Complete 2012 forensic audit documents - Kansas Bioscience ...

Other Employment Decision Allegation ............................................................................88
Use of Non-Attorney as Contract Administrator ...............................................................88
Use of Outside Consultants to Review Eminent Scholar Applications .............................89
Rising Star Krista Walton ..................................................................................................89
Allegations Related to the Replacement of KBA Servers .................................................89
REVIEW OF NAICS CODES OF COMPANIES RECEIVING FUNDING FROM KBA .... 90
KANSAS BIOSCIENCE GROWTH FUND............................................................................ 90
KBA Evaluation Process....................................................................................................91
Selected Venture Capital Funds .........................................................................................92
KBA Requirements and Side Letter Terms .......................................................................92
Status of Investments .........................................................................................................94
LEGISLATOR EXPENSES ..................................................................................................... 95
KANSAS TECHNOLOGY ENTERPRISE CORPORATION ................................................ 97
PRIMARY FINDINGS AND RECOMMENDATIONS .................................................................. 99
SCOPE LIMITATIONS ........................................................................................................... 99
Thornton Computer ............................................................................................................99
Center of Innovation for Biomaterials in Orthopaedic Research .....................................100
Use of Executive Session .................................................................................................100
TOM THORNTON ................................................................................................................. 100
Tom Thornton KBA Computer ........................................................................................100
Allegations Related to Thornton’s Removal of Information from the Server .................103
Executive Compensation .................................................................................................104
Other Payments Under Tom Thornton’s Employment Agreements ................................107
Personal Use of KBA Owned Artwork ............................................................................110
Personal Use of Executive Assistant’s Time ...................................................................111
TRAVEL AND ENTERTAINMENT EXPENSE REVIEW ................................................. 111
Noteworthy Expenses ......................................................................................................112
Expense Policy and Procedures Review ..........................................................................116
VENDOR CONTRACT AND RELATED EXPENSE REVIEW ......................................... 121
Significant Vendors .........................................................................................................121
Contracting Policies and Procedures Review ..................................................................130
PAYMENTS BY OUTSIDE PARTIES ................................................................................. 135
POTENTIAL CONFLICTS OF INTEREST .......................................................................... 135
Recent Potential Conflict of Interest ................................................................................136
Potential for Conflicts of Interest Due to Existing Relationships ....................................138
APPROPRIATENESS OF GRANTS TO ORGANIZATIONS WITH FINANCIAL
TIES TO BOD ................................................................................................................ 144
KANSASBIO .......................................................................................................................... 145
OUTCOME VERIFICATION ................................................................................................ 147
INVESTMENT MONITORING AND TRACKING ............................................................. 149
KBA HEARTLAND BIOVENTURES DEAL FLOW MEETINGS ..................................... 149
HEARTLAND BIOVENTURES ADVISORY BOARD ....................................................... 150
iii