Download CPPA Module 4 Exam Questions and Answers: Government Property and more Exams Property Law in PDF only on Docsity!
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What is expected life of equipment generally at stated in FAR? - correct answer - one year or more What does Unique Federal Property exclude? - correct answer - material, special test equipment (STE), special tooling (ST), real property, and equipment Generally, supporting contract administration should not be used for subcontracts unless what? - correct answer -- Government would otherwise incur undue cost
- Successful completion of the prime contract is threatened
- Subcontract is part of a major systems acquisition and special surveillance is needed on high-risk or critical subsystems What are the three property clauses in effect as of this writing? - correct answer - 1) 52.245-1 Government Property
- 52.245-2 Government Property (Installation Operation for Services)
- 52.245-9 Use and charges What does 52.245-1 (f) require the contractor to develop? - correct answer - Property management plans at the contract, program, site, or entity level to enable :
- Acquisition of property
- Receipt of Government property
- Records of Government property
- Physical inventory
- Subcontractor control
- Reports
- Relief of stewardship responsibility
- Location
- Disposition
- Posting reference and date of transaction
- Date placed in service What does 52.245-1 (f) (vi) require the contract to do upon an incident of loss, damage, destruction and theft? - correct answer - Must report the incident to the GPA as all the facts are known or when requested by the GPA What must the report required by 52.245-1 (f) (vi) include? - correct answer - 1) date of the incident
- name, description, manufacturer, model number, and National Stock Number, if applicable
- the quantity
- unique item identifier
- accountable contract number
- statement concerning current and future need
- acquisition cost
- all known commingled property
- cause and corrective action taken to prevent further recurrence
- statement that the Government will receive and reimbursement covering the loss, damage, destruction, or theft in the event the was or will be reimbursed or compensated
- copies of supporting documentation What does 53.245-1 (f) (3) stipulate for the contractor to do? - correct answer - To establish and maintain a process for assessing the effectiveness of its property management system and must conduct periodic internal reviews and audits
- Specify Acceptance and Rejection Rates
- Determine the Sampling Method
- Select a Sample
- Perform the Audit
- Analyze Defects
- Generalize the Sample to Population
- Determine the Status of the Process that is Under Review
- Issue the Report What is an internal audit? - correct answer -- It is an objective and impartial review of an organization's established polices and systems.
- One that is performed according to well-established rules and procedures
Stating the audit's objectives, defining the attributes or transactions to be tested, defining the population, determining the sampling method, selecting the samples, and analyzing the defects often cannot be reduces to formulae; What must they be accomplished with? - correct answer - With knowledge and good judgement coupled with the highest ethic standards When defects are found, what must their impact be measured against? - correct answer - Their reasonableness, materiality, absolute magnitude, relative magnitude, qualitative attributes, and cause What two benefits does the Property Manager receive in a result of knowing how an audit is organized and conducted and how its results are interpreted? - correct answer - 1. It helps property managers to prepare for an audit
- It provides a guidebook for the ongoing scrutiny, evaluation, and upgrading of the property system
- It should be established before the test, not after What is the most critical step in the performance of a system analysis? - correct answer - The selection of the population What should population be defined as? - correct answer - In terms of what is being measured When should acceptance and rejection rates be determined? - correct answer - Before the audit begins What are three types of generally classified sampling methods? - correct answer -- Statistical
- Judgement _ Purposeful
What is statistical sampling? - correct answer - It is a random sample which is selected from a population for analysis so that the sample is truly representative of the entire population which it was selected What is Judgement sampling? - correct answer - It is sampling based on the auditor's judgement as to determine how many sample items to select and how many defects must be found before and area is classified as deficient What is purposeful sampling? - correct answer - It is a random sampling taken from a population that is known to contain defects How is the appropriate sample size generally determined? - correct answer - By the size of the population and the confidence level desired. What are the necessary steps to ensure are present before the audit is actually conducted? - correct answer -- Some form of property control system exists
- Procedures have been reviewed
- Vendors that are in possession of custom-furnished property
- Disposition practices are in place to include sale and scrap procedures What must the written report be based on? - correct answer - Written notes and not upon the auditor's recollection What might happen if the auditor fails to study the organization's written procedures and be aware of underlying requirements which drive those procedures? - correct answer - Audit findings may be unreliable Before deficiencies found are judges to be defects and audited process is determined to be unsatisfactory, what factors must be considered? - correct answer -- Reasonableness
- Materiality
- Magnitude in Absolute Terms
- Percentage Relationship to Organization Size and Worth
- Percentage Relationship to Asset Base
- Qualitative Attributes
- Causality If the sample was selected randomly, what might the auditor be adequately confident? - correct answer - Deficiencies or defects found are generalizable to the larger population What are some of the rating systems used to label finding during an audit? - correct answer -- Satisfactory
- Unsatisfactory
- Color-coded Scheme
- Percentile Rating What is the standard procedure for issuing a final audit report to management? - correct answer -- Summary of the purpose of the audit
What should auditors not do? - correct answer -- Divulge information which would provide unfair or unreasonable advantage to individuals or organizations
- Divulge information to harm others or benefit themselves What is the central importance of the organization's financial health? - correct answer - The value of an organization's real and personal proprty What do most organizations asset bases exceed and what impact does it have? - correct answer -- Annual payroll in value
- Significant impact which even small changes in cost of acquiring, holding, and disposing of property can have an effect What is the task of Property Management? - correct answer -- To manage the property the organization needs to meet its objectives at the lowest cost
To manage cost, what must a Property Manager for an organization do? - correct answer - Accurately and consistently establish the value of the organization's property What is equally important in how the value of property was attained itself? - correct answer - How the value arrived (determined) What standard governs professional appraiser? - correct answer - Uniform Standards of Professional Appraisal Practice (USPAP) What is valuation? - correct answer - It is the process which the value of an asset is established What are some of the various reasons establishing the value of assets? - correct answer -- Insurance purposes
- Issuing debt (bonds)
- Depreciation
When should valuation be conducted? - correct answer - Following betterment or replacement that increases serviceability and/or useful life What is betterment defined as? - correct answer - Betterment is improvement of personal property; the value is affected only when betterment constitutes a capital event What is replacement defined as? - correct answer - Replacement of internal or external part; the value is affected only when a replacement materially increases the value or estimated useful life of the property Who can provide valuation services? - correct answer - Realtors, bankers, and appraisers What are some of the sources used for valuation? - correct answer -- Invoices
- Manufacturers' price list
- Distributor or supply company catalogs
- Industry publications and trade journals
- Public records and tax assessment records What are the different types of assessing value? - correct answer
- Assessed Value
- Historical Cost
- Insured Value
- Market Value
- Replacement Value
- Salvage/Residual Value
- Scrap Value
