(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.