The N.C. Department of Health and Human Services on Friday ordered a nonprofit led by Lt. Gov. Mark Robinson’s wife to repay $132,000 in federal funding following a scathing review.
Yolanda Hill has led a nonprofit called Balanced Nutrition that helps child care facilities apply for and receive federal funding for kids’ meals. Mark Robinson and the couple’s son and daughter have worked as employees of the Greensboro nonprofit; he wrote in his book that Hill's success with the nonprofit allowed him to quit his job and move into politics. Hill abruptly closed the nonprofit in April after the state agency launched its review.
Earlier this week, DHHS officials declared the nonprofit “seriously deficient” after its review found a long list of missing documents required to administer the program, as well as claims filed for payment for centers that apparently hadn't requested or received money.
Friday’s letter tallies up Balanced Nutrition’s improper claims for payment from the federal food program, which includes excessive administrative costs as well as improperly documented purchases of food.
“The full disallowance owed by Balanced Nutrition, Inc. to the State agency is $132,118.86,” the letter from DHHS said. “Please note, disallowances are separate from the Notice of Serious Deficiency, which requires documentation of the proposed corrective action within the time frame specified in the Notice of Serious Deficiency.”
The total only includes the childcare centers and selected months that were part of the compliance review, so it’s possible the repayment figure could grow if DHHS expands the scope of its review in the future.
On Monday, Robinson campaign spokesman Mike Lonergan issued a statement criticizing the state agency's action as "politically motivated."
"Last year, an independent auditor issued a report on Balanced Nutrition, Inc. (BNI) with no material findings," Lonergan said. "Yet as soon as Mark Robinson announced his campaign for governor in April 2023, the Democrat-run state agency started moving the goalposts. Just as they are doing against President Trump, Democrats are weaponizing the bureaucracy to grind a political ax against their opponents."
Lonergan says the nonprofit plans to appeal, but didn't give specific about which of the DHHS findings it "vehemently disagrees" with.
The total request for repayment to DHHS includes more than $32,000 in improper billing for administrative costs.
A previously released DHHS record that reviewed Balanced Nutrition noted that the nonprofit wasn’t in compliance with a program requirement that administrative costs, such as staff salaries, can’t exceed 15% of overall funding.
One of the administrative costs that may have contributed to that issue: Hill’s salary was about $140,000 per year as of last year — a major increase from the $71,000 salary she was paid in 2019, according to the group’s budget documents.
Those budget documents DHHS provided were signed by Hill and either Kimberly Cephas — the Robinsons' daughter — or Danzeto Cephas — their son-in-law, who has served on the nonprofit's board of directors.
DHHS’ latest review said Balanced Nutrition violated program regulations by employing Kimberly Cephas without disclosing that she was Hill’s daughter. The program requires DHHS to approve those types of hiring moves.
The repayment figure also includes about $6,000 in improper food costs. The agency review found inadequate documentation for some food purchases and some purchases of items that weren’t allowed for the childcare food program, such as Wrigley’s chewing gum and Gatorade.
Friday’s letter notes that Hill and her attorney did not respond when DHHS tried to schedule a meeting to discuss the findings.
"The State agency has made multiple attempts to schedule an in-person exit conference, by email, telephone, and written communication, with no response," the letter said. The earlier finding of “serious deficiency” gives Balanced Nutrition two weeks to submit a plan of corrective action.
Robinson was absent from this week's Donald Trump rally in Charlotte where other North Carolina Republican candidates gave opening speeches; he posted on social media about the absence but didn't say why he was unable to attend.
While Lt. Gov. Robinson wasn't able to attend tonight's rally with President Trump, the Lt. Governor has proudly campaigned with President Trump already this election and will be proud to campaign with him here again in the coming weeks and months.
— Mark Robinson (@markrobinsonNC) July 25, 2024
What happens next?
A DHHS spokeswoman provided more details Friday about the possible next steps in the process. She says Balanced Nutrition "has 15 days from the date of receipt of notice to request an informal review or an appeal."
If no request is made, DHHS would then send a "Demand for Repayment letter with formal instructions on repayment" that would need to be paid within 30 days. After that, the amount owed would begin accruing interest and could be sent to a collections agency.
Asked about the prospects for further legal action, the DHHS spokesperson said "the United States Department of Agriculture, Food and Nutrition Service (FNS) and the Office of the Inspector General (OIG) may make investigations at the request of the state agency, or whenever FNS or OIG determines that investigations are appropriate."
