VA-Affiliated Nonprofit Research and Education Corporations (NPCs)

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VA-Affiliated Nonprofit Research and Education
Corporations(NPCs)

• Barbara F. West
• Executive Director
• National Association of Veterans Research and
  Education Foundations (NAVREF)

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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

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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 VAs own research and
  education objectives.

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NAVREF

• Education Conferences, web site, timely
  newsletters
• Oversight Work with VA and Congress regarding
  NPC oversight and compliance
• Advocacy Support the annual VA RD
  appropriation as well as issues specific to NPCs

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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

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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

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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

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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

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Current NPC Issues

• Oversight, oversight, oversight
• IT and data security
• Longstanding operational topics

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Research Oversight

• NPC-administered research is
• VA research
• VA handbooks, regulations and statutes apply
• Close working relationship between VA and NPC
  personnel is essential

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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

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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

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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

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Looking Ahead

• Full implementation of CRADAs
• DOD TBI/PTSD programs
• NPC authorizing statute revisions

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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/

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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_at_cdmrp.org

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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

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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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Questions?

• Barbara F. West
• Executive Director, NAVREF
• bwest_at_navref.org
• 301-656-5005
• www.navref.org