[Federal Register Volume 62, Number 31 (Friday, February 14, 1997)]
[Notices]
[Pages 7050-7059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3715]
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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