1. (1) The financial administrator shall:

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

      1. (i) following program requirements the program manager establishes;

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

         1. (A) scholarship student eligibility;
         2. (B) qualifying provider status;
         3. (C) payment timing; and
         4. (D) other established program requirements;
      3. (iii) maintaining separate systems and controls from program administration; and
      4. (iv) providing necessary reporting while preserving operational independence;

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

      1. (i) provides an online portal for scholarship account access;
      2. (ii) facilitates electronic payments to qualifying providers;
      3. (iii) enables pre-approval of parent reimbursements for eligible expenses;
      4. (iv) includes provider rating and review capabilities;
      5. (v) processes payments efficiently;
      6. (vi) prevents unauthorized access;
      7. (vii) provides real-time reporting to the program manager; and
      8. (viii) maintains backup systems and disaster recovery capabilities;

   3. (c) process payments only:

      1. (i) to qualifying providers approved by the program manager;
      2. (ii) for scholarship expenses determined eligible by the program manager, including the reimbursement for the scholarship expense to parents; and
      3. (iii) when directed by the program manager;

   4. (d) maintain security measures that:

      1. (i) prevent unauthorized access to scholarship funds;
      2. (ii) comply with industry standards for data privacy; and
      3. (iii) ensure compliance with federal education privacy laws; and

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

      1. (i) tracking initial and second-half payments;
      2. (ii) managing early disbursement authorizations; and
      3. (iii) reconciling payment records with the Utah Fits All Scholarship Restricted Account balance.

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

   1. (a) maintain detailed records of:

      1. (i) all scholarship account transactions to the service or item level;
      2. (ii) payment processing activities; and
      3. (iii) reimbursements and refunds;

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

      1. (i) scholarship account balances and activity;
      2. (ii) payment processing status and issues;
      3. (iii) provider payment summaries; and
      4. (iv) reimbursement tracking; and

   3. (c) submit annual financial reports including:

      1. (i) total scholarship funds disbursed;
      2. (ii) account reconciliation statements; and
      3. (iii) audit results and responses.

3. (3) The financial administrator shall:

   1. (a) implement payment suspensions or cancellations as directed by the program manager;
   2. (b) process reimbursements from providers as required;
   3. (c) credit returned funds to appropriate scholarship accounts; and
   4. (d) maintain records of all suspended or canceled payments.

4. (4) The financial administrator:

   1. (a) may not:

      1. (i) approve or deny scholarship expenses;
      2. (ii) determine provider eligibility;
      3. (iii) establish program policies; and
      4. (iv) charge processing fees to an eligible student or pass on third-party fees related to the use or management of scholarship funds; and

   2. (b) shall:

      1. (i) follow all program manager directives regarding fund disbursement;
      2. (ii) maintain separation between policy decisions and payment processing; and
      3. (iii) implement internal controls to prevent unauthorized payments.

5. (5) The financial administrator shall:

   1. (a) cooperate with all program audits;
   2. (b) provide requested financial records;
   3. (c) respond to audit findings as directed; and
   4. (d) implement corrective actions as required by the program manager.

Enacted by Chapter 25, 2025 General Session