[Federal Register Volume 60, Number 36 (Thursday, February 23, 1995)]
[Notices]
[Pages 10111-10118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4417]



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DEPARTMENT OF JUSTICE
Office of Justice Programs
Office for Victims of Crime
[OJP (OVC) NO. 1003-F]
RIN 1121-AA21


Victims of Crime Act Victim Compensation Grant Program

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

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: February 23, 1995.

FOR FURTHER INFORMATION CONTACT: Carolyn A. Hightower, Acting Director, 
State Compensation and Assistance Division, 633 Indiana Avenue NW., 
Washington, DC 20531; telephone number (202) 307-5947. (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 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. 10603, and contain the following information: 
Summary of the Comments to the Proposed Program Guidelines; Background; 
Funding Allocation and 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 during the first nine years of the grant program 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, OMB, has determined that this 
rule is not a ``significant regulatory action'' for purposes of 
Executive Order 12866 and, accordingly, this rule was not reviewed by 
the Office of Management and Budget (OMB).
    In addition, these 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, 5 U.S.C. 601, et seq.
    The collection of information described in the Program Requirements 
section has been approved by the Office of Management and Budget (OMB) 
as required under the Paperwork Reduction Act, 44 U.S.C. 3504(h). (OMB 
Approval Number 1121-0014.)

Summary of the Comments to the Proposed Program Guidelines

    On December 17, 1993, the Office for Victims of Crime (OVC) 
published proposed VOCA Victim Compensation Program Guidelines in the 
Federal Register, Vol. 58, No. 164, pages 66023 through 66028. These 
proposed Guidelines were published for the purpose of soliciting 
comments on the revised rules for the VOCA victim compensation grant 
program from all interested individuals and organizations. OVC received 
six letters from interested individuals and organizations and had 
conversations with many State VOCA compensation administrators. In 
total, over twenty-four different issues, questions, recommendations, 
and comments were received, which often reflected a variety of 
perspectives.
    Respondents included individuals as well as representatives of 
State and national organizations concerned with various aspects of the 
implementation of State crime victims compensation benefits and the 
VOCA victim compensation grant program. The national organizations 
included the National Association of Crime Victim Compensation Boards 
(NACVCB) and [[Page 10112]] the National Indian Justice Center (NIJC). 
There were also comments submitted by four State VOCA compensation 
administrators.
    In addition, on September 18, 1994, President Clinton signed into 
law the Violent Crime Control and Law Enforcement Act of 1994. This 
comprehensive anti-crime legislation contained a number of victim 
related provisions. The following four amendments to the Victims of 
Crime Act (VOCA) directly affect the VOCA victim compensation grant 
program:
    (1) modification of the VOCA formula for distribution of the Crime 
Victims Fund dollars; (2) establishment of State compensation programs 
as the ``payors of last resort''; (3) authorization for use of up to 5 
percent of VOCA victim compensation and assistance grant funds for 
administrative costs; and (4) requiring states to maintain previous 
level of funding support in administering the VOCA compensation grant 
program. The following paragraphs incorporate comments from the field 
and reflect new policy guidance from OVC.
    OVC appreciates the time and effort each respondent invested in 
reading and commenting upon the proposed Guidelines. All comments were 
carefully considered in developing these Final Program Guidelines. As a 
result, OVC rewrote, deleted, and incorporated additional information 
to further clarify various sections of the Guidelines. Explanation of 
our resolutions and final determinations are presented in the following 
analysis of each of the modified sections.

A. Background

    A number of respondents expressed concern that the current language 
of this section speaks only of reimbursement paid directly to crime 
victims when in fact many programs pay providers of services such as 
hospitals, physicians, dentists, and attorneys directly. Thus, we have 
revised the language in this section to provide that State crime victim 
compensation programs may use VOCA compensation grant funds to pay for 
eligible expenses to, or on behalf of, an eligible crime victim except 
for property damage and losses. We feel that this modification will 
address any ambiguity regarding payments made directly to providers of 
services on behalf of victims.

B. Availability of Funds

    Since 1989, OVC has received questions regarding the obligation and 
expenditure of grant funds, particularly with regard to the grant 
period. In an attempt to address this issue, these Final Program 
Guidelines clarify that funds are available for obligation beginning 
October 1 of the year of the award through September 30 of the 
following Federal Fiscal Year (FFY). Thus, States are permitted to pay 
compensation claims retroactively from the start of the project period, 
even though the VOCA grant may not be awarded until later in the grant 
period.

C. Application Process

    1. Eligible State Payment Certification. Each year States submit a 
Crime Victim Compensation Eligible State Payments Certification Form 
with their application for a Federal VOCA victim compensation grant 
award. The amount certified on this form is used by OVC to determine 
the amount of each eligible State's annual grant allocation. 
Previously, OVC required that the designated State certifying official 
was limited to the Governor, the Attorney General, or the Secretary of 
State. Since 1989, certifications of several States have been delayed 
because of this requirement, thus delaying grant awards to all States. 
In response, OVC now will accept the signature of the authorized 
individual within the agency designated by the Governor to administer 
the state compensation program on the annual certification of state 
payouts form. The NACVCB responded in support of the change and 
indicated that the modification will promote the timely implementation 
of the VOCA grant program.
    2. Civil Rights Information. One respondent raised a concern 
regarding the collection of personal information such as race, national 
origin, gender, age, and handicap. Many States are prohibited from 
mandating that victims provide such information. Therefore, qualifying 
language has been added in the Application Process section of these 
Final Program Guidelines.

D. Program Requirements

    1. State Eligibility Criteria. One respondent petitioned OVC to 
seek a legislative amendment to VOCA, which would allow for direct 
funding of compensation programs operated by tribal governments. 
Throughout the Legislative History of VOCA, Congress explicitly rejects 
the notion of funding separate programs to compensate crime victims 
because such action would result in duplication of effort. Rather, as a 
condition of eligibility for a VOCA crime victim compensation grant, a 
State must provide compensation to victims of Federal crime, including 
Native Americans, on the same basis as such program provides 
compensation to victims of State crimes. OVC must conform with the 
mandate of Congress on this matter.
    Another respondent pointed out that the definition of ``State'' 
which is provided in VOCA did not appear in the proposed Guidelines. 
This omission was inadvertent, and the definition has been included in 
the Program Requirements section of these Final Program Guidelines.
    2. Victim Cooperation with Law Enforcement. OVC received numerous 
inquiries concerning the VOCA provision which requires, as a condition 
of eligibility, that a program promote victim cooperation with the 
reasonable requests of law enforcement. The proposed Program Guidelines 
provided that a State may, at its discretion, impose reasonable 
requirements, but must, at a minimum, require that the victim report 
the crime to the ``appropriate law enforcement agency.'' Several 
programs have sought clarification as to the extent of discretion 
afforded States through this provision.
    OVC is aware that in many jurisdictions, adult and child abuse 
reports may be filed with protective services agencies or may be filed 
with family or domestic courts. Hence, these Final Program Guidelines 
provide that States may utilize any of the following criteria to meet 
this VOCA Requirement or any other criteria the State believes is 
necessary to encourage victim cooperation with law enforcement and to 
verify that a crime occurred: a) require a victim to report the crime 
to the appropriate law enforcement agency; or b) require a victim to 
report the crime to an appropriate governmental agency, such as child 
and/or adult protective services, or family or juvenile court. In 
addition, for the purposes of meeting this VOCA program requirement 
States may accept the results of a medical evidentiary examination in 
lieu of a law enforcement report.
    In assessing victim cooperation, State crime victim compensation 
programs are encouraged to carefully consider compelling health or 
safety reasons which may influence the extent of victim cooperation 
with law enforcement. Such considerations may include apprehension 
regarding personal safety, fear of retaliation, and intimidation by the 
offender or others.
    3. Compensation for non-residents. With regard to the requirement 
that States offer compensation to non-residents who are victimized 
within their borders, and the requirement that States offer 
compensation to their own residents who are victimized in States 
without eligible compensation [[Page 10113]] programs, some respondents 
requested that the Guidelines specify that in both situations, 
claimants must meet the eligibility requirements of the applicable 
State statute. These Final Program Guidelines stipulate that claimants 
are eligible to apply for crime victim compensation from the State in 
which the crime occurred if the State's statutory eligibility 
requirements are met. However, if the State in which the crime occurred 
does not have an eligible compensation program, the crime victim should 
apply in the State in which he or she resides. Victim eligibility and 
the extent to which an eligible victim will be compensated are 
established by the respective State statute.

E. State Certification

    In response to a request from one respondent, the definition of a 
``compensable crime'' has been further defined to include not only 
crimes of violence but other crimes in which the victim suffers 
psychological or emotional trauma although there may not be any 
physical injury. While most State statutes explicitly define the crimes 
which will be covered under their program, questions have been raised 
as to whether certain crimes which involve emotional abuse, but did not 
involve physical injury, would be considered compensable under VOCA. 
Hopefully, this modification clarifies the type of crimes which may be 
considered compensable.
    One respondent expressed concern regarding the availability of 
compensation for traditional healing and burial expenses. The 
respondent noted that there is great variation among the States as to 
the type and extent of expenses which are eligible for compensation. 
OVC appreciates the cultural and financial issues, as well as the need 
for each State to recognize and support various methods available and 
preferable to victims in their recovery and/or stabilizing their lives 
after a victimization. However, determinations as to the extent of 
benefits available to crime victims remains solely within the 
prerogative of each State. VOCA does not stipulate with any specificity 
the extent or any qualifying factors for the payment of expense 
categories.
    In connection with the payment of forensic sexual assault 
examinations, one respondent recommended that clarification be given 
regarding inclusion of payments made for forensic sexual assault 
examinations in a State's certified payments. Specifically, the 
respondent suggested that the Guidelines advise that although the 
eligibility criteria for a VOCA compensation grant require that a 
victim report to local law enforcement, States may waive the reporting 
requirement in the following circumstances: (1) the primary purpose of 
the examination is to collect forensic evidence; (2) such payments are 
allowable under the State's statute or administrative rules; and (3) 
such payments are made from funds administered by the compensation 
program.

Guidelines for Crime Victim Compensation Grants

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 was established in 1984 as the Justice Department's chief 
advocate for America's crime victims. OVC's program activities are 
consistent with VOCA. These Final Program Guidelines address the 
specific program and financial requirements of the VOCA crime victim 
compensation grant program.
    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.
    The 1994 amendments to VOCA made a number of changes affecting the 
crime victim compensation program. These amendments can be found in 
sections 1402(d) which describe the distribution of the Crime Victim 
Fund and section 1403 of VOCA, which describes the requirements and 
eligibility criteria for a VOCA victim compensation grant award.
    For the first time since the inception of the State VOCA victim 
compensation program, States may use up to five percent of their grant 
award for administrative purposes. This provision will apply to State 
VOCA victim compensation grants for Federal Fiscal Year 1995. Guidance 
as to the conditions, limitations, and reporting requirements on the 
expenditure of administrative funds is set forth the Availability of 
Funds section of these Final Program Guidelines.
    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 Program Guidelines.

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 Federal Fiscal Year (FFY) 1993 deposits. This 
Act also eliminated the need for periodic reauthorization of VOCA and 
the Fund. Thus, under current legislation, the Fund will receive 
deposits indefinitely.
    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 $6,200,000 deposited in the Fund in each of the fiscal 
years 1992 through 1995 and the first $3,000,000 in each fiscal year 
thereafter 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. Of the next $10,000,000 deposited in the Fund a particular 
fiscal year,
    a. 85 percent 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 percent 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 grant;
    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. [[Page 10114]] 
B. Availability of Funds
    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 can not 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.
    Funds are available for expenditure throughout the FFY of award as 
well as in the next FFY. 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. Funds that 
are not obligated by the end of the grant period must be returned to 
the General Fund of the U.S. Treasury. Therefore, States are encouraged 
to monitor closely the expenditure of VOCA funds prior to the end of 
the grant period.

Administrative Costs

    The Victims of Crime Act (VOCA) now allows up to five percent of 
VOCA 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 allowable five percent for 
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 new 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, 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 would be 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.
    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; 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. Indirect 
costs expressed as a percentage of state-wide joint costs will not be 
considered as allowable.
    Staff supported by 5% of the VOCA compensation 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.
    Those States that elect to utilize administrative funds under the 
VOCA compensation grant, shall include with their annual application a 
general description of how the administrative funds will be used. This 
description should include an itemization of the state's projected 
expenditures for allowable administrative cost. 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.
    Those States that elect to utilize administrative funds under the 
VOCA crime victim compensation grant, shall include a narrative 
description of the impact of VOCA administrative funds with their 
annual performance report.
C. Application Process
    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:
    1. Specify their arrangements for complying with the provisions of 
Circular A-128 (Audits of State or Local Government.)
    2. Submit Certifications Regarding Lobbying, Debarment, Suspension, 
and [[Page 10115]] Other Responsibility Matters; Drug-Free Workplace 
Requirements; Civil Rights Compliance, and any other certifications 
required by OJP and OVC. Additionally, States must complete a 
disclosure form specifying any lobbying activities that are conducted.
    3. Submit a 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.
    4. Submit the following assurances and information:
    a. An assurance that the program will comply with all applicable 
nondiscrimination requirements;
    b. 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);
    c. The name of the civil rights contact person who has lead 
responsibility in ensuring that all applicable civil rights 
requirements are met and who shall act as liaison in civil rights 
matters with OCR;
    d. 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 without this 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.''

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. The program must be operated by a State and offer compensation 
to victims and survivors of victims of ``compensable crimes,'' 
including drunk driving and domestic violence. 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. The program must promote victim cooperation with the reasonable 
requests of law enforcement authorities. The States may impose such 
reasonable requirements as they see fit to promote this cooperation and 
to verify that a crime has occurred. 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 victimizations.
    In assessing a victim's cooperation with law enforcement, State 
crime victim compensation programs are encouraged to consider carefully 
any compelling health or safety reasons that may influence the extent 
of victim cooperation with law enforcement. Such considerations might 
include concerns regarding personal safety and retaliation, as well as 
threats or intimidation of the victim by the offender or others.
    3. 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.
    4. The State, as to compensable crimes occurring within the State, 
must make compensation awards to victims who are non-residents of the 
State on the basis of the same criteria used to make awards to victims 
who are residents of such State.
    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 or foreign 
countries will not suffice to meet this criteria. 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 citizen.
    5. 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.
    6. The State must provide compensation to residents of the State 
who are victims of crimes occurring [[Page 10116]] outside the State, 
if the crimes would be compensable crimes had they occurred inside that 
State and the crimes occurred in a State not having eligible crime 
victim compensation programs.
    This provision is intended to cover those residents of a State who 
are victimized in a State which does not have a crime victim 
compensation program.
    This requirement protects residents of a State who are victims of 
criminal violence in another State which does not have an eligible 
crime victims 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. If a person 
from one State is victimized in another, which has an eligible 
compensation program, the State in which the crime was committed must 
offer compensation to the victim according to its own eligibility 
requirements and allowable expenses, without regard to the non-
residence status of the victim.
    7. 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 domestic violence 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. As with other crime, 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 
judgements within a reasonable period of time or when the offender 
otherwise impedes direct or third party (i.e., insurance) 
reimbursements.
    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 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.
    8. The State must provide such other information and assurances as 
the Director of OVC may reasonably require.
    9. If the compensation paid by an eligible crime victim 
compensation program would cover the costs that a Federal program, or a 
Federally financed State or local program, would otherwise pay such 
crime victim compensation program shall not pay that compensation; and 
the other program shall make its payments without regard to the 
existence of the crime victim compensation program.
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 carried over from prior years appropriations. All State 
funds which are available during the Federal Fiscal Year should be 
reported. The amount of certified revenue, excluding VOCA 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 
[[Page 10117]] 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. Expenses incurred by State compensation 
programs, which are directly attributable to the recovery of 
restitution, refunds, and other reimbursements, may be offset against 
the amount of income received from such reimbursements. Expenses 
directly attributable to recovery income 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. There is no financial requirement that State compensation 
programs identify the source of individual payments to crime victims as 
either Federal or State dollars.
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. 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. 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
    States receiving VOCA crime victims compensation grant funds are 
required to prepare an Annual Performance Report that is provided by 
OVC. The Report requests specific information about claims for 
compensation, such as types of crimes committed, including drunk 
driving and domestic violence, disposition of claims, and payments for 
compensable expenses. 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 
14007(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).

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 
``Financial and Administrative Guide for Grants,'' OJP M71OO.1D 
(effective edition) 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 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
    Pursuant to OMB Circular A-128 (Audits of State or Local 
Governments), States that receive $100,000 or more in Federal financial 
assistance in any fiscal year must have a single audit for that year. 
States receiving at least $25,000, but less than $100,000, in a fiscal 
year have the option of performing a single audit or an audit of the 
Federal program, as required by the applicable Federal laws and 
regulations. State and local governments receiving less than $25,000 
[[Page 10118]] in any fiscal year are exempt from audit requirements.
B. Audit Costs
    Although under OMB Circular A-128 audit costs are generally 
allowable charges under Federal grants, audit costs incurred at the 
grantee (State) level are determined to be an administrative expense.
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 though no obligations or expenditures were 
incurred. 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 90 days 
after the end of the VOCA grant, no later than December 31.
D. Termination of Advance Funding
    If the State grantee receiving cash advances by Letter of Credit or 
by direct Treasury check demonstrates an unwillingness or inability to 
establish procedures that will minimize the time elapsing between cash 
advances and disbursement, 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 by the direct Treasury 
check method, which reimburses the State for actual cash disbursements.

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 conducts periodic reviews of the 
financial policies and procedures and records of VOCA States. 
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
    Beginning with the FFY 1991 grant period, OVC implemented an on-
site monitoring plan 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.

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 M7100.1D 
(effective edition), the Final Program Guidelines, or any implementing 
regulation or requirement, OVC may suspend or terminate funding to the 
State and/or take other appropriate action. At such time, States may 
request a hearing on the justification for the suspension and/or 
termination of VOCA funds.

    Approved by:
Aileen Adams
Director, Office for Victims of Crime, Office of Justice Programs.
[FR Doc. 95-4417 Filed 2-22-95; 8:45 am]
BILLING CODE 4410-18-P