An IG inspection of a large NPC turned up just one deficiency: NPC
management was unaware that a clinical trial sponsor was giving NPC
employees bonuses for outstanding work.
The IG did not object to the NPC employees' receiving bonuses. The IG
did, however, feel that it was inappropriate for the pharmaceutical
company to pay the bonuses directly to the employees without the NPC
executive director's knowledge and without giving the NPC the
opportunity to deduct appropriate taxes, or the information necessary to
issue an IRS Form 1099.
As a result, the NPC has modified its donation acknowledgment letter,
stipulating that all payments pertaining to a specific research study
will be made to the NPC. A sample paragraph to this effect follows:
The study will be performed as part of the investigator's official
duties and there will be no personal compensation to the investigator.
Additionally, the study was approved with the provision that all
funding associated with the project will be administered by (NPC).
Accordingly, payment for the conduct of the study may be made only to
(NPC). Under no circumstances will payment in any form (cash, travel,
gifts, bonuses) be made directly to the principal investigator, to any
of the investigator's study employees, or to any other organization or
party without prior written approval from (NPC).
Similarly, an NPC may add similar instructions to the clause in a
clinical trial agreement that specifies the payment terms.