N.C. Says Nonprofit Run By Lt. Gov’s Wife Owes $132K

(Andrew Harnik / Getty Images)

North Carolina state regulators declared a nonprofit run by the wife of Republican Lt. Gov. Mark Robinson must repay more than $132,000 for what they called disallowed expenses while managing a federally funded childcare meal program.

The state Department of Health and Human Services revealed a larger amount in a Friday letter to Yolanda Hill following a compliance review of Balanced Nutrition Inc., for which Hill is listed as owner and chief financial officer. Robinson, who is the Republican nominee for governor this fall, worked in the nonprofit years ago before running for elected office, according to his memoir.

Hill previously announced she was shutting down the nonprofit’s enterprise and withdrawing from the Child and Adult Care Food Program on April 30. But state officials had announced in March that the annual review of Balance Nutrition would begin April 15.

The review’s findings, released Wednesday, cited new and repeat problems, including lax paperwork and the failure to file valid claims on behalf of child care operators or to report expenses accurately. The program told Hill and other leaders to soon take corrective action on the “serious deficiencies” or regulators would propose they be disqualified from future program participation.

The state health department said Thursday the nonprofit also owed the state $24,400 in unverified expenses reimbursed to several childcare providers or homes examined by regulators in the review.

But Friday’s letter counted another $107,719 in ineligible claims or expenses that the state said was generated while Balanced Nutrition performed administrative and operating activities as a program sponsor during the first three months of the year. Forms signed by regulators attributed more than $80,000 of these disallowed costs to “administrative labor” or “operating labor.” The records didn’t provide details about the labor costs.

This week’s compliance review said Balanced Nutrition should have disclosed and received approval from the program that Hill’s daughter was working for the nonprofit.

The owed amounts and proposed program disqualification can be appealed. An attorney representing Balanced Nutrition and Hill did not immediately respond to an email Friday seeking comment.

The attorney, Tyler Brooks, previously questioned the review’s timing, alleging Balanced Nutrition was being targeted because Hill is Robinson’s wife, and that “political bias” tainted the compliance review process. Program leaders, meanwhile, have described in written correspondence difficulties in obtaining documents and meeting with Balanced Nutrition leaders.

The health department is run by Democrat Gov. Roy Cooper’s administration. He was term-limited from seeking reelection. Democrat Attorney General Josh Stein is running against Robinson for governor.

Balanced Nutrition helped childcare centers and homes qualify to participate in the free- and reduced-meal program, filed claims for centers to get reimbursed for meals for enrollees and ensured the centers remained in compliance with program requirements. The nonprofit received a portion of the center’s reimbursement for its services.

Balanced Nutrition, funded by taxpayers, has collected roughly $7 million in government funding since 2017, while paying out at least $830,000 in salaries to Hill, Robinson and other members of their family, tax filings and state documents showed.

Robinson described in his memoir how the operation brought fiscal stability to his family, giving him the ability to quit a furniture manufacturing job in 2018 and begin a career in politics.