Inflation happens to everyone and everywhere, sure there are periods of time when inflation stalls are even declines but overall it has risen in the United States for well over 100 years. There are many different indices that track inflation in the United States and none, that we have found, indicate a prolonged period of flat or declines in the overall inflation rate. With respects to reserve studies we want to track what is most reliable to the end consumer which is often a Condominium/HOA/AOAO Association, Non Profit Organization, Commercial Building Owner, Hotel, Apartment, etc.

Adequately budgeting for reserves is often one of the more difficult tasks our Clients face. Reserve component projects are infrequent and often years down the line, making it very easy to just “deal with it later”.  We have found those that are most successful with reserve budgeting goals typically follow some simple rules. We call it goal setting the ACE way.

The Percent Funded calculation in the reserve study is a measurement of the adequately of the reserve account balance when compared to an idealized amount in the reserve account. This measurement helps a reader of the reserve study come to a conclusion as to the overall health and degree of risk the reserve account balance is currently at. Is there a high risk for reliance on emergency financing and/or deferring projects?  This video goes into the calculation and risk factors at different level of Percent Funded.

The Fully Funded Balance is an important calculation in determining whether the reserve account is adequately funded for future project expenditures. It is essentially an ideal amount that a reserve account would be funded so that the reserve account remains on track for long term expenses that will occur over time. This video delves into the calculation of the Fully Funded Balance.

A reserve study for a church or worship facility is an excellent tool for long term budgeting, an area of the budget which is often overlooked until there is a scramble to raise funds for large project expenses which have come due. Long term budgeting is cheaper, less stressful and puts membership at ease in knowing where their contributions will be spent. 

National Reserve Study Standards dictate that Reserve Specialist' follow four funding principles. They are outlined in this article. 

Common questions and answers we typically receive from our Clients. 

The Fully Funded Balance in a reserve study is often a misunderstood calculation. This presentation will help the reader of the reserve study understand this calculation to a greater degree. 

The percent funded calculation in the reserve study is a useful barameter of the health of the reserve account - essentially how adequatre is the reserve account balance versus an idealized amount at a specific point in time. 

We often see Homeowner's Associations making these mistakes in budgeting for their reserve account: this presentation is a brief overview of these.