DHHS finds “serious deficiencies” in performance of nonprofit led by wife of Lt. Gov. Robinson

Featured photo: Lt. Gov. Mark Robinson addresses a crowd of more than 300 people at the Koury Convention Center on March 5, 2024, Primary Election Day, after results showed that he won the Republican primary for governor. Next to him stands his wife, Yolanda Hill. (photo by Maaroupi Sani)

This story was first published by Ahmed Jallow, NC Newsline
July 25, 2024

As a “sponsoring organization,” Balanced Nutrition Inc., a nonprofit led by Yolanda Hill, the wife of Lt. Gov. Mark Robinson, for several years helped childcare providers apply for and receive federal funding for kids’ meals under the federal Child and Adult Care Food Program, which is overseen by the North Carolina Department of Health and Human Services (DHHS).

The organization also filed monthly claims on behalf of providers to help the centers receive reimbursement for subsidized meals served to children enrolled in day care facilities.

However, according to a new DHHS audit summarized in a letter obtained by NC Newsline, Balanced Nutrition filed claims for one child care center, the Gingerbread Learning Center, for eight months between February and October 2023, and again in February 2024, even though the center did not submit a claim during those periods, suggesting that Balanced Nutrition improperly claimed reimbursement for meals that were not served.

DHHS said this was one of several “serious deficiencies” it has identified in Balanced Nutrition’s performance, including repeat violations like those from the 2023 audit previously reported by NC Newsline. These include failure to make valid meal claims, submitting claims for meals that didn’t meet CACFP nutritional standards, and failure to maintain accurate income eligibility applications for its sponsored facilities.

The letter also cited the nonprofit for failing to disclose arrangements with Hill’s family members.  “Balanced Nutrition, Inc. did not disclose to the State agency less-than-arm length transactions relatives related to Yolanda Hill,” the letter read. “Labor expenses were claimed for Kimberly Cephas, daughter of Yolanda Hill. Balanced Nutrition, Inc. did not disclose or receive approval from the State agency regarding the less-than-arm length transaction.”

The letter goes on to state that “Due to the number and type of findings noted in the Federal Fiscal Year 2023-2024 compliance review and the presences of repeat 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 CACFP.”

These findings come as Balanced Nutrition has refused multiple attempts by DHHS to schedule a routine exit conference as reported by NC Newsline last month, despite warnings by DHHS that it would issue a Notice of Serious Deficiency if Hill failed to respond.

DHHS on Wednesday sent the letter to Balanced Nutrition CEO Yolanda Hill, her daughter and operations manager Kimberly Cephas, and board chair Renee Matthews-Jones. The agency notified them of serious deficiencies and gave them 14 days to correct the problems.

The letter says the consequences for the nonprofit’s failures could include the disqualification of Balanced Nutrition from the Child and Adult Care Food Program. In addition, Hill, Cephas and Matthews-Jones could also face disqualification from participation in the program in the future and be placed on the National Disqualified List. While on the list, the three will not be able to “serve as a principal in any institution or facility or as a day care home provider in the CACFP,” according to the letter.

Earlier this year, Hill informed clients that she was shutting down her nonprofit because of her husband’s campaign for governor, as first reported by The Assembly, saying the demands of the campaign made it impossible for her to continue operating the nonprofit.

But WUNC and CBS17 later reported that Hill made the abrupt decision as the state was set to conduct a compliance review of her organization. She later claimed to WRAL that the DHHS was targeting Balanced Nutrition because of her husband.

Though Hill officially shut down Balanced Nutrition on April 30, she must still comply with DHHS demands because the agency had already scheduled a compliance review to begin two weeks prior to that date.

Other findings in the 2024 audit include failure to participate in program trainings conducted by DHHS on civil rights and other topics, and failure to accurately monitor facilities under its sponsorship.

Hill told WRAL in an interview earlier this year that her organization has been subjected to unwarranted scrutiny by DHHS due to its connection to her husband. She said that a DHHS employee had circulated Facebook photos of Hill with her husband to other DHHS employees to make them aware of the connection. Hill alleged the employee told colleagues that Hill had misled her about her husband’s identity.

WRAL reported that a DHHS spokesperson said the employee who purportedly shared the images was at one time in charge of reviewing Balanced Nutrition, but that the case was assigned to a different specialist in March 2023.

Robinson, who did extensive work for the nonprofit prior to the start of his political career, has also dismissed the scrutiny from DHHS officials as politically motivated. During a speech at the Republican National Convention last week in which he touted his campaign for governor, he pointed to his wife, saying in apparent reference to the matter, she had “been through the fire” and “when they came after me, they came after her as well.”

NC Newsline reached out to Hill Wednesday evening seeking comment on the letter and will update this report if and when she responds.

NC Newsline is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. NC Newsline maintains editorial independence. Contact Editor Rob Schofield for questions: [email protected]. Follow NC Newsline on Facebook and X.