After 3 years-- No Reserve Study- No Asset Management Plan

 

The physical analysis of a reserve study provides information regarding the physical status and repair and replacement costs of the association’s major common area components.

In 2015 the annual audit required a reserve study. A reserve study is a physical and financial check-up for a community and helps the Board budget for future expenditures. The Board initiated an effort in 2015 but the errors were numerous and the Board has not followed up. Meanwhile there is no asset management/replacement plan in place.

Reserve studies are a valuable tool and something the Board has never initiated. Reserves are put in place to complete repair or replacement projects on a schedule without the need for special assessments or loans.  Our association has not stayed current on regular maintenance. We continue to exist in a reactive mode using the piece meal approach to fix water system delivery components due to deferred maintence, not getting the most useful life from components and not knowing when to plan to replace. 

Maintaining an appropriate reserve fund and asset managment plan helps the Board meet legal, fiduciary and professional requirementsm but it hasn't happened yet.

 

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