North Carolina regulators say nonprofit run by lieutenant governor's wife owes the state $132K

RALEIGH. N.C. (AP) — North Carolina state regulators now declare a nonprofit run by the wife of North Carolina Lt. Gov. Mark Robinson must repay over $132,000 for what they call disallowed expenses while carrying out a federally funded child care 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 also 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 already announced in March that the fiscal year's review of Balanced 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 on Thursday that the Greensboro nonprofit also owed the state $24,400 in unverified expenses reimbursed to several child care 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 over $80,000 of these disallowed costs to "administrative labor" or “operating labor.” The records don't provide details about the labor costs.

This week's compliance review did say that 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. A lawyer representing Balanced Nutrition and Hill did not immediately respond to an email Friday seeking comment.

The lawyer, Tyler Brooks, has 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 Democratic Gov. Roy Cooper’s administration. He was term-limited from seeking reelection. Democratic Attorney General Josh Stein is running against Robinson for governor.

Balanced Nutrition helped child care 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 a 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 show.

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.