||Property Management Standard Written into Texas Appropriations
Texas state agencies and universities can avoid cuts in budgeted
funds by reporting lost or damaged property according to ASTM
E 2131, Standard Practice for Assessing Loss, Damage, or Destruction
(LDD) of Property. Article 9.03, a new rider to the state appropriations
bill that passed in June, authorizes the Comptroller of Public
Accounts to withhold 50 percent of lost property value exceeding
the ASTM standard.
Article 9.03 states, The Comptroller shall withhold from the
General Revenue Funds appropriated to the state agency or institution
of higher education by this Act an amount equal to 50 percent
of the value of the lost property provided that the loss falls
outside the standards promulgated by the American Society for
Testing and Materials. If a state agency or institution of higher
education subsequently recovers or accounts for lost property
to the satisfaction of the Comptroller, the Comptroller shall
release to the state agency or institution of higher education
a proportional amount of previously withheld General Revenue Funds.
ASTM Standard E 2131 on Assessing Loss, Damage, or Destruction
of Property provides a much needed benchmark for property managers,
said Gary Quinn, property manager, General Services Division,
Texas Department of Transportation, Austin. For years, many property
managers had to research and make a case for themselves and to
their management for what was an acceptable level of loss, damage
or destruction of property. The ASTM standard provides the needed
benchmark to use for management purposes.
The rider in the Texas Appropriations Bill was initially more
severe when it was first proposed, Quinn explained. It simply
stated that funds in the amount of 50 percent of the lost or stolen
property would be withheld from a state agencys appropriation
each year. Subsequent to the publishing of ASTM Standard E 2131,
the rider was amended to only penalize agencies that did not
meet the standard. Most agencies in the state of Texas are within
the standard. The standard, in effect, provides not only the benchmark
for all agencies to achieve, but a financial incentive.
Standard E 2131 was developed by ASTM Committee E53 on Property Management Systems. E53 vice-chairman Lyle Hestermann,
property manager, Capital Resources, Raytheon, Ft. Wayne, Ind.,
said, A vital indicator of the overall health and effectiveness
of a property management system is the amount of loss, damage
and destruction (LDD) that occurs; it follows that the amount
of LDD is also a key datum of risk management. The state of Texas
adoption of the LDD standard within a few short months of its
being published is a clear sign of the relevance and importance
of this and other property related standards.
I feel the recent actions of the State of Texas and the U.S.
Department of Energy are evidence that government is moving in
the right direction, affirmed Stephen J. Michelsen, executive
vice president, National Property Managers Association. However,
this represents only a fraction of the public and private organizations
which could adopt the ASTM E53 standards into their internal measurement
and control systems. We believe that the broader recognition of
these standards would allow organizations to evaluate their performance
in terms of goals which are of consensus value and to measure
their performance in achieving those goals by using professionally
For further technical information, contact Lyle V. Hestermann, Property Manager, Capital Resources, Raytheon, Ft. Wayne, Ind.
(phone: 219/429-4082). For Committee E53 meeting or membership
details, contact Pat Picariello, ASTM (phone: 610/832-9720). //
Copyright 2001, ASTM