Looks Like Fraud, But Let's Call It Messy Paperwork

 

Gary D. Robertson reporting:

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.... [Hill's daughter was working for the nonprofit]

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.