Audit of Vocational Rehabilitation and Employment Program's Self-Employment Services at Eastern and Central Area Offices

OIG evaluated the effectiveness of VBA’s Vocational Rehabilitation and Employment Program (VR&E). Self-employment services is part of that program. We conducted this audit to determine how effectively these services plans and provides help to veterans. We found VBA needs to strengthen management of these services to ensure its area offices effectively plan and provide the self-employment services needed for veterans to successfully operate their own businesses. VR&E misidentified veterans participating in self-employment services and didn’t record all program expenses. Insufficient oversight of data resulted in inadequate resources needed to accomplish program goals. Program staff were unaware of the correct criteria for rehabilitating veterans. VBA guidance was not clear when providing services to veterans with established businesses or when approving plan expenses. We recommended improving management and oversight for self-employment services by establishing procedures to ensure approvals for these services are appropriate, data collection on program operations is accurate, performance measures are implemented and staff training is conducted.