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 VHA Handbook 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 Figures June 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 (

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

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:

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

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21 Questions? Barbara F. West Executive Director, NAVREF