Complete 2012 forensic audit documents - Kansas Bioscience ...

Recommendations

Info

Computer Forensics Computer hard drives for the KBA server and hard drives used by the following current and former KBA personnel were imaged and forensic analysis and email review of certain hard drives were performed. Tom Thornton Lindsay Thornton David Vranicar Jan Katterhenry Tariq Abdullah Marsh LoScalzo Ruth Saale Katie Montes Nancy Ruf Lisa Kay Terry Osborn Tony Simpson Brad Kemp Keith Harrington Tom Krol Don Colbert Ryan White Mary Cummings Gary Micheel Chad Bettes Melissa Lynch 12 Ashley Tyrrell 13 Forest Decker 14 Pam Fellin 15 Cary Nourie In addition, Tom Thornton’s email files and content were retrieved from the off-site server storage by Summit Computer Solutions, KBA’s external IT provider, for review by BKD. The email was retrieved as a single PST 16 file. Thornton’s PST file contained email messages and attachments, contacts and appointments, as well as email folders and distribution lists. 12 Email belonging to Melissa Lynch was found on her former computer, which is in use by another employee. 13 Email belonging to Ashley Tyrrell was found on her former computer, which is in use by another employee. 14 Email belonging to Forest Decker was found on his former computer, which is in use by another employee. 15 Email belonging to Pam Fellin was found on her former computer, which is in use by another employee. 16 In computing, PST or personal storage table is an open proprietary file format used to store copies of messages, calendar events and other items within Microsoft email software. 10
HISTORY AND OVERVIEW OF KBA OPERATIONS KBA was created on April 19, 2004 by the Kansas Economic Growth Act (“KEGA”) and was originally projected to be a 15 year, $581.8 million 17 initiative focused on growing the bioscience sector in the state of Kansas. KBA is charged with: • building world-class research capacity; • fostering the formation and growth of bioscience start-ups; • supporting expansion of the state’s bioscience clusters; and • facilitating industrial expansion and attraction. KBA is governed by an 11-person 18 BOD, appointed by various state leaders, 19 comprised of local and national leaders in industry and academia. KBA’s funding is based on the growth of state tax withholdings of bioscience employees working for bioscience companies and state universities in Kansas. State withholding taxes that exceed 95% of the 2003 base-year measurement of such taxes for companies with specifically identified NAICS codes accrue to KBA for investment in additional bioscience growth for 15 years or until funding reaches $581.8 million. 20 KBA is focused on expanding Kansas’ research and industry strengths to: • increase the quantity of high-quality research that has commercial relevance for Kansas; • expand the availability of investment capital needed to form and grow new companies; • grow and nurture an increasingly experienced pool of entrepreneurial management talent supported by organized systems of services and networking; • expand the availability of capital and assistance to support product innovation in established companies; and • facilitate bioscience corporate expansion and attract new-to-Kansas bioscience corporate activity that grows and strengthens specific clusters of excellence. KEGA indicates that the mission of KBA is “to make Kansas the most desirable state in which to conduct, facilitate, support, fund and perform bioscience research, development and commercialization, to make Kansas a national leader in biosciences, to create new jobs, foster economic growth, advance scientific knowledge and improve the quality of life for the citizens of the state of Kansas.” 21 KEGA contained some clear requirements with regard to specific KBA programs, which are noted where appropriate throughout this report. However, KEGA left much of the “how” KBA was to accomplish its stated mission to the interpretation of KBA’s BOD. 17 Due to funding caps in place since 2008, it is now projected by KBA management that KBA will not reach its maximum funding of $581.8 million prior to its sunset date of 2019, 15 years after the enactment of KEGA. 18 Nine voting members and two non-voting members. 19 The Governor has two appointments, the Speaker of the House of Representative has two appointments, the President of the Senate has two appointments, the Minority Leader of the House has one appointment, the Minority Leader of the Senate has one appointment and one position is held by the Secretary of Commerce. All voting members must be confirmed by the Senate. The Secretary of Commerce is a voting member who need not be confirmed. 20 K.S.A. 74-99b33 and 74-99b34. 21 K.S.A. 74-99b02(a)(5). 11
Page 2 and 3: KBA audit summary In meetings of th
Page 4 and 5: KBA Forensic Audit Summary Page 2 o
Page 12 and 13: KBA Forensic Audit Summary Page 10
Page 34 and 35: Table of Contents INTRODUCTION ....
Page 36 and 37: Other Employment Decision Allegatio
Page 38 and 39: have all provided information and i
Page 40 and 41: KBA again appeared before the Comme
Page 42 and 43: ENGAGEMENT APPROACH Interviews Inte
Page 44 and 45: • Kent Glasscock - President Nati
Page 48 and 49: START-UP PHASE KBA has operated und
Page 50 and 51: State University the proposed grant
Page 52 and 53: described Thornton as an effective
Page 54 and 55: Investment Committee. All current H
Page 56 and 57: The program goals are to: 1) recrui
Page 58 and 59: Through June 30, 2011, three Rising
Page 60 and 61: grants or bonds. KBA also works wit
Page 62 and 63: center is a public and private coll
Page 64 and 65: Some individuals BKD interviewed ob
Page 66 and 67: The Texas Consortium also requested
Page 68 and 69: Accreditation Council for Graduate
Page 70 and 71: $581.8 Million Funding Cap Breakdow
Page 72 and 73: • Tom Thornton - President, Illin
Page 74 and 75: divine interVentures’ Bankruptcy
Page 76 and 77: Sullivan indicated that everything
Page 78 and 79: On January 11, 2011, Mr. Coburn ind
Page 80 and 81: CHANGE OF EMPLOYMENT STATUS OF CFO/
Page 82 and 83: Ethics Investigation Regarding Clay
Page 84 and 85: As a result of the possible violati
Page 86 and 87: large enough to meet KSU’s needs
Page 88 and 89: On January 9, 2007, KBA’s BOD aut
Page 90 and 91: The Kansas City Area Life Science I
Page 92 and 93: The committee that reviewed the arc
Page 94 and 95: Monthly payments for Series 2009A a
Page 96 and 97:
If KBA is able to maintain the abov
Page 98 and 99:
Debt Service Payments Debt service
Page 100 and 101:
• assisting KBA with understandin
Page 102 and 103:
Business Development: HBV has a net
Page 104 and 105:
Beginning in August 2009, Ryan Whit
Page 106 and 107:
offered by KBA and the federal gove
Page 108 and 109:
On June 8, 2010, ICM announced that
Page 110 and 111:
However, the EarCheck product langu
Page 112 and 113:
Furthermore, HBV Director of Commer
Page 114 and 115:
industry dating back to Marion Labo
Page 116 and 117:
Kansas’ #5 Ranking in Top 10 Stat
Page 118 and 119:
merger, acquisition or other restru
Page 120 and 121:
In summary, it appears that Lindsay
Page 122 and 123:
Allegations have been made that the
Page 124 and 125:
and interview. As previously stated
Page 126 and 127:
Computer Solutions’ invoice detai
Page 128 and 129:
After the RFQ evaluation, Ennis Knu
Page 130 and 131:
venture firms that will co-invest a
Page 132 and 133:
include only those guests determine
Page 134 and 135:
management of KBA-owned facilities
Page 136 and 137:
Audit. After additional requests of
Page 138 and 139:
Mr. Eisenbrandt, Thornton’s attor
Page 140 and 141:
Ms. LoScalzo further recalled that
Page 142 and 143:
Based on these findings, Buck Consu
Page 144 and 145:
In addition to base compensation an
Page 146 and 147:
Tom Thornton Overpaid Car Allowance
Page 148 and 149:
The following expenses are discusse
Page 150 and 151:
either version, contradictory to po
Page 152 and 153:
KBA Meeting Expenses In general, wi
Page 154 and 155:
Furthermore, the required supportin
Page 156 and 157:
Jan Katterhenry was reimbursed twic
Page 158 and 159:
The agreements state that Akin Gump
Page 160 and 161:
Midwest Research Institute Midwest
Page 162 and 163:
Mr. Bret Healy Mr. Healy was origin
Page 164 and 165:
Ennis Knupp & Associates, Inc. KBA
Page 166 and 167:
Cedar Creek Development VI, LLC Ced
Page 168 and 169:
approval. The executive staff will
Page 170 and 171:
General Ledger Classification Gener
Page 172 and 173:
Additionally, KBA’s BOD approved
Page 174 and 175:
Subsequently, on April 4, 2011, KBA
Page 176 and 177:
Cary Nourie Tom Thornton worked wit
Page 178 and 179:
Tom Churchwell Tom Thornton sat on
Page 180 and 181:
KBA’s Response: KBA management wi
Page 182 and 183:
member of KansasBio since 2006. Mem
Page 184 and 185:
statements, capital charts and payr
Page 186 and 187:
Recommendation: The BOD should cons
Page 188 and 189:
RELATIONSHIP APPENDIX 151
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
Page 198 and 199:
Page 200 and 201:
Page 202 and 203:
Page 204 and 205:
KU Center for Research, Inc. Associ
Page 206 and 207:
Page 208 and 209:
Page 210 and 211:
Page 212 and 213:
Page 214 and 215:
Page 216 and 217:
Page 218 and 219:
Page 220 and 221:
Page 222 and 223:
Page 224 and 225:
Page 226 and 227:
Page 228 and 229:
Page 230 and 231:
Page 232 and 233:
Page 234 and 235:
Page 239 and 240:
APPENDIX B
Page 241 and 242:
Two specific software programs were
Page 243 and 244:
used to remove data from a system i
Page 245 and 246:
Temporary Internet Files and Cookie
Page 247 and 248:
EXHIBIT 1 CCleaner Product Informat
Page 250 and 251:
EXHIBIT 2 Microsoft Word Files from
Page 252 and 253:
Thursday, April 14, 2011 Gov. John
Page 254 and 255:
Kansas Bioscience Authority applaud
Page 256 and 257:
Transition plan.docx
Page 258 and 259:
Personnel Director of Marketing and
Page 261:
EXHIBIT 4 Archive.PST Folder Schema
Page 264 and 265:
Thornton Laptop Windows Shortcut Fi
Page 266 and 267:
Page 268 and 269:
Page 270 and 271:
Page 272 and 273:
Page 274 and 275:
Page 276 and 277:
Page 278 and 279:
Page 280 and 281:
Page 282 and 283:
Page 284 and 285:
Page 286 and 287:
Page 288 and 289:
USBStor ControlSet001\Enum\USBStor
Page 290 and 291:
EXHIBIT 8 Windows Shortcut Files Po
Page 292 and 293:
Page 294 and 295:
Page 296 and 297:
Page 395 and 396:
APPENDIX F
Page 397:
600 BKD Professional Hours through
show all

Complete 2012 forensic audit documents - Kansas Bioscience ...

Create successful ePaper yourself

Delete template?

Save as template?