13-53-108. Financial requirements.

471 words·~2 min read·/ut/title-13/chapter-53/13-53-108

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(1)When applying for registration under Subsection 13-53-103(2) , an applicant shall demonstrate financial responsibility by providing evidence to the division that the residential vocational or life skills program:

(a)is financially sound; and

(b)reasonably has the financial ability to fulfill commitments and obligations to the participants of the residential vocational or life skills program.

(2)Evidence acceptable to satisfy the requirement described in Subsection

(1)includes:

(a)for a residential vocational or life skills program that has been in operation less than one fiscal year:

(i)pro forma financial statements until further information described in Subsection (2)(b) is available;

(ii)a commercial credit report for the residential vocational or life skills program; and

(iii)a personal credit report for:

(A)each owner of the residential vocational or life skills program who controls at least 10% of the ownership interests in the residential vocational or life skills program; or

(B)each individual that exercises substantial control over the residential or life skills program; or

(b)for a residential vocational or life skills program that has completed a fiscal year, and as soon as the residential vocational or life skills program completes the residential vocational or life skills program's first fiscal year:

(i)a current financial statement, with all applicable footnotes, for the most recent fiscal year, including a balance sheet, a statement of income, a statement of retained earnings, and a statement of cash flow; and

(ii)a certified financial audit of the residential vocational or life skills program's financial statement, that a certified public accountant performs.

(3)In evaluating a residential vocational or life skills program's financial responsibility, the division may consider:

(a)a judgment, tax lien, collection action, bankruptcy schedule, or history of late payments to creditors;

(b)documentation showing the resolution of a matter described in Subsection (3)(a) ;

(c)the residential vocational or life skills program's explanation for a matter described in Subsection (3)(a) ;

(d)a guarantee agreement provided for the residential vocational or life skills program; and

(e)history of a prior entity that:

(i)is owned or operated by any individual who is an officer, a director, or an administrator of the residential vocational or life skills program; and

(ii)has failed to maintain financial responsibility.

(4)The division may require evidence of financial status at other times when requiring evidence of financial status is in the best interest of the program participants to require the information.

(5)The division may perform a fiscal audit of a residential vocational or life skills program.

(6)A residential vocational or life skills program shall develop and maintain adequate internal controls for receipt, management, and disbursement of money that are reasonable in light of the residential vocational or life skills program's organizational complexity.

Amended by Chapter 95 , 2026 General Session