[Federal Register Volume 62, Number 77 (Tuesday, April 22, 1997)]
[Notices]
[Pages 19607-19621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10403]


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DEPARTMENT OF JUSTICE

[OJP(OVC)-1113]
RIN 1121-ZA60


Victims of Crime Act Victim Assistance 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 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).

EFFECTIVE DATE: These guidelines are effective 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 20531-0001; e-mail address: [email protected]; 
telephone number 202/307-5983. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: 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 under the following headings: Summary of the Comments to 
the Proposed 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 Final Program 
Guidelines are all inclusive. Thus, they supersede any Guidelines 
previously issued by OVC.
    OVC, in conjunction with DOJ's Office of Policy Development, and 
the Office of Information and Regulatory Affairs within 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 Final Program Guidelines

    As a result of 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 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 
Assistance Grants. The Final Program Guidelines also include several 
technical corrections that are not listed in this summary because they 
do not affect policy or program implementation.

A. Comments From the Field

    In the interest of reaching a more diverse audience and making the 
review and comment process more convenient for victim service advocates 
and providers, OVC took several steps. In April, 1996, OVC asked the 
state VOCA

[[Page 19608]]

victim assistance program administrators for their comments on the 
effective edition of the VOCA Victim Assistance Final Program 
Guidelines (published in October 27, 1995). On the basis of their 
comments and the suggestions of several other victim advocates, OVC 
developed Proposed VOCA Victim Assistance Program Guidelines. 
Throughout the year, the OVC Director and staff met individually and in 
groups with VOCA administrators and subgrantees to discuss revisions to 
the Guidelines. In November of 1996, OVC mailed copies of the Proposed 
Guidelines directly to all of the state VOCA victims assistance and 
victim compensation program administrators, as well to the 
representatives of approximately 20 national crime victim advocacy 
organizations. In early December, the Proposed Guidelines were posted 
on the OVC Website for review and comment by all interested parties. 
Finally, the Proposed Guidelines were published in the Federal Register 
on February 18, 1997.
    Since last Spring, OVC has received approximately 90 
recommendations, comments, and questions from VOCA administrators, 
victim service providers, representatives of national victim 
organizations, and other victim advocates via telephone, mail, fax, and 
e-mail. The vast majority of the comments supported the proposed 
changes to the Guidelines.
    OVC received comments from experts in elder services that helped 
OVC redefine ``elder abuse'' and include specific direction regarding 
respite care for elders, emergency nursing home shelter for victims of 
elder abuse, and inclusion of adult care providers in community 
cooperation efforts. These comments were made by state and national 
organizations, including the U.S. Department of Health and Human 
Services Administration on Aging and the National Association of State 
Units on Aging.
    OVC also received comments from state and national domestic 
violence organizations, such as the Pennsylvania Coalition Against 
Domestic Violence and AYUDA, supporting the proposal to expand VOCA-
funded emergency legal assistance to include child custody and 
visitation when such assistance is from providers with a demonstrated 
history of advocacy on behalf of domestic violence victims.
    All of the comments received were invaluable in helping OVC prepare 
the Final Victim Assistance Program Guidelines. A summary of the 
changes occurring as a result of comments from the field are listed 
below in the order in which they appear in the Final Program 
Guidelines.
1. Definition of Crime Victim To Include Financial Harm
    In Section I., Background, the definition of crime victim has been 
modified to specifically include victims of financial exploitation. 
Although VOCA-funded programs cannot restore the financial losses 
suffered by victims of fraud, victims are eligible for the counseling, 
criminal justice advocacy, and other support services offered by VOCA-
funded victim assistance programs.
2. Training of Adult Protective Services Personnel
    The section on the VOCA Victim Assistance Application Process 
(III.B.2.c.), which lists allowable uses of the administrative cost 
provision, has been modified to specifically include training for aging 
and adult protective service providers.
3. Submission of Administrative Cost Provision Budget
    Previous editions of the Guidelines required state grantees to 
submit a budget itemizing projected administrative fund expenditures 
and a statement describing the types of activities they would support 
and how the expenditure was expected to improve the administration of 
the VOCA program.
    The State Grantee Application Process section (III.B.2.), which 
describes the administrative cost provision, has been modified to 
lessen the burden on state grantees. Those states that use 
administrative funds must submit a statement to OVC that reports only 
the amount of the total grant that will be used as administrative 
funds. A special condition will be added to the award document, and 
periodic OJP financial reviews will be conducted to ensure states' 
compliance with the Program Guidelines and OJP Financial Guide to 
determine whether administrative funds have been used for allowable 
purposes.
4. Training for Non-VOCA Funded Personnel
    The State Grantee Application Process section (III.C.), which 
outlines the allowable use of training funds, has been expanded to 
specifically include non-VOCA funded staff in addition to VOCA-funded 
personnel.
5. Submission of Training Cost Provision Budget
    In previous editions of the Guidelines, state grantees were 
required to submit a budget itemizing projected training expenses and a 
statement describing the needs of the providers and the goals of the 
training. The section on the State Grantee Application Process 
(III.C.), has been modified to lessen the burden on states. States 
using the VOCA training funds must only report the amount of the total 
grant that will be used for training. States still must comply with OVC 
the 20% match requirement and other guidance defining allowable uses 
for training funds.
6. Definition of Victims of Federal Crime
    In response to requests for clarification, the Program Requirements 
section (IV.A.4.), has been modified to include a definition of 
``victims of federal crime.'' 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 in an area where the federal government has 
jurisdiction, such as Indian reservations, some national parks, some 
federal buildings, and military installations.
7. Definition of Elder Abuse
    The Program Requirements section (IV.A.4.) describing grantee 
eligibility requirements, has been modified so that the definition of 
``elder abuse'' now focuses on describing the offense, rather than on 
characterizing the victim. Hence, the definition, ``abuse of vulnerable 
adults,'' has been expanded to include ``the mistreatment of older 
persons through physical, sexual, or psychological violence; neglect; 
or economic exploitation and fraud.''
8. Identifying Underserved Victims of Crime
    The Program Requirements section (IV.A.4.) describing the state 
grantee eligibility requirements, has been modified to encourage states 
to identify gaps in available services, not just by the types of crimes 
committed, but also by victims' demographic characteristics. Thus, 
these Final Guidelines ask grantees to examine the possibility that in 
a given state, ``underserved'' victims may also be defined by 
demographic characteristics such as their status as senior citizens, 
non-English speaking residents, disabled persons, members of racial or 
ethnic minorities, or by virtue of the fact that they are residents of 
rural or remote areas, or inner cities.
9. Funding New Programs
    There was confusion about OVC's intention regarding the funding of 
new crime victim programs. Hence, language has been added to Section 
IV, the

[[Page 19609]]

Program Requirements (IV.B.3.), 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 that 25-50 percent of 
their financial support comes from non-federal sources. States are 
responsible for establishing the base level of non-federal support 
required within the 25-50 percent range.
10. Funding 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.
11. Child Abuse and Adult Protective Service Agencies
    Section IV., the Program Requirements section (IV.C.), which 
describes the criteria for eligible subrecipient organizations, has 
been modified to specifically include child abuse programs and 
treatment facilities and adult protective service agencies.
12. Legal Service Agencies or Programs With Records of Serving Victims 
of Domestic Violence
    The Program Requirements section (IV.C.5.), which lists the local 
public agencies eligible to receive VOCA subgrant funds, has been 
modified to specifically include legal service agencies or programs 
with a demonstrated history of advocacy on behalf of domestic violence 
victims, including children.
13. State Grantees as Subrecipients
    Section IV., the Program Requirements (IV.C.5), has 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. This limitation applies to 
all states and territories, except for the Northern Mariana Islands, 
Guam, American Samoa, and the Republic of Palau.
14. Nursing Homes as Emergency Shelters
    Under the Program Requirements section (IV.E.1.a.), which lists the 
allowable costs for direct services, the Guidelines have been modified 
to clarify that emergency shelter includes short-term nursing home 
shelter for elder abuse victims for whom no other safe, short-term 
residence is available.
15. Emergency Legal Assistance
    The Program Requirements section (IV.E.1.a.), which lists the 
allowable services, activities, and costs at the subrecipient level, 
has been modified to allow subgrantees discretion in providing 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 are taken to ensure the health and safety of 
the victim.'' The allowable ``Contracts for Professional Services'' 
section (IV.E.2.g.) also has been modified to include assistance with 
emergency custody and visitation proceedings from providers with a 
demonstrated history of advocacy on behalf of domestic violence 
victims.
16. Cost of Respite Care
    The Program Requirements, section (IV.E.1.c.), has been modified to 
specifically state that assistance with participation in criminal 
justice proceedings may include the cost of caring for a dependent 
adult when this enables a victim to attend court.
17. Cost of Restitution Advocacy on Behalf of Individuals
    The Program Requirement section (IV.E.1.c.), has been modified to 
state clearly that restitution advocacy on behalf of specific crime 
victims is an allowable activity.
18. Restorative Justice
    In many cases, victims are not familiar with the nature and 
availability of restorative justice programs. Therefore, the Program 
Requirements section (IV.E.1.h.), has been modified to clarify that 
restorative justice opportunities, where crime victims meet with 
perpetrators, are allowable, if such meetings are requested ``or 
voluntarily agreed to'' by the victim. In addition, since it is 
impossible to guarantee the therapeutic value of any activity, this 
section of the Guidelines has been further modified to state that 
restorative justice programs must have ``possible beneficial or'' 
therapeutic value to crime victims.
19. Allowable Costs for Making Services Accessible to Victims With 
Disabilities
    The Program Requirements section (IV.E.2.d.), listing allowable 
``non-direct'' costs and services, has been modified to clarify that 
VOCA funds may be used to purchase items such as braille equipment for 
the blind or TTY/TTD machines for the deaf, or to make minor building 
improvements that make services more accessible to victims with 
disabilities. Additional guidance can be found in the Office of Justice 
Programs, Office of the Comptroller, Financial Guide.
20. Advanced Technologies
    In the Program Requirements section (IV.E.2.f.), OVC offers the 
states clarification that all subrecipients receiving VOCA funds for 
advanced technologies such as computers and victim notification systems 
must meet the usual program eligibility requirements as set forth in 
the Guidelines.
21. 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, the 
section describing the subgrant award report requirements (V.A.) has 
been modified. Beginning with the Federal Fiscal Year (FFY) 1997 VOCA 
grant award, state grantees are required to transmit their Subgrant 
Award Report information to OVC via the automated subgrant dial-in 
system within 90 days of the date of the subaward. Grantees can access 
the system without incurring a long distance telephone charge by 
utilizing the subgrant dial-in 1-800 number. OVC will no longer accept 
manual submission of the Subgrant Award Reports. 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 (Public 
Law 104-132)
    The Antiterrorism and Effective Death Penalty Act of 1996 (Public 
Law 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

[[Page 19610]]

of (VOCA victim assistance) Grant Funds.''
    a. Higher Base Award (II.C.). 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 (II.B.2.). 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 (II.B.4.). Beginning with FFY 1997 VOCA 
grants, funds not obligated by the end of the grant period, up to an 
annual national 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 (II.B.3.). 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 Appropriations Act of 1997
    The Omnibus Appropriations Act of 1997 (P.L. 104-208) 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 (II.B.3) of the Final 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 Final 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 
(III.A.6.) of the Final 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 
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 (IV.A.) 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

[[Page 19611]]

to states. The primary purpose of these grants is to support the 
provision of services to victims of 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 and security 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, 
financial, 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).
    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 (AOUSC) 
for administrative costs to carry out the functions of the judicial 
branch under Sections 3611 and 3612 of Title 18 U.S. Code. (Legislation 
is being drafted to repeal this provision. If passed by Congress and 
signed by the President, AOUSC will no longer receive an allocation 
from the Fund.)
    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 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 Final 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.

[[Page 19612]]

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 debriefings are made 
available to victim assistance providers, dispatchers, and law 
enforcement officers in rural or other remote areas, services to 
victims in these areas improve dramatically. Victim services in rural 
or 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 
state 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). State agencies 
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 any federal funds will be disbursed. 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 a letter transmitting their annual grant application whether they 
intend to use the administrative cost provision. Additional information 
about the administrative cost provision is set forth 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 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). Administrative 
funds must be expended during the project period for which the grant 
was awarded. States are not authorized to roll-over administrative 
funds from one project period to the next. The administrative cost 
provision is available only to the state grantee and not 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 indirect costs requested must be paid 
from the 5 percent administrative funds.
    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. This information will 
assist OVC in evaluating requests to use administrative funds.
    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

[[Page 19613]]

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, 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;
    h. Pay for indirect costs at a federally approved indirect cost 
rate that when applied, does not exceed the 5 percent administrative 
cost allowance.
    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 federally funded programs 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, aging and 
adult protective 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.
    Each state grantee that chooses to use administrative funds is 
required to submit a statement to OVC reporting the amount of the total 
grant that will be used as administrative funds. 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. In addition, 
the grantee must maintain adequate documentation to support the 
expenditure of these funds.
    A state may modify projections set forth in their application by 
notifying OVC, in writing, of the revised amount of the total grant 
that will be used as administrative 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 one percent of the state's grant. 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, including VOCA funded and non-VOCA funded personnel, 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.
    Each state grantee that chooses to use training funds is required 
to submit a statement to OVC reporting the amount of the total grant 
that will be used to pay for training. Grantees must maintain adequate 
documentation to support the expenditure of these funds.
    A state may modify projections set forth in their application by 
notifying OVC of the revised amount of the total grant that will be 
used as training 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.
    The VOCA funds used for training by the state grantee must be 
matched at 20 percent of the total project cost, cash or in-kind, and 
the source of the match must be described. For further information 
regarding match requirements, see the section on Subrecipient 
Organization Eligibility Requirements (IV.B.).

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
    States should ensure that only eligible organizations receive VOCA 
funds, and that these funds are 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.

[[Page 19614]]

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, domestic 
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 underserved.'' These underserved 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, economic exploitation and fraud, 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 in an area 
where the federal government has jurisdiction, such as Indian 
reservations, some national parks, some federal buildings, and military 
installations.
    For the purposes of this program, elder abuse is defined as the 
mistreatment of older persons through physical, sexual, or 
psychological violence, neglect, or economic exploitation and fraud.
    To meet the underserved requirement, state grantees must identify 
crime victims by the types of crimes they have experienced (e.g., drunk 
driving, sexual assault, or domestic violence). States are encouraged 
to also identify gaps in available services by victims' demographic 
characteristics. For example, in a given state, ``underserved'' victims 
may be best defined according to their status as senior citizens, non-
English speaking residents, persons with disabilities, members of 
racial or ethnic minorities, or by virtue of the fact that they are 
residents of rural or remote areas, or inner cities. Each state grantee 
has latitude for determining the method for identifying ``previously 
underserved'' 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 Final Program Guidelines.
8. Required Reports Submitted to OVC
    Programmatic and financial reports shall be submitted. [See Program 
Requirements (Section IV.) and Financial Requirements (Section V.) 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, color, 
religion, national origin, sex, age, 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.
12. Coordination With State VOCA Compensation Program and Federal Law 
Enforcement
    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 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 Federal Victim-Witness Coordinators with a list of VOCA-funded 
organizations; attending meetings organized by Compensation Program 
Directors and Federal Victim-

[[Page 19615]]

 Witness 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, particularly for victims of economic crime and survivors 
of homicide victims.

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 that 25-50 percent of their financial support comes from 
non-federal sources. It is important that organizations have a variety 
of funding sources besides federal funding in order to ensure their 
financial stability. States are responsible for establishing the base 
level of non-federal support required within the 25-50 percent range.
4. Program Match Requirements
    The purpose of matching contributions is to increase the amount of 
resources available to the projects supported by grant funds. Matching 
contributions of 20% (cash or in-kind) of the total cost of each VOCA 
project (VOCA grant plus match) are required for each VOCA-funded 
project and must be derived from non-federal sources, except as 
provided in the OJP Financial Guide, effective edition (Part III. Post 
Award Requirements, Chapter 3. Matching or Cost Sharing). 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. Match 
must be provided on a project-by-project basis. Any deviation from this 
policy must be approved by OVC.
    For the purposes of this program, in-kind match may include 
donations of expendable equipment, office supplies, workshop or 
classroom materials, work space, or the monetary value of time 
contributed by professionals and technical personnel and other skilled 
and unskilled labor, if the services they provide are an integral and 
necessary part of a funded project. The value placed on donated 
services must be consistent with the rate of compensation paid for 
similar work in the subrecipient's organization. If the required skills 
are not found in the subrecipient's organization, the rate of 
compensation must be consistent with the labor market. In either case, 
fringe benefits may be included in the valuation. The value placed on 
loaned or donated equipment may not exceed its fair market value. The 
value of donated space may not exceed the fair rental value of 
comparable space as established by an independent appraisal of 
comparable space and facilities in privately-owned buildings in the 
same locality.
    a. Record Keeping. VOCA recipients and their subrecipients must 
maintain records that clearly show the source, the amount, and the 
period during which the match was allocated. The basis for determining 
the value of personal services, materials, equipment, and space must be 
documented. Volunteer services must be documented, and to the extent 
feasible, supported by the same methods used by the subrecipient for 
its own paid employees. The state has primary responsibility for 
subrecipient compliance with the requirements. State grantees are 
encouraged not to require excessive amounts of match.
    b. Exceptions to the 20% Match. OVC sets a lower match requirements 
for:
    (1) Native American Tribes/Organizations Located on Reservations. 
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. For the purpose 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.
    (2) The U.S. Virgin Islands, and all other territories and 
possessions of the U.S., except Puerto Rico, are not required to match 
VOCA funds. See 48 U.S.C. 1469a(d).
    (3) OVC may waive the match requirement if extraordinary need is 
documented by State VOCA administrators.
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, working groups, coalitions, and/or multi-
disciplinary teams. Coordination efforts also include developing 
written agreements that 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

[[Page 19616]]

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, 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 Victims of Federal Crimes
    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 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.
13. Client-Counselor and Research Information Confidentiality
    Maintain confidentiality of client-counselor information, as 
required by state and federal law.
14. 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.
    These provisions are 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 abuse programs, centers for missing children, 
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, prosecutors' 
offices, courts, corrections departments, and probation and paroling 
authorities are eligible to receive VOCA funds to help pay for victims' 
services. For example, prosecutor-based victim services may include 
victim-witness programs, victim notification, and victim impact 
statements, including statements of pecuniary damages for restitution. 
Corrections-based victim services may include victim notification, 
restitution advocacy, victim-offender mediation programs, and victim 
impact panels. Police-based victim services may include victim crisis 
units or victim advocates, victim registration and notification, and 
cellular phone and alarm services for domestic abuse victims. In 
general, VOCA funds may be used to provide crime victim services that 
exceed a law enforcement official's normal duties. Regular law 
enforcement duties such as crime scene intervention,

[[Page 19617]]

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, including both centralized and decentralized 
programs, may receive VOCA assistance funds if they offer direct 
services to crime victims that extend beyond the essential duties of 
compensation staff such as claims investigations, distribution of 
information about compensation and referral to other sources of public 
and private assistance. Such services would include assisting victims 
in identifying and accessing needed services and resources.
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/local public child and adult protective services, 
state grantees, legal services agencies and programs with a 
demonstrated history of advocacy on behalf of domestic violence 
victims, 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. This limitation 
applies to all states and territories, except for the Northern Mariana 
Islands, Guam, American Samoa, and the Republic of Palau.

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 FBI Field 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, 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 (including emergency, short-term nursing 
home shelter for elder abuse victims for whom no other safe, short-term 
residence is available); and other emergency services that are intended 
to restore the victim's sense of security. 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 are taken to ensure 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 or respite care to enable a 
victim to attend court; notification of victims regarding trial dates, 
case disposition information, and parole consideration procedures; and 
assistance with victim impact statements. State grantees may also fund 
projects devoted to restitution advocacy on behalf of specific crime 
victims. VOCA funds cannot be used to pay for non-emergency legal 
representation such as for divorces, or civil restitution recovery 
efforts.
    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 and, such exams conform with state 
evidentiary collection requirements. 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

[[Page 19618]]

the cost of training paid and volunteer staff.
    h. Restorative Justice. Opportunities for crime victims to meet 
with perpetrators, if such meetings are requested or voluntarily agreed 
to by the victim and have possible beneficial or 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 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, equipment such as braille equipment or TTY/
TTD machines for the deaf, or minor building alterations/improvements 
that make victims services more accessible to persons with disabilities 
are allowable. Refer to the OJP Financial Guide, effective edition, 
before these types of decisions are made.
    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 order to receive a grant for advanced technologies, each 
subrecipient must meet the program eligibility requirements set forth 
in section IV.B. of the Guidelines, Subrecipient Organization 
Eligibility Requirements. 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 (the provider must have a demonstrated 
history of advocacy on behalf of domestic violence victims); 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 and/or interpretation

[[Page 19619]]

for the deaf or for crime victims whose primary language is not 
English.
    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. In the event that a vehicle is purchased with VOCA funds, 
related items, such as routine maintenance and repair costs, and 
automobile insurance are allowable. State grantees are cautioned to 
scrutinize each request for expending VOCA funds for such purposes to 
ensure the following: (1) that the building or vehicle 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 or vehicle, 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 program 
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 witness protection costs 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. The costs of liability insurance 
on buildings; 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 
(emergency short-term nursing home shelter as described in section 
IV.E.1.a. is allowable), home health-care costs, in-patient treatment 
costs, hospital care, and other types of 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.

[[Page 19620]]

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 number (1-800/838-0106), 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, by 
revising the information via the automated subgrant subdial system. 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 grant performance 
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 Subrecipients

    Audits of non-profit institutions and institutions of higher 
education must comply with the organizational audit requirements of OMB 
Circular A-133, which states that recipients who expend $300,000 or 
more during their fiscal year in federal funds during their fiscal 
year, are required to submit an organization-wide financial and 
compliance audit report within 13 months after the close of each fiscal 
year during the term of the award to their cognizant federal agency.
    State and local units of government must comply with the 
organizational audit requirements of OMB circular A-128, which states 
that recipients of $25,000 of federal funds during their fiscal year, 
are required to submit an audit report to their cognizant agency. 
Recipients who receive less than $25,000 in federal funds are exempt 
from the audit requirement.

B. Audit Costs

    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. Subrecipients may not use any VOCA funds to 
pay for administrative costs, including the cost of audits.

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 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 allow authorized representatives 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) program 
manuals and procedures governing the VOCA grant program; (2) 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) 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 Final Program Guidelines, or any 
implementing regulation or requirement, OVC may suspend or terminate 
funding to the state and/or take other appropriate action. At such 
time, states may request a hearing on the justification for the 
suspension and/or termination of VOCA funds. 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

[[Page 19621]]

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

    Dated: April 17, 1997.
Aileen Adams,
Director, Office for Victims of Crime, Office for Justice Programs.
[FR Doc. 97-10403 Filed 4-21-97; 8:45 am]
BILLING CODE 4410-18-P