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
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
