2016-06-03T13:08:28-05:00 2015-12-31 GRANT THORNTON LLP 171 N CLARK ST SUITE 200 CHICAGO IL 60601 990 2015-01-01 363776789 National Insurance Crime Bureau % ROBERT JACHNICKI NATI 8475447000 1111 East Touhy Avenue Suite 400 Des Plaines IL 60018 ROBERT JACHNICKI CFO/TREASURER 8475447000 2016-06-02 true Bridget T Roche P00666837 8475447000 2015 2016-09-27 15:27:22Z NICB ROBERT JACHNICKI 1111 East Touhy Ave STE 400 Des Plaines IL 60018 54178061 false X www.nicb.org X 1992 IL To lead a united effort of insurers, law enforcement and representatives of the public to prevent and combat insurance fraud and crime. 16 16 402 0 0 0 0 46507163 48957440 2787924 1130692 319186 5790 49614273 50093922 0 0 0 0 33786421 36823661 0 0 0 12650854 12501290 46437275 49324951 3176998 768971 45588459 42653699 25042321 22050675 20546138 20603024 X TO LEAD A UNITED EFFORT OF INSURERS, LAW ENFORCEMENT, AND REPRESENTATIVES OF THE PUBLIC TO PREVENT AND COMBAT INSURANCE FRAUD AND CRIME THROUGH DATA ANALYTICS, INVESTIGATIONS, TRAINING, LEGISLATIVE ADVOCACY AND PUBLIC AWARENESS. false false 32470752 36112885 Investigations - NICB's investigative efforts produced 1,962 Prosecutive Administrative Actions (PAA) related to medical fraud, 2,426 in the commercial fraud segment, and 2,198 in the organized vehicle crime segment. Additionally there were 77 recoveries of cargo loads and recoveries of 1,172 pieces of heavy equipment. Also, NICB repatriated 2,268 vehicles for member companies. 6791776 7553586 Data Analytics - Published 722 med aware alerts and identified 36 fraud rings. There were no webinars. 2122536 2360614 Training - Provided training for 69,944 member company and 17,416 law enforcement personnel. Added three NICTA courses, released Mobile Device Interview Application version 2 and conducted a regional medical investigations academy. 2634817 2930355 44019881 false false false true false false false false false true false false false true true true false false false false false false false false false false false false true false false false false false false false false false false false false false true true true false true 21 0 true 402 true false false false false false false X 16 16 false false false false false true false true true false false true true true true true true true true false OK X ROBERT JACHNICKI 8475447000 1111 E TOUHY AVE STE 400 Des Plaines IL 60018 Nancy Pierce Chair 5.0 0.0 X 0 0 0 Michael J Prandi Vice Chair 5.0 0.0 X 0 0 0 Kenneth E Rosen Immediate Past Chair 2.0 0.0 X 0 0 0 David A Bano Member 2.0 0.0 X 0 0 0 Rusty Beaty Member 2.0 0.0 X 0 0 0 Kelly Bever Member 2.0 0.0 X 0 0 0 Michael Capuzzi Member 2.0 0.0 X 0 0 0 Steven M Hatch Member 2.0 0.0 X 0 0 0 James McSheffrey Member 2.0 0.0 X 0 0 0 Matthew C Murphy Member 2.0 0.0 X 0 0 0 Mike Neubauer member 2.0 0.0 X 0 0 0 Ross Powell Member(1/1/2015 6/25/2015) 2.0 0.0 X 0 0 0 Michael J Randall Member 2.0 0.0 X 0 0 0 Mark C Russell Member 2.0 0.0 X 0 0 0 Nicholas Seminara Member 2.0 0.0 X 0 0 0 Michael E Stapleton Member 2.0 0.0 X 0 0 0 Michael W Hawkins Member 2.0 0.0 X 0 0 0 Joseph Wehrle Chief Executive Officer 50.0 0.0 X 561318 0 17536 James Schweitzer Chief Operating Officer 50.0 2.0 X 282212 0 14558 Daniel Abbott Chief Information Officer 50.0 2.0 X 240917 0 60656 Robert Jachnicki Chief Financial Officer 50.0 5.0 X 233528 0 55581 Andrew Sosnowski Sec/Legal Counsel 50.0 2.0 X 221605 0 34833 Brian Smidt Vice President/Data Analytics 40.0 0.0 X 179508 0 50785 Thomas Welsh Vice President/Training 38.0 20.0 X 138641 38325 33525 Roger Morris Vice President/Communications 40.0 0.0 X 184988 0 27783 Barbara Low Vice President Human Resources 40.0 0.0 X 170923 0 27455 Judy Fitzgerald Vice President/Govt. Affairs 40.0 0.0 X 180306 0 50545 Linda Schwartz Vice President Membership 40.0 0.0 X 174711 0 27249 James Hertz Associate General Counsel 40.0 0.0 X 158367 0 32876 Robert Jones Director Field Operations 40.0 0.0 X 149670 0 9646 Frederick Lohmann Director Field Operations 40.0 0.0 X 138746 0 32132 Ralph Lumpkin Director Field Operations 40.0 0.0 X 145698 0 9642 Dana MacDonald Director Field Operations 40.0 0.0 X 143043 0 9364 3304181 38325 494166 52 false true false 0 0 NONDEDUCTIBLE MEMBERSHIP DUES 900099 46879045 46879045 VEHICLE FINANCE PROGRAM 525990 85375 85375 LICENSE PLATE READER PROGRAM 900099 684050 684050 USER FEES 900099 842751 842751 SPECIAL INVESTIGATION ACADEMY TUITION 611710 97200 97200 369019 369019 48957440 1110056 1110056 0 0 0 0 0 4104775 4084139 20636 20636 20636 0 0 0 RESTITUTION CONTRIBUTION 900099 5790 5790 5790 50093922 48957440 1136482 0 0 0 0 2969163 2197181 771982 0 24192570 22015239 2177331 -323000 -293930 -29070 7968037 7250914 717123 2016891 1835371 181520 0 203902 173317 30585 74653 74653 130692 130692 0 60485 60485 519151 363406 155745 130809 119036 11773 4514138 4107866 406272 692077 629790 62287 0 1579208 1437079 142129 744430 677431 66999 0 284538 258930 25608 10797 10797 0 614251 558968 55283 704652 641233 63419 AUTO OPERATIONS 1967883 1791410 176473 REPORT AND SURV. SUPPORT 264228 240447 23781 . 0 . 0 5396 5396 49324951 44019881 5305070 0 1800 1551 4623964 2564022 0 0 1064019 2095065 0 0 0 0 0 0 0 0 1169959 1422703 7117038 5557133 2034660 1559905 36573705 34895811 0 0 0 0 0 0 120352 114642 45588459 42653699 3177970 3365033 0 0 500158 34264 0 0 0 0 0 0 0 0 0 0 21364193 18651378 25042321 22050675 X 20534316 20585412 11822 17612 0 0 20546138 20603024 45588459 42653699 X 768971 -1771875 1059790 X false true X true false false false false 46879045 130692 130692 130911 1636380 1009301 627079 4669365 4128286 541079 811293 419546 391747 1559905 0 ACCRUED OTHER LIABILITIES 1587745 DUE TO NICTA 11125 DUE TO ISO 1629508 POST RETIREMENT BENEFITS NONCURRENT 15423000 18651378 X 48322047 -1771875 -1771875 50093922 50093922 49324951 49324951 49324951 FIN 48 FOOTNOTE FORM 990, SCHEDULE D, PART X, LINE 2 NICB HAS RECEIVED A FAVORABLE DETERMINATION LETTER FROM THE INTERNAL REVENUE SERVICE, STATING THAT IT IS EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(4) OF THE INTERNAL REVENUE CODE (IRC) OF 1986, AS AMENDED, EXCEPT FOR INCOME TAXES PERTAINING TO UNRELATED BUSINESS INCOME. THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ISSUED GUIDANCE THAT REQUIRES TAX EFFECTS FROM UNCERTAIN TAX POSITIONS TO BE RECOGNIZED IN THE FINANCIAL STATEMENTS ONLY IF THE POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. MANAGEMENT HAS DETERMINED THERE ARE NO MATERIAL UNCERTAIN POSITIONS THAT REQUIRE RECOGNITION IN THE FINANCIAL STATEMENTS. ADDITIONALLY, NO PROVISION FOR INCOMES TAXES IS REFLECTED IN THESE FINANCIAL STATEMENTS AND THERE IS NO INTEREST OR PENALTIES RECOGNIZED IN THE STATEMENT OF ACTIVITIES OR STATEMENTS OF FINANCIAL POSITION. THE CALENDAR YEARS ENDING 2012, 2013, 2014 AND 2015 ARE OPEN TO AUDIT FOR BOTH FEDERAL AND STATE INCOME TAX PURPOSES. X X X X false false false false false false false true false Joseph Wehrle Chief Executive Officer 339164 0 215296 0 6858 0 15900 0 3000 0 580218 0 0 0 James Schweitzer Chief Operating Officer 214567 0 62730 0 4915 0 12922 0 3301 0 298435 0 0 0 Daniel Abbott Chief Information Officer 180477 0 55080 0 5360 0 36329 0 25821 0 303067 0 0 0 Robert Jachnicki Chief Financial Officer 178990 0 53550 0 988 0 31254 0 25780 0 290562 0 0 0 Andrew Sosnowski Sec/Legal Counsel 167735 0 51000 0 2870 0 10506 0 25839 0 257950 0 0 0 Brian Smidt Vice President/Data Analytics 154262 0 23715 0 1531 0 26458 0 25616 0 231582 0 0 0 Thomas Welsh Vice President/Training 110110 38325 22325 0 6206 0 9198 0 25543 0 173382 38325 0 0 Roger Morris Vice President/Communications 153554 0 23153 0 8281 0 9539 0 19503 0 214030 0 0 0 Barbara Low Vice President Human Resources 146213 0 22358 0 2352 0 9211 0 19463 0 199597 0 0 0 Judy Fitzgerald Vice President/Govt. Affairs 148944 0 22355 0 9007 0 32301 0 19157 0 231764 0 0 0 James Hertz Associate General Counsel 137613 0 13833 0 6921 0 8549 0 25457 0 192373 0 0 0 Robert Jones Director Field Operations 131425 0 12899 0 5346 0 8010 0 2282 0 159962 0 0 0 Frederick Lohmann Director Field Operations 122884 0 12569 0 3293 0 7805 0 25364 0 171915 0 0 0 Linda Schwartz Vice President Membership 146434 0 21420 0 6857 0 9005 0 19436 0 203152 0 0 0 Ralph Lumpkin Director Field Operations 129513 0 12892 0 3293 0 8006 0 2503 0 156207 0 0 0 Dana MacDonald Director Field Operations 127414 0 12475 0 3154 0 7728 0 2381 0 153152 0 0 0 NON FIXED PAYMENTS Schedule J, Part I, Line 7 Employees are eligible for bonuses, but bonuses are not guaranteed as part of their compensation or specified in a contract. Whether any bonus is paid and the amount paid solely depends on whether the company meets the performance metrics specified in the bonus payment schedule. A bonus is paid only if the performance rating is 85% or above. The performance rating for 2014 was 98%. Performance targets are set forth at the beginning of the budget year in the operation plan and approved by the Board. The award gradients for the CEO was 65%, Other Officers at 30% and the key employees at 10%-15%; of their base salaries. The total bonus and individual officer bonus is determined and approved by the Executive Committee which is the governing body of the Executive/Compensation/Nominating Committee. OTHER PROGRAM SERVICES FORM 990, PART III, LINE 4D Public awareness and legislative advocacy Monitored proposed studies to determine if input is required to be provided to the Healthcare Fraud Prevention Partnership and to share across partner organizations. Was a key member of the NMVTIS Advisory Committee. 10 new anti-fraud laws were enacted in CA, FL, KY, MN, NJ and TX. Produced 10 multimedia releases and produced 8 public awareness campaigns. EXECUTIVE COMMITTEE AND OTHER COMMITTEES FORM 990, PART VI, LINE 1A AT EACH ANNUAL MEETING OF THE BOARD, THERE MAY BE ELECTED FROM ITS MEMBERSHIP AN EXECUTIVE COMMITTEE. THE EXECUTIVE COMMITTEE SHALL CONSIST OF THE CHAIRMAN AND VICE CHAIRMAN OF THE BOARD AND NO MORE THAN SEVEN (7) MEMBERS ELECTED FROM THE MEMBERSHIP OF THE BOARD. THE EXECUTIVE COMMITTEE SHALL BE VESTED WITH THE AUTHORITY TO ACT BETWEEN MEETINGS OF THE BOARD, SUBJECT TO THE LIMITATIONS OF THE GNFPCA. THE CHAIRMAN OF THE BOARD SHALL BE THE CHAIRMAN OF THE EXECUTIVE COMMITTEE. THE BOARD, BY RESOLUTION ADOPTED BY A MAJORITY OF THE GOVERNORS PRESENT AT A MEETING AT WHICH A QUORUM IS PRESENT, MAY, AS IT DEEMS FIT, ESTABLISH OR APPOINT OTHER COMMITTEES, THE CHAIRMAN THEREOF TO BE DESIGNATED BY THE BOARD IN THE MAKING OF SUCH APPOINTMENTS. EACH SUCH COMMITTEE SHALL HAVE TWO (2) OR MORE GOVERNORS, AND EACH COMMITTEE MEMBER SHALL BE A DULY AUTHORIZED REPRESENTATIVE OF A MEMBER OF THE CORPORATION. ANY COMMITTEE MEMBER MAY BE REMOVED BY THE BOARD WHENEVER, IN ITS JUDGMENT, THE BEST INTERESTS OF THE CORPORATION ARE TO BE SERVED BY SUCH REMOVAL. MEMBERS OR STOCKHOLDERS WHO MAY ELECT Form 990, Part VI, Line 7a A six (6) member executive committee serves as a nominating committee and recommends nominees to the governing body who approves the nomination(s). FORM 990 REVIEW PROCESS Form 990, Part VI, Line 11b The Form 990 is prepared by a national public accounting firm. An updated final draft is reviewed and approved by the NICB Audit/Finance Committee and provided electronically to the full NICB voting board for comments before it is filed with the IRS. CONFLICT OF INTEREST POLICY MONITORING & ENFORCEMENT Form 990, Part VI, Line 12c National Insurance Crime Bureau (NICB)'s officers, directors, trustees, key employees, and highest compensated employees are subject to the conflict of interest policy. NICB's compliance officer is in charge of monitoring employee activities for compliance with its conflict of interest policy. Conflicts are reported to the compliance officers, and the compliance officer reports all matters to the NICB Audit/Finance Committee for review. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, LINE 15A AND 15B Salary rates are based on comparable salary data compiled by human resources that approximates NICB's operations, candidate's qualifications and expertise. NICB has an internal committee of department heads that review candidates. The NICB Board of Governers oversees candidates and salary levels for officer positions. For its compensation process, a compensation committee, independent compensation consultant, compensation survey data, and approval of compensation by the board of governors is required. The Board review is done annualy, and the outside consultant review is done periodically. The review process for NICB is contemporaneously documented in the organization's minutes. GOVERNING DOCUMENTS MADE AVAILABLE Form 990, Part VI, Line 19 Articles, bylaws, and conflict of interest policy are made available to the public upon request. NICB Consolidated Pension Plan Form 990, Part X NICB had an unfunded commitment to the pension master trust at December 31, 2014, of $1,308,045, as its pension liability was not fully funded. NICB redeemed its investment in the master trust by transferring the plan assets to purchase a group annuity contract on May 19, 2015. The annuity cost at contract date was 27,726,364 which includes annuity purchase price and contingency assessment, and market value of assets at $24,321,331, requiring a payment to the Pension Plan for Insurance Organizations (the PPIO Plan) of $3,405,033 to fully fund the annuity. Recognizing the liability of $1,308,045 at the contract date, the net expense incurred in 2015 was $2,096,988. The group annuity contract transaction resulted in no future pension obligations to NICB. RECONCILIATION OF NET ASSETS FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES CONSIST OF: OTHER THAN NET PERIODIC PENSION COST: $1,054,000 RESTITUTION CONTRIBUTION $5,790 TOTAL: $1,059,790 National Crime Bureau Services 1111 East Touhy Ave Ste 400 Des Plaines IL 60018 201193507 Public Safety IL 501(c)(3) 09 NA true National Insurance Crime Training Acad 1111 East Touhy Ave Ste 400 Des Plaines IL 60018 311768814 Public Safety IL 501(c)(3) 09 NA true false false false true true false false false false false false false true true false true false false National Insurance Crime Training Academy D 62440 FMV National Insurance Crime Training Academy o 54027 FMV