Reserve Study Software For Reserve Professionals By Reserve Professionals

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Utilizing software that is mathematically accurate, and which is also adaptable is an extremely important part of completing a reserve study. With so many scenarios we encounter, having flexible software helps us to create comprehensive and adaptable reserve studies.

We frequently see software that has been created for reserve study professionals by ... well… whoever happens to pay a programmer(s) to put something together for them. The helpful mathematical formulas and functions are frequently left out and/or removed simply so a software company can state it is “100% Online” or “Data Backed Up Automatically” (i.e., we keep your data, we limit the functions as they are too difficult and/or costly to add/program, we keep and have access to your Client contacts and keep and have access to your Client information/data). As an old mentor of mine used to say about things that looked great but had little substance "It's all hat and no cattle".

In our opinion, and in today’s world, these are all simply limitations that were once helpful but now are simply preventing you from providing a product to your client that is branded with your company information, your creativity and your expertise as a reserve professional. How do we know this? Because we do reserve studies and know what is important to us and to our clients.

Some of what our Excel based software offers reserve study professionals, looking to stand out, includes (but isn't limited to):

Online Access and Offline Access

The truth is anyone with a Dropbox account, OneDrive account (or various other online platforms) has an online platform that is accessible anywhere with an internet connection. Things are backed up ad nauseam at this point – if you really goof (delete your whole database), they will fix it and generally for a small fee. So, the real question is why software for reserve professionals for the most part does not meet the needs and demand of the end user (reserve study professionals). From our experience it's because the mathematical calculations and logic gates are difficult and take a lot of time and often a lot of money (if you are hiring programmers) to get right. Something that appears to be quite simple from afar gets extremely complicated with several variables (options) being thrown into the mix and when really breaking down to what, when, where and how things are being applied to mathematical models.

Have an internet outage for the day or working in an area with no internet access? Not a problem, excel works offline just as well as online.

Streamline Inspections & Incorporate Your Field Inspection Measurements, Pictures, Maps and Notes into the Reserve Study

Utilize a mobile phone or tablet during the reserve study site inspection and incorporate the information, notes, sketches, measurements, maps and pictures directly into the reserve study. Excel integration between multiple devices is excellent and with a little creativity can streamline the whole reserve study process for you as a reserve professional. Whether you use an apple product, windows product, phone or tablet, we can create an Excel inspection template that simply inputs all your field data into the reserve study.

*Reserve Analyst Insider Tip: Limit double entry and incorporate comments, measurements, maps and pictures into the reserve study by utilizing Excel in the field with or without internet access. Having a drop-down list of common components is extremely helpful and allows the component to simply be pulled into the whole reserve study simply by selecting to fund the component. (see a simple sample form to the right that we often use). Our reserve specialists typically use a waterproof phone or tablet that will back up all the data automatically so doing inspections in inclement weather is no big deal.

We have also found it to be useful to take pictures of maps in the field and place right into the reserve study or utilize for an inspection grid (e.g., where am I, what areas have I looked at, mark where I have been). We have found even in today’s digital age blueprints/schematics, as-builts, landscape plans, are often hard copies in a common area closet. Simply take a pic right into the reserve study while in the field and refer to this map as you proceed with your inspection. Names and measurements can correspond to a map(s) utilized for the inspection.

Want more measurement cells, want more pictures, want more cow bell? We got you. Excel is an exceptional product that we can cater to incorporate inspection sheets into the reserve study for automatic integration.

Additionally having an Excel form, that a client can complete, related to a component responsibility matrix is extremely helpful in determining who is responsible for what components in the community. This responsibility matrix can be a page within the reserve study so no need to double entry and add it back in the office... field work and in-office work can be integrated like never before offered. Measurements, sketches comments, maps, pictures can already be in the reserve study in real time online or offline, an extreme time saver and higher accuracy as limiting transferring data from one file to another or from paper to digital is eliminated.

Convert Pictures to Data Easily - Budgets, Blueprints, Cost Figures, Measurements

Excel has a nifty little feature that allows the conversion of data from a picture into an excel spreadsheet with a simple click of a button. We frequently are provided with hard copies of all sorts of things and being able to convert to data automatically makes importing much easier. This can be a great time saver for the reserve analyst looking to create accurate studies while maximizing efficiency.

*Reserve Analyst Insider Tip: Take a picture of landscape plans, tree schedules, window & door schedules on blueprints in the field with your phone or tablet. Get back to the office and import this picture's visible data. No need to re-enter all the data as Excel will do that all for you. You can also do this with budgets, bids, estimates, etc.

Easily & Efficiently Navigate the Software and the Reserve Study

Long gone are the days of having to navigate through Excel with just tiny tabs at the bottom of the page. The Navigate function is easy to use and makes adding or removing pages into the reserve study (and Table of Contents) a breeze. Go right to a page in the study or to a specific table within a page that you prefer.

Go right ahead and place that page into the reserve study, or not... nobody's watching (well, unless you want them to).

Share Your Reserve Study Online or Offline

Easily share the reserve study Excel file with your customers online and allow multiple people to access with multiple access levels & multiple sharing options. Again, there is no need to try and re-invent the wheel when there is a whole team of people with Excel that have put together an exception quality product that has adapted well to new technologies and as they have emerged (online access, shared files, restrictions placed on shared files, time restricted access, etc.).

You can also just share a table or specific aspect of the reserve study software (view only) with your client. This can be helpful as we have found that people rarely understand the methodologies used.

*Reserve Analyst Insider Tip: Create a client version of the reserve study budget in which things can be adjusted to meet their budgeting needs. This simply extracts the data from the reserve study automatically but does not change your reserve study (which is your independent assessment of the reserve account and recommendations). We include a Boost Your Own Budget Worksheet (screenshot here) with each of our reserve studies in which things like the cost, phasing of projects, timing of projects, inflation, interest special assessments, etc. can all be adjusted to run “what if” scenarios for their budgeting needs. This can be sent as an Excel file or shared online with access privileges (e.g. editing, view only) and even has limitations on a timeframe for which it is accessible to the Client.

Component Database

Excel has database capabilities built-in Power Query and various other Microsoft products like Access or Power BI. If you would like to set up a central component database to use across numerous users, then go right ahead. Some people prefer simplicity, while others would like to scale the process to include numerous people and/or offices. This feature can easily be added later as your company grows from a one-person show to a one-person empire.

Component data template can be in all files from the start or kept in a company wide database and simply pulled into each respective reserve study. Each has its benefits, limitations and complexity but the choice is yours. That is so great about an Excel based system, your choice, your creativity, your success is tied to your decision making and not someone else’s.

Always Updated Software

Excel updates for you automatically, or manually if you prefer. Things are constantly being added by a whole team of people at Microsoft. From pictures to functions and everything in between. Millions of large companies utilize Excel for trillions of dollars in business every year.

Essentially if you can think of it, Excel in one way or another, can most often make it happen. It is our job to turn potential into reality for you as a reserve study professional; updated software, evolving mathematical functions and constantly added functionality are a good first few baby steps to get you there.

Fully Funded Balance Age Adjustments
The Fully Funded Balance (FFB) age calculations (effective ages) for each component will be adjusted if a component received a positive or negative age adjustment, has been set to be delayed, a repeat limit function has been applied, a delay function has been implemented and/or a future date has been utilized. These adjustments are needed so that the fully funded balance mathematical calculation for each component is accurate and appropriately contributes to the total fully balance calculation (located on the executive summary page, projection pages, fully funded balance calculation page, and component details pages) for all components in this reserve study.

Note that the FFB age element of the formula is a cycling number, and the adjustments simply change where in the cycle the age number is. Example: A 20-year-old roof that is lasting longer than what was originally projected may receive a positive age adjustment of 2 years in the reserve study to match a Roof Vendor’s recommendation/opinion of having “a couple more years until replacement is needed”. This adjustment simply pushes out the date we recommend having the money fully allocated towards the roof project and which is based on the advice/opinion of a roofing professional.

Install / Allocation / Delay Year
In this reserve study you will find reference to a heading which shows Install, Allocation, or Delay Year. This refers to the date that allocation to this component was started (typically the approximate year it was last built and/or replaced). However, sometimes allocation towards a component is not based on the install date and may be a date that is based on a future year (often so when projects coincide with one another) regardless of when they were last constructed or if the last replacement date is not known but a future project is planned or projected. If the delay function is utilized the allocation towards the component is not started until the year specified in this column (i.e., the fully funded balance has been set to zero through until the year specified - see below "Delay Funding" comments).

An initial allocation year may be the current year or a future year and therefore would a have a zero effective age (at the start of the fiscal year). An example of this could be sealcoating roadways which are not currently present but will be when the roads receive a fresh resurfacing.

Adjustments
Adjustment may be utilized for a variety of scenarios including a component is deteriorating faster or slower than is typical and/or initially projected, to align projects dates so that they may coincide with one another for cost efficiencies, to align the reserve study with approved budgeting scenarios (e.g., Vendor approved project phasing), Vendor recommendations, etc. Adjustments alter a component's effective age and will move the projected component project backward in time (a negative adjustment) or forward in time (a positive adjustment).

Delay Funding
When the delayed funding function has been used, for any specific component, the corresponding fully funded balance is set to zero in subsequent years until funding is to begin. Note that delaying a component's funding in the reserve account is typically done so that projects are not being double funded in any specific time period (e.g., paying for immature tree care from the operational account until they reach an age and size that their expense is large enough to cause issues budgeting for them operationally, a road replacement component that cycles before a future overlay - typical in an older community).

The delay funding function is also extremely useful in States that have minimum, reserve study standards with respect to percentage funded and/or a timeframe of when components are required to be funded for in the reserve study. Example:

Washington - A Washington State reserve study must include components with projected replacement dates within 30 years of projections. Inclusion of longer life components (those with a remaining useful life of over 30 years) is recommended for inclusion but there is no a requirement to fund them until they fall within the 30 years of projections. Note, this is a minimum report standard.

State Reserve Study Requirements - CAI Reserve Study State Standard Link

*Reserve Analyst Insider Tip: A reserve study professional that would like to delay funding for a longer life component (e.g., plumbing, electrical) until it reached an age that it is within a specific number of years can be adequately funded for in the reserve study. What we typically see is simply ignoring a component altogether as mathematically it is not possible to delay funding for the component in their reserve study software.

Example: If you are seeking to reserve for a component that is currently new but has an expected replacement date in 50 years, and it is your opinion that funding should occur within 30 years of the project date, then you should start to fund/reserve for this project once it reached 20 years of age (this is not what occurs in any of the reserve study software that we have encountered). We have provided a mathematical function that delays funding until a specific year of your choosing; until then it is not included in the mathematical models for the fully funded balance calculations.

Repeat Function
The repeat function is most often utilized when we are seeking to limit the number of cycles a component has in the future. This can be due to decommissioning a component at a particular date, a repair component date that comes before a replacement component date, when we are seeking to target a specific period for funding, but which ends after completion (e.g., a tree removal project over several years but that ends at a particular date). Our repeat function allows the user to choose the number of cycles the component should repeat in the future; it is not limited to just repeating once or repeating forever.

*Reserve Analyst Insider Tip: The Repeat function being used along with the Delay function can be used to target funding for a project that is between two dates (e.g., funding for a project based on a code compliance project but that will not take effect for a few years and will not need to be repeated). You can target a specific period time period within the study projections. This is for the fully funded balance of the component as well as their expected expenditure years.

Percent Replace
The percent replace option is utilized when we recommend funding for something other than total replacement. This is most often done with components which do not tend to all fail in a similar time frame (e.g., concrete sidewalks which are most often damaged by underlying root intrusion and drainage issues than actual deterioration. Problem areas tend to be a reoccurring problem while other areas have little to no need to fund for replacement.) We will also utilize the percent replace option if the Client is responsible for less than 100% of the project cost (e.g., a shared fence where costs for replacement are being split with a neighboring parcel 50%-50%).

Risk Indicator
We utilize a risk indicator on the Executive Summary page which is an average Percent Funded over the initial years of the reserve study (typically 5 years). We have found an average over time to be a more accurate reflection of risk in the near future than just the Percent Funded calculation.

While Percent Funded is a very reliable indicator of risk in the fiscal year the study has been developed for, it can often be misleading as the years pass. Examples of this would be a community which has a good funded level but which has an allocation rate that is too low; the Percent Funded calculation can fall into the low funded range in a very short period. Conversely a community can rapidly go from a low funded level to a good funded level in a short time period with significant changes to their reserve budgeting.

No Limit On Number Funding Models

There are essentially unlimited potential models to choose from, when creating a reserve study, so software that allows you to add in how ever many funding models you feel are relevant to the situation can be helpful when making tough budgeting decisions.

*Reserve Analyst Insider Tip: If you have specific dollar or percentage In some regions like WA State the law requires numerous funding models be included in a reserve study (link: WA State minimum reserve study contents law). Unfortunately, we frequently see reserve study reports, completed by reserve study companies, that don't even meet the minimum State standard as to what constitutes a reserve study, most often because their reserve study software prevents them from creating one in an efficient manner

Automatic Mathematical Models Implentation, Goal Seek, Data Forecasting & Scenario Manager

When creating mathematical models with any number of factors (e.g., change the annual allocation percent increase, change in interest/APR rate, special assessments, loans, etc.) the models are instantly updated and viewable to see how the change impacts the overall reserve budget. No need to press any re-apply button, go to different pages to view the results, or guestimate what is going to happen until it's printed out. See your expertise and recommendations flow from your fingertips right onto the page as fast as you can type or speak (yes Excel even has dictation).

*Reserve Analyst Insider Tip: Excel has an almost unlimited number of options related to digging into the data. If you can dream of it, it is possible in Excel. Examples of this is running the Baseline model to find out what the reserve allocation rate must be to stay only cash positive within the timeframe of the reserve study projections or have a set value in the reserve account after a specific period (maybe your Client would like to have accumulated $100,000 in the reserve account within 5 years).

If you have some other ideas about how you want to interpret, display and share the reserve study data, well you've come to the right place! There are hundreds of options to explore and implement however you see fit. This is a huge benefit to having control of your data. Does Excel have limitations, sure but they are in in the hundreds, thousands or millions of option potentials vs what we typical see with one or two in most software we have come across.

Variable Percentage Changes to the Annual Allocation Rate

Our software allows us to change the percentage annual allocation increase (or decrease) from year to year in each funding model. This allows us to give recommendations that better meet or client’s expectations while also taking into account actual decisions being made by the community (e.g., a community votes to increase an allocation rate by 10% per year for 5 and then decrease the annual increase to 3.5% to match historical inflation rates for the remainder of the projections in the reserve study).

Variable Annual Interest Rate / Rate of Return on Investments

We can adjust the annual return rate to whatever the Client is receiving for invested and non-invested accounts. This can be helpful to more accurately represent projections related to investments that may mature in a specific year or if investment is to start after a certain reserve account balance mark is met (e.g., a community would like to have a minimum reserve $50,000 amount at 0% APR before investing additional funds in an investment of 3.5% after a five-year period).

Note that the variable interest rate/rate of return can be specific to each funding model, each year within each funding model or to the reserve study as a whole. Creating scenarios with different potential returns on investment (invested reserve funds) can better suite our clients who are often thinking of investing funds for a period (e.g., investing in a higher return investment for 10 years and then having the funds available for a roof replacement project that is projected to occur 15 years from now). We also provide a weighted average chart to help you determine what their typical rate of return is across multiple accounts (e.g., checking, savings, CD's, etc.).

*Reserve Analyst Insider Tip: Want to use a weighted average across numerous accounts (e.g., some reserve funds are in a checking account at 0% interest, some funds in a saving account at 0.5% interest, some funds in a CD at 4.25% interest) go right ahead (sample to the left). We typically like to use weighted averages as most of our clients assume things will be re-invested in a similar manner in the future. But that in no way limits you to this option; you can have individual accounts with different interest rates/rates of returns and with different maturity dates. We are often told that our clients reserve funds are invested in a CD ladder (explanation of what this is link: What is CD Ladder? ) and they would like them to be incorporated in the reserve study. Easy peasy and without limitations; have thousands of accounts better get typing, it’s already set for you!

Variable Annual Inflation Rate to the Reserve Study and to Specific Components

We can adjust the annual construction cost inflation rate in the reserve study across all components in the reserve study as well as adjust to specific components in specific years of the reserve study. We have found this to be very helpful during periods of high inflation in the overall economy as well as when there may be high inflation only in specific industries.

Example: Lumber prices have seen very high inflation in recent years, so we have been able to adjust the inflation rate for lumber specific components at a higher rate and for a specified period into the future. Inflating a fence project at a Vendor recommended rate and matching their bid/estimate is very helpful in the reserve study process.

Not only will the projected cost be inflated at the specified rate and at the specified time period, but the fully funded balance (current and projected) will be inflated at the specified rate within the specified time period.

Include Alternate Scenario Funding Model(s)

Include alternate scenario models in the reserve study with simple copy and paste. Common alternate scenario models we have used this function for are:

> specific components are left out of the reserve study mathematical calculation in this alternate model (e.g., excluding windows and doors)

> alternate cost and useful life based on a different material being used in this alternate model (e.g., include cost and useful life for a metal roof replacement in the alternate scenario vs. an asphalt shingle in the other models of the reserve study)

Charts... Charts... Chart...

While a reserve professional's eyes may overflow with glee when looking at a 10-page spreadsheet, most people are much less enthusiastic about reading through page after page of numbers, no matter how much the size or font is changed. We have found charts to be very helpful for relaying visual messages. In Excel there are thousands of options related to charts and there are almost an unlimited number of ways to relay the data in your study to your customers’ eyes. From 2-d to 3-d holographic charts, to charts that linger in the shadows, and color schemes that will make a rainbow cry; you do you.

Verifiable Projected Fully Funded Balance Calculations

As odd as it may seem rarely have we seen reserve study software that allows a user to verify the projected calculations are accurate as time progresses. In our opinion this is important for a reserve study professional who may want verification that that math adds up to what it should. It's very easy to get lost in the numbers and assume that things are being accurately calculated just because someone tells you they are. We provide verification - the proof is in the pudding, not buried under layer after layer of inaccessible and unverifiable calculations.

Add Multiple Pictures Easily

Pictures can be added into the reserve study from an online directory, from your computer or directly from a mobile device such as a phone or tablet. Pictures can be added as a single image or multiple images into multiple components, all at once, into the reserve study.

Note that in Excel pictures are placed in the component database along with all the rest of the data. This is a somewhat recent update to Excel that makes photo integration into the reserve study as easy as a clicking a button. Pictures are now just another data source to use and integrate into the reserve study where you see fit.

*Reserve Analyst Insider Tip: Have a page that can be added to a reserve study that highlights areas of concern, and show large detailed pictures if need be. Simply linked to the same pictures you use for your component.

Automatic Table of Contents and Component Index

Our table of contents pages and component index pages automatically enters page numbers so you can easily and professionally navigate your own reports as well as provide your client's reserve study that is navigable, digestible and understandable. Whether on a phone call, an online meeting, or in person, it has been our experience that having a page number to point people to is dramatically better than flipping, scrolling and hoping. Your professionalism and success starts with you and sweating it out in front of an HOA Board is simply not the answer. Having answers to tough questions can be go from hmmm, leeets seeeee?... to... that’s right on Page 23!

Summarize Data How You See Fit

Summarize data the way you see fit. There is a reason Excel is used by millions of companies, of all sizes, across the world and has been for about 40 years now, it is adaptable and as user friendly as it gets for this type of work. Some communities you are working with may be very small and there is no need to summarize anything, others may be hundreds or thousands of units/lots and you may feel best summarized in a way that a reader can more easily digest the data.

There are literally hundreds of mathematical functions (over 450 as of the date of this post) that can be used to summarize data in different formats or reports; the limit really is only one's imagination. One level, two levels, ten levels of summarized data… you do you, we are simply here to help.

Link: Excel Function List & Descriptions

Customize the Software to Your Brand - Your Niche - Your Success

Ideas, processes, data points, a color scheme that will knock their socks off?... Go for it. Looking to provide a light airy feel to a report?... done. Looking to throw in so much supporting data there is no denial?... done. Depends on the Client?... also done. How do we know our software provides so much?... because we complete reserve studies every day. We encounter scenario after scenario and opinion after opinion.

It’s our opinion that your success will come from what you contribute to the reserve study, what information you offer in the reserve study and the advice you provide and share as a reserve study professional. Software can be a great sidekick, but it really does not make a good reserve study; this comes from experience and hard work and desire to do your best.

Translate The Reserve Study to Other Languages

The Excel Translation Function translates to and from over 100 different languages. So basic translation of graph, chart and table headers is as easy as a click of a mouse. Easily switch between languages for the whole study with a simply drop-down box (screenshot to left), best if you frequently would use this feature. Additionally, you as a reserve study provider can receive information that may be in another language and can be translated to English or whatever your native language happens to be (screenshot to the right).

Automatic Visual Alerts When Criteria Area Met or Conditions/Scenarios Arise

When putting together numerous funding models with numerous funding models and numerous goals of those funding models it is nice to have visual confirmations/alerts in the data when specific goals / scenarios / conditions are met.

*Reserve Analyst Insider Tip: Set cells and/or fonts to change color when specific goals of funding model are met. This can be for the reserve study that printed out or shared with your client or just you as a reserve study professional. Examples of this would be showing years when the reserve account allocation percent change is significantly different than the inflation rate used (screenshot to the right), when Percent Funded is close to 0%, when reserve fund balance are projected to reach close to $0, or a specific goal the Client or you as a reserve study professional would like to highlight. These can be set for all studies or just ones you happen to be working on at the moment.

Include a Progress Indicator For Each Reserve Study

If you don't already use a system to update your clients about the progress of the reserve study this can be added to the Excel file for automatic update email notifications. A progress indicator also shows where the reserve analyst has left off in the reserve study and once this progress indictor reaches levels you find appropriate an update email(s) can be sent once specific benchmarks are reached. Often, we have found files being pushed aside as we wait for information from a client or vendor; in these types of instances this progress indicator will remind you of where you left off as well as provide the client a notice that the reserve study is currently on hold.

Keep Your Reserve Study Data Private!

Here is a blog post about this topic Keep Your Reserve Data Private. These days people have gotten very creative in disguising their true intentions with respect to data collection and data sharing. Many people and companies are willing to pay very good money to get access to this information and for the most part communities are unwilling participants in these money making "partnerships". Keeping your organization’s data, or your customer data (if you are a reserve study provider), is in our minds paramount in providing independent advice as well as having competitive estimates and bids.

**Reserve Analyst Insider Tips Comments**

Reserve analyst insider tips provided above are the proprie.... Who are we kidding... this is free info for everyone. Use it and hopefully efficiency and accuracy will be your new middle name. You'll also find what we believe is helpful information about where to find the date of manufacture, install dates, where to find inflation data, measurement data, useful life data and cost data, and for the most part.... totally free. If you've made it this far, you deserve it!

Link: Useful Reserve Analyst Insider Tips Link Here

If you have an interest in our software or have comments or questions, please feel free to Contact Us.

Reserve Study Software for Reserve Professionals by Reserve Professionals

Washington State Sample Reserve Study Assessment & Disclosure Form

Washington State Minimum Reserve Study Standards

Keep Your Reserve Study Data Private

Reserve Study – Why Most Common Interest Communities Are Underfunded

Reserve Study Software for Reserve Professionals by Reserve Professionals