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NAVREF UPDATES –
JANUARY 27, 2010

  1. Status of Efforts to Update the NPC Authorizing Statute

  2. IDC Deduction for NAVREF Lobbying

  3. Letter to New Medical Center Directors Serving on NPC Boards and Web Page

  4. Membership Survey Results

  5. CRADA Assistance

  6. IRS Form 990: Executive Compensation Comparables

  7. NPC Support for Travel

  8. Discount on Nolo Press Human Resource Reference Books and Other Publications

  9. Update Your NAVREF Profile

  10. 2010 Annual Conference – Mark Your Calendar

1.  Status of Efforts to Update the NPC Authorizing Statute

 

Much to the dismay of NAVREF, Congress adjourned in December without completing work on legislation that would have updated and clarified NPC authorities.  The House and Senate started but postponed completion of “conference” – the process of resolving differences between House- and Senate-passed legislation – on the NPC bill and other eagerly awaited veterans’ legislation contained in S. 1963 and various House bills, so NAVREF is not alone in its disappointment. 

 

NAVREF has been assured by House and Senate Veterans Affairs Committee (HVAC and SVAC) staff that agreement has been reached on the minor differences between the House- and Senate-passed versions of the NPC legislation that is now HR 2770 and Title VIII of S. 1963.  However, a number of issues remain unresolved in regard to Title I of S. 1963.  This section would provide stipends, training and health care coverage for family members capable of serving as caregivers for seriously injured veterans.  This is the centerpiece of S. 1963 so all the other legislation is dependent on resolution of the differences between Title I of that bill and HR 3155.  Until that happens, the NPC legislation will not move forward.

 

Because the legislative session that began last week is the second session of the 111th Congress, bills passed, but not completed last year may be carried forward and completed during 2010.  As a result, NAVREF and other organizations are urging the HVAC and SVAC leaders to complete their conference negotiations as soon as possible and then to promptly move the final result – called the “conference report” – to the House and Senate floors for final votes.  To send a strong message of encouragement, NAVREF and the Disabled American Veterans (DAV) spearheaded a letter that was signed by a remarkable 40 organizations.  This reflected strong support by veterans service organizations and the many other organizations that directly, or indirectly through their members and programs, promote the health and well-being of veterans.  For the sign on letter, please go to: http://www.navref.org/newsletter/pdf/Letter-S1963_and_HouseBills_1-15-2010.pdf  To view the bills being conferenced, go to:  http://www.navref.org/advocacy/House_Senate_Legislation.htm

 

House and Senate VAC staff members have expressed confidence that they will reach agreement on a final conference report “soon.”  However, exactly when they will do so is uncertain so for now, we must be patient and let them concentrate on achieving the best outcome on the caregiver provisions.

 

2.  IDC Deduction for NAVREF Lobbying

The increasing number of NPCs administering federal awards (NIH, DoD, etc.,) are likely to be aware that organizational expenses related to lobbying are unallowable for federal reimbursement under OMB Circular A-122 (2 CFR 230), Cost Principles for Nonprofit Organizations.  However, please also be aware that NPCs should be deducting from their federal indirect cost rate proposals the percentage of their NAVREF dues – and dues paid to any other organizations that lobby - applied to lobbying.  This percentage is provided annually in NAVREF’s end of year financial statements (see Statement of Activities posted at http://www.navref.org/newsletter/pdf/NAVREF_FY08-09_Financials_and_FY09-10_Budget.pdf).  For the NAVREF fiscal year ending September 30, 2009, the percentage was a modest 5%.  The remaining 95% of NAVREF dues are an allowable cost under the A-122 rules.  Going forward, we will provide this information in membership renewal materials so it is readily available.

3.  Letter to New Medical Center Directors Serving on NPC Boards and Web Page

 

In response to questions and comments in 2009 NAVREF Annual Conference evaluation forms, the NAVREF board decided to take steps to help medical center directors (MCDs) who serve on NPC boards become familiar with their NPC roles and responsibilities.  First, shortly after a new MCD is appointed, Jonathan Gardner, FACHE, who is the director of the Southern Arizona VA Health Care System (Tucson) and serves on the NAVREF board in the position allocated for an MCD, will send a personal letter introducing himself as a long time NPC board member and offering his assistance as a peer-to-peer resource.  Additionally, NAVREF has created a new web page designed to provide information of particular interest to statutory VA directors of NPCs.  The objective is to supplement – not replace – the local orientation each NPC offers to new board members and regular training in nonprofit governance.  We hope that new directors and NPC staff will find this web site to be a useful resource. 

 

The form letter that Mr. Gardner will be sending is posted at http://www.navref.org/library/pdf/New_Statutory_VA_Director_Welcome.pdf

. The new web site may be found at http://www.navref.org/bestpractices/gov_New_Statutory_VA_Director.htm.  NAVREF welcomes comments and additions to the web site.   If your directors are asking questions not found in the FAQs section, please forward them to bwest@navref.org so we may add them to the web site.

 

4. Membership Survey Results

Many thanks to all who completed our 2009 membership survey and shared their views on everything from NAVREF programs to the issues that are most on your minds.  The results have been invaluable in planning the NAVREF board’s upcoming “Strategic Planning Summit” and will be used to inform decisions on how NAVREF can best serve its members in the coming years.  In the meantime, we are following up to set up new mentor relationships between experienced and new executive directors.  We sincerely appreciate that a large number of executive directors volunteered to provide this invaluable service.

5. CRADA_Assistance

In the membership survey, a number of NPC executive directors agreed to make themselves, or their staff members with responsibility for CRADAs, available to assist other NPCs in negotiating these agreements.  The NAVREF office is in the process of contacting each of these individuals to obtain an understanding of the type of assistance they are willing to offer such as responding to an occasional question; offering advice on negotiations; or taking over negotiations for an NPC.  Any NPCs interested in help should contact the NAVREF office, and we will do our best to match you up with someone offering the level of assistance you need.

6. IRS Form 990: Executive Compensation Comparables

Do you recognize the following question?ion?

 

Part VI.  Governance, Management, and Disclosure, Section B. Policies, Line 15.   

Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision:

a. The organization’s CEO, Executive Director, or top management official?

b. Other officers or key employees of the organization? 

Describe the process in Schedule O.

 

In response to growing awareness of the need to justify executive compensation and for compliance with Line 15 of Part VI, Section B, in the IRS Form 990, the NAVREF office is often asked for comparability data for NPC executive director pay.  To respond, NAVREF has compiled information regarding executive director compensation from NPC 990s collected in June 2009 in conjunction with NAVREF’s membership renewals. 

 

To provide a more accurate picture for comparability purposes, the spreadsheet contains data from the following 990 fields:  NPC location, revenues, number of employees, executive director compensation, employer contributions to employee benefits, total executive director compensation (actual), number of hours worked per week, and annualized compensation. 

 

If you are interested in the NPC executive director comparability data, please send an email to amurakami@navref.org

.

7. NPC Support for Travel

 

NPC travel reimbursements remain among the top 4 expenditure issues (along with relatedness to VA research or an approved education activity; NPC pay for VA employees; and food costs) likely to be subject to in-depth scrutiny by oversight organizations like the Nonprofit Program Office or the VA Office of Inspector General (OIG).  In recent weeks, questions have arisen about NPC support for travel.  These include:

 

NPC support for foreign travel and/or for travel undertaken while a VA employee is on annual leave.  Requests for NPC support in these circumstances should undergo rigorous scrutiny of the reason for the travel.  The NPC should require solid justification and should carefully review all reimbursement documentation. Of particular note, NPCs should be cautious about supporting multiple visits to the same foreign country or when business travel is combined with vacation time.

Travel reimbursement documentation. A monthly credit card statement may be useful to document the exchange rate conversion for foreign travel, but it is not sufficient documentation for reimbursement.  NPCs should be following an “IRS accountable plan” for travel – and all other – reimbursements.  Such a plan requires submission of original receipts for hotel and air travel at a minimum.

 

Additionally, NPCs may wish to regularly remind VA employees that VA travelers are responsible for following local VA policies applicable to travel.  VA employees are also responsible for obtaining VA approvals for absence from their normal workplace and for acceptance of travel support from a non-governmental organization such as an NPC. 

 

NPCs should be aware that when OIG reviews an expenditure, their investigators are required to conclude that the expenditure is either for business or is personal; there is no accommodation for expenditures that may appear to have aspects of each.  If an NPC’s supporting documentation for is insufficient to support reaching the conclusion that the expense – for travel or other reimbursements - had a legitimate business purpose, that is, related to VA research or to an approved education activity, the OIG must conclude that the expense was personal and therefore is unallowable for NPC support.

 

For discussion of travel and an IRS accountable plan for reimbursements, please go to:  http://www.navref.org/library/Travel_Policy.htm

 

8. Discount on Nolo Press Human Resource Reference Books and Other Publications

 

When responding to questions related to human resource management, the NAVREF office often relies on books published by Nolo Press.  We have found the following to be particularly helpful in the HR area:

 

 

By setting up a “trade account” with Nolo, NPCs may obtain a 40% discount on purchases.  To set up a trade account, call 800-955-4775.  In addition to providing name, address, etc., you will be asked to fax Nolo a copy of your IRS letter of exemption from federal taxes.  After establishing a nonprofit trade account, you will be able order discounted books by calling, emailing or faxing the trade account office at tradecs@nolo.com.

 

Although NAVREF’s responses to questions and information provided in these books cannot replace individualized legal advice, we have found them to be a useful starting point when questions arise.  For definitive guidance, NPCs should consult an attorney licensed to practice in your state.

 

9. Update Your NAVREF Profile

 

If you have not already done so, please take a few minutes to populate the fields in your “NAVREF Member Profile” (http://navref.org/institution-profile/list.php).  NAVREF regularly refers pharmaceutical companies and other potential research sponsors to this web site.  Your NPC and VAMC may be missing out on possible studies if your profile isn’t complete. 

 

Of particular interest to sponsors are the fields describing your affiliated VAMC and research program as well as those providing the name and contact information for the staff member responsible for contracts and grants.   Also, NAVREF members have reported that this is a useful networking tool when NPCs have provided contact information for senior staff members.  Please input any missing information and update your profile on a regular basis.  If you have misplaced your NPC’s username or password, send an email request to smathew@navref.org

 

10. 2010 Annual Conference – Mark Your Calendar

 

Please be sure to mark your calendar for the 2010 NAVREF Annual Conference in Washington, DC: 

 

Sunday, October 17 through Wednesday, October 20

Marriott Washington at Metro Center

 

The conference program is shaping up, and we expect to have the registration web site up and running before the end of March.

 


Questions or comments about this Update may be directed to:
Email:
navref@navref.org | Phone: 301-656-5005 | Fax: 301-656-5008


 

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last updated: 01/04/10

 

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