1. 1 Internal Property Audits GDAIS Property Managers June 14, 2010 NES - 2010 1

2. 2 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. 2

3. 3 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? 3

4. 4 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. 4

5. 5 How do we conduct the audit? Who will audit? What to audit? When to audit? Where to audit? How to audit? 5

6. 6 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. 6

7. 7 (Planning) Acquisition Receiving Identification Records Movement Storage Inventory Reports Consumption 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? 7

8. 8 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 8

9. 9 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 9

10. 10 Where to audit? What contracts are covered by the audit? ???? Managers set 5 or 6 per year? 10

11. 11 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. 11

12. 12 (Planning) Acquisition Receiving Identification Records Movement Storage Inventory Reports Consumption Utilization Maintenance Subcontractor Control Disposition Close-out Property Management System (15 Business Processes) Risk/liability Analysis Property Management Exit Brief/ Final Report 12

13. 13 Audit Finding 1 Business 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 13 Final Report

14. 14 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

15. 15 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

16. 16 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

17. 17 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)

18. 18 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!

19. 19 Lessons Learned Do 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

20. 20 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