| (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:
Terms Used In Utah Code 13-53-108- Administrator: includes "executor" when the subject matter justifies the use. See Utah Code 68-3-12.5
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Source: OCC
- Division: means the Division of Consumer Protection. See Utah Code 13-53-102
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Lien: A claim against real or personal property in satisfaction of a debt.
| (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. |
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| (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 |
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| (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. |
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| (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. |
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| (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. |
Enacted by Chapter 252, 2018 General Session
