NPC personnel should be aware that ORD has instituted a new PI certification process regarding security of electronic VA research information. A February 6 memo regarding the new requirements as well as comprehensive information about VA cyber security and privacy policies are posted at http://www1.va.gov/resdev/resources/policies/cybersecurity.cfm

You will note that the new policy requires a study-by-study certification. Also, Appendix A of the memo states, “Compliance requires that VA research information may not be stored on non-VA servers, laptops, or portable medical unless specific permissions have been obtained from the person’s supervisor, the ACOS/R, the Privacy Officer, and the Information Security Officer (ISO) and all other requirements met as defined by VA policy.”

NPCs that retain ownership of desktops, laptops, thumb drives, external drives, etc. (as opposed to donating them to VA upon acquisition), that are used to access or store VA research information should be proactive in working with the listed personnel to ensure compliance of NPC equipment.  Full cooperation in taking steps to prevent future data losses is strongly encouraged.  If an NPC has funds available, NAVREF recommends supporting the cost of hiring additional VA staffing to expedite compliance. 

Questions may be sent to ResearchData@va.gov. A compendium of questions and answers will be posted as they accumulate so check back to the ResDev web site frequently.

Last week, the House passed a Continuing Resolution (CR) that would fund the VA Medical and Prosthetics Research program at $413 million for the remainder of the FY 2007. Senate action is expected next week. According to Senate Veterans Affairs committee staff, the House-approved resolution, H. J. Res. 20 [http://www.rules.house.gov/110/text/110th_hjres20.pdf], adds $1 million to the previous funding level to accommodate the federal pay increase. Language in Section 20810 on page 88 eliminates the controversial $15 million “setaside” for Persian Gulf War Veterans Illnesses research at the University of Texas Southwestern. Whether the Senate will restore the earmark is unknown at this writing.

The Bush administration’s FY 2008 budget proposal that was released on Monday provides $411 million for VA research, $2 million less than the House-passed CR. Along with other materials pertaining to the FY 2008 budget request, Volume I of the VA budget proposal is posted on the NAVREF web site at http://www.navref.org/advocacy/default.htm. Section 10 provides a good overview of the VA Medical and Prosthetics Research program and its priorities for FY 2008. Readers will note the discrepancy between the CR and the funding levels for FY 2007 shown in the tables. This is because the budget documents were prepared before the CR was negotiated. At this writing, $413 million is the correct amount for FY 2007.

In January, VA disseminated to Regional Counsel Offices an Office of General Counsel (OGC) white paper entitled “Employment Status of Research and Education Corporation Employees with VA Without Compensation Appointments.” [See http://navref.org/newsletter/pdf/WOC_White_Paper.pdf] The white paper, which discusses the consequences of VA WOC appointments in great detail, generated a large number of questions to the NAVREF office, particularly about applicability to NPC employees of the full scope of federal conduct regulations and the Federal Employees Compensation Act (FECA).

After discussion with NAVREF staff, on January 31 OGC sent the following email to Regional Counsels clarifying the intended application of the white paper.

From: Johnston, Sharon M., OGCCO
Sent: Wednesday, January 31, 2007 4:03 PM
To: OGC Regional Counsels
Cc: Hall, Walter A., OGC; Szybala, Renee (OGC); McKeever, Thomas J.
(OGC); Robinson, Richard R. (OGC)
Subject: FW: White paper on WOCs

The publication of our white paper entitled "Employment Status of Research and Education Corporation Employees with VA Without Compensation Appointments" continues to generate inquiries. It may be helpful if we provide the context in which we developed this white paper.

In 2001, the Department of Commerce administratively determined that VA WOC employees do not fall within the definition of Government employees, for purposes of VA rights in employee inventions. We prepared the white paper as a service to Professional Staff Group IV, which is considering whether to request reconsideration of Commerce's decision as it applies to research and education corporation employees with a VA WOC appointment. The white paper solely addressed the status of WOC appointees while at VA as VA employees and did not address other issues.

Sharon M. Johnston (023G)
Staff attorney, PSG III
Office of General Counsel
(202) 273-6343

This email makes it clear that the white paper was developed only for use as a resource for certain technology transfer situations. In regard to inquiries about application of the federal conduct regulations to WOCs, including conflicts of interest, NPCs should be aware that in the late 1990s, OGC concluded that NPC WOC appointees are subject to the Standards of Ethical Conduct for Employees of the Executive Branch, including conflicts of interest, because they meet the statutory definition of a federal employee.

Numerous NPCs also asked whether application of the Federal Employees Compensation Act (FECA) to VA WOCs allows NPCs to cancel their workers compensation insurance policies. NAVREF is looking into the ramifications of the OGC conclusions, but in the meantime, we strongly encourage NPCs to maintain workers compensation coverage for their employees.

Auditors from the Financial Assistance Section of the Office of the VHA Chief Financial Officer (Austin, Texas) have now completed their administrative reviews of the Institute for Medical Research (IMR) in Durham and the Seattle Institute for Biomedical and Clinical Research (SIBCR). They are spending this week with the Northern California Institute for Research and Education (NCIRE).

Separately, the VA Office of Audit of the Inspector General has initiated its own review of NPCs. For the present, the IG will visit two NPCs, the Bay Pines Foundation and NCIRE. The IG review also encompasses the VA NPC Program Office. After these initial visits, the IG anticipates selecting two more NPCs for audits. Materials describing the review and a list of requested documents are posted as follows:

• http://navref.org/newsletter/pdf/OIG_Entrance_ROC_012507.pdf

• http://navref.org/newsletter/pdf/OIG_Entrance_VHA_NPCs-Slides_012507.pdf

• http://navref.org/newsletter/pdf/OIG_NPC_Document_Request_012507.pdf

NAVREF encourages NPCs to review these materials and ensure that they have appropriate policies and procedures in place, particularly in regard to financial matters. During a meeting with Ms. West and NAVREF Vice Chairman Tony Laracuente last week, IG Office of Audit Division Director Michael Raponi stated that auditors will test an NPC’s policies against its actual practices and will check to verify that funds received are used for their intended purposes. Other areas of likely scrutiny are joint VA/NPC employees, travel, research justification and other supporting documentation for expenditures, use of research project funds, a documentation trail for accounts receivable and high residual balances.

Once again, NAVREF encourages NPCs to use the Self-Assessment Tool linked at http://www.navref.org/bestpractices/om_main.htm to identify any management weaknesses and to take prompt corrective action if needed. Additionally, go to http://www.navref.org/library/internal_controls.htm for information about internal controls and timesaving resources. The books by Edward McMillan, CPA, provide numerous sample policies and procedures that can be a useful starting point for developing your own policies.

Federal Publications Seminars is sponsoring in-depth training on CRADAs in Washington, DC, in April and in Las Vegas, Nevada, in June. This is highly recommended for anyone new to CRADAs or who feels in need of a refresher. Bob Charles, who conducted training on CRADA basics for VA and NPC personnel in November 2005, is one of the trainers. For the course outline and to register, go to: http://www.fedpubseminars.com/seminar/ftt.html

NAVREF has negotiated a $500 discount off the standard registration fee ($495 vs. $995) for everyone who identities themselves as being associated with NAVREF or as a VA employee in the “Other” block on the registration form. To get the discount, in the Other box, insert: “I am associated with NAVREF, please give me the discounted NAVREF price of $495” or “I am a VA employee; please give me the discounted VA employee price of $495.

The IRS has gathered tax and compliance information of direct relevance to nonprofits on one web page - http://www.irs.gov/charities/index.html. This useful resource also allows nonprofits to sign up for a free newsletter and timely alerts. Most recently, the IRS announced a new, Internet-based workshop on nonprofit basics called Stay Exempt – Tax Basics for 501(c)(3)s. See http://www.irs.gov/charities/article/0,,id=166625,00.html Although the cartoon format may be a little off-putting for some, it is interactive and actually provides a great deal of basic information that is particularly useful for someone new to nonprofits.