National Property Management Association Physical and Electronic Inventory Verification ASTM Standard E2132 July 27, 2011 Rick Shultz, CPPM CF Johns Hopkins University Applied Physics Laboratory Enterprise Asset Manager 1

National Property Management Association Topics  History  Inventory ?  The Standard  Recent Changes  The Future 2

National Property Management Association History  2001: Designated E2132  2007: Reapproved (limited changes)  2007: First attempt (negatives received)  2008: Second attempt (negatives received)  2010: Third attempt (negatives received)  2011: Forth attempt (negatives received)  2012: ???????? 3

National Property Management Association Inventory Do you have inventory? Or do you do inventory?

National Property Management Association Inventory  Inventory - itemized catalog or list of tangible goods or property, or the intangible attributes or qualities (The Business Dictionary)  A Noun…  What we have, not what we do…

National Property Management Association Scope of the Standard This practice covers inventory verification which includes either physically or electronically confirming the existence and location of an item. While the focus of this standard is on equipment, it may also be used for material and other types of property.

National Property Management Association Physically or electronically confirming the existence and location of an item Inventory Verification

National Property Management Association Physical Inventory Verification Physically confirming the existence and location of an item

National Property Management Association Electronic Inventory Verification Electronically confirming the existence and location of an item

National Property Management Association Significance and Use Inventory verification is conducted to accomplish one or more of the following: Assess the accuracy of property records including the records associated with the acquisition and disposition process, especially transfers of large numbers of items, Update property records, Assess property loss experience, Identify process inconsistencies, Provide the status of the verified property for reporting purposes.

National Property Management Association Inventory Verification Planning  Management and Accountability  Key Results Required  Population  Independence  Data Requirements  Validation Techniques  Resources  Information Management  Training and Communication

National Property Management Association Inventory Verification Procedure  Conduct the inventory verification in accordance with the written inventory verification plan and/or established property management procedures.

National Property Management Association Inventory Verification Reconciliation  Compare the various data elements collected during the inventory verification process against the official records.

National Property Management Association Inventory Verification Reconciliation  This identifies: Property records in which the data is either accurate or minor changes are required. Property recorded in the official record and not located during the inventory verification. Property inventoried in a location different than the location identified on the official record. Property verified for which there is no official record.

National Property Management Association Inventory Verification Results  Loss rate  Overages  Shortages  Accuracy rate

National Property Management Association Interpreting Inventory Verification Results  This is where the value of the Inventory Verification to the entity is determined.  What is your target (or expected) accuracy rate?

National Property Management Association Reporting Inventory Verification Results  If no one knows the results, … it’s a tree falling in the woods…  Reporting levels Raw data Summary data Analyzed data = Actionable Information

National Property Management Association Negative Comments from 2010  Reads like a white paper  5.5 Independence – too restrictive  8.2 – too absolute – forced the use of ATM 2131 (Standard Practice for Addressing and Reporting Loss, Damage or Destruction)  10.2 – the statement should not be so absolute.

National Property Management Association Latest Negative Comments  Confusing – poorly edited  Poorly written and now a little confusing  Why have the term Inventory Verification Campaign All of the comments were focused on the Scope and Terminology

National Property Management Association SCOPE Justifying the major change…..  From v7 to v8 – added wording  From v8 to v9 – removed some wording

National Property Management Association The Future  Re-ballot near future  Ongoing process  Future questions to address: When must Inventory Verifications be done? When is the issue not accuracy of existing records? What if the records are verified 98% accurate? What if you didn’t have to do periodic inventory verifications?

National Property Management Association Thank you! Rick Shultz JHU/APL