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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
- Utilizing Government property
- Maintenance
- Property close-out 52.245-1(f)(iii) requires that contractor's plan allow for the creation and maintenance of records for each item of Government property in the contractor's possession. What are the required data elements for each record? - correct answer - 1) The name, commercial part number and description, manufacture, bulk identifier, model number, and National Stock Number
- Quantity received or fabricated, issued and balance on hand
- Unit acquisition cost
- 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 What is an excellent resource in assisting with establishing self- assessment into the contractor's property management plan? - correct answer - The ASTM International Standard E2452-05, Equipment Management Process Maturity (EMPM) Model What does 52.245-1 (g) (1) grant the Government the right to do?
- correct answer - It provided the right to review, inspect, and evaluate the contractor's property management system, procedures, records, and supporting documentation. What does paragraph 52.245-1 (h), Contractor Liability for Government Property allow the COR to do if any discrepancies are not corrected in manner accepted by the GPA? - correct answer - The COR may revoke the Government's assumption of risk
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 What is property audit? - correct answer - A systematic, objective review and evaluation of an organization's property control system. What are the benefits of a property audit? - correct answer -- Minimizing waste
- Improving customer service
- Safeguarding organizational assets What forms the foundation of the property control system? - correct answer - Written procedures While stating the audit's objective, what must not enter into the audit in any way? - correct answer - Bias which is a predisposition toward a finding or in the choice of objectives
_ 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
- Auditor has a good understanding of the processes involved
- Audit's objectives have been stated
- Attributes and transactions to be tested have been determined
- The population and sampling unit have been defined
- The acceptance and rejection rates have been specified
- Sample size has been determined
- Random sample has been selected What may the audit procedure entail of an extensive review of? - correct answer -- Manual or automated records
- 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
- How the audit was conducted
- Any findings and observations that resulted from the audit Who should the audit report be distributed to? - correct answer -- Managers of the areas that were included
- Upper Management
- To the individuals who directed the audit to be performed What are the three values of system analysis? - correct answer -- Integrity - core value of auditor's code
- Independence - indispensable for auditors
- Objectivity and impartiality - Conclusions in opinions and reports, based on evidence obtained and assembled in accordance with auditing standards applied
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
- Property taxes
- Financial statement reporting
- Asset replacement planning
- Mergers or divestiture of organization units
- Effect disposal What is Appraisal also known as? - correct answer - Valuation What is a professional appraiser defined as by USPAP? - correct answer - One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective What must be included in the description of an asset in order to arrive at a correct value? - correct answer - All relevant characteristics
- 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
How is assessed value determined? - correct answer - Assessors base value for tax purposes on fair market value multiplied by a factor. For an example: Assessed value multiplied by appropriate local tax rate it produces the amount of tax payable What data does historical cost include? - correct answer - The amount paid to acquire an asset and make it ready for use. When information is not available, it may be necessary to estimate. What is reverse indexing when determining historical cost? - correct answer - It is an approach to estimating historic value by comparing current value of similar properties with comparable age. What index must be used to determine adjustments for inflation from the date of purchase? - correct answer - Inflationary index such as Consumer Price Index
