NAVREF Partners with Lorman
Educational Services (LES).
NAVREF has entered into a
“Partnership Program” with LES as a way to make available to NAVREF
members convenient, reasonably priced, high quality educational
programs. LES provides a wide variety of well-regarded business
educational programs using different delivery mechanisms (in-person
seminars, teleconferences, and webinars as well as publications).
Of particular interest to NPCs, LES offers in-depth, timely training
on nonprofit and human resources management topics.
As a member benefit, NAVREF members
will receive a 30% discount by entering NAVREF’s “priority code”
when they register for an LES program. Once a month, NAVREF will
send you a list of courses that may be of interest to NPC
personnel. If you are not interested in these emails, please simply
delete them on arrival; do not mark them as “junk email” as that
would block all future emails from NAVREF.
2009 Annual Conference Registration Reminder. It’s already July
and the summer will be gone in a flash. The deadline for the 2009
NAVREF Annual Conference registration is August 24, 2009, but don’t
delay. Register now to be sure you and the board member(s) who
accompany staff qualify for the regular registration rate. To
register, please go to:
https://www.regonline.com/NAVREF09AC.
Statutory VA Board Members Annual
Conference Travel.
Please be aware that VA-appropriated medical center funds may be
used to support NAVREF Annual Conference travel expenses for
statutory VA board members of NPCs – the medical center director,
COS, ACOS/R and ACOS/E. With “governance” as the main theme of the
2009 Annual Conference, and encouragement for at least one board
member from each NPC to attend along with staff members, NAVREF
recognized that this could add up to a significant expense,
particularly for smaller NPCs. Therefore, NAVREF sought and
obtained verification from Lisa Hardzog of VA Office of General
Counsel Professional Staff Group IV that it is permissible to use
VA-appropriated medical center funds to support attendance by the
statutory VA board members.
Question Posed:
May VA-appropriated funds be used to support the expenses of a
statutory VA board member for travel to and attendance at the NAVREF
Annual Conference in his/her official capacity?
Answer from Lisa Hardzog PSG IV:
Yes. VA appropriations may be used to directly fund the travel of VA
board members appointed under 38 USC 7363(a)(1) if their
participation in the conference is a necessary expense of carrying
out VA medical and prosthetic research and development programs. An
expenditure is a “necessary expense” if it is reasonably necessary
in carrying out an authorized function or will contribute materially
to the effective accomplishment of that function. I am certain that
an argument could easily be crafted that the attendance of these
board members will advance/facilitate ch. 73 research programs.
Sample Letters Requesting Change in
IRS Sub-classification.
Although all NPCs are 501(c)(3) organizations, they have varying IRS
sub-classifications, some of which entail meeting certain tests and
additional reporting in order to maintain exempt status, or require
justification under changes in the IRS code promulgated by the
Pension Protection Act of 2006. It is important to be aware of your
NPC’s sub-classification. Certain sub-classifications may make it
more likely that your accountant may determine that your NPC and
VAMC are “related” for purposes of the 2008 IRS Form 990, requiring
you to collect personal information from your board members.
Additionally, it is important to check the box on Form 990, Schedule
A, Part I, that is consistent with your NPC’s IRS
sub-classification, and to complete required supporting schedules,
if any. As the IRS transitions to electronic submission, it is more
likely that it will capture inconsistencies between assigned
sub-classifications and 990 reporting, possibly subjecting
organizations to fines.
Your NPC’s
sub-classification should be identified in the second paragraph of
the letter your NPC received from the IRS notifying your NPC that it
was approved for exempt status. NAVREF encourages all NPCs to
verify that they are checking the correct box on Form 990, Schedule
A, Part I. NAVREF also suggests that those NPCs with the following
sub-classifications may wish to discuss with their accountants the
possibility of requesting a change in sub-classification:
For NPCs primarily
administering research funds, the most accurate sub-classification
is 509(a)(1) and 170(b)(1)(A)(iii) which is applicable to
medical research organizations operated in conjunction with
hospitals. Those NPCs with other sub-classifications may certainly
retain them, but should make an effort to ensure that they are aware
of and complying with the applicable requirements.
Nancy
Watterson-Diorio, executive director of the Boston VA Research
Institute, asked NAVREF to review the letter her accountant drafted
to request a change from 509(a)(3) to 509(a)(1) 170(b)(1)(A)(iii).
Nancy has generously shared the final letter which NAVREF has turned
into a generic form letter for use by any NPC that may wish to
pursue a change. See:
http://www.navref.org/newsletter/word/Generic_Letter_to_IRS_Change_Subclassification-a3_to_iii.doc
A similar letter requesting a change from 509(a)(1) and 170(b)(1)(A)(vi)
to 509(a)(1) and170(b)(1)(A)(iii) is posted at
http://www.navref.org/newsletter/word/Generic_Letter_to_IRS_Change_Subclassification-vi_to_iii.doc.
Congress Extends Higher FDIC Coverage.
According to the FDIC web site:
