Victims of Crime Act Victim Compensation Grant Program

DEPARTMENT OF JUSTICE

Office of Justice Programs

Office for Victims of Crime

[OJP (OVC) NO. 1003-F]

RIN 1121-AA21

Victims of Crime Act Victim Compensation Grant Program

AGENCY: Department of Justice, Office of Justice Programs, Office for

Victims of Crime.

ACTION: Final program guidelines.

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SUMMARY: The Office for Victims of Crime (OVC), Office of Justice

Programs (OJP), U.S. Department of Justice (DOJ) is publishing Final

Program Guidelines to implement the victim compensation grant program

as authorized by the Victims of Crime Act of 1984, as amended, 42

U.S.C. 10601, et seq. (hereafter referred to as VOCA).

EFFECTIVE DATE: February 23, 1995.

FOR FURTHER INFORMATION CONTACT: Carolyn A. Hightower, Acting Director,

State Compensation and Assistance Division, 633 Indiana Avenue NW.,

Washington, DC 20531; telephone number (202) 307-5947. (This is not a

toll-free number).

SUPPLEMENTARY INFORMATION: VOCA provides Federal financial assistance

to States for the purpose of compensating and assisting victims of

crime, providing funds for training and technical assistance, and

assisting victims of Federal crimes.

These Program Guidelines provide information on the administration

and implementation of the VOCA victim compensation grant program as

authorized in Section 1403 of VOCA, Public Law 98-473, as amended,

codified at 42 U.S.C. 10603, and contain the following information:

Summary of the Comments to the Proposed Program Guidelines; Background;

Funding Allocation and Application Process; Program Requirements;

Financial Requirements; Monitoring; and Suspension and Termination of

Funding. The Guidelines are based on the experience gained and legal

opinions rendered during the first nine years of the grant program and

are in accordance with VOCA. These Final Program Guidelines are all

inclusive. Thus, they supersede any Guidelines previously issued by

OVC.

The Office of Justice Programs, Office for Victims of Crime, in

conjunction with the Office of Policy Development, DOJ, and the Office

of Information and Regulatory Affairs, OMB, has determined that this

rule is not a ``significant regulatory action'' for purposes of

Executive Order 12866 and, accordingly, this rule was not reviewed by

the Office of Management and Budget (OMB).

In addition, these Guidelines will not have a significant economic

impact on a substantial number of small entities; therefore, an

analysis of the impact of these rules on such entities is not required

by the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.

The collection of information described in the Program Requirements

section has been approved by the Office of Management and Budget (OMB)

as required under the Paperwork Reduction Act, 44 U.S.C. 3504(h). (OMB

Approval Number 1121-0014.)

Summary of the Comments to the Proposed Program Guidelines

On December 17, 1993, the Office for Victims of Crime (OVC)

published proposed VOCA Victim Compensation Program Guidelines in the

Federal Register, Vol. 58, No. 164, pages 66023 through 66028. These

proposed Guidelines were published for the purpose of soliciting

comments on the revised rules for the VOCA victim compensation grant

program from all interested individuals and organizations. OVC received

six letters from interested individuals and organizations and had

conversations with many State VOCA compensation administrators. In

total, over twenty-four different issues, questions, recommendations,

and comments were received, which often reflected a variety of

perspectives.

Respondents included individuals as well as representatives of

State and national organizations concerned with various aspects of the

implementation of State crime victims compensation benefits and the

VOCA victim compensation grant program. The national organizations

included the National Association of Crime Victim Compensation Boards

(NACVCB) and [[Page 10112]] the National Indian Justice Center (NIJC).

There were also comments submitted by four State VOCA compensation

administrators.

In addition, on September 18, 1994, President Clinton signed into

law the Violent Crime Control and Law Enforcement Act of 1994. This

comprehensive anti-crime legislation contained a number of victim

related provisions. The following four amendments to the Victims of

Crime Act (VOCA) directly affect the VOCA victim compensation grant

program:

(1) modification of the VOCA formula for distribution of the Crime

Victims Fund dollars; (2) establishment of State compensation programs

as the ``payors of last resort''; (3) authorization for use of up to 5

percent of VOCA victim compensation and assistance grant funds for

administrative costs; and (4) requiring states to maintain previous

level of funding support in administering the VOCA compensation grant

program. The following paragraphs incorporate comments from the field

and reflect new policy guidance from OVC.

OVC appreciates the time and effort each respondent invested in

reading and commenting upon the proposed Guidelines. All comments were

carefully considered in developing these Final Program Guidelines. As a

result, OVC rewrote, deleted, and incorporated additional information

to further clarify various sections of the Guidelines. Explanation of

our resolutions and final determinations are presented in the following

analysis of each of the modified sections.

A. Background

A number of respondents expressed concern that the current language

of this section speaks only of reimbursement paid directly to crime

victims when in fact many programs pay providers of services such as

hospitals, physicians, dentists, and attorneys directly. Thus, we have

revised the language in this section to provide that State crime victim

compensation programs may use VOCA compensation grant funds to pay for

eligible expenses to, or on behalf of, an eligible crime victim except

for property damage and losses. We feel that this modification will

address any ambiguity regarding payments made directly to providers of

services on behalf of victims.

B. Availability of Funds

Since 1989, OVC has received questions regarding the obligation and

expenditure of grant funds, particularly with regard to the grant

period. In an attempt to address this issue, these Final Program

Guidelines clarify that funds are available for obligation beginning

October 1 of the year of the award through September 30 of the

following Federal Fiscal Year (FFY). Thus, States are permitted to pay

compensation claims retroactively from the start of the project period,

even though the VOCA grant may not be awarded until later in the grant

period.

C. Application Process

1. Eligible State Payment Certification. Each year States submit a

Crime Victim Compensation Eligible State Payments Certification Form

with their application for a Federal VOCA victim compensation grant

award. The amount certified on this form is used by OVC to determine

the amount of each eligible State's annual grant allocation.

Previously, OVC required that the designated State certifying official

was limited to the Governor, the Attorney General, or the Secretary of

State. Since 1989, certifications of several States have been delayed

because of this requirement, thus delaying grant awards to all States.

In response, OVC now will accept the signature of the authorized

individual within the agency designated by the Governor to administer

the state compensation program on the annual certification of state

payouts form. The NACVCB responded in support of the change and

indicated that the modification will promote the timely implementation

of the VOCA grant program.

2. Civil Rights Information. One respondent raised a concern

regarding the collection of personal information such as race, national

origin, gender, age, and handicap. Many States are prohibited from

mandating that victims provide such information. Therefore, qualifying

language has been added in the Application Process section of these

Final Program Guidelines.

D. Program Requirements

1. State Eligibility Criteria. One respondent petitioned OVC to

seek a legislative amendment to VOCA, which would allow for direct

funding of compensation programs operated by tribal governments.

Throughout the Legislative History of VOCA, Congress explicitly rejects

the notion of funding separate programs to compensate crime victims

because such action would result in duplication of effort. Rather, as a

condition of eligibility for a VOCA crime victim compensation grant, a

State must provide compensation to victims of Federal crime, including

Native Americans, on the same basis as such program provides

compensation to victims of State crimes. OVC must conform with the

mandate of Congress on this matter.

Another respondent pointed out that the definition of ``State''

which is provided in VOCA did not appear in the proposed Guidelines.

This omission was inadvertent, and the definition has been included in

the Program Requirements section of these Final Program Guidelines.

2. Victim Cooperation with Law Enforcement. OVC received numerous

inquiries concerning the VOCA provision which requires, as a condition

of eligibility, that a program promote victim cooperation with the

reasonable requests of law enforcement. The proposed Program Guidelines

provided that a State may, at its discretion, impose reasonable

requirements, but must, at a minimum, require that the victim report

the crime to the ``appropriate law enforcement agency.'' Several

programs have sought clarification as to the extent of discretion

afforded States through this provision.

OVC is aware that in many jurisdictions, adult and child abuse

reports may be filed with protective services agencies or may be filed

with family or domestic courts. Hence, these Final Program Guidelines

provide that States may utilize any of the following criteria to meet

this VOCA Requirement or any other criteria the State believes is

necessary to encourage victim cooperation with law enforcement and to

verify that a crime occurred: a) require a victim to report the crime

to the appropriate law enforcement agency; or b) require a victim to

report the crime to an appropriate governmental agency, such as child

and/or adult protective services, or family or juvenile court. In

addition, for the purposes of meeting this VOCA program requirement

States may accept the results of a medical evidentiary examination in

lieu of a law enforcement report.

In assessing victim cooperation, State crime victim compensation

programs are encouraged to carefully consider compelling health or

safety reasons which may influence the extent of victim cooperation

with law enforcement. Such considerations may include apprehension

regarding personal safety, fear of retaliation, and intimidation by the

offender or others.

3. Compensation for non-residents. With regard to the requirement

that States offer compensation to non-residents who are victimized

within their borders, and the requirement that States offer

compensation to their own residents who are victimized in States

without eligible compensation [[Page 10113]] programs, some respondents

requested that the Guidelines specify that in both situations,

claimants must meet the eligibility requirements of the applicable

State statute. These Final Program Guidelines stipulate that claimants

are eligible to apply for crime victim compensation from the State in

which the crime occurred if the State's statutory eligibility

requirements are met. However, if the State in which the crime occurred

does not have an eligible compensation program, the crime victim should

apply in the State in which he or she resides. Victim eligibility and

the extent to which an eligible victim will be compensated are

established by the respective State statute.

E. State Certification

In response to a request from one respondent, the definition of a

``compensable crime'' has been further defined to include not only

crimes of violence but other crimes in which the victim suffers

psychological or emotional trauma although there may not be any

physical injury. While most State statutes explicitly define the crimes

which will be covered under their program, questions have been raised

as to whether certain crimes which involve emotional abuse, but did not

involve physical injury, would be considered compensable under VOCA.

Hopefully, this modification clarifies the type of crimes which may be

considered compensable.

One respondent expressed concern regarding the availability of

compensation for traditional healing and burial expenses. The

respondent noted that there is great variation among the States as to

the type and extent of expenses which are eligible for compensation.

OVC appreciates the cultural and financial issues, as well as the need

for each State to recognize and support various methods available and

preferable to victims in their recovery and/or stabilizing their lives

after a victimization. However, determinations as to the extent of

benefits available to crime victims remains solely within the

prerogative of each State. VOCA does not stipulate with any specificity

the extent or any qualifying factors for the payment of expense

categories.

In connection with the payment of forensic sexual assault

examinations, one respondent recommended that clarification be given

regarding inclusion of payments made for forensic sexual assault

examinations in a State's certified payments. Specifically, the

respondent suggested that the Guidelines advise that although the

eligibility criteria for a VOCA compensation grant require that a

victim report to local law enforcement, States may waive the reporting

requirement in the following circumstances: (1) the primary purpose of

the examination is to collect forensic evidence; (2) such payments are

allowable under the State's statute or administrative rules; and (3)

such payments are made from funds administered by the compensation

program.

Guidelines for Crime Victim Compensation Grants

Background

In 1984, VOCA established the Crime Victims Fund (Fund) in the U.S.

Treasury and authorized the Fund to receive deposits from fines and

penalties levied on criminals convicted of Federal crimes. This Fund

provides the source of funding for carrying out all of the activities

mandated by VOCA.

OVC was established in 1984 as the Justice Department's chief

advocate for America's crime victims. OVC's program activities are

consistent with VOCA. These Final Program Guidelines address the

specific program and financial requirements of the VOCA crime victim

compensation grant program.

OVC makes annual VOCA crime victim compensation grants from the

Fund to eligible States. The primary purpose of these grants is to

supplement State efforts to provide financial assistance and

reimbursement to crime victims throughout the Nation for costs

associated with being a victim of a crime, and to encourage victim

cooperation and participation in the criminal justice system. State

crime victim compensation programs may use VOCA compensation grant

funds to pay for eligible expenses provided by the State compensation

statute except for property damage and property losses.

The 1994 amendments to VOCA made a number of changes affecting the

crime victim compensation program. These amendments can be found in

sections 1402(d) which describe the distribution of the Crime Victim

Fund and section 1403 of VOCA, which describes the requirements and

eligibility criteria for a VOCA victim compensation grant award.

For the first time since the inception of the State VOCA victim

compensation program, States may use up to five percent of their grant

award for administrative purposes. This provision will apply to State

VOCA victim compensation grants for Federal Fiscal Year 1995. Guidance

as to the conditions, limitations, and reporting requirements on the

expenditure of administrative funds is set forth the Availability of

Funds section of these Final Program Guidelines.

States have the responsibility for establishing guidelines and

procedures for applying for crime victim compensation benefits which

meet the minimal statutory requirements outlined in VOCA and the

requirements in these Program Guidelines.

Funding Allocation and Application Process

A. Distribution of Crime Victim Fund

OVC administers the deposits made into the Fund for programs and

services, as specified in VOCA. The amount of funds available for

distribution each year is dependent upon the total deposits into the

Fund in the preceding Federal Fiscal Year.

The Federal Courts Administration Act of 1992 removed the cap on

the Fund, beginning with Federal Fiscal Year (FFY) 1993 deposits. This

Act also eliminated the need for periodic reauthorization of VOCA and

the Fund. Thus, under current legislation, the Fund will receive

deposits indefinitely.

The Violent Crime Control and Law Enforcement Act of 1994 provides

that the deposits into the Fund are to be distributed as follows:

1. The first $6,200,000 deposited in the Fund in each of the fiscal

years 1992 through 1995 and the first $3,000,000 in each fiscal year

thereafter is available to the Administrative Office of United States

Courts for administrative costs to carry out the functions of the

judicial branch under Sections 3611 of Title 18, U.S. Code.

2. Of the next $10,000,000 deposited in the Fund a particular

fiscal year,

a. 85 percent shall be available to the Secretary of Health and

Human Services for grants under Section 4(d) of the Child Abuse

Prevention and Treatment Act for improving the investigation and

prosecution of child abuse cases;

b. 15 percent shall be available to the Director of the Office for

Victims of Crime for grants under Section 4(d) of the Child Abuse

Prevention and Treatment Act for Assisting Native American Indian

Tribes in developing, establishing, and operating programs to improve

the investigation and prosecution of child abuse cases.

3. The remaining Fund deposits are distributed as follows:

a. 48.5 percent is available for victim compensation grants;

b. 48.5 percent is available for victim assistance grant;

c. 3 percent is available for support of services to Federal crime

victims and for demonstration, training, and technical assistance

grants to eligible crime victim programs. [[Page 10114]]

B. Availability of Funds

The Director of OVC will make an annual grant to eligible State

crime victim compensation programs equal to 40 percent of the amounts

awarded by the State program to victims of crime from State sources of

revenue during the fiscal year preceding the year of deposits in the

Fund (two years prior to the grant year). Note: Amounts paid to

compensate victims for property damage or property loss can not be

included in a state's certification for a VOCA victim compensation

grant award. If the amount in the Fund is insufficient to award each

State 40 percent of its prior year's compensation payout, Section

1403(a)(2) of VOCA provides that all States will be awarded the same

reduced percentage of their prior year payout from the available funds.

Funds are available for expenditure throughout the FFY of award as

well as in the next FFY. The FFY begins on October 1 and ends on

September 30. State crime victim compensation programs may pay

compensation claims retroactively from October 1, even though the VOCA

grant may not be awarded until later in the grant period. Funds that

are not obligated by the end of the grant period must be returned to

the General Fund of the U.S. Treasury. Therefore, States are encouraged

to monitor closely the expenditure of VOCA funds prior to the end of

the grant period.

Administrative Costs

The Victims of Crime Act (VOCA) now allows up to five percent of

VOCA crime victim compensation grant funds to be used for administering

the state crime victim compensation grant program(s). It is in the

State's discretion to use the allowable five percent for

administration. However, any part of the allowable five percent which

is not used for administrative purposes must be used for awards of

compensation to crime victims.

The intent of this new provision of VOCA is to support and advance

program administration in all operational areas including claims

processing, staff development and training, public outreach, and

program funding by supporting those activities that will improve

program effectiveness and service to crime victims. If a state elects

to use up to five percent of their VOCA compensation grant for

administrative purposes, only those costs directly associated with

administering the program, enhancing overall program operations, and

ensuring compliance with Federal requirements, can be paid with limited

administrative grant funds. Further, States must certify that VOCA

funds used for administrative purposes will not be used to supplant

State or local funds but will be used to increase the amount of State

funds that would be available for administering the compensation

program. For the purpose of establishing a baseline level of effort,

States should maintain documentation as to the overall administrative

commitment of the State prior to their use of VOCA administrative grant

funds.

Allowable administrative costs include but are not limited to the

following: program personnel, salary and benefits; travel costs for

attendance at state, regional, and national compensation training

conferences; computer equipment and support services; costs involved in

the production and distribution of program brochures and posters, and

other program outreach activities; professional fees for computer

services and peer review of compensation claims; agency membership dues

for victim compensation organizations; program enhancements such as

toll-free numbers; special equipment and materials to facilitate

service to persons with disabilities, and other reasonable costs

directly related to administering a compensation program. Indirect

costs expressed as a percentage of state-wide joint costs will not be

considered as allowable.

Staff supported by 5% of the VOCA compensation administrative funds

under the VOCA Crime Victim compensation grant must work directly for

the compensation program in the same proportion as their level of

support from VOCA grant funds. If the staff have other functions, the

proportion of time working on the compensation program must be

documented using some reasonable method at regular intervals such as

time and attendance records on all funded staff which demonstrate the

portion of staff time spent on compensation related activities. The

documentation must provide a clear audit trail for the expenditure of

grant funds.

Only staff activities directly related to compensation functions

can be funded with VOCA administrative funds. Similarly, any equipment

purchases or other expenditures charged to the VOCA compensation grant

should only be charged proportionate to the percentage of time utilized

by the compensation program.

Temporary or periodic personnel support, such as qualified peer

reviewers for medical and mental health claims, and data processing

support services are also allowable. These services may be obtained

through contract using VOCA administrative funds.

Those States that elect to utilize administrative funds under the

VOCA compensation grant, shall include with their annual application a

general description of how the administrative funds will be used. This

description should include an itemization of the state's projected

expenditures for allowable administrative cost. A state may modify

projections set forth in their application by providing OVC a revised

description of their planned use of administrative funds in writing,

subsequent to submitting their annual application. However, the revised

description must be reviewed prior to the obligation of any Federal

funds.

Those States that elect to utilize administrative funds under the

VOCA crime victim compensation grant, shall include a narrative

description of the impact of VOCA administrative funds with their

annual performance report.

C. Application Process

Each year, OVC issues to each eligible State a Program Instruction

and Application Kit, which contains the necessary forms and detailed

information required to make application for VOCA crime victim

compensation grant funds. The amount for which each State may apply is

included in the Application Kit. States shall use the Standard Form

424, Application for Federal Assistance, and its attachments to apply

for VOCA victim compensation grant funds. Applications for VOCA crime

victim compensation grants may only be submitted by the State agency

designated by the Governor to administer the VOCA grant.

Completed applications must be submitted on or before the stated

deadline, as determined by OVC. If an eligible State fails to apply for

its crime victim compensation allocation by the prescribed deadline,

OVC will redistribute Federal VOCA crime victim compensation dollars to

the VOCA victim assistance grant program as provided by Section

1404(a)(1) of VOCA (42 U.S.C. 10603 (a)(1)), assuming all states have

received the statutorily prescribed 40% (percent) of their prior years

payouts.

In addition to submission of the Application for Federal

Assistance, States shall:

1. Specify their arrangements for complying with the provisions of

Circular A-128 (Audits of State or Local Government.)

2. Submit Certifications Regarding Lobbying, Debarment, Suspension,

and [[Page 10115]] Other Responsibility Matters; Drug-Free Workplace

Requirements; Civil Rights Compliance, and any other certifications

required by OJP and OVC. Additionally, States must complete a

disclosure form specifying any lobbying activities that are conducted.

3. Submit a Crime Victim Compensation Eligible State Payments

Certification Form which is furnished by OVC.

The amount certified on this Form is used by OVC to determine the

annual Federal grant award to each eligible State in the following

year. This form must be completed and signed by the authorized

individual within the agency designated by the Governor to administer

the VOCA crime victims compensation grant. For Further information

concerning the State certification, see the Program Requirements

section.

4. Submit the following assurances and information:

a. An assurance that the program will comply with all applicable

nondiscrimination requirements;

b. An assurance that in the event a Federal or State court or

Federal or State administrative agency makes a finding of

discrimination after a due process hearing, on the grounds of race,

color, religion, national origin, sex, or disability against the

program, the program will forward a copy of the finding to the Office

of Justice Programs, Office for Civil Rights (OCR);

c. The name of the civil rights contact person who has lead

responsibility in ensuring that all applicable civil rights

requirements are met and who shall act as liaison in civil rights

matters with OCR;

d. An assurance that programs will maintain information on crime

victims receiving services by race, national origin, sex, age, and

disabilities, where such information is voluntarily furnished by

claimants. A State may, at its discretion, use the following language

when soliciting claimant responses: ``The submission of information

regarding race/ethnic background or disabilities is strictly voluntary.

A decision to not supply this information will not affect your

eligibility for compensation benefits without this information.

However, this information is important. We use it to study the extent

to which members of minorities and persons with disabilities are

recipients of compensation benefits and to determine the extent to

which outreach efforts should be enhanced to ensure access and services

to these populations.''

Program Requirements

A. State Eligibility Criteria

The fundamental criteria for eligibility is the grantee must be an

operational State-administered crime victim compensation program. The

term ``State'' includes the District of Columbia, the Virgin Islands,

and any other possession or territory of the United States. Although an

authorized program that has not actually paid out compensation benefits

would be technically eligible under Section 1403(b)(1) of VOCA, the

program would not be entitled to a VOCA grant because it had not

awarded any benefits that could be matched under Section 1403(a)(1).

VOCA compensation grant funds may not be used as ``start-up'' funds for

a new State program.

Section 1403 of VOCA prescribes the conditions and eligibility

criteria related to crime victim compensation grants. In order for a

State to meet or maintain eligibility for a crime victims compensation

grant, it must satisfy the following eligibility requirements:

1. The program must be operated by a State and offer compensation

to victims and survivors of victims of ``compensable crimes,''

including drunk driving and domestic violence. The term ``compensable

crime'' means a crime, the victims of which are eligible for

compensation under the State's eligible crime victim compensation

program statute or rule. The range of expenses for which States may

award crime victims compensation varies nationwide, although all States

must award compensation for medical expenses, including mental health

counseling and care; loss of wages; and funeral expenses.

2. The program must promote victim cooperation with the reasonable

requests of law enforcement authorities. The States may impose such

reasonable requirements as they see fit to promote this cooperation and

to verify that a crime has occurred. Encouraging victims to cooperate

with law enforcement and to report the crime is important to the

effective functioning of the criminal justice system and to preventing

further victimizations.

In assessing a victim's cooperation with law enforcement, State

crime victim compensation programs are encouraged to consider carefully

any compelling health or safety reasons that may influence the extent

of victim cooperation with law enforcement. Such considerations might

include concerns regarding personal safety and retaliation, as well as

threats or intimidation of the victim by the offender or others.

3. The State must certify that grants received under this section

will not be used to supplant State funds otherwise available to provide

crime victim compensation or to administer the state crime victim

compensation program.

The nonsupplantation provision is intended to assure that States

use VOCA funds to augment, not replace, otherwise available State

funding for crime victim compensation. More specifically, the States

may not decrease their financial commitment to crime victim

compensation solely because they are receiving VOCA funds for the same

purpose.

4. The State, as to compensable crimes occurring within the State,

must make compensation awards to victims who are non-residents of the

State on the basis of the same criteria used to make awards to victims

who are residents of such State.

This provision is intended to ensure that non-residents of a State,

who are victimized in a State that has an eligible compensation

program, are provided the opportunity to apply for and receive the same

compensation benefits that are available to residents of the State. The

provision of reciprocal agreements with certain other States or foreign

countries will not suffice to meet this criteria. Eligibility for VOCA

funds requires the State program to extend its coverage to all non-

residents victimized in the State. Note: For the purposes of this

provision, the term ``non-resident'' must, at a minimum, include anyone

who is a resident in one State but victimized in another. A State may,

at its discretion, broaden its definition of non-resident to include

anyone victimized in the State regardless of whether the victim is a

United States citizen.

5. The State must provide compensation to victims of Federal crimes

occurring within the State on the same basis that such program provides

compensation to victims of State crimes.

For example, a victim of a rape, occurring on a Federal

installation or Indian reservation inside the State, must be afforded

the same benefits that would be available to the victim if the rape

were classified as a crime against the State. This provision is

intended to cover those individuals victimized on military

installations, national parks and highways, Native American

reservations, and under other circumstances where Federal jurisdiction

exists since there is no Federal compensation program which provides

benefits to victims covered under Federal jurisdiction.

6. The State must provide compensation to residents of the State

who are victims of crimes occurring [[Page 10116]] outside the State,

if the crimes would be compensable crimes had they occurred inside that

State and the crimes occurred in a State not having eligible crime

victim compensation programs.

This provision is intended to cover those residents of a State who

are victimized in a State which does not have a crime victim

compensation program.

This requirement protects residents of a State who are victims of

criminal violence in another State which does not have an eligible

crime victims program for which the victim qualifies. In such

instances, the victim would be eligible to apply for crime victim

compensation from the State in which he or she resides. If a person

from one State is victimized in another, which has an eligible

compensation program, the State in which the crime was committed must

offer compensation to the victim according to its own eligibility

requirements and allowable expenses, without regard to the non-

residence status of the victim.

7. Except pursuant to rules issued by the compensation program to

prevent unjust enrichment of the offender, the State cannot deny

compensation to any victim because of that victim's familial

relationship to the offender, or because of the sharing of a residence

by the victim and the offender.

Unjust enrichment, as the basis for denying crime victims

compensation, must be based upon written rules issued by the State

crime victims compensation program. ``Rules'' mean either written

policies or directives developed and distributed by State crime victim

compensation programs or rules adopted by legislative or administrative

bodies. Such rules cannot have the effect of denying compensation to a

substantial percentage of domestic violence victims. The rules relating

to unjust enrichment should be applicable to all claims for

compensation although it is recognized that domestic violence cases

have the greatest potential for unjust enrichment.

In general, programs must balance the goals of making compensation

benefits available to domestic violence victims and preventing unjust

enrichment of offenders. State programs are strongly encouraged to work

with domestic violence coalitions and representatives to this end.

In developing rules, the States are encouraged to consider the

following:

a. Legal responsibilities of the offender to the victim under the

laws of the State and collateral resources available to the victim from

the offender. For example, legal responsibilities may include court-

ordered restitution or requirements for spouse and/or family support

under the domestic or marital property laws of the State. Collateral

resources may include insurance or pension benefits available to the

offender to cover the costs incurred by the victim as a result of the

crime. As with other crime, victims of domestic violence should not be

penalized when collateral sources of payment are not viable, e.g., when

the offender refuses to, or cannot, pay restitution or other civil

judgements within a reasonable period of time or when the offender

otherwise impedes direct or third party (i.e., insurance)

reimbursements.

b. Payments to victims of domestic violence which benefit offenders

in only a minimal or inconsequential manner would not be considered

unjust enrichment. To deny payments, in some instances, could serve to

further victimize the claimant. For example, denial of medical or

dental expenses solely because the offender has legal responsibility

for the charges, but is unwilling, or unable to pay them, could result

in the victim's inability to receive treatment.

c. Consultation with social services and other concerned

governmental entities, as well as with private organizations that

support and advocate on behalf of domestic violence victims.

d. The special needs of child victims of criminal violence

especially when the perpetrator was the parent who may or may not have

lived in the same residence.

8. The State must provide such other information and assurances as

the Director of OVC may reasonably require.

9. If the compensation paid by an eligible crime victim

compensation program would cover the costs that a Federal program, or a

Federally financed State or local program, would otherwise pay such

crime victim compensation program shall not pay that compensation; and

the other program shall make its payments without regard to the

existence of the crime victim compensation program.

B. State Certifications

Guidelines on amounts to be included as well as amounts to be

excluded in a State's certification of payments of crime victims

compensation from State funding sources are furnished below:

1. Program Revenue. States must report on the certification form

all sources of State revenue available to the crime victims

compensation program during the Federal Fiscal Year. In some instances,

funds are made available to the crime victims compensation program from

other departments or agencies, from supplemental appropriations,

donations, or carried over from prior years appropriations. All State

funds which are available during the Federal Fiscal Year should be

reported. The amount of certified revenue, excluding VOCA funds, must

meet or exceed the amount of certified payments to crime victims.

2. Amounts to be Included. The total amount to be certified by the

State program must include only those amounts paid from State funding

sources to or on behalf of crime victims during the Federal Fiscal Year

(October 1 to September 30).

3. Compensable Expenses. The range of expenses for which States may

award crime victims compensation varies nationwide, although all States

must award compensation for medical expenses, including mental health

counseling and care; loss of wages; and funeral expenses. Note: The

term ``medical expenses'' includes, to the extent provided under the

State crime victim compensation program statute, expenses for

eyeglasses and other corrective lenses; dental services, devices, and

prosthetic devices; and for services rendered in accordance with a

method of healing recognized by the law of the State. ``Mental health

counseling and care'' means the assessment, diagnosis, and treatment of

an individual's mental and emotional functioning that is required to

alleviate psychological trauma resulting from a compensable crime. Such

intervention must be provided by a person who meets such standards as

may be set by the State for victim mental health counseling and care.

Compensable expenses to be included in the annual certification

must be authorized by State statute or rule, providing there is rule

making authority in State law. States may include expenses, not

specifically identified in VOCA, such as pain and suffering; crime

scene clean up; replacement costs for clothing and bedding held as

evidence; annuities for child victims for loss of support; medically-

necessary building modification; medically-necessary devices; and

attorney fees related to a victim's claim for compensation.

States may also include payments related to forensic sexual assault

examinations, even if the victim did not report the crime to law

enforcement if such payments are made from funds administered by the

compensation program and are allowable under the state's statute or

administrative rules.

4. Amounts to be excluded. States must exclude, in the

certification, VOCA grant funds, compensation for

[[Page 10117]] property losses or property damage, audit costs,

personnel costs, and any other program administrative costs.

5. Applicable Credits. Any ``applicable credits'' must be deducted

from the State certification. The term ``applicable credits'' refers to

those receipts or reduction of expenditures, which offset or reduce

expense items that are allocable to a particular crime victim

compensation claim. Typical examples of applicable credits in State

crime victims compensation programs include funds received through a

State's subrogation interest in a claimant's civil law suit recovery,

restitution, refunds, or other reimbursements. Refunds include amounts

from overpayment, erroneous payments made to claimants, uncashed

checks, etc. Additional guidance regarding applicable credits can be

found in OMB Circular A-87, ``Cost principles for State and Local

Governments.''

States must determine how to account for both the receipt and

expenditure of restitution and refunds. Note: A State is not required

to reduce its certified payment figure by the amount of restitution

recoveries received by the State which are not directly related to the

payment of crime victim compensation benefits, nor when such

reimbursements were from payments to victims prior to receiving a VOCA

award.

6. Recovery Costs. Expenses incurred by State compensation

programs, which are directly attributable to the recovery of

restitution, refunds, and other reimbursements, may be offset against

the amount of income received from such reimbursements. Expenses

directly attributable to recovery income shall be limited to the

percentage of those salaries incurred by the State for employees whose

primary responsibilities (not less than 75 percent of their time) are

directly and specifically related to recovering restitution and other

reimbursements. Recovery costs can not be claimed for employees whose

salary is derived from Federal administrative grant funds.

7. There is no financial requirement that State compensation

programs identify the source of individual payments to crime victims as

either Federal or State dollars.

C. Incorrect Certifications

If it is determined that a State has made an incorrect

certification of payments of crime victims compensation from State

funding sources and a VOCA crime victim compensation grant is awarded

in error, one of the following two courses of action will be taken:

1. In the event that an over certification comes to the attention

of OVC or the Office of the Comptroller, OJP, the necessary steps will

be taken to recover funds which were awarded in error. OVC does not

have the authority to permit States to keep amounts they were not

entitled to as a result of overcertification.

2. If a State under-certifies amounts paid to crime victims, OVC

will not supplement payments to the State in a subsequent year to

correct the State's error. Once OVC awards funds in a given FFY, there

are no excess funds available to remedy errors of this nature.

D. Program Reporting Requirements

States receiving VOCA crime victims compensation grant funds are

required to prepare an Annual Performance Report that is provided by

OVC. The Report requests specific information about claims for

compensation, such as types of crimes committed, including drunk

driving and domestic violence, disposition of claims, and payments for

compensable expenses. The Performance Report covers the Federal Fiscal

Year ending September 30 and is due to OVC by December 30 of the same

year.

E. Additional Requirements

1. Civil Rights--Prohibition of Discrimination for Recipients of

Federal Funds. No person in any State shall, on the grounds of race,

color, religion, national origin, sex, or disability be excluded from

participation in, be denied the benefits of, be subjected to

discrimination under, or denied employment in connection with any

program or activity receiving Federal financial assistance, pursuant to

the following statutes and regulations: Section 809(c), Omnibus Crime

Control and Safe Streets Act of 1968, as amended, 42 U.S.C. 3789d, and

Department of Justice Nondiscrimination Regulations, 28 CFR part 42,

Subparts C, D, E, and G; Title VI of the Civil Rights Act of 1964, as

amended, 42 U.S.C. 2000d, et seq.; Section 504 of the Rehabilitation

Act of 1973, as amended, 29 U.S.C. 794; Subtitle A, Title II of the

Americans with Disabilities Act of 1990, 42 U.S.C. 12101, et seq.; and

Department of Justice regulations on disability discrimination, 28 CFR

part 35 and part 39; Title IX of the Education Amendments of 1972, as

amended, 20 U.S.C. 1681-1683; and the Age Discrimination Act of 1975,

as amended, 42 U.S.C. 6101, et seq.

2. Confidentiality of Research Information. Except as otherwise

provided by law, no recipient of monies under VOCA shall use or reveal

any research or statistical information gathered under this program by

any person, and identifiable to any specific private person, for any

purpose other than the purpose for which such information was obtained,

in accordance with VOCA. Such information, and any copy of such

information, shall be immune from legal process and shall not, without

the consent of the person furnishing such information, be admitted as

evidence or used for any purpose in any action, suit, or other

judicial, legislative, or administrative proceeding. [See Section

14007(d) of VOCA, codified at 42 U.S.C. 10604(d)].

This provision is intended, among other things, to assure the

confidentiality of information provided by crime victims to employees

of VOCA-funded victim compensation programs. However, there is nothing

in VOCA or its legislative history to indicate that Congress intended

to override or repeal, in effect, a State's existing law governing the

disclosure of information, which is supportive of VOCA's fundamental

goal of helping crime victims. For example, this provision would not

act to override or repeal, in effect, a State's existing law pertaining

to the mandatory reporting of a suspected child abuse. See Pennhurst

State School and Hospital v. Halderman, et al., 451 U.S. 1 (1981).

Financial Requirements

As a condition of receiving a grant, States agree to insure

adherence to the general and specific requirements as set forth in the

``Financial and Administrative Guide for Grants,'' OJP M71OO.1D

(effective edition) and applicable OMB Circulars and Common Rules. This

includes the maintenance of books and records in accordance with

generally accepted government accounting principles. States further

agree to identify state fiscal year and Federal cognizant audit agency.

This section describes the payment of grant funds, termination of

advanced funding; financial status reports, and audit requirements.

A. Audit Responsibilities for States

Pursuant to OMB Circular A-128 (Audits of State or Local

Governments), States that receive $100,000 or more in Federal financial

assistance in any fiscal year must have a single audit for that year.

States receiving at least $25,000, but less than $100,000, in a fiscal

year have the option of performing a single audit or an audit of the

Federal program, as required by the applicable Federal laws and

regulations. State and local governments receiving less than $25,000

[[Page 10118]] in any fiscal year are exempt from audit requirements.

B. Audit Costs

Although under OMB Circular A-128 audit costs are generally

allowable charges under Federal grants, audit costs incurred at the

grantee (State) level are determined to be an administrative expense.

C. Financial Status Report for States

Financial Status Reports (269A) are required from all State

agencies. A Financial Status Report shall be submitted to the Office of

the Comptroller for each calendar quarter in which the grant is active.

This Report is due even though no obligations or expenditures were

incurred. Financial Status Reports shall be submitted to the Office of

the Comptroller, by the State, within 45 days after the end of each

calendar quarter. Calendar quarters end March 31, June 30, September

30, and December 31. A Final Financial Status Report is due 90 days

after the end of the VOCA grant, no later than December 31.

D. Termination of Advance Funding

If the State grantee receiving cash advances by Letter of Credit or

by direct Treasury check demonstrates an unwillingness or inability to

establish procedures that will minimize the time elapsing between cash

advances and disbursement, OJP may terminate advance funding and

require the State to finance its operations with its own working

capital. Payments to the State will then be made by the direct Treasury

check method, which reimburses the State for actual cash disbursements.

Monitoring

A. Office of the Comptroller/General Accounting Office/Office of the

Inspector General

The Office of the Comptroller, the General Accounting Office, and

the Office of the Inspector General conducts periodic reviews of the

financial policies and procedures and records of VOCA States.

Therefore, upon request, States must give authorized representatives

the right to access and examine all records, books, papers, case files,

or other documents related to the grant.

B. Office for Victims of Crime

Beginning with the FFY 1991 grant period, OVC implemented an on-

site monitoring plan in which each State grantee is visited a minimum

of once every three years. While on site, OVC personnel will review

various documents and files such as (1) financial and program manuals

and procedures governing the crime victim compensation grant program;

(2) financial records, reports, and audit reports for the State

grantee; (3) the State's compensation application, procedures, and

guidelines for awarding compensation benefits; (4) a random sampling of

victim compensation claim files; and (5) all other applicable State

records and files.

Suspension and Termination of Funding

If, after notice and opportunity for a hearing, OVC finds that a

State has failed to comply substantially with VOCA, the M7100.1D

(effective edition), the Final Program Guidelines, or any implementing

regulation or requirement, OVC may suspend or terminate funding to the

State and/or take other appropriate action. At such time, States may

request a hearing on the justification for the suspension and/or

termination of VOCA funds.

Approved by:

Aileen Adams

Director, Office for Victims of Crime, Office of Justice Programs.

[FR Doc. 95-4417 Filed 2-22-95; 8:45 am]

BILLING CODE 4410-18-P