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Veterans Administration
Date: April 4, 1990
From: Assistant General Counsel (023)
Subject: Sharing Agreements Between VA Medical Centers and Research
Corporations
To:
Sharing Staff (10 B/EMS)
- We recently reviewed two proposed
sharing agreements between VA medical centers and nonprofit research
corporations established under 38 U.S. C. § 4161 (now § 7361). One
agreement was between the Albuquerque Medical Center and the
Biomedical Research Institute, and the other was between the San
Antonio Medical Center and the Biomedical Research Foundation of
South Texas. As we have advised previously, and for the reasons
discussed below, we are unable to concur in either agreement.
However, the medical centers in question can use another mechanism
to accomplish the objectives they sought to achieve through the
sharing agreements.
- In each of the proposed sharing
agreements, the medical center was seeking to account for certain
expenditures associated with research funded through a VA
established research corporation. However, the research corporations
are not hospitals or other medical installations of the type with
which VA can enter into a sharing arrangement, and such agreements
are not appropriate vehicles for documenting the relationship
between a research corporation and a medical center when the center
is receiving funding support through the latter. 38 U.S. C. §
5053(a) (now § 8153). Sharing agreements were apparently used
because each medical center wished to retain amounts collected at
the medical center, and such agreements were the only mechanism they
were aware of to accomplish that purpose.
- We have discussed the question of how
best to achieve that purpose with officials of the research service
in VHS&RA, the Director of Budget Administration for VHS&RA,
and the Associate Director for Accounting Management (047G). As
discussed at that time, we see no objection to the development and
use of a memorandum of understanding (MOU) between the research
corporation and the medical center to provide the requisite
documentation for fiscal purposes. However, all funds collected
under the MOU would, for accounting purposes, have to be returned to
the general appropriation from which the resources furnished by VA
were paid. The individual medical centers could then be
reimbursed through the appropriation reimbursement process outlined
in VA Manual MP-4, Part V, Chapter 2, paragraph 2D.02.
- Research officials in Central Office
are now preparing a VHS&RA Circular with procedures regarding
how to enter into MOUs and how to seek appropriations
reimbursements. A model MOU will also be attached. For further
information, officials at the Albuquerque and San Antonio Medical
Centers may contact Dennis Roth in the Central Office Research
Service at FTS 373-2618.
Audley Hendricks
Sample
Memorandum of Understanding
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