‘Seriously Deficient’: NC DHHS smacks the Robinsons and Balanced Nutrition

THIS is just the tip of the iceberg, folks.  The state Department of Health and Human Services  (NC DHHS) has found serious problems with the administration of taxpayer funds at Balanced Nutrition, a Greensboro-based contractor for NC DHHS run and staffed by Mark Robinson, Yolanda Hill, their family and friends.

The report findings made public today (Wednesday) were based only on the past two years and dealt only with a handful of randomly-selected cases.  (Who knows what will be found when the probe is opened up to include all of Balanced Nutrition‘s clients and all nine years of its operations.)

Here’s the letter outlining the agency’s case against Balanced Nutrition:

 […] RE: Review of Findings-Child and Adult Care Food Program (CACFP) Review 2023-2024

Dear Ms. Hill and Mrs. Matthews-Jones:

This letter concerns the findings from the Federal Fiscal Year 2023-2024 Compliance Review on Balanced Nutrition, Inc, Agreement #9460. The State agency has made multiple attempts to schedule an in-person exit conference, by email, telephone, and written communication, with no response.

A complete list of findings and finding descriptions have been attached for review. A summary of the review findings from the Sponsor level as well as findings from the facility level is provided below. Please note some areas have been noted as repeat findings from the compliance review conducted in Federal Fiscal Year 2023.

SPONSOR LEVEL FINDINGS:

Findings were noted in the following areas:

• Recordkeeping

• Civil Rights

• Programmatic Training

• Monitoring (Repeat Finding)

• Income Eligibility Applications and Enrollment Documentation (Repeat Finding)

• Meal Count Validation

• Menu Review (Repeat Finding)

Fiscal Integrity (Repeat Finding)

• Administration

FACILITY LEVEL FINDINGS:

For Federal Fiscal Year 2024 a total of ten (10) facilities were reviewed this included five (5) centers and five (5) day care home providers.

The centers that were reviewed include: ABG Provider Services Child Care II, Apple Tree Wee School, Inc., First Class Preparatory School, Foundation Builders Academy, and Gingerbread Learning Center.

Findings were noted in the following areas regarding the centers:

• Recordkeeping (Repeat Finding)

• Civil Rights

• Monitoring

• Programmatic Training (Repeat Finding)

• Monitoring

• Verification of Income Eligibility Applications and Enrollment (Repeat Finding)

• Meal Count Verification (Repeat Finding)

• Meal Observation and Meal Pattern Analysis

• Menu Review (Repeat Finding)

• Approved Meal Service

• Fiscal Integrity

The day care home providers that were reviewed include: Kim Eaton, Sharon Harris, Jamie Johnson, Robrita McKoy, and Rosa Reddick.

Findings were noted in the following areas regarding the day care home providers:

• Attendance and Eligibility Data (Repeat Finding)

• Recordkeeping (Repeat Finding)

• Ethnic and Racial Data

• Civil Rights (Repeat Finding)

• Programmatic Training (Repeat Finding)

• Parental Notification

• Monitoring (Repeat Finding)

• Meal Count Verification

• Meal Observation and Meal Pattern Analysis (Repeat Finding)

• Five-Day Meal Count

• Menu Review (Repeat Finding)

In addition to the Compliance Review Report, you will also find disallowance forms with appeal rights for the test months within the compliance review of January 2024, February 2024, and March 2024. Disallowance forms for Gingerbread Learning Center for the months of February 2023, March 2023, June 2023, July 2023, August 2023, September 2023, October 2023, and February 2024 where claims were filed on the facility’s behalf.

SUMMARY

The State agency recognizes that Balanced Nutrition submitted a notice to terminate their CACFP Agreement with the State agency effective April 30, 2024. Prior to the State agency receiving the request to terminate from Balanced Nutrition, a compliance review was scheduled to begin April 15, 2024. For this reason, the State agency had an obligation to complete the compliance review. […]

And HERE is DHHS’s notice of ‘Serious Deficiency’ citing the Robinsons’ company:

[…]  SERIOUS DEFICIENCY DETERMINATION

The Federal Fiscal Year 2024 compliance review was scheduled to begin April 15, 2024. The State agency recognizes that Balanced Nutrition submitted a notice to terminate their CACFPAgreement with the State agency effective April 30, 2024. Prior to the State agency receiving the request to terminate from Balanced Nutrition, Inc. a compliance review was scheduled to begin April 15, 2024. Announcement letters were sent to Balanced Nutrition, Inc. on March 1, 2024, and March 18, 2024, indicating the compliance review for Balanced Nutrition, Inc. had been scheduled, the letter also listed documents Balanced Nutrition, Inc. must have available upon the State agency’s arrival.

The morning of April 15, 2024, the North Carolina Department of Health and Human Services General Counsel received notification from Balanced Nutrition, Inc.’s Attorney B. Tyler Brooks stating, “Balanced Nutrition and Mrs. Hill respectfully decline to meet with NCHHS officials without the presence of counsel. Furthermore, we are not available this week”.

On April 22, 2024, the NCDHHS CACFP review team was able to begin the compliance review at the offices of Balanced Nutrition, Inc. Requests for documents to be available for the review were made on 3/1/2024, 3/18/2024, and 4/1/2024. The Sponsor’s Management Plan indicates the address where the institution’s records are maintained as 122 N. Elm Street, Suite 504, Greensboro, NC 27401-2818. All documents were not available on the date of review. Additional document requests were made by the compliance review team during the review and following the on-site portion of the Sponsoring Organizations review.

The State agency was permitted to begin the review on Balanced Nutrition, Inc on April 22, 2024, and was able to make copies of some requested documents, however, Balanced Nutrition, Inc. did not provide all requested documents.

The State agency made multiple attempts to schedule an in-person exit conference, by email, telephone, and written communication, with no response. A letter dated June 14, 2024, was sent to Balanced Nutrition, Inc. requesting three dates and times that an institution representative would be available to participate in an exit conference. Balanced Nutrition, Inc. was unresponsive.

A letter dated July 24, 2024 was sent to Balanced Nutrition Inc. in that notice Compliance Review Findings and associated disallowance forms were provided.

Due to the number and type of findings noted in the Federal Fiscal Year 2023-2024 compliance review and the presences of repeat findings from the Federal Fiscal Year 2022-2023 compliance review, the State agency has determined that Balanced Nutrition, Inc. is seriously deficient in its operation of the CACFP.

In addition, the State agency has identified Yolanda Hill, Kimberly Cephas, and Renee Matthews-Jones as responsible for the serious deficiencies as a result of their responsibility for the overall management of Balanced Nutrition, Inc. operations.

If Balanced Nutrition, Inc. does not provide a description of how the findings would be addressed to fully and permanently correct all of the serious deficiencies if participations in the CACFP and submit documentation of the proposed corrective action by August 7, 2024, the State agency will:

• Propose to disqualify Balanced Nutrition, Inc. from future CACFP participation; and

• Disqualify Yolanda Hill, Kimberly Cephas, and Renee Matthews-Jones from future CACFP participation.[…]

So, if they continue to not cooperate, we could have a scenario where the governor’s wife and daughter are barred from ever doing business with the state of North Carolina. (Wow.)

MORE:

[…] Since Balanced Nutrition, Inc. submitted a request to voluntarily terminate its agreement effective April 30, 2024, State agency will propose to disqualify Balanced Nutrition, Inc., Yolanda Hill, Kimberly Cephas, and Renee Matthews-Jones from future CACFP participation. If disqualified, Balanced Nutrition, Inc., Yolanda Hill, Kimberly Cephas, and Renee Matthews-Jones will be placed on the National Disqualified List (NDL). While on the list, Balanced Nutrition, Inc. will not be able to participate in the CACFP as an institution or facility. Yolanda Hill, Kimberly Cephas, and Renee Matthews-Jones will not be able to serve as a principal in any institution or facility or as a day care home provider in the CACFP. […] 

Okay.  it sounds like the agency is going ahead with this whole barring / disqualifying thing.  Interesting.

MORE:

[…] Institutions and individuals remain on the NDL until USDA’s Food and Nutrition Service, in consultation with the State agency, determines that the serious deficiencies have been corrected, or until seven years after their disqualification. However, if any debt relating to the serious deficiencies has not been repaid, they will remain on the list until the debt is paid.[…]

SO, our potential First Lady and her daughter could be held responsible for monetary debts, fines, or refunds related to the Balanced Nutrition fiasco.  (There’s a first time for everything, eh?)

MORE:

[…] The determination of serious deficiency is not subject to an administrative review (appeal). The basis for our determination of serious deficiency is stated below

REQUIRED CORRECTIVE ACTION

Within fourteen (14) calendar days of receipt of this letter, Balanced Nutrition, Inc. must submit Corrective Action Documents, the CAD must have a narrative of the finding with procedures on correction.[…]

Okay.  This part of the agency’s report gets a wee bit more interesting:

[…] SPONSOR FINDINGS:

• Balanced Nutrition, Inc. has not retained all records to support its claim for reimbursement for three years.

Balanced Nutrition, Inc. filed claims for Gingerbread Learning Center for February 2023, March 2023, June 2023, July 2023, August 2023, September 2023, October 2023, and February 2024, months that the facility reports not filing a claim with Balanced Nutrition, Inc. Documentation was not provided to illustrate the distribution of reimbursement from Balanced Nutrition, Inc. to Gingerbread Learning Center. During the on-site compliance review Ms. Hill confirmed with the compliance team that Gingerbread Learning Center had not filed a claim since November 2022.[…]

So,  Balanced Nutrition filed reimbursement claims with DHHS for Gingerbread Learning Center over several months in 2023 and 2024.  According to the report, Yolanda admitted that the folks at Gingerbread had not sent her a claim for reimbursement since November 2022.  (*So, WHY are Yolanda and Balanced Nutrition seeking money for months in 2023 and 2024?*)

It gets worse.  Read further into the report and you find allegations that monitoring the daycare facilities — to ensure accurate reporting on lunch reimbursements — was not being done as it should.  (Mark Robinson was on Balanced Nutrition’s payroll for one year as a monitor.)

DHHS also found that Balanced Nutrition provided inaccurate accounts on meals being served at daycare centers that needed reimbursement.

The state agency also alleges that Balanced Nutrition failed to accurately report expenses.  DHHS also alleges that Hill and Balanced Nutrition failed to properly disclose the hiring of Kimberly Cephas, who is the daughter of Yolanda Hill and Mark Robinson.

A deadline of August 7 has been established for Hill and her team at the now-defunct Balanced Nutrition to submit a plan to NC DHHS for correcting all of the findings in the state report.

Here’s a 30 page report detailing each of the problems DHHS reviewers found at Balanced Nutrition.

(*OOF.*)