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CERTIFIED PROFESSIONAL PROPERTY
SPECIALIST CPPS - STUDY GUIDE 2025
QUESTIONS AND VERIFIED SOLUTIONS|
ABSOLUTE SUCCESS GUARANTEED.
Benefits of an Effective Property Function - Correct Answer-
- Maximize return of Investment
- Facilitate Compliance
- Maximize reutilization
- Depreciation expense Other names of Property Accounting - Correct Answer-- Fixed asset accounting
- Inventory Control
- Material/Property Control Three key concepts of Property Management - Correct Answer-- Ownership
- Accountability
- Responsibility Records - Correct Answer-- Crucial element of Property Control Management
Begin during acqusition process, continues through every related transaction to include protection, preservation, utilization, maintenance and disposition - Correct Answer-Records Cornerstone of effective Property Control - Correct Answer- Communication, to include routine or special purpose reports, and Training Benefits gained by efficient property management - Correct Answer-- Return of Investment (ROI)
- Reutilization of excess property
- Compliance of internal and external procedures
- Value of organization What is Process? - Correct Answer-The series of steps taken to produce a desired result What is Procedure? - Correct Answer-Steps that must be followed to produce results Having legal/rightful title to property either by organization or sponsor under certain terms - Correct Answer-Ownership
Bottom line... transfers occur when property and accountability shift from what? - Correct Answer-From the using organization to another An organization with multiple sites with multiple subunits, change in location is a ______________ and not an _____________________________ - Correct Answer-Change in location is a movement not an interdepartmental transfer What is responsibility? - Correct Answer-to be answerable for a trust or obligation Property Professional Key distinction Standpoint - Correct Answer-One is accountable to someone for the property while being responsible for certain actions ie maintenance/storage related to the property or asset Interdepartmental transfers of property occurs when? - Correct Answer- When property and accountability shift from the using organization to another What does FAR 52.245- 1 - Government Property (FAC 2005-56, April 2012) (Ref, (b) (2) Property Management pertain to? - Correct Answer-The Contractor's responsibility extending from the initial acquisition and receipt of property, through stewardship, custody, and until use formally relieved of responsibility by means, including delivery, consumption, expanding, sale
(as surplus property), or other disposition, or via completed investigation, evaluation, and final determination for loss property. What is the Property Control System comprised of? - Correct Answer-- Written policies
- Procedures
- Operational Guidelines
- Related Records
- The Management Information System (MIS) What defines the roles and responsibilities of each participant in Property Management? - Correct Answer-The Property Control System The careful and responsible management of operations and property within one's care is what? - Correct Answer-Stewardship How many functional areas of Property Management are they to control property and what are they? - Correct Answer- 15
- Acquisition
- Receiving
- Identification
- Records
- Reports
- The level and type of interface needed with key stakeholders
- The resources available to staff the function
- The geographical layout of the organization Who are the key participants in Property Management? - Correct Answer-- Chief Financial Officer or Provost
- Controller's Office
- Program/Project Manager
- The Property Management Office (PMO)
- Departmental Property Administrator
- Property Custodian
- Asset/End Users Responsible for ensuring all property related policies and procedures are followed, usually the authority behind the Property Manager - Correct Answer-Chief Financial Officer (CFO) Working with the Property Manager, publishes policy as it relates to financial records of an organization - Correct Answer-Controller's Office Identifies the need for property - Correct Answer-Program/Project Manager
Property Management Office (PMO) - Correct Answer-Has the responsibility and role of ensuring and effective property control system is established/maintained while ensuring all property is controlled and managed IAW sound business practices In charge of property within unit or department consolidating property activity while informing the PMO via transaction recorded in the property database - Correct Answer-Departmental Property Administrator Responsible for the assets within a group who instructs users of their role and responsibilities while property is in the care, custody, and control of end user - Correct Answer-Property Custodian Assigned the task of reporting receipt, identification, movement, disposal, maintenance, and other events/creates system transaction or verbal communication - Correct Answer-Asset/End Users Eyes and ears of the Property Manager - Correct Answer-Asset/End Users Responsible for verifying the existence of property, confirming serial numbers, property location, condition, excess equipment. Also reconciles inventory data to property records while adjusting records to accommodate discrepancies. - Correct Answer-Physical Inventory Group
- Asset Classification Code(s)
- Estimated Cost
- Budget Codes
- Requisition Number What are the data elements of a Purchase Order? - Correct Answer-- Vendor name
- Vendor number
- Vendor address,
- Purchase Order Number
- Acquisition Method
- Funding Source(s)
- Accounting Codes What documents are associated with the Receiving Phase? - Correct Answer-Shipping documents What are the data elements of a Shipping document? - Correct Answer-- Expanded description
- Shipping costs
- Receipt date
- Location
- Warranty information
- Condition code What document is associated with Accounts Payable? - Correct Answer- Payment Voucher What the elements of a Payment Voucher? - Correct Answer-- Acquisition cost
- Voucher number
- Final Budget codes What documents are associated with "Put in Service" phase? - Correct Answer-- Internal Placement Documents
- Maintenance/Work Orders
- Internal Transfer What are the data elements of an Internal Placement Document? - Correct Answer-- In-service Date
- Location
- Responsible person
- Initial Dates
- Inventory date
- Residual value
- Accumulated depreciation
What are the data elements of Sales Documents? - Correct Answer-- Final disposition method
- Sale, reutilization, or disposal date
- Recipient
- Amount received (as applicable) What factors of an organization determine what property is controlled? - Correct Answer-- Business needs
- External regulatory requirements
- Tax reporting
- Type, value, and volume of property
- Info for capital investment planning
- Effect of threshold or indirect cost recovery
- Cost of business including insurance, storage, etc.
- Level of confidence and fiduciary reporting responsibility
- Current Levels of compliance vs. desired level
- Technical capabilities of on-line data systems
- General accepted business practices
- Staffing resources
- Good business practices for management resources
- Cost of control compared to the potential cost of a loss
What are infrastructure assets? - Correct Answer-Long-lived capital assets that may be in service for an extended period (normally stationary) as an example: road, bridges, dams, and water/sewage systems What is compliance? - Correct Answer-Process of satisfying the requirements defined by a sponsor agreement or legislated regulation. It also refers to satisfactory following organizational established policies, procedures, and operational guidelines. What are reports? - Correct Answer-Reports are a tool for verifying and measuring compliance with established standards, identifying trends in system performance, exposing potential areas of concern, and highlighting exceptional levels of compliance. They are also a means which the effects of implementing changes to processes can be understood and evaluated. Activity Report - Correct Answer-Provide information by which the performance of the property function is evaluated. Financial Reports - Correct Answer-May include depreciation reports, for both depreciation expense and accumulated depreciation, quarterly financial activity reports, year-end reconciliation reports, and inventory reports. Compliance Reports - Correct Answer-Reports which are specifically required by senior management within the organization or by a sponsor
Ad Hoc Reports - Correct Answer-The ability to generate specific queries based on data entered in the property database. A very effective tool for responding in a timely manner to unique or new queries which are not addressed by existing reports. Communication vs. Training - Correct Answer-Communication and training are in many ways inseparable, it is useful to think of training as structured communication presented to target group or individual. What are the benefits of an effective property function? - Correct Answer-- Maximize Return of Investment
- Facilitate Compliance
- Maximize Reutilization
- Depreciation Expense Maximize Return on Investment - Correct Answer-Ensure the maximum useful life of a piece of equipment is achieved through adequate control, protection, preservation and maintenance. If successful, reduces unnecessary replacement of items and facilitates long-term budgeting and replacement/upgrade planning. Facilitate Compliance - Correct Answer-Compliance ensures a smooth- running operation and reduces the potential for error
Maximize Reutilization - Correct Answer-- Provides optimum opportunity for the reutilization or reallocation of property that has reached the end of its useful life.
- Minimize redundant purchases and permit departments with limited budgets to obtain additional or "new" property for use.
- Reduces the volume of disposal, leading to greater environmental consciousness. Depreciation Expense - Correct Answer-Writing off of depreciation expense against gross income is a major financial benefit to an organization that is eligible to depreciate it property. What does Depreciation Expense take in account when calculating this type of expense? - Correct Answer-- Nature of the equipment and buildings
- Their respective useful lives
- The cost basis ( how the actual cost of the property was determined)
- The depreciation basis Other names for Property Control - Correct Answer-- Property accounting
- Fixed-asset accounting
- Inventory Control
- Material/Property Control
- Asset Management
Name five types of transactions which require an entry/update to a property record? - Correct Answer-- Protection
- Preservation
- Utilization
- Maintenance
- Dispostion What are the two key decisions to be made when defining the "control" population of property within an organization? - Correct Answer-- What is to be controlled?
- To what level of detail will it be controlled? What is the cornerstone of effective property control? - Correct Answer-- Communication
- Training What are an excellent communication tools when dealing with property? - Correct Answer-Reports, either route or ad hoc for special purposes What does FAR 52.245- 1 - Government Property (FAC 2005-56, April 2012) (Ref, (f) about the acquisition of property? - Correct Answer-The Contractor
shall document that all property was acquired consistent with its engineering, production planning and property control operations What is acquisition? - Correct Answer-- The act of acquiring
- The acquiring of property or services by contract with appropriated funds through purchase or lease, whether the property or services are already in existence or must be created, developed, demonstrated, and/or evaluated. What defines the acquisition process? - Correct Answer-The organization's policies and procedures Why does acquisition require a great deal of discipline? - Correct Answer-It involves the expenditure of organizational funds and management tools must be put in place and maintained to ensure compliance with those policies and procedures When does the acquisition process begin? - Correct Answer-When needs have been defined What are some additional steps in the acquisition process? - Correct Answer-- Establishment of requirements to satisfy the needs
- Obtain approvals
- Solicitation and selection of sources
