State finds ‘serious deficiencies’ at nonprofit run by Lt. Gov. Robinson’s wife

RALEIGH, N.C. (WNCN) — The North Carolina Department of Health and Human Services said on Wednesday it discovered several “serious deficiencies” with a non-profit organization run by Lt. Gov. Mark Robinson’s wife Yolanda Hill.

Documents released to CBS 17 as part of a records request show state health officials completed their compliance review of Balanced Nutrition without Hill being willing to participate in an exit conference.

Balanced Nutrition has served as a sponsoring organization under the federal Child and Adult Care Food Program, which the state Dept. of Health and Human Services administers in North Carolina. According to Balanced Nutrition’s website, the nonprofit helps adult and childcare providers navigate that program to get access to federal subsidies to provide food.

As CBS 17 reported earlier this year, Hill announced she was ending the nonprofit due to the demands of her husband’s campaign for governor. Documents show the state also was conducting its compliance review with the organization.

In emails between Hill and NCDHHS earlier this year, Hill said she felt Balanced Nutrition was “the target of some type of vendetta, be it personal or political.”

NCDHHS sent letters Wednesday regarding the notice of serious deficiency to Hill, operations manager Kimberly Cephas and board chair Renee Matthews-Jones.

“Due to the number and type of findings noted in the federal fiscal year 2023-2034 compliance review and the presences of repeal findings from the federal fiscal year 2022-2023 compliance review, the State agency has determined that Balanced Nutrition, Inc. is seriously deficient in its operation of the [Child and Adult Care Food Program],” one of the letters reads. “In addition, the State agency has identified Yolanda Hill, Kimberly Cephas, and Renee Matthews-Jones as responsible for the serious deficiencies as a result of their responsibility for the overall management of Balanced Nutrition, Inc. operations.”

State officials propose disqualifying Balanced Nutrition from participating in the program again, as well as Yolanda Hill, Kimberly Cephas and Renee Matthews-Jones. They noted issues in various areas including recordkeeping, fiscal integrity, civil rights, and monitoring among others.

The letter cites this example: “Balanced Nutrition, Inc. filed claims for Gingerbread Learning Center for February 2023, March 2023, June 2023, July 2023, August 2023, September 2023, October 2023, and February 2024, months that the facility reports not filing a claim with Balanced Nutrition, Inc. Documentation was not provided to illustrate the distribution of reimbursement from Balanced Nutrition, Inc. to Gingerbread Learning Center. During the on-site compliance review, Ms. Hill confirmed with the compliance team that Gingerbread Learning Center had not filed a claim since November 2022.”

CBS 17 has reached out to an attorney for Balanced Nutrition for comment.

As CBS 17 reported, Balanced Nutrition was placed on the state’s “Suspension of Funding” list on July 12, 2021. The reason cited was failing to submit reports to NCDHHS.

A spokesperson for NCDHHS confirmed that Balanced Nutrition was added to that list because it did not submit audit reports to the agency in 2019 and 2020. However, the nonprofit continued to receive funding.

“Although they are on the OSBM suspension of funding list, some federal food grant programs, such as CACFP, that serve children and adults cannot have funding suspended,” wrote NCDHHS spokesperson Hannah Jones in an email in May. “And while OSBM states suspended recipients should not have their contracts renewed if they remain suspended at the time of renewal, CACFP institutions have Permanent Agreements that do not operate on contract timelines with renewal options.”

The Assembly previously reported on the criticisms of Balanced Nutrition, including Hill raising her pay by $28,000 in 2020 after receiving a PPP loan for almost the same amount early in the pandemic. Across 2020 and 2021, Hill received a total of two PPP loans that added up to $57,000 and were forgiven, even as Balanced Nutrition reported its revenue increasing, the Assembly reported.

The only employees listed on Balanced Nutrition’s tax documents in recent years include Hill and her family members. Hill is listed as the chief financial officer.

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