VA-Affiliated Nonprofit Research and Education Corporations (NPCs)

1. VA-Affiliated Nonprofit Research and Education Corporations(NPCs) Barbara F. West Executive Director National Association of Veterans’ Research and Education Foundations (NAVREF)

2. Introduction • Session Objectives: • Increase awareness of NPCs and their role in supporting VA research and education • Foster close working relationships between VA and NPC personnel • Topics: • Background about NAVREF and NPCs • Current Issues • Looking Ahead

3. NAVREF • Membership association of the VA-affiliated nonprofits. • Mission: To promote high quality management and communication among the VA-affiliated nonprofit research and education corporations (NPCs) and to pursue issues at the government level that are of interest to its members.  • Vision: Provide VA with a nationwide network of efficient and well run nonprofits that are responsive to the needs of VA’s own research and education objectives.

4. NAVREF • Education – Conferences, web site, timely newsletters • Oversight – Work with VA and Congress regarding NPC oversight and compliance • Advocacy – Support the annual VA R&D appropriation as well as issues specific to NPCs

5. NPCs • Authorized by Congress in 1988 • Codified at 38 USC 7361-7368 • VHA Handbook 1200.17 • Purpose: Provide each VA medical center with authority to establish a “flexible funding mechanism for the conduct of approved research and education at the medical center.” • Each NPC is an independent, state-chartered tax exempt organization under section 501(c)(3) of the IRS code • Subject to VA oversight and regulation

6. Facts and FiguresJune 2005 Reports • 85 active NPCs • Revenues (based on June 2006 reports) • Total revenues: $227 million • 53% from non-VA government grants • 45% from private industry and nonprofits • 1.5% grants for education

7. NPC Expenditures All NPC expenditures must benefit VA research or education or support the business operations of the NPC. • Research - Projects must be VA-approved • Education - Activities must be VA- approved and must benefit VA employees or VA patients and their families

8. NPC Expenditures • Research project support • Research personnel – study coordinators, lab techs, etc. • Supplies • Equipment • Travel for scientific conferences and training • General research support depending on availability of NPC resources and board determinations • IRB and other compliance activities • Core research equipment • Seed and bridge funding • VA staff recruitment • Animal facility staff and supplies

9. Current NPC Issues • Oversight, oversight, oversight • IT and data security • Longstanding operational topics

10. Research Oversight NPC-administered research is “VA research” • VA handbooks, regulations and statutes apply • Close working relationship between VA and NPC personnel is essential

11. NPC Oversight • Nonprofits generally • Internal Revenue Service • Department of Labor • State and local government agencies • Federal agencies and regulations governing research and education • CPA accountant and AICPA guidance • CPA auditor and FASB regulations • OMB Circulars • Additional NPC oversight: • Congress, especially VA Oversight Subcommittee • VA Inspector General • Comptroller General (GAO) • VA Office of General Counsel • VA Nonprofit Oversight Board • VA NPC Program Office • VA regulations specific to NPCs as well as research and education, human resource management, safety, IT security, conduct and ethics • Board of directors including medical center director, chief of staff and associate chiefs of staff for research and education

12. Oversight of NPCs • VA oversight • VHA reviews – Three NPCs • IG reviews – Five NPCs - Report due September 2007 • VA Nonprofit Oversight Board • VA NPC Program Office • Other oversight • New Federal Accounting Standards Board auditing standards – SAS 112 and more to come • Redesigned IRS Form 990 and electronic submission • IRS Governance Standards • Be prepared – NAVREF NPC Self Assessment Tool (http://www.navref.org/bestpractices/om_main.htm)

13. IT and Data Security and NPCs • VA policies are applicable to NPCs • Ensure NPC personnel awareness • Consider: • NPC-purchased and/or owned equipment • NPC-provided services – DSL, storage, transmission • NPC employee (WOC) access to VA network and data

14. Longstanding Operational Topics • Dual VA/NPC employees • Travel reimbursement • Business meeting support • Reimbursement of the Medical Services appropriation for clinical services provided purely for research purposes • Use of Intergovernmental Personnel Act (IPA) assignments

15. Looking Ahead • Full implementation of CRADAs • DOD TBI/PTSD programs • NPC authorizing statute revisions

16. Full Implementation of CRADAs CRADA directive signed December 26, 2007 • No new CTAs as of March 26, 2008 • Existing CTAs grandfathered Prerequisites for a successful transition • Recognition that CRADAs are the better form of agreement • A positive attitude among PIs and sponsors • Cooperation and coordination among Research Service, NPC and Regional Counsel personnel as well as TTP for reviews and approvals NAVREF CRADA Conference for Industry Sponsors • February 20, 2008, in Arlington, Virginia • Encourage your industry contacts to attend • www.navref.org/cradaconference/

17. DOD TBI/PTSD Programs • VA PIs may receive a significant number of the awards • NPC recipients should ensure the necessary infrastructure and expertise in administering federal awards • Questions: help@cdmrp.org

18. NPC Authorizing Statute Revisions • Main objectives: • Allow “multi-site” NPCs – voluntary sharing of one NPC among two or more VAMCs • Update and clarify NPC status and authorities • Clarify applicable policies, regulations and statutes • Timing: • Will be offered to NPCs for review and comment shortly • Move forward in December

19. Conclusion • Be aware of the NPC role in supporting VA research and education • Include NPC personnel when implementing VA policies • Ensure effective communication among VA and NPC personnel

21. Questions? Barbara F. West Executive Director, NAVREF bwest@navref.org 301-656-5005 www.navref.org