Nonprofit Led by North Carolina Lt. Governor's Wife Ordered to Repay $132,000 in Federal Funding
ICARO Media Group
Title: Nonprofit Led by North Carolina Lt. Governor's Wife Ordered to Repay $132,000 in Federal Funding
In a scathing review, the North Carolina Department of Health and Human Services (DHHS) has ordered a nonprofit organization led by the wife of Lt. Governor Mark Robinson to repay $132,000 in federal funding. The nonprofit, called Balanced Nutrition, assists child care facilities in receiving federal funding for children's meals.
The DHHS review found a multitude of issues with Balanced Nutrition, leading to the decision to demand repayment. The nonprofit was deemed "seriously deficient" after it was discovered that required documentation was missing, and claims for payment were filed for centers that had not requested or received money. The improper claims for payment included excessive administrative costs and improperly documented food purchases.
According to DHHS, the full disallowance owed by Balanced Nutrition to the state agency is $132,118.86. However, this amount only includes specific childcare centers and selected months that were part of the compliance review. It is possible that the repayment figure could increase if the DHHS broadens the scope of its review in the future.
One major issue that contributed to the nonprofit's non-compliance was the excessive administrative costs. Hill, the wife of Lt. Governor Mark Robinson and the leader of Balanced Nutrition, had a salary of approximately $140,000 per year, which far exceeded the program requirement of administrative costs not exceeding 15% of overall funding. DHHS also found that the nonprofit employed Hill's daughter, Kimberly Cephas, without disclosing the familial relationship, which violated program regulations.
In addition to excessive administrative costs, the review also unveiled improper food costs. The agency discovered inadequate documentation for some food purchases and the inclusion of items not allowed within the childcare food program, such as chewing gum and sports drinks.
Despite repeated attempts by DHHS to schedule a meeting to discuss the findings, Hill and her attorney did not respond. The nonprofit's earlier finding of "serious deficiency" grants Balanced Nutrition two weeks to submit a plan of corrective action.
Balanced Nutrition now has 15 days to request an informal review or appeal, according to a DHHS spokesperson. If no request is made, the DHHS will send a "Demand for Repayment" letter with formal instructions, which would need to be paid within 30 days. Failure to comply would result in accruing interest on the amount owed and potential involvement of a collections agency.
As of now, Lt. Governor Mark Robinson, his wife, and their campaign have not responded to media inquiries regarding the DHHS findings. However, Hill had previously questioned whether the probe was politically motivated.
Further investigations may be conducted by the United States Department of Agriculture, Food and Nutrition Service (FNS), and the Office of the Inspector General (OIG) at the request of the state agency or whenever deemed appropriate by FNS or OIG.
It remains to be seen how this financial setback for Balanced Nutrition will impact Lt. Governor Mark Robinson's political aspirations as he recently announced his candidacy for Governor of North Carolina.