Purpose:

The enrichment fund policy defines the purpose and use of VMRF enrichments funds allocated to VMRF investigators.

Overview:

Enrichment funds are earned throughout the VMRF’s fiscal year (FY) beginning October 1 and ending September 31. These funds are intended to give investigators and service chiefs access to some of the VMRF indirect cost collection for VMRF administered funds earning the full VMRF negotiated indirect cost rate. It is VMRF’s policy to encourage the use of enrichment funds for indirect cost expenses which benefit investigators infrastructure and general operating expenses which cannot be attributed to a specific research project.

Definition:

Enrichment funds are earned only on funds collecting the full VMRF negotiated federal indirect cost rate. The current VMRF negotiated indirect cost rate is posted at http://www.vmrf.net/services/cg/ref-sheet-grants.html

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 usually distributed after the first quarter of the fiscal year following the fiscal year in which they are accrued. The total amount of enrichment fund balance in each investigator’s enrichment fund is capped to be no more than the sum of the two highest annual allocations of the current and the two previous years.   For example:

Scenario 1: Investigator uses enrichment funds on a regular basis and did not accumulate a large fund balance.  The current FY enrichment allocation will be credited in full to the investigator’s enrichment fund.

Scenario 2: Investigator does not use enrichment funds on a regular basis and accumulated a large fund balance.  Current FY enrichment allocation will be reduced due to capped total enrichment balance

New investigators who have never received an enrichment allocation, will receive the total gross enrichment allocation during their first two years of enrichment earnings.   

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.

All uses of enrichment funds must be in support of the general research infrastructure and cannot be project specific. Enrichment expenses cannot be project specific, because 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.

By signing purchase orders authorizing the use of enrichment funds, investigators specifically give assurance that the requested expense is non-project specific (except bid & proposal expenses).

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 cost 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.

Approved by the VMRF Board of Directors: 11/14/2008