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The North Carolina Department of Health and Human Services (DHHS) has ordered Balanced Nutrition Inc., a nonprofit organization led by Yolanda Hill, wife of Lt. Gov. Mark Robinson, to repay over $132,000 in federal funding. This order comes after the agency found "serious deficiencies" in the organization's operations, according to NC Newsline.
Balanced Nutrition, established by Hill in 2015, has been assisting child care centers in applying for and receiving federal funding for children's meals. However, according to a letter sent by DHHS on Friday, the nonprofit improperly billed the federal food program. The issues included excessive administrative costs, inadequate documentation for some food purchases, and buying items not permitted for the childcare program.
The total amount Balanced Nutrition is required to repay is $132,118.86. DHHS clarified that this repayment is separate from the Notice of Serious Deficiency, which requires the organization to document proposed corrective actions.
One specific issue highlighted by DHHS was the employment of Kimberly Cephas, Hill's daughter, without proper disclosure of the relationship. This violates program regulations, as DHHS approval is required for such hires. The agency is seeking reimbursement for labor expenses claimed for Cephas.
Earlier this year, Hill abruptly announced the closure of Balanced Nutrition, citing her husband's campaign for governor as the reason. This decision came as the state was preparing to conduct a compliance review of the organization. Hill later accused DHHS of targeting Balanced Nutrition due to her husband's political position. Since then, she has refused to meet with DHHS officials.
Despite officially shutting down Balanced Nutrition on April 30, Hill is still required to respond to DHHS requests. This is because the agency had already scheduled a compliance review to begin two weeks prior to the closure date. The letter from DHHS notes that Hill has not responded to multiple attempts by the state agency to set up a meeting to discuss the findings.
DHHS has made several attempts to schedule an in-person exit conference through various means of communication, including email, telephone, and written correspondence. However, they have received no response from Hill or the organization.
Balanced Nutrition now has a two-week deadline to submit a plan of correction for the earlier finding of "serious deficiency." This situation highlights the importance of proper management and transparency in organizations receiving federal funding, especially those with potential political connections.