Property Management Exam: CPPS - Module 1, Chapter 1, Exams of Advanced Education

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CPPS - Module 1, Chapter 1 Property

Management Exam

Property Management Office (PMO) - Answer- Department within an organization that is responsible for controlling or managing property. Responsible for establishing, guiding, managing, and maintaining an efficient property system, communicating effectively with other departments and functions, and developing and presenting training in subjects relating to property. Responsibility of Property Management Office - Answer- Establishment and maintenance of a property control system. A property control system is comprised of property management personnel, processes, and management information system (MIS). Ownership - Answer- Having legal or rightful title to property. Accountability - Answer- To possess and have use of the property of another with delegated duties and responsibilities, subject to penalty in case of default. Note those "accountable do not have legal or rightful title to the property. Key elements of property accountability are:

• Provider
• Recipient
• Specific duties and responsibilities
• Specific penalties in case of default Transfer or Accountability - Answer- May or may not involve physical relocation of an asset. Responsibility - Answer- To be answerable for a trust or obligation. Responsibility vs Accountability - Answer- The key distinction from a property professional's standpoint is that one is accountable to someone for the property, and is responsible for certain actions (such as maintenance or storage) related to the property. Property Control System - Answer- Comprised of written policies, procedures, operational guidelines, and related records as well as the management information system (MIS) that facilitates performing those functions. System must incorporate methods for safeguarding the physical assets of an organization, for periodically verifying the existence, status and condition of the property, and for ensuring the accuracy of related records.

Property Management Office (PMO) Responsibilities - Answer- Establish and maintain effective and efficient processes for managing the assets used in support of the objectives and mission of the organization. It must ensure assets owned by the organization or for which the organization is accountable are adequately controlled, protected, preserved and maintained to maximize their useful life and provide the best possible return on investment. 15 Functional Areas of Property Management - Answer- 1. Acquisition

2. Receiving
3. Identification
4. Records
5. Reports
6. Storage
7. Movement
8. Audits
9. Physical Inventory
10. Consumption
11. Utilization
12. Maintenance
13. Subcontractor Control
14. Disposition
15. Contract Closeout Departmental Property Administrator - Answer- In charge of the property within a unit or department. This is the individual who consolidates the property activity of the department and informs property management via transactions recorded in the property database. These transactions include acquisition, utilization and disposition (receipt, identification, movement, etc). Property Custodian - Answer- Typically the person who is responsible for the assets within a group and who must instruct users of their role and responsibilities while property is in care, custody and control of an end user. Asset Users or End Users - Answer- Must be assigned the task of reporting receipt, identification, movement, disposal, maintenance and other events, either through system transactions or verbal communication, in support of proper property management. Asset users and property custodians are the eyes and ears of the property manager or property management organization. Physical Inventory Group - Answer- Tasked with physically inventorying the property within the organization or program. Inventory personnel are responsible for verifying the existence of property, confirming serial number, location and gathering value added information (such as condition, location, identification or is the item excess) location, and identification) by locating the property within the organization and with identifying discrepancies, such as non-located or miscounted property.

Internal Audit Department's Role - Answer- To ensure established processes are being followed and the organization is compliant with both internal policies and procedures and applicable external regulations. Elements of a Property Record - Answer- • Asset identification

• Asset description
• Manufacturer
• Serial number
• Model number
• Asset location
• The assignment of responsibility for the asset
• Asset acquisition cost/date
• Acquisition method and reference (purchase order, donation, etc.)
• The date of receipt
• Financial codes Two key decisions when defining the "control" population of property within an organization. - Answer- 1. What will be controlled 2. To what level of detail will it be controlled. Cornerstone of Property Control - Answer- Communication and training