Veterans Medical Research Foundation Enrichment Funds Policy   

                  
Purpose:   The enrichment fund policy defines the source, purpose and use of VMRF enrichment funds allocated to VMRF investigators.

Overview:  Enrichment funds are earned throughout the VMRF’s fiscal year (FY) beginning October 1 and ending September 30.  Enrichment allocations are based on the expenses reflected in the  financial reports as of the end of VMRF’s fiscal year (September 30).
These funds are intended to give VA investigators and VA Services (through their VA service chiefs) access to a portion of the VMRF indirect cost collection for VMRF administered funds earning the full VMRF negotiated indirect cost rate.  These funds are intended to provide a funding source for items that are typically not allowed on federally funded projects, yet are in support of the research environment of VA approved research.  VMRF encourages the use of enrichment funds for indirect cost expenses that benefit investigators’ infrastructure and for general operating expenses that cannot be attributed to a specific research project. Enrichment funds are intended to be used within 1 to 2 years of receipt.  As defined in this policy, investigators can reach a ceiling on their allowable enrichment balance and may forego additional allocations if they have underutilized previously earned enrichment allocations.

Application:  Based on the VMRF Board of Directors approval of VMRF’s annual budget, enrichment funds may be allocated at a Board approved level. Enrichment funds are typically assigned in part to individual investigators who earned the indirect cost funds, and in part to their VA Service in recognition of the VA Service’s support of the investigators’ research.

Enrichment allocations are distributed annually during or shortly after the first quarter of the fiscal year following the fiscal year in which they are accrued.

A project number, termed an “enrichment project” is created for each investigator receiving enrichment funds and will not change from year to year.  Enrichment funds are non-transferrable.  This account is distinct from a transfer account.

The total amount of funds in an investigator’s enrichment account may not exceed the sum of the two highest allocations out of three allocations for consideration.  These three allocations are those awarded in the prior two years and the Earned Investigator Enrichment Allocation for the current year.

Enrichment funds are earned only on funds collecting the full VMRF negotiated federal indirect cost rate at the time of the project start date. The current VMRF negotiated indirect cost rate is posted at http://www.vmrf.org/research-admin/cg/ref-sheet-grants.html

 

Earned Investigator Enrichment Allocation =

 

Allowable Enrichment Allocation to the VA investigator =

Consistent with this policy, new investigators who have never received an enrichment allocation, will receive the total earned gross enrichment allocation during their first two years of enrichment earnings.  Enrichment fund balances resulting from allocations dating back to November 2008 or earlier are grandfathered and will not be reduced to the current cap amount. 

For grants with multiple principal investigators, the indirect cost earning will be divided evenly between the multiple principal investigators. 

Once enrichment funds are allocated to the specific accounts, the individual investigator has control over the use of the individual enrichment funds; the service chiefs have control over the use of their individual service enrichment fund.  However, all uses of enrichment funds must be in support of the general research infrastructure and cannot be project specific, as all enrichment expenses must become part of VMRF’s indirect cost pool. Project specific expenses are unallowable indirect costs, unless they are related to bid and proposal expenses.  All expense of enrichment funds must comply with relevant policy and regulations.

By signing purchase orders authorizing the use of enrichment funds, investigators specifically give assurance that the requested expense is not project specific (except bid & proposal expenses).  Bid and proposal expenses relate to VA R&D approved projects undertaken to develop pilot data for a planned future proposal for submission. 

VMRF management will review all requests for purchases using enrichment funds as the funding source and may ask for additional information or may disallow the expense as an enrichment expense.

Unallowable expenses include, but may not be limited to:

• Cost overruns from other funded projects
• Other VMRF unallowable costs such as entertainment, alcohol, etc.

Allowable expenses include, but are not limited to:

• Subscriptions
• Memberships in professional organizations (cannot include lobbying costs)
• Moderate alterations of space (needs to be specifically authorized)
• Furniture
• Equipment
• Service contracts
• Software that supports indirect activities
• Personnel that support indirect activities such as administrative support functions within a VA service
• Professional development
• Recruitment expenses

All VMRF enrichment fund uses need to be initiated via purchase order or VMRF pre-approved travel requests. Check requests will not be accepted.

In the case of investigators leaving the VASDHS/VMRF research community, remaining enrichment funds will revert to VMRF administration. Enrichment funds cannot be transferred to another institution or another investigator.

Exceptions:

Exceptions to the above policy may be granted by the VMRF Chief Executive Officer.


(Previously) Approved by the VMRF Board of Directors: 11/14/2008
Updated review and approval by the VMRF Board of Directors: 9/30/2010