Victims of Crime Act Victim Assistance Grant Program

DEPARTMENT OF JUSTICE

Office of Justice Programs

[OJP (OVC) No. 1113]

RIN 1121-ZA60

Victims of Crime Act Victim Assistance Grant Program

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

Justice.

ACTION: Proposed 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

Proposed Program Guidelines to implement the victim assistance 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).

DATES: These guidelines are effective from October 1, 1996 (Federal

Fiscal Year 1997 VOCA grant program), until further revised by OVC. The

comments period on these guidelines closes on March 4, 1997.

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

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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: The comment period for the following

Proposed Guidelines for the Victim of Crime Act (VOCA) Victim

Assistance Grant Program will end 14 days after the date of this

publication. The Office for Victims of Crime (OVC) is expediting the

comment period for two reasons. First, a longer comment period will

impose a burden on many states, who having received their largest-ever

VOCA grant awards, are now reluctant to begin distributing the funds to

victim assistance agencies without formal direction, in the form of

Program Guidelines, from OVC. Second, OVC began the process of

soliciting suggestions for modifying the current Final Guidelines

several months ago. In the interest of reaching a more diverse audience

and making the review and comment process more convenient for victim

service advocates and providers, in late November of 1996, OVC mailed

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

assistance and victim compensation program administrators, as well as

to the representatives of approximately 20 national crime victim

advocacy organizations. In early December, the Proposed Guidelines were

posted on the Internet for review and comment by all interested

parties. OVC already has received over thirty recommendations,

questions, and comments from VOCA administrators and other victim

advocates via telephone, mail, fax, and e-mail.

VOCA authorizes 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 assistance grant

program as authorized in section 1404 of VOCA, Public Law 98-473, as

amended, codified at 42 U.S.C. 10603, and contain information on the

following: Summary of the Comments to the Proposed Final Program

Guidelines; Background; Allocation of VOCA Victim Assistance Funds;

VOCA Victim Assistance 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 since the inception of the grant program in 1986, and

are in accordance with VOCA. These Proposed 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 for Management and

Budget (OMB), has determined that these Guidelines do not represent a

``significant regulatory action'' for the purposes of Executive Order

12866 and, accordingly, these Program Guidelines were not reviewed by

OMB.

In addition, these Program 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, codified at 5 U.S.C. 601,

et seq.

The program reporting requirements described in the Program

Requirements section have been approved by 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 Program Guidelines

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

amendments to VOCA, and modifications of applicable federal

regulations, substantive changes were made to five sections of the

Guidelines, including: The Availability of Funds, the Application

Process, the Program Requirements, the Program Reporting Requirements,

and the Financial Requirements. These changes are summarized in the

paragraphs below, and incorporated into the complete text of the

Proposed Program Guidelines for Victim Assistance Grants. The 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.

A. Comments From the Field

Over time, OVC received comments from VOCA state administrators,

victim service providers, representatives of national victim

organizations, and other victim advocates regarding the current Program

Guidelines, issued in October 1995. In total, over 15 different

recommendations, questions, and comments were received. These comments

were helpful in formulating the revisions constituting the subject

Proposed Victim Assistance Guidelines.

1. Definition of Elder Abuse. Under Section IV. Program

Requirements, Part A. Grantee Eligibility Requirements--the definition

of ``elder abuse'' has been modified, so that it now focuses on

describing the offense, rather than on characterizing the victim.

Hence, the definition, ``abuse of vulnerable adults,'' has been changed

to ``the mistreatment of older persons through physical, sexual, or

psychological violence; neglect; or economic exploitation and fraud.''

2. Identifying Underserved Victims of Crime. Under Section IV.

Program Requirements, Part A. Grantee Eligibility Requirements, the

language of the Proposed Guidelines has been modified to encourage

states to identify gaps in available services, not just by the types of

crimes committed, but also by specific demographic profiles such as

those victims living in rural or remote areas, or in inner cities, or

by the specific characteristics of the victim population needing

services, such as disabled or elderly victims.

3. New Programs. There was confusion about OVC's intention

regarding the funding of new crime victim programs. Hence, language has

been added to the Proposed Guidelines clarifying that new programs that

have not yet demonstrated a record of providing services may be

eligible to receive VOCA funding if they can demonstrate financial

support from non-federal sources.

4. Unfunded Mandates. Recently, many state legislatures have passed

laws establishing important new rights for crime victims. OVC wishes to

clarify that VOCA funds may be used for the purpose of implementing

these laws. Therefore, restrictive language from the previous

Guidelines has been eliminated. Please note that VOCA crime victim

assistance funds still may not be used to supplant state and local

funds that would otherwise be available for crime victim services.

5. State Grantees as Subrecipients. Under Section IV. Program

Requirements, Part C. Eligible Subrecipient Organizations, the Program

Guidelines have been modified with regard to subgrants to state

grantees. Since the intention of the VOCA grant program is to support

and enhance the crime victim services provided by community agencies,

state grantees that meet the definition of an eligible subrecipient

organization may not award themselves more than 10 percent of their

annual VOCA award.

6. Emergency Legal Assistance. Under Section IV, Program

Requirements, Part D. Services, Activities, and Costs at the

Subrecipient Level, the Proposed Guidelines have been modified to allow

subgrantees discretion in providing

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victims of domestic violence with legal assistance such as child

custody and visitation proceedings ``when such actions are directly

connected to family violence cases and pertain to the health and safety

of the victim.'' The allowable ``Contracts for Professional Services''

section also has been modified to include assistance with emergency

custody and visitation proceedings.

7. Advanced Technologies. In the Proposed Guidelines, OVC offers

the states clarification and further guidance on the use of VOCA funds

for advanced technologies such as computers and victim notification

systems.

8. Electronic Submission of Subgrant Award Reports. In the interest

of meeting OVC's mandate to collect and maintain accurate and timely

information on the disbursal of VOCA funds, state grantees will now be

required to transmit their Subgrant Award Report information to OVC via

the automated subgrant dial-in system. Beginning with the Federal

Fiscal Year (FFY) 1997 VOCA grant award, OVC will no longer accept

manual submission of the Subgrant Award Reports. By utilizing the

subgrant dial-in 1-800 number, grantees can access the system without

incurring a long distance telephone charge. States and territories

outside of the continental U.S. are exempt from the requirement to use

the subdial system, but these grantees must complete and submit the

Subgrant Award Report form, OJP 7390/2A, for each VOCA subrecipient.

B. Legislative Changes

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

L. 104-132).

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

104-132) (hereafter, ``The Antiterrorism Act''), was signed into law on

April 24, 1996. This legislation contained a number of victim related

provisions that amended VOCA, including four provisions concerning the

``Availability of (VOCA victim assistance) Grant Funds.''

a. The Antiterrorism Act increases the base amount for victim

assistance grants from $200,000 to $500,000. The territories of

Northern Mariana Islands, Guam, and American Samoa will continue to

receive a base amount of $200,000, with the Republic of Palau's share

governed by the Compact of Free Association between the U.S. and the

Republic of Palau.

b. OVC Reserve Fund. The Antiterrorism Act authorizes the OVC

Director to establish a reserve fund, up to $50 million. 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 U.S., 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 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

Act.

(2) Eligible state 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.

(3) U.S. Attorneys' 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) 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.

c. 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 Proposed Program Guidelines. States are encouraged to monitor

closely the expenditure of VOCA funds throughout the grant period to

avoid returning grant monies to OVC and/or the Treasury.

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

victim assistance 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.)

2. Omnibus Consolidated Appropriations Act of 1997. The Omnibus

Consolidated Appropriations Act of 1997 (Pub. L. 104-208) was passed by

Congress and signed into law by President Clinton in September 30,

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

Proposed 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 Proposed Program Guidelines.

C. Changes in Applicable Federal Regulations

1. 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 Proposed

Program Guidelines have been modified to require that, effective July

26, 1996, all federal payments to state VOCA victim assistance and

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

(through OJP) 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. Enrollment forms will be included in the award

packet. Enrollment in ACH need only be completed once. This

modification is included in the ``Application Process'' section of the

Proposed Program Guidelines.

2. Higher Audit Threshold. In response to suggestions made by many

recipients of federal grant awards, including VOCA grant recipients,

OMB Circular A-133 is being revised. Until the revisions are final,

state and local government agencies that receive $100,000 or more in

federal funds during their state fiscal year are required to submit an

organization-wide financial

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and compliance audit report. Recipients of $25,000 to $100,000 in

federal funds are required to submit a program-or organization-wide

audit report as directed by the granting agency. Recipients receiving

less than $25,000 in federal funds are not required to submit a

program-or organization-wide financial and compliance audit report for

that year. Nonprofit organizations and institutions of higher education

that expend $300,000 or more in federal funds per year shall have an

organization-wide financial and compliance audit. Grantees must submit

audit reports within 13 months after their state fiscal year ends.

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 Proposed Program

Guidelines.

Guidelines for Crime Victim Assistance Grants

I. Background

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

Treasury and authorized the Fund to receive deposits of fines and

penalties levied against criminals convicted of federal crimes. This

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

activities authorized by VOCA.

OVC makes annual VOCA crime victim assistance grants from the Fund

to states. The primary purpose of these grants is to support the

provision of services to victims of violent crime throughout the

Nation. For the purpose of these Program Guidelines, services are

defined as those efforts that (1) respond to the emotional and physical

needs of crime victims; (2) assist primary and secondary victims of

crime to stabilize their lives after a victimization; (3) assist

victims to understand and participate in the criminal justice system;

and (4) provide victims of crime with a measure of safety such as

boarding-up broken windows and replacing or repairing locks.

For the purpose of the VOCA crime victim assistance grant program,

a crime victim is a person who has suffered physical, sexual, or

emotional harm as a result of the commission of a crime.

VOCA gives latitude to state grantees to determine how VOCA victim

assistance grant funds will best be used within each state. However,

each state grantee must abide by the minimal requirements outlined in

VOCA and these Program Guidelines.

II. Allocation of VOCA Victim Assistance Funds

A. Distribution of the Crime Victims 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 during the preceding Federal Fiscal Year (October 1 through

September 30).

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.

Pursuant to section 1402 (d) of VOCA, deposits into the Fund will

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 the U.S. Courts for

administrative costs to carry out the functions of the judicial branch

under sections 3611 and 3612 of Title 18 U.S. Code.

2. Of 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. Of the remaining amount deposited in the Fund in a particular

fiscal year,

a. 48.5% shall be available for victim compensation grants,

b. 48.5% shall be available for victim assistance grants; and

c. 3% shall be available for demonstration projects and training

and technical assistance services to eligible crime victim assistance

programs and for the financial support of services to victims of

federal crime by eligible crime victim assistance programs.

B. Availability of Funds

1. VOCA Victim Assistance Grant Formula. All states, the District

of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands,

Guam, American Samoa, Northern Mariana Islands, and Palau (hereinafter

referred to as ``states'') are eligible to apply for, and receive, VOCA

victim assistance grants. See section 1404(d)(1) of VOCA, codified at

42 U.S.C. 10603(d)(1).

2. Reserve Fund. As the result of 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 outside of the U.S. 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 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) Eligible state crime victim compensation and assistance

programs for providing emergency relief, including crisis assistance,

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 relief to

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

b. Offset Fluctuations in Fund. The Director of OVC 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

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assistance 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. For example, grants awarded in

December, 1996 (FFY 1997) are available for obligation beginning

October 1, 1996 through September 30, 2000.

4. Grant Deobligations. VOCA grant funds not obligated at the end

of the award period will be returned to the Crime Victims Fund. In a

given fiscal year, no more than $500,000 of the remaining unobligated

funds can be returned to the Fund. Amounts in excess of $500,000 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

rules established by VOCA and the Proposed Program Guidelines, so

states are encouraged to monitor closely the expenditure of VOCA funds

throughout the grant period to ensure that no funds are returned.

C. Allocation of Funds to States

From the Fund deposits available for victim assistance grants, each

state grantee receives a base amount of $500,000, except for the

territories of Northern Mariana Islands, Guam, and American Samoa,

which are eligible to receive a base amount of $200,000. The Republic

of Palau's share is governed by the Compact of Free Association between

the U.S. and the Republic of Palau. The remaining Fund deposits are

distributed to each state, based upon the state's population in

relation to all other states, as determined by current census data.

D. Allocation of Funds Within the States

The Governor of each state designates the state agency that will

administer the VOCA victim assistance grant program. The designated

agency establishes policies and procedures, which must meet the minimum

requirements of VOCA and the Program Guidelines.

VOCA funds granted to the states are to be used by eligible public

and private nonprofit organizations to provide direct services to crime

victims. States have sole discretion for determining which

organizations will receive funds, and in what amounts, as long as the

recipients meet the requirements of VOCA and the Program Guidelines.

State grantees are encouraged to develop a VOCA program funding

strategy, which should consider the following: The range of victim

services throughout the state and within communities; the unmet needs

of crime victims; the demographic profile of crime victims; the

coordinated, cooperative response of community organizations in

organizing services for crime victims; the availability of services to

crime victims throughout the criminal justice process; and the extent

to which other sources of funding are available for services.

State grantees are encouraged to expand into new service areas as

needs and demographics of crime change within the state. For example,

when professional training, counseling, and de-briefings are made

available to victim assistance providers, dispatchers, and law

enforcement officers in rural-remote areas, services to victims in

these areas improve dramatically. Victim services in rural-remote areas

can also be improved by using VOCA funds to support electronic

networking through computers, police radios, and cellular phones.

Many state grantees use VOCA funds to stabilize victim services by

continuously funding selected organizations. Some state grantees end

funding to organizations after several years in order to fund new

organizations. Other state grantees limit the number of years an

organization may receive VOCA funds. These practices are within the

grantee's discretion and are supported by OVC, when they serve the best

interests of crime victims within the state.

State grantees may award VOCA funds to organizations that are

physically located in an adjacent state, when it is an efficient and

cost-effective mechanism available for providing services to victims

who reside in the awarding state. When adjacent state awards are made,

the amount of the award must be proportional to the number of victims

to be served by the adjacent-state organization. OVC recommends that

grantees enter into an interstate agreement with the adjacent state to

address monitoring of the VOCA subrecipient, auditing federal funds,

managing noncompliance issues, and reporting requirements. States must

notify OVC of each VOCA award made to an organization in another state.

III. VOCA Victim Assistance Application Process

A. State Grantee Application Process

Each year, OVC issues a Program Instruction and Application Kit to

each designated state agency. The Application Kit contains the

necessary forms and information required to apply for VOCA grant funds,

including the Application for Federal Assistance, Standard Form 424.

The amount for which each state may apply is included in the

Application Kit. At the time of application, state grantees are not

required to provide specific information regarding the subrecipients

that will receive VOCA victim assistance funds.

Completed applications must be submitted on or before the stated

deadline, as determined by OVC.

In addition to the Application for Federal Assistance, state

grantees shall submit the following information:

1. Single Audit Act Information, specifically, the name and address

of the designated Cognizant federal Agency, the federal agency assigned

by OMB, and the dates of the state fiscal year.

2. Certifications Regarding Lobbying, Debarment, Suspension, and

Other Responsibility Matters; Drug-Free Workplace requirements; Civil

Rights Compliance, and any other certifications required by OJP and

OVC. In addition, states must complete a disclosure form specifying any

lobbying activities that are conducted.

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

nondiscrimination requirements.

4. An assurance that in the event a federal or state administrative

agency makes a finding of discrimination after a due process hearing,

on the grounds of race, color, religion, origin, sex, or disability

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

OJP, Office for Civil Rights (OCR).

5. 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.

6. Enrollment in Automated Clearing House (ACH). 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. States that are currently on the Letter of Credit

Electronic Certification System (LOCES) will be automatically enrolled

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

7. Administrative Cost Provision Notification. States must indicate

in their application materials whether they intend to use the

administrative cost provision. More is explained about this issue in

the following section.

B. Administrative Cost Provision for State Grantees

Each state grantee may retain up to, but not more than, 5% of each

year's grant for administering the VOCA victim assistance grant at the

state

[[Page 7261]]

grantee level with the remaining portion being used exclusively for

direct services to crime victims or to train direct service providers

in accordance with these Program Guidelines, as authorized in section

1404(b)(3), codified at 42 U.S.C. 10603 (b)(3). This option is

available to the state grantee and does not apply to VOCA

subrecipients. State grantees are not required to match the portion of

the grant that is used for administrative purposes. The state

administrative agency may charge any federally approved indirect cost

rate to this grant. However, any direct costs requested must be paid

from the 5 percent administrative funds. An indirect cost rate and cost

allocation plan must be on file or submitted and approved by the U.S.

Department of Justice prior to budgeting funds for such costs.

This administrative cost provision is to be used by the state

grantee to expand, enhance, and/or improve the state's previous level

of effort in administering the VOCA victim assistance grant program at

the state level and to support activities and costs that impact the

delivery and quality of services to crime victims throughout the state.

Thus, grantees will be required to certify that VOCA administrative

funds will not be used to supplant state funds or to cover indirect

costs.

State grantees will not be in violation of the nonsupplantation

clause if there is a decrease in the state's previous financial

commitment towards the administration of the VOCA grant programs in the

following situations: (1) A serious loss of revenue at the state level,

resulting in across-the-board budget restrictions. (2) A decrease in

the number of ``state-supported'' staff positions used to meet the

state's ``maintenance of effort'' in administering the VOCA grant

programs.

States are required to notify OVC if there is a decrease in the

amount of its previous financial commitment to the cost of

administering the VOCA program.

State grantees are not required to match the portion of the grant

that is used for administrative purposes.

1. The following are examples of activities that are directly

related to managing the VOCA grant and can be supported with

administrative funds:

a. Pay salaries and benefits for staff and consultant fees to

administer and manage the financial and programmatic aspects of VOCA;

b. Attend OVC-sponsored and other relevant technical assistance

meetings that address issues and concerns to state administration of

victims' programs;

c. Monitor VOCA Victim Assistance subrecipients, Victim Assistance

in Indian Country subrecipients, and potential subrecipients, provide

technical assistance, and/or evaluation and assessment of program

activities;

d. Purchase equipment for the state grantee such as computers,

software, fax machines, copying machines;

e. Train VOCA direct service providers;

f. Purchase memberships in crime victims organizations and victim-

related materials such as curricula, literature, and protocols; and

g. Pay for program audit costs.

2. The following activities impact the delivery and quality of

services to crime victims throughout the state and, thus, can be

supported by administrative funds:

a. Develop strategic plans on a state and/or regional basis,

conduct surveys and needs assessments, promote innovative approaches to

serving crime victims such as through the use of technology;

b. Improve coordination efforts on behalf of crime victims with

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

agencies and organizations;

c. Provide training on crime victim issues to state, public, and

nonprofit organizations that serve or assist crime victims such as law

enforcement officials, prosecutors, judges, corrections personnel,

social service workers, child and youth service providers, and mental

health and medical professionals;

d. Purchase, print, and/or develop publications such as training

manuals for service providers, victim services directories, and

brochures;

e. Coordinate and develop protocols, policies, and procedures that

promote systemic change in the ways crime victims are treated and

served; and

f. Train managers of victim service agencies.

State grantees are required to notify OVC of the decision to use

administrative funds prior to charging or incurring any costs against

this provision. State grantees may notify OVC when the decision is made

to exercise this option or at the time the Application for Federal

Assistance is submitted.

Each state grantee that chooses to use administrative funds is

required to submit a statement to OVC describing:

(1) The amount of the total grant that will be used as

administrative funds;

(2) An itemization of the state grantee's projected expenditures

and the types of activities that will be supported; and

(3) 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 with 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.

Administrative grant funds can only support that portion of a staff

person's time devoted to the VOCA assistance program. If the staff

person has other functions, the proportion of their time spent on the

VOCA assistance program must be documented using regular time and

attendance records. The documentation must provide a clear audit trail

for the expenditure of grant funds.

State grantees may choose to award administrative funds to a

``conduit'' organization that assists in selecting qualified

subrecipients and/or reduces the state grantee's administrative burden

in implementing the grant program. However, the use of a ``conduit''

organization does not relieve the state grantee from ultimate

programmatic and financial responsibilities.

C. Use of Funds for Training

State grantees have the option of retaining a portion of their VOCA

victim assistance grant for conducting state-wide and/or regional

trainings of victim services staff. The maximum amount permitted for

this purpose is $5,000 or one percent of the state's grant, whichever

is greater. State grantees that choose to sponsor statewide or regional

trainings are not precluded from awarding VOCA funds to subrecipients

for other types of staff development.

Statewide or regional training supported with training funds should

target a diverse audience of victim service providers and allied

professionals, and should provide opportunities to consider issues

related to types of crime, gaps in services, coordination of services,

and legislative mandates.

Each training activity must occur within the grant period, and all

training costs must be obligated prior to the end of the grant period.

VOCA grant funds cannot be used to supplant the cost of existing state

administrative staff or related state training efforts.

[[Page 7262]]

Specific criteria for applying for training funds will be given in

each year's Application Kit. This criteria may include addressing the

goals, the needs of the service providers, how funds will be used, and

how any program income that is generated will be used.

The VOCA funds used for training by the state grantee must be

matched at 20 percent, cash or in-kind, and the source of the match

must be described.

IV. Program Requirements

A. State Grantee Eligibility Requirements

When applying for the VOCA victim assistance grant, state grantees

are required to give assurances that the following conditions or

requirements will be met:

1. Must Be an Eligible Organization. Only eligible organizations

will receive VOCA funds and these funds will be used only for services

to victims of crime, except those funds that the state grantee uses for

training victim service providers and/or administrative purposes, as

authorized by section 1404(b) codified at 42 U.S.C. 10603(b). See

section E. Services, Activities, and Costs at the Subrecipient Level

for examples of direct services to crime victims.

2. Nonsupplantation. VOCA crime victim assistance grant funds will

be used to enhance or expand services and will not be used to supplant

state and local funds that would otherwise be available for crime

victim services. See section 1404(a)(2)(c), codified at 42 U.S.C.

10603(a)(2)(C). This supplantation clause applies to state and local

public agencies only.

3. Priority Areas. Priority shall be given to victims of sexual

assault, spousal abuse, and child abuse. Thus, a minimum of 10% of each

FFY's grant (30% total) will be allocated to each of these categories

of crime victims. This grantee requirement does not apply to VOCA

subrecipients.

Each state grantee must meet this requirement, unless it can

demonstrate to OVC that: (1) A ``priority'' category is currently

receiving significant amounts of financial assistance from the state or

other funding sources; (2) a smaller amount of financial assistance, or

no assistance, is needed from the VOCA victim assistance grant program;

and (3) crime rates for a ``priority'' category have diminished.

4. ``Previously Underserved'' Priority Areas. An additional 10% of

each VOCA grant will be allocated to victims of violent crime (other

than ``priority'' category victims) who were ``previously under

served.'' These under served victims of either adult or juvenile

offenders may include, but are not limited to, victims of federal

crimes; survivors of homicide victims; or victims of assault, robbery,

gang violence, hate and bias crimes, intoxicated drivers, bank robbery,

and elder abuse.

For the purposes of this program, a victim of federal crime is a

victim of an offense that violates a federal criminal statute or

regulation. Federal crimes also include crimes that occur on an area

where the federal government has jurisdiction, such as Indian

reservations and military installations.

For the purposes of this program, elder abuse is defined as the

mistreatment of older persons through physical, sexual, psychological

or physical violence; neglect; or economic exploitation and fraud.

To meet the under served requirement, grantees must identify crime

victims by type of crime. States are encouraged, however, to identify

gaps in available services not just by types of crimes committed, but

also by specific demographic profiles, such as those victims living in

rural areas, remote areas, or inner cities, or by the specific

characteristics of the victim population needing services, such as

disabled, or elderly victims. Each state grantee has latitude for

determining the method for identifying ``previously under served''

crime victims, which may include public hearings, needs assessments,

task forces, and meetings with state-wide victim services agencies.

Each state grantee must meet this requirement, unless it can

justify to OVC that (a) services to these victims of violent crime are

receiving significant amounts of financial assistance from the state or

other funding sources; (b) a smaller amount of financial assistance, or

no assistance, is needed from the VOCA victim assistance grant program;

and (c) crime rates for these victims of violent crime have diminished.

5. Financial Record Keeping and Program Monitoring. Appropriate

accounting, auditing, and monitoring procedures will be used at the

grantee and subrecipient levels so that records are maintained to

ensure fiscal control, proper management, and efficient disbursement of

the VOCA victim assistance funds, in accordance with the OJP Financial

Guide, effective edition.

6. Compliance with Federal Laws. Compliance with all federal laws

and regulations applicable to federal assistance programs and with the

provisions of Title 28 of the Code of Federal Regulations (CFR)

applicable to grants.

7. Compliance with VOCA. Compliance by the state grantee and

subrecipients with the applicable provisions of VOCA and the Proposed

Program Guidelines.

8. Required Reports Submitted to OVC. Programmatic and financial

reports shall be submitted. (See Program Requirements and Financial

Requirements for reporting requirements and timelines.)

9. 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, age, 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.

10. Obligation to Report Discrimination Finding. In the event a

federal or state court or administrative agency makes a finding of

discrimination on the grounds of race, religion, national origin, sex,

or disability against a recipient of VOCA victim assistance funds,

state grantees are required to forward a copy of the finding to the

Office for Civil Rights (OCR) for OJP.

11. Obligation to Report Other Allegations/Findings. In the event

of a formal allegation or a finding of fraud, waste, and/or abuse of

VOCA funds, state grantees are required to immediately notify OVC of

said finding. State grantees are also obliged to apprise OVC of the

status of any on-going investigations.

OVC encourages state grantees to coordinate their activities with

their state's VOCA compensation program and the U.S. Attorneys' Offices

and FBI Field Offices within their state. Only with an emphasis on

coordination, will a continuum of services be ensured for

[[Page 7263]]

all crime victims. Coordination strategies could include inviting

Compensation Program Directors and Federal Victim-Witness Coordinators

to serve on subgrant review committees; providing Compensation Program

Directors and Coordinators with a list of VOCA-funded organizations;

attending meetings organized by Compensation Program Directors and

Coordinators regarding the provision of victim assistance services;

providing training activities for subrecipients to learn about the

compensation program; developing joint guidance, where applicable, on

third-party payments to VOCA assistance organizations; and providing

training for compensation program staff on the trauma of victimization.

B. Subrecipient Organization Eligibility Requirements

VOCA establishes eligibility criteria that must be met by all

organizations that receive VOCA funds. These funds are to be awarded to

subrecipients only for providing services to victims of crime through

their staff. Each subrecipient organization shall meet the following

requirements:

1. Public or Nonprofit Organization. To be eligible to receive VOCA

funds, organizations must be operated by public or nonprofit

organization, or a combination of such organizations, and provide

services to crime victims.

2. Record of Effective Services. Demonstrate a record of providing

effective services to crime victims. This includes having the support

and approval of its services by the community, a history of providing

direct services in a cost-effective manner, and financial support from

other sources.

3. New Programs. Those programs that have not yet demonstrated a

record of providing services may be eligible to receive VOCA funding,

if they can demonstrate financial support from non-federal sources.

4. Program Match Requirements. Match is to be committed for each

VOCA-funded project and derived from resources other than federal funds

and/or resources, except as provided in Chapter 2, paragraph 14, of the

OJP Financial Guide, effective edition.

All funds designated as match are restricted to the same uses as

the VOCA victim assistance funds and must be expended within the grant

period. Because of this requirement, VOCA subrecipients must maintain

records which clearly show the source, the amount, and the period

during which the match was expended. Therefore, organizations are

encouraged not to commit excessive amounts of match. Match requirements

are a minimum of 20%, cash or in-kind, of the total VOCA project (VOCA

grant plus match) except as follows:

a. The match for new or existing VOCA subrecipients that are Native

American tribes/organizations located on reservations is 5%, cash or

in-kind, of the total VOCA project (VOCA grant plus match.) For the

purposes of this grant, a Native American tribe/organization is defined

as any tribe, band, nation, or other organized group or community,

which is recognized as eligible for the special programs and services

provided by the U.S. to Native Americans because of their status as

Native Americans. A reservation is defined as a tract of land set aside

for use of, and occupancy by, Native Americans.

b. Subrecipients located in the U.S. Virgin Islands, and all other

territories and possessions of the U.S. except Puerto Rico are not

required to match the VOCA funds. See 48 U.S.C. 1469a(d).

5. Volunteers. Subrecipient organizations must use volunteers

unless the state grantee determines there is a compelling reason to

waive this requirement. A ``compelling reason'' may be a statutory or

contractual provision concerning liability or confidentiality of

counselor/victim information, which bars using volunteers for certain

positions, or the inability to recruit and maintain volunteers after a

sustained and aggressive effort.

6. Promote Community Efforts to Aid Crime Victims. Promote, within

the community, coordinated public and private efforts to aid crime

victims. Coordination may include, but is not limited to, serving on

state, federal, local, or Native American task forces, commissions and/

or working groups; and developing written agreements, which contribute

to better and more comprehensive services to crime victims.

Coordination efforts qualify an organization to receive VOCA victim

assistance funds, but are not activities that can be supported with

VOCA funds.

7. Help Victims Apply for Compensation Benefits. Such assistance

may include identifying and notifying crime victims of the availability

of compensation, assisting them with application forms and procedures,

obtaining necessary documentation, and/or checking on claim status.

8. Comply with Federal Rules Regulating Grants. Subrecipients must

comply with the applicable provisions of VOCA, the Program Guidelines,

and the requirements of the OJP Financial Guide, effective edition,

which includes maintaining appropriate programmatic and financial

records that fully disclose the amount and disposition of VOCA funds

received. This includes: Financial documentation for disbursements;

daily time and attendance records specifying time devoted to allowable

VOCA victim services; client files; the portion of the project supplied

by other sources of revenue; job descriptions; contracts for services;

and other records which facilitate an effective audit.

9. Maintain Civil Rights Information. Maintain statutorily required

civil rights statistics on victims served by race or national origin,

sex, age, and disability, within the timetable established by the state

grantee; and permit reasonable access to its books, documents, papers,

and records to determine whether the subrecipient is complying with

applicable civil rights laws. This requirement is waived when providing

a service, such as telephone counseling, where soliciting the

information may be inappropriate or offensive to the crime victim.

10. Comply with State Criteria. Subrecipients must abide by any

additional eligibility or service criteria as established by the state

grantee including submitting statistical and programmatic information

on the use and impact of VOCA funds, as requested by the grantee.

11. Services to Federal Victims. Subrecipients must provide

services to victims of federal crimes on the same basis as victims of

state/local crimes.

12. No Charge to Victims for VOCA-Funded Services. Subrecipients

must provide services to crime victims, at no charge, through the VOCA-

funded project. Any deviation from this provision requires prior

approval by the state grantee. Prior to authorizing subrecipients to

generate income, OVC strongly encourages administrators to carefully

weigh the following considerations regarding federal funds generating

income for subrecipient organizations.

a. The purpose of the VOCA victim assistance grant program is to

provide services to all crime victims regardless of their ability to

pay for services rendered or availability of insurance or other third-

party payment resources. Crime victims suffer tremendous emotional,

physical, and financial losses. It was never the intent of VOCA to

exacerbate the impact of the crime by asking the victim to pay for

services.

b. State grantees must ensure that they and their subrecipients

have the capability to track program income in accordance with federal

financial

[[Page 7264]]

accounting requirements. All VOCA-funded program and match income, no

matter how large or small, is restricted to the same uses as the VOCA

grant.

Program income can be problematic because of the required tracking

systems needed to monitor VOCA-funded income and ensure that it is used

only to make additional services available to crime victims. For

example: VOCA often funds only a portion of a counselor's time.

Accounting for VOCA program income generated by this counselor is

complicated, involving careful record keeping by the counselor, the

subrecipient program, and the state.

12. Client-Counselor and Research Information Confidentiality.

Maintain confidentiality of client-counselor information, as required

by state and federal law.

13. Confidentiality of Research Information. Except as otherwise

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

reveal any research or statistical information furnished 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.

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

confidentiality of information provided by crime victims to counselors

working for victim services programs receiving VOCA funds. Whatever the

scope of application given this provision, it is clear that 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 suspected child abuse. See

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

Furthermore, this confidentiality provision should not be interpreted

to thwart the legitimate informational needs of public agencies. For

example, this provision does not prohibit a domestic violence shelter

from acknowledging, in response to an inquiry by a law enforcement

agency conducting a missing person investigation, that the person is

safe in the shelter. Similarly, this provision does not prohibit access

to a victim service project by a federal or state agency seeking to

determine whether federal and state funds are being utilized in

accordance with funding agreements.

C. Eligible Subrecipient Organizations

VOCA specifies that an organization must provide services to crime

victims and be operated by a public agency or nonprofit organization,

or a combination of such agencies or organizations in order to be

eligible to receive VOCA funding. Eligible organizations include victim

services organizations whose sole mission is to provide services to

crime victims. These organizations include, but are not limited to,

sexual assault and rape treatment centers, domestic violence programs

and shelters, child advocacy centers and child abuse treatment

facilities, centers for missing children, state/local public child and

adult protective services or mental health services, and other

community-based victim coalitions and support organizations including

those who serve survivors of homicide victims.

In addition to victim services organizations, whose sole purpose is

to serve crime victims, there are many other public and nonprofit

organizations that have components which offer services to crime

victims. These organizations are eligible to receive VOCA funds, if the

funds are used to expand or enhance the delivery of crime victims'

services. These organizations include, but are not limited to, the

following:

1. Criminal Justice Agencies. Such agencies as law enforcement

organizations, prosecutor offices, courts, corrections departments,

probation and paroling authorities are eligible to receive VOCA funds

to help pay for victims' services. For example, a police department may

use VOCA funds to provide crime victim services that exceed a law

enforcement official's normal duties, such as victim crisis response

units. Regular law enforcement duties such as crime scene intervention,

questioning of victims and witnesses, investigation of the crime, and

follow-up activities may not be paid for with VOCA funds.

2. Religiously-Affiliated Organizations. Such organizations

receiving VOCA funds must ensure that services are offered to all crime

victims without regard to religious affiliation and that the receipt of

services is not contingent upon participation in a religious activity

or event.

3. State Crime Victim Compensation Agencies. Compensation programs

may receive VOCA assistance funds if they offer direct services to

crime victims that extend beyond distribution of the usual information

about compensation and referral to other sources of public and private

assistance. Such services would include assisting victims complete

their compensation application forms and gather the necessary

documentation.

4. Hospitals and Emergency Medical Facilities. Such organizations

must offer crisis counseling, support groups, and/or other types of

victim services. In addition, state grantees may only award VOCA funds

to a medical facility for the purpose of performing forensic

examinations on sexual assault victims if (1) the examination meets the

standards established by the state, local prosecutor's office, or

state-wide sexual assault coalition; and (2) appropriate crisis

counseling and/or other types of victim services are offered to the

victim in conjunction with the examination.

5. Others: State and local public agencies such as mental health

service organizations, state grantees, legal services agencies, and

public housing authorities that have components specifically trained to

serve crime victims. Since the intention of the VOCA grant program is

to support and enhance the crime victim services provided by community

agencies, state grantees that meet the definition of an eligible

subrecipient organization may not subaward themselves more than 10

percent of their annual VOCA award.

D. Ineligible Recipients of VOCA Funds

Some public and nonprofit organizations that offer services to

crime victims are not eligible to receive VOCA victim assistance

funding. These organizations include, but are not limited to, the

following:

1. Federal Agencies. This includes U.S. Attorneys Offices and local

F.B.I. Offices. Receipt of VOCA funds would constitute an augmentation

of the federal budget with money intended for state agencies. However,

private nonprofit organizations that operate on federal land may be

eligible subrecipients of VOCA victim assistance grant funds.

2. In-Patient Treatment Facilities. For example, those designed to

provide treatment to individuals with drug, alcohol, and/or mental

health-related conditions.

E. Services, Activities, and Costs at the Subrecipient Level

1. Allowable Costs for Direct Services. The following is a listing

of services,

[[Page 7265]]

activities, and costs that are eligible for support with VOCA victim

assistance grant funds within a subrecipient's organization:

a. Immediate Health and Safety. Those services which respond to the

immediate emotional and physical needs (excluding medical care) of

crime victims such as crisis intervention; accompaniment to hospitals

for medical examinations; hotline counseling; emergency food, clothing,

transportation, and shelter; and other emergency services that are

intended to restore the victim's sense of dignity and self esteem. This

includes services which offer an immediate measure of safety to crime

victims such as boarding-up broken windows and replacing or repairing

locks. Also allowable is emergency legal assistance such as filing

restraining orders and obtaining emergency custody/visitation rights

when such actions are directly connected to family violence cases and

pertain to the health and safety of the victim.

b. Mental Health Assistance. Those services and activities that

assist the primary and secondary victims of crime in understanding the

dynamics of victimization and in stabilizing their lives after a

victimization such as counseling, group treatment, and therapy.

``Therapy'' refers to intensive professional psychological/psychiatric

treatment for individuals, couples, and family members related to

counseling to provide emotional support in crises arising from the

occurrence of crime. This includes the evaluation of mental health

needs, as well as the actual delivery of psychotherapy.

c. Assistance with Participation in Criminal Justice Proceedings.

In addition to the cost of emergency legal services noted above (in

section a. ``Immediate Health and Safety''), there are other costs

associated with helping victims participate in the criminal justice

system that also are allowable. These services may include advocacy on

behalf of crime victims; accompaniment to criminal justice offices and

court; transportation to court; child care to enable a victim to attend

court; notification of victims regarding trial dates, case disposition

information, and parole consideration procedures; and restitution

advocacy and assistance with victim impact statements. VOCA funds

cannot be used to pay for non-emergency legal representation such as

for divorces.

d. Forensic Examinations. For sexual assault victims, forensic

exams are allowable costs only to the extent that other funding sources

(such as state compensation or private insurance or public benefits)

are unavailable or insufficient. State grantees should establish

procedures to monitor the use of VOCA victim assistance funds to pay

for forensic examinations in sexual assault cases.

e. Costs Necessary and Essential to Providing Direct Services. This

includes pro-rated costs of rent, telephone service, transportation

costs for victims to receive services, emergency transportation costs

that enable a victim to participate in the criminal justice system, and

local travel expenses for service providers.

f. Special Services. Services to assist crime victims with managing

practical problems created by the victimization such as acting on

behalf of the victim with other service providers, creditors, or

employers; assisting the victim to recover property that is retained as

evidence; assisting in filing for compensation benefits; and helping to

apply for public assistance.

g. Personnel Costs. Costs that are directly related to providing

direct services, such as staff salaries and fringe benefits, including

malpractice insurance; the cost of advertising to recruit VOCA-funded

personnel; and the cost of training paid and volunteer staff.

h. Restorative Justice. Opportunities for crime victims to meet

with perpetrators, if such meetings are requested by the victim and

have therapeutic value to crime victims.

State grantees that plan to fund this type of service should

closely review the criteria for conducting these meetings. At a

minimum, the following should be considered: (1) The safety and

security of the victim; (2) the benefit or therapeutic value to the

victim; (3) the procedures for ensuring that participation of the

victim and offender are voluntary and that everyone understands the

nature of the meeting, (4) the provision of appropriate support and

accompaniment for the victim, (5) appropriate ``debriefing''

opportunities for the victim after the meeting or panel, (6) the

credentials of the facilitators, and (7) the opportunity for a crime

victim to withdraw from the process at any time. State grantees are

encouraged to discuss proposals with OVC prior to awarding VOCA funds

for this type of activity. VOCA assistance funds cannot be used for

victim-offender meetings which serve to replace criminal justice

proceedings.

2. Other Allowable Costs and Services. The services, activities,

and costs listed below are not generally considered direct crime victim

services, but are often a necessary and essential activity to ensure

that quality direct services are provided. Before these costs can be

supported with VOCA funds, the state grantee and subrecipient must

agree that direct services to crime victims cannot be offered without

support for these expenses; that the subrecipient has no other source

of support for them; and that only limited amounts of VOCA funds will

be used for these purposes. The following list provides examples of

such items:

a. Skills Training for Staff. VOCA funds designated for training

are to be used exclusively for developing the skills of direct service

providers including paid staff and volunteers, so that they are better

able to offer quality services to crime victims. An example of skills

development is training focused on how to respond to a victim in

crisis.

VOCA funds can be used for training both VOCA-funded and non-VOCA-

funded service providers who work within a VOCA recipient organization,

but VOCA funds cannot be used for management and administrative

training for executive directors, board members, and other individuals

that do not provide direct services.

b. Training Materials. VOCA funds can be used to purchase materials

such as books, training manuals, and videos for direct service

providers, within the VOCA-funded organization, and can support the

costs of a trainer for in-service staff development. Staff from other

organizations can attend in-service training activities that are held

for the subrecipient's staff.

c. Training Related Travel. VOCA funds can support costs such as

travel, meals, lodging, and registration fees to attend training within

the state or a similar geographic area. This limitation encourages

state grantees and subrecipients to first look for available training

within their immediate geographical area, as travel costs will be

minimal. However, when needed training is unavailable within the

immediate geographical area, state grantees may authorize using VOCA

funds to support training outside of the geographical area. For

example, VOCA grantees may benefit by attending national conferences

that offer skills building training workshops for victim assistance

providers.

d. Equipment and Furniture. VOCA funds may be used to purchase

furniture and equipment that provides or enhances direct services to

crime victims, as demonstrated by the VOCA subrecipient.

VOCA funds cannot support the entire cost of an item that is not

used exclusively for victim-related activities. However, VOCA funds can

support a prorated share of such an item. In

[[Page 7266]]

addition, subrecipients cannot use VOCA funds to purchase equipment for

another organization or individual to perform a victim-related service.

Examples of allowable costs may include beepers; typewriters and word

processors; video-tape cameras and players for interviewing children;

two-way mirrors; and equipment and furniture for shelters, work spaces,

victim waiting rooms, and children's play areas.

The costs of furniture or equipment that makes victims services

more accessible to persons with disabilities, such as a TTY for the

hearing impaired, are allowable.

e. Purchasing or Leasing Vehicles. Subrecipients may use VOCA funds

to purchase or lease vehicles if they can demonstrate to the state VOCA

administrator that such an expenditure is essential to delivering

services to crime victims. The VOCA administrator must give prior

approval for all such purchases.

f. Advanced Technologies. At times, computers may increase a

subrecipient's ability to reach and serve crime victims. For example,

automated victim notification systems have dramatically improved the

efficiency of victim notification and enhanced victim security.

In making such expenditures, VOCA subrecipients must describe to

the state how the computer equipment will enhance services to crime

victims; how it will be integrated into and/or enhance the

subrecipient's current system; the cost of installation; the cost of

training staff to use the computer equipment; the on-going operational

costs, such as maintenance agreements, supplies; and how these

additional costs will be supported. Property insurance is an allowable

expense as long as VOCA funds support a prorated share of the cost of

the insurance payments.

State grantees that authorize equipment to be purchased with VOCA

funds must establish policies and procedures on the acquisition and

disbursement of the equipment, in the event the subrecipient no longer

receives a VOCA grant. At a minimum, property records must be

maintained with the following: A description of the property and a

serial number or other identifying number; identification of title

holder; the acquisition date; the cost and the percentage of VOCA funds

supporting the purchase; the location, use, and condition of the

property; and any disposition data, including the date of disposal and

sale price. (See OJP Financial Guide, effective edition.)

g. Contracts for Professional Services. VOCA funds generally should

not be used to support contract services. At times, however, it may be

necessary for VOCA subrecipients to use a portion of the VOCA grant to

contract for specialized services. Examples of these services include

assistance in filing restraining orders or establishing emergency

custody/visitation rights; forensic examinations on a sexual assault

victim to the extent that other funding sources are unavailable or

insufficient; emergency psychological or psychiatric services; or sign

interpretation for the hearing impaired.

Subrecipients are prohibited from using a majority of VOCA funds

for contracted services, which contain administrative, overhead, and

other indirect costs included in the hourly or daily rate.

h. Operating Costs. Examples of allowable operating costs include

supplies; equipment use fees, when supported by usage logs; printing,

photocopying, and postage; brochures which describe available services;

and books and other victim-related materials. VOCA funds may support

administrative time to complete VOCA-required time and attendance

sheets and programmatic documentation, reports, and statistics;

administrative time to maintain crime victims' records; and the pro-

rated share of audit costs.

i. Supervision of Direct Service Providers. State grantees may

provide VOCA funds for supervision of direct service providers when

they determine that such supervision is necessary and essential to

providing direct services to crime victims. For example, a state

grantee may determine that using VOCA funds to support a coordinator of

volunteers or interns is a cost-effective way of serving more crime

victims.

j. Repair and/or Replacement of Essential Items. VOCA funds may be

used for repair or replacement of items that contribute to maintaining

a healthy and/or safe environment for crime victims, such as a furnace

in a shelter. State grantees are cautioned to scrutinize each request

for expending VOCA funds for such purposes to ensure the following: (1)

That the building is owned by the subrecipient organization and not

rented or leased, (2) all other sources of funding have been exhausted,

(3) there is no available option for providing the service in another

location, (4) that the cost of the repair or replacement is reasonable

considering the value of the building, and (5) the cost of the repair

or replacement is pro-rated among all sources of income.

k. Public Presentations. VOCA funds may be used to support

presentations that are made in schools, community centers, or other

public forums, and that are designed to identify crime victims and

provide or refer them to needed services. Specifically, activities and

costs related to such programs including presentation materials,

brochures, and newspaper notices can be supported by VOCA funds.

3. Non-Allowable Costs and Activities. The following services,

activities, and costs, although not exhaustive, cannot be supported

with VOCA victim assistance grant funds at the subgrantee level:

a. Lobbying and Administrative Advocacy. VOCA funds cannot support

victim legislation or administrative reform, whether conducted directly

or indirectly.

b. Perpetrator Rehabilitation and Counseling. Subrecipients cannot

knowingly use VOCA funds to offer rehabilitative services to offenders.

Likewise, VOCA funds cannot support services to incarcerated

individuals, even when the service pertains to the victimization of

that individual.

c. Needs Assessments, Surveys, Evaluations, Studies. VOCA funds may

not be used to pay for efforts conducted by individuals, organizations,

task forces, or special commissions to study and/or research particular

crime victim issues.

d. Prosecution Activities. VOCA funds cannot be used to pay for

activities that are directed at prosecuting an offender and/or

improving the criminal justice system's effectiveness and efficiency,

such as witness notification and management activities and expert

testimony at a trial. In addition, victim protection costs and victim/

witness expenses such as travel to testify in court and subsequent

lodging and meal expenses are considered part of the criminal justice

agency's responsibility and cannot be supported with VOCA funds.

e. Fundraising activities.

f. Indirect Organizational Costs. For example, the costs of

liability insurance on buildings and vehicles; capital improvements;

security guards and body guards; property losses and expenses; real

estate purchases; mortgage payments; and construction may not be

supported with VOCA funds.

g. Property Loss. Reimbursing crime victims for expenses incurred

as a result of a crime such as insurance deductibles, replacement of

stolen property, funeral expenses, lost wages, and medical bills is not

allowed.

h. Most Medical Costs. VOCA funds cannot pay for nursing home care,

home health-care costs, in-patient treatment costs, hospital care, and

other types of

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emergency and non-emergency medical and/or dental treatment. VOCA

victim assistance grant funds cannot support medical costs resulting

from a victimization, except for forensic medical examinations for

sexual assault victims.

i. Relocation Expenses. VOCA funds cannot support relocation

expenses for crime victims such as moving expenses, security deposits

on housing, ongoing rent, and mortgage payments. However, VOCA funds

may be used to support staff time in locating resources to assist

victims with these expenses.

j. Administrative Staff Expenses. Salaries, fees, and reimbursable

expenses associated with administrators, board members, executive

directors, consultants, coordinators, and other individuals unless

these expenses are incurred while providing direct services to crime

victims.

k. Development of Protocols, Interagency Agreements, and Other

Working Agreements. These activities benefit crime victims, but they

are considered examples of the types of activities that subrecipients

undertake as part of their role as a victim services organization,

which in turn qualifies them as an eligible VOCA subrecipient.

l. Costs of Sending Individual Crime Victims to Conferences.

m. Activities Exclusively Related to Crime Prevention.

V. Program Reporting Requirements

State grantees must adhere to all reporting requirements and

timelines for submitting the required reports, as indicated below.

Failure to do so may result in a hold being placed on the drawdown of

the current year's funds, a hold being placed on processing the next

year's grant award, or can result in the suspension or termination of a

grant.

A. Subgrant Award Reports

A Subgrant Award Report is required for each organization that

receives VOCA funds and uses the funds for such allowable expenses

including employee salaries, fringe benefits, supplies, and rent. This

requirement applies to all state grantee awards including grants,

contracts, or subgrants and to all subrecipient organizations.

Subgrant Award Reports are not to be completed for organizations

that serve only as conduits for distributing VOCA funds or for

organizations that provide limited, emergency services, on an hourly

rate, to the VOCA subrecipient organizations. Services and activities

that are purchased by a VOCA subrecipient are to be included on the

subrecipient's Subgrant Award Report.

1. Reporting Deadline. State grantees are required to submit to

OVC, within 90 days of making the subaward, Subgrant Award Report

information for each subrecipient of VOCA victim assistance grant

funds.

2. Electronic Submission. State grantees shall transmit their

Subgrant Award Report information to OVC via the automated subgrant

dial-in system. By utilizing the subgrant dial-in 1-800 number,

grantees can access the system without incurring a long distance

telephone charge. States and territories outside of the continental

U.S. are exempt from the requirement to use the subdial system, but

these grantees must complete and submit the Subgrant Award Report form,

OJP 7390/2A, for each VOCA subrecipient.

3. Changes to Subgrant Award Report. If the Subgrant Award Report

information changes by the end of the grant period, state grantees must

inform OVC of the changes, either by revising the information via the

automated subgrant subdial system, by completing and submitting to OVC

a revised Subgrant Award Report form, or by making notations on the

state-wide Database Report and submitting it to OVC. The total of all

Subgrant Award Reports submitted by the state grantee must agree with

the Final Financial Status Report (Standard Form 269A) that is

submitted at the end of the grant period.

B. Performance Report

1. Reporting Deadline. Each state grantee is required to submit

specific end-of-grant data on the OVC-provided Performance Report, form

No. OJP 7390/4, by December 31 of each year.

2. Administrative Cost Provision. For those state grantees who opt

to use a portion of the VOCA victim assistance grant for administrative

costs, the Performance Report will be used to describe how the funds

were actually used and the impact of the 5% administrative funds on the

state grantee's ability to expand, enhance, and improve services to

crime victims. State grantees who choose to use a portion of their VOCA

victim assistance grant for administrative costs must maintain a clear

audit trail of all costs supported by administrative funds and be able

to document the value of the grantee's previous commitment to

administering VOCA.

VI. Financial Requirements

As a condition of receiving a grant, state grantees and

subrecipients shall adhere to the financial and administrative

provisions set forth in the OJP Financial Guide and applicable OMB

Circulars and Common Rules. The following section describes the audit

requirements for state grantees and subrecipients, the completion and

submission of Financial Status Reports, and actions that result in

termination of advance funding.

A. Audit Responsibilities for Grantees and Subgrantees

OMB Circular A-133 is being revised. Until the revisions are final,

state and local government agencies that receive $100,000 or more in

federal funds during their state fiscal year are required to submit an

organization-wide financial and compliance audit report. Recipients of

$25,000 to $100,000 in federal funds are required to submit a program-

or organization-wide audit report as directed by the granting agency.

Recipients receiving less than $25,000 in federal funds are not

required to submit a program- or organization-wide financial and

compliance audit report for that year. Nonprofit organizations and

institutions of higher education that expend $300,000 or more in

federal funds per year shall have an organization-wide financial and

compliance audit. Grantees must submit audit reports within 13 months

after their state fiscal year ends.

B. Audit Costs

Under OMB Circular A-133 audit costs are generally allowable

charges under federal grants. Audit costs incurred at the grantee/

(state) level are determined to be an administrative expense, and may

be paid with the allowable five percent for administration.

C. Financial Status Report for State Grantees

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 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.

D. Termination of Advance Funding to State Grantees

If the state grantee receiving cash advances by direct Treasury

deposit demonstrates an unwillingness or

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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.

VII. Monitoring

A. Office of the Comptroller

The Office of the Comptroller conducts periodic reviews of the

financial policies, procedures, and records of VOCA grantees and

subrecipients. Therefore, upon request, state grantees and

subrecipients must give authorized representatives the right to access

and examine all records, books, papers, case files, or documents

related to the grant, use of administrative funds, and all subawards.

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 VOCA grant program;

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

all VOCA subrecipients; (3) the state grantee's VOCA application kit,

procedures, and guidelines for subawarding VOCA funds; and (4) all

other state grantee and subrecipient records and files.

In addition, OVC will visit selected subrecipients and will review

similar documents such as (1) financial records, reports, and audit

reports; (2) policies and procedures governing the organization and the

VOCA funds; (3) programmatic records of victims' services; and (4)

timekeeping records and other supporting documentation for costs

supported by VOCA funds.

VIII. 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 OJP Financial

Guide (effective edition), the Proposed 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. VOCA subrecipients, within

the state, may not request a hearing at the federal level. However,

VOCA subrecipients who believe that the state grantee has violated a

program and/or financial requirement are not precluded from bringing

the alleged violation(s) to the attention of OVC.

Aileen Adams,

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

[FR Doc. 97-3836 Filed 2-14-97; 8:45 am]

BILLING CODE 4410-18-P