Npma Cpps Certification Exam Questions With Correct Answers

NPMA CPPS CERTIFICATION EXAM QUESTIONS WITH CORRECT ANSWERS Key participants in property management - Answer-CFO, Controller, PM, PMO, Directors, Departmental property administrator, prop custodian, asset (end) users, physical inventory group PMO has the responsibility of - Answer-ensuring an effective property control system is established and maintained. Records - Answer-is crucial to the entire process. It is through records that - Answer-the existence of all property under the jurisdiction of the PMO is established and verified. Property records are updated - Answer-during the entire life cycle of property items according to the record keeping requirements for each type of property and the orgs policies and procedures. Usually necessary to retain all purchase documentation for - Answer-for the life of the asset Normally, the responsibility will remain with who - Answer-a department head, manager or custodian. OPP defines who is responisible Acquisition cost includes - Answer-all costs associated with an item including shipping, taxes, and installation. Determination for what needs to be controlled is determined by - Answer-business, regulatory and contract agreement needs Two key questions when determining the control population of property - Answer-What will be controlled, to what level of detail will it be controlled? Compliance refers to - Answer-satisfactorily following the orgs established policies, procedures and operational guidelines. Level of formality and details of policies, procedures and operational guidelines is dependent on - Answer-the size and complexity of the org. Potential consequences of non-compliance include - Answer-Increased serveillance and potentials findings by internal/external auditors -The need to implement and monitor corrective action plans -Increased liability and financial risk -increased insurance costs -damaged credibility with customers -Increased borrowing costs Generating reports is - Answer-one of the most important and frequently used means by which info about property location, volume, and utilization is communicated. Reports are a tool for - Answer-verifying and measuring compliance with established standards, identifying trends in system performance, exposing potential areas of concern, and highlighting exceptional levels of compliance. The effects of implementing changes to processes can be understood and evaluated Activity Reports - Answer-provide info by which the performance of the property function is evaluated. -provide mgmt tools for monitoring the effectiveness of the processes. -early detection of a problem Financial Reports - Answer--these may include depreciation reports -quarterly financial activity reports -year end reconciliation reports -inventory reports Compliance reports - Answer--specifically required by senior mgmt within the org, or by sponsor -or in response to regulatory requirements (legislative activity) -NOT optional System monitoring reports - Answer-monitor the behind the scenes database fucntions essential for an online system to work. -include verification of successful periodic data feeds or interfaces with other systems, evaluation of user access to systems and notification of system errors Utilization/Reutilization reports - Answer-measures how effectively the org is using and re-using its assets Exception reports - Answer-identifies errors and omissions in data that must be manually monitored and corrected. Loss, Damage and Destruction LDD Reports - Answer-address specific incidents that must be reported to the legal authorities, risk mgmt and or sponsors Data Summary Reports for Tax Purposes - Answer-Detailed property records which provide audit-able back-up for depreciation expense, an important component of cost used in reporting federal and state taxes. In addition, aid assessors in determining property taxes based on where assets are located. Ad Hoc Reports - Answer-useful when impact studies are conducted in prep for business process changes. -Effective tool for responding in a timely manner to unique or new queries that use data on record but which are not addressed by an existing report. Communication and training are - Answer-the cornerstone of effective property control system