Topeka — Gov. Sam Brownback's administration insisted on expanding the scope of a forensic audit into the Kansas Bioscience Authority's activities and specified what areas should be examined, an exchange of documents between the auditor and the governor's administration show.
The documents, including letters from Agriculture Secretary Dale Rodman to auditors and KBA board chairman Dan Watkins, show that investigators were asked to probe how the authority was making its investments, potential conflicts of interest, personnel decisions and how job creation figures were determined. The KBA's purpose is to distribute millions in state tax dollars to emerging bioscience companies.
In the audit released Monday, the most serious allegations questioned the management and spending of former president and CEO Tom Thornton, who resigned last April. The audit cost the authority $960,000 and resulted in the return of about $4,700 in authority funds that Thornton received for an airline ticket to Ohio, purchase of an oil painting and overpayment for a car allowance.
The audit also raised questions about the appropriateness of payments on small contracts to vendors, many stemming from the organization of the authority starting in 2004.
But auditors from BKD Forensics and Valuation Services largely found that the KBA's investment practices were sound and that there were not clear violations of conflict of interest policies. Legislators were getting their chance to ask questions about the audit, as Watkins and the auditors were testifying Wednesday before a joint hearing of Senate and House commerce committees, followed by Rodman on Thursday.
Sherriene Jones-Sontag, the governor's spokeswoman, said the administration was adamant from the beginning that a "thorough forensic audit" be performed.
"It was very narrow in scope and we worked with them to broaden it," she said. "It's not untypical for an audit to start with a focus on this and then to be broadened as information becomes known and different things need to be added to the scope."
The audit was announced April 11 and Thornton resigned two days later. The initial scope covered KBA expenditures dating to 2004, including personnel and contracts, potential conflicts of interest by its staff and its board of directors related to awarding funding and alleged funding of projects outside the state that violate statutes establishing the authority.
It also mandated that Brownback's "representative" would approve the conclusions of the audit before it was made public.
Rodman asked auditors in October answer additional questions about Thornton's business relationships, how he was hired by the KBA, claims that the organization created 1,195 jobs and any conflicts of interest by its board members or employees.
In December, Rodman wrote to Watkins in response to the KBA's release of its investment outcomes, saying it "appears overly inflated by errors and inconsistencies that paint a picture that does not seem borne out by the facts." He also raised questions about the authority's expenses, including $18 million spent on offices in Olathe.
"The administration is very concerned about these issues and would encourage the management and board of directors of the KBA to address these issues even before the forensic audit is released," Rodman wrote.
Auditors found instances of document destruction, misuse of funds and questionable management by Thornton, who is now employed by the Cleveland Clinic in Ohio. Thornton has not returned repeated messages since Monday seeking comment.
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IgnorantYokel (anonymous) says…
Deserves repeating.
"The audit cost the authority $960,000 and resulted in the return of about $4,700 in authority funds..."
AlfVenison (Alf Venison) says…
Wow, quite a return on investment. Perhaps we need to audit the audit.
cowboy (anonymous) says…
A million dollar boondoggle audit complete with preconceived outcomes that didn't materialize.No one in any private company gets to approve audit conclusions , they are what they are.
The guy actually married his assistant. One would think ole savior posin Sam would have thrown him a party.
Looks to me like Sam owes the citizens of Kansas roughly 955,000 dollars for this complete and utter waste of taxpayer dollars.
Gotta believe Sam is from a farm cuz everything he touches turns to poo.
Number_1_Grandma (anonymous) says…
"Thank you sir, may I have another one, please!" ...Animal House
"The audit cost the authority $960,000 and resulted in the return of about $4,700 in authority funds that Thornton received for an airline ticket to Ohio, purchase of an oil painting and overpayment for a car allowance."
Is there anything else we can have the Governor do for us Kansan's?
George_Braziller (anonymous) says…
Interesting that a "representative" would have to approve the findings first. There might have to be some spinning of the details before the're made public.
___________________________
"It also mandated that Brownback's "representative" would approve the conclusions of the audit before it was made public."
acornwebworks (Kendall Simmons) replies…
Yup. That bothered me, too.
markoo (anonymous) replies…
Exactly. Sounds a bit more like Big Brother Brownback, once again. Checking tweets for negative criticisms by teenagers, now mandating approval of the information before it goes public.
Gosh, and I thought Republicans were all about less government and oversight. Funny that....
Crazy_Larry (anonymous) replies…
And the beat goes on. www.youtube.com/watch?v=I5YeIiLkhnc#t...
Bob_Keeshan (anonymous) says…
Funny, first the Brownback people were claiming BKD was not an independent auditor.
Then, they went out of their way to prove their own argument by refusing to allow BKD to act as an independent auditor.
Brilliant plan! Pretty typical of the heavy handed ways of Il Marrone and his band of partisans.
bevy (anonymous) says…
So, I want to know as a taxpayer, which of Sam's friends owns BKD? Was this audit that cost nearly a million awarded through a contract bidding process? Something stinks.
Cappy (anonymous) says…
Time to audit/investigate the governor's office. This could be the pretense for a recall, don't you think?
tolawdjk (anonymous) says…
$204.25 spent for every dollar recovered.
Seems fiscally responsible to me.
I'm sure Boeing will higher a few people in Wichita to make up the lost tax dollars.
wissmo (anonymous) says…
Ever think of how much it costs to bring a wrecked yuppie boat out of a Kansas Lake? You know the kind, big search, many support vehicles, skin divers, county mounties, local poooooleeece.
How about pulling a malnourished granola chewing modern man yuppie out of a National Park? Not heard any complaints on the + million bucko rescues there.
Hey, they found a government worker not thinking it was wrong to use taxpayer money to travel. Pay me now, or pay me later. Good accounting makes thieves think twice.
Bob_Keeshan (anonymous) replies…
Let's see -- things that are part of the mission and budget of an agency, things that are part of the mission and budget of the agency, and a $1 million one time audit that discovered a worker who basically got fired needed to pay back $4,700.
Yeah, that's an apt comparison.
wissmo (anonymous) says…
My o my, we are still paying for the KU hoops ticket scandal and we have libs saying trust the cash to anyone.
acornwebworks (Kendall Simmons) replies…
What "libs" are saying that??? Heck, what does it even mean???
wissmo (anonymous) replies…
Think very carefully Acorn, If the people (us) do not check government agencies then things like the KU Ticket scandal happens. Now Think very carefully Acorn, If the people (us) do not check government agencies then things like the KU Ticket scandal happens.
Would you like to read this again?
markoo (anonymous) replies…
Umm, you answered nothing. The confusion in your statement is the following:
"we have libs saying trust the cash to anyone."
Who's saying this exactly, especially in regards to the ticket scandal? What liberals? Please be specific.
wissmo (anonymous) replies…
acorn, no try not to drool. please read the following without belief in the thought KU Athletics are not a taxpayer funded enterprise.
TheSychophant (anonymous) says…
Money is tight, Brownback is nickel and diming programs that actually benefit people for a few thousand dollars, and he goes out and spends around a million dollars, all for nothing.
Another major face plant for the Brownback administration. Seems Brownback is turning out a new embarrassment each and every week.
A worthless man and an inept governor.
wissmo (anonymous) replies…
Yep, which is why everywhere except tax money dependent Lawrence is flourishing. Move to Salina, or KC,KS, watch growth.
TheSychophant (anonymous) replies…
So, I take it, Wis, that you have no problem with spending a cool million to recoup less than five grand. l
jafs (anonymous) replies…
But, I have no interest in living in either of those cities, thank you.
just_another_bozo_on_this_bus (anonymous) says…
The fox got caught casing the henhouse.
BethLeonard (anonymous) says…
Kansas is getting hood-wicked by Brownback and Wagle. Who are the people Kansas should really be investigating ...? Brownback and Wagle. Under Tom Thornton's leadership, KBA investments helped make $212.6 million in capital expenditures, $86.6 million in new research funding; and $48.3 million in equity investments. Plus, KBA investments have yielded a $9.41 return to the state's economy for each $1.00 invested. Doesn't seem like Tom Thornton is the person to be worried about here. Further in 2010 Business Facilities magazine ranked Kansas the fifth most exciting bioscience economy in the nation. Well done Kansas and KBA! But thanks to Brownback that has dropped significantly.