CPPB - Certified Professional Public Buyer Asset Management and Disposal Questions and Answers

Question 1

A public works department declares one of its five-year-old sedans as no longer needed for its operations.
The vehicle is in good working condition.
What is the MOST appropriate first step for the asset manager to take?

Accepted Answer

Transfer the vehicle to another agency department that has a documented need for it.

Answer

Send the vehicle to a public auction to generate revenue.

Answer

Donate the vehicle to a qualified local non-profit organization.

Answer

Offer the vehicle as a trade-in on a new vehicle purchase.

Question 2

Which of the following is the primary objective of conducting a periodic physical inventory of a public agency's capital assets?

Accepted Answer

To verify the accuracy of property records, confirm the physical location of assets, and identify any unrecorded disposals or losses.

Answer

To appraise the current fair market value of all assets for insurance purposes.

Answer

To identify assets that are underutilized by staff.

Answer

To determine the remaining useful life of each asset for budget forecasting.

Question 3

A city's IT department has 100 obsolete desktop computers and 50 old CRT monitors that are non-functional. Due to the presence of lead and other hazardous materials, what is the most responsible and compliant method of disposal?

Accepted Answer

Contracting with a certified e-waste recycling vendor who can provide a certificate of destruction.

Answer

Selling the entire lot 'as-is' through a sealed bid process.

Answer

Allowing employees to take the equipment home for personal use.

Answer

Disposing of the equipment in the municipal solid waste landfill.

Question 4

A public transit agency has two identical, aging buses. One bus has a failed engine that is too costly to repair, while the other is operational but requires a specific transmission component that is difficult to source. What asset management strategy would be most cost-effective?

Accepted Answer

Cannibalizing the needed transmission component from the bus with the failed engine to repair the operational bus.

Answer

Repairing the engine on the first bus regardless of the cost to maintain fleet size.

Answer

Selling both buses at auction and using the proceeds for a new bus.

Answer

Scrapping both buses immediately to reduce maintenance liabilities.

Question 5

A public agency is purchasing a new, specialized road grader and wishes to dispose of its old one. The procurement officer determines that the value offered by the vendor for the old grader is fair and will directly reduce the price of the new purchase. This method of disposal is known as a:

Accepted Answer

Trade-in

Answer

Negotiated sale

Answer

Public auction

Answer

Sealed bid

Question 6

What is the primary financial objective of a well-managed surplus property disposal program for a public agency?

Accepted Answer

To maximize the net financial return to the agency from the sale of assets.

Answer

To dispose of all surplus items as quickly as possible to free up storage space.

Answer

To prioritize donations to other governmental entities and non-profits.

Answer

To minimize the administrative workload for the procurement department.