Upon termination between an ARC accredited agency and ARC, the agency must do all of the following except which action?

Upon termination between an ARC accredited agency and ARC, the agency must do all of the following except which action?

• A. Immediately cancel its financial instrument
• B. Return ARC property and records as required
• C. Settle outstanding balances due to ARC
• D. Cease all ARC reporting activity and comply with wind-down procedures

Answer: (A)

The key idea here is how a ARC-accredited agency winds down its relationship with ARC. When termination occurs, the agency should complete orderly steps to close out the relationship: return ARC property and records so ARC can reclaim its assets and protect confidential information; settle any outstanding balances to cleanly close financial ties; and cease ARC reporting activity while following the wind-down procedures so there’s no residual data or activity after closure. The action that is not required immediately is canceling the financial instrument right away. That instrument typically remains in place during the wind-down to cover pending obligations and ensure a smooth, documented exit, rather than being terminated at once.

The key idea here is how a ARC-accredited agency winds down its relationship with ARC. When termination occurs, the agency should complete orderly steps to close out the relationship: return ARC property and records so ARC can reclaim its assets and protect confidential information; settle any outstanding balances to cleanly close financial ties; and cease ARC reporting activity while following the wind-down procedures so there’s no residual data or activity after closure. The action that is not required immediately is canceling the financial instrument right away. That instrument typically remains in place during the wind-down to cover pending obligations and ensure a smooth, documented exit, rather than being terminated at once.