Kentucky Science and Technology Corp

Nonprofit profile at a glance

EIN
611135362
IRS 990 coverage
2009–2022
Forms available
Form 990 2022, Form 990-T 2022
Location
Lexington, KY, USA
Phone
8592333502
Rating
81
Verdict
STRONG
Rating confidence
Moderate

Official website

Reported finances

Revenue
$7,233,929
Expenses
$7,497,370
Assets
$23,675,490
Liabilities
$22,708,201

Source: IRS Form 990. Selected filing: tax year 2022. Amounts in USD.

Leadership & pay

29 people listed

Executive titles in this filing

  • FT SAMUEL JR (PRESIDENT)
  • MARIA LABREVEUX (EXECUTIVE DIRECTOR)
  • ANTHONY MIRES (EXECUTIVE DIRECTOR)
  • KELBY PRICE (EXECUTIVE DIRECTOR)
  • NANCY BROWN (EXECUTIVE DIRECTOR)
  • LISA BAJORINAS (EXECUTIVE DIRECTOR)

Highest reported compensation

  • FT SAMUEL JR (PRESIDENT): $258,478 total reported compensation
  • STEVE PELPHREY (CHIEF FINANCIAL OFFICER): $176,256 total reported compensation
  • ANTHONY MIRES (EXECUTIVE DIRECTOR): $171,246 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2022. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Kentucky science and technology corporation (kstc) is an entrepreneurial company dedicated to enhancing the capacity of people, companies and organizations to develop and apply science and technology and compete responsibly in the global marketplace. Kstc's strategies are to; 1)develop a comprehensive innovation strategy that brings together business, government and education as full partners to leverage the best opportunities for Kentucky's future. 2)contribute to the creation of entrepreneurial companies, jobs and the international competitiveness of Kentucky's economy. 3)promote technology development and transfer an innovative mind-set conducive to entrepreneurial development. 4)develop a more systematic approach by which all levels of education (primary through university) contribute to Kentucky innovations.

What it reported doing in 2022

Economic development programsthe knowledge-based economy (kbe) funds are a series of investment funds aimed at promoting and capitalizing early-stage technology commercialization in the commonwealth of Kentucky. Kbe was administered by kstc and funded by the state through a contract with the council on postsecondary education. The funds were dedicated to increasing the number of high technology companies and products in Kentucky. Components of this program included the Kentucky enterprise fund program, the rural innovation program, and the Kentucky commercialization program. In april of 2018 Kentucky's legislature transferred the funding and administration of these programs from the council of postsecondary education (cpe) to the cabinet for economic development (ced) for the biennium beginning july 1, 2018. In may, 2020, ced and kstc entered a contract to administer the kbe program and continue making investments in early-stage Kentucky companies under the kbe programs.the procurement and technical assistance (ptac) program is funded by the defense logistics agency (dla) office of small business. Ptac's objective is to work in cooperation with states, local governments and both profit and nonprofit organizations to expand the number of businesses capable of participating in government contracts. The ptac program also receives financial support from ced and an appalachian regional commission (arc) power grant administered through the non-profit organization, southeast Kentucky economic development ("sked"). Its purpose is to provide technical assistance to manufacturers and other businesses seeking to improve their profitability through innovation and more efficient operation.Kentucky alternative fuel & renewable energy fund program (afre) was funded by the commonwealth of Kentucky for kstc to administer the Kentucky alternative fuel & renewable energy fund program. The purpose of the program was to accelerate knowledge transfer and technological innovation, improve economic competitiveness and economic growth of kentuckybased companies, and to support r & d activities that have a clear potential to lead to commercially successful products, processes, or services specifically in the area of alternative fuels or renewable energy. The program was terminated under krs 154.20-410 on july 1, 2022. On december 7, 2022, per the statue, all funds, grants, investments, unallocated or unencumbered balances, rights, contractual rights and obligations, and earned income, including $362,660, were transferred to the Kentucky enterprise fund.lt. Governor's entrepreneurial challenge (lgec) is funded through a combination of state government grants and private sector donations. It is a tiered business pitch competition for all Kentucky high school students grades 9-12. It is intended to introduce students to a realistic competitive business environment, as well as promote business ownership and lifelong learning. In august 2019, kstc entered into an agreement with the lieutenant governor's office to administer all remaining awards for the 2017, 2018 and 2019 lgec programs.

Operating model

Revenue model
Grant-funded. 92% of the money available for current operations came from government grants.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

STRONG - A large share of available resources goes toward mission work and the filed numbers largely add up. Program spending has declined or grown slowly and revenue has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 88
  • Transparency & Controls: 79
  • Accountability: 95
  • Sustainability: 35
  • Growth: 20

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 90.4%; rating input score 90
  • Program expense ratio: 87.3%; rating input score 87
  • Fundraising efficiency: $52.81 raised per $1 spent on fundraising; rating input score 78; 78th percentile among comparable filings

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: 3 of 6 controls in place; rating input score 50
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Pass
    • Written employment contract: Missing
    • Compensation survey or study: Pass
    • Board or committee approval: Pass
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 64th percentile among comparable filings
  • Governance controls: 8 of 9 controls in place; rating input score 89
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: Pass
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -3.6%; rating input score 23; 23rd percentile among comparable filings
  • Total-asset coverage ratio: 3.16; rating input score 76; 76th percentile among comparable filings
  • Liabilities to assets ratio: 0.96; rating input score 6; 6th percentile among comparable filings
  • Officer compensation ratio: 22%; rating input score 9; 9th percentile among comparable filings

Growth

  • Program expense growth: -14.6% per year; rating input score 0; 2nd percentile among comparable filings
  • Revenue growth: -8.8% per year; rating input score 0; 2nd percentile among comparable filings
  • Asset growth: 1% per year; rating input score 100; 18th percentile among comparable filings

Details

  • Where the money goes: 90.4% of revenue deployed · 87.3% of spending went to programs
  • Governance: 18 of 18 board members independent · 8 of 9 filing controls reported
  • Programs: 4 filed program accomplishments · $6.5M in reported program spending
  • Leadership: top reported pay $258K · 29 people listed · 3 of 6 pay-setting controls reported
  • Consistency: 30 of 30 current checks pass
  • Schedules: 7 filed schedules · includes major donors and executive pay
  • Filing history: 12 filing years from 2009 to 2022
  • Contacts: How to reach this organization
  • Money network: 11 filed money-flow records
  • Related organizations: 3 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Operating margin scored 23/100.
  • Review — Accountability: Governance controls: Whistleblower policy not reported.
  • High — Sustainability: Liabilities to assets ratio scored 6/100.
  • High — Sustainability: Officer compensation ratio scored 9/100.