Chapter 5: Asset and Financial Management
Improve Personal Property Management at State Agencies
Summary
State agencies own personal property worth an estimated $7.8 billion, yet the state has no training or certification requirements for the employees who manage these public resources. To make sure that these resources are managed expertly, state law should be amended to require certification for the property managers of large state agencies and create incentives for professional certification. State law also should create a job classification structure for property managers.
Background
State agencies are required by law to designate a property manager for their personal property.[1] Personal property includes items such as computers, office furniture, vehicles and equipment. At this writing, 205 agencies report they own nearly 1.4 million items of personal property with a total value of $7.7 billion, based on the original purchase price (also called the “historical cost”). Thirty-four agencies own 10,000 or more property items, representing 79 percent (worth about $6 billion) of all personal property owned by the state.[2]
Respondents to a 1998 Comptroller’s survey of state property managers reported that none were professionally certified in property management. The survey also showed significant differences in their compensation, with annual salaries ranging from $16,412 to $59,000.
State classifications for property managers include Inventory Coordinator I ($24,432-$31,068 per year) and Inventory Coordinator II ($27,540-$35,100 per year). In some agencies, property managers with other duties may earn higher salaries. Of the agencies with 10,000 or more property items, only two reported in the 1998 survey that they pay their property managers less than $40,000 per year.[3] In all, most state property managers are paid reasonably well compared to other state employees, yet none are required to meet any professional requirements to hold their jobs.
According to the state’s job descriptions, an Inventory Coordinator I performs advanced stock and inventory supervision. This job involves preparing reports, reviewing warehouse operations for compliance with procedures, and supervising and/or training employees. The coordinator works under minimal supervision with considerable latitude for the use of initiative and independent judgment.[4] An Inventory Coordinator II performs highly advanced stock and inventory supervision. This involves overseeing and maintaining property inventory records and physical inventories, processing purchase requisitions and specifications, disposing of surplus property, and supervising or training employees. Again, the coordinator works under minimal supervision with extensive latitude for use of initiative and independent judgment.[5]
Recently, the National Property Management Association (NPMA) [http://www.npma.org], the nation’s only property management certification authority, began offering a nationwide certification program. NPMA tests managers in nine essential skills: storage, movement, physical inventory, consumption, utilization, maintenance, subcontractor control, disposition, and contractor closeout.
NPMA offers three levels of certification:
Certified Professional Property Specialist (CPPS), for new property managers specializing in a specific area such as shipping, receiving, or inventory.
Certified Professional Property Administrator (CPPA), for property managers with at least three years’ experience in a variety of work settings in at least five of the nine property management skills listed above.
Certified Professional Property Manager (CPPM), for property managers with at least six years of experience, including four in decision-making or management. CPPMs are recognized experts in property management.[6]
Recommendations
A. State law should be amended to require property managers employed by the 34 state agencies that own 10,000 or more personal property items to be certified by the National Property Management Association (NPMA) or a similar entity at a minimum level of (or equivalent to) Certified Professional Property Specialist.
To ensure effective management of public resources, property managers for the 34 agencies with 10,000 or more pieces of personal property should be certified at least at the CPPS level. Only two of these agencies now employ a property manager with CPPS certification. Properly certified property managers should be able to save the state money by instituting more efficient and effective asset management practices.
B. State law should be amended to create a career ladder for all state agency property managers.
A career ladder would provide an incentive for all property managers to work toward certification. The state should base its classification structure for property managers (Exhibit 1) on the NPMA’s certification levels.
Exhibit 1
Proposed State Agency Classification Structure for Property Managers
|
Title
|
Certification
|
Salary
Schedule
|
Minimum
Salary
|
Maximum
Salary
|
|
Property Manager I
|
CPPS*
|
Group B4
|
$24,432
|
$31,068
|
|
Property Manager II
|
CPPA*
|
Group B8
|
$31,068
|
$39,708
|
|
Property Manager III
|
CPPM*
|
Group B12
|
$39,708
|
$52,766
|
* or equivalent
Source: National Property Management Association and Texas Comptroller of Public Accounts.
State agencies with 10,000 or more personal property items should require CPPS certification for property managers no later than August 31, 2002. Agencies should be allowed to raise salaries for property managers who become certified beyond the required level.
Fiscal Impact
The affected state agencies may incur additional salary and training costs, but these costs should be offset by better property management. No new funds should be needed.
Endnotes
[1] Texas Comptroller of Public Accounts, State Property Accounting Manual (Austin, Texas, August 1999) (http://www.window.state.tx.us/comptrol/san/fmmanuals/spa_ppm/spapp_02.html). (Internet document.)
[2 ] Texas Comptroller of Public Accounts, “State Property Accounting System,” Austin, Texas, August 2000. (Computer printout.)
[3] Texas Comptroller of Public Accounts, State Property Accounting User Group Job Survey, Austin, Texas, April 1998.
[4 ] Texas Department of Human Services, “Inventory Coordinator I,” Austin, Texas, October 12, 2000 (http://www.hr.state.tx.us/HRTopics/CompBene/HRTopicsCompBene-F.html). (Internet document.)
[5 ] Texas Department of Human Services, “Inventory Coordinator II,” Austin, Texas, October 12, 2000 (http://www.hr.state.tx.us/HRTopics/CompBene/HRTopicsCompBene-F.html). (Internet document.)
[6 ] National Property Management Association, “NPMA Certification” (http://www.npma.org/certpg1.html). (Internet document.)
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