Problems in the Administration of Third-Party Funds under the Vocational Rehabilitation Program in Indiana

The purpose of the survey was to determine whether the provisions of the Rehabilitation Act of 1973 and applicable regulations and directives issued by the Rehabilitation Services Administration (RSA) were being followed in administering cooperative agreements in Indiana. To increase the number of rehabilitations, RSA guidelines allow state vocational rehabilitation agencies to make cooperative agreements with state or local public agencies to use third-party funds, which are reported as part of its matching share or as program costs eligible for federal reimbursement. Federal regulations and RSA guidelines specify that expenditures for services provided under a cooperative third-party agreement must be made under the control of the state agency and for new and unique vocational services.