; and (B) any distribution from a military education savings account which is permitted under this Act shall not be includible in the gross income of the individual for whose benefit such account is maintained or the parent of such individual. (n) Fraud prevention and reporting The Secretary shall establish a website and a telephone hotline that enable individuals to anonymously report suspected fraud in the program under this section. The Secretary also shall conduct or contract for random, quarterly, or annual audits of accounts as needed to ensure compliance with this section. (o) Contract authority The Secretary may enter into one or more contracts for the purpose of carrying out the responsibilities of the Secretary under this section. (p) Refunds The Secretary shall establish a process under which payments from a Military Education Savings Accounts to a qualified educational service provider shall be refunded to the account in the event of fraud or nonperformance by the provider. (q) Rules of construction (1) Nonagency A qualified educational service provider that receives a payment from a Military Education Savings Account pursuant to this section shall not be considered an agent of the State or the Federal Government solely because the provider received such payment. (2) Prohibition of Federal or State supervision or control over nonpublic education providers (A) In general Nothing in this section shall be construed to permit, allow, encourage, or authorize any Federal or State control or supervision over any aspect of any qualified educational service provider, including a private, religious, or home education provider (without regard to whether a home education provider is treated as a private school or home school under State law). This section shall not be construed to exclude private, religious, or home education providers from participation in programs or services under this Act. (B) No religion-based discrimination The Secretary shall not exclude, discriminate against, or otherwise disadvantage any