services.
Appendix I: Briefing Slides 

Page 18 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

15

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Program Design Recommendations

Recommended service delivery process (5 tracks)

1. rapid access employment for veterans with skills who want 

immediate employment;

2. self-employment; 

3. re-employment in job held prior to military service;

4. traditional vocational rehabilitation services, including 

education and training; and 

5. independent living services with the possibility of 

employment.
Appendix I: Briefing Slides 

Page 19 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

16

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Program Design Recommendations

GAO Comments

• The 5-track process could help focus on employment and 

provide flexibility in the VR&E process.

• This new system will require a cultural shift from the 

program’s current emphasis on long-term education. 

• As long as the education benefits available to disabled 

veterans through VR&E remain more generous than those 

available through other VA programs, eligible veterans will 

have strong incentives to continue to use VR&E to pursue 

their education goals.
Appendix I: Briefing Slides 

Page 20 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

17

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Program Design Recommendations

Task Force Recommendation 

Expand counseling benefits to provide VR&E services to 

predischarge service members and postdischarge veterans.
Appendix I: Briefing Slides 

Page 21 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

18

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Key Task Force Program Design Recommendations

GAO Comments

• We agree that providing vocational and employment 

counseling prior to military discharge is essential to enable 

disabled service members to access VR&E services as 

quickly as possible after they are discharged.

• We have reported that early intervention efforts promote and 

facilitate a return to the workforce.
Appendix I: Briefing Slides 

Page 22 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

19

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Overview of Other Key Task Force Recommendations

• Reorganize VR&E and increase staffing.

• Improve the capacity of the information technology (IT) 

systems.

• Improve intra- and interagency coordination.
Appendix I: Briefing Slides 

Page 23 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

20

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Other Key Task Force Recommendations

Task Force Recommendation 

Reorganize VR&E and increase staffing:

• Redesign the VR&E central office to provide greater 

oversight over field office operations. 

• Increase staff in central and regional offices to reflect 

employment focus.
Appendix I: Briefing Slides 

Page 24 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

21

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Other Key Task Force Recommendations

GAO Comments

• We agree that the VR&E program needs more central office 

oversight and accountability. In numerous reports over the 

past 3 years, the VA Inspector General has identified VR&E 

programs at regional offices that do not adhere to policies 

and procedures, sometimes in ways that circumvent 

accountability mechanisms. 

• We have not done sufficient work to comment on the need 

to increase staffing.
Appendix I: Briefing Slides 

Page 25 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

22

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Other Key Task Force Recommendations

Task Force Recommendation

Improve the capacity of the information technology (IT) 

systems. 
Appendix I: Briefing Slides 

Page 26 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

23

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Other Key Task Force Recommendations

GAO Comments

• Although we have not specifically reviewed VR&E’s IT 

system, many of the Task Force’s recommendations in this 

area are consistent with GAO work governmentwide, 

showing that agencies need to strengthen IT strategic 

planning and investment management.

• We believe there needs to be a more systematic analysis of 

current IT systems by IT experts before more investment is 

made in these systems.
Appendix I: Briefing Slides 

Page 27 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

24

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Other Key Task Force Recommendations

Task Force Recommendation

Improve intra- and interagency coordination: 

• within VA between VR&E and the Veterans Health 

Administration (VHA) and 

• between VR&E and the Departments of Defense (DOD) and 

Labor (DOL).
Appendix I: Briefing Slides 

Page 28 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

25

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

Other Key Task Force Recommendations

GAO Comments

• We agree that improving coordination with agencies that 

have a role in assisting disabled veterans make the 

transition to civilian employment should help these agencies 

more efficiently use federal resources and enhance the 

employment prospects of disabled veterans.

• Because of the poor performance of the DOL Veterans’ 

Employment and Training Program in terms of employment 

outcomes for disabled veterans, more than improved 

coordination will be required to enhance the employment 

prospects of disabled veterans.
Appendix I: Briefing Slides 

Page 29 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

26

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

GAO Observations

• The Task Force recognized the need to modernize the 

VR&E program and to focus the program more on 

employment.

• Veterans may continue to use the program for education in 

the absence of an equally beneficial alternative despite 

multiple employment tracks to reflect the diverse 

employment-related needs of participants.
Appendix I: Briefing Slides 

Page 30 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

27

Hill Briefing: 

Veterans Affairs VR&E Task Force Report

GAO Observations

• Some recommended changes may require assistance from 

other agencies, such as the Department of Defense and the 

Department of Labor. 

• Other recommendations, such as changes to eligibility 

determination, may require legislative changes.

• The many near-term recommendations will require 

prioritizing to determine what can be done within the existing 

budget.

Implementing the Task Force recommendations will be 

a major challenge for VBA:
Related GAO Products 

Page 31 GAO-04-853 GAO Comments on Key Task Force Finds and Recommendations 

VA Benefits: Fundamental Changes to VA’s Disability Criteria Need Careful 

Consideration. GAO-03-1172T. Washington, D.C.: September 23, 2003. 

High-Risk Series: An Update. GAO-03-119. Washington, D.C.: January 2003. 

Major Management Challenges and Program Risks: Department of 

Veterans Affairs. GAO-03-110. Washington, D.C.: January 2003. 

SSA and VA Disability Programs: Re-Examination of Disability Criteria 

Needed to Help Ensure Program Integrity. GAO-02-597. Washington, D.C.: 

August 9, 2002. 

Vocational Rehabilitation: Opportunities to Improve Program 

Effectiveness. GAO/T-HEHS-98-87. Washington, D.C.: February 4, 1998. 

Veterans Benefits Administration: Focusing on Results in Vocational 

Rehabilitation and Education Programs. GAO/T-HEHS-97-148. Washington, 

D.C.: June 5, 1997. 

Vocational Rehabilitation: VA Continues to Place Few Disabled Veterans 

in Jobs. GAO/HEHS-96-155. Washington, D.C.: September 3, 1996. 

Vocational Rehabilitation: Better VA Management Needed to Help 

Disabled Veterans Find Jobs. GAO/HRD-92-100. Washington, D.C.: 

September 4, 1992. 

VA Can Provide More Employment Assistance to Veterans Who Complete 

Its Vocational Rehabilitation Program. GAO/HRD-84-39. Washington, D.C.: 

May 23, 1984. 

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