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Utah Code Title 13. Commerce and Trade § 13-53-108. Financial requirements

Current as of January 01, 2025 | Updated by Findlaw Staff

(1) When applying for registration under Subsection 13-53-103(2), an applicant shall demonstrate fiscal responsibility by providing evidence to the division that the residential, vocational and life skills program:

(a) is financially sound; and

(b) reasonably has the fiscal ability to fulfill commitments and obligations to the participants of the residential, vocational and life skills program.

(2) Evidence acceptable to satisfy the requirement described in Subsection (1) includes:

(a) for a residential, vocational and life skills program that has been in operation less than one fiscal year:

(i) pro forma financial statements until further information described in Subsection (2)(b) is available; and

(ii) a commercial credit report for the residential, vocational and life skills program; or

(b) for a residential, vocational and life skills program that has completed a fiscal year, and as soon as the residential, vocational and life skills program completes its first fiscal year:

(i) a current financial statement, with all applicable footnotes, for the most recent fiscal year, including a balance sheet, a statement of income, a statement of retained earnings, and a statement of cash flow; and

(ii) a certified fiscal audit of the residential, vocational and life skills program's financial statement, performed by a certified or licensed public accountant.

(3) In evaluating a residential, vocational and life skills program's fiscal responsibility, the division may consider:

(a) any judgment, tax lien, collection action, bankruptcy schedule, or history of late payments to creditors;

(b) documentation showing the resolution of a matter described in Subsection (3)(a);

(c) the residential, vocational and life skills program's explanation for a matter described in Subsection (3)(a);

(d) a guarantee agreement provided for the residential, vocational and life skills program; and

(e) history of a prior entity that:

(i) is owned or operated by any individual who is an officer, a director, or an administrator of the residential, vocational and life skills program; and

(ii) has failed to maintain fiscal responsibility.

(4) The division may require evidence of financial status at other times when it is in the best interest of the program participants to require the information.

(5) The division may perform a fiscal audit of a residential, vocational and life skills program.

(6) A residential, vocational and life skills program shall develop and maintain adequate internal controls for receipt, management, and disbursement of money that are reasonable in light of the residential, vocational and life skills program's organizational complexity.

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Cite this article: FindLaw.com - Utah Code Title 13. Commerce and Trade § 13-53-108. Financial requirements - last updated January 01, 2025 | https://codes.findlaw.com/ut/title-13-commerce-and-trade/ut-code-sect-13-53-108/

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