BANGOR, Maine — Manna Ministries, the substance abuse treatment nonprofit under scrutiny for mismanagement, again failed to file its annual report with the Maine Bureau of Corporations by the mandatory June 1 deadline.
This marked the sixth consecutive year the beleaguered nonprofit failed to file this mandatory report to preserve its standing as a corporation, called a charter, even though Manna only had its charter restored as recently as last month.
Executive Director Bill Rae said Friday in a phone call with the Bangor Daily News that he hadn’t gotten around to filling out the report, but that he planned to do so in the near future.
“We’ll get it out, we’ll get it done,” he said. About 30 minutes later, Rae called the BDN to report that he had submitted the forms. The Maine secretary of state’s office confirmed the report was filed, and updated Manna’s corporate status to “in good standing.”
This latest paperwork problem comes as Manna has shrunk significantly since May, laying off around 20 employees primarily associated with two faith-based addiction treatment programs. Its staff now consists of two people — Rae and a clinician who is working to phase out Manna’s outpatient services, according to Rae.
Manna closed the programs, Elijah’s House and Derek House, in late May in the wake of revelations of mismanagement on the part of the social service organization. Working with the Maine Department of Health and Human Services, Manna found new treatment programs for all 14 clients who were enrolled in the programs when they closed, Rae said.
The agency continues to operate a food pantry and kitchen. Rae said Friday he is cooking all Manna’s meals and was working on Manna’s garden to grow food to supply the kitchen. He said he was “trying to keep people fed.”
“We’re not stopping,” he added.
Manna’s troubles began after it was revealed in April that Manna owed $1.3 million to DHHS for mismanaging an addiction recovery clinic it operated in Medway and for Medicaid reimbursement overpayments it received.
Prior to this order, the state Bureau of Corporations had dissolved Manna’s corporate charter five times since 2011. Each time the charter dissolved and Manna stayed in operation, the agency violated the law, according to the state.
The IRS also revoked Manna’s federal nonprofit tax-exempt status in November 2013 because it had failed to file Form 990s for three straight years. Manna had its nonprofit status restored in October 2014 after going through the reinstatement process.
It’s not clear whether state agencies or other financial funders of Manna’s operations knew its nonprofit status had been lost during that period. DHHS has said that revelation wouldn’t have affected Manna’s funding because the contract with the organization was based on its role as a substance abuse treatment provider, not as a nonprofit.
Rae said Friday that Manna has caught up on its backlog with the IRS, and has filed returns for the missing 2013, 2014 and 2015 tax years.
Amid the financial struggles and oversight problems, Manna’s board of directors has been in flux. Two of the six people listed as board members in the agency’s 2015 annual report to the Maine secretary of state’s office told the BDN that they hadn’t been part of Manna’s board for a significant period of time.
Manna has not yet updated the list with the state because it is still working to reshape its board and bring in new members, according to Rae.
That board would “help us have better oversight,” he added.
BDN writer Nick Sambides Jr. contributed to this report.
Follow Nick McCrea on Twitter at @nmccrea213.