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NAVREF UPDATES –
JANUARY 27, 2010
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Status of Efforts to Update the NPC Authorizing Statute
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IDC Deduction for NAVREF Lobbying
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Letter to New Medical Center Directors Serving on NPC Boards and Web Page
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Membership Survey Results
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CRADA Assistance
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IRS Form 990: Executive Compensation Comparables
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NPC Support for Travel
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Discount on Nolo Press Human Resource Reference Books and Other Publications
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Update Your NAVREF Profile
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2010 Annual Conference – Mark Your Calendar
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.
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.
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
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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.
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.
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.
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
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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
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.
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
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.
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Questions or comments about this Update may be directed to:
Email:
navref@navref.org
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Phone: 301-656-5005 |
Fax: 301-656-5008 |
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