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[Federal Register Volume 62, Number 32 (Tuesday, February 18, 1997)]
[Notices]
[Pages 7256-7268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3836]

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DEPARTMENT OF JUSTICE
Office of Justice Programs
[OJP (OVC) No. 1113]
RIN 1121-ZA60

Victims of Crime Act Victim Assistance Grant Program

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

ACTION: Proposed program guidelines.

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

DATES: These guidelines are effective from October 1, 1996 (Federal 
Fiscal Year 1997 VOCA grant program), until further revised by OVC. The 
comments period on these guidelines closes on March 4, 1997.

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

[[Page 7257]]

Compensation and Assistance Division, 633 Indiana Avenue, NW., 
Washington, DC 20531; telephone number (202) 307-5983. (This is not a 
toll-free number.)

SUPPLEMENTARY INFORMATION: The comment period for the following 
Proposed Guidelines for the Victim of Crime Act (VOCA) Victim 
Assistance Grant Program will end 14 days after the date of this 
publication. The Office for Victims of Crime (OVC) is expediting the 
comment period for two reasons. First, a longer comment period will 
impose a burden on many states, who having received their largest-ever 
VOCA grant awards, are now reluctant to begin distributing the funds to 
victim assistance agencies without formal direction, in the form of 
Program Guidelines, from OVC. Second, OVC began the process of 
soliciting suggestions for modifying the current Final Guidelines 
several months ago. In the interest of reaching a more diverse audience 
and making the review and comment process more convenient for victim 
service advocates and providers, in late November of 1996, OVC mailed 
copies of the Proposed Guidelines to all of the state VOCA victim 
assistance and victim compensation program administrators, as well as 
to the representatives of approximately 20 national crime victim 
advocacy organizations. In early December, the Proposed Guidelines were 
posted on the Internet for review and comment by all interested 
parties. OVC already has received over thirty recommendations, 
questions, and comments from VOCA administrators and other victim 
advocates via telephone, mail, fax, and e-mail.
    VOCA authorizes federal financial assistance to states for the 
purpose of compensating and assisting victims of crime, providing funds 
for training and technical assistance, and assisting victims of federal 
crimes. These Program Guidelines provide information on the 
administration and implementation of the VOCA victim assistance grant 
program as authorized in section 1404 of VOCA, Public Law 98-473, as 
amended, codified at 42 U.S.C. 10603, and contain information on the 
following: Summary of the Comments to the Proposed Final Program 
Guidelines; Background; Allocation of VOCA Victim Assistance Funds; 
VOCA Victim Assistance Application Process; Program Requirements; 
Financial Requirements; Monitoring; and Suspension and Termination of 
Funding. The Guidelines are based on the experience gained and legal 
opinions rendered since the inception of the grant program in 1986, and 
are in accordance with VOCA. These Proposed Program Guidelines are all 
inclusive. Thus, they supersede any Guidelines previously issued by 
OVC.
    The Office of Justice Programs, Office for Victims of Crime, in 
conjunction with the Office of Policy Development, DOJ, and the Office 
of Information and Regulatory Affairs, the Office for Management and 
Budget (OMB), has determined that these Guidelines do not represent a 
``significant regulatory action'' for the purposes of Executive Order 
12866 and, accordingly, these Program Guidelines were not reviewed by 
OMB.
    In addition, these Program Guidelines will not have a significant 
economic impact on a substantial number of small entities; therefore, 
an analysis of the impact of these rules on such entities is not 
required by the Regulatory Flexibility Act, codified at 5 U.S.C. 601, 
et seq.
    The program reporting requirements described in the Program 
Requirements section have been approved by OMB as required under the 
Paperwork Reduction Act, 44 U.S.C. 3504(h). (OMB Approval Number 1121-
0014)

Summary of the Revisions to the 1997 Program Guidelines

    As the result of the comments from the field, recent legislative 
amendments to VOCA, and modifications of applicable federal 
regulations, substantive changes were made to five sections of the 
Guidelines, including: The Availability of Funds, the Application 
Process, the Program Requirements, the Program Reporting Requirements, 
and the Financial Requirements. These changes are summarized in the 
paragraphs below, and incorporated into the complete text of the 
Proposed Program Guidelines for Victim Assistance Grants. The Program 
Guidelines also include several technical corrections that are not 
listed in this summary because they do not affect policy or 
implementation of the Guidelines.

A. Comments From the Field

    Over time, OVC received comments from VOCA state administrators, 
victim service providers, representatives of national victim 
organizations, and other victim advocates regarding the current Program 
Guidelines, issued in October 1995. In total, over 15 different 
recommendations, questions, and comments were received. These comments 
were helpful in formulating the revisions constituting the subject 
Proposed Victim Assistance Guidelines.
    1. Definition of Elder Abuse. Under Section IV. Program 
Requirements, Part A. Grantee Eligibility Requirements--the definition 
of ``elder abuse'' has been modified, so that it now focuses on 
describing the offense, rather than on characterizing the victim. 
Hence, the definition, ``abuse of vulnerable adults,'' has been changed 
to ``the mistreatment of older persons through physical, sexual, or 
psychological violence; neglect; or economic exploitation and fraud.''
    2. Identifying Underserved Victims of Crime. Under Section IV. 
Program Requirements, Part A. Grantee Eligibility Requirements, the 
language of the Proposed Guidelines has been modified to encourage 
states to identify gaps in available services, not just by the types of 
crimes committed, but also by specific demographic profiles such as 
those victims living in rural or remote areas, or in inner cities, or 
by the specific characteristics of the victim population needing 
services, such as disabled or elderly victims.
    3. New Programs. There was confusion about OVC's intention 
regarding the funding of new crime victim programs. Hence, language has 
been added to the Proposed Guidelines clarifying that new programs that 
have not yet demonstrated a record of providing services may be 
eligible to receive VOCA funding if they can demonstrate financial 
support from non-federal sources.
    4. Unfunded Mandates. Recently, many state legislatures have passed 
laws establishing important new rights for crime victims. OVC wishes to 
clarify that VOCA funds may be used for the purpose of implementing 
these laws. Therefore, restrictive language from the previous 
Guidelines has been eliminated. Please note that VOCA crime victim 
assistance funds still may not be used to supplant state and local 
funds that would otherwise be available for crime victim services.
    5. State Grantees as Subrecipients. Under Section IV. Program 
Requirements, Part C. Eligible Subrecipient Organizations, the Program 
Guidelines have been modified with regard to subgrants to state 
grantees. Since the intention of the VOCA grant program is to support 
and enhance the crime victim services provided by community agencies, 
state grantees that meet the definition of an eligible subrecipient 
organization may not award themselves more than 10 percent of their 
annual VOCA award.
    6. Emergency Legal Assistance. Under Section IV, Program 
Requirements, Part D. Services, Activities, and Costs at the 
Subrecipient Level, the Proposed Guidelines have been modified to allow 
subgrantees discretion in providing

[[Page 7258]]

victims of domestic violence with legal assistance such as child 
custody and visitation proceedings ``when such actions are directly 
connected to family violence cases and pertain to the health and safety 
of the victim.'' The allowable ``Contracts for Professional Services'' 
section also has been modified to include assistance with emergency 
custody and visitation proceedings.
    7. Advanced Technologies. In the Proposed Guidelines, OVC offers 
the states clarification and further guidance on the use of VOCA funds 
for advanced technologies such as computers and victim notification 
systems.
    8. Electronic Submission of Subgrant Award Reports. In the interest 
of meeting OVC's mandate to collect and maintain accurate and timely 
information on the disbursal of VOCA funds, state grantees will now be 
required to transmit their Subgrant Award Report information to OVC via 
the automated subgrant dial-in system. Beginning with the Federal 
Fiscal Year (FFY) 1997 VOCA grant award, OVC will no longer accept 
manual submission of the Subgrant Award Reports. By utilizing the 
subgrant dial-in 1-800 number, grantees can access the system without 
incurring a long distance telephone charge. States and territories 
outside of the continental U.S. are exempt from the requirement to use 
the subdial system, but these grantees must complete and submit the 
Subgrant Award Report form, OJP 7390/2A, for each VOCA subrecipient.

B. Legislative Changes

    1. The Antiterrorism and Effective Death Penalty Act of 1996 (Pub. 
L. 104-132).
    The Antiterrorism and Effective Death Penalty Act of 1996 (Pub. L. 
104-132) (hereafter, ``The Antiterrorism Act''), was signed into law on 
April 24, 1996. This legislation contained a number of victim related 
provisions that amended VOCA, including four provisions concerning the 
``Availability of (VOCA victim assistance) Grant Funds.''
    a. The Antiterrorism Act increases the base amount for victim 
assistance grants from $200,000 to $500,000. The territories of 
Northern Mariana Islands, Guam, and American Samoa will continue to 
receive a base amount of $200,000, with the Republic of Palau's share 
governed by the Compact of Free Association between the U.S. and the 
Republic of Palau.
    b. OVC Reserve Fund. The Antiterrorism Act authorizes the OVC 
Director to establish a reserve fund, up to $50 million. Reserve fund 
monies may be used for supplemental grants to assist victims of 
terrorist acts or mass violence occurring within or outside the U.S. 
The OVC Director may award reserve funds to the following entities:
    (1) States for providing compensation and assistance to their state 
residents, who, while outside of the borders of the U.S., become 
victims of a terrorist act or mass violence. The beneficiaries, 
however, cannot be persons who are already eligible for compensation 
under the Omnibus Diplomatic Security and Antiterrorism Act of 1986. 
Individuals covered under the Omnibus Diplomatic Security Act include 
those who are taken captive because of their relationship with the U.S. 
government as a member of the U.S. Civil Service, as well as other U.S. 
citizens, nationals, or resident aliens who are taken captive while 
rendering service to the U.S. similar to that of civil servants. 
Dependent family members of such persons also are covered under the 
Act.
    (2) Eligible state crime victim compensation and assistance 
programs for providing compensation and emergency relief for the 
benefit of victims of terrorist acts or mass violence occurring within 
the U.S.
    (3) U.S. Attorneys' Offices for use in coordination with state 
victim compensation and assistance efforts in providing relief to 
victims of terrorist acts or mass violence occurring within the U.S.
    (4) Eligible state compensation and assistance programs to offset 
fluctuation in the funds during years in which the Fund decreases and 
additional monies are needed to stabilize funding for state programs.
    c. Unobligated Grant Funds. Beginning with FFY 1997 VOCA grants, 
funds not obligated by the end of the grant period, up to a maximum of 
$500,000, will be returned to the Fund, and not to the General 
Treasury, as was the practice in previous years. Returned funds in 
excess of $500,000 in a given year shall be returned to the Treasury. 
Once any portion of a state's grant is returned to the Fund, the funds 
must be redistributed according to the formula established by VOCA and 
the Proposed Program Guidelines. States are encouraged to monitor 
closely the expenditure of VOCA funds throughout the grant period to 
avoid returning grant monies to OVC and/or the Treasury.
    d. Grant Period Extended. The Antiterrorism Act extended the VOCA 
victim assistance grant period from the year of award plus one, to the 
year of award plus two. (Subsequent legislation further extended the 
grant period to the year of award, plus three.)
    2. Omnibus Consolidated Appropriations Act of 1997. The Omnibus 
Consolidated Appropriations Act of 1997 (Pub. L. 104-208) was passed by 
Congress and signed into law by President Clinton in September 30, 
1996. This Act further extended the grant period to the year of award 
plus three. This change is effective for all FFY 1997 grants. The 
Proposed Program Guidelines clarify that funds are available for 
obligation beginning October 1 of the year of the award, through 
September 30 of the FFY three years later. For example, grants awarded 
in November, 1996 (FFY 1997) are available for obligation beginning 
October 1, 1996 through September 30, 2000.
    This modification is contained in the ``Availability of Funds'' 
section of the Proposed Program Guidelines.

C. Changes in Applicable Federal Regulations

    1. Mandatory Enrollment in U.S. Treasury Department's Automated 
Clearing House (ACH) Vendor Express Program. In accordance with the 
Debt Collection Improvement Act of 1996, the U.S. Treasury Department 
revised its regulations regarding federal payments. The Proposed 
Program Guidelines have been modified to require that, effective July 
26, 1996, all federal payments to state VOCA victim assistance and 
compensation grantees must be made via electronic funds transfer.
    States that are new award recipients or those that have previously 
received funds in the form of a paper check from the U.S. Treasury, 
must enroll in the Treasury Department's ACH Vendor Express program 
(through OJP) before requesting any federal funds. This means that VOCA 
grantees can no longer receive drawdowns against their awards via paper 
check mailed from the Treasury. Grant recipients must enroll in ACH for 
Treasury to electronically transfer drawdowns directly to their banking 
institutions. States that are currently on the Letter of Credit 
Electronic Certification System (LOCES) will be automatically enrolled 
in the ACH program. Enrollment forms will be included in the award 
packet. Enrollment in ACH need only be completed once. This 
modification is included in the ``Application Process'' section of the 
Proposed Program Guidelines.
    2. Higher Audit Threshold. In response to suggestions made by many 
recipients of federal grant awards, including VOCA grant recipients, 
OMB Circular A-133 is being revised. Until the revisions are final, 
state and local government agencies that receive $100,000 or more in 
federal funds during their state fiscal year are required to submit an 
organization-wide financial

[[Page 7259]]

and compliance audit report. Recipients of $25,000 to $100,000 in 
federal funds are required to submit a program-or organization-wide 
audit report as directed by the granting agency. Recipients receiving 
less than $25,000 in federal funds are not required to submit a 
program-or organization-wide financial and compliance audit report for 
that year. Nonprofit organizations and institutions of higher education 
that expend $300,000 or more in federal funds per year shall have an 
organization-wide financial and compliance audit. Grantees must submit 
audit reports within 13 months after their state fiscal year ends.
    Previously, states that received $100,000 or more in federal 
financial assistance in any fiscal year were required to have a single 
audit for that year. States and subrecipients receiving at least 
$25,000, but less than $100,000, in a fiscal year had the option of 
performing a single audit or an audit of the federal program, and state 
and local governments receiving less than $25,000 in any fiscal year 
were exempt from audit requirements. This modification is contained in 
the ``Financial Requirements'' section of the Proposed Program 
Guidelines.

Guidelines for Crime Victim Assistance Grants

I. Background

    In 1984, VOCA established the Crime Victims Fund (Fund) in the U.S. 
Treasury and authorized the Fund to receive deposits of fines and 
penalties levied against criminals convicted of federal crimes. This 
Fund provides the source of funding for carrying out all of the 
activities authorized by VOCA.
    OVC makes annual VOCA crime victim assistance grants from the Fund 
to states. The primary purpose of these grants is to support the 
provision of services to victims of violent crime throughout the 
Nation. For the purpose of these Program Guidelines, services are 
defined as those efforts that (1) respond to the emotional and physical 
needs of crime victims; (2) assist primary and secondary victims of 
crime to stabilize their lives after a victimization; (3) assist 
victims to understand and participate in the criminal justice system; 
and (4) provide victims of crime with a measure of safety such as 
boarding-up broken windows and replacing or repairing locks.
    For the purpose of the VOCA crime victim assistance grant program, 
a crime victim is a person who has suffered physical, sexual, or 
emotional harm as a result of the commission of a crime.
    VOCA gives latitude to state grantees to determine how VOCA victim 
assistance grant funds will best be used within each state. However, 
each state grantee must abide by the minimal requirements outlined in 
VOCA and these Program Guidelines.

II. Allocation of VOCA Victim Assistance Funds

A. Distribution of the Crime Victims Fund

    OVC administers the deposits made into the Fund for programs and 
services, as specified in VOCA. The amount of funds available for 
distribution each year is dependent upon the total deposits into the 
Fund during the preceding Federal Fiscal Year (October 1 through 
September 30).
    The Federal Courts Administration Act of 1992 removed the cap on 
the Fund, beginning with FFY 1993 deposits. This Act also eliminated 
the need for periodic reauthorization of VOCA and the Fund. Thus, under 
current legislation, the Fund will continue to receive deposits.
    Pursuant to section 1402 (d) of VOCA, deposits into the Fund will 
be distributed as follows:
    1. The first $3,000,000 deposited in the Fund in each fiscal year 
is available to the Administrative Office of the U.S. Courts for 
administrative costs to carry out the functions of the judicial branch 
under sections 3611 and 3612 of Title 18 U.S. Code.
    2. Of the next $10,000,000 deposited in the Fund in a particular 
fiscal year,
    a. 85% shall be available to the Secretary of Health and Human 
services for grants under Section 4(d) of the Child Abuse Prevention 
and Treatment Act for improving the investigation and prosecution of 
child abuse cases;
    b. 15% shall be available to the Director of the Office for Victims 
of Crime for grants under section 4(d) of the Child Abuse Prevention 
and Treatment Act for assisting Native American Indian tribes in 
developing, establishing, and operating programs to improve the 
investigation and prosecution of child abuse cases.
    3. Of the remaining amount deposited in the Fund in a particular 
fiscal year,
    a. 48.5% shall be available for victim compensation grants,
    b. 48.5% shall be available for victim assistance grants; and
    c. 3% shall be available for demonstration projects and training 
and technical assistance services to eligible crime victim assistance 
programs and for the financial support of services to victims of 
federal crime by eligible crime victim assistance programs.

B. Availability of Funds

    1. VOCA Victim Assistance Grant Formula. All states, the District 
of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, 
Guam, American Samoa, Northern Mariana Islands, and Palau (hereinafter 
referred to as ``states'') are eligible to apply for, and receive, VOCA 
victim assistance grants. See section 1404(d)(1) of VOCA, codified at 
42 U.S.C. 10603(d)(1).
    2. Reserve Fund. As the result of provisions in the Antiterrorism 
Act amending VOCA, the OVC Director is authorized to retain funds in a 
reserve fund, up to $50 million. The Director may utilize the reserve 
funds in order to:
    a. Award supplemental grants to assist victims of terrorist acts or 
mass violence outside or within the U.S. The OVC Director may grant 
reserve funds for such purposes to the following entities:
    (1) States for providing compensation and assistance to their state 
residents, who while outside of the U.S. become victims of a terrorist 
act or mass violence. The beneficiaries, however, cannot be persons who 
are already eligible for compensation under the Omnibus Diplomatic 
Security and Antiterrorism Act of 1986.
    Individuals covered under the Omnibus Diplomatic Security and 
Antiterrorism Act include persons who are taken captive because of 
their relationship with the U.S. Government as a member of the U.S. 
Civil Service, as well as other U.S. citizens, nationals, or resident 
aliens who are taken captive while rendering service to the U.S. 
similar to that of civil servants. Dependent family members of such 
persons also are covered under the Omnibus Diplomatic Security Act.
    (2) Eligible state crime victim compensation and assistance 
programs for providing emergency relief, including crisis assistance, 
training, and technical assistance for the benefit of victims of 
terrorist acts or mass violence occurring within the U.S.
    (3) U.S. Attorney's Offices for use in coordination with state 
victim compensation and assistance efforts in providing relief to 
victims of terrorist acts or mass violence occurring within the U.S.
    b. Offset Fluctuations in Fund. The Director of OVC may also use 
the reserve fund to offset fluctuations in Fund deposits for state 
compensation and assistance programs in years in which the Fund 
decreases and additional monies are needed to stabilize programs.
    3. Grant Period. Federal legislation passed in 1996 also makes 
victim

[[Page 7260]]

assistance grant funds available for expenditure throughout the FFY of 
award as well as in the next three fiscal years. The FFY begins on 
October 1 and ends on September 30. For example, grants awarded in 
December, 1996 (FFY 1997) are available for obligation beginning 
October 1, 1996 through September 30, 2000.
    4. Grant Deobligations. VOCA grant funds not obligated at the end 
of the award period will be returned to the Crime Victims Fund. In a 
given fiscal year, no more than $500,000 of the remaining unobligated 
funds can be returned to the Fund. Amounts in excess of $500,000 shall 
be returned to the Treasury. Once any portion of a state's grant is 
returned to the Fund, the funds must be redistributed according to the 
rules established by VOCA and the Proposed Program Guidelines, so 
states are encouraged to monitor closely the expenditure of VOCA funds 
throughout the grant period to ensure that no funds are returned.

C. Allocation of Funds to States

    From the Fund deposits available for victim assistance grants, each 
state grantee receives a base amount of $500,000, except for the 
territories of Northern Mariana Islands, Guam, and American Samoa, 
which are eligible to receive a base amount of $200,000. The Republic 
of Palau's share is governed by the Compact of Free Association between 
the U.S. and the Republic of Palau. The remaining Fund deposits are 
distributed to each state, based upon the state's population in 
relation to all other states, as determined by current census data.

D. Allocation of Funds Within the States

    The Governor of each state designates the state agency that will 
administer the VOCA victim assistance grant program. The designated 
agency establishes policies and procedures, which must meet the minimum 
requirements of VOCA and the Program Guidelines.
    VOCA funds granted to the states are to be used by eligible public 
and private nonprofit organizations to provide direct services to crime 
victims. States have sole discretion for determining which 
organizations will receive funds, and in what amounts, as long as the 
recipients meet the requirements of VOCA and the Program Guidelines.
    State grantees are encouraged to develop a VOCA program funding 
strategy, which should consider the following: The range of victim 
services throughout the state and within communities; the unmet needs 
of crime victims; the demographic profile of crime victims; the 
coordinated, cooperative response of community organizations in 
organizing services for crime victims; the availability of services to 
crime victims throughout the criminal justice process; and the extent 
to which other sources of funding are available for services.
    State grantees are encouraged to expand into new service areas as 
needs and demographics of crime change within the state. For example, 
when professional training, counseling, and de-briefings are made 
available to victim assistance providers, dispatchers, and law 
enforcement officers in rural-remote areas, services to victims in 
these areas improve dramatically. Victim services in rural-remote areas 
can also be improved by using VOCA funds to support electronic 
networking through computers, police radios, and cellular phones.
    Many state grantees use VOCA funds to stabilize victim services by 
continuously funding selected organizations. Some state grantees end 
funding to organizations after several years in order to fund new 
organizations. Other state grantees limit the number of years an 
organization may receive VOCA funds. These practices are within the 
grantee's discretion and are supported by OVC, when they serve the best 
interests of crime victims within the state.
    State grantees may award VOCA funds to organizations that are 
physically located in an adjacent state, when it is an efficient and 
cost-effective mechanism available for providing services to victims 
who reside in the awarding state. When adjacent state awards are made, 
the amount of the award must be proportional to the number of victims 
to be served by the adjacent-state organization. OVC recommends that 
grantees enter into an interstate agreement with the adjacent state to 
address monitoring of the VOCA subrecipient, auditing federal funds, 
managing noncompliance issues, and reporting requirements. States must 
notify OVC of each VOCA award made to an organization in another state.

III. VOCA Victim Assistance Application Process

A. State Grantee Application Process

    Each year, OVC issues a Program Instruction and Application Kit to 
each designated state agency. The Application Kit contains the 
necessary forms and information required to apply for VOCA grant funds, 
including the Application for Federal Assistance, Standard Form 424. 
The amount for which each state may apply is included in the 
Application Kit. At the time of application, state grantees are not 
required to provide specific information regarding the subrecipients 
that will receive VOCA victim assistance funds.
    Completed applications must be submitted on or before the stated 
deadline, as determined by OVC.
    In addition to the Application for Federal Assistance, state 
grantees shall submit the following information:
    1. Single Audit Act Information, specifically, the name and address 
of the designated Cognizant federal Agency, the federal agency assigned 
by OMB, and the dates of the state fiscal year.
    2. Certifications Regarding Lobbying, Debarment, Suspension, and 
Other Responsibility Matters; Drug-Free Workplace requirements; Civil 
Rights Compliance, and any other certifications required by OJP and 
OVC. In addition, states must complete a disclosure form specifying any 
lobbying activities that are conducted.
    3. An assurance that the program will comply with all applicable 
nondiscrimination requirements.
    4. An assurance that in the event a federal or state administrative 
agency makes a finding of discrimination after a due process hearing, 
on the grounds of race, color, religion, origin, sex, or disability 
against the program, the program will forward a copy of the finding to 
OJP, Office for Civil Rights (OCR).
    5. The name of the Civil Rights contact person who has lead 
responsibility for ensuring that all applicable civil rights 
requirements are met and who shall act as liaison in civil rights 
matters with OCR.
    6. Enrollment in Automated Clearing House (ACH). States that are 
new award recipients, or those that have previously received funds in 
the form of a paper check from the U.S. Treasury, must enroll in the 
Treasury Department's ACH Vendor Express program before requesting any 
federal funds. States that are currently on the Letter of Credit 
Electronic Certification System (LOCES) will be automatically enrolled 
in the ACH program. Enrollment in ACH need only be completed once.
    7. Administrative Cost Provision Notification. States must indicate 
in their application materials whether they intend to use the 
administrative cost provision. More is explained about this issue in 
the following section.

B. Administrative Cost Provision for State Grantees

    Each state grantee may retain up to, but not more than, 5% of each 
year's grant for administering the VOCA victim assistance grant at the 
state

[[Page 7261]]

grantee level with the remaining portion being used exclusively for 
direct services to crime victims or to train direct service providers 
in accordance with these Program Guidelines, as authorized in section 
1404(b)(3), codified at 42 U.S.C. 10603 (b)(3). This option is 
available to the state grantee and does not apply to VOCA 
subrecipients. State grantees are not required to match the portion of 
the grant that is used for administrative purposes. The state 
administrative agency may charge any federally approved indirect cost 
rate to this grant. However, any direct costs requested must be paid 
from the 5 percent administrative funds. An indirect cost rate and cost 
allocation plan must be on file or submitted and approved by the U.S. 
Department of Justice prior to budgeting funds for such costs.
    This administrative cost provision is to be used by the state 
grantee to expand, enhance, and/or improve the state's previous level 
of effort in administering the VOCA victim assistance grant program at 
the state level and to support activities and costs that impact the 
delivery and quality of services to crime victims throughout the state. 
Thus, grantees will be required to certify that VOCA administrative 
funds will not be used to supplant state funds or to cover indirect 
costs.
    State grantees will not be in violation of the nonsupplantation 
clause if there is a decrease in the state's previous financial 
commitment towards the administration of the VOCA grant programs in the 
following situations: (1) A serious loss of revenue at the state level, 
resulting in across-the-board budget restrictions. (2) A decrease in 
the number of ``state-supported'' staff positions used to meet the 
state's ``maintenance of effort'' in administering the VOCA grant 
programs.
    States are required to notify OVC if there is a decrease in the 
amount of its previous financial commitment to the cost of 
administering the VOCA program.
    State grantees are not required to match the portion of the grant 
that is used for administrative purposes.
    1. The following are examples of activities that are directly 
related to managing the VOCA grant and can be supported with 
administrative funds:
    a. Pay salaries and benefits for staff and consultant fees to 
administer and manage the financial and programmatic aspects of VOCA;
    b. Attend OVC-sponsored and other relevant technical assistance 
meetings that address issues and concerns to state administration of 
victims' programs;
    c. Monitor VOCA Victim Assistance subrecipients, Victim Assistance 
in Indian Country subrecipients, and potential subrecipients, provide 
technical assistance, and/or evaluation and assessment of program 
activities;
    d. Purchase equipment for the state grantee such as computers, 
software, fax machines, copying machines;
    e. Train VOCA direct service providers;
    f. Purchase memberships in crime victims organizations and victim-
related materials such as curricula, literature, and protocols; and
    g. Pay for program audit costs.
    2. The following activities impact the delivery and quality of 
services to crime victims throughout the state and, thus, can be 
supported by administrative funds:
    a. Develop strategic plans on a state and/or regional basis, 
conduct surveys and needs assessments, promote innovative approaches to 
serving crime victims such as through the use of technology;
    b. Improve coordination efforts on behalf of crime victims with 
other OJP Offices and Bureaus and with federal, state, and local 
agencies and organizations;
    c. Provide training on crime victim issues to state, public, and 
nonprofit organizations that serve or assist crime victims such as law 
enforcement officials, prosecutors, judges, corrections personnel, 
social service workers, child and youth service providers, and mental 
health and medical professionals;
    d. Purchase, print, and/or develop publications such as training 
manuals for service providers, victim services directories, and 
brochures;
    e. Coordinate and develop protocols, policies, and procedures that 
promote systemic change in the ways crime victims are treated and 
served; and
    f. Train managers of victim service agencies.
    State grantees are required to notify OVC of the decision to use 
administrative funds prior to charging or incurring any costs against 
this provision. State grantees may notify OVC when the decision is made 
to exercise this option or at the time the Application for Federal 
Assistance is submitted.
    Each state grantee that chooses to use administrative funds is 
required to submit a statement to OVC describing:
    (1) The amount of the total grant that will be used as 
administrative funds;
    (2) An itemization of the state grantee's projected expenditures 
and the types of activities that will be supported; and
    (3) How these activities will improve the administration of the 
VOCA program and/or improve services to crime victims.
    A state may modify projections set forth in their application by 
providing OVC with a revised description of their planned use of 
administrative funds in writing, subsequent to submitting their annual 
application. However, the revised description must be reviewed prior to 
the obligation of any federal funds. Failure to notify OVC of 
modifications will prevent the state from meeting its obligation to 
reconcile its State-wide Report with its Final Financial Status Report.
    Administrative grant funds can only support that portion of a staff 
person's time devoted to the VOCA assistance program. If the staff 
person has other functions, the proportion of their time spent on the 
VOCA assistance program must be documented using regular time and 
attendance records. The documentation must provide a clear audit trail 
for the expenditure of grant funds.
    State grantees may choose to award administrative funds to a 
``conduit'' organization that assists in selecting qualified 
subrecipients and/or reduces the state grantee's administrative burden 
in implementing the grant program. However, the use of a ``conduit'' 
organization does not relieve the state grantee from ultimate 
programmatic and financial responsibilities.

C. Use of Funds for Training

    State grantees have the option of retaining a portion of their VOCA 
victim assistance grant for conducting state-wide and/or regional 
trainings of victim services staff. The maximum amount permitted for 
this purpose is $5,000 or one percent of the state's grant, whichever 
is greater. State grantees that choose to sponsor statewide or regional 
trainings are not precluded from awarding VOCA funds to subrecipients 
for other types of staff development.
    Statewide or regional training supported with training funds should 
target a diverse audience of victim service providers and allied 
professionals, and should provide opportunities to consider issues 
related to types of crime, gaps in services, coordination of services, 
and legislative mandates.
    Each training activity must occur within the grant period, and all 
training costs must be obligated prior to the end of the grant period. 
VOCA grant funds cannot be used to supplant the cost of existing state 
administrative staff or related state training efforts.

[[Page 7262]]

    Specific criteria for applying for training funds will be given in 
each year's Application Kit. This criteria may include addressing the 
goals, the needs of the service providers, how funds will be used, and 
how any program income that is generated will be used.
    The VOCA funds used for training by the state grantee must be 
matched at 20 percent, cash or in-kind, and the source of the match 
must be described.

IV. Program Requirements

A. State Grantee Eligibility Requirements

    When applying for the VOCA victim assistance grant, state grantees 
are required to give assurances that the following conditions or 
requirements will be met:
    1. Must Be an Eligible Organization. Only eligible organizations 
will receive VOCA funds and these funds will be used only for services 
to victims of crime, except those funds that the state grantee uses for 
training victim service providers and/or administrative purposes, as 
authorized by section 1404(b) codified at 42 U.S.C. 10603(b). See 
section E. Services, Activities, and Costs at the Subrecipient Level 
for examples of direct services to crime victims.
    2. Nonsupplantation. VOCA crime victim assistance grant funds will 
be used to enhance or expand services and will not be used to supplant 
state and local funds that would otherwise be available for crime 
victim services. See section 1404(a)(2)(c), codified at 42 U.S.C. 
10603(a)(2)(C). This supplantation clause applies to state and local 
public agencies only.
    3. Priority Areas. Priority shall be given to victims of sexual 
assault, spousal abuse, and child abuse. Thus, a minimum of 10% of each 
FFY's grant (30% total) will be allocated to each of these categories 
of crime victims. This grantee requirement does not apply to VOCA 
subrecipients.
    Each state grantee must meet this requirement, unless it can 
demonstrate to OVC that: (1) A ``priority'' category is currently 
receiving significant amounts of financial assistance from the state or 
other funding sources; (2) a smaller amount of financial assistance, or 
no assistance, is needed from the VOCA victim assistance grant program; 
and (3) crime rates for a ``priority'' category have diminished.
    4. ``Previously Underserved'' Priority Areas. An additional 10% of 
each VOCA grant will be allocated to victims of violent crime (other 
than ``priority'' category victims) who were ``previously under 
served.'' These under served victims of either adult or juvenile 
offenders may include, but are not limited to, victims of federal 
crimes; survivors of homicide victims; or victims of assault, robbery, 
gang violence, hate and bias crimes, intoxicated drivers, bank robbery, 
and elder abuse.
    For the purposes of this program, a victim of federal crime is a 
victim of an offense that violates a federal criminal statute or 
regulation. Federal crimes also include crimes that occur on an area 
where the federal government has jurisdiction, such as Indian 
reservations and military installations.
    For the purposes of this program, elder abuse is defined as the 
mistreatment of older persons through physical, sexual, psychological 
or physical violence; neglect; or economic exploitation and fraud.
    To meet the under served requirement, grantees must identify crime 
victims by type of crime. States are encouraged, however, to identify 
gaps in available services not just by types of crimes committed, but 
also by specific demographic profiles, such as those victims living in 
rural areas, remote areas, or inner cities, or by the specific 
characteristics of the victim population needing services, such as 
disabled, or elderly victims. Each state grantee has latitude for 
determining the method for identifying ``previously under served'' 
crime victims, which may include public hearings, needs assessments, 
task forces, and meetings with state-wide victim services agencies.
    Each state grantee must meet this requirement, unless it can 
justify to OVC that (a) services to these victims of violent crime are 
receiving significant amounts of financial assistance from the state or 
other funding sources; (b) a smaller amount of financial assistance, or 
no assistance, is needed from the VOCA victim assistance grant program; 
and (c) crime rates for these victims of violent crime have diminished.
    5. Financial Record Keeping and Program Monitoring. Appropriate 
accounting, auditing, and monitoring procedures will be used at the 
grantee and subrecipient levels so that records are maintained to 
ensure fiscal control, proper management, and efficient disbursement of 
the VOCA victim assistance funds, in accordance with the OJP Financial 
Guide, effective edition.
    6. Compliance with Federal Laws. Compliance with all federal laws 
and regulations applicable to federal assistance programs and with the 
provisions of Title 28 of the Code of Federal Regulations (CFR) 
applicable to grants.
    7. Compliance with VOCA. Compliance by the state grantee and 
subrecipients with the applicable provisions of VOCA and the Proposed 
Program Guidelines.
    8. Required Reports Submitted to OVC. Programmatic and financial 
reports shall be submitted. (See Program Requirements and Financial 
Requirements for reporting requirements and timelines.)
    9. Civil Rights. Prohibition of Discrimination for Recipients of 
Federal Funds. No person in any state shall, on the grounds of race, 
color, religion, national origin, sex, age, or disability be excluded 
from participation in, be denied the benefits of, be subjected to 
discrimination under, or denied employment in connection with any 
program or activity receiving federal financial assistance, pursuant to 
the following statutes and regulations: Section 809(c), Omnibus Crime 
Control and Safe Streets Act of 1968, as amended, 42 U.S.C. 3789d, and 
Department of Justice Nondiscrimination Regulations, 28 CFR part 42, 
subparts C, D, E, and G; Title VI of the Civil Rights Act of 1964, as 
amended, 42 U.S.C. 2000d, et seq.; section 504 of the Rehabilitation 
Act of 1973, as amended, 29 U.S.C. 794; Subtitle A, Title II of the 
Americans with Disabilities Act of 1990, 42 U.S.C. 12101, et seq. and 
Department of Justice regulations on disability discrimination, 28 CFR 
part 35 and part 39; Title IX of the Education Amendments of 1972, as 
amended, 20 U.S.C. 1681-1683; and the Age Discrimination Act of 1975, 
as amended, 42 U.S.C. 6101, et seq.
    10. Obligation to Report Discrimination Finding. In the event a 
federal or state court or administrative agency makes a finding of 
discrimination on the grounds of race, religion, national origin, sex, 
or disability against a recipient of VOCA victim assistance funds, 
state grantees are required to forward a copy of the finding to the 
Office for Civil Rights (OCR) for OJP.
    11. Obligation to Report Other Allegations/Findings. In the event 
of a formal allegation or a finding of fraud, waste, and/or abuse of 
VOCA funds, state grantees are required to immediately notify OVC of 
said finding. State grantees are also obliged to apprise OVC of the 
status of any on-going investigations.
    OVC encourages state grantees to coordinate their activities with 
their state's VOCA compensation program and the U.S. Attorneys' Offices 
and FBI Field Offices within their state. Only with an emphasis on 
coordination, will a continuum of services be ensured for

[[Page 7263]]

all crime victims. Coordination strategies could include inviting 
Compensation Program Directors and Federal Victim-Witness Coordinators 
to serve on subgrant review committees; providing Compensation Program 
Directors and Coordinators with a list of VOCA-funded organizations; 
attending meetings organized by Compensation Program Directors and 
Coordinators regarding the provision of victim assistance services; 
providing training activities for subrecipients to learn about the 
compensation program; developing joint guidance, where applicable, on 
third-party payments to VOCA assistance organizations; and providing 
training for compensation program staff on the trauma of victimization.

B. Subrecipient Organization Eligibility Requirements

    VOCA establishes eligibility criteria that must be met by all 
organizations that receive VOCA funds. These funds are to be awarded to 
subrecipients only for providing services to victims of crime through 
their staff. Each subrecipient organization shall meet the following 
requirements:
    1. Public or Nonprofit Organization. To be eligible to receive VOCA 
funds, organizations must be operated by public or nonprofit 
organization, or a combination of such organizations, and provide 
services to crime victims.
    2. Record of Effective Services. Demonstrate a record of providing 
effective services to crime victims. This includes having the support 
and approval of its services by the community, a history of providing 
direct services in a cost-effective manner, and financial support from 
other sources.
    3. New Programs. Those programs that have not yet demonstrated a 
record of providing services may be eligible to receive VOCA funding, 
if they can demonstrate financial support from non-federal sources.
    4. Program Match Requirements. Match is to be committed for each 
VOCA-funded project and derived from resources other than federal funds 
and/or resources, except as provided in Chapter 2, paragraph 14, of the 
OJP Financial Guide, effective edition.
    All funds designated as match are restricted to the same uses as 
the VOCA victim assistance funds and must be expended within the grant 
period. Because of this requirement, VOCA subrecipients must maintain 
records which clearly show the source, the amount, and the period 
during which the match was expended. Therefore, organizations are 
encouraged not to commit excessive amounts of match. Match requirements 
are a minimum of 20%, cash or in-kind, of the total VOCA project (VOCA 
grant plus match) except as follows:
    a. The match for new or existing VOCA subrecipients that are Native 
American tribes/organizations located on reservations is 5%, cash or 
in-kind, of the total VOCA project (VOCA grant plus match.) For the 
purposes of this grant, a Native American tribe/organization is defined 
as any tribe, band, nation, or other organized group or community, 
which is recognized as eligible for the special programs and services 
provided by the U.S. to Native Americans because of their status as 
Native Americans. A reservation is defined as a tract of land set aside 
for use of, and occupancy by, Native Americans.
    b. Subrecipients located in the U.S. Virgin Islands, and all other 
territories and possessions of the U.S. except Puerto Rico are not 
required to match the VOCA funds. See 48 U.S.C. 1469a(d).
    5. Volunteers. Subrecipient organizations must use volunteers 
unless the state grantee determines there is a compelling reason to 
waive this requirement. A ``compelling reason'' may be a statutory or 
contractual provision concerning liability or confidentiality of 
counselor/victim information, which bars using volunteers for certain 
positions, or the inability to recruit and maintain volunteers after a 
sustained and aggressive effort.
    6. Promote Community Efforts to Aid Crime Victims. Promote, within 
the community, coordinated public and private efforts to aid crime 
victims. Coordination may include, but is not limited to, serving on 
state, federal, local, or Native American task forces, commissions and/
or working groups; and developing written agreements, which contribute 
to better and more comprehensive services to crime victims. 
Coordination efforts qualify an organization to receive VOCA victim 
assistance funds, but are not activities that can be supported with 
VOCA funds.
    7. Help Victims Apply for Compensation Benefits. Such assistance 
may include identifying and notifying crime victims of the availability 
of compensation, assisting them with application forms and procedures, 
obtaining necessary documentation, and/or checking on claim status.
    8. Comply with Federal Rules Regulating Grants. Subrecipients must 
comply with the applicable provisions of VOCA, the Program Guidelines, 
and the requirements of the OJP Financial Guide, effective edition, 
which includes maintaining appropriate programmatic and financial 
records that fully disclose the amount and disposition of VOCA funds 
received. This includes: Financial documentation for disbursements; 
daily time and attendance records specifying time devoted to allowable 
VOCA victim services; client files; the portion of the project supplied 
by other sources of revenue; job descriptions; contracts for services; 
and other records which facilitate an effective audit.
    9. Maintain Civil Rights Information. Maintain statutorily required 
civil rights statistics on victims served by race or national origin, 
sex, age, and disability, within the timetable established by the state 
grantee; and permit reasonable access to its books, documents, papers, 
and records to determine whether the subrecipient is complying with 
applicable civil rights laws. This requirement is waived when providing 
a service, such as telephone counseling, where soliciting the 
information may be inappropriate or offensive to the crime victim.
    10. Comply with State Criteria. Subrecipients must abide by any 
additional eligibility or service criteria as established by the state 
grantee including submitting statistical and programmatic information 
on the use and impact of VOCA funds, as requested by the grantee.
    11. Services to Federal Victims. Subrecipients must provide 
services to victims of federal crimes on the same basis as victims of 
state/local crimes.
    12. No Charge to Victims for VOCA-Funded Services. Subrecipients 
must provide services to crime victims, at no charge, through the VOCA-
funded project. Any deviation from this provision requires prior 
approval by the state grantee. Prior to authorizing subrecipients to 
generate income, OVC strongly encourages administrators to carefully 
weigh the following considerations regarding federal funds generating 
income for subrecipient organizations.
    a. The purpose of the VOCA victim assistance grant program is to 
provide services to all crime victims regardless of their ability to 
pay for services rendered or availability of insurance or other third-
party payment resources. Crime victims suffer tremendous emotional, 
physical, and financial losses. It was never the intent of VOCA to 
exacerbate the impact of the crime by asking the victim to pay for 
services.
    b. State grantees must ensure that they and their subrecipients 
have the capability to track program income in accordance with federal 
financial

[[Page 7264]]

accounting requirements. All VOCA-funded program and match income, no 
matter how large or small, is restricted to the same uses as the VOCA 
grant.
    Program income can be problematic because of the required tracking 
systems needed to monitor VOCA-funded income and ensure that it is used 
only to make additional services available to crime victims. For 
example: VOCA often funds only a portion of a counselor's time. 
Accounting for VOCA program income generated by this counselor is 
complicated, involving careful record keeping by the counselor, the 
subrecipient program, and the state.
    12. Client-Counselor and Research Information Confidentiality. 
Maintain confidentiality of client-counselor information, as required 
by state and federal law.
    13. Confidentiality of Research Information. Except as otherwise 
provided by federal law, no recipient of monies under VOCA shall use or 
reveal any research or statistical information furnished under this 
program by any person and identifiable to any specific private person 
for any purpose other than the purpose for which such information was 
obtained in accordance with VOCA.
    Such information, and any copy of such information, shall be immune 
from legal process and shall not, without the consent of the person 
furnishing such information, be admitted as evidence or used for any 
purpose in any action, suit, or other judicial, legislative, or 
administrative proceeding. See Section 1407(d) of VOCA codified at 42 
U.S.C. 10604.
    This provision is intended, among other things, to ensure the 
confidentiality of information provided by crime victims to counselors 
working for victim services programs receiving VOCA funds. Whatever the 
scope of application given this provision, it is clear that there is 
nothing in VOCA or its legislative history to indicate that Congress 
intended to override or repeal, in effect, a state's existing law 
governing the disclosure of information, which is supportive of VOCA's 
fundamental goal of helping crime victims. For example, this provision 
would not act to override or repeal, in effect, a state's existing law 
pertaining to the mandatory reporting of suspected child abuse. See 
Pennhurst School and Hospital v. Halderman, et al., 451 U.S. 1 (1981). 
Furthermore, this confidentiality provision should not be interpreted 
to thwart the legitimate informational needs of public agencies. For 
example, this provision does not prohibit a domestic violence shelter 
from acknowledging, in response to an inquiry by a law enforcement 
agency conducting a missing person investigation, that the person is 
safe in the shelter. Similarly, this provision does not prohibit access 
to a victim service project by a federal or state agency seeking to 
determine whether federal and state funds are being utilized in 
accordance with funding agreements.

C. Eligible Subrecipient Organizations

    VOCA specifies that an organization must provide services to crime 
victims and be operated by a public agency or nonprofit organization, 
or a combination of such agencies or organizations in order to be 
eligible to receive VOCA funding. Eligible organizations include victim 
services organizations whose sole mission is to provide services to 
crime victims. These organizations include, but are not limited to, 
sexual assault and rape treatment centers, domestic violence programs 
and shelters, child advocacy centers and child abuse treatment 
facilities, centers for missing children, state/local public child and 
adult protective services or mental health services, and other 
community-based victim coalitions and support organizations including 
those who serve survivors of homicide victims.
    In addition to victim services organizations, whose sole purpose is 
to serve crime victims, there are many other public and nonprofit 
organizations that have components which offer services to crime 
victims. These organizations are eligible to receive VOCA funds, if the 
funds are used to expand or enhance the delivery of crime victims' 
services. These organizations include, but are not limited to, the 
following:
    1. Criminal Justice Agencies. Such agencies as law enforcement 
organizations, prosecutor offices, courts, corrections departments, 
probation and paroling authorities are eligible to receive VOCA funds 
to help pay for victims' services. For example, a police department may 
use VOCA funds to provide crime victim services that exceed a law 
enforcement official's normal duties, such as victim crisis response 
units. Regular law enforcement duties such as crime scene intervention, 
questioning of victims and witnesses, investigation of the crime, and 
follow-up activities may not be paid for with VOCA funds.
    2. Religiously-Affiliated Organizations. Such organizations 
receiving VOCA funds must ensure that services are offered to all crime 
victims without regard to religious affiliation and that the receipt of 
services is not contingent upon participation in a religious activity 
or event.
    3. State Crime Victim Compensation Agencies. Compensation programs 
may receive VOCA assistance funds if they offer direct services to 
crime victims that extend beyond distribution of the usual information 
about compensation and referral to other sources of public and private 
assistance. Such services would include assisting victims complete 
their compensation application forms and gather the necessary 
documentation.
    4. Hospitals and Emergency Medical Facilities. Such organizations 
must offer crisis counseling, support groups, and/or other types of 
victim services. In addition, state grantees may only award VOCA funds 
to a medical facility for the purpose of performing forensic 
examinations on sexual assault victims if (1) the examination meets the 
standards established by the state, local prosecutor's office, or 
state-wide sexual assault coalition; and (2) appropriate crisis 
counseling and/or other types of victim services are offered to the 
victim in conjunction with the examination.
    5. Others: State and local public agencies such as mental health 
service organizations, state grantees, legal services agencies, and 
public housing authorities that have components specifically trained to 
serve crime victims. Since the intention of the VOCA grant program is 
to support and enhance the crime victim services provided by community 
agencies, state grantees that meet the definition of an eligible 
subrecipient organization may not subaward themselves more than 10 
percent of their annual VOCA award.

D. Ineligible Recipients of VOCA Funds

    Some public and nonprofit organizations that offer services to 
crime victims are not eligible to receive VOCA victim assistance 
funding. These organizations include, but are not limited to, the 
following:
    1. Federal Agencies. This includes U.S. Attorneys Offices and local 
F.B.I. Offices. Receipt of VOCA funds would constitute an augmentation 
of the federal budget with money intended for state agencies. However, 
private nonprofit organizations that operate on federal land may be 
eligible subrecipients of VOCA victim assistance grant funds.
    2. In-Patient Treatment Facilities. For example, those designed to 
provide treatment to individuals with drug, alcohol, and/or mental 
health-related conditions.

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

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

[[Page 7265]]

activities, and costs that are eligible for support with VOCA victim 
assistance grant funds within a subrecipient's organization:
    a. Immediate Health and Safety. Those services which respond to the 
immediate emotional and physical needs (excluding medical care) of 
crime victims such as crisis intervention; accompaniment to hospitals 
for medical examinations; hotline counseling; emergency food, clothing, 
transportation, and shelter; and other emergency services that are 
intended to restore the victim's sense of dignity and self esteem. This 
includes services which offer an immediate measure of safety to crime 
victims such as boarding-up broken windows and replacing or repairing 
locks. Also allowable is emergency legal assistance such as filing 
restraining orders and obtaining emergency custody/visitation rights 
when such actions are directly connected to family violence cases and 
pertain to the health and safety of the victim.
    b. Mental Health Assistance. Those services and activities that 
assist the primary and secondary victims of crime in understanding the 
dynamics of victimization and in stabilizing their lives after a 
victimization such as counseling, group treatment, and therapy. 
``Therapy'' refers to intensive professional psychological/psychiatric 
treatment for individuals, couples, and family members related to 
counseling to provide emotional support in crises arising from the 
occurrence of crime. This includes the evaluation of mental health 
needs, as well as the actual delivery of psychotherapy.
    c. Assistance with Participation in Criminal Justice Proceedings. 
In addition to the cost of emergency legal services noted above (in 
section a. ``Immediate Health and Safety''), there are other costs 
associated with helping victims participate in the criminal justice 
system that also are allowable. These services may include advocacy on 
behalf of crime victims; accompaniment to criminal justice offices and 
court; transportation to court; child care to enable a victim to attend 
court; notification of victims regarding trial dates, case disposition 
information, and parole consideration procedures; and restitution 
advocacy and assistance with victim impact statements. VOCA funds 
cannot be used to pay for non-emergency legal representation such as 
for divorces.
    d. Forensic Examinations. For sexual assault victims, forensic 
exams are allowable costs only to the extent that other funding sources 
(such as state compensation or private insurance or public benefits) 
are unavailable or insufficient. State grantees should establish 
procedures to monitor the use of VOCA victim assistance funds to pay 
for forensic examinations in sexual assault cases.
    e. Costs Necessary and Essential to Providing Direct Services. This 
includes pro-rated costs of rent, telephone service, transportation 
costs for victims to receive services, emergency transportation costs 
that enable a victim to participate in the criminal justice system, and 
local travel expenses for service providers.
    f. Special Services. Services to assist crime victims with managing 
practical problems created by the victimization such as acting on 
behalf of the victim with other service providers, creditors, or 
employers; assisting the victim to recover property that is retained as 
evidence; assisting in filing for compensation benefits; and helping to 
apply for public assistance.
    g. Personnel Costs. Costs that are directly related to providing 
direct services, such as staff salaries and fringe benefits, including 
malpractice insurance; the cost of advertising to recruit VOCA-funded 
personnel; and the cost of training paid and volunteer staff.
    h. Restorative Justice. Opportunities for crime victims to meet 
with perpetrators, if such meetings are requested by the victim and 
have therapeutic value to crime victims.
    State grantees that plan to fund this type of service should 
closely review the criteria for conducting these meetings. At a 
minimum, the following should be considered: (1) The safety and 
security of the victim; (2) the benefit or therapeutic value to the 
victim; (3) the procedures for ensuring that participation of the 
victim and offender are voluntary and that everyone understands the 
nature of the meeting, (4) the provision of appropriate support and 
accompaniment for the victim, (5) appropriate ``debriefing'' 
opportunities for the victim after the meeting or panel, (6) the 
credentials of the facilitators, and (7) the opportunity for a crime 
victim to withdraw from the process at any time. State grantees are 
encouraged to discuss proposals with OVC prior to awarding VOCA funds 
for this type of activity. VOCA assistance funds cannot be used for 
victim-offender meetings which serve to replace criminal justice 
proceedings.
    2. Other Allowable Costs and Services. The services, activities, 
and costs listed below are not generally considered direct crime victim 
services, but are often a necessary and essential activity to ensure 
that quality direct services are provided. Before these costs can be 
supported with VOCA funds, the state grantee and subrecipient must 
agree that direct services to crime victims cannot be offered without 
support for these expenses; that the subrecipient has no other source 
of support for them; and that only limited amounts of VOCA funds will 
be used for these purposes. The following list provides examples of 
such items:
    a. Skills Training for Staff. VOCA funds designated for training 
are to be used exclusively for developing the skills of direct service 
providers including paid staff and volunteers, so that they are better 
able to offer quality services to crime victims. An example of skills 
development is training focused on how to respond to a victim in 
crisis.
    VOCA funds can be used for training both VOCA-funded and non-VOCA-
funded service providers who work within a VOCA recipient organization, 
but VOCA funds cannot be used for management and administrative 
training for executive directors, board members, and other individuals 
that do not provide direct services.
    b. Training Materials. VOCA funds can be used to purchase materials 
such as books, training manuals, and videos for direct service 
providers, within the VOCA-funded organization, and can support the 
costs of a trainer for in-service staff development. Staff from other 
organizations can attend in-service training activities that are held 
for the subrecipient's staff.
    c. Training Related Travel. VOCA funds can support costs such as 
travel, meals, lodging, and registration fees to attend training within 
the state or a similar geographic area. This limitation encourages 
state grantees and subrecipients to first look for available training 
within their immediate geographical area, as travel costs will be 
minimal. However, when needed training is unavailable within the 
immediate geographical area, state grantees may authorize using VOCA 
funds to support training outside of the geographical area. For 
example, VOCA grantees may benefit by attending national conferences 
that offer skills building training workshops for victim assistance 
providers.
    d. Equipment and Furniture. VOCA funds may be used to purchase 
furniture and equipment that provides or enhances direct services to 
crime victims, as demonstrated by the VOCA subrecipient.
    VOCA funds cannot support the entire cost of an item that is not 
used exclusively for victim-related activities. However, VOCA funds can 
support a prorated share of such an item. In

[[Page 7266]]

addition, subrecipients cannot use VOCA funds to purchase equipment for 
another organization or individual to perform a victim-related service. 
Examples of allowable costs may include beepers; typewriters and word 
processors; video-tape cameras and players for interviewing children; 
two-way mirrors; and equipment and furniture for shelters, work spaces, 
victim waiting rooms, and children's play areas.
    The costs of furniture or equipment that makes victims services 
more accessible to persons with disabilities, such as a TTY for the 
hearing impaired, are allowable.
    e. Purchasing or Leasing Vehicles. Subrecipients may use VOCA funds 
to purchase or lease vehicles if they can demonstrate to the state VOCA 
administrator that such an expenditure is essential to delivering 
services to crime victims. The VOCA administrator must give prior 
approval for all such purchases.
    f. Advanced Technologies. At times, computers may increase a 
subrecipient's ability to reach and serve crime victims. For example, 
automated victim notification systems have dramatically improved the 
efficiency of victim notification and enhanced victim security.
    In making such expenditures, VOCA subrecipients must describe to 
the state how the computer equipment will enhance services to crime 
victims; how it will be integrated into and/or enhance the 
subrecipient's current system; the cost of installation; the cost of 
training staff to use the computer equipment; the on-going operational 
costs, such as maintenance agreements, supplies; and how these 
additional costs will be supported. Property insurance is an allowable 
expense as long as VOCA funds support a prorated share of the cost of 
the insurance payments.
    State grantees that authorize equipment to be purchased with VOCA 
funds must establish policies and procedures on the acquisition and 
disbursement of the equipment, in the event the subrecipient no longer 
receives a VOCA grant. At a minimum, property records must be 
maintained with the following: A description of the property and a 
serial number or other identifying number; identification of title 
holder; the acquisition date; the cost and the percentage of VOCA funds 
supporting the purchase; the location, use, and condition of the 
property; and any disposition data, including the date of disposal and 
sale price. (See OJP Financial Guide, effective edition.)
    g. Contracts for Professional Services. VOCA funds generally should 
not be used to support contract services. At times, however, it may be 
necessary for VOCA subrecipients to use a portion of the VOCA grant to 
contract for specialized services. Examples of these services include 
assistance in filing restraining orders or establishing emergency 
custody/visitation rights; forensic examinations on a sexual assault 
victim to the extent that other funding sources are unavailable or 
insufficient; emergency psychological or psychiatric services; or sign 
interpretation for the hearing impaired.
    Subrecipients are prohibited from using a majority of VOCA funds 
for contracted services, which contain administrative, overhead, and 
other indirect costs included in the hourly or daily rate.
    h. Operating Costs. Examples of allowable operating costs include 
supplies; equipment use fees, when supported by usage logs; printing, 
photocopying, and postage; brochures which describe available services; 
and books and other victim-related materials. VOCA funds may support 
administrative time to complete VOCA-required time and attendance 
sheets and programmatic documentation, reports, and statistics; 
administrative time to maintain crime victims' records; and the pro-
rated share of audit costs.
    i. Supervision of Direct Service Providers. State grantees may 
provide VOCA funds for supervision of direct service providers when 
they determine that such supervision is necessary and essential to 
providing direct services to crime victims. For example, a state 
grantee may determine that using VOCA funds to support a coordinator of 
volunteers or interns is a cost-effective way of serving more crime 
victims.
    j. Repair and/or Replacement of Essential Items. VOCA funds may be 
used for repair or replacement of items that contribute to maintaining 
a healthy and/or safe environment for crime victims, such as a furnace 
in a shelter. State grantees are cautioned to scrutinize each request 
for expending VOCA funds for such purposes to ensure the following: (1) 
That the building is owned by the subrecipient organization and not 
rented or leased, (2) all other sources of funding have been exhausted, 
(3) there is no available option for providing the service in another 
location, (4) that the cost of the repair or replacement is reasonable 
considering the value of the building, and (5) the cost of the repair 
or replacement is pro-rated among all sources of income.
    k. Public Presentations. VOCA funds may be used to support 
presentations that are made in schools, community centers, or other 
public forums, and that are designed to identify crime victims and 
provide or refer them to needed services. Specifically, activities and 
costs related to such programs including presentation materials, 
brochures, and newspaper notices can be supported by VOCA funds.
    3. Non-Allowable Costs and Activities. The following services, 
activities, and costs, although not exhaustive, cannot be supported 
with VOCA victim assistance grant funds at the subgrantee level:
    a. Lobbying and Administrative Advocacy. VOCA funds cannot support 
victim legislation or administrative reform, whether conducted directly 
or indirectly.
    b. Perpetrator Rehabilitation and Counseling. Subrecipients cannot 
knowingly use VOCA funds to offer rehabilitative services to offenders. 
Likewise, VOCA funds cannot support services to incarcerated 
individuals, even when the service pertains to the victimization of 
that individual.
    c. Needs Assessments, Surveys, Evaluations, Studies. VOCA funds may 
not be used to pay for efforts conducted by individuals, organizations, 
task forces, or special commissions to study and/or research particular 
crime victim issues.
    d. Prosecution Activities. VOCA funds cannot be used to pay for 
activities that are directed at prosecuting an offender and/or 
improving the criminal justice system's effectiveness and efficiency, 
such as witness notification and management activities and expert 
testimony at a trial. In addition, victim protection costs and victim/
witness expenses such as travel to testify in court and subsequent 
lodging and meal expenses are considered part of the criminal justice 
agency's responsibility and cannot be supported with VOCA funds.
    e. Fundraising activities.
    f. Indirect Organizational Costs. For example, the costs of 
liability insurance on buildings and vehicles; capital improvements; 
security guards and body guards; property losses and expenses; real 
estate purchases; mortgage payments; and construction may not be 
supported with VOCA funds.
    g. Property Loss. Reimbursing crime victims for expenses incurred 
as a result of a crime such as insurance deductibles, replacement of 
stolen property, funeral expenses, lost wages, and medical bills is not 
allowed.
    h. Most Medical Costs. VOCA funds cannot pay for nursing home care, 
home health-care costs, in-patient treatment costs, hospital care, and 
other types of

[[Page 7267]]

emergency and non-emergency medical and/or dental treatment. VOCA 
victim assistance grant funds cannot support medical costs resulting 
from a victimization, except for forensic medical examinations for 
sexual assault victims.
    i. Relocation Expenses. VOCA funds cannot support relocation 
expenses for crime victims such as moving expenses, security deposits 
on housing, ongoing rent, and mortgage payments. However, VOCA funds 
may be used to support staff time in locating resources to assist 
victims with these expenses.
    j. Administrative Staff Expenses. Salaries, fees, and reimbursable 
expenses associated with administrators, board members, executive 
directors, consultants, coordinators, and other individuals unless 
these expenses are incurred while providing direct services to crime 
victims.
    k. Development of Protocols, Interagency Agreements, and Other 
Working Agreements. These activities benefit crime victims, but they 
are considered examples of the types of activities that subrecipients 
undertake as part of their role as a victim services organization, 
which in turn qualifies them as an eligible VOCA subrecipient.
    l. Costs of Sending Individual Crime Victims to Conferences.
    m. Activities Exclusively Related to Crime Prevention.

V. Program Reporting Requirements

    State grantees must adhere to all reporting requirements and 
timelines for submitting the required reports, as indicated below. 
Failure to do so may result in a hold being placed on the drawdown of 
the current year's funds, a hold being placed on processing the next 
year's grant award, or can result in the suspension or termination of a 
grant.

A. Subgrant Award Reports

    A Subgrant Award Report is required for each organization that 
receives VOCA funds and uses the funds for such allowable expenses 
including employee salaries, fringe benefits, supplies, and rent. This 
requirement applies to all state grantee awards including grants, 
contracts, or subgrants and to all subrecipient organizations.
    Subgrant Award Reports are not to be completed for organizations 
that serve only as conduits for distributing VOCA funds or for 
organizations that provide limited, emergency services, on an hourly 
rate, to the VOCA subrecipient organizations. Services and activities 
that are purchased by a VOCA subrecipient are to be included on the 
subrecipient's Subgrant Award Report.
    1. Reporting Deadline. State grantees are required to submit to 
OVC, within 90 days of making the subaward, Subgrant Award Report 
information for each subrecipient of VOCA victim assistance grant 
funds.
    2. Electronic Submission. State grantees shall transmit their 
Subgrant Award Report information to OVC via the automated subgrant 
dial-in system. By utilizing the subgrant dial-in 1-800 number, 
grantees can access the system without incurring a long distance 
telephone charge. States and territories outside of the continental 
U.S. are exempt from the requirement to use the subdial system, but 
these grantees must complete and submit the Subgrant Award Report form, 
OJP 7390/2A, for each VOCA subrecipient.
    3. Changes to Subgrant Award Report. If the Subgrant Award Report 
information changes by the end of the grant period, state grantees must 
inform OVC of the changes, either by revising the information via the 
automated subgrant subdial system, by completing and submitting to OVC 
a revised Subgrant Award Report form, or by making notations on the 
state-wide Database Report and submitting it to OVC. The total of all 
Subgrant Award Reports submitted by the state grantee must agree with 
the Final Financial Status Report (Standard Form 269A) that is 
submitted at the end of the grant period.

B. Performance Report

    1. Reporting Deadline. Each state grantee is required to submit 
specific end-of-grant data on the OVC-provided Performance Report, form 
No. OJP 7390/4, by December 31 of each year.
    2. Administrative Cost Provision. For those state grantees who opt 
to use a portion of the VOCA victim assistance grant for administrative 
costs, the Performance Report will be used to describe how the funds 
were actually used and the impact of the 5% administrative funds on the 
state grantee's ability to expand, enhance, and improve services to 
crime victims. State grantees who choose to use a portion of their VOCA 
victim assistance grant for administrative costs must maintain a clear 
audit trail of all costs supported by administrative funds and be able 
to document the value of the grantee's previous commitment to 
administering VOCA.

VI. Financial Requirements

    As a condition of receiving a grant, state grantees and 
subrecipients shall adhere to the financial and administrative 
provisions set forth in the OJP Financial Guide and applicable OMB 
Circulars and Common Rules. The following section describes the audit 
requirements for state grantees and subrecipients, the completion and 
submission of Financial Status Reports, and actions that result in 
termination of advance funding.

A. Audit Responsibilities for Grantees and Subgrantees

    OMB Circular A-133 is being revised. Until the revisions are final, 
state and local government agencies that receive $100,000 or more in 
federal funds during their state fiscal year are required to submit an 
organization-wide financial and compliance audit report. Recipients of 
$25,000 to $100,000 in federal funds are required to submit a program- 
or organization-wide audit report as directed by the granting agency. 
Recipients receiving less than $25,000 in federal funds are not 
required to submit a program- or organization-wide financial and 
compliance audit report for that year. Nonprofit organizations and 
institutions of higher education that expend $300,000 or more in 
federal funds per year shall have an organization-wide financial and 
compliance audit. Grantees must submit audit reports within 13 months 
after their state fiscal year ends.

B. Audit Costs

    Under OMB Circular A-133 audit costs are generally allowable 
charges under federal grants. Audit costs incurred at the grantee/ 
(state) level are determined to be an administrative expense, and may 
be paid with the allowable five percent for administration.

C. Financial Status Report for State Grantees

    Financial Status Reports (269A) are required from all state 
agencies. A Financial Status Report shall be submitted to the Office of 
the Comptroller for each calendar quarter in which the grant is active. 
This Report is due even though no obligations or expenditures were 
incurred during the reporting period. Financial Status Reports shall be 
submitted to the Office of the Comptroller, by the state, within 45 
days after the end of each calendar quarter. Calendar quarters end 
March 31, June 30, September 30, and December 31. A Final Financial 
Status Report is due 120 days after the end of the VOCA grant.

D. Termination of Advance Funding to State Grantees

    If the state grantee receiving cash advances by direct Treasury 
deposit demonstrates an unwillingness or

[[Page 7268]]

inability to establish procedures that will minimize the time elapsing 
between cash advances and disbursements, OJP may terminate advance 
funding and require the state to finance its operations with its own 
working capital. Payments to the state will then be made to the state 
by the ACH Vendor Express method to reimburse the grantee for actual 
cash disbursements. It is essential that the grantee organization 
maintain a minimum of cash on hand and that drawdowns of cash are made 
only when necessary for disbursements.

VII. Monitoring

A. Office of the Comptroller

    The Office of the Comptroller conducts periodic reviews of the 
financial policies, procedures, and records of VOCA grantees and 
subrecipients. Therefore, upon request, state grantees and 
subrecipients must give authorized representatives the right to access 
and examine all records, books, papers, case files, or documents 
related to the grant, use of administrative funds, and all subawards.

B. Office for Victims of Crime

    OVC conducts on-site monitoring in which each state grantee is 
visited a minimum of once every three years. While on site, OVC 
personnel will review various documents and files such as (1) financial 
and program manuals and procedures governing the VOCA grant program; 
(2) financial records, reports, and audit reports for the grantee and 
all VOCA subrecipients; (3) the state grantee's VOCA application kit, 
procedures, and guidelines for subawarding VOCA funds; and (4) all 
other state grantee and subrecipient records and files.
    In addition, OVC will visit selected subrecipients and will review 
similar documents such as (1) financial records, reports, and audit 
reports; (2) policies and procedures governing the organization and the 
VOCA funds; (3) programmatic records of victims' services; and (4) 
timekeeping records and other supporting documentation for costs 
supported by VOCA funds.

VIII. Suspension and Termination of Funding

    If, after notice and opportunity for a hearing, OVC finds that a 
state has failed to comply substantially with VOCA, the OJP Financial 
Guide (effective edition), the Proposed Program Guidelines, or any 
implementing regulation or requirement, OVC may suspend or terminate 
funding to the state and/or take other appropriate action. At such 
time, states may request a hearing on the justification for the 
suspension and/or termination of VOCA funds. VOCA subrecipients, within 
the state, may not request a hearing at the federal level. However, 
VOCA subrecipients who believe that the state grantee has violated a 
program and/or financial requirement are not precluded from bringing 
the alleged violation(s) to the attention of OVC.
Aileen Adams,
Director, Office for Victims of Crime, Office for Justice Programs.
[FR Doc. 97-3836 Filed 2-14-97; 8:45 am]
BILLING CODE 4410-18-P
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