# Presentation: 686465

## VA NPC Program OfficeNancy MaherProgram Manager

## 2002 NPC Annual Report Highlights

**2002 NPC Annual Report Highlights**
**Governance Training**

## NPC Locations

- In 2002 there were 90 Research & Education and Education-only NPCs operating in 40 states, Puerto Rico and D.C.

**Notes:**
’02 Activity
	Des Moines NPC was dissolved in March 2002
 	Manhattan NPC merged with the Brooklyn NPC 
	Northampton NPC commenced activity on January 1, 2002

Three education only NPCs (Bay Pines, Richmond, & W. Palm Beach) were included in the 2002 Annual Report

3 NPCs: Dayton, Fresno, and Lexington had no financial activity during 2002 annual report

(6 States) Connecticut, Delaware, Idaho, Kansas, New Hampshire, and North Dakota are the only states that VA currently performs research but without a Non-Profit Corporation (NPC). 

Subsequent to this report the Houston non profit and the Hampton non profit were initiated. They have articles of incorporation and are currently recruiting board members. Bay Pines education only NPC dissolved in ‘03
So currently, there are 89 active Research & education and education only NPCs
West Haven may possibly start a non-profit in ‘04. 

## 2002 NPC Revenues

- $185 Million, Reported by 85 NPCs
- Revenue Increased 52% Between 1998-2002
- 6% or $11M Increase Over Prior Year
- Median Revenue – approx. $1M

- 1998

- 1999

- 2000

- 2002

- 2001

**Notes:**
VA clinicians and scientists continue to be successful in competing for private and non-VA public sector research and education funding. 

Less than 2% or apprx. $3M was in direct support of education

## 2002 NPC Revenues

**Governmental Revenues = $65.7 million**
**35% of  Total NPC Revenue**
**10% or $6M Increase Over Prior Year**
**NIH Funding = $43M **
**65% of NPC Government Revenue**
**23% of Total NPC Revenue**
**27 NPCs are administering NIH grants**
**Top 5 NPCs Receiving NIH Funding:**
**San Francisco ($18.3M)**
**San Diego ($12.6M)**
**Baltimore ($1.7M)**
**Palo Alto ($1.7M)**
**Los Angeles ($1.3M)**

**Notes:**
27   NPC – NIH

20   NPC – DoD

17   NPC – OTHER

## 2002 NPC Revenues 

**Non-Governmental Revenues = $115.5 million**
**62% of Total NPC Revenue**
**7% or $7M Increase Over Prior Year **
**Top 5 NPCs receiving Non-governmental funding**
**San Diego ($ 8.8M)**
**Minneapolis ($ 7.3M)**
**Portland ($ 5.5M)**
**Richmond ($ 5.2M)**
**Loma Linda ($4.9M)**
**Interest Income Revenue = $4.4 million**
**2.4% of Total NPC Revenue**

## 2002 NPC Expenditures

- 1998

- 1999

- 2000

- 2001

- 2002

- Total Expenditures = $174 million
- Expenditures Increased 65% Between 1998-2002
- 5% or $8 Million Increase Over Prior Year

**Notes:**

NPC expenditures pay salaries, purchase equipment, and maintain and upgrade VA facilities supplement VA appropriated funds for research. 

Less than 2% in direct support of education

## 2002 NPC Expenditures

-  Total Salary Expenditures = $93 million
- 53% of Total NPC Expense
- 12% or $10 Million Increase From Prior Year

- 2000

- 2001

- 2002

**Notes:**
NPC salary expenditures supported a variety of personnel, ranging from administrative and clerical staff, to research technicians and professional staff including nurses, physicians and pharmacists.  

Many VAMCs benefited directly from research and patient-care manpower provided by NPC-salaried employees. 

## 2002 NPC Expenditures

- Total Travel Expense = $5 million
- 18% or $.7 Million Increase Over Prior Year
-  3% of Total NPC Expenses

- 2000

- 2001

- 2002

## 2002 NPC Expenditures

- Total Other Expense = $76 million
- 44% of Total NPC Expenses

**Other Exp**
**44%**

**Notes:**
OTHER EXPENSE

[1]  Contract Services include: outside services; contract labor; legal, consulting & subcontracts services.

[2]  Study Expenses includes: animal research cost; patient cost; subject compensation; and IRB cost.

[3]  These expenditures are for Intergovernmental Personnel Agreements (IPA) and Joint Personnel   
Agreements (JPA), which allow temporary reassignment of employees between VA and the Non-Profit  
Corporations. NPCs provide reimbursements or payments to VA facilities on a regular basis for various services provided in support of approved research.

[4]  Miscellaneous Expenses include: equipment purchase, rental & repair; depreciation; dues & subscriptions; training, education, & recruitment cost; meetings & conferences; and other operational expenses.

[5]  Administrative expenditures included accounting and audit fees; insurance; legal fees; office supplies; telephone; postage and shipping; office equipment rental, purchase and maintenance; printing and publication, etc. 

## NPC Board of Directors 

**NPC Board of Directors **
**Governance Training**

## Governance Training - Content

**Overview of NPC Board member roles and responsibilities**
**Understanding NPC statutory authority**
**Understanding NPC mission**
**Understanding risks and liabilities**
**Basic leadership**
**Financial Oversight**
**Approving annual operational budgets**
**Understanding Financial Statements**
**Establishing NPC financial policies and procedures**
**Ensuring adequate resources and cash flow**

## Governance Training - Content

**Financial Oversight cont.**
**Fundraising**
**Selecting an auditor**
**Understanding and responding to an auditor’s management letter**
**Ethics**
**Establishing and following federal and NPC conflict of interest policies**
**Recognizing and managing potential conflicts of interest**
**Ensuring adherence to ethical standards**
**Compensation issues**

## Governance Training

**Delivery Format**
**Face-to-face + Videoconferencing**
**VA Satellite broadcast**
**Computer-based training**
**Tentative Timeline**
**Completion of Training Module - Feb. ’04**
**Piloting of Training Module – March ’04**
**On-site training – April ’04 to July ‘04**