2012-11-30T13:39:25-06:00 2011-12-31 010720052 MORRISON BROWN ARGIZ & FARRA LLP 1001 BRICKELL BAY DRIVE 9TH FLOOR MIAMI FL 33131 990 2011-01-01 591829984 MIAMI BEACH COMMUNITY HEALTH CENTER INC MIAM 3055388835 11645 BISCAYNE BOULEVARD NO 207 NORTH MIAMI FL 33181 MARK RABINOWITZ 3055388835 2012-11-29 1 RICK COVERT P00124528 3053735500 2011 2016-02-24 21:20:13Z MARK RABINOWITZ 11645 BISCAYNE BOULEVARD NO 207 NORTH MIAMI FL 33181 35969375 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. 12 12 294 0 0 0 10134651 14123693 11981740 21834590 2 1 220768 11091 22337161 35969375 0 0 0 0 12843529 15688478 0 0 0 9404165 21304299 22247694 36992777 89467 -1023402 5267126 7242592 3226088 6224956 2041038 1017636 X SEE SCHEDULE O 0 0 22531706 9102750 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. 1774819 2409082 MEDICAL EDUCATION INTERNSHIP PROGRAM FOR OVERSEAS MEDICAL STUDENTS. 6486917 10333849 PHARMACY 30793442 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 1 1 0 0 0 1 1 0 0 0 0 1 0 0 0 0 1 72 0 1 294 1 0 0 0 0 0 1 0 0 0 0 0 X 12 12 1 1 0 1 0 0 0 1 1 1 0 1 1 0 0 1 1 0 0 1 1 FL X MARK RABINOWITZ 3055388835 11645 BISCAYNE BOULEVARD SUITE 207 NORTH MIAMI FL 33181 OLIVIA ALMAGRO 0.50 X 0 0 0 RAFAEL CABRERA 0.50 X 0 0 0 MELVIN P DEUTSCH 0.50 X X 0 0 0 WILLIAM ELIAS 0.50 X 0 0 0 JANE DEE GROSS 0.50 X X 0 0 0 ARNOLD NOTKIN 0.50 X 0 0 0 MYRIAN NOTKIN 0.50 X X 0 0 0 PAULA O'NEIL 0.50 X 0 0 0 ROBERT ROSEN MD 0.50 X 0 0 0 YVONNE SAINT GERARD 0.50 X 0 0 0 DANIEL VEITIA 0.50 X 0 0 0 ANTONIO HWONG MD 0.50 X X 0 0 0 KATHRYN ABBATEE 40.00 X X 1349492 0 13473 MARK RABINOWITZ 40.00 X X 372500 0 40129 STANLEY DEHART 40.00 X X 260467 0 58231 JACINTO AYALA 40.00 X 98518 0 4572 ORLANDO TAQUECHEL 40.00 X 170769 0 25249 RAIED SAWAGED 40.00 X 151154 0 11018 ALLEN SILANEE 40.00 X 239077 0 14135 JANET GONZALEZ-SALAS 40.00 X 152649 0 42791 JORGE RANGEL 40.00 X 222019 0 9751 RAMON MARTINEZ 40.00 X 190769 0 10664 LAURENCE PETER 40.00 X 190525 0 300 3397939 0 230313 26 0 1 0 BY HIS GRACE CONSTRUCTION 10840 NW 138TH STREET HIALEAH GARDENS FL 33018 MAINTENANCE 964403 VANESSA I SILEBI 3661 S MIAMI AVE SUITE 108 MIAMI FL 33133 MEDICAL PROVIDER 339492 HEALTH CHOICE NETWORK 9064 NW 13TH TERRACE MIAMI FL 33172 IT 293484 MEDICAL OPERATIONS MANAGEMENT SERVICES 1880 NW 97TH AVENUE PLANTATION FL 33322 MEDICAL EDUCATION 231802 JH COHN LLP 1212 AVENUE OF THE AMERICAS NEW YORK NY 10036 ACCOUNTING 103688 8 12419417 1704276 804068 14123693 PHARMACY 446110 10333849 10333849 MEDICAID 621400 4000949 4000949 SELF-PAY PATIENTS 621400 3091500 3091500 MEDICAL EDUCATION 621400 2409082 2409082 PATIENT SVCS OTHER 621400 1069698 1069698 929512 929512 21834590 1 1 900099 11091 11091 11091 35969375 21845681 0 1 1333408 1072941 260467 12177985 10502053 1675932 203648 162918 40730 1140091 890302 249789 833346 666677 166669 171177 171177 100000 100000 6516322 6437474 78848 204124 122474 81650 753885 753885 795498 621693 173805 247752 74372 173380 79897 79897 58706 46378 12328 755280 596671 158609 115270 69162 46108 PHARMACY & SUPPLIES 6115138 5999274 115864 UNAUTHORIZED EXPENDITUR 2182344 2182344 BAD DEBT EXPENSE 1145527 1020727 124800 1103709 789344 314365 959670 887200 72470 36992777 30793442 6199335 0 283566 624768 542152 1659884 972231 1205816 167065 277671 119526 129015 7707474 4821023 2790192 2886451 245200 245200 147194 213787 5267126 7242592 2390688 3878956 328683 835400 1875317 0 142000 3226088 6224956 X 2041038 1017636 2041038 1017636 5267126 7242592 -1023402 0 X 0 1 0 X 1 1 X 7485750 9432335 10030013 10134651 14123693 51206442 7485750 9432335 10030013 10134651 14123693 51206442 51206442 37601 7020 766 150002 1 195390 44420 80373 135179 70768 11091 341831 51743663 63531586 0.98960 0.98610 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 305186 305186 1211700 430128 781572 3090645 1723242 1367403 3099943 2667653 432290 2886451 DEFERRED LEASE LIABILITY 142000 142000 35969375 36992777 -1023402 -1023402 36644375 675000 675000 35969375 0 35969375 37667777 675000 675000 36992777 0 36992777 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: 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 2008. X 0 0 0 0 0 0 0 0 0 KATHRYN ABBATEE 280000 0 0 0 1069492 0 8901 0 4572 0 1362965 0 0 0 MARK RABINOWITZ 372500 0 0 0 0 0 14247 0 25882 0 412629 0 0 0 STANLEY DEHART 193240 0 67227 0 0 0 6896 0 51335 0 318698 0 0 0 ORLANDO TAQUECHEL 170769 0 0 0 0 0 6692 0 18557 0 196018 0 0 0 RAIED SAWAGED 151154 0 0 0 0 0 6061 0 4957 0 162172 0 0 0 ALLEN SILANEE 239077 0 0 0 0 0 9563 0 4572 0 253212 0 0 0 JANET GONZALEZ-SALAS 101861 0 50788 0 0 0 4371 0 38420 0 195440 0 0 0 JORGE RANGEL 220659 0 1360 0 0 0 8862 0 889 0 231770 0 0 0 RAMON MARTINEZ 190769 0 0 0 0 0 6092 0 4572 0 201433 0 0 0 LAURENCE PETER 190525 0 0 0 0 0 0 0 300 0 190825 0 0 0 SUPPLEMENTAL INFORMATION PART III IN 2011, 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". IN ADDITION TO EXCESS REPORTABLE COMPENSATION, THE FORMER CEO ALLEGEDLY EMBEZZLLED APPROXIMATELY $1,000,000 IN ADDITIONAL. 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 PAY IN THE FORM OF BONUSES AND VACATION PAY-OUTS INCLUDING THE FORMER CFO AND VP OF FINANCE. KATHRYN ABBATE UNAPPROVED EXCESS COMPENSATION 0 STANLEY DEHART PERSONAL USE X 4000 0 1 0 0 JACINTO AYALA JACINTO AYALA OWNS A COMPANY THAT PROVIDES SERVICES TO THE ORGANIZATION 1472868 JACINTO AYALA HAS A 100% OWNERSHIP INTEREST IN THREE COMPANIES THAT ADMINISTER THE CENTERS MEDICAL EDUCATION PROGRAM INCLUDING MANAGING AND OPERATING TEACHING FACULTY NETWORKS FOR THE CENTER. FOR THE YEAR ENDED DECEMBER 31, 2011, TOTAL PAYMENTS TO THESE TWO COMPANIES WERE $1,472,868. 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, 2011. 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 CENTERS 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 804068 FMV 0 0 1 THIRD PARTY USE: PART I, LINE 32B: THE ORGANIZATION USES A THIRD PARTY TO MANAGE ITS THRIFT SHOP. 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 2 TWO BOARD MEMBERS, MYRIAM NOTKIN AND ARNOLD NOTKIN, HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 3 A MANAGEMENT COMPANY OWNED BY AN EMPLOYEE MANAGES 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 2011 FORM 990 WAS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS PRIOR TO FILING. IN PRIOR YEARS, 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 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. 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" RANSACTION 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 $937,409 DURING 2011. 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) THE FORMER CEO AND SENIOR EXECUTIVE VICE PRESIDENT OF MEDICAL AFFAIRS OF THE CENTER HOLD A FINANCIAL INTEREST IN A COMPANY WHICH PROVIDES A MONITORING SERVICE OVER PHYSICIANS CODING OF MEDICAL SERVICES AND MEASURES AND DOCUMENTS THE STANDARD OF CARE PROVIDED BY THE CENTER'S PHYSICIANS. THE CENTER PAYS THE COMPANY A FEE OF $300 PER MONTH. THERE WERE NO AMOUNTS OUTSTANDING AS OF DECEMBER 31, 2011. THERE IS NO BALANCE DUE TO THIS COMPANY AS DECEMBER 31, 2011. THE FORMER CEO AND SENIOR EXECUTIVE VICE PRESIDENT OF MEDICAL AFFAIRS ARE NOT COMPENSATED THROUGH THIS ARRANGEMENT. THE MONTHLY FEES ARE PAID TO THE WEBSITE PROGRAMMER TO MONITOR THE SERVICE. 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