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

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DEPARTMENT OF JUSTICE
Office of Justice Programs
[OJP (OVC) No. 1105]
RIN 1121-AA30

Victims of Crime Act Victim Compensation Grant Program

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

ACTION: Final Program Guidelines.

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SUMMARY: The Office for Victims of Crime (OVC), Office of Justice 
Programs (OJP), U.S. Department of Justice (DOJ) is publishing Final 
Program Guidelines to implement the victim compensation grant program 
as authorized by the Victims of Crime Act of 1984, as amended, 42 
U.S.C. 10601, et seq. (hereafter referred to as VOCA).

EFFECTIVE DATE: From October 1, 1996 (Federal Fiscal Year 1997 VOCA 
grant program), until further revised by OVC.

FOR FURTHER INFORMATION CONTACT: Jackie McCann Cleland, Director, State 
Compensation and Assistance Division, 633 Indiana Avenue NW., 
Washington, DC 20531; telephone number (202) 307-5983. (This is not a 
toll-free number.)

SUPPLEMENTARY INFORMATION: VOCA provides federal financial assistance 
to states for the purpose of compensating and assisting victims of 
crime, providing funds for training and technical assistance, and 
assisting victims of federal crimes.
    These Final Program Guidelines provide information on the 
administration and implementation of the VOCA victim compensation grant 
program as authorized in Section 1403 of VOCA, Public Law 98-473, as 
amended, codified at 42 U.S.C. 10602 and 10603b, and contain the 
following information: Summary of the Comments on the Proposed Program 
Guidelines; Background; Funding Allocation and Application Process; 
Program Requirements; Financial Requirements; Monitoring; and 
Suspension and Termination of Funding. These Final Program Guidelines 
are based on the experience gained and legal opinions rendered since 
the inception of the grant program in 1986, and are in accordance with 
VOCA. These Final Program Guidelines are all inclusive. Thus, they 
supersede any Guidelines previously issued by OVC.
    The Office of Justice Programs, Office for Victims of Crime, in 
conjunction with the Office of Policy Development, DOJ, and the Office 
of Information and Regulatory Affairs, the Office of Management and 
Budget (OMB), has determined that this rule is not a ``significant 
regulatory action'' for purposes of Executive Order 12866 and, 
accordingly, these Final Program Guidelines were not reviewed by OMB.
    In addition, it has been determined that these Final Program 
Guidelines will not have a significant economic impact on a substantial 
number of small entities; therefore, an analysis of the impact of these 
Guidelines on such entities is not required by the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq.
    The program reporting requirements described in the Program 
Requirements section have been approved by the OMB as required under 
the Paperwork Reduction Act, 44 U.S.C. 3504(h). (OMB Approval Number 
1121-0014.)

Summary of the Revisions to the 1997 Proposed Program Guidelines

    Proposed VOCA Victim Compensation Program Guidelines were 
distributed to interested individuals and organizations for the purpose 
of soliciting comments. In September, 1996, OVC asked the state VOCA 
victim compensation program administrators attending the annual 
conference of the National Association of Crime Victim Compensation 
Boards (NACVCB) for their comments. In September, OVC also mailed 
copies of the Proposed Guidelines to all of the state VOCA victim 
compensation and assistance program administrators, as well as to the 
executive directors of national victim organizations.
    OVC received comments from state VOCA victim compensation and 
assistance administrators, representatives of national victim 
organizations, and one state legislator. In total, over 18 different 
recommendations, questions, and comments were received.
    As a result of the comments from the field, recent legislative 
amendments, and modifications of applicable federal regulations, 
substantive changes were made to four sections of the Proposed Program 
Guidelines, including: the

[[Page 7051]]

Availability of Funds, the Application Process, the Program 
Requirements, and the Financial Requirements. These changes are 
summarized in the paragraphs below, and incorporated into the complete 
text of the Final Program Guidelines for Crime Victim Compensation 
Grants. The Final Program Guidelines also include several technical 
corrections that are not listed in this summary because they do not 
affect policy or implementation of the Guidelines.

I. Comments From the Field

A. Administrative Cost Provision
    1. Indirect Cost. Some respondents questioned OVC's prohibiting the 
use of these funds for indirect cost and noted that this was 
inconsistent with rules governing other OJP formula grant programs. 
Thus, this restriction has been eliminated from the ``Availability of 
Funds'' section of the Final Program Guidelines.
    2. Delivery and Quality of Services. Respondents also noted that 
VOCA compensation programs, like VOCA assistance programs need to 
measure the impact of their activities on the delivery and quality of 
services to crime victims throughout their state. Thus, the following 
activities can now be supported by VOCA victim compensation 
administrative funds:
    a. Improving coordination efforts on behalf of crime victims with 
other OJP Offices and Bureaus and with federal, state, and local 
agencies and organizations;
    b. Providing training on crime victim compensation program issues 
such as application and eligibility requirements and range of 
compensable expenses, to state, public, and nonprofit organizations 
that serve or assist crime victims such as law enforcement officials, 
victim witness coordinators, corrections personnel, social service 
workers, victim service providers, and mental health and medical 
professionals;
    c. Purchasing, printing, and/or developing applications, brochures 
and other relevant publications such as training manuals which describe 
the compensation application process, eligibility criteria, and range 
of benefits, available for crime victims;
    d. Developing protocols, policies, and procedures that promote 
coordination of victim compensation and victim assistance services and 
improve the ways crime victims are treated and served;
B. Victim Cooperation with Law Enforcement
    OVC received numerous inquires concerning the VOCA provision which 
requires, as a condition of eligibility, that a program promote victim 
cooperation with the reasonable requests of law enforcement.
    Many victims of crime cannot qualify for compensation because they 
have not complied with reporting and cooperating requirements found in 
most state statutes. There are many reasons for this, including fear of 
reprisal, a belief by the victim that the police are insensitive, 
ineffective, or biased, and other reasons. Historically, the most under 
reported crimes were rape, sexual assault, and domestic violence. 
Moreover, when many of these victims do report, they frequently miss 
the 72-hour reporting requirement used as a condition of eligibility in 
most state compensation programs.
    In light of these facts, and in response to comments from VOCA 
program administrators and other crime victim advocates, OVC has 
modified the Final Program Guidelines. Although state crime victim 
compensation programs maintain the authority and discretion to 
establish their own standards for ``reasonable cooperation,'' OVC 
encourages state compensation program staff to meet with victims and 
victim service providers to carefully review whether state statutes, 
program guidelines, and policies are responsive to the needs of crime 
victims and to determine possible barriers that might impede a victim's 
cooperation with law enforcement.
    Possible impediments include compelling health or safety reasons, 
such as apprehension regarding personal safety, fear of retaliation, 
and intimidation by the offender or others. For example, some victims 
may be reluctant to cooperate fully with law enforcement after 
receiving threats of violence or even death against themselves and 
their children from the offender.
    Age, psychological, cultural, or linguistic barriers may also 
influence the extent of victim cooperation with law enforcement. For 
instance, there may be special barriers deterring a young child or 
senior citizen from ``reasonable cooperation.'' Likewise, embarrassment 
and shame may delay the reporting of sexual assault, and cultural and 
language differences may diminish a victim's access to the criminal 
justice system.
    In setting the standard for victim cooperation with law 
enforcement, the state program should determine how much weight to give 
to these considerations.
    VOCA's ``cooperation with the reasonable requests of law 
enforcement'' requirement may be fulfilled by utilizing the following 
criteria or any other criteria the state believes is necessary to 
encourage victim cooperation with law enforcement. For example, a state 
may:
    1. Require a victim to report the crime to a law enforcement 
agency;
    2. Require a victim to report the crime to an appropriate 
governmental agency, such as child and/or adult protective services, 
family or juvenile court; or
    3. Accept proof of the completion of a medical evidentiary 
examination, such as medical reports, x-rays, medical photographs, as 
well as other clinical assessments as evidence of cooperation with law 
enforcement in cases involving sexual assault or abuse.
    Modifications to the ``victim cooperation with law enforcement'' 
language are contained in the ``Program Requirements'' section of the 
Final Program Guidelines.

II. Legislative Changes

A. The Antiterrorism and Effective Death Penalty Act of 1996 (Pub. L. 
104-132)
    The Antiterrorism and Effective Death Penalty Act of 1996 (Public 
Law 104-132) (hereinafter ``The Antiterrorism Act'), signed into law on 
April 24, 1996, contained a number of victim related provisions that 
amended VOCA. Listed below are three provisions that resulted in 
changes to the ``State Eligibility Criteria'' section of the Final 
Program Guidelines.
    1. State Eligibility Criteria/Mandatory Coverage of Terrorism 
Victims in State Compensation Statutes. The Antiterrorism Act provides 
for a new VOCA-eligibility requirement that each state must include 
``crimes involving terrorism'' in their definition of ``compensable 
crimes''. Thus, the state must offer compensation benefits to:
    a. Residents and non-residents who are injured or killed by a crime 
involving terrorism occurring within the state;
    b. Its own residents who are injured or killed in terrorist attacks 
occurring outside the United States or in a state that does not have an 
eligible crime victim compensation program.
    The law gives states until April 24, 1997 (Federal Fiscal Year 1998 
grant application) to come into compliance with this new eligibility 
requirement for receiving federal VOCA compensation grants.
    2. Means Testing. The Antiterrorism Act also prohibits any federal, 
state, or

[[Page 7052]]

local government program that uses federal funds from including victim 
compensation benefits when determining income eligibility for an 
applicant, if the applicant needs such assistance (medical or 
otherwise), in full or in part, because of the commission of a crime 
against the applicant.
    3. Prohibition Against Awards To Convicted Persons Owing Fines. The 
Antiterrorism Act prohibits states from awarding victim compensation 
benefits to any person convicted of a federal crime who is delinquent 
in paying a fine, monetary penalty, or restitution imposed for the 
offense. This provision, however, will not become effective until the 
U.S. Attorney General and the Director of the Administrative Office of 
the U.S. Courts issue a written determination that the entities 
administering federal victim programs have access to accurate and 
efficient criminal debt payment information. As of this date, no such 
determination has been made, and states are under no obligation to 
investigate or make determinations on whether a victim owes a federal 
criminal debt before awarding compensation benefits.
    The Antiterrorism Act also resulted in three changes to the 
``Availability of Funds'' section.
    a. OVC Reserve Fund. The Anti-terrorism Act authorizes the OVC 
Director to establish a reserve fund, up to $50 million, from current 
year Crime Victims Fund (Fund) deposits which are in excess of 110 
percent of the total amount deposited in the Fund during the preceding 
fiscal year. Reserve fund monies may be used for supplemental grants to 
assist victims of terrorist acts or mass violence occurring within or 
outside the U.S. The OVC Director may award reserve funds to the 
following entities:
    (1) States for providing compensation and assistance to their state 
residents, who, while outside of the borders of the United States, 
become victims of a terrorist act or mass violence. The beneficiaries, 
however, cannot be persons who are already eligible for compensation 
under the Omnibus Diplomatic Security and Antiterrorism Act of 1986. 
Individuals covered under this Act include those who are taken captive 
because of their relationship with the U.S. government as a member of 
the U.S. Civil Service, as well as other U.S. citizens, nationals, or 
resident aliens who are taken captive while rendering service to the 
U.S. similar to that of civil servants. Dependent family members of 
such persons also are covered under the Omnibus Diplomatic Security 
Act.
    (2) States' eligible crime victim compensation and assistance 
programs for providing compensation and emergency relief for the 
benefit of victims of terrorist acts or mass violence occurring within 
the U.S.; and
    (3) U.S. Attorney's Offices for use in coordination with state 
victim compensation and assistance efforts in providing relief to 
victims of terrorist acts or mass violence occurring within the U.S.
    (4) The Director of OVC may also award OVC reserve funds to 
eligible state compensation and assistance programs to offset 
fluctuation in the funds during years in which the Fund decreases and 
additional monies are needed to stabilize funding for state programs.
    b. Unobligated Grant Funds. Beginning with FFY 1997 VOCA grants, 
funds not obligated by the end of the grant period, up to a maximum of 
$500,000, will be returned to the Fund, and not to the General 
Treasury, as was the practice in previous years. Returned funds in 
excess of $500,000 in a given year shall be returned to the Treasury. 
Once any portion of a state's grant is returned to the Fund, the funds 
must be redistributed according to the formula established by VOCA and 
the Final Program Guidelines. States are encouraged to closely monitor 
the expenditure of VOCA funds throughout the grant period to avoid 
returning unobligated balances at the end of the grant period.
    c. Grant Period Extended. The Antiterrorism Act extended the VOCA 
victim compensation grant period from the year of award plus one, to 
the year of award plus two. (Subsequent legislation further extended 
the grant period to the year of award, plus three.)
B. Omnibus Appropriations Act of 1997
    This legislation was passed by Congress and signed into law by 
President Clinton in September, 1996. This Act further extended the 
grant period to the year of award plus three. This change is effective 
for all FFY 1997 grants. The Final Program Guidelines clarify that 
funds are available for obligation beginning October 1 of the year of 
the award, through September 30 of the FFY three years later. For 
example, grants awarded in November, 1996 (FFY 1997) are available for 
obligation beginning October 1, 1996 through September 30, 2000.
    This modification is contained in the ``Availability of Funds'' 
section of the Final Program Guidelines.

III. Changes in Applicable Federal Regulations

A. Mandatory Enrollment in U.S. Treasury Department's Automated 
Clearing House (ACH) Vendor Express Program
    In accordance with the Debt Collection Improvement Act of 1996, the 
U.S. Treasury Department revised its regulations regarding federal 
payments. The Final Program Guidelines have been modified to require 
that, effective July 26, 1996, all federal payments to VOCA victim 
compensation grantees must be made via electronic funds transfer.
    States that are new award recipients, or those that have previously 
received funds in the form of a paper check from the U.S. Treasury, 
must enroll in the Treasury Department's ACH Vendor Express program 
before requesting any federal funds. This means that VOCA grantees can 
no longer receive drawdowns against their awards via paper check mailed 
from the Treasury. Grant recipients must enroll in ACH for Treasury to 
electronically transfer drawdowns directly to their banking 
institutions. States that are currently on the Letter of Credit 
Electronic Certification System (LOCES) will be automatically enrolled 
in the ACH program. This modification is included in the ``Application 
Process'' section of the Final Program Guidelines.
    B. Higher Audit Threshold
    In response to suggestions made by many recipients of federal grant 
awards, including VOCA grant recipients, OMB Circular, A-133 was 
revised, raising the audit threshold to $300,000 for all organizations 
receiving federal grants. This means that those state compensation 
programs that expend $300,000 or more in federal funding within the 
state fiscal year must have an audit made in accordance with OMB 
Circular A-133, as amended. This rule is effective for all fiscal years 
that began on or after July 1, 1996.
    Previously, states that received $100,000 or more in federal 
financial assistance in any fiscal year were required to have a single 
audit for that year. States and subrecipients receiving at least 
$25,000, but less than $100,000, in a fiscal year had the option of 
performing a single audit or an audit of the federal program, and state 
and local governments receiving less than $25,000 in any fiscal year 
were exempt from audit requirements. This modification is contained in 
the ``Financial Requirements'' section of the Final Program Guidelines.

[[Page 7053]]

Guidelines for Crime Victim Compensation Grants

I. Background

    In 1984, VOCA established the Crime Victims Fund (Fund) in the U.S. 
Treasury and authorized the Fund to receive deposits from fines and 
penalties levied on criminals convicted of federal crimes. This Fund 
provides the source of funding for carrying out all of the activities 
mandated by VOCA.
    OVC makes annual VOCA crime victim compensation grants from the 
Fund to eligible states. The primary purpose of these grants is to 
supplement state efforts to provide financial assistance and 
reimbursement to crime victims throughout the Nation for costs 
associated with being a victim of a crime, and to encourage victim 
cooperation and participation in the criminal justice system. State 
crime victim compensation programs may use VOCA compensation grant 
funds to pay for eligible expenses provided by the state compensation 
statute except for property damage and property losses.
    States have the responsibility for establishing guidelines and 
procedures for applying for crime victim compensation benefits which 
meet the minimal statutory requirements outlined in VOCA and the 
requirements in these Final Program Guidelines.

II. Funding Allocation and Application Process

A. Distribution of Crime Victim Fund
    OVC administers the deposits made into the Fund for programs and 
services, as specified in VOCA. The amount of funds available for 
distribution each year is dependent upon the total deposits into the 
Fund in the preceding Federal Fiscal Year.
    The Federal Courts Administration Act of 1992 removed the cap on 
the Fund, beginning with FFY 1993 deposits. This Act also eliminated 
the need for periodic reauthorization of VOCA and the Fund. Thus, under 
current legislation, the Fund will continue to receive deposits.
    The Violent Crime Control and Law Enforcement Act of 1994 provides 
that the deposits into the Fund are to be distributed as follows:
    1. The first $3,000,000 deposited in the Fund in each fiscal year 
is available to the Administrative Office of United States Courts for 
administrative costs to carry out the functions of the judicial branch 
under Sections 3611 of Title 18, U.S. Code.
    2. The next $10,000,000 deposited in the Fund in a particular 
fiscal year:
    a. 85% shall be available to the Secretary of Health and Human 
Services for grants under Section 4(d) of the Child Abuse Prevention 
and Treatment Act for improving the investigation and prosecution of 
child abuse cases;
    b. 15% shall be available to the Director of the Office for Victims 
of Crime for grants under Section 4(d) of the Child Abuse Prevention 
and Treatment Act for Assisting Native American Indian Tribes in 
developing, establishing, and operating programs to improve the 
investigation and prosecution of child abuse cases.
    3. The remaining Fund deposits are distributed as follows:
    a. 48.5 percent is available for victim compensation grants;
    b. 48.5 percent is available for victim assistance grants;
    c. 3 percent is available for support of services to federal crime 
victims and for demonstration, training, and technical assistance 
grants to eligible crime victim programs.
B. Availability of Funds
    1. VOCA Victim Compensation Grant Formula.
    The Director of OVC will make an annual grant to eligible state 
crime victim compensation programs equal to 40 percent of the amounts 
awarded by the state program to victims of crime from state sources of 
revenue during the fiscal year preceding the year of deposits in the 
Fund (two years prior to the grant year). Note: Amounts paid to 
compensate victims for property damage or property loss cannot be 
included in a state's certification for a VOCA victim compensation 
grant award. If the amount in the Fund is insufficient to award each 
state 40 percent of its prior year's compensation payout, Section 
1403(a)(2) of VOCA provides that all states will be awarded the same 
reduced percentage of their prior year payout from the available funds.
    2. Reserve Fund.
    As the result of the provisions in the Antiterrorism Act amending 
VOCA, the OVC Director is authorized to retain funds in a reserve fund, 
up to $50 million. The Director may utilize the reserve funds in order 
to:
    a. Award supplemental grants to assist victims of terrorist acts or 
mass violence outside or within the U.S. The OVC Director may grant 
reserve funds for such purposes to the following entities:
    (1) States for providing compensation and assistance to their state 
residents, who, while inside their state borders or outside of the 
borders of the United States, become victims of a terrorist act or mass 
violence. The beneficiaries, however, cannot be persons who are already 
eligible for compensation under The Omnibus Diplomatic Security and 
Antiterrorism Act of 1986.
    Individuals covered under the Omnibus Diplomatic Security and 
Antiterrorism Act of 1986 include persons who are taken captive because 
of their relationship with the U.S. Government as a member of the U.S. 
Civil Service, as well as other U.S. citizens, nationals, or resident 
aliens who are taken captive while rendering service to the U.S. 
similar to that of civil servants. Dependent family members of such 
persons also are covered under the Omnibus Diplomatic Security Act.
    (2) States' eligible crime victim compensation and assistance 
programs for providing emergency relief, including crisis response 
efforts, training, and technical assistance for the benefit of victims 
of terrorist acts or mass violence occurring within the U.S.
    (3) U.S. Attorney's Offices for use in coordination with state 
victim compensation and assistance efforts in providing emergency 
relief to victims of terrorist acts or mass violence occurring within 
the U.S.
    b. Offset Fluctuations in Fund. The OVC director may also use the 
reserve fund to offset fluctuations in Fund deposits for state 
compensation and assistance programs in years in which the Fund 
decreases and additional monies are needed to stabilize programs.
    3. Grant Period. Federal legislation passed in 1996 also makes 
victim compensation grant funds available for expenditure throughout 
the FFY of award as well as in the next three fiscal years. The FFY 
begins on October 1 and ends on September 30. State crime victim 
compensation programs may pay compensation claims retroactively from 
October 1, even though the VOCA grant may not be awarded until later in 
the grant period.
    4. Grant Deobligations. Funds not obligated by the end of the grant 
period, up to a total of $500,000, will be returned to the Fund. Once 
any portion of a state's grant is returned to the Fund, the funds must 
be redistributed according to the rules established by VOCA and the 
Final Program Guidelines, so states are encouraged to monitor closely 
the expenditure of VOCA funds throughout the grant period.
C. Administrative Costs
    1. Purpose of Administrative Cost Allowance. Since FFY 1995, the 
VOCA has allowed up to five percent of crime victim compensation grant 
funds to be used for administering the state crime victim compensation 
grant program(s). It is in the state's discretion to use the

[[Page 7054]]

allowable five percent for program administration. However, any part of 
the allowable five percent which is not used for administrative 
purposes must be used for awards of compensation to crime victims.
    The intent of this provision of VOCA is to support and advance 
program administration in all operational areas including claims 
processing, staff development and training, public outreach, and 
program funding by supporting those activities that will improve 
program effectiveness and service to crime victims. If a state elects 
to use up to five percent of their VOCA compensation grant for 
administrative purposes, only those costs directly associated with 
administering the program, enhancing overall program operations such as 
training and public outreach regarding eligiblity requirements and 
available benefits, and ensuring compliance with federal requirements, 
can be paid with limited administrative grant funds. Further, states 
must certify that VOCA funds used for administrative purposes will not 
be used to supplant state or local funds but will be used to increase 
the amount of state funds that are available for administering the 
compensation program. For the purpose of establishing a baseline level 
of effort, states should maintain documentation as to the overall 
administrative commitment of the state prior to their use of VOCA 
administrative grant funds.
    2. Allowable Costs. Allowable administrative costs include but are 
not limited to the following: program personnel, salary and benefits; 
travel costs for attendance at state, regional, and national 
compensation training conferences; computer equipment and support 
services; audit costs; costs involved in the production and 
distribution of program brochures and posters, and other program 
outreach activities; professional fees for computer services and peer 
review of compensation claims; agency membership dues for victim 
compensation organizations; program enhancements such as toll-free 
numbers; special equipment and materials to facilitate service to 
persons with disabilities, and other reasonable costs directly related 
to administering a compensation program.
    The following activities impact the delivery and quality of 
compensation services to crime victims throughout the state and, thus, 
can be supported by administrative funds:
    a. Improving coordination efforts on behalf of crime victims with 
other OJP Offices and Bureaus and with federal, state, and local 
agencies and organizations;
    b. Providing training on crime victim compensation program issues 
such as aplication and eligibility requirements and range of 
compensable expenses, to state, public, and nonprofit organizations 
that serve or assist crime victims such as law enforcement officials, 
victim witness coordinators, corrections personnel, social service 
workers, victim service providers, and mental health and medical 
professionals;
    c. Purchasing, printing, and/or developing applications, brochures 
and other relevant publications such as training manuals which describe 
the compensation application process, eligiblity criteria, and range of 
beneifts, available for crime victims;
    d. Developing protocols, policies, and procedures that promote 
coordination of victim compensation and victim assistance services and 
improve the ways crime victims are treated and served; and
    3. Salary Costs. Staff supported by administrative funds under the 
VOCA crime victim compensation grant must work directly for the 
compensation program in the same proportion as their level of support 
from VOCA grant funds. If the staff have other functions, the 
proportion of time working on the compensation program must be 
documented using some reasonable method at regular intervals such as 
time and attendance records on all funded staff which demonstrate the 
portion of staff time spent on compensation related activities. The 
documentation must provide a clear audit trail for the expenditure of 
grant funds.
    Only staff activities directly related to compensation functions 
can be funded with VOCA administrative funds. Similarly, any equipment 
purchases or other expenditures charged to the VOCA compensation grant 
should only be charged proportionate to the percentage of time utilized 
by the compensation program.
    Temporary or periodic personnel support, such as qualified peer 
reviewers for medical and mental health claims, and data processing 
support services are also allowable. These services may be obtained 
through contract using VOCA administrative funds.
    4. Requirement to Notify OVC of Use of Administrative Funds. Those 
states that elect to utilize administrative funds under the VOCA 
compensation grant, are required to include with their annual 
application the following information:
    a. The amount of the total grant that will be used for program 
administration;
    b. An itemization of the state's projected expenditures and a 
general description of the activities that will be supported;
    c. How these activities will improve the administration of the VOCA 
program and/or improve services to crime victims.
    A state may modify projections set forth in their application by 
providing OVC a revised description of their planned use of 
administrative funds in writing, subsequent to submitting their annual 
application. However, the revised description must be reviewed prior to 
the obligation of any federal funds. Failure to notify OVC of 
modifications will prevent the state from meeting its obligation to 
reconcile its State-wide Report with its Final Financial Status Report.
D. Application Process
    1. Application for Federal Assistance. Each year, OVC issues to 
each eligible state a Program Instruction and Application Kit, which 
contains the necessary forms and detailed information required to make 
application for VOCA crime victim compensation grant funds. The amount 
for which each state may apply is included in the Application Kit. 
States shall use the Standard Form 424, Application for Federal 
Assistance, and its attachments to apply for VOCA victim compensation 
grant funds. Applications for VOCA crime victim compensation grants may 
only be submitted by the state agency designated by the Governor to 
administer the VOCA grant.
    Completed applications must be submitted on or before the stated 
deadline, as determined by OVC. If an eligible state fails to apply for 
its crime victim compensation allocation by the prescribed deadline, 
OVC will redistribute federal VOCA crime victim compensation dollars to 
the VOCA victim assistance grant program as provided by Section 
1404(a)(1) of VOCA (42 U.S.C. 10603 (a)(1)), assuming all states have 
received the statutorily prescribed 40% (percent) of their prior years 
payouts.
    In addition to submission of the Application for Federal 
Assistance, states shall submit the following information:
    a. A description of their arrangements for complying with the audit 
provisions of Circular A-133, as amended.
    b. Certifications Regarding Lobbying, Debarment, Suspension, and 
Other Responsibility Matters; Drug-Free Workplace Requirements; Civil 
Rights

[[Page 7055]]

Compliance, and any other certifications required by OJP and OVC. 
Additionally, states must complete a disclosure form specifying any 
lobbying activities that are conducted.
    c. Crime Victim Compensation Eligible State Payments Certification 
Form which is furnished by OVC. The amount certified on this Form is 
used by OVC to determine the annual federal grant award to each 
eligible state in the following year. This form must be completed and 
signed by the authorized individual within the agency designated by the 
Governor to administer the VOCA crime victims compensation grant. For 
further information concerning the state certification, see the Program 
Requirements section.
    d. An assurance that the program will comply with all applicable 
nondiscrimination requirements;
    e. An assurance that in the event a federal or state court or 
federal or state administrative agency makes a finding of 
discrimination after a due process hearing, on the grounds of race, 
color, religion, national origin, sex, or disability against the 
program, the program will forward a copy of the finding to the Office 
of Justice Programs, Office for Civil Rights (OCR);
    f. The name of the civil rights contact person who has lead 
responsibility for ensuring that all applicable civil rights 
requirements are met and who shall act as liaison in civil rights 
matters with OCR;
    g. An assurance that programs will maintain information on crime 
victims receiving services by race, national origin, sex, age, and 
disabilities, where such information is voluntarily furnished by 
claimants. A state may, at its discretion, use the following language 
when soliciting claimant responses: ``The submission of information 
regarding race/ethnic background or disabilities is strictly voluntary. 
A decision to not supply this information will not affect your 
eligibility for compensation benefits information. However, this 
information is important. We use it to study the extent to which 
members of minorities and persons with disabilities are recipients of 
compensation benefits and to determine the extent to which outreach 
efforts should be enhanced to ensure access and services to these 
populations.''
    h. A copy of the state statute authorizing the state's crime victim 
compensation program.
    2. Enrollment in Automated Clearing House. In addition to yearly 
submission of the grant application and the above-mentioned information 
and assurances, states must be enrolled in the automated clearing house 
(ACH) so that the U.S. Department of Treasury can electronically 
transfer the VOCA victim compensation grant directly to the grantee's 
banking institution. States that are new award recipients, or those 
that have previously received funds in the form of a paper check from 
the U.S. Treasury, must enroll in the Treasury Department's ACH Vendor 
Express program before requesting any federal funds. This means that 
VOCA grantees can no longer receive drawdowns against their awards via 
paper check mailed from the Treasury. Grant recipients must enroll in 
ACH for Treasury to electronically transfer drawdowns directly to their 
banking institutions. States that are currently on the Letter of Credit 
Electrocic Certification System (LOCES) will be automatically enrolled 
in the ACH program. Enrollment in ACH need only be completed once.

III. Program Requirements

A. State Eligibility Criteria
    The fundamental criteria for eligibility is the grantee must be an 
operational state-administered crime victim compensation program. The 
term ``state'' includes the District of Columbia, the Virgin Islands, 
and any other possession or territory of the United States. Although an 
authorized program that has not actually paid out compensation benefits 
would be technically eligible under Section 1403(b)(1) of VOCA, the 
program would not be entitled to a VOCA grant because it had not 
awarded any benefits that could be matched under Section 1403(a)(1). 
VOCA compensation grant funds may not be used as ``start-up'' funds for 
a new state program.
    Section 1403 of VOCA prescribes the conditions and eligibility 
criteria related to crime victim compensation grants. In order for a 
state to meet or maintain eligibility for a crime victims compensation 
grant, it must satisfy the following eligibility requirements:
    1. State Operated Compensation Program for Victims. The program 
must be operated by a state and offer compensation to victims and 
survivors of victims of ``compensable crimes,'' including crimes 
involving terrorism, drunk driving, and domestic violence. The 
Amendments to VOCA contained in the Antiterrorism Act of 1996 gives 
states until April 24, 1997 (FFY 1998 grant application) to come into 
compliance with the new eligibility conditions for receiving federal 
VOCA compensation grants.
    The term ``compensable crime'' means a crime, the victims of which 
are eligible for compensation under the state's eligible crime victim 
compensation program statute or rule. The range of expenses for which 
states may award crime victims compensation varies nationwide, although 
all states must award compensation for medical expenses, including 
mental health counseling and care; loss of wages; and funeral expenses.
    2. Means Testing. The Antiterrorism Act prohibits any federal, 
state, or local government program that uses federal funds from 
including victim compensation benefits when determining income 
eligibility for an applicant, if the applicant needs such assistance 
(medical or otherwise), in full or in part, because of the commission 
of a crime against the applicant.
    3. Prohibition Against Awarding Compensation to Those Delinquent in 
Paying Federal Criminal Fines. The Antiterrorism Act prohibits states 
from awarding victim compensation benefits to any person convicted of a 
federal crime who is delinquent in paying a fine, monetary penalty, or 
restitution imposed for the offense.
    This provision, however, will not become effective until the U.S. 
Attorney General and the Director of the Administrative Office of the 
U.S. Courts issue a written determination that the entities 
administering federally-funded victim compensation programs have access 
to accurate and efficient criminal debt payment tracking information. 
As of this date, no such determination has been made, and states are 
under no obligation to investigate or make determinations on whether a 
victim owes a federal criminal debt, before awarding compensation 
benefits.
    4. Victim Cooperation with Law Enforcement. Encouraging victims to 
cooperate with law enforcement and to report the crime is important to 
the effective functioning of the criminal justice system and to 
preventing further victimization.
    Although state crime victim compensation programs maintain the 
authority and discretion to establish their own standards for 
``reasonable cooperation,'' OVC encourages state compensation program 
staff to meet with victims and advocates to carefully review whether 
state statutes and state program guidelines and policies are responsive 
to the needs of crime victims and to determine possible barriers that 
might impede a victim's cooperation with law enforcement.
    Possible impediments include compelling health or safety reasons, 
such as apprehension regarding personal safety, fear of retaliation, 
and intimidation by the offender or others.

[[Page 7056]]

For example, some victims may be reluctant to cooperate fully with law 
enforcement after receiving threats of violence or even death against 
themselves and their children from the offender.
    Age, psychological, cultural, or linguistic barriers may also 
influence the extent of victim cooperation with law enforcement. For 
instance, there may be special barriers deterring a young child or 
senior citizen from complying fully with law enforcement. Embarrassment 
and shame may delay the reporting of sexual assault, and cultural and 
language differences may diminish a victim's access to the criminal 
justice system.
    In setting the standard for victim cooperation with law 
enforcement, the state program should determine how much weight to give 
to these considerations.
    VOCA's ``cooperation with the reasonable requests of law 
enforcement'' requirement may be fulfilled by utilizing the following 
criteria or any other criteria the state believes is necessary to 
encourage victim cooperation with law enforcement. For example, a state 
may:
    a. Require a victim to report the crime to a law enforcement 
agency;
    b. Require a victim to report the crime to an appropriate 
governmental agency, such as child and/or adult protective services, 
family court, or juvenile court; or
    c. Accept proof of the completion of a medical evidentiary 
examination, such as medical reports, x-rays, medical photographs, as 
well as other clinical assessments as evidence of cooperation with law 
enforcement in cases involving sexual assault or abuse.
    5. Nonsupplantation. The state must certify that grants received 
under this section will not be used to supplant state funds otherwise 
available to provide crime victim compensation or to administer the 
state crime victim compensation program.
    The nonsupplantation provision is intended to assure that states 
use VOCA funds to augment, not replace, otherwise available state 
funding for crime victim compensation. More specifically, the states 
may not decrease their financial commitment to crime victim 
compensation solely because they are receiving VOCA funds for the same 
purpose.
    6. Compensation for Residents Victimized Outside Their Own State. 
The state must provide compensation to residents of the state who are 
victims of crimes occurring outside the state, if the crimes would be 
compensable had they occurred inside that state; and the crimes 
occurred in a state not having an eligible crime victim compensation 
program, or occurred outside the U.S. (If the compensable crime is 
terrorism as defined in Section 2331 of title 18 of the U.S. Code). The 
state must make these awards according to the same criteria used to 
make awards to those who are victimized while in the state.
    This provision is intended to cover those residents of a state who 
are victimized in a state which does not have an eligible crime victims 
compensation program for which the victim qualifies. In such instances, 
the victim would be eligible to apply for crime victim compensation 
from the State in which he or she resides.
    7. Compensation for Non-residents of a State. The state must make 
compensation awards to victims who are non-residents of the state 
according to the same criteria used to make awards to victims who are 
residents of such state.
    Eligibility for VOCA funds requires the state program to extend its 
coverage to all non-residents victimized in the state. Note: For the 
purposes of this provision, the term ``non-resident'' must, at a 
minimum, include anyone who is a resident in one state but victimized 
in another. A state may, at its discretion, broaden its definition of 
non-resident to include anyone victimized in the state regardless of 
whether the victim is a United States resident.
    This provision is intended to ensure that non-residents of a state, 
who are victimized in a state that has an eligible compensation 
program, are provided the opportunity to apply for and receive the same 
compensation benefits that are available to residents of the state. The 
provision of reciprocal agreements with certain other states will not 
suffice to meet these criteria.
    8. Victims of Federal Crime. The state must provide compensation to 
victims of federal crimes occurring within the state on the same basis 
that such program provides compensation to victims of state crimes.
    For example, a victim of a rape, occurring on a federal 
installation or Indian reservation inside the state, must be afforded 
the same benefits that would be available to the victim if the rape 
were classified as a crime against the state. This provision is 
intended to cover those individuals victimized on military 
installations, national parks and highways, Native American 
reservations, and under other circumstances where Federal jurisdiction 
exists since there is no federal compensation program which provides 
benefits to victims covered under federal jurisdiction.
    9. Unjust Enrichment. Except pursuant to rules issued by the 
compensation program to prevent unjust enrichment of the offender, the 
state cannot deny compensation to any victim because of that victim's 
familial relationship to the offender, or because of the sharing of a 
residence by the victim and the offender.
    Unjust enrichment, as the basis for denying crime victims 
compensation, must be based upon written rules issued by the state 
crime victims compensation program. ``Rules'' mean either written 
policies or directives developed and distributed by state crime victim 
compensation programs or rules adopted by legislative or administrative 
bodies. Such rules cannot have the effect of denying compensation to a 
substantial percentage of domestic violence victims. The rules relating 
to unjust enrichment should be applicable to all claims for 
compensation although it is recognized that domestic violence cases 
have the greatest potential for unjust enrichment.
    In general, programs must balance the goals of making compensation 
benefits available to victims and preventing unjust enrichment of 
offenders. State programs are strongly encouraged to work with domestic 
violence coalitions and representatives to this end.
    In developing rules, the states are encouraged to consider the 
following:
    a. Legal responsibilities of the offender to the victim under the 
laws of the state and collateral resources available to the victim from 
the offender. For example, legal responsibilities may include court-
ordered restitution or requirements for spouse and/or family support 
under the domestic or marital property laws of the state. Collateral 
resources may include insurance or pension benefits available to the 
offender to cover the costs incurred by the victim as a result of the 
crime. However, as with other crimes, victims of domestic violence 
should not be penalized when collateral sources of payment are not 
viable, e.g., when the offender refuses to, or cannot, pay restitution 
or other civil judgments within a reasonable period of time or when the 
offender otherwise impedes direct or third party (i.e., insurance) 
payments.
    b. Payments to victims of domestic violence which benefit offenders 
in only a minimal or inconsequential manner would not be considered 
unjust enrichment. To deny payments, in some instances, could serve to 
further victimize the claimant. For example, denial of medical or 
dental expenses solely because the offender has legal responsibility 
for the charges, but is

[[Page 7057]]

unwilling, or unable to pay them, could result in the victim's 
inability to receive treatment.
    c. Consultation with social services and other concerned 
governmental entities, as well as with private organizations that 
support and advocate on behalf of domestic violence victims.
    d. The special needs of child victims of criminal violence 
especially when the perpetrator was the parent who may or may not have 
lived in the same residence.
    10. Other Information Requested by the OVC Director. The state must 
provide such other information and assurances as the Director of OVC 
may reasonably require.
    11. Payor of Last Resort. When a victim is eligible to receive 
benefits from a federal program or federally financed state or local 
program, such as Medicaid, the state compensation program shall not pay 
the costs that the federal or federally financed programs covers. 
Additionally, the federal or federally financed program shall make its 
payments without regard to the existence of the crime victim 
compensation program. The compensation program is the payor of last 
resort with regard to federal or federally financed programs.
    OVC encourages state grantees to coordinate their VOCA assistance 
and compensation activities to ensure a continuum of services for crime 
victims. Coordination may include activities such as: planning 
meetings; training activities for direct service providers on the 
general parameters of the state compensation agency's program (e.g., 
eligibility criteria, completion of claims, and time frames for 
receiving compensation); providing information on VOCA-funded victim 
assistance services within the state; and developing joint guidance, 
where applicable, on third-party payments to VOCA assistance 
organizations.
    OVC also requires state grantees to coordinate their activities 
with the Victim/Witness Coordinator staff within U.S. Attorney Offices 
to ensure that the Coordinators are aware of available resources for 
victims of federal crime.
B. State Certifications
    Guidelines on amounts to be included as well as amounts to be 
excluded in a state's certification of payments of crime victims 
compensation from state funding sources are furnished below:
    1. Program Revenue. States must report on the certification form 
all sources of state revenue available to the crime victims 
compensation program during the Federal Fiscal Year. In some instances, 
funds are made available to the crime victims compensation program from 
other departments or agencies, from supplemental appropriations, 
donations, or unspent funds carried over from prior years. All state 
funds which are available during the Federal Fiscal Year should be 
reported. The amount of certified revenue, excluding VOCA funds, but 
including all other sources, including carried over funds, must meet or 
exceed the amount of certified payments to crime victims.
    2. Amounts to Be Included. The total amount to be certified by the 
state program must include only those amounts paid from state funding 
sources to or on behalf of crime victims during the Federal Fiscal Year 
(October 1 to September 30).
    3. Compensable Expenses. The range of expenses for which states may 
award crime victims compensation varies nationwide, although all states 
must award compensation for medical expenses, including mental health 
counseling and care; loss of wages; and funeral expenses. Note: The 
term ``medical expenses'' includes, to the extent provided under the 
state crime victim compensation program statute, expenses for 
eyeglasses and other corrective lenses; dental services, devices, and 
prosthetic devices; and for services rendered in accordance with a 
method of healing recognized by the law of the state. ``Mental health 
counseling and care'' means the assessment, diagnosis, and treatment of 
an individual's mental and emotional functioning that is required to 
alleviate psychological trauma resulting from a compensable crime. Such 
intervention must be provided by a person who meets such standards as 
may be set by the state for victim mental health counseling and care.
    Compensable expenses to be included in the annual certification 
must be authorized by state statute or rule, providing there is rule 
making authority in state law. States may include expenses, not 
specifically identified in VOCA, such as pain and suffering; crime 
scene clean up; replacement costs for clothing and bedding held as 
evidence; annuities for child victims for loss of support; medically-
necessary building modification; medically-necessary devices; and 
attorney fees related to a victim's claim for compensation.
    States may also include payments related to forensic sexual assault 
examinations, even if the victim did not report the crime to law 
enforcement if such payments are made from funds administered by the 
compensation program and are allowable under the state's statute or 
administrative rules.
    4. Amounts to Be Excluded. States must exclude, in the 
certification, VOCA grant funds, compensation for property losses or 
property damage, audit costs, personnel costs, and any other program 
administrative costs.
    5. Applicable Credits. Any ``applicable credits'' must be deducted 
from the state certification. The term ``applicable credits'' refers to 
those receipts or reduction of expenditures, which offset or reduce 
expense items that are allocable to a particular crime victim 
compensation claim. Typical examples of applicable credits in state 
crime victims compensation programs include funds received through a 
state's subrogation interest in a claimant's civil law suit recovery, 
restitution, refunds, or other reimbursements. Refunds include amounts 
from overpayment, erroneous payments made to claimants, uncashed 
checks, etc. Additional guidance regarding applicable credits can be 
found in OMB Circular A-87, ``Cost Principles for State and Local 
Governments.''
    States must determine how to account for both the receipt and 
expenditure of restitution and refunds. Note: A state is not required 
to reduce its certified payment figure by the amount of restitution 
recoveries received by the state which are not directly related to the 
payment of crime victim compensation benefits, nor when such 
reimbursements were from payments to victims prior to receiving a VOCA 
award.
    6. Recovery Costs. Salary costs for personnel directly involved in 
recovery efforts, which are directly attributable to the recovery of 
restitution, refunds, and other reimbursements, may be offset against 
the amount of income received from such reimbursement. Expenses shall 
be limited to the percentage of those salaries incurred by the state 
for employees whose primary responsibilities (not less than 75 percent 
of their time) are directly and specifically related to recovering 
restitution and other reimbursements. Recovery costs can not be claimed 
for employees whose salary is derived from federal administrative grant 
funds.
    7. Source of Payments to Crime Victims. There is no financial 
requirement that state compensation programs identify the source of 
individual payments to crime victims as either federal or state 
dollars, nor is there any requirement that restitution recoveries or 
other refunds be tracked to federal or state dollars paid out to the 
victim.

[[Page 7058]]

C. Incorrect Certifications
    If it is determined that a state has made an incorrect 
certification of payments of crime victims compensation from state 
funding sources and a VOCA crime victim compensation grant is awarded 
in error, one of the following two courses of action will be taken:
    1. Over Certification. In the event that an over certification 
comes to the attention of OVC or the Office of the Comptroller, OJP, 
the necessary steps will be taken to recover funds which were awarded 
in error. OVC does not have the authority to permit states to keep 
amounts they were not entitled to as a result of overcertification.
    2. Under Certification. If a state under-certifies amounts paid to 
crime victims, OVC will not supplement payments to the state in a 
subsequent year to correct the state's error. Once OVC awards funds in 
a given FFY, there are no excess funds available to remedy errors of 
this nature.
D. Program Reporting Requirements
    1. Annual Performance Report. States receiving VOCA crime victims 
compensation grant funds are required to submit an Annual Performance 
Report that is provided by OVC. The Report requests specific 
information about claims for compensation, such as types of crimes 
compensated, including terrorism, drunk driving and domestic violence, 
disposition of claims, payments for compensable expenses, and use of 
administrative and training funds. The Performance Report covers the 
Federal Fiscal Year ending September 30 and is due to OVC by December 
30 of the same year.
E. Additional Requirements
    1. Civil Rights--Prohibition of Discrimination for Recipients of 
Federal Funds. No person in any state shall, on the grounds of race, 
color, religion, national origin, sex, or disability be excluded from 
participation in, be denied the benefits of, be subjected to 
discrimination under, or denied employment in connection with any 
program or activity receiving federal financial assistance, pursuant to 
the following statutes and regulations: Section 809(c), Omnibus Crime 
Control and Safe Streets Act of 1968, as amended, 42 U.S.C. 3789d, and 
Department of Justice Nondiscrimination Regulations, 28 CFR Part 42, 
Subparts C, D, E, and G; Title VI of the Civil Rights Act of 1964, as 
amended, 42 U.S.C. 2000d, et seq.; Section 504 of the Rehabilitation 
Act of 1973, as amended, 29 U.S.C. 794; Subtitle A, Title II of the 
Americans with Disabilities Act of 1990, 42 U.S.C. 12101, et seq.; and 
Department of Justice regulations on disability discrimination, 28 CFR 
Part 35 and Part 39; Title IX of the Education Amendments of 1972, as 
amended, 20 U.S.C. 1681-1683; and the Age Discrimination Act of 1975, 
as amended, 42 U.S.C. 6101, et seq.
    2. Confidentiality of Research Information. Except as otherwise 
provided by law, no recipient of monies under VOCA shall use or reveal 
any research or statistical information gathered under this program by 
any person, and identifiable to any specific private person, for any 
purpose other than the purpose for which such information was obtained, 
in accordance with VOCA. Such information, and any copy of such 
information, shall be immune from legal process and shall not, without 
the consent of the person furnishing such information, be admitted as 
evidence or used for any purpose in any action, suit, or other 
judicial, legislative, or administrative proceeding. [See Section 
1407(d) of VOCA, codified at 42 U.S.C. 10604(d)].
    This provision is intended, among other things, to assure the 
confidentiality of information provided by crime victims to employees 
of VOCA-funded victim compensation programs. However, there is nothing 
in VOCA or its legislative history to indicate that Congress intended 
to override or repeal, in effect, a state's existing law governing the 
disclosure of information, which is supportive of VOCA's fundamental 
goal of helping crime victims. For example, this provision would not 
act to override or repeal, in effect, a state's existing law pertaining 
to the mandatory reporting of a suspected child abuse. See Pennhurst 
State School and Hospital v. Halderman, et al., 451 U.S. 1 (1981).

IV. Financial Requirements

    As a condition of receiving a grant, states agree to insure 
adherence to the general and specific requirements as set forth in the 
``OJP Financial Guide'' and applicable OMB Circulars and Common Rules. 
This includes the maintenance of books and records in accordance with 
generally accepted government accounting principles. States further 
agree to identify their state fiscal year and federal cognizant audit 
agency. This section describes the payment of grant funds, termination 
of advanced funding; financial status reports, and audit requirements.
A. Audit Responsibilities for States
    State compensation programs that expend $300,000 or more in federal 
financial assistance within the state's fiscal year are required to 
have an audit in accordance with OMB Circular A-133, as amended. State 
and local governments expending less than $300,000 in their fiscal year 
are exempt from audit requirements. This rule is effective for all 
fiscal years that began on or after July 1, 1996.
B. Audit Costs
    Although under OMB Circular A-133 audit costs are generally 
allowable charges under federal grants, audit costs incurred at the 
grantee level are determined to be an administrative expense and may be 
paid with the allowable five percent for administration. Any of the 
VOCA grant monies used for administrative purposes cannot be included 
in the state-certified payout.
C. Financial Status Report for States
    Financial Status Reports (269A) are required from all state 
agencies. A Financial Status Report shall be submitted to the Office of 
the Comptroller for each calendar quarter in which the grant is active. 
This Report is due even when no obligations or expenditures were 
incurred during the reporting period. Financial Status Reports shall be 
submitted to the Office of the Comptroller, by the state, within 45 
days after the end of each calendar quarter. Calendar quarters end 
March 31, June 30, September 30, and December 31. A Final Financial 
Status Report is due 120 days after the end of the VOCA grant, no later 
than January 31.
D. Termination of Advance Funding
    If the state grantee receiving cash advances by direct Treasury 
deposit demonstrates an unwillingness or inability to establish 
procedures that will minimize the time elapsing between cash advances 
and disbursements, OJP may terminate advance funding and require the 
state to finance its operations with its own working capital. Payments 
to the state will then be made to the state by the ACH Vendor Express 
method to reimburse the grantee for actual cash disbursements. It is 
essential that the grantee organization maintain a minimum of cash on 
hand and that drawdowns of cash are made only when necessary for 
disbursements.

[[Page 7059]]

V. Monitoring

A. Office of the Comptroller/General Accounting Office/Office of the 
Inspector General
    The Office of the Comptroller, the General Accounting Office, and 
the Office of the Inspector General conduct periodic reviews of the 
financial policies and procedures and records of VOCA state grantees. 
Therefore, upon request, states must give authorized representatives 
the right to access and examine all records, books, papers, case files, 
or other documents related to the grant.
B. Office for Victims of Crime
    OVC conducts on-site monitoring in which each state grantee is 
visited a minimum of once every three years. While on site, OVC 
personnel will review various documents and files such as (1) financial 
and program manuals and procedures governing the crime victim 
compensation grant program; (2) financial records, reports, and audit 
reports for the state grantee; (3) the state's compensation 
application, procedures, and guidelines for awarding compensation 
benefits; (4) a random sampling of victim compensation claim files; and 
(5) all other applicable state records and files.

VI. Suspension and Termination of Funding

    If, after notice to the grantee, OVC finds that a state has failed 
to comply substantially with VOCA, the OJP Financial Guide (effective 
edition), the Final Program Guidelines, or any implementing regulation 
or requirement, OVC may suspend or terminate funding to the state and/
or take other appropriate action. Under the procedures of 28 CFR Part 
18 (7-1-96-Edition), states may request a hearing on the justification 
for the suspension and/or termination of VOCA funds.

    Dated: February 10, 1997.
Marti Speights,
Director of Special Projects Division, Office for Victims of Crime, 
Office for Justice Programs.
[FR Doc. 97-3715 Filed 2-13-97; 8:45 am]
BILLING CODE 4410-18-P
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