To get the policies copied: We can get the policies out of the backup made before the upgrade by following the steps below. Just to mention, we will not do a disaster recovery.
1) Install SEPM (preferably 12.1.4) on a temp machine (even windows XP or 7 would do) with a fresh database and complete the instsllation and the management server configuration wizard.
2) Once the installation is complete, restore the database backup made from the OLD-SEPM in to this TEMP-SEPM. Remember that you will have to create the folder "<SEPM-install-folder>\data\backup" and paste the backup file in to that folder and stop the SEPM service (NOT the embedded database service) and then perform a restore using the Backup/Restore wizard. You will need to run the "Management server configuration wizard" once after restoring the backup (Hope you remember the database password).
3) Once the above step is done, you can login to the TEMP-SEPM using the the credentials of the OLD-SEPM and export all the policies out of it, which can then be imported in to the NEW-SEPM.
To get the clients moved: The best way to get the client moved at this point would be by pushing the communication update package from the NEW-SEPM to the clients. You can even get the clients list from the TEMP-SEPM.