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Internal Property Audits

GDAIS Property Managers

June 14, 2010

NES - 2010

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Welcome / Introductions

Introduction:• Presenters today:

Mark Smith, CPPM Roy DeLauder, CPPM, CF Wendy Latimer, CPPM Glenn Markle, CCPM

Topic:• Conducting self assessment audits at General

Dynamics Advanced Information Systems (AIS).

Thanks for coming.

Questions are welcome at the end.

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What will be discussed today?

• Why conduct a self assessment audit? • What planning goes into conducting a self

assessment audit? (Pre-audit activities)• How do we conduct our self assessment audit? • What happens after the self assessment audit is

completed? (Post audit activities)• What are some lessons learned?• What are the benefits?

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Why Conduct a Self Assessment Audit?

• Yes, we are required to by FAR 52.245-1.– FAR 52.245-1 states; “The Contractor shall

establish and maintain procedures necessary to assess its property management system effectiveness, and shall perform periodic internal reviews and audits”.

• Another requirement, one more box to check off? Is this how you see it?

• It’s more than just a requirement – it’s an OPPORTUNITY.

• Conducting Self Assessment audits has opened more doors for our team and our profession than anything we have done.

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How do we conduct the audit?

Who will audit?

What to audit?

When to audit?

Where to audit?

How to audit?

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Who will audit?

Audit Team• Managers have several major and minor sites• Managers audit each other• Lead auditor is not from the site.

Manager is tasked to support the audit. Provides documents, records, logs, etc.

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(Planning)

Acquisition

Receiving

Identification

Records

MovementStorage

Inventory

ReportsConsumption

Utilization

Maintenance

Subcontractor Control

Disposition

Close-out

Life Cycle of Property

(15 Business Processes)

(Including Buy/Build/Lease Decisions)

Risk/liability

Analysis

Property Management

What to Audit?

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What to audit?

Questions on each Business Process• Canned set of Starter questions • Broken out by role: PM, CA, SCA, Custodian,

Specialist, Material Control, & Security• Interviews

Artifacts (records, logs, inventory results, etc.)• Includes list of contracts, list of all direct purchases

over last 12 months. Etc.• Samples chosen

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When to audit?

Can anything be done before the team arrives on site?• Samples chosen

Communicate to players• Some interviews can be but not all.

Schedule for on-site time:• Interviews / Entrance & Exit briefings• Record to Floor & Floor to Record Checks

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Where to audit?

What contracts are covered by the audit?

????

Managers set 5 or 6 per year?

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How do we audit?

Notify site about 45 days out.

Artifacts posted into a shared file location. – 30 days prior.

Samples picked and communicated.

Entrance and Exit brief scheduled.

Pre-site interviews scheduled.

On-site interviews scheduled.• Focused on touching equipment.

Exit Brief => Final Report 2 weeks after.

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(Planning)

Acquisition

Receiving

Identification

Records

MovementStorage

Inventory

ReportsConsumption

Utilization

Maintenance

Subcontractor Control

Disposition

Close-out

Property Management System

(15 Business Processes)

Risk/liability

Analysis

Property Management

Exit Brief/ Final

Report

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Audit Finding 1Business Process - Receiving

While conducting interviews, it was communicated that there are no procedures that are being used for performing the receiving process.

Reference Document: PPQ-PRO-5.2

Assigned to: Al Thomas

13Final Report

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Results

Lots of Audit Information Provided• Our Methods comply with the FAR• We touch every business process

Through Interviews and Artifacts Process is thorough Results can be reviewed by any Property

Administrator (Online Repository)

Every Stakeholder/Key Player has a role and the importance of their role is realized

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Results

We know the health of our Property Management System

We have a way to capture areas that need improvement and follow up until closed. (Next Slide is an example of fields in our correction action log)• Training• Procedures

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Corrective Action Log

Finding Number: Example: PMO001

Division

Description

Corrective Action Type (Tools, Execution, Procedures, Training)

Documented By

Finding Date

Site/Program

Assigned to

Manager of Assigned to

Status

Due Date for CAR Completion

Date Closed

Notes/Comments

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Results

Most Important part of the audit is to Capture Observations and Findings and FOLLOW UP!!• There has to be a system/tool to document the

findings• There has to be a person continuously following up

on the status of the corrective actions• There must be a history of what was done and how

it was improved (we often look at that area again to see if the corrective action worked)

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Lessons Learned

Gain Upper Management Support!

Have Someone Designated as the Audit Lead/Audit Chair

Be Prepared

Be Organized

Be Ready for Pushback• I need a charge number• I don’t have time for this• Blah, Blah, Blah!

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Lessons LearnedDo what you can by telephone

Assign Interviews to the Auditors and let them schedule and coordinate their portion of the audit.

Have daily meetings and post whatever you can on a daily basis.

We didn’t get to this point overnight!• Communication with Audit Team• Communication with Sites and Participants• Teamwork

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Questions?

Thank you!!

Mark Smith, Greensboro NC 336-698-8834

Roy De Lauder, Fairfax VA, 703-277-1529

Glenn Markle, Santa Clara CA, 650-966-3802

Wendy Latimer, Washington DC 240-427-7230