Audit indicates Balanced Nutrition, Inc. improperly billed the state for more than $24,000

A nonprofit run by Yolanda Hill, the wife of Lt. Gov. Mark Robinson, owes the state of North Carolina more than $24,000, including more than $10,000 for inaccurate reimbursement claims it submitted on behalf of Gingerbread Learning Center for meals that the center never reported having served. 

Yesterday, NC Newsline reported that a 2024 DHHS audit found that Balanced Nutrition filed claims for Gingerbread Learning Center for eight months between February and October 2023 and again in February 2024, even though the center had not submitted a claim with the nonprofit since November 2022. The findings suggest that Balanced Nutrition falsely claimed reimbursement for meals that were not served. 

“Ms. Hill confirmed with the compliance team that Gingerbread Learning Center had not filed a claim since November 2022,” the report said. 

Documents released Thursday and analyzed by NC Newsline show Balanced Nutrition claimed $10,249.25 for those months.

DHHS is also seeking reimbursement for claims Balanced Nutrition submitted on behalf of other centers as the result of its failure to report accurate meal counts or make valid claims. All told, DHHS says the state is owed $24,400.29 for improper reimbursement claims.

DHHS is giving Balanced Nutrition 15 days to request an informal review, appeal the findings, or pay the amount owed. The nonprofit can also file a petition for a hearing with the Office of Administrative Hearings. 

Balanced Nutrition also failed to disclose to DHHS its arrangement to pay labor expenses for Kimberly Cephas, Hill’s daughter, a violation of state law. It’s unclear whether DHHS will seek reimbursement for those expenses. 

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. But according to news reports Hill made the abrupt decision as the state was preparing to conduct a compliance review of her organization. She later claimed 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. 

Both Hill and Robinson, who did extensive work for the nonprofit prior to the start of his political career, have argued publicly that the scrutiny directed at Balanced Nutrition is unfounded and politically motivated. 

NC Newsline reached out to Hill via email Wednesday evening and again today seeking comment, but she has yet to respond.

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