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Department of Veterans Affairs
Office of the General Counsel
Washington, DC 20420
April 29, 1993
Edwin Mejias, M.D.
Acting ACOS for Research and Development
VA Medical Center
One Veterans Plaza
San Juan, Puerto Rico 00927-5800
Subj: Research Corporation Salary Reimbursement to VA
QUESTION PRESENTED: Whether it is permissible for a VA research corporation to
transfer funds to VA to reimburse the proper account for the payment
of salaries to permanent status, full time VA researchers.
DISCUSSION:
1. Your inquiry relates to two researchers at the Department of
Veterans Affairs Medical Center, San Juan, Puerto Rico. The two
employees have a permanent status and work full time at VA. The
Sociedad de Investigaciones Cientificas (the "Corporation"), which is
an authorized VA research corporation formed pursuant to 38 U.S.C.
7361 and operates in Puerto Rico, facilitates the same research
projects conducted by these same two VA employees. You have told us
that the Corporation reimburses VA on a quarterly basis for the
salaries of these two employees. These employees receive no other
salary from the Corporation. The issue presented is whether it is
legal for a research corporation to reimburse VA for the cost of
salaries VA pays research employees.
2. Title 38 U.S.C. 7361(a) authorizes the Secretary to establish
research corporations as "flexible funding mechanism[s]" at VA
medical centers. Title 38 U.S.C. 7362 states that any corporation
shall be established solely to "facilitate research as described in
section 7303(a)." Funding employment of VA research employees clearly
would facilitate such research and is thus within the authority of
the corporations. To accomplish these statutory purposes, Congress
authorized the corporations to accept gifts and grants pursuant to 38 U.S.C. 7364(a)(1). These statutory provisions enable the research
corporations to receive funds to facilitate the conduct of medical
research at VA facilities.
3. As a general rule, a Government agency may not accept for its
own use, gifts of money or other property in the absence of specific
statutory authority. 16 Comp.Gen. 911 (1937). As the Comptroller
General said in that decision, "When the Congress has considered
desirable the receipt of donations... it has generally made specific
provision therefore..." Congress has done so in this instance in 38 U.S.C. 8301 which authorizes the Secretary to accept gifts "for use
in carrying out all laws administered by the Secretary." Section 7303
of title 38 directing the Secretary to "carry out a program of
medical research" is such a law. Thus, funds donated by the
Corporation to VA, for the purpose of funding research can be
accepted. Such funds can be placed directly into the general post
fund, and monies in the general post fund can be used to reimburse
the appropriation from which the employee is paid. MP-4, Part VII,
Section 4.01(h), DM&S Supplement.
HELD:
VA research corporations can reimburse VA for the cost of salaries
paid to VA employees performing research.
Audley Hendricks
Assistant General Counsel
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