Utah Code § 53F-6-405.5 — Utah Code / Title 53F / Chapter 53F-6 / § 53F-6-405.5
§ 53F-6-405.5. Financial administrator duties and requirements.
Status: in_force

(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.