NPMA CPPS Certification Study Test
Questions and Correct Answers
(Graded A+)
Property must have this to define, implement, and maintain business processes that
may touch every level of the org. - Answer-adequate authority
It is critical that property receives this necessary to ensure its policies, procedures, and
guidelines are viewed as value added and important to conducting everyday business -
Answer-visibility and management support
Adequate visibility and management support are attained - Answer-Its usually through
external compliance requirements and persistent communication about the impact of
effective property control that
How the staff is organized and how their respective responsibilities are delineated. -
Answer-Org Structure within the property function refers to
their ability to conduction every business while providing the service and support that
property must offer its internal and external customers - Answer-Org structure within
property directly impacts
Centralized vs decentralized
Combo of central with support from decentralized network of property custodians
single individual responsibility vs fully staffed property division or department
Functional groupings within the department by business process, support to business
team, area of specialty, type of property, etc - Answer-Characteristics to consider when
implementing the structure of a property system
- Type and volume of property managed
- Compliance requirements and risk
- current levels of compliance vs desired level of compliance
-geography of service areas
- number of and skill sets of property staff
-complexity of business processes and data mgmt systems
- financials resources
- time available to be dedicated by people who have property responsibility through the
org - Answer-Key factors in deciding which property structure model to use
, CFO, Controller, PM, PMO, Directors, Departmental property administrator, prop
custodian, asset (end) users, physical inventory group - Answer-Key participants in
property management
ensuring an effective property control system is established and maintained. - Answer-
PMO has the responsibility of
is crucial to the entire process. - Answer-Records
the existence of all property under the jurisdiction of the PMO is established and
verified. - Answer-It is through records that
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. - Answer-
Property records are updated
for the life of the asset - Answer-Usually necessary to retain all purchase documentation
for
a department head, manager or custodian. OPP defines who is responisible - Answer-
Normally, the responsibility will remain with who
all costs associated with an item including shipping, taxes, and installation. - Answer-
Acquisition cost includes
business, regulatory and contract agreement needs - Answer-Determination for what
needs to be controlled is determined by
What will be controlled, to what level of detail will it be controlled? - Answer-Two key
questions when determining the control population of property
satisfactorily following the orgs established policies, procedures and operational
guidelines. - Answer-Compliance refers to
the size and complexity of the org. - Answer-Level of formality and details of policies,
procedures and operational guidelines is dependent on
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 - Answer-Potential consequences of non-compliance
include
Questions and Correct Answers
(Graded A+)
Property must have this to define, implement, and maintain business processes that
may touch every level of the org. - Answer-adequate authority
It is critical that property receives this necessary to ensure its policies, procedures, and
guidelines are viewed as value added and important to conducting everyday business -
Answer-visibility and management support
Adequate visibility and management support are attained - Answer-Its usually through
external compliance requirements and persistent communication about the impact of
effective property control that
How the staff is organized and how their respective responsibilities are delineated. -
Answer-Org Structure within the property function refers to
their ability to conduction every business while providing the service and support that
property must offer its internal and external customers - Answer-Org structure within
property directly impacts
Centralized vs decentralized
Combo of central with support from decentralized network of property custodians
single individual responsibility vs fully staffed property division or department
Functional groupings within the department by business process, support to business
team, area of specialty, type of property, etc - Answer-Characteristics to consider when
implementing the structure of a property system
- Type and volume of property managed
- Compliance requirements and risk
- current levels of compliance vs desired level of compliance
-geography of service areas
- number of and skill sets of property staff
-complexity of business processes and data mgmt systems
- financials resources
- time available to be dedicated by people who have property responsibility through the
org - Answer-Key factors in deciding which property structure model to use
, CFO, Controller, PM, PMO, Directors, Departmental property administrator, prop
custodian, asset (end) users, physical inventory group - Answer-Key participants in
property management
ensuring an effective property control system is established and maintained. - Answer-
PMO has the responsibility of
is crucial to the entire process. - Answer-Records
the existence of all property under the jurisdiction of the PMO is established and
verified. - Answer-It is through records that
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. - Answer-
Property records are updated
for the life of the asset - Answer-Usually necessary to retain all purchase documentation
for
a department head, manager or custodian. OPP defines who is responisible - Answer-
Normally, the responsibility will remain with who
all costs associated with an item including shipping, taxes, and installation. - Answer-
Acquisition cost includes
business, regulatory and contract agreement needs - Answer-Determination for what
needs to be controlled is determined by
What will be controlled, to what level of detail will it be controlled? - Answer-Two key
questions when determining the control population of property
satisfactorily following the orgs established policies, procedures and operational
guidelines. - Answer-Compliance refers to
the size and complexity of the org. - Answer-Level of formality and details of policies,
procedures and operational guidelines is dependent on
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 - Answer-Potential consequences of non-compliance
include
