Complete 2012 forensic audit documents - Kansas Bioscience ...

Through June 30, 2011, three CBRI awards had been approved for funding in the amount of
$2,546,917. Through June 30, 2011, $1,723,000 had been paid. Please refer to Exhibit 11 for a
listing of the CBRI awards.
Kansas Bioscience Drug Development Program
The Kansas Bioscience Drug Development program supports relatively late-stage drug
development projects that have a clear focus on commercialization (as opposed to early-stage
research). The program funds only projects to advance products that are close to a regulatory
filing.
Kansas universities with pharmaceutical research programs are eligible to apply. Because the
state has strong assets in drug research and development, projects that involve collaborations to
combine those assets in new ways likely to drive innovation will be strongly preferred. Projects
that promote interactions among academic institutions, other nonprofit enterprises and industry
will be preferred, as will projects that attract collaborators from outside Kansas who bring
expertise or other resources not now available in Kansas or from whom KBA’s investment will
leverage additional project funding.
Individual awards under this program shall not exceed $500,000 a year nor have durations longer
than two years.
Through June 30, 2011, one Drug Development award has been approved for funding in the
amount of $500,000. Through June 30, 2011, no funds have been paid. Please refer to Exhibit
12 for a listing of the Drug Development award.
Proof of Concept Investment Program
The Proof of Concept Investment program (“POCI”) is a by invitation only program structured to
provide early stage “seed” financing to selected HBV clients. The purpose of the POCI program
is to allow HBV to further assist its clients in the development of their technology and business
concepts in order to reduce the uncertainty and risk of the technology, and to help bridge the gap
between basic research funding and the next stage of outside investment.
POCI awards are restricted to HBV clients and range from $25,000 to $200,000. Investment
Recommendations for funding greater than $75,000 are evaluated and approved by KBA’s
Investment Committee. POCI awards less than $75,000 must be approved by each of 1) the
President of HBV, 2) the CFO and 3) the CEO/President of KBA, and a formal written
Investment Recommendation must be sent to the Investment Committee. If any Investment
Committee member objects to a proposal approved by KBA management within five days of
receipt of the written recommendation, the proposal must go to the Investment Committee for
approval before an award can be made. Investments over $75,000 must be approved by the
Investment Committee and BOD under the normal investment approval process, as must all
follow-on investments.
Through June 30, 2011, 13 POCI awards have been approved for funding in the amount of
$1,500,000. Through June 30, 2011, $716,198 had been paid. Please refer to Exhibit 13 for a
listing of the POCI awards. The POCI program has been budgeted for an additional $1,000,000
in commitments in FY2012.
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