Victims of Crime Act Victim Compensation Grant Program

DEPARTMENT OF JUSTICE

Office of Justice Programs

[OJP (OVC) No. 1105]

RIN 1121-AA30

Victims of Crime Act Victim Compensation Grant Program

AGENCY: Office of Justice Programs, Office for Victims of Crime,

Justice.

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: From October 1, 1996 (Federal Fiscal Year 1997 VOCA

grant program), until further revised by OVC.

FOR FURTHER INFORMATION CONTACT: Jackie McCann Cleland, Director, State

Compensation and Assistance Division, 633 Indiana Avenue NW.,

Washington, DC 20531; telephone number (202) 307-5983. (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 Final 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. 10602 and 10603b, and contain the

following information: Summary of the Comments on the Proposed Program

Guidelines; Background; Funding Allocation and Application Process;

Program Requirements; Financial Requirements; Monitoring; and

Suspension and Termination of Funding. These Final Program Guidelines

are based on the experience gained and legal opinions rendered since

the inception of the grant program in 1986, 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, the Office of Management and

Budget (OMB), has determined that this rule is not a ``significant

regulatory action'' for purposes of Executive Order 12866 and,

accordingly, these Final Program Guidelines were not reviewed by OMB.

In addition, it has been determined that these Final Program

Guidelines will not have a significant economic impact on a substantial

number of small entities; therefore, an analysis of the impact of these

Guidelines on such entities is not required by the Regulatory

Flexibility Act, 5 U.S.C. 601, et seq.

The program reporting requirements described in the Program

Requirements section have been approved by the OMB as required under

the Paperwork Reduction Act, 44 U.S.C. 3504(h). (OMB Approval Number

1121-0014.)

Summary of the Revisions to the 1997 Proposed Program Guidelines

Proposed VOCA Victim Compensation Program Guidelines were

distributed to interested individuals and organizations for the purpose

of soliciting comments. In September, 1996, OVC asked the state VOCA

victim compensation program administrators attending the annual

conference of the National Association of Crime Victim Compensation

Boards (NACVCB) for their comments. In September, OVC also mailed

copies of the Proposed Guidelines to all of the state VOCA victim

compensation and assistance program administrators, as well as to the

executive directors of national victim organizations.

OVC received comments from state VOCA victim compensation and

assistance administrators, representatives of national victim

organizations, and one state legislator. In total, over 18 different

recommendations, questions, and comments were received.

As a result of the comments from the field, recent legislative

amendments, and modifications of applicable federal regulations,

substantive changes were made to four sections of the Proposed Program

Guidelines, including: the

[[Page 7051]]

Availability of Funds, the Application Process, the Program

Requirements, and the Financial Requirements. These changes are

summarized in the paragraphs below, and incorporated into the complete

text of the Final Program Guidelines for Crime Victim Compensation

Grants. The Final Program Guidelines also include several technical

corrections that are not listed in this summary because they do not

affect policy or implementation of the Guidelines.

I. Comments From the Field

A. Administrative Cost Provision

1. Indirect Cost. Some respondents questioned OVC's prohibiting the

use of these funds for indirect cost and noted that this was

inconsistent with rules governing other OJP formula grant programs.

Thus, this restriction has been eliminated from the ``Availability of

Funds'' section of the Final Program Guidelines.

2. Delivery and Quality of Services. Respondents also noted that

VOCA compensation programs, like VOCA assistance programs need to

measure the impact of their activities on the delivery and quality of

services to crime victims throughout their state. Thus, the following

activities can now be supported by VOCA victim compensation

administrative funds:

a. Improving coordination efforts on behalf of crime victims with

other OJP Offices and Bureaus and with federal, state, and local

agencies and organizations;

b. Providing training on crime victim compensation program issues

such as application and eligibility requirements and range of

compensable expenses, to state, public, and nonprofit organizations

that serve or assist crime victims such as law enforcement officials,

victim witness coordinators, corrections personnel, social service

workers, victim service providers, and mental health and medical

professionals;

c. Purchasing, printing, and/or developing applications, brochures

and other relevant publications such as training manuals which describe

the compensation application process, eligibility criteria, and range

of benefits, available for crime victims;

d. Developing protocols, policies, and procedures that promote

coordination of victim compensation and victim assistance services and

improve the ways crime victims are treated and served;

B. Victim Cooperation with Law Enforcement

OVC received numerous inquires concerning the VOCA provision which

requires, as a condition of eligibility, that a program promote victim

cooperation with the reasonable requests of law enforcement.

Many victims of crime cannot qualify for compensation because they

have not complied with reporting and cooperating requirements found in

most state statutes. There are many reasons for this, including fear of

reprisal, a belief by the victim that the police are insensitive,

ineffective, or biased, and other reasons. Historically, the most under

reported crimes were rape, sexual assault, and domestic violence.

Moreover, when many of these victims do report, they frequently miss

the 72-hour reporting requirement used as a condition of eligibility in

most state compensation programs.

In light of these facts, and in response to comments from VOCA

program administrators and other crime victim advocates, OVC has

modified the Final Program Guidelines. Although state crime victim

compensation programs maintain the authority and discretion to

establish their own standards for ``reasonable cooperation,'' OVC

encourages state compensation program staff to meet with victims and

victim service providers to carefully review whether state statutes,

program guidelines, and policies are responsive to the needs of crime

victims and to determine possible barriers that might impede a victim's

cooperation with law enforcement.

Possible impediments include compelling health or safety reasons,

such as apprehension regarding personal safety, fear of retaliation,

and intimidation by the offender or others. For example, some victims

may be reluctant to cooperate fully with law enforcement after

receiving threats of violence or even death against themselves and

their children from the offender.

Age, psychological, cultural, or linguistic barriers may also

influence the extent of victim cooperation with law enforcement. For

instance, there may be special barriers deterring a young child or

senior citizen from ``reasonable cooperation.'' Likewise, embarrassment

and shame may delay the reporting of sexual assault, and cultural and

language differences may diminish a victim's access to the criminal

justice system.

In setting the standard for victim cooperation with law

enforcement, the state program should determine how much weight to give

to these considerations.

VOCA's ``cooperation with the reasonable requests of law

enforcement'' requirement may be fulfilled by utilizing the following

criteria or any other criteria the state believes is necessary to

encourage victim cooperation with law enforcement. For example, a state

may:

1. Require a victim to report the crime to a law enforcement

agency;

2. Require a victim to report the crime to an appropriate

governmental agency, such as child and/or adult protective services,

family or juvenile court; or

3. Accept proof of the completion of a medical evidentiary

examination, such as medical reports, x-rays, medical photographs, as

well as other clinical assessments as evidence of cooperation with law

enforcement in cases involving sexual assault or abuse.

Modifications to the ``victim cooperation with law enforcement''

language are contained in the ``Program Requirements'' section of the

Final Program Guidelines.

II. Legislative Changes

A. The Antiterrorism and Effective Death Penalty Act of 1996 (Pub. L.

104-132)

The Antiterrorism and Effective Death Penalty Act of 1996 (Public

Law 104-132) (hereinafter ``The Antiterrorism Act'), signed into law on

April 24, 1996, contained a number of victim related provisions that

amended VOCA. Listed below are three provisions that resulted in

changes to the ``State Eligibility Criteria'' section of the Final

Program Guidelines.

1. State Eligibility Criteria/Mandatory Coverage of Terrorism

Victims in State Compensation Statutes. The Antiterrorism Act provides

for a new VOCA-eligibility requirement that each state must include

``crimes involving terrorism'' in their definition of ``compensable

crimes''. Thus, the state must offer compensation benefits to:

a. Residents and non-residents who are injured or killed by a crime

involving terrorism occurring within the state;

b. Its own residents who are injured or killed in terrorist attacks

occurring outside the United States or in a state that does not have an

eligible crime victim compensation program.

The law gives states until April 24, 1997 (Federal Fiscal Year 1998

grant application) to come into compliance with this new eligibility

requirement for receiving federal VOCA compensation grants.

2. Means Testing. The Antiterrorism Act also prohibits any federal,

state, or

[[Page 7052]]

local government program that uses federal funds from including victim

compensation benefits when determining income eligibility for an

applicant, if the applicant needs such assistance (medical or

otherwise), in full or in part, because of the commission of a crime

against the applicant.

3. Prohibition Against Awards To Convicted Persons Owing Fines. The

Antiterrorism Act prohibits states from awarding victim compensation

benefits to any person convicted of a federal crime who is delinquent

in paying a fine, monetary penalty, or restitution imposed for the

offense. This provision, however, will not become effective until the

U.S. Attorney General and the Director of the Administrative Office of

the U.S. Courts issue a written determination that the entities

administering federal victim programs have access to accurate and

efficient criminal debt payment information. As of this date, no such

determination has been made, and states are under no obligation to

investigate or make determinations on whether a victim owes a federal

criminal debt before awarding compensation benefits.

The Antiterrorism Act also resulted in three changes to the

``Availability of Funds'' section.

a. OVC Reserve Fund. The Anti-terrorism Act authorizes the OVC

Director to establish a reserve fund, up to $50 million, from current

year Crime Victims Fund (Fund) deposits which are in excess of 110

percent of the total amount deposited in the Fund during the preceding

fiscal year. Reserve fund monies may be used for supplemental grants to

assist victims of terrorist acts or mass violence occurring within or

outside the U.S. The OVC Director may award reserve funds to the

following entities:

(1) States for providing compensation and assistance to their state

residents, who, while outside of the borders of the United States,

become victims of a terrorist act or mass violence. The beneficiaries,

however, cannot be persons who are already eligible for compensation

under the Omnibus Diplomatic Security and Antiterrorism Act of 1986.

Individuals covered under this Act include those who are taken captive

because of their relationship with the U.S. government as a member of

the U.S. Civil Service, as well as other U.S. citizens, nationals, or

resident aliens who are taken captive while rendering service to the

U.S. similar to that of civil servants. Dependent family members of

such persons also are covered under the Omnibus Diplomatic Security

Act.

(2) States' eligible crime victim compensation and assistance

programs for providing compensation and emergency relief for the

benefit of victims of terrorist acts or mass violence occurring within

the U.S.; and

(3) U.S. Attorney's Offices for use in coordination with state

victim compensation and assistance efforts in providing relief to

victims of terrorist acts or mass violence occurring within the U.S.

(4) The Director of OVC may also award OVC reserve funds to

eligible state compensation and assistance programs to offset

fluctuation in the funds during years in which the Fund decreases and

additional monies are needed to stabilize funding for state programs.

b. Unobligated Grant Funds. Beginning with FFY 1997 VOCA grants,

funds not obligated by the end of the grant period, up to a maximum of

$500,000, will be returned to the Fund, and not to the General

Treasury, as was the practice in previous years. Returned funds in

excess of $500,000 in a given year shall be returned to the Treasury.

Once any portion of a state's grant is returned to the Fund, the funds

must be redistributed according to the formula established by VOCA and

the Final Program Guidelines. States are encouraged to closely monitor

the expenditure of VOCA funds throughout the grant period to avoid

returning unobligated balances at the end of the grant period.

c. Grant Period Extended. The Antiterrorism Act extended the VOCA

victim compensation grant period from the year of award plus one, to

the year of award plus two. (Subsequent legislation further extended

the grant period to the year of award, plus three.)

B. Omnibus Appropriations Act of 1997

This legislation was passed by Congress and signed into law by

President Clinton in September, 1996. This Act further extended the

grant period to the year of award plus three. This change is effective

for all FFY 1997 grants. The Final Program Guidelines clarify that

funds are available for obligation beginning October 1 of the year of

the award, through September 30 of the FFY three years later. For

example, grants awarded in November, 1996 (FFY 1997) are available for

obligation beginning October 1, 1996 through September 30, 2000.

This modification is contained in the ``Availability of Funds''

section of the Final Program Guidelines.

III. Changes in Applicable Federal Regulations

A. Mandatory Enrollment in U.S. Treasury Department's Automated

Clearing House (ACH) Vendor Express Program

In accordance with the Debt Collection Improvement Act of 1996, the

U.S. Treasury Department revised its regulations regarding federal

payments. The Final Program Guidelines have been modified to require

that, effective July 26, 1996, all federal payments to VOCA victim

compensation grantees must be made via electronic funds transfer.

States that are new award recipients, or those that have previously

received funds in the form of a paper check from the U.S. Treasury,

must enroll in the Treasury Department's ACH Vendor Express program

before requesting any federal funds. This means that VOCA grantees can

no longer receive drawdowns against their awards via paper check mailed

from the Treasury. Grant recipients must enroll in ACH for Treasury to

electronically transfer drawdowns directly to their banking

institutions. States that are currently on the Letter of Credit

Electronic Certification System (LOCES) will be automatically enrolled

in the ACH program. This modification is included in the ``Application

Process'' section of the Final Program Guidelines.

B. Higher Audit Threshold

In response to suggestions made by many recipients of federal grant

awards, including VOCA grant recipients, OMB Circular, A-133 was

revised, raising the audit threshold to $300,000 for all organizations

receiving federal grants. This means that those state compensation

programs that expend $300,000 or more in federal funding within the

state fiscal year must have an audit made in accordance with OMB

Circular A-133, as amended. This rule is effective for all fiscal years

that began on or after July 1, 1996.

Previously, states that received $100,000 or more in federal

financial assistance in any fiscal year were required to have a single

audit for that year. States and subrecipients receiving at least

$25,000, but less than $100,000, in a fiscal year had the option of

performing a single audit or an audit of the federal program, and state

and local governments receiving less than $25,000 in any fiscal year

were exempt from audit requirements. This modification is contained in

the ``Financial Requirements'' section of the Final Program Guidelines.

[[Page 7053]]

Guidelines for Crime Victim Compensation Grants

I. 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 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.

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 Final Program Guidelines.

II. 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 FFY 1993 deposits. This Act also eliminated

the need for periodic reauthorization of VOCA and the Fund. Thus, under

current legislation, the Fund will continue to receive deposits.

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 $3,000,000 deposited in the Fund in each fiscal year

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

fiscal year:

a. 85% 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% 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 grants;

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.

B. Availability of Funds

1. VOCA Victim Compensation Grant Formula.

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 cannot 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.

2. Reserve Fund.

As the result of the provisions in the Antiterrorism Act amending

VOCA, the OVC Director is authorized to retain funds in a reserve fund,

up to $50 million. The Director may utilize the reserve funds in order

to:

a. Award supplemental grants to assist victims of terrorist acts or

mass violence outside or within the U.S. The OVC Director may grant

reserve funds for such purposes to the following entities:

(1) States for providing compensation and assistance to their state

residents, who, while inside their state borders or outside of the

borders of the United States, become victims of a terrorist act or mass

violence. The beneficiaries, however, cannot be persons who are already

eligible for compensation under The Omnibus Diplomatic Security and

Antiterrorism Act of 1986.

Individuals covered under the Omnibus Diplomatic Security and

Antiterrorism Act of 1986 include persons who are taken captive because

of their relationship with the U.S. Government as a member of the U.S.

Civil Service, as well as other U.S. citizens, nationals, or resident

aliens who are taken captive while rendering service to the U.S.

similar to that of civil servants. Dependent family members of such

persons also are covered under the Omnibus Diplomatic Security Act.

(2) States' eligible crime victim compensation and assistance

programs for providing emergency relief, including crisis response

efforts, training, and technical assistance for the benefit of victims

of terrorist acts or mass violence occurring within the U.S.

(3) U.S. Attorney's Offices for use in coordination with state

victim compensation and assistance efforts in providing emergency

relief to victims of terrorist acts or mass violence occurring within

the U.S.

b. Offset Fluctuations in Fund. The OVC director may also use the

reserve fund to offset fluctuations in Fund deposits for state

compensation and assistance programs in years in which the Fund

decreases and additional monies are needed to stabilize programs.

3. Grant Period. Federal legislation passed in 1996 also makes

victim compensation grant funds available for expenditure throughout

the FFY of award as well as in the next three fiscal years. 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.

4. Grant Deobligations. Funds not obligated by the end of the grant

period, up to a total of $500,000, will be returned to the Fund. Once

any portion of a state's grant is returned to the Fund, the funds must

be redistributed according to the rules established by VOCA and the

Final Program Guidelines, so states are encouraged to monitor closely

the expenditure of VOCA funds throughout the grant period.

C. Administrative Costs

1. Purpose of Administrative Cost Allowance. Since FFY 1995, the

VOCA has allowed up to five percent of 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

[[Page 7054]]

allowable five percent for program 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 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 such as

training and public outreach regarding eligiblity requirements and

available benefits, 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 are 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.

2. Allowable Costs. 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; audit costs; 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.

The following activities impact the delivery and quality of

compensation services to crime victims throughout the state and, thus,

can be supported by administrative funds:

a. Improving coordination efforts on behalf of crime victims with

other OJP Offices and Bureaus and with federal, state, and local

agencies and organizations;

b. Providing training on crime victim compensation program issues

such as aplication and eligibility requirements and range of

compensable expenses, to state, public, and nonprofit organizations

that serve or assist crime victims such as law enforcement officials,

victim witness coordinators, corrections personnel, social service

workers, victim service providers, and mental health and medical

professionals;

c. Purchasing, printing, and/or developing applications, brochures

and other relevant publications such as training manuals which describe

the compensation application process, eligiblity criteria, and range of

beneifts, available for crime victims;

d. Developing protocols, policies, and procedures that promote

coordination of victim compensation and victim assistance services and

improve the ways crime victims are treated and served; and

3. Salary Costs. Staff supported by 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.

4. Requirement to Notify OVC of Use of Administrative Funds. Those

states that elect to utilize administrative funds under the VOCA

compensation grant, are required to include with their annual

application the following information:

a. The amount of the total grant that will be used for program

administration;

b. An itemization of the state's projected expenditures and a

general description of the activities that will be supported;

c. How these activities will improve the administration of the VOCA

program and/or improve services to crime victims.

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. Failure to notify OVC of

modifications will prevent the state from meeting its obligation to

reconcile its State-wide Report with its Final Financial Status Report.

D. Application Process

1. Application for Federal Assistance. 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 submit the following information:

a. A description of their arrangements for complying with the audit

provisions of Circular A-133, as amended.

b. Certifications Regarding Lobbying, Debarment, Suspension, and

Other Responsibility Matters; Drug-Free Workplace Requirements; Civil

Rights

[[Page 7055]]

Compliance, and any other certifications required by OJP and OVC.

Additionally, states must complete a disclosure form specifying any

lobbying activities that are conducted.

c. 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.

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

nondiscrimination requirements;

e. 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);

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

responsibility for ensuring that all applicable civil rights

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

matters with OCR;

g. 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 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.''

h. A copy of the state statute authorizing the state's crime victim

compensation program.

2. Enrollment in Automated Clearing House. In addition to yearly

submission of the grant application and the above-mentioned information

and assurances, states must be enrolled in the automated clearing house

(ACH) so that the U.S. Department of Treasury can electronically

transfer the VOCA victim compensation grant directly to the grantee's

banking institution. States that are new award recipients, or those

that have previously received funds in the form of a paper check from

the U.S. Treasury, must enroll in the Treasury Department's ACH Vendor

Express program before requesting any federal funds. This means that

VOCA grantees can no longer receive drawdowns against their awards via

paper check mailed from the Treasury. Grant recipients must enroll in

ACH for Treasury to electronically transfer drawdowns directly to their

banking institutions. States that are currently on the Letter of Credit

Electrocic Certification System (LOCES) will be automatically enrolled

in the ACH program. Enrollment in ACH need only be completed once.

III. 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. State Operated Compensation Program for Victims. The program

must be operated by a state and offer compensation to victims and

survivors of victims of ``compensable crimes,'' including crimes

involving terrorism, drunk driving, and domestic violence. The

Amendments to VOCA contained in the Antiterrorism Act of 1996 gives

states until April 24, 1997 (FFY 1998 grant application) to come into

compliance with the new eligibility conditions for receiving federal

VOCA compensation grants.

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. Means Testing. The Antiterrorism Act prohibits any federal,

state, or local government program that uses federal funds from

including victim compensation benefits when determining income

eligibility for an applicant, if the applicant needs such assistance

(medical or otherwise), in full or in part, because of the commission

of a crime against the applicant.

3. Prohibition Against Awarding Compensation to Those Delinquent in

Paying Federal Criminal Fines. The Antiterrorism Act prohibits states

from awarding victim compensation benefits to any person convicted of a

federal crime who is delinquent in paying a fine, monetary penalty, or

restitution imposed for the offense.

This provision, however, will not become effective until the U.S.

Attorney General and the Director of the Administrative Office of the

U.S. Courts issue a written determination that the entities

administering federally-funded victim compensation programs have access

to accurate and efficient criminal debt payment tracking information.

As of this date, no such determination has been made, and states are

under no obligation to investigate or make determinations on whether a

victim owes a federal criminal debt, before awarding compensation

benefits.

4. Victim Cooperation with Law Enforcement. 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 victimization.

Although state crime victim compensation programs maintain the

authority and discretion to establish their own standards for

``reasonable cooperation,'' OVC encourages state compensation program

staff to meet with victims and advocates to carefully review whether

state statutes and state program guidelines and policies are responsive

to the needs of crime victims and to determine possible barriers that

might impede a victim's cooperation with law enforcement.

Possible impediments include compelling health or safety reasons,

such as apprehension regarding personal safety, fear of retaliation,

and intimidation by the offender or others.

[[Page 7056]]

For example, some victims may be reluctant to cooperate fully with law

enforcement after receiving threats of violence or even death against

themselves and their children from the offender.

Age, psychological, cultural, or linguistic barriers may also

influence the extent of victim cooperation with law enforcement. For

instance, there may be special barriers deterring a young child or

senior citizen from complying fully with law enforcement. Embarrassment

and shame may delay the reporting of sexual assault, and cultural and

language differences may diminish a victim's access to the criminal

justice system.

In setting the standard for victim cooperation with law

enforcement, the state program should determine how much weight to give

to these considerations.

VOCA's ``cooperation with the reasonable requests of law

enforcement'' requirement may be fulfilled by utilizing the following

criteria or any other criteria the state believes is necessary to

encourage victim cooperation with law enforcement. For example, a state

may:

a. Require a victim to report the crime to a law enforcement

agency;

b. Require a victim to report the crime to an appropriate

governmental agency, such as child and/or adult protective services,

family court, or juvenile court; or

c. Accept proof of the completion of a medical evidentiary

examination, such as medical reports, x-rays, medical photographs, as

well as other clinical assessments as evidence of cooperation with law

enforcement in cases involving sexual assault or abuse.

5. Nonsupplantation. 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.

6. Compensation for Residents Victimized Outside Their Own State.

The state must provide compensation to residents of the state who are

victims of crimes occurring outside the state, if the crimes would be

compensable had they occurred inside that state; and the crimes

occurred in a state not having an eligible crime victim compensation

program, or occurred outside the U.S. (If the compensable crime is

terrorism as defined in Section 2331 of title 18 of the U.S. Code). The

state must make these awards according to the same criteria used to

make awards to those who are victimized while in the state.

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

are victimized in a state which does not have an eligible crime victims

compensation 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.

7. Compensation for Non-residents of a State. The state must make

compensation awards to victims who are non-residents of the state

according to the same criteria used to make awards to victims who are

residents of such state.

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 resident.

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 will not

suffice to meet these criteria.

8. Victims of Federal Crime. 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.

9. Unjust Enrichment. 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 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. However, as with other crimes, 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 judgments within a reasonable period of time or when the

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

payments.

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

[[Page 7057]]

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.

10. Other Information Requested by the OVC Director. The state must

provide such other information and assurances as the Director of OVC

may reasonably require.

11. Payor of Last Resort. When a victim is eligible to receive

benefits from a federal program or federally financed state or local

program, such as Medicaid, the state compensation program shall not pay

the costs that the federal or federally financed programs covers.

Additionally, the federal or federally financed program shall make its

payments without regard to the existence of the crime victim

compensation program. The compensation program is the payor of last

resort with regard to federal or federally financed programs.

OVC encourages state grantees to coordinate their VOCA assistance

and compensation activities to ensure a continuum of services for crime

victims. Coordination may include activities such as: planning

meetings; training activities for direct service providers on the

general parameters of the state compensation agency's program (e.g.,

eligibility criteria, completion of claims, and time frames for

receiving compensation); providing information on VOCA-funded victim

assistance services within the state; and developing joint guidance,

where applicable, on third-party payments to VOCA assistance

organizations.

OVC also requires state grantees to coordinate their activities

with the Victim/Witness Coordinator staff within U.S. Attorney Offices

to ensure that the Coordinators are aware of available resources for

victims of federal crime.

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 unspent funds carried over from prior years. All state

funds which are available during the Federal Fiscal Year should be

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

including all other sources, including carried over 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 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. Salary costs for personnel directly involved in

recovery efforts, which are directly attributable to the recovery of

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

the amount of income received from such reimbursement. Expenses 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. Source of Payments to Crime Victims. There is no financial

requirement that state compensation programs identify the source of

individual payments to crime victims as either federal or state

dollars, nor is there any requirement that restitution recoveries or

other refunds be tracked to federal or state dollars paid out to the

victim.

[[Page 7058]]

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. Over Certification. 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. Under Certification. 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

1. Annual Performance Report. States receiving VOCA crime victims

compensation grant funds are required to submit an Annual Performance

Report that is provided by OVC. The Report requests specific

information about claims for compensation, such as types of crimes

compensated, including terrorism, drunk driving and domestic violence,

disposition of claims, payments for compensable expenses, and use of

administrative and training funds. 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

1407(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).

IV. 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

``OJP Financial Guide'' 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 their 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

State compensation programs that expend $300,000 or more in federal

financial assistance within the state's fiscal year are required to

have an audit in accordance with OMB Circular A-133, as amended. State

and local governments expending less than $300,000 in their fiscal year

are exempt from audit requirements. This rule is effective for all

fiscal years that began on or after July 1, 1996.

B. Audit Costs

Although under OMB Circular A-133 audit costs are generally

allowable charges under federal grants, audit costs incurred at the

grantee level are determined to be an administrative expense and may be

paid with the allowable five percent for administration. Any of the

VOCA grant monies used for administrative purposes cannot be included

in the state-certified payout.

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 when no obligations or expenditures were

incurred during the reporting period. 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 120 days after the end of the VOCA grant, no later

than January 31.

D. Termination of Advance Funding

If the state grantee receiving cash advances by direct Treasury

deposit demonstrates an unwillingness or inability to establish

procedures that will minimize the time elapsing between cash advances

and disbursements, 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 to the state by the ACH Vendor Express

method to reimburse the grantee for actual cash disbursements. It is

essential that the grantee organization maintain a minimum of cash on

hand and that drawdowns of cash are made only when necessary for

disbursements.

[[Page 7059]]

V. 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 conduct periodic reviews of the

financial policies and procedures and records of VOCA state grantees.

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

OVC conducts on-site monitoring 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.

VI. Suspension and Termination of Funding

If, after notice to the grantee, OVC finds that a state has failed

to comply substantially with VOCA, the OJP Financial Guide (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. Under the procedures of 28 CFR Part

18 (7-1-96-Edition), states may request a hearing on the justification

for the suspension and/or termination of VOCA funds.

Dated: February 10, 1997.

Marti Speights,

Director of Special Projects Division, Office for Victims of Crime,

Office for Justice Programs.

[FR Doc. 97-3715 Filed 2-13-97; 8:45 am]

BILLING CODE 4410-18-P