Complete 2012 forensic audit documents - Kansas Bioscience ...

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If KBA is able to maintain the above modified plan level of increases, they project to be at the targeted 75% by the end of the fiscal year. Per discussions with KBA staff, there are currently ongoing discussions with three different potential tenants. One tenant they expect will be brought before KBA’s Review Committee for approval early next quarter. If all prospective companies become tenants, KBA will reach its target occupancy for the current fiscal year. Current Tenants KBA currently has six tenants, for a monthly income of $8,300.25. KBA staff indicates that tenants will likely stay at the Venture Accelerator for two to three years. Once a tenant is exiting the start-up phase and ready to relocate, KBA is in a good position to help facilitate building or leasing part of a building in the KBP. Current tenants include Expedite, LLC; Novita Therapeutics, LLC; GreenTree Technology Partners; Agrilytics, LLC; Pasture USA, LLC and Epic Medical Concepts & Innovations, Inc. Tenant Break-Even Point Considering only expenses related to tenant occupancy, KBA had budgeted that by year five they will be breaking even on their operating costs for the tenant space. 47 Below is a summary of the budgeted revenues and budgeted operating costs. This does not include operating costs for KBA offices. Year 1 Year 2 Year 3 Year 4 Year 5 FY2011 FY2012 FY2013 FY2014 FY2015 Budgeted Tenant Revenue $ 23,201 $279,045 $329,712 $342,501 $355,710 Utilities 3,040 66,880 68,552 70,266 72,022 Service Contract 11,692 69,256 70,987 72,762 74,581 Office Expense & Supplies 928 10,584 12,216 12,536 12,536 Property Insurance 2,560 10,240 10,496 10,758 11,027 Staff Salaries/Benefits 65,283 96,798 104,406 109,671 115,206 Dues/Memberships 336 336 656 656 656 Meetings/Travel 5,120 5,120 5,120 5,120 5,120 Marketing Services 83,200 52,480 52,480 52,480 52,480 Property Tax Special Assessment - 9,318 9,121 8,923 8,737 172,159 321,012 334,034 343,172 352,365 Budgeted Cash Reserve(Loss) $(148,958) $ (41,967) $ (4,322) $ (671) $ 3,345 47 Kansas Bioscience Park Venture Accelerator Business Plan, Section 5 - Financing Model. 60
Updating the model from the Kansas Bioscience Park Venture Accelerator Business Plan for the actual tenant revenue from FY2011, and the updated budget for FY2012, the losses in the first two fiscal years are more substantial than the initial estimates. Year 1 Year 2 FY2011 FY2012 Tenant Revenue $ 4,534 $ 181,200 Utilities 3,040 66,880 Service Contract 11,692 69,256 Office Expense & Supplies 928 10,584 Property Insurance 2,560 10,240 Staff Salaries/Benefits 65,283 96,798 Dues/Memberships 336 336 Meetings/Travel 5,120 5,120 Marketing Services 83,200 52,480 Property Tax Special Assessment - 9,318 172,159 321,012 Budgeted Cash Reserve/(Loss) $(167,625) $(139,812) Total Venture Accelerator Operating Budget The Total Venture Accelerator Operating Budget shows losses per year averaging around $200,000 for the first five years. The office space that KBA leased from Cedar Creek Development VI, LLC was at $13,016 per month or approximately $156,000 per year, assuming no price increase. Therefore, the cost of operating the Venture Accelerator, as opposed to leasing office space, at budgeted capacity, is approximately $50,000 more per year. Below is the operating budget for KBA space as well as tenant space. Year 1 Year 2 Year 3 Year 4 Year 5 FY2011 FY2012 FY2013 FY2014 FY2015 Budgeted Tenant Revenue $ 23,201 $ 279,045 $ 329,712 $ 342,501 $ 355,710 Utilities 4,750 104,500 107,113 109,790 112,535 Service Contract 16,300 96,400 98,810 101,280 103,812 Office Expense & Supplies 1,288 15,564 18,114 18,614 18,614 Property Insurance 4,000 16,000 16,400 16,810 17,230 Staff Salaries/Benefits 102,005 151,247 163,134 171,361 180,010 Dues/Memberships 525 525 1,025 1,025 1,025 Meetings/Travel 8,000 8,000 8,000 8,000 8,000 Marketing Services 130,000 82,000 82,000 82,000 82,000 Property Tax Special Assessment - 14,560 14,268 13,976 13,685 266,868 488,796 508,864 522,856 536,911 Budgeted Cash Reserve(Loss) $ (243,667) $ (209,751) $ (179,152) $ (180,355) $ (181,201) 61
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KBA audit summary In meetings of th
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KBA Forensic Audit Summary Page 2 o
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KBA Forensic Audit Summary Page 10
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Table of Contents INTRODUCTION ....
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Other Employment Decision Allegatio
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have all provided information and i
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KBA again appeared before the Comme
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ENGAGEMENT APPROACH Interviews Inte
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• Kent Glasscock - President Nati
Page 46 and 47: Computer Forensics Computer hard dr
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 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
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Page 116 and 117: Kansas’ #5 Ranking in Top 10 Stat
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Page 120 and 121: In summary, it appears that Lindsay
Page 122 and 123: Allegations have been made that the
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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
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Tom Thornton Overpaid Car Allowance
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The following expenses are discusse
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either version, contradictory to po
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KBA Meeting Expenses In general, wi
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Furthermore, the required supportin
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Jan Katterhenry was reimbursed twic
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The agreements state that Akin Gump
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Midwest Research Institute Midwest
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Mr. Bret Healy Mr. Healy was origin
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Ennis Knupp & Associates, Inc. KBA
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Cedar Creek Development VI, LLC Ced
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approval. The executive staff will
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General Ledger Classification Gener
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Additionally, KBA’s BOD approved
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Subsequently, on April 4, 2011, KBA
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Cary Nourie Tom Thornton worked wit
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Tom Churchwell Tom Thornton sat on
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KBA’s Response: KBA management wi
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member of KansasBio since 2006. Mem
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statements, capital charts and payr
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Recommendation: The BOD should cons
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RELATIONSHIP APPENDIX 151
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KU Center for Research, Inc. Associ
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APPENDIX B
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Two specific software programs were
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used to remove data from a system i
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Temporary Internet Files and Cookie
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EXHIBIT 1 CCleaner Product Informat
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EXHIBIT 2 Microsoft Word Files from
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Thursday, April 14, 2011 Gov. John
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Kansas Bioscience Authority applaud
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Transition plan.docx
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Personnel Director of Marketing and
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EXHIBIT 4 Archive.PST Folder Schema
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Thornton Laptop Windows Shortcut Fi
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USBStor ControlSet001\Enum\USBStor
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EXHIBIT 8 Windows Shortcut Files Po
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APPENDIX F
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600 BKD Professional Hours through
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