We performed this audit to determine whether Rehabilitation Services Administration (RSA) has sufficient processes for overseeing vocational rehabilitation (VR) program grantees’ effective use of funds in compliance with applicable requirements.
We found that RSA generally had sufficient processes for overseeing State VR agencies’ effective use of funds. These processes included communicating clear, accurate, and timely guidance and technical assistance to State VR agencies; performing annual reviews for all State VR agencies; and conducting periodic onsite and offsite monitoring for selected State VR agencies. However, we found that RSA could strengthen its oversight in key areas by developing documented procedures for its annual reviews, improving its risk assessment processes by incorporating a risk factor that accounts for a State VR agency’s technical assistance needs, and establishing a reasonable period during which all State VR agencies must be subject to onsite or offsite monitoring at least once.
We made two recommendations to improve RSA’s ability to effectively oversee State VR agencies’ effective use of VR program funds. We also made suggestions for RSA to consider whether the Rehabilitation Act of 1973 should be amended to increase the likelihood that State VR agencies will be able to spend their entire VR program grant allocation, and if so, submit a legislative proposal in accordance with the Office of Management and Budget Circular A-19, Legislative Coordination and Clearance.
Oversight and Monitoring of Grantees