The Klein Donation: Text of Stem Cell Agency’s Key Responses

By Dr. Matthew Watson

Here is the text of the key comments
from the California stem cell agency in response to questions from
the California Stem Cell Report (CSCR) concerning the $21,630
contribution by Robert Klein. Here is a link to the full story on the matter.

CSCR to CIRM:

“Is CIRM concerned about the
appearance created by the donation from Bob Klein to enable scientific
staff to attend the ISSCR meeting in Yokohoma, coming one
month after the GWG (the review group) rejected StemCells Inc's Alzheimer's application
and one month before the July Board meeting that led to the approval
of the award?”(Editor's note: It was actually two months before the board meeting.)

CIRM's response:

“No, the two items are entirely
separate with no connection. Item 1 involved Bob Klein making a
donation to allow science officers to attend a critically important
scientific meeting on stem cell research. The science officers
had originally planned on attending but then were told they
could not because of cuts in our out-of-state travel budget – Bob
Klein’s donation, without using state funds, enabled the science
officers to attend. Item 2 is an ICOC decision to fund a
research project that they felt had promise and was important for the
people of California.”

CSCR to CIRM:

"Please explain why the agency
could not finance the trip itself ."

CIRM's response:

"During the financial year 2011/12 the
Governor's Office issued an Executive Order requiring state agencies,
under the Governor's direct authority, to reduce out-of-state travel.
Although CIRM was not required to participate, we nevertheless
imposed restrictions on out-of-state travel to meet the intent/spirit
of the Governor's request. Accordingly, we made a decision to
reduce the number of our science staff who would be attending the
conference. Bob Klein's donation made it possible
for those staff to go."

CSCR asked several questions re the
failure to report the Klein donation to the board as required by
agency rules.

CIRM's response:

“Under the Gift Policy, the President
had the authority to accept Mr. Klein’s generous offer as a 'Direct
payment or reimbursement by third parties for the costs of general
operation or grant management administrative activities.' (Gift
Policy, Sec. III(A)(2).) Because CIRM receives gifts only
infrequently, CIRM staff determined that it would be more efficient
to report gifts to the Board on a semi-annual basis. Mr.
Klein’s donation was the first gift CIRM had received in some
years. Due to the lack of additional donations, a transition in
CIRM’s finance office, and an oversight, CIRM staff has not yet
presented a report including Mr. Klein’s gift. Staff plans to
report Mr. Klein’s gift as part of the finance report at the May
Board meeting. Because the President had the authority to
accept the gift pursuant to section III(A)(2) of the Gift Policy, it
did not require a commitment letter. (See Gift Policy, Sec.
III(C)(1) ['A Commitment Letter is not required for gifts described
under III.A.2., 3. and 4.'].) However, consistent with the
policy, Dr. Trounson sent Mr. Klein a letter of appreciation, a copy
of which we have already provided you.”