We reviewed the OVC’s solicitations and issued a Management Advisory Memorandum (MAM) dated April 15, 2009, due to concerns we had regarding the OVC’s guidance to applicants on the collection of data for Recovery Act reporting requirements. Specifically, to determine jobs retained through the funding, the VOCA Victim Compensation Program solicitation instructed award recipients to report the number of claimants who received Recovery Act funds to help offset economic loss due to victimization. However, the funding compensates victims for lost wages or other financial support such as medical expenses, mental health counseling, or funeral expenses, but in our opinion, does not result in jobs being retained. Rather, it results in what the Office of Management and Budget (OMB) has subsequently defined as “induced” jobs associated with Recovery Act funding.
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http://www.justice.gov/oig/recovery/docs/a1019.pdf
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