As NPCs Begin Their Third Decade . . . Recent Developments in Oversight and Ongoing Challenges

As NPCs Begin Their Third Decade . . . As NPCs Begin Their Third Decade . . . Recent Developments in Oversight and Recent Developments in Oversight and

Ongoing ChallengesOngoing Challenges

Kim Collins, AdministratorKim Collins, AdministratorNonprofit Program Office (NPPO)Nonprofit Program Office (NPPO)

Barbara West, Executive DirectorBarbara West, Executive DirectorNational Association of Veterans’ Research and Education National Association of Veterans’ Research and Education

Foundations (NAVREF)Foundations (NAVREF)

OverviewOverview

Nonprofit Program Office (NPPO) StaffNonprofit Program Office (NPPO) Staff NPPO GoalsNPPO Goals 2006 and 2007 Annual Reports Update2006 and 2007 Annual Reports Update NPC Oversight PlansNPC Oversight Plans Legislation – 2008 and 2009Legislation – 2008 and 2009 Governance Challenges and SolutionsGovernance Challenges and Solutions QuestionsQuestions

NPPO StaffNPPO Staff

Administrator - hired September 2008Administrator - hired September 2008

Staff Assistant - on board December 2008Staff Assistant - on board December 2008

Auditor/Accountant - in recruitment phaseAuditor/Accountant - in recruitment phase

Accomplishments To DateAccomplishments To Date

Establishment of a database for use by the NPPOEstablishment of a database for use by the NPPO

Collaboration with the NPC Steering CommitteeCollaboration with the NPC Steering Committee Addressing the OIG findings about VA NPCsAddressing the OIG findings about VA NPCs Formulating NPC OversightFormulating NPC Oversight

Compilation of the 2006 and 2007 Annual Reports to Compilation of the 2006 and 2007 Annual Reports to CongressCongress

2006 and 2007 Annual Reports2006 and 2007 Annual Reports

NPCNPCAnnual RevenueAnnual Revenue

2005 - 20072005 - 2007

$227,239,899

$230,106,691

$250,453,983

2005

2006

2007

20062006 20072007 delta %delta %

$ 220 million $ 220 million $ 243 million$ 243 million 9%9%

Total NPC Expenditures

Financial PositionFinancial Position

For 2006, NPCs reported $194.1 million in total net For 2006, NPCs reported $194.1 million in total net assets, this was a 6% increase over the prior yearassets, this was a 6% increase over the prior year

For 2007, NPCs reported $208.4 million in net assets, For 2007, NPCs reported $208.4 million in net assets, this was a 7% increase over the prior yearthis was a 7% increase over the prior year

This amount includes research projects funds held by This amount includes research projects funds held by the nonprofits as well as operating funds and fiscally the nonprofits as well as operating funds and fiscally prudent reservesprudent reserves

Conclusions…Conclusions… The VA-affiliated NPCs continue to make a The VA-affiliated NPCs continue to make a

substantial contribution to the VA research and substantial contribution to the VA research and education missions. education missions.

NPCs are fulfilling their congressional mandate NPCs are fulfilling their congressional mandate

Revenues and expenditures in support of VA research Revenues and expenditures in support of VA research and education programs are holding steadyand education programs are holding steady

VA-affiliated NPCs contribute to the success of VA’s VA-affiliated NPCs contribute to the success of VA’s research and education programsresearch and education programs

NPC Oversight PlansNPC Oversight Plans

VHA Response to OIG Report on VA VHA Response to OIG Report on VA NonprofitsNonprofits

On site reviewsOn site reviews

Evaluation ChecklistEvaluation Checklist

How to Shine During the NPC ReviewHow to Shine During the NPC Review

Prepare a binder containing the supporting Prepare a binder containing the supporting documentation in an easy to find formatdocumentation in an easy to find format

Plan to spend time with the reviewers (if necessary)Plan to spend time with the reviewers (if necessary)

Use the review as an opportunity to review your own Use the review as an opportunity to review your own NPC and make improvements (if needed)NPC and make improvements (if needed)

LegislationLegislation

Passed in 2008 - S. 2162 - Sec. 806 Passed in 2008 - S. 2162 - Sec. 806 (P.L. 110- (P.L. 110-387)387) Provides permanent authority for VAMCs to establish Provides permanent authority for VAMCs to establish

new research corporationsnew research corporations

NAVREF Proposal to Update and Clarify NPC NAVREF Proposal to Update and Clarify NPC authoritiesauthorities Would allow NPCs to merge without the addition of all Would allow NPCs to merge without the addition of all

statutory board membersstatutory board members Numerous other updates and clarifications without Numerous other updates and clarifications without

changing the NPCs’ fundamental characterchanging the NPCs’ fundamental character

Governance ChallengesGovernance Challenges

Challenge: Scheduling Board MeetingsChallenge: Scheduling Board Meetings

Issues: Issues: • Competing demands on board members’ timeCompeting demands on board members’ time

• Time of dayTime of day

Your SolutionsYour Solutions


Challenge: Recruiting Non-VA Statutory Board Challenge: Recruiting Non-VA Statutory Board MembersMembers

Issue: NPC statute requires each NPC to have two board Issue: NPC statute requires each NPC to have two board members who are not federal employeesmembers who are not federal employees



Challenge: Hiring, Compensating and Evaluating the Challenge: Hiring, Compensating and Evaluating the Executive DirectorExecutive Director

Issues: Issues:

• Recruitment – AO, other VA employee or non-VARecruitment – AO, other VA employee or non-VA

• Setting compensation in accordance with IRS rulesSetting compensation in accordance with IRS rules

• Regular evaluationRegular evaluation



Challenge: Identifying and Orienting Officers – Challenge: Identifying and Orienting Officers – Chair, President, Secretary and TreasurerChair, President, Secretary and Treasurer

Issues: Issues:

• Which officers are required? Advisable?Which officers are required? Advisable?

• Statutory VA members as officersStatutory VA members as officers

• ResponsibilitiesResponsibilities



Challenge: Overseeing FinancesChallenge: Overseeing Finances

Issues: Issues:

• Too much or too little financial informationToo much or too little financial information

• Understanding financial statements and audit reportsUnderstanding financial statements and audit reports

• Annual NPC operating budgetAnnual NPC operating budget



Challenge: Handling Transfers when a PI Leaves Challenge: Handling Transfers when a PI Leaves Your VAMCYour VAMC

Issues: Issues:

• Active projects and associated fundsActive projects and associated funds

• Accumulated “residual” fundsAccumulated “residual” funds

• PI moves to another VAMC; leaves VA entirelyPI moves to another VAMC; leaves VA entirely


QuestionsQuestions

Thank you!Thank you!

Kimberly CollinsKimberly [email protected]

202-461-1714202-461-1714

Barbara WestBarbara [email protected]

301-656-5005301-656-5005

Documents

As NPCs Begin Their Third Decade . . . Recent Developments in Oversight and Ongoing Challenges