2021-06-03T10:26:32-05:00 2020-12-31 366055558 GRANT THORNTON LLP 171 N CLARK ST SUITE 200 CHICAGO IL 60601 990 2020-01-01 363776789 NATIONAL INSURANCE CRIME BUREAU NATI 8475447000 1111 E TOUHY AVE STE 400 DES PLAINES IL 60018 TIMOTHY R SLATER COO/CFO/TREASURER 8475447000 2021-06-03 1 TIMOTHY SLATER 999009999 BRIDGET T ROCHE P00666837 3128560200 3 AAL1 IAL1 2020 2022-09-23 18:48:47Z NICB TIMOTHY R SLATER 1111 E TOUHY AVE STE 400 DES PLAINES IL 60018 92062178 0 X WWW.NICB.ORG X 1991 IL TO LEAD A UNITED EFFORT OF INSURERS, LAW ENFORCEMENT AND REPRESENTATIVES (CONTINUED IN SCH O) OF THE PUBLIC TO PREVENT AND COMBAT INSURANCE FRAUD AND CRIME. 15 15 419 0 0 0 0 0 65455797 68685445 1666636 7321679 9851 7291 67132284 76014415 0 0 0 0 41665080 42178018 0 0 0 22499026 23541742 64164106 65719760 2968178 10294655 62189559 69069184 30257864 30803331 31931695 38265853 X TO LEAD A UNITED EFFORT OF INSURERS, LAW ENFORCEMENT, AND REPRESENTATIVES OF THE PUBLIC TO PREVENT AND COMBAT INSURANCE FRAUD AND CRIME THROUGH INTELLIGENCE AND ANALYTICS, INVESTIGATIONS, LEARNING AND DEVELOPMENT, LEGISLATIVE ADVOCACY AND COMMUNICATIONS. 0 0 34159584 39427544 INVESTIGATIONS - NICB'S INVESTIGATIVE EFFORTS PRODUCED 2,556 PROSECUTIVE ADMINISTRATIVE ACTIONS (PAA) RELATED TO MEDICAL FRAUD, 3,450 IN THE COMMERCIAL FRAUD SEGMENT, AND 3,839 IN THE ORGANIZED VEHICLE CRIME SEGMENT. 12463425 12346045 GEOSPATIAL IMAGERY - PROVIDED INSURANCE INDUSTRY AND FIRST RESPONDERS WITH GEOSPATIAL SUPPORT AND ANALYTICS IN DISASTER SITUATIONS. IN 2020, GIC COLLECTED IMAGERY OF THE BABB FIRE DESTRUCTION THAT IMPACTED 15,000 ACRES IN WA. PROVIDED IMAGERY OF MID-APRIL TORNADO DAMAGE TO EMERGENCY PERSONNEL AND LAW ENFORCMENT IN PORTIONS OF TENNESSEE, LOUISIANA, AND SOUTH CAROLOINA. COLLECTED IMAGERY OF THE GULF COAST DAMAGE FROM HURRICANE SALLY IN ADDITION TO POST-DISASTER IMAGERY FOLLOWING HURRICANE ISAIAS IN NORTH CAROLINA. 7926798 9149238 INTELLIGENCE AND ANALYTICS - PUBLISHED 811 MEDAWARE ALERTS, DISSEMINATED 653 SUSPECT VEHICLE LEADS FOR INVESTIGATION AND POTENTIAL RECOVERY. DEVELOPED CATASTROPHE CLAIMS MODEL AND TWO FRAUD MODELS BASED ON GIC IMAGERY. 6725445 7762618 LEARNING AND DEVELOPMENT - CONDUCTED 545 HOURS OF INSTRUCTION TO MEMBER COMPANIES, 391 HOURS TO LAW ENFORCEMENT PERSONNEL. RECORDED 155,608 VIEWS ON LEARNING ASSETS WHICH INCLUDES ELEARNING COURSES, VIRTUAL TRAINING AND VIDEO LIBRARY. RECEIVED 303 TRAINING ENGAGEMENT REQUESTS.EXPENSES = $3,492,518GRANTS = $ 0REVENUE = $4,031,121COMMUNICATIONS AND LEGISLATIVE ADVOCACY - NICB LED LEGISLATIVE/REGULATORY EFFORTS IN CONJUNCTION WITH MEMBERS, TRADE GROUPS AND ANTI-FRAUD GROUPS CALIFORNIA, HAWAII, OKLAHOMA, VIRGINIA AND WISCONSIN ON VARIOUS VEHICLE FRAUD ISSUES. DEVELOPED 6 PSA'S RELATING TO CONTRACTOR FRAUD AND POST-WILDFIRE REBUILDING, 2 OF WHICH WERE DISTRIBUTED NATIONALLY. PRODUCED 3 MULTIMEDIA RELEASES ON INSURANCE FRAUD.EXPENSES = $3,232,927GRANTS = $ 0REVENUE = $3,731,497 6725445 7762618 61275252 0 0 0 1 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 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 25 0 1 419 1 0 0 0 0 0 0 0 0 X 15 15 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 OK X TIMOTHY R SLATER 8475447000 1111 E TOUHY AVE STE 400 DES PLAINES IL 60018 ANDREW SOSNOWSKI GENERAL COUNSEL/SECRETARY 50.00 5.00 X 751078 2354 42037 JOSEPH WEHRLE CHIEF EXECUTIVE OFFICER 50.00 0.00 X 600683 0 14222 DAVID GLAWE CHIEF EXECUTIVE OFFICER 50.00 0.00 X 435194 0 19864 ROBERT JACHNICKI CFO/TREASURER 50.00 2.10 X 311526 2354 67735 DANIEL ABBOTT VICE PRESIDENT/MEMBER SERVICES 40.00 0.00 X 288774 0 78819 BARBARA LOW VICE PRESIDENT/HUMAN RESOURCES 40.00 0.00 X 235276 0 41298 KAREN GRACZYK VICE PRESIDENT/ITD 40.00 0.00 X 198748 0 71906 JAMES SCHWEITZER CHIEF OPERATING OFFICER 50.00 0.00 X 259110 0 9779 GEORGE WORSHAM DIRECTOR FIELD OPERATIONS 40.00 0.00 X 193201 0 67157 ALAN HASKINS VICE PRESIDENT/GOVT. AFFAIRS 40.00 0.00 X 191774 0 44831 BROOKE KELLEY VICE PRESIDENT/COMMUNICATIONS 40.00 0.00 X 191651 0 22680 MICHAEL SINNO VICE PRESIDENT/L&D 18.00 40.00 X 63309 111395 38775 ROBERT COOPER VICE PRESIDENT/ASSOC GEN COUN 40.00 2.00 X 154074 1529 51379 FREDERICK LOHMANN DIRECTOR FIELD OPERATIONS 40.00 0.00 X 158622 0 39019 ROBERT JONES DIRECTOR FIELD OPERATIONS 40.00 0.00 X 174845 0 11775 DANA MACDONALD DIRECTOR FIELD OPERATIONS 40.00 0.00 X 169381 0 10224 THOMAS P MARTIN GENERAL COUNSEL/SECRETARY 50.00 5.00 X 164762 3501 6006 BRIAN SMIDT VICE PRESIDENT/DATA ANALYTICS 40.00 0.00 X 153248 0 13141 KEVIN GALLAGHER DIRECTOR FIELD OPERATIONS 40.00 0.00 X 155253 0 9118 TIMOTHY R SLATER COO/CFO/TREASURER 50.00 0.00 X 148046 0 11033 JAMES BERRY CHIEF OF STAFF 50.00 0.00 X 116066 0 7432 MICHAEL CAPUZZI CHAIR 5.00 0.00 X 0 0 0 JAMES MCSHEFFREY VICE CHAIR 5.00 0.00 X 0 0 0 ROBERT BOWERS MEMBER 2.00 0.00 X 0 0 0 JEREMY CONNOR MEMBER 2.00 0.00 X 0 0 0 JAMES GADBERRY MEMBER (START 2/3/20) 2.00 0.00 X 0 0 0 JEAN GUAN MEMBER 2.00 0.00 X 0 0 0 MICHAEL KEATING MEMBER (START 2/3/20) 2.00 0.00 X 0 0 0 PATRICK MEYER MEMBER (START 2/3/20) 2.00 0.00 X 0 0 0 MATTHEW C MURPHY MEMBER 2.00 0.00 X 0 0 0 TIM MURRAY MEMBER 2.00 0.00 X 0 0 0 MARK OPPENHEIM MEMBER 2.00 0.00 X 0 0 0 STEVE PIPER MEMBER 2.00 0.00 X 0 0 0 PETER RAUBENHEIMER MEMBER 2.00 0.00 X 0 0 0 CLAUDIA RODRIGUEZ MEMBER 2.00 0.00 X 0 0 0 ERIK ROEN MEMBER (THRU 5/15/20) 2.00 0.00 X 0 0 0 NICHOLAS SEMINARA MEMBER (START 5/26/20) 2.00 0.00 X 0 0 0 5114621 121133 678230 45 0 1 0 GRANT THORNTON LLP 171 N CLARK ST SUITE 200 CHICAGO IL 60601 ACCOUNTING SERVICES 102456 1 NONDEDUCTIBLE MEMBERSHIP DUES 900099 53618310 53618310 GEOSPATIAL MEMBER ASSESSMENT 900099 12346045 12346045 USER FEES 900099 1005284 1005284 LICENSE PLATE READER PROGRAM 900099 947600 947600 VEHICLE FINANCE PROGRAM 900099 296557 296557 471649 471649 68685445 1243857 1243857 22045798 79787 15967976 79787 6077822 0 6077822 6077822 RESTITUTION CONTRIBUTION 900099 7291 7291 7291 76014415 68685445 0 7328970 4804257 4589088 215169 28662397 27378692 1283705 1457000 1402374 54626 4867879 4649861 218018 2386485 2310292 76193 90016 80023 9993 102456 102456 133650 133650 109695 109695 1358035 1250574 107461 76945 69480 7465 4426973 3736365 690608 823185 773661 49524 1555594 1059416 496178 177626 169110 8516 67746 62151 5595 10858 9772 1086 486894 438205 48689 811119 79591 731528 GEOSPATIAL IMAGERY 11748764 11748764 AUTO OPERATIONS 1542060 1453277 88783 REPORT AND SURV SUPPORT 14728 14133 595 5398 423 4975 65719760 61275252 4444508 0 1300 1300 10257244 13235257 2216455 2628460 1463645 1028276 8606072 7612068 1453195 994004 46567625 50914957 230095 266930 62189559 69069184 4193725 4541374 2776048 2264151 23288091 23997806 30257864 30803331 X 31919227 38246094 12468 19759 31931695 38265853 62189559 69069184 X 10294655 -3203788 -756709 X 0 1 X 1 0 0 0 1 53618310 133650 14258 147908 91523 56385 2081236 1771096 310140 5577697 5150524 427173 947139 690448 256691 994004 POST RET. BENEFITS NON CURRENT 20830000 DUE TO ISO 1798072 ACCRUED OTHER LIABILITIES 1369734 23997806 X 72700932 -3203788 -3203788 75904720 109695 109695 76014415 65610065 0 65610065 109695 109695 65719760 PART X, LINE 2: FIN 48 FOOTNOTE NICB HAS RECEIVED A FAVORABLE DETERMINATION LETTER FROM THE IRS STATING THAT IT IS EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(4) OF THE INTERNAL REVENUE CODE OF 1986 (IRC), EXCEPT FOR INCOME TAXES PERTAINING TO UNRELATED BUSINESS INCOME. THE FINANCIAL ACCOUNTING STANDARDS BOARD ISSUED GUIDANCE THAT REQUIRE 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 THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION IN THE FINANCIAL STATEMENTS. NO PROVISION FOR INCOME TAXES HAS BEEN INCLUDED IN THE 2020 AND 2019 FINANCIAL STATEMENTS. ADDITIONALLY, THERE IS NO INTEREST OR PENALTIES RECOGNIZED IN THE STATEMENTS OF ACTIVITIES OR STATEMENTS OF FINANCIAL POSITION. X X X X 1 0 0 0 0 0 0 1 0 ANDREW SOSNOWSKI GENERAL COUNSEL/SECRETARY 83646 2354 60838 0 606594 0 5649 0 37280 0 794007 2354 0 0 JOSEPH WEHRLE CHIEF EXECUTIVE OFFICER 236155 0 271785 0 92743 0 13600 0 1197 0 615480 0 0 0 DAVID GLAWE CHIEF EXECUTIVE OFFICER 242928 0 0 0 192266 0 14875 0 5970 0 456039 0 0 0 ROBERT JACHNICKI CFO/TREASURER 199795 2354 65983 0 45748 0 36152 0 33252 0 380930 2354 0 0 DANIEL ABBOTT VICE PRESIDENT/MEMBER SERVICES 219871 0 62996 0 5907 0 42152 0 38499 0 369425 0 0 0 BARBARA LOW VICE PRESIDENT/HUMAN RESOURCES 139334 0 29128 0 66814 0 9014 0 33596 0 277886 0 0 0 KAREN GRACZYK VICE PRESIDENT/ITD 167588 0 25765 0 5395 0 35251 0 38117 0 272116 0 0 0 JAMES SCHWEITZER CHIEF OPERATING OFFICER 131288 0 73388 0 54434 0 7957 0 2545 0 269612 0 0 0 GEORGE WORSHAM DIRECTOR FIELD OPERATIONS 168157 0 24218 0 826 0 32702 0 35917 0 261820 0 0 0 ALAN HASKINS VICE PRESIDENT/GOVT. AFFAIRS 166036 0 24924 0 814 0 10376 0 35897 0 238047 0 0 0 BROOKE KELLEY VICE PRESIDENT/COMMUNICATIONS 172773 0 18113 0 765 0 10506 0 13636 0 215793 0 0 0 MICHAEL SINNO VICE PRESIDENT/L&D 39972 111395 23016 0 321 0 9548 0 30555 0 103412 111395 0 0 ROBERT COOPER VICE PRESIDENT/ASSOC GEN COUN 136722 1529 12481 0 4871 0 9174 0 43616 0 206864 1529 0 0 FREDERICK LOHMANN DIRECTOR FIELD OPERATIONS 142686 0 13943 0 1993 0 9071 0 31210 0 198903 0 0 0 ROBERT JONES DIRECTOR FIELD OPERATIONS 154067 0 14344 0 6434 0 9331 0 2444 0 186620 0 0 0 DANA MACDONALD DIRECTOR FIELD OPERATIONS 149430 0 13805 0 6146 0 8981 0 2005 0 180367 0 0 0 THOMAS P MARTIN GENERAL COUNSEL/SECRETARY 136512 3501 3000 0 25250 0 5960 0 700 0 171422 3501 0 0 BRIAN SMIDT VICE PRESIDENT/DATA ANALYTICS 105073 0 24812 0 23363 0 4708 0 9349 0 167305 0 0 0 KEVIN GALLAGHER DIRECTOR FIELD OPERATIONS 141037 0 13020 0 1196 0 8470 0 1827 0 165550 0 0 0 TIMOTHY R SLATER COO/CFO/TREASURER 121160 0 0 0 26886 0 7450 0 4237 0 159733 0 0 0 PART I, LINE 4A: SEVERANCE PAYMENTS TWO INDIVIDUALS REPORTED IN PART VII RECEIVED A SEVERANCE PAYMENT DURING THE YEAR. THE AMOUNT IS REPORTED AS TAXABLE WAGES ON THEIR W-2. THEIR NAMES ARE NOT REPORTED DUE TO NON-DISCLOSURE AGREEMENTS. PART I, LINE 7: NON-FIXED PAYMENTS 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 2019 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. FORM 990, PART VI, SECTION A, LINE 1 EXECUTIVE COMMITTEE AND OTHER COMMITTEES EXECUTIVE COMMITTEE: 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. OTHER COMMITTEES: 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 JUDGEMENT, THE BEST INTERESTS OF THE CORPORATION ARE TO BE SERVED BY SUCH REMOVAL. FORM 990, PART VI, SECTION A, LINE 2 BUSINESS RELATIONSHIPS TIMOTHY R. SLATER, MICHAEL SINNO AND THOMAS P. MARTIN HAVE A BUSINESS RELATIONSHIP WITH EACH OTHER AS VOTING MEMBERS AT A RELATED ORGANIZATION NATIONAL INSURANCE CRIME TRAINING ACADEMY. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS A NATIONAL PUBLIC ACCOUNTING FIRM PREPARES THE FORM 990. A DRAFT OF THE RETURN IS REVIEWED BY THE NICB TREASURER AND INTERNAL ACCOUNTING NICB PERSONNEL. AN UPDATED FINAL DRAFT IS REVIEWED AND APPROVED BY THE NICB AUDIT/FINANCE COMMITTEE AND PROVIDED ELECTRONICALLY TO THE FULL NICB VOTING BOARD OF GOVERNORS FOR COMMENTS BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY MONITORING & ENFORCEMENT 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 OFFICER, AND THE COMPLIANCE OFFICER REPORTS ALL MATTERS TO THE NICB AUDIT/FINANCE COMMITTEE FOR REVIEW. FORM 990, PART VI, SECTION B, LINE 15 PROCESS FOR DETERMINING COMPENSATION 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 OR RATIFICATION 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. THERE IS AN EXTERNAL SALARY SURVEY AND REVIEW CONDUCTED EVERY 3 YEARS. THE FINAL SALARY RATES ARE APPROVED BY THE EXECUTIVE COMMITTEE OF THE BOARD ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS MADE AVAILABLE ARTICLES, BYLAWS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: RECONCILIATION OF NET ASSETS OTHER CHANGES IN NET ASSETS OR FUND BALANCES CONSIST OF: POST-RETIREMENT RELATED CHANGES OTHER THAN NET PERIODIC POST-RETIREMENT COSTS $(764,000) RESTITUTION CONTRIBUTION $ 7,291 TOTAL $(756,709) NATIONAL INSURANCE CRIME TRAINING ACADEMY 1111 EAST TOUHY AVE STE 400 DES PLAINES IL 60018 311768814 PUBLIC SAFETY IL 501(C)(3) LINE 10 NICB 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 NATIONAL INSURANCE CRIME TRAINING ACADEMY O 297597 FMV