When applying for registration under Subsection 13-53-103(2), an applicant shall demonstrate financial responsibility by providing evidence to the division that the residential vocational or life skills program:
(a)
is financially sound; and
(b)
reasonably has the financial ability to fulfill commitments and obligations to the participants of the residential vocational or life skills program.
(2)
Evidence acceptable to satisfy the requirement described in Subsection (1) includes:
(a)
for a residential vocational or 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;
(ii)
a commercial credit report for the residential vocational or life skills program; and
(iii)
a personal credit report for:
(A)
each owner of the residential vocational or life skills program who controls at least 10% of the ownership interests in the residential vocational or life skills program; or
(B)
each individual that exercises substantial control over the residential or life skills program; or
(b)
for a residential vocational or life skills program that has completed a fiscal year, and as soon as the residential vocational or life skills program completes the residential vocational or life skills program's 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 financial audit of the residential vocational or life skills program's financial statement, that a certified public accountant performs.
(3)
In evaluating a residential vocational or life skills program's financial responsibility, the division may consider:
(a)
a 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 or life skills program's explanation for a matter described in Subsection (3)(a);
(d)
a guarantee agreement provided for the residential vocational or 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 or life skills program; and
(ii)
has failed to maintain financial responsibility.
(4)
The division may require evidence of financial status at other times when requiring evidence of financial status 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 or life skills program.
(6)
A residential vocational or 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 or life skills program's organizational complexity.
Section 13-53-108 ("Financial requirements.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 13-53-108?
A common citation format is "Utah Code § 13-53-108" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 13-53-108 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
