53F-6-405.5. Financial administrator duties and requirements.

493 words·~2 min read·/ut/title-53f/chapter-6/53f-6-405-5

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

Effective 3/6/2025

(1)The financial administrator shall:

(a)operate independently in processing and distributing scholarship funds while:

(i)following program requirements the program manager establishes;

(ii)implementing payment directives from the program manager regarding:

(A)scholarship student eligibility;

(B)qualifying provider status;

(C)payment timing; and

(D)other established program requirements;

(iii)maintaining separate systems and controls from program administration; and

(iv)providing necessary reporting while preserving operational independence;

(b)implement and maintain a payment processing system that:

(i)provides an online portal for scholarship account access;

(ii)facilitates electronic payments to qualifying providers;

(iii)enables pre-approval of parent reimbursements for eligible expenses;

(iv)includes provider rating and review capabilities;

(v)processes payments efficiently;

(vi)prevents unauthorized access;

(vii)provides real-time reporting to the program manager; and

(viii)maintains backup systems and disaster recovery capabilities;

(c)process payments only:

(i)to qualifying providers approved by the program manager;

(ii)for scholarship expenses determined eligible by the program manager, including the reimbursement for the scholarship expense to parents; and

(iii)when directed by the program manager;

(d)maintain security measures that:

(i)prevent unauthorized access to scholarship funds;

(ii)comply with industry standards for data privacy; and

(iii)ensure compliance with federal education privacy laws; and

(e)process scholarship payments according to the distribution schedule described in Section 53F-6-411 , including:

(i)tracking initial and second-half payments;

(ii)managing early disbursement authorizations; and

(iii)reconciling payment records with the Utah Fits All Scholarship Restricted Account balance.

(2)For financial accountability, the financial administrator shall:

(a)maintain detailed records of:

(i)all scholarship account transactions to the service or item level;

(ii)payment processing activities; and

(iii)reimbursements and refunds;

(b)provide monthly reports to the program manager including:

(i)scholarship account balances and activity;

(ii)payment processing status and issues;

(iii)provider payment summaries; and

(iv)reimbursement tracking; and

(c)submit annual financial reports including:

(i)total scholarship funds disbursed;

(ii)account reconciliation statements; and

(iii)audit results and responses.

(3)The financial administrator shall:

(a)implement payment suspensions or cancellations as directed by the program manager;

(b)process reimbursements from providers as required;

(c)credit returned funds to appropriate scholarship accounts; and

(d)maintain records of all suspended or canceled payments.

(4)The financial administrator:

(a)may not:

(i)approve or deny scholarship expenses;

(ii)determine provider eligibility;

(iii)establish program policies; and

(iv)charge processing fees to an eligible student or pass on third-party fees related to the use or management of scholarship funds; and

(b)shall:

(i)follow all program manager directives regarding fund disbursement;

(ii)maintain separation between policy decisions and payment processing; and

(iii)implement internal controls to prevent unauthorized payments.

(5)The financial administrator shall:

(a)cooperate with all program audits;

(b)provide requested financial records;

(c)respond to audit findings as directed; and

(d)implement corrective actions as required by the program manager.

Enacted by Chapter 25 , 2025 General Session