2019-06-14T12:56:49-05:00 2018-12-31 420714325 RSM US LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 20878 990 2018-01-01 521191985 NATIONAL COMMITTEE FOR QUALITY ASSURANCE NATI 2029555129 1100 13TH STT NW THIRD FLOOR WASHINGTON DC 200054056 DANIEL A O'CONNOR CFO/TREASURER 2029555129 2019-06-07 1 WILLIAM E TURCO CPA P00369217 3012963600 66.98.98.9 2019-06-07 13:25:42 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 00BFBB601F26E6691F3C42FDB75EEBE807206D5E 2018 2019-02-21 02:37:17Z NCQA MARGARET E O'KANE 1100 13TH STT NW THIRD FLOOR WASHINGTON DC 200054056 72474735 0 X WWW.NCQA.ORG X 1990 DC OUR MISSION: TO IMPROVE THE QUALITY OF HEALTH CARE.OUR VISION: TO TRANSFORM HEALTH CARE QUALITY THROUGH MEASUREMENT, TRANSPARENCY AND ACCOUNTABILITY. 18 17 406 132 0 185972 5129271 4040804 69149874 63647578 886490 998731 3731029 3082550 78896664 71769663 0 0 0 0 47739559 49704406 0 0 408071 19969981 19036563 67709540 68740969 11187124 3028694 84811375 85700616 29105611 31041226 55705764 54659390 OUR MISSION: TO IMPROVE THE QUALITY OF HEALTH CARE.OUR VISION: TO TRANSFORM HEALTH CARE QUALITY THROUGH MEASUREMENT, TRANSPARENCY AND ACCOUNTABILITY. 0 0 56252684 66592991 ACCREDITATION, CERTIFICATION OR RECOGNITION OF MANAGED CARE ORGANIZATIONS, ACCOUNTABLE CARE ORGANIZATIONS, MANAGED BEHAVIORAL HEALTHCARE ORGANIZATIONS, CREDENTIALS VERIFICATION ORGANIZATIONS, PHYSICIAN ORGANIZATIONS, INDIVIDUAL PHYSICIANS, HEDIS COMPLIANCE AUDITORS, SURVEY AND SOFTWARE VENDORS AND PREFERRED PROVIDER ORGANIZATIONS. PERFORMANCE MEASUREMENT - NCQA DEVELOPS AND MAINTAINS THE PRINCIPAL HEALTH CARE PERFORMANCE MEASUREMENT TOOL FOR HEALTH PLANS AND PHYSICIANS, THE HEALTH CARE EFFECTIVENESS DATA AND INFORMATION SET (HEDIS). NCQA WORKS ON A CONTRACT BASIS WITH PUBLIC AND PRIVATE ORGANIZATIONS TO DEVELOP, MANAGE, EXECUTE, OR CONSULT ON PROJECTS. NCQA ALSO DEVELOPS AND DELIVERS EDUCATION CONFERENCES, PUBLICATIONS, AND INFORMATION PRODUCTS. 3896049 NCQA IS RESPONDING TO THE RAPIDLY CHANGING HEALTH CARE MARKETPLACE BY DEVELOPING NEW PROGRAMS AND SERVICES THAT MEASURES PERFORMANCE ACROSS THE DELIVERY SYSTEM. 60148733 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 233 0 1 406 1 1 1 0 0 0 0 1 1 0 0 0 0 1 0 X 18 17 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA DC X DANIEL A O'CONNOR CFOTREASURER 2029553500 1100 13TH STREET NW THIRD FLOOR WASHINGTON DC 20005 DAVID C K CHIN MD MBA CHAIRPERSON BOARD 3.00 X X 0 0 0 THOMAS BETLACH BOARD MEMBER 2.00 X 0 0 0 BENJAMIN K CHU MD MPH MACP BOARD MEMBER 2.00 X 0 0 0 PATRICK CONWAY BOARD MEMBER 2.00 X 0 0 0 JOHN GLASER PHD BOARD MEMBER 2.00 X 0 0 0 GEORGE HALVORSON BOARD MEMBER 2.00 X 0 0 0 JEFFREY KANG MD BOARD MEMBER 2.00 X 0 0 0 DAVID KENDRICK MD MPH BOARD MEMBER 2.00 X 0 0 0 LEEBA LESSIN BOARD MEMBER 2.00 X 0 0 0 RALPH W MULLER BOARD MEMBER 2.00 X 0 0 0 DEBRA NESS BOARD MEMBER 2.00 X 0 0 0 JOSEPH NEWHOUSE PHD BOARD MEMBER 2.00 X 0 0 0 LEN NICHOLS PHD BOARD MEMBER 2.00 X 0 0 0 J BRENT PAWLECKI MD MMM BOARD MEMBER 2.00 X 0 0 0 CRAIG SAMMITT MD MBA BOARD MEMBER 2.00 X 0 0 0 SUSAN STUARD BOARD MEMBER 2.00 X 0 0 0 GLENDA WRENN MD MSHP FAPA BOARD MEMBER 2.00 X 0 0 0 MARGARET E O'KANE PRESIDENT 40.00 X X 1059549 0 34902 SHARON KING-DONOHUE GENERAL COUNSEL/SECRETARY 40.00 X 450939 0 78340 SCOTT A HARTRANFT CFO/TREASURER 40.00 X 557817 0 57773 DANIEL A O'CONNOR CFO/TREASURER 40.00 X 111217 0 12613 THOMAS FLUEGEL CHIEF OPERATING OFFICER 40.00 X 454757 0 79066 MICHAEL BARR EXECUTIVE VICE PRESIDENT 40.00 X 509706 0 83712 LISA SLATTERY VP, ACCREDITATION & RECOGNITION OPS. 40.00 X 378249 0 29833 PATRICIA BARRETT VP, PRODUCT DESIGN & SUPPORT 40.00 X 357302 0 42967 MARY BARTON VP, PERFORMANCE MEASURES 40.00 X 331269 0 23122 RICK MOORE CHIEF INFORMATION OFFICER 40.00 X 324408 0 24582 FRANK MICCICHE VP, PUBLIC POLICY & COMM. 40.00 X 302403 0 52534 4837616 0 519444 176 0 1 0 RAND CORPORATION PO BOX 2138 SANTA MONICA CA 90407 SUBCONTRACTOR FOR GRANT 991148 SIZEABLE INTERACTIVE LLC 714 S WOLFE STREE UNIT 6110 BALTIMORE MD 21231 WEBSITE DESIGN 427992 APELON INC 750 MAIN STREET SUITE 1500 HARTFORD CT 06103 APPLICATION DEVELOPMENT 337617 OPTUMINSIGHT INC P O BOX 84019 CHICAGO IL 60689 CONSULTING SERVICES 285915 SCIGON SOLUTIONS INC 420 LAKE COOK ROAD SUITE 104 DEERFIELD IL 60015 APPLICATION DEVELOPMENT 232605 23 449500 3591304 4040804 ACCREDITATION SERVICES 900099 28668401 28668401 FED/STATE CONTRACTS 900099 20647359 20647359 INFORMATION PRODUCTS 900099 11863174 11863174 EDUCATION CONFERENCES 900099 2468644 2468644 63647578 1019497 1019497 20766 -20766 -20766 -20766 90542 449500 622336 -531794 -531794 3007383 61970 2945413 2945413 OTHER INCOME 900099 668931 668931 668931 71769663 66592991 0 1135868 3409234 2692157 699218 17859 37028981 29240535 7594472 193974 2344402 1851295 480826 12281 4160338 3285278 853266 21794 2761451 2180624 566361 14466 207396 207396 125755 125755 120000 120000 134449 33056 101393 750311 157585 584599 8127 2323225 1776775 536331 10119 1906626 1634382 237317 34927 1235373 752254 467762 15357 1800179 1800179 421817 421817 TAXES 61803 61803 SUBCONTRACTOR/CONSULTAN 8795618 6810464 1974634 10520 OTHER DIRECT COSTS 929011 152089 771841 5081 FRAUD EXPENSE 225000 225000 9582239 -9645805 63566 68740969 60148733 8184165 408071 14671 6151 10016981 11656737 1809043 2880292 9600755 9523945 39345 47779 377237 554161 18245442 7423871 9549012 10821571 17413433 16564907 33698187 31502483 2292711 2142590 84811375 85700616 10663412 10450233 10805231 11750442 7636968 8840551 29105611 31041226 X 52286938 50202574 3418826 4456816 55705764 54659390 84811375 85700616 3028694 -4075068 0 X 0 1 X 1 1 1 X 760788 4126226 1787173 5129271 4040804 15844262 760788 4126226 1787173 5129271 4040804 15844262 4600021 11244241 52 586232 789867 933045 1019497 3328693 569995 603518 639175 687229 668931 3168848 22341803 316377957 0.50330 0.44400 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2014 AMOUNT: $ 569,995. 2015 AMOUNT: $ 603,518. 2016 AMOUNT: $ 639,175. 2017 AMOUNT: $ 687,229. 2018 AMOUNT: $ 668,931. 0 127130 127130 68802939 68930069 1000000 250000 0 0 1000000 1000000 2000000 3000000 144681 127130 271811 250000 250000 500000 750000 0 0 0 4075639 491314 3584325 9405682 4391989 5013693 4764121 2540568 2223553 10821571 82,706 - VANGUARD 500 INDEX FD (VFIAX) 19141432 F 44,746 - ISHARES ETF (IJH) 7430528 F 177,293-INVESTCO S&P 500 QUALITY ETF (SPHQ) 4930523 F 31502483 DEFERRED RENT 7133605 DEFERRED COMPENSATION 1706946 8840551 X 68399667 -4075068 -4075068 72474735 -705072 -705072 71769663 69446041 705072 705072 68740969 0 68740969 PART X, LINE 2: NCQA IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. INCOME WHICH IS NOT RELATED TO EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL AND STATE CORPORATE INCOME TAXES. NCQA HAD NO NET UNRELATED BUSINESS INCOME FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017. NCQA FOLLOWS THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, NCQA MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFITS RECOGNIZED IN THE FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ALSO ADDRESSES DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS. NCQA HAD NO SUCH POSITIONS RECORDED IN THE FINANCIAL STATEMENTS AT DECEMBER 31, 2018 AND 2017. GENERALLY, NCQA IS NO LONGER SUBJECT TO U.S. FEDERAL INCOME TAX POSITIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2015. PART XI, LINE 4B - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES REPORTED ON LINE 8B -622,336. COST OF GOODS SOLD REPORTED ON LINE 10B -61,970. LOSS ON DISPOSAL OF EQUIPMENT REPORTED ON LINE 7C -20,766. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES REPORTED ON LINE 8B 622,336. COST OF GOODS SOLD REPORTED ON LINE 10B 61,970. LOSS ON DISPOSAL OF EQUIPMENT REPORTED ON LINE 7C 20,766. QUALITY TALKS 469042 378500 90542 158690 305998 DIGITAL QUALITY SUMMIT 71000 71000 81630 42047 33971 540042 449500 90542 81630 200737 339969 622336 -531794 X X X 1 1 0 0 0 1 0 0 0 MARGARET E O'KANE PRESIDENT 573543 0 290354 0 195652 0 23188 0 17493 0 1100230 0 130980 0 SHARON KING-DONOHUE GENERAL COUNSEL/SECRETARY 340816 0 93599 0 16524 0 58329 0 26187 0 535455 0 0 0 SCOTT A HARTRANFT CFO/TREASURER 128713 0 119887 0 309217 0 23188 0 39037 0 620042 0 66067 0 THOMAS FLUEGEL CHIEF OPERATING OFFICER 337160 0 96401 0 21196 0 59391 0 27369 0 541517 0 0 0 MICHAEL BARR EXECUTIVE VICE PRESIDENT 383389 0 107121 0 19196 0 63702 0 24629 0 598037 0 0 0 LISA SLATTERY VP, ACCREDITATION & RECOGNITION OPS. 309638 0 65433 0 3178 0 23122 0 12204 0 413575 0 0 0 PATRICIA BARRETT VP, PRODUCT DESIGN & SUPPORT 277074 0 60031 0 20197 0 23122 0 27289 0 407713 0 0 0 MARY BARTON VP, PERFORMANCE MEASURES 254176 0 55997 0 21096 0 23122 0 5042 0 359433 0 0 0 RICK MOORE CHIEF INFORMATION OFFICER 262045 0 58363 0 4000 0 23122 0 8555 0 356085 0 0 0 FRANK MICCICHE VP, PUBLIC POLICY & COMM. 236389 0 52526 0 13488 0 23122 0 36618 0 362143 0 0 0 PART I, LINES 4A-B SCOTT HARTRANFT RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $217,689 AND THIS IS REPORTED AS OTHER REPORTABLE COMPENSATION IN PART II, COLUMN B(III). THE FOLLOWING EMPLOYEES PARTICIPATED IN A SUPPLEMENTAL NONQULIFIED RETIREMENT PLAN 457(F) DURING THE CALENDAR YEAR. MARGARET O'KANE - $0 SHARON KING-DONOHUE - $35,207 SCOTT HARTRANFT - $0 THOMAS FLUEGEL - $36,269 MICHAEL BARR - $40,580 THE FOLLOWING EMPLOYEES RECEIVED PAYMENT FROM A SUPPLEMENTAL NONQULIFIED RETIREMENT PLAN 457(F) DURING THE CALENDAR YEAR. MARGARET O'KANE - $240,100 SCOTT HARTRANFT - $71,613 PART I, LINE 6 DISCRETIONARY INCENTIVES ARE PAID TO ALL ELIGIBLE STAFF BASED UP THE ACHIEVEMENT OF PRIORITY PROJECTS, THE BUSINESS PLAN AND THEIR INDIVIDUAL PERFORMANCE. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 UNDERGOES INTERNAL REVIEW AND IS THEN EXAMINED BY THE FINANCE AND AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. AT THAT TIME, CORRECTIONS ARE MADE IF NEEDED. THE FORM 990 IS THEN APPROVED BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS A CONFLICT OF INTEREST POLICY GOVERNING ITS BOARD OF DIRECTORS. WRITTEN AND ORAL CONFLICT OF INTEREST DISCLOSURES ARE REQUIRED ANNUALLY. DIRECTORS ARE REQUIRED TO IDENTIFY ANY POTENTIAL CONFLICTS OF INTEREST WITH AGENDA ITEMS AT THE OUTSET OF EACH BOARD MEETING. THE GOVERNANCE COMMITTEE OF THE BOARD IS RESPONSIBLE FOR ENSURING THAT NCQA ADOPTS AND ENFORCES APPROPRIATE GOVERNANCE POLICIES INCLUDING CONFLICT OF INTEREST. THE BOARD IN CONSULTATION WITH THE GENERAL COUNSEL IS RESPONSIBLE FOR RESOLUTION OF SPECIFIC CONFLICT OF INTEREST ISSUES THAT MAY ARISE IN CONNECTION WITH THE BOARD'S ACTIVITIES. NCQA'S OPERATING COMMITTEES AND EXPERT PANELS HAVE SEPARATE CONFLICT OF INTEREST POLICIES WHICH ALSO REQUIRE ANNUAL WRITTEN DISCLOSURE OF POTENTIAL CONFLICTS OF INTEREST. COMMITTEE MEMBERS AND PANEL PARTICIPANTS ARE REQUIRED TO DISCLOSE POTENTIAL CONFLICTS OF INTEREST AT THE OUTSET OF EACH MEETING OR PRIOR TO DELIBERATIONS OR A VOTE ON ANY MATTER FOR WHICH A MEMBER MIGHT HAVE A CONFLICT. THE COMMITTEE CHAIR OR EXPERT PANEL CHAIR IN CONSULTATION WITH THE GENERAL COUNSEL OVERSEES ENFORCEMENT OF THE POLICIES. THE REVIEW OVERSIGHT COMMITTEES AND THE RECONSIDERATION COMMITTEES (THESE ARE PEER REVIEW COMMITTEES THAT RENDER THE ACCREDITATION, CERTIFICATION OR RECOGNITION DECISIONS) HAVE SEPARATE CONFLICT OF INTEREST POLICIES THAT REQUIRE DISCLOSURE OF SPECIFIC CONFLICTS OF INTEREST RELATED TO ANY ORGANIZATION OR INDIVIDIUAL BEING REVIEWED FOR ACCREDITATION, CERTIFICATION OR RECOGNITION. THE ACCREDITATION STAFF ARE RESPONSIBLE FOR ADMINISTERING THESE CONFLICT OF INTEREST POLICIES AND CONSULT WITH THE GENERAL COUNSEL WHEN ISSUES OF POTENTIAL CONFLICTS ARE DECLARED. IN ADDITION, THE ORGANIZATIONS BEING REVIEWED FOR ACCREDITAITON, CERTIFICATION OR RECOGNITION ARE REQUIRED TO DECLARE POTENTIAL CONFLICTS THEY MAY HAVE WITH COMMITTEE MEMBERS AND REVIEWERS. NCQA SENIOR STAFF COMPLETE A WRITTEN AND ORAL CONFLICT OF INTEREST DISCLOSURE ANNUALLY. STAFF ARE REQUIRED TO UPDATE THEIR DISCLOSURES IF ANYTHING CHANGES DURING THE YEAR. THE DISCLOSURE PROCESS AND RESOLUTION OF POTENTIAL CONFLICTS IS OVERSEEN BY THE GENERAL COUNSEL. ALL NCQA STAFF ARE SUBJECT TO A POLICY PROHIBITING INSIDER TRADING WHICH SPECIFIES THAT NCQA STAFF CANNOT OWN A DIRECT INTEREST (MUTUAL FUNDS ARE EXCLUDED) IN ANY ORGANIZATION NCQA ACCREDITS, CERTIFIES OR RECOGNIZES. FORM 990, PART VI, SECTION B, LINE 15 FOR THE PRESIDENT, THE EXECUTIVE & COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS DECIDES ON A NUMERICAL RATING FOR THE PRESIDENT'S PERFORMANCE MANAGEMENT PLAN, AND A NUMERICAL RATING FOR THE ORGANIZATION PERFORMANCE. REFLECTING ON THESE RATINGS, CONSIDERING COMPARABLE MARKET DATA COLLECTED BY AN EXTERNAL COMPENSATION CONSULTANT, THE EXECUTIVE & COMPENSATION COMMITTEE DETERMINES THE SALARY OF THE PRESIDENT, WHICH IS THEN DOCUMENTED IN THE PRESIDENT'S WRITTEN EMPLOYMENT CONTRACT AND THE MEMBERS OF THE EXECUTIVE AND COMPENSATION COMMITTEE. THE ORGANIZATION'S PRESIDENT UTILIZES THE SAME PROCESS TO DETERMINE THE SALARY FOR THE FIVE MOST HIGHLY COMPENSATED LEADERSHIP TEAM MEMBERS. THE PRESIDENT PRESENTS THIS INFORMATION TO THE EXECUTIVE & COMPENSATION COMMITTEE FOR DISCUSSION AND APPROVAL. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION POSTS ON ITS COMPANY'S WEBSITE THE CONFLICT OF INTEREST POLICIES. THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND AUDITED FINANCIAL STATEMENTS AVAILABLE UPON REQUEST.