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

Utah § 53F-6-405.5

• Jurisdiction: Utah
• Title 53F: Public Education System -- Funding
• Ch. 53F-6: State Funding -- Programs Administered by Other Agencies
• Part 53F-6-4: Utah Fits All Scholarship Program

Text

(1) The financial administrator shall:
(1)(a) operate independently in processing and distributing scholarship funds while:
(1)(a)(i) following program requirements the program manager establishes;
(1)(a)(ii) implementing payment directives from the program manager regarding:
(1)(a)(ii)(A) scholarship student eligibility;
(1)(a)(ii)(B) qualifying provider status;
(1)(a)(ii)(C) payment timing; and
(1)(a)(ii)(D) other established program requirements;
(1)(a)(iii) maintaining separate systems and controls from program administration; and
(1)(a)(iv) providing necessary reporting while preserving operational independence;
(1)(b) implement and maintain a payment processing system that:
(1)(b)(i) provides an online portal for scholarship account access;
(1)(b)(ii) facilitates electronic payments to qualifying providers;
(1)(b)(iii) enables pre-approval of parent reimbursements for eligible expenses;
(1)(b)(iv) includes provider rating and review capabilities;
(1)(b)(v) processes payments efficiently;
(1)(b)(vi) prevents unauthorized access;
(1)(b)(vii) provides real-time reporting to the program manager; and
(1)(b)(viii) maintains backup systems and disaster recovery capabilities;
(1)(c) process payments only:
(1)(c)(i) to qualifying providers approved by the program manager;
(1)(c)(ii) for scholarship expenses determined eligible by the program manager, including the reimbursement for the scholarship expense to parents; and
(1)(c)(iii) when directed by the program manager;
(1)(d) maintain security measures that:
(1)(d)(i) prevent unauthorized access to scholarship funds;
(1)(d)(ii) comply with industry standards for data privacy; and
(1)(d)(iii) ensure compliance with federal education privacy laws; and
(1)(e) process scholarship payments according to the distribution schedule described in Section 53F-6-411, including:
(1)(e)(i) tracking initial and second-half payments;
(1)(e)(ii) managing early disbursement authorizations; and
(1)(e)(iii) reconciling payment records with the Utah Fits All Scholarship Restricted Account balance.
(2) For financial accountability, the financial administrator shall:
(2)(a) maintain detailed records of:
(2)(a)(i) all scholarship account transactions to the service or item level;
(2)(a)(ii) payment processing activities; and
(2)(a)(iii) reimbursements and refunds;
(2)(b) provide monthly reports to the program manager including:
(2)(b)(i) scholarship account balances and activity;
(2)(b)(ii) payment processing status and issues;
(2)(b)(iii) provider payment summaries; and
(2)(b)(iv) reimbursement tracking; and
(2)(c) submit annual financial reports including:
(2)(c)(i) total scholarship funds disbursed;
(2)(c)(ii) account reconciliation statements; and
(2)(c)(iii) audit results and responses.
(3) The financial administrator shall:
(3)(a) implement payment suspensions or cancellations as directed by the program manager;
(3)(b) process reimbursements from providers as required;
(3)(c) credit returned funds to appropriate scholarship accounts; and
(3)(d) maintain records of all suspended or canceled payments.
(4) The financial administrator:
(4)(a) may not:
(4)(a)(i) approve or deny scholarship expenses;
(4)(a)(ii) determine provider eligibility;
(4)(a)(iii) establish program policies; and
(4)(a)(iv) charge processing fees to an eligible student or pass on third-party fees related to the use or management of scholarship funds; and
(4)(b) shall:
(4)(b)(i) follow all program manager directives regarding fund disbursement;
(4)(b)(ii) maintain separation between policy decisions and payment processing; and
(4)(b)(iii) implement internal controls to prevent unauthorized payments.
(5) The financial administrator shall:
(5)(a) cooperate with all program audits;
(5)(b) provide requested financial records;
(5)(c) respond to audit findings as directed; and
(5)(d) implement corrective actions as required by the program manager.

Legislative History

Enacted by Chapter 25, 2025 General Session