Agency doors closed

April 28, 2006

By MARY AMES

Frontiersman

WASILLA - The executive director of a local nonprofit agency with a mission dedicated to helping at-risk youth resigned April 20, leaving the organization itself at risk, with programs shut down, employees laid off and vacant seats on the board of directors.

The Office of Children's Service, one source of funding for Kids Are People, asked the nonprofit to voluntarily suspend grant programs that the state funds or licenses for 60 days, according to Bill Hogan, deputy commissioner of Health and Social Services.

&#8220The problems have been going on for a couple of months; we just got involved last Friday,” Hogan said.

Kids Are People had to close down its abstinence education, tobacco prevention, and runaway and homeless youth programs, and its Saxton Youth Shelter, he said.

&#8220It is a difficult situation for us,” Hogan said. &#8220We value the programs and services, which we want to continue, by them or some other agency.”

Ron McGill was the executive director, he said, and Linda Reimer stepped in as interim executive director.

No one answered the phone at Kids Are People April 20, 24 or 25. At deadline Thursday, Reimer called to say the five-member board would meet today and issue a statement.

United Way was another source of funding for Kids Are People. Michelle Bosau, executive director, said this is the time of year when United Way evaluates all its partner agencies to make funding decisions. United Way's board decided to postpone making a decision on Kids Are People, although the board didn't set a hard and fast date about when it would have to make one, she said.

&#8220Our biggest concern is services are not being provided,” Bosau said. &#8220We offered our help if they need to get back on track, just not with more money.”

Bosau said the lines of communication between United Way and Kids Are People remain open.

Hogan said OCS had accountants look at the books, and while he didn't have the total budget amount, as of April 21, the agency had about $35,000 for the fiscal year that ends June 30. He said Kids Are People indicated there was about the same amount of money in what would be considered accounts receivable.

&#8220What I'm hearing is this is the result of mismanagement,” Hogan said. &#8220If we find improprieties, we would work through the Department of Law.”

Before OCS will reinstate funding, there needs to be some assurance there will be proper board oversight and the executive director has proper control, he said.

&#8220A good number for a non-profit board is about nine,” he said. &#8220They are down to about three or four.”

OCS will work with the nonprofit to help it get going again, he said.

&#8220It's a loss to the Valley,” he said. &#8220There's no emergency shelter for kids who might need to leave abusive or neglectful homes. There are no beds for residential care or the other important programs.”

Contact Mary Ames at

352-2284 or mary.ames@

frontiersman.com.