Effect of Recent Amendments to the District of Columbia Victims of Violent Crime Compensation Act, Public Law Nos. 106-554 and 107-96, B-288173, June 13, 2002

B-288173 Jun 13, 2002 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights The District of Columbia Courts requested an advance decision interpreting recent congressional amendments to the District of Columbia's Victims of Violent Crime Compensation Act. The Courts ask whether: (1) the statutory percentage formulas relating to the use of unobligated balances in the Crime Victims Compensation Fund should be applied to the Fund's end-of-year accumulated balance or its annual balance of amounts remaining after each fiscal year's activities; (2) the Courts' method of calculating "unobligated balance" is consistent with the Compensation Act; and (3) the Courts may implement changes made in the Crime Victims Compensation Program by the District of Columbia Council without further congressional action. GAO held that (1) the District of Columbia Courts should apply the percentage formulas relating to the use of unobligated balances to the total annual unobligated balance after the end of each fiscal year's activities; (2) the District of Columbia Courts method of calculating "unobligated balance" is consistent with the Compensation Act; and (3) the Courts may implement District of Columbia Council changes to the Crime Victims Compensation Program as long as the changes do not alter or exceed the conditions of applicable federal appropriations and authorization acts. View Decision Effect of Recent Amendments to the District of Columbia Victims of Violent Crime Compensation Act, Public Law Nos. 106-554 and 107-96, B-288173, June 13, 2002 DIGEST DECISION The District of Columbia Courts (Courts) request an advance decision interpreting recent congressional amendments to the District of Columbia's Victims of Violent Crime Compensation Act (Compensation Act) and on other implementation issues related to the Compensation Act. Specifically, the Courts ask whether: (1) the statutory percentage formulas relating to the use of unobligated balances in the Crime Victims Compensation Fund should be applied to the Fund's end-of-year accumulated balance or its annual balance of amounts remaining after each fiscal year's activities; /1/ (2) the Courts method of calculating "unobligated balance" is consistent with the Compensation Act; and (3) the Courts may implement changes made in the Crime Victims Compensation Program by the District of Columbia Council (Council) without further congressional action. As explained below, we conclude that the Compensation Act requires that (1) the percentage formulas relating to the use of unobligated balances should be applied to the total annual unobligated balance after the end of each fiscal year's activities; (2) the Courts method of calculating "unobligated balance" is consistent with the Compensation Act; and (3) the Courts may implement Council changes to the Compensation Act as long as the Council changes do not alter or exceed the conditions of applicable federal appropriation and authorization acts. BACKGROUND The District of Columbia enacted the Victims of Violent Crime Compensation Act (Compensation Act) to provide compensation to victims of violent crime in the District. D.C. Code Ann. Secs. 4-501 through 4-518 (2001). /2/ The Compensation Act established a Crime Victims Compensation Fund (Fund), consisting of appropriated funds, federal grant funds, and costs, fees and other assessments collected by the District entities identified in the statute, and any monies received from other public or private sources for the purpose of the fund. D.C. Code Ann. Sec. 4-515. The Compensation Act, as amended, provides that the Courts may make compensation payments totaling up to $25,000 from the Fund to crime victims for economic loss. Payments can also be made for shelter, burial costs, or medical expenses. In 1997, the Congress enacted the National Capital Revitalization and Self-Government Improvement Act of 1997 (Revitalization Act) that provided that all money received by the District of Columbia Courts be deposited in the Treasury of the United States or the Crime Victims Fund. Pub. L. No. 105-33, Title XI, Sec. 11243, 111 Stat. 251, 753 (1997). Consequently, in fiscal year 1998, the Courts began depositing their fines, fees, and all other funds the Courts received into the Fund. Letter from Anne B. Wicks, Executive Officer, District of Columbia Courts (June 5, 2001). The Courts also made Compensation Act payments and administrative cost payments for administering the Compensation Act in fiscal year 1998. In September 1999, we issued a report reviewing the Courts financial operations for fiscal year 1998. The report concluded that the $1.8 million in Compensation Act payments and administrative cost payments that the Courts made from the Fund in fiscal year 1998 were made without proper authority. D.C. Courts, Planning and Budgeting Difficulties During Fiscal Year 1998, GAO/AIMD/OGC-99-226, at 18 (September 16, 1999).