2015-06-01T09:02:21-05:00 2014-12-31 GRANT THORNTON LLP 175 W JACKSON BLVD STE 2000 CHICAGO IL 60604 990 2014-01-01 363776789 National Insurance Crime Bureau % ROBERT JACHNICKI NATI 8475447000 1111 East Touhy Avenue Suite 400 Des Plaines IL 60018 ROBERT JACHNICKI CFO/Treasurer 8475447066 2015-05-22 true Bridget T Roche P00666837 8475447066 2014 2016-02-25 16:41:14Z NICB Robert Jachnicki 1111 East Touhy Avenue Des Plaines IL 60018 61721659 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 18 394 21 0 131050 0 44811755 46507163 1693751 2787924 114248 319186 46750804 49614273 0 0 0 0 31849120 33786421 0 0 0 11690428 12650854 43539548 46437275 3211256 3176998 44079376 45588459 18256812 25042321 25822564 20546138 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 30612977 34487393 Investigations - NICB's investigative efforts produced 1,821 Prosecutive Administrative Actions (PAA) related to medical fraud, 2,115 in the commercial fraud segment, and 2,083 in the organized vehicle crime segment. Additionally there were 54 recoveries of cargo loads and recoveries of 806 pieces of heavy equipment. Also, NICB repatriated 2,114 vehicles for member companies. 6392852 7201939 Data Analytics - Published 644 med aware alerts identifying 23 fraud rings. Published 410 strategic alerts. Delivered 8 webinars to the industry on emerging trends and patterns. 2321686 2615521 Training - Provided training for 73,838 member company and 18,577 law enforcement personnel. Added two NICTA courses and implemented the National White Collar Crime Center. 1954895 2202309 41282410 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 29 0 true 394 true false false false false false false X 16 18 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 Prandi Vice Chair 5.0 0.0 X 0 0 0 Kenneth Rosen Immediate Prior Chair 2.0 0.0 X 0 0 0 David 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 Michael Convery Member (THRU 7/28/14) 2.0 0.0 X 0 0 0 Steve Hatch Member 2.0 0.0 X 0 0 0 Tom Kaschalk Member (THRU 8/1/14) 2.0 0.0 X 0 0 0 Michael Randall Member 2.0 0.0 X 0 0 0 Mark Russell Member 2.0 0.0 X 0 0 0 Nicholas Seminara Member 2.0 0.0 X 0 0 0 Michael Stapleton Member 2.0 0.0 X 0 0 0 Ross Powell Member 2.0 0.0 X 0 0 0 James McSheffrey Member 2.0 0.0 X 0 0 0 Matthew Murphy Member 2.0 0.0 X 0 0 0 Mike Neubauer Member 2.0 0.0 X 0 0 0 Douglas menges Member (THRU 7/28/14) 0.0 X 0 0 0 James Runnels Member (THRU 10/8/14) 2.0 0.0 X 0 0 0 Matthew Scott Member (THRU 2/3/14) 2.0 0.0 X 0 0 0 Joseph Wehrle Chief Executive Officer 50.0 0.0 X 550432 0 17236 James Schweitzer Chief Operating Officer 50.0 5.0 X 268727 0 14182 Daniel Abbott Chief Information Officer 50.0 2.0 X 235938 0 58587 Robert Jachnicki Chief Financial Officer 50.0 2.0 X 227431 0 53521 Andrew Sosnowski Sec/Legal Counsel 50.0 2.0 X 185338 0 32788 Barbara Low Vice President Human Resources 40.0 0.0 X 167160 0 25883 Thomas Welsh Vice President/Training 38.0 20.0 X 135124 37209 46518 Roger Morris Vice President/Communications 40.0 0.0 X 174833 0 26201 Judy Fitzgerald Vice President/Govt. Affairs 40.0 0.0 X 175689 0 48973 Brian Smidt Vice President/Data Analytics 40.0 0.0 X 175880 0 52297 James Hertz Associate General Counsel 40.0 0.0 X 154046 0 30888 Robert Jones Director Field Operations 40.0 0.0 X 141049 0 9375 Frederick Lohmann Director Field Operations 40.0 0.0 X 131279 0 30129 Ralph Lumpkin Director Field Operations 40.0 0.0 X 136683 0 9371 Linda Schwartz Vice President Membership 40.0 0.0 X 164700 0 25508 3024309 37209 481457 29 false true false 0 0 0 NONDEDUCTIBLE MEMBERSHIP DUES 900099 45168108 45168108 VEHICLE FINANCE PROGRAM 525990 67000 67000 LICENSE PLATE READER PROGRAM 900099 619450 619450 USER FEES 900099 408486 408486 SPECIAL INVESTIGATIVE ACADEMY TUITION 611710 85625 85625 158494 158494 46507163 2251067 2251067 0 0 0 0 0 12526925 117318 11990368 117018 536557 300 536857 536857 0 0 0 RESTITUTION CONTRIBUTION 900099 319186 319186 319186 49614273 46507163 3107110 0 0 0 0 1484399 890639 593760 0 24368113 22196118 2171995 4951000 4455900 495100 1059170 932070 127100 1923739 1731365 192374 0 115920 96214 19706 78354 78354 84268 84268 0 60543 60543 549672 274836 274836 92967 84600 8367 4660251 4240828 419423 683381 621877 61504 0 1477325 1344366 132959 784408 713811 70597 0 508283 462538 45745 10975 10975 0 523892 476742 47150 666795 606783 60012 0 AUTO OPERATIONS 2084140 1896971 187169 REPORT AND SURV. SUPPORT 265339 241436 23903 . . 4341 4341 46437275 41282410 5154865 0 2036 1800 6117583 4623964 0 0 706075 1064019 0 0 0 0 0 0 0 0 2171064 1169959 7046658 5011998 1274366 2034660 33687425 36573705 0 0 0 0 0 0 120827 120352 44079376 45588459 2626925 3177970 0 0 141617 500158 0 0 0 0 0 0 0 0 0 0 15488270 21364193 18256812 25042321 X 25497930 20534316 324634 11822 0 0 25822564 20546138 44079376 45588459 X 3176998 -1644507 -6808917 X false true X true false false false false 45168108 84268 -29532 54736 84268 -29532 1631006 840710 790296 4005261 3066011 939250 1410391 1105277 305114 2034660 0 POST-RETIREMENT BENEFITS-NONCURRENT 17282000 DUE TO ISO 1587757 ACCRUED OTHER LIABILITIES 493930 OTHER LONG TERM LIABILITIES 1576644 CURRENT CAPITAL LEASE OBLIGATION 334362 DUE TO NICTA 89500 21364193 X 47969766 -1644507 -1644507 49614273 49614273 46437275 46437275 46437275 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 2011, 2012 2013 AND 2014 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 332499 0 211075 0 6858 0 15600 0 3000 0 569032 0 0 0 James Schweitzer Chief Operating Officer 203163 0 61500 0 4064 0 12546 0 3266 0 284539 0 0 0 Daniel Abbott Chief Information Officer 176583 0 54000 0 5355 0 35999 0 24029 0 295966 0 0 0 Robert Jachnicki Chief Financial Officer 173983 0 52500 0 948 0 30933 0 24001 0 282365 0 0 Andrew Sosnowski Sec/Legal Counsel 161853 0 20400 0 3085 0 10200 0 23935 0 219473 0 0 0 Barbara Low Vice President Human Resources 143351 0 21919 0 1890 0 8943 0 18136 0 194239 0 0 0 Thomas Welsh Vice President/Training 107109 37209 21887 0 6128 0 23930 0 23769 0 182823 37209 0 0 Roger Morris Vice President/Communications 148185 0 21000 0 5648 0 9261 0 18163 0 202257 0 0 0 Judy Fitzgerald Vice President/Govt. Affairs 144799 0 21917 0 8973 0 32033 0 17827 0 225549 0 0 0 James Hertz Associate General Counsel 133306 0 13562 0 7178 0 8300 0 23687 0 186033 0 0 0 Robert Jones Director Field Operations 123310 0 12609 0 5130 0 7739 0 2259 0 151047 0 0 0 Frederick Lohmann Director Field Operations 117920 0 12322 0 1037 0 7541 0 23590 0 162410 0 0 0 Linda Schwartz Vice President Membership 138566 0 19250 0 6884 0 8568 0 18074 0 191342 0 0 0 Brian Smidt Vice President/Data Analytics 151084 0 23020 0 1776 0 29709 0 23842 0 229431 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- Worked on Healthcare fraud prevention partnership to be transitioned into sustained coordinated operations. Coordinated issue development and assisted US DOJ in NMVTIS awareness efforts. Produced 40 news releases based on strategic tactical data analysis related to fraud. Produced 7 multimedia releases and produced 6 public awareness campaigns and 3 PSA announcements. Implemented firewalls and enhanced physical security with enhanced access controls at the HQ. Completed security assessment and implemented a new security to combat cyber attacks and advance malware. Disaster recovery documentation upgraded. 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 b 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 Governors 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 annually, 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. 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: $(6,496,105) Restitution Contribution $6,374 Net Asset Released from Restrictions: $(319,186) Total: $(6,808,917) National Insurance Crime Training Acad 1111 East Touhy Ave Ste 400 Des Plaines IL 60018 311768814 Public Safety IL 501(c )(3) 9 NA true National Crime Bureau Services 1111 East Touhy Ave Ste 400 Des Plaines IL 60018 201193507 Public Safety IL 501(c )(3) 9 NA true false false false true true false false false false false false false false true true false true false false National Insurance Crime Training Academy D 89500 FMV National Insurance Crime Training Academy E 58852 FMV National Insurance Crime Training Academy O 52147 FMV