Ethermac Exchange-North Carolina review say nonprofit led by lieutenant governor’s wife ‘seriously deficient’

RALEIGH,Ethermac Exchange N.C. (AP) — A nonprofit operated by the wife of North Carolina Lt. Gov Mark Robinson that she recently shuttered was “seriously deficient” in its recent operations, according to a state review examining how it carried out a federally funded meal program helping some child care providers.

A letter dated Wednesday from the state Department of Health and Human Services addressed to Balanced Nutrition Inc. owner Yolanda Hill and others gave the group two weeks to correct a myriad of shortcomings regulators cited or be disqualified from participating in the Child and Adult Care Food Program.

Hill is married to Robinson, who is also the Republican nominee for governor and is running against Democratic Attorney General Josh Stein.

The Greensboro nonprofit had decided to close at the end of April, but state officials said a compliance review of Balance Nutrition’s activities during the current federal fiscal year was already announced in March and slated to begin April 15.

Written correspondence provided through a public records request described difficulties the state Division of Child and Family Well-Being and others had in obtaining documents and meeting with Balanced Nutrition leaders. An attorney representing Balanced Nutrition said he and Hill met with regulators in late April. The lawyer has previously questioned the review’s timing, alleging Balanced Nutrition was being targeted because Hill is Robinson’s wife.

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The attorney, Tyler Brooks, did not immediately respond to an email Thursday seeking comment on the division’s findings.

The health department is run by Democratic Gov. Roy Cooper’s administration. He was term-limited from seeking reelection this fall.

Balanced Nutrition, funded by taxpayers, 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.

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 said on its website that it charged 15% of a center’s reimbursement for its services.

In his memoir, Robinson described how the operation brought fiscal stability to their family, giving him the ability to quit a furniture manufacturing job in 2018 and begin a career in conservative politics. It contrasted with an element of Robinson’s political message critical of government safety net spending. Robinson, who would be North Carolina’s first Black governor if elected in November, said he stopped working there when he ran for office.

The state’s recent review examine five child care centers and five day care home providers among the nonprofit’s clients. The report signed by the program’s state director cited new and repeat findings.

The report said Balanced Nutrition, in part, failed to file valid reimbursement claims for several facilities or report expenses accurately, to keep reimbursement records for three years as required and to maintain income-eligibility applications to determine whether families of enrolled children qualified for free and reduced-price meals.

In some cases, regulators said, the nonprofit filed claims for meals that did not meet the program’s “meal pattern” or for unallowable expenses for some facilities. Balanced Nutrition also did not participate in civil rights and other training as the state required, according to the report. The review also found that Balanced Nutrition should have received approval from the program that Hill’s daughter was working for the nonprofit.