Complete 2012 forensic audit documents - Kansas Bioscience ...

Tom Thornton Overpaid Car Allowance
April 2011 Car Allowance Paid $ 625.00
Number of Days Disallowed 17/30
Amount Overpaid $ 354.17
KBA’s Response:
KBA has made a written demand to Mr. Thornton for reimbursement of $4,679.88, which is the
total of the overpayment of the car allowance discussed in this section and, as discussed in later
sections, personal use of KBA owned artwork, reimbursement for personal travel expenses and
the inadvertent double reimbursement for some business travel expenses. Mr. Thornton has
agreed to repay this amount in full.
Personal Use of KBA Owned Artwork
Tom Thornton used a KBA owned piece of art for personal use. Mr. Thornton purchased “Mt.
Oread from Vinland,” a 36” x 36” print, for $427.38 on March 1, 2007 from Fields Gallery. He
reported the expense on his March 16, 2007 expense report, and was reimbursed for the expense
with check #629 on March 23, 2007. The former Executive Assistant, Melissa Lynch, explained
that she saw the piece in Mr. Thornton’s home around June 2007 during a party hosted by
Thornton. Ms. Lynch took a picture of the art at that time, which she provided to BKD. BKD
recognized the print, which had been sitting on the floor of Thornton’s office around April or
May of 2011 in the previous KBA location. BKD had utilized Thornton’s office when working
at KBA and BKD personnel had seen the print. BKD asked the current Executive Assistant,
Marsh LoScalzo, if she had ever seen the print. She indicated she had seen it, but it had never
been displayed at KBA. The only time she had seen it was after Thornton had resigned from
KBA on April 13, 2011. She explained that the artwork appeared in Thornton’s office over a
weekend sometime after his resignation but before KBA moved to its new facility on May 14,
2011. LoScalzo liked the print and went online to search for a copy of the print to purchase for
herself, and was certain that the title of the print was “Mt. Oread from Vinland” as she needed
the name of the print to perform her online search. After some time, LoScalzo asked Thornton
what he wanted done with his personal items that were still at KBA, including this print.
Thornton directed LoScalzo to give his personal items to Brad Kemp, another KBA employee
and friend of Thornton’s, so Kemp could in turn deliver the items to Thornton. Kemp indicated
that he delivered Thornton’s personal belongings to him on May 12, 2011, but according to
Kemp, Thornton did not want the print. Thornton offered the artwork to Kemp, who accepted it.
Kemp subsequently donated it to the Douglas County CASA (Court Appointed Special
Advocates) on June 22, 2011 for their auction on July 14, 2011. Kemp indicated he was not
aware that the artwork had been purchased with KBA funds. Please refer to Exhibit 43 for
copies of the referenced documents.
Recommendation:
The BOD should determine whether legal action should be taken against Thornton related to the
artwork and should seek reimbursement for the cost of the artwork.
KBA’s Response:
As noted earlier, KBA has made a written demand to Mr. Thornton that he reimburse KBA for
various items noted in this report, including the cost of the artwork. Mr. Thornton has agreed to
reimburse the amount demanded.
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