Complete 2012 forensic audit documents - Kansas Bioscience ...

in the areas of bioscience and governmental affairs, which Mr. Thornton indicated were skill sets
that qualified her for the position of Director of Special Projects.
Lindsay Holwick Thornton’s job responsibilities, as noted in her offer letter dated September 22,
2008, included coordinating with staff to manage special projects as assigned by the
President/CEO. The position was to have extensive contact with key constituents, including
state and federal public officials, civic leaders, economic development professionals and the
KBA BOD. Representative projects were to include:
• Strategic Planning and Execution – facilitate development of KBA strategic plan;
analysis and implementation planning for strategies and special projects.
• Government Affairs – monitor legislative trends and regulations at state level; monitor
federal science and technology issues; identify funding opportunities; manage advocacyrelated
activities; manage KBA efforts to pursue large-scale federal R&D opportunities
(NBAF, National Cancer Designations, etc.).
• KBA BOD – staff the Executive, Governance and Nominating committees and coordinate
BOD meetings.
• Partner Relationships – work with KTEC, KansasBio and the Kansas Department of
Commerce to lead and coordinate joint projects.
In October 2009, Tom Thornton and Lindsay Holwick Thornton began a personal relationship.
As that relationship progressed through the spring of 2010, Mr. Thornton made the decision to
change Lindsay Holwick Thornton’s line of reporting from himself to Jan Katterhenry, KBA’s
CFO/COO and Ms. Katterhenry was notified of the relationship. However, members of the
BOD were not notified of the personal relationship until they received wedding invitations in the
late December 2010 timeframe. All BOD members canvassed indicated that this information is
something they would have liked to have known at the point the reporting structure was changed
to Katterhenry.
On January 3, 2011, KBA’s external counsel, Lathrop & Gage, was contacted and asked to
perform a review of any appropriate regulations or statutes related to state employees and
nepotism in light of Tom Thornton’s and Lindsay Holwick Thornton’s upcoming marriage.
KBA’s external counsel reviewed state statutes, opinions of the Kansas Governmental Ethics
Commission and posed the hypothetical situation to a member of the Kansas Governmental
Ethics Commission by telephone. It was determined that only K.S.A. 46-246a would apply if
KBA employees were state employees, which external counsel noted they were not.
K.S.A. 46-246a does not prohibit a state employee from being in a position to exercise authority
over a subordinate family member (including spouses), but does prohibit:
• the actual exercising of authority in areas of appointment, promotion, transfer,
advancement and discipline; and
• the participation in an action relating to employment or discipline of family members.
KBA’s own internal policies indicate that neither officers nor BOD members may advocate or
cause the employment of such an officer’s or member’s household or a family member, nor may
they participate in any disciplinary action related to such person’s employment.
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