2013-10-03T10:48:52-05:00 2012-12-31 010720052 MORRISON BROWN ARGIZ & FARRA LLP 1450 BRICKELL AVENUE 18TH FLOOR MIAMI FL 33131 990 2012-01-01 591829984 MIAMI BEACH COMMUNITY HEALTH CENTER INC MIAM 3055388835 11645 BISCAYNE BOULEVARD NO 207 NORTH MIAMI FL 33181 BRIAN MORTON 3055388835 2013-09-30 1 RICK COVERT P00124528 3053735500 2012 2016-02-24 21:20:13Z MARK RABINOWITZ 11645 BISCAYNE BOULEVARD NO 207 NORTH MIAMI FL 33181 40225002 0 X WWW.MIAMIBEACHEALTH.ORG X 1977 FL TO PROVIDE EITHER MEDICAL OR DENTAL SERVICES TO INDIVIDUALS IN THE MIAMI BEACH, MIAMI AND NORTH MIAMI COMMUNITIES. 15 15 316 0 0 0 14123693 14612179 21834590 24918894 1 492316 11091 103533 35969375 40126922 0 0 0 0 15688478 17214104 0 0 0 21304299 23594379 36992777 40808483 -1023402 -681561 7242592 7485007 6224956 7148932 1017636 336075 X SEE SCHEDULE O 0 0 24374189 10339737 PRIMARY HEALTH CARE AND ANCILLARY MEDICAL SERVICES FOR AMBULATORY PATIENTS RESIDING IN SPECIFIED AREAS IN MIAMI-DADE COUNTY FLORIDA. THE ORGANIZATION HAD 89,317 ENCOUNTERS IN ITS COMMUNITY HEALTH CENTER PROGRAM. 7759092 11012667 PHARMACY 2203035 3566490 MEDICAL EDUCATION INTERNSHIP PROGRAM FOR OVERSEAS MEDICAL STUDENTS. 34336316 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 1 1 0 0 0 0 1 0 0 0 1 48 0 1 316 1 0 0 0 0 0 1 0 0 0 0 0 X 15 15 0 1 0 1 0 0 0 1 1 1 0 1 1 1 1 1 1 0 0 1 1 FL X BRIAN MORTON 3055388835 11645 BISCAYNE BOULEVARD SUITE 207 NORTH MIAMI FL 33181 VICTORIA EMILY ARROYO 2.00 X 0 0 0 RAFAEL CABRERA 2.00 X 0 0 0 MELVIN P DEUTSCH 2.00 X X 0 0 0 WILLIAM ELIAS 2.00 X X 0 0 0 JANE DEE GROSS 5.00 X X 0 0 0 MYRIAN NOTKIN 2.00 X X 0 0 0 DAVID CHAMBERLAIN 2.00 X 0 0 0 ROBERT ROSEN MD 2.00 X 0 0 0 YVONNE SAINT GERARD 2.00 X 0 0 0 DAVID M GERSTEN 2.00 X 0 0 0 THERESE GIBB 2.00 X 0 0 0 MONA GREEN 2.00 X 0 0 0 JULIO LORA 2.00 X 0 0 0 DENISE NOVACK 2.00 X 0 0 0 MITCHELL RUBINSON 2.00 X 0 0 0 STANLEY DEHART 40.00 X 137980 0 11862 MARK RABINOWITZ 40.00 X 396162 0 28614 KATHRYN ABBATE 40.00 X 551056 0 9442 RAIED SAWAGED 40.00 X 155000 0 12172 SORANGELY MENIJVAR 40.00 X 153564 0 16062 ORLANDO TAQUECHEL 40.00 X 195385 0 14022 ALLEN SILANEE 40.00 X 240507 0 16870 JORGE RANGEL 40.00 X 244373 0 17776 RAMON MARTINEZ 40.00 X 200000 0 26502 LAURENCE PETER 40.00 X 218306 0 13260 JEFFREY SIMMONS 40.00 X 223076 0 4807 2715409 0 171389 22 0 1 0 GENESIS MEDICUS LLC 1880 NW 97TH AVENUE PLANTATION FL 33322 MEDICAL EDUCATION 1080761 HEALTH CHOICE NETWORK 9064 NW 13TH TERRACE DORAL FL 33172 IT 781686 BY HIS GRACE CONSTRUCTION 17661 NW 82ND COURT HIALEAH FL 33015 MAINTENANCE 748625 VANESSA I SILEBI 3661 S MIAMI AVE SUITE 108 MIAMI FL 33133 MEDICAL PROVIDER 178470 JH COHN LLP 1212 AVENUE OF THE AMERICAS NEW YORK NY 10036 ACCOUNTING 168854 8 11332033 3280146 942907 14612179 PHARMACY 446110 11012667 11012667 MEDICAID 621400 5860575 5860575 MEDICAL EDUCATION 621400 3566490 3566490 SELF-PAY PATIENTS 621400 2611536 2611536 PATIENT SVCS OTHER 621400 1285551 1285551 582075 582075 24918894 1221 1221 589175 98080 491095 491095 491095 INSURANCE PROCEEDS & OTHER 900099 103533 103533 103533 40126922 24918894 0 595849 X 1318090 1120686 197404 13697208 11642318 2054890 242189 205861 36328 968984 384070 584914 987633 839488 148145 250749 250749 90000 90000 8860668 8750181 110487 337384 220374 117010 251853 214075 37778 1504076 1236694 267382 96679 53173 43506 126527 77322 49205 536196 423595 112601 237466 142480 94986 PHARMACY AND SUPPLIES 8228314 8008745 219569 UNAUTHORIZED EXPENSES 1002606 1002606 GRANT ASSESSMENT 580166 580166 REPAIRS AND MAINTENANCE 466313 368387 97926 1025382 648867 376515 40808483 34336316 6472167 0 624768 942740 1659884 1715222 1205816 1340209 277671 404995 129015 180452 7973713 5357674 2886451 2616039 245200 147120 213787 138230 7242592 7485007 3878956 5040441 580166 328683 114800 1875317 1356525 142000 57000 6224956 7148932 X 1017636 336075 1017636 336075 7242592 7485007 -681561 0 X X 0 1 X 1 1 1 X 9432335 10030013 10134651 14123693 14612179 58332871 9432335 10030013 10134651 14123693 14612179 58332871 58332871 7020 766 150002 1 1221 159010 80373 135179 70768 11091 103533 400944 58892825 78026231 0.99050 0.98960 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 305186 305186 1211700 465975 745725 3132487 1955918 1176569 3324340 2935781 388559 2616039 DEFERRED LEASE LIABILITY 57000 57000 X 40801922 675000 675000 40126922 0 40126922 41483483 675000 675000 40808483 0 40808483 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE CENTER QUALIFIES AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN RECORDED. THE CENTER RECOGNIZES AND MEASURES TAX POSITIONS BASED ON THEIR TECHNICAL MERIT AND ASSESSES THE LIKELIHOOD THAT THE POSITIONS WILL BE SUSTAINED UPON EXAMINATION BASED ON THE FACTS, CIRCUMSTANCES AND INFORMATION AVAILABLE AT THE END OF EACH PERIOD. INTEREST AND PENALTIES ON TAX LIABILITIES, IF ANY, WOULD BE RECORDED IN INTEREST EXPENSE AND OTHER NON-INTEREST EXPENSE, RESPECTIVELY. THE U.S. FEDERAL JURISDICTION IS THE MAJOR TAX JURISDICTION WHERE THE CENTER FILES INFORMATIONAL TAX RETURNS. THE CENTER IS GENERALLY NO LONGER SUBJECT TO U.S. FEDERAL EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2009. X 0 0 0 0 0 0 0 0 0 MARK RABINOWITZ 396162 0 0 0 0 0 15165 0 13449 0 424776 0 0 0 KATHRYN ABBATE 280000 0 0 0 271056 0 5169 0 4273 0 560498 0 0 0 RAIED SAWAGED 155000 0 0 0 0 0 6200 0 5972 0 167172 0 0 0 SORANGELY MENIJVAR 153564 0 0 0 0 0 5800 0 10262 0 169626 0 0 0 ORLANDO TAQUECHEL 195385 0 0 0 0 0 6927 0 7095 0 209407 0 0 0 ALLEN SILANEE 240507 0 0 0 0 0 9600 0 7270 0 257377 0 0 0 JORGE RANGEL 244373 0 0 0 0 0 9775 0 8001 0 262149 0 0 0 RAMON MARTINEZ 200000 0 0 0 0 0 6231 0 20271 0 226502 0 0 0 LAURENCE PETER 218306 0 0 0 0 0 4615 0 8645 0 231566 0 0 0 JEFFREY SIMMONS 223076 0 0 0 0 0 3351 0 1456 0 227883 0 0 0 SUPPLEMENTAL INFORMATION PART III IN 2012, THE FORMER CEO'S APPROVED SALARY WAS $280,000. IN 2012, MANAGEMENT BECAME AWARE THAT THE FORMER CEO TOOK COMPENSATION IN EXCESS OF HER APPROVED SALARY IN THE FORM OF "VACATION PAY-OUTS". THESE AMOUNTS APPEAR IN THE FUNCTIONAL EXPENSE LINE ITEM "UNAUTHORIZED EXPENDITURES". THE FORMER CEO ALLEGEDLY EMBEZZLLED APPROXIMATELY $1,000,000 IN ADDITION TO THE COMPENSATION IN EXCESS OF HER APPROVED SALARY. THESE TRANSACTIONS WERE BELIEVED TO HAVE OCCURED BETWEEN 2007 AND 2012 AND THE TOTAL UNAUTHORIZED COMPENSATION AND EMBEZZLEMENT IS BELIEVED TO HAVE BEEN $7,077,052. OF THIS AMOUNT, APPROXIMATELY $3,925,000 RELATES TO THE PERIOD FROM 2007-2010, APPROXIMATELY $2,182,000 RELATES TO 2011 AND APPROXIMATELY $970,000 RELATES TO 2012. COMPENSATION RELATED TO CERTAIN OTHER INDIVIDUALS WAS APPROVED BY THE FORMER CEO IN EXCESS OF THEIR APPROVED SALARIES IN THE FORM OF BONUSES AND VACATION PAY-OUTS INCLUDING THE FORMER CFO. KATHRYN ABBATE FORMER CEO UNAPPROVED EXCESS COMPENSATION 0 JACINTO AYALA JACINTO AYALA OWNS A COMPANY THAT PROVIDES SERVICES TO THE ORGANIZATION 1968700 JACINTO AYALA HAS A 100% OWNERSHIP INTEREST IN THREE COMPANIES THAT ADMINISTER THE CENTER'S MEDICAL EDUCATION PROGRAM INCLUDING MANAGING AND OPERATING TEACHING FACULTY NETWORKS FOR THE CENTER. FOR THE YEAR ENDED DECEMBER 31, 2012, TOTAL PAYMENTS TO THESE TWO COMPANIES WERE $1,968,700. THESE EXPENSES ARE INCLUDED UNDER THE CAPTION PROFESSIONAL SERVICES OTHER IN THE STATEMENT OF FUNCTIONAL EXPENSES. THERE WERE NO AMOUNTS OUTSTANDING TO THESE TWO COMPANIES AS OF DECEMBER 31, 2012. THE EMPLOYEE RESIGNED IN 2012. 0 PART I, LINE 1 UNAPPROVED EXCESS COMPENSATION IN 2012, CURRENT MANAGEMENT OF THE CENTER BECAME AWARE OF ALLEGED EMBEZZLEMENT OF FUNDS BY THE FORMER CEO INCLUDING UNAUTHORIZED COMPENSATION TO THE CEO. THIS ALLEGED EMBEZZLEMENT AND UNAUTHORIZED COMPENSATION IS BELIEVED TO HAVE OCCURRED FROM 2007 THROUGH 2012. A PRELIMINARY FORENSIC AUDIT REPORT, COVERING THE PERIOD JANUARY 1, 2007 THROUGH JUNE 2012, REFLECTS A LOSS OF $7,077,052. OF THIS AMOUNT, APPROXIMATELY $3,925,000 RELATES TO THE PERIOD FROM 2007-2010, APPROXIMATELY $2,182,000 RELATES TO 2011 AND APPROXIMATELY $970,000 RELATES TO 2012. THE FORENSIC AUDIT ONLY COVERED THE TIME PERIOD DESCRIBED ABOVE AND DOES NOT GO BACK TO PREVIOUS PERIODS. WHETHER THIS ALLEGED EMBEZZLEMENT BEGAN PRIOR TO 2007 HAS NOT BEEN DETERMINED. MANAGEMENT HAS NOTIFIED VARIOUS GRANTING AND REGULATORY AGENCIES OF THE ALLEGED EMBEZZLEMENT AND THERE ARE ONGOING INVESTIGATIONS BY FEDERAL, STATE AND LOCAL AUTHORITIES CONCERNING THIS MATTER. MANAGEMENT HAS CONSULTED LEGAL COUNSEL AS TO WHETHER THESE UNAUTHORIZED EXPENDITURES COULD JEOPARDIZE THE CENTER'S TAX STATUS AND WHETHER THERE COULD BE ANY EXCISE TAX ISSUES RELATED TO THE MATTER. MANAGEMENT BELIEVES, AND HAS BEEN ADVISED BY ITS LEGAL COUNSEL, THAT ANY POTENTIAL TAX LIABILITY RESULTING FROM EXCESSIVE COMPENSATION OF THE FORMER CEO RESTS WITH THE FORMER CEO, AND NOT THE CENTER. MANAGEMENT DOES NOT BELIEVE THAT THE CENTER'S 501(C)(3) STATUS IS IN JEOPARDY RELATED TO THE ALLEGED EMBEZZLEMENT, AND HAS BEEN ADVISED BY ITS COUNSEL TO THIS EFFECT. BASED ON THE FACTS AND CIRCUMSTANCES KNOWN AT THE DATE OF THESE FINANCIAL STATEMENTS, NO AMOUNTS HAVE BEEN ACCRUED RELATED TO ANY POTENTIAL EXCISE TAX LIABILITY STEMMING FROM THE ALLEGED EMBEZZLEMENT. X 1 942907 FMV 0 0 1 THIRD PARTY USE: PART I, LINE 32B: THE ORGANIZATION USED A THIRD PARTY TO MANAGE ITS THRIFT SHOP DURING THE YEAR AND THIS RELATIONSHIP WAS TERMINATED DURING 2012. ORGANIZATION MISSION STATEMENT FORM 990, PART III, LINE 1 PHILOSOPHY: IT IS THE POLICY OF THE BOARD AND STAFF OF THE MIAMI BEACH COMMUNITY HEALTH CENTER, INC., THAT RESIDENTS OF THE MIAMI BEACH AREA AND ALL OF MIAMI-DADE COUNTY NEED AND DESERVE ADEQUATE HEALTH CARE. THE BOARD AND STAFF ALSO BELIEVE THAT EACH INDIVIDUAL IS A WORTHY HUMAN BEING; HAS A UNIQUE SET OF VALUES, PERCEPTIONS AND NEEDS; FUNCTIONS AS A SYSTEM WITHIN A LARGER SYSTEM; AND IS ENTITLED TO THE RIGHT TO DETERMINE, WITH GUIDANCE AND SUPPORT FROM THE PROFESSIONALS, HIS OR HER OWN GOALS AND METHODS FOR ACHIEVING THEM. IN AN EFFORT TO MEET THE PHYSICAL AND PSYCHOSOCIAL NEEEDS OF OUR CLIENTS THROUGH MUTUAL GOAL SETTING, THE MIAMI BEACH COMMUNITY HEALTH CENTER HAS BEEN ESTABLISHED. MISSION STATEMENT: TO PROVIDE QUALITY, AFFORDABLE HEALTH CARE AND SUPPORT SERVICES TO THE MIAMI BEACH COMMUNITY AND ALL OF MIAMI-DADE COUNTY. VISION STATEMENT: EVERYONE IN MIAMI-DADE COUNTY HAS ACCESS TO AFFORDABLE HEALTH CARE. VALUE STATEMENT: WE BELIEVE THAT THE COMMUNITY OF MIAMI BEACH AND ALL OF MIAMI-DADE COUNTY HAVE THE RIGHT TO ACCESSIBLE HIGH-QUALITY HEALTH CARE REGARDLESS OF GENDER, RACE, COLOR, RELIGION, ETHNIC OR NATIONAL ORIGIN, POLITICAL BELIEFS, MARITAL STATUS, AGE, SEXUAL ORIENTATION, SOCIAL, FINANCIAL AND FAMILY BACKGROUND, LINGUISTIC PREFERENCE OR DISABILITY. FORM 990, PART VI, SECTION A, LINE 3 A MANAGEMENT COMPANY OWNED BY AN EMPLOYEE MANAGED THE MEDICAL EDUCATION PROGRAM FOR THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 5 IN 2012, CURRENT MANAGEMENT OF THE ORGANIZATION BECAME AWARE OF ALLEGED EMBEZZLEMENT OF FUNDS BY THE FORMER CEO INCLUDING UNAUTHORIZED COMPENSATION TO THE CEO. THIS ALLEGED EMBEZZLEMENT AND UNAUTHORIZED COMPENSATION IS BELIEVED TO HAVE OCCURRED FROM 2007 THROUGH 2012. A PRELIMINARY FORENSIC AUDIT REPORT, COVERING THE PERIOD JANUARY 1, 2007 THROUGH JUNE 2012, REFLECTS A LOSS OF $7,077,052. OF THIS AMOUNT, APPROXIMATELY $3,925,000 RELATES TO THE PERIOD FROM 2007-2010, APPROXIMATELY $2,182,000 RELATES TO 2011 AND APPROXIMATELY $970,000 RELATES TO 2012. MANAGEMENT HAS NOTIFIED VARIOUS GRANTING AND REGULATORY AGENCIES OF THE ALLEGED EMBEZZLEMENT AND THERE ARE ONGOING INVESTIGATIONS BY FEDERAL, STATE AND LOCAL AUTHORITIES CONCERNING THIS MATTER. AS OF THE DATE OF THIS RETURN, MANAGEMENT HAS NOT BEEN PROVIDED ANY INFORMATION CONCERNING THE RESULTS OF THESE ONGOING INVESTIGATIONS. FORM 990, PART VI, SECTION B, LINE 11 THIS 2012 FORM 990 WAS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS PRIOR TO FILING. IN YEARS PRIOR TO 2011, THE FORMER CEO FALSELY ASSERTED THE FILINGS WERE REVIEWED BY THE BOARD OF DIRECTORS WHEN IN FACT THEY WERE NEITHER APPROVED NOR REVIEWED BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION'S BOARD OF DIRECTORS REVIEWS THE CONFLICT OF INTEREST POLICY ANNUALLY. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION MAKES ITS FORM 990 AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. OTHER FEES FORM 990, PART IX, LINE 11G MEDICAL PROVIDERS & CONSULTANTS: PROGRAM SERVICE EXPENSES 8,750,181. MANAGEMENT AND GENERAL EXPENSES 110,487. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 8,860,668. FINANCIAL STATEMENTS AND REPORTING FORM 990, PART XII, LINE 2C THE BOARD OF DIRECTORS IS RESPONSIBLE FOR THE OVERSIGHT OF THE ANNUAL AUDIT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. RELATED PARTY TRANSACTIONS FORM 990, SCHEDULE R THE FOLLOWING TRANSACTIONS ARE RELATED PARTY TRANSACTIONS IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING STANDARDS, BUT DO NOT RISE TO THE LEVEL OF A "RELATED PARTY" TRANSACTION FOR INCLUSION IN SCHEDULES "R", BUT HAVE BEEN INCLUDED IN THE AUDITED FINANCIAL STATEMENTS OF THE ORGANIZATION: (1) A FORMER EMPLOYEE OF THE CENTER HAS A FINANCIAL INTEREST IN A COMPANY THAT PERFORMS CONSTRUCTION AND MAINTENANCE SERVICES FOR THE CENTER. TOTAL PAYMENTS TO THIS COMPANY WERE $748,625 DURING 2012. THERE IS AN AGREEMENT BETWEEN THE COMPANY AND THE CENTER FOR MONTHLY MAINTENANCE SERVICES OF APPROXIMATELY $63,000 FOR TWELVE MONTHS EFFECTIVE JULY 1, 2012. THE EMPLOYEE WAS TERMINATED IN 2012. THE CENTER BELIEVES THE TERMS OF AGREEMENT ARE COMPARABLE TO OTHER THIRD PARTY SERVICE PROVIDERS. (2) FROM 2006 THROUGH 2013, THE FORMER CEO AND THE CURRENT SENIOR EXECUTIVE VICE PRESIDENT OF MEDICAL AFFAIRS AND INTERIM CEO OF THE CENTER EACH HELD A FINANCIAL INTEREST IN A COMPANY THAT PROVIDES A WEB-BASED MONITORING SERVICE OVER CENTER PHYSICIANS' CODING OF MEDICAL SERVICES AND MEASURES AND DOCUMENTS THE STANDARD OF CARE PROVIDED BY CENTER PHYSICIANS. THE CENTER UNDERSTANDS THAT THE FORMER CEO RETAINS HER INTEREST IN THE COMPANY. IN 2013, THE CURRENT INTERIM CEO GIFTED HIS INTEREST IN THE COMPANY TO THE COMPANY'S PRESIDENT, WHO IS THE COMPANY'S SOLE EMPLOYEE. THE CENTER PAYS THE COMPANY A FEE OF $300 PER MONTH, WHICH THE CENTER UNDERSTANDS IS PAID BY THE COMPANY TO ITS PRESIDENT, AND THE CENTER FURTHER UNDERSTANDS THAT NEITHER THE FORMER CEO NOR THE CURRENT INTERIM CEO HAS BEEN COMPENSATED BY THE COMPANY. THERE WERE NO AMOUNTS OUTSTANDING TO THE COMPANY AS OF DECEMBER 31, 2012. 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