Complete 2012 forensic audit documents - Kansas Bioscience ...

Ms. LoScalzo further recalled that around this time, there was also an issue with Thornton’s
computer that Summit Computer Solutions had been called to address. BKD reviewed Summit
Computer Solutions’ invoice and noted on March 11, 2011, Summit was called to “troubleshoot
missing My Documents folder on Tom’s PC. Restore files to server from online backup.” BKD
contacted David O’Dell of Summit Computer Solutions regarding these services. O’Dell
indicated that he did not know exactly how or why Thornton’s My Documents folder was
missing. However, O’Dell indicated that the KBA folder that would automatically sync with the
on-line back-up system was housed within Thornton’s My Documents folder. O’Dell indicated
that he restored the KBA file from the on-line back-up, but that no other folders that had been
housed within Thornton’s My Documents folders were restored as they were not automatically
sync’d with the on-line back-up system. O’Dell offered that it was his impression that Thornton
had inadvertently deleted the My Documents folder.
In addition to his alleged cleaning up of server files, Ms. LoScalzo indicated that around the
same time period of March 11 th to 14 th , Mr. Thornton started doing a lot of cleaning in his office.
It appeared to her that he was readying to step down. He started to take his office knick knacks
home. He cleaned out file cabinets that he kept locked. Ms. LoScalzo indicated that Thornton
cleaned a lot, but nothing was ever in his waste basket. She indicated that Thornton kept a big
box under his desk for two to three weeks that he kept taped shut, and then it was gone.
BKD notes that the approximate March 11 th date on which Ms. LoScalzo started noticing
Thornton’s alleged cleaning of his office and his files coincides with the date on which it appears
he may have accepted the offer of employment from Cleveland Clinic Innovations as discussed
earlier in this report. Furthermore, in his interview, Thornton stated that he accepted the offer
from Cleveland Clinic Innovations sometime in March.
Executive Compensation
K.S.A. 74-99b04(j) states that “No part of the funds of the authority shall inure to the benefit of,
or be distributed to, its employees, officers or members of the board, except that the authority
may …pay reasonable compensation for services rendered to or for its benefit relating to any of
its lawful purposes, including to pay its employees reasonable compensation.” Furthermore,
K.S.A. 74-99b04(m) indicates that the BOD shall appoint a president who will serve as the CEO
of KBA and the president’s salary shall be set by the BOD.
The Executive Committee is charged with approving key policies related to executive and
employee compensation. The Committee is responsible for: 85
• reviewing and recommending to the BOD compensation and compensation plans for the
President/Chief Executive Officer of KBA and other key management personnel
(collectively “Senior Executives”), which compensation and compensation plans can
include, but not be limited to, base salary, periodic adjustments to base salary, short-term
and long-term incentive compensation plans, qualified plans and non-qualified plans;
• reviewing and approving qualified and non-qualified benefit plans for KBA, including
any such program that has specific application to Senior Executives or represents a
material change in the structure of any such program;
85 Executive Committee Charter
http://www.kansasbioauthority.org/about_the_kba/ExecutiveCommitteeCharter.aspx.
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