The nonprofit run by the governor’s wife was placed on the state’s list for suspension of funding because it failed to provide audits

RALEIGH, N.C. (WNCN) – Lt. Gov. Mark Robinson’s wife Yolanda Hill’s nonprofit was placed on a state list to have its funding suspended in 2021, drawing the attention of the State Auditor’s Office, CBS17 has learned.

Hill announced last month that she was quitting Balanced Nutrition’s core work as the organization conducts a compliance review.

Publicly, Hill said the decision was due to how busy life has become while her husband is running for governor. An email obtained by CBS17 revealed that Hill believed the scrutiny made Balanced Nutrition feel like it was “the target of a vendetta, be it personal or political.”

Balanced Nutrition serves as a sponsoring organization under the Federal Child and Adult Care Food Program, administered by the State of North Carolina Department of Health and Human Services. According to Balanced Nutrition’s website, the nonprofit helps adult and child care facilities navigate this program to access federal grants to provide food.

CBS17 received an email from the director of the state auditor’s office’s investigative audit division to NCDHHS last November requesting more information about Balanced Nutrition.

They noted that the auditor’s office had received “allegations” about the nonprofit and requested budget documents from 2019. The specific focus of the request was “whether the salaries paid to employees, including the executive director, were consistent with the salaries for this organization, which they agreed to in their budget.”

The Assembly previously reported criticism of Balanced Nutrition, including Hill increasing her salary by $28,000 in 2020 after receiving a PPP loan of almost the same amount at the start of the pandemic. In total, Hill received and was forgiven two PPP loans totaling $57,000 in 2020 and 2021, even as Balanced Nutrition reported increasing revenue, the meeting reported.

The only employees listed on Balanced Nutrition’s tax records in recent years include Hill and her family members. Hill is listed as chief financial officer.

The auditor’s office states that no findings have been released regarding Balanced Nutrition and that it neither confirms nor denies the existence of an investigation.

Tyler Brooks, an attorney for Balanced Nutrition, said they had not been contacted by the auditor’s office or Ms. Hill.

He also answered questions about why Balanced Nutrition has been on the state’s list to stop funding since 2021.

The Office of State Budget and Management maintains the Funding Suspension List, which shows that Balanced Nutrition was added on July 12, 2021. The reason given was that no reports were submitted to NCDHHS.

An NCDHHS spokesperson confirmed that Balanced Nutrition was added to this list because the company failed to provide audit reports to the agency in 2019 and 2020.

However, the nonprofit continued to receive funding.

“Although they are on the OSBM funding suspension list, funding for some federal food grant programs that serve children and adults, such as CACFP, cannot be suspended. And while OSBM indicates that suspended recipients should not renew their contracts if they remain suspended at the time of renewal, CACFP institutions have permanent agreements that are not bound by contract deadlines with renewal options,” NCDHHS spokeswoman Hannah Jones wrote in an email -Mail.

CBS17 asked Balanced Nutrition’s attorney what steps they took to correct the issues that led to the company being placed on the “financing suspension” list. Brooks initially responded, “I think that’s just not true.”

But after looking at what OSBM posted about Balanced Nutrition, he said, “We have no explanation other than that it appears to be a mistake by the state.” We don’t know why Balanced Nutrition is on this list. I’m sorry I can’t be more helpful, but it’s a mystery to us.”