What is a Reserve
Study? Reserves are funds set aside
from monthly assessment income for ongoing repair and replacement of
a private club, resort hotel, or community association's needs, such
as roofs, streets, sidewalks, central heating and cooling plants, swimming
pool equipment and tennis courts. Because these expenses tend to be
large, a reserve timetable should be established to accumulate the necessary
replacement funds. A Reserve Study entails such a timetable and includes
an inventory of components, their useful life, and estimated replacement
cost.
How can an Reserve Specialist
help my club?
Expert Analysis
A Reserve Specialist can help ensure that your
private club, resort or community association prepares its reserve budget
as accurately as possible. By preparing a reserve study for your organization,
a Reserve Specialist will help your club maintain its long-term financial
health by providing:
• An inventory of items subject to replacement
• An estimate of the useful remaining life of those items
• An estimated cost of replacement; and
• A funding plan designed to cover future expenditures
RS designee is required to perform reserve studies
based on a strict set of standards developed by Community Association
Institute. CAI's National Reserve Study Standards provide a detailed
list of functions that must be included in each type of study being
performed:
• A Full Reserve
Study includes a site visit, component inventory, condition
assessment, life and valuation estimates, fund status and funding
plan. • An Update Reserve Study
- Site Visit/On-site Review includes a condition assessment of the
existing inventory, life and valuation estimates, fund status and
funding plan • An Update Reserve Study
- No Site Visit/Off-site Review includes life and valuation adjustments
to the existing inventory, fund status and funding plan.
Experience
An RS-designee has a wealth of experience in the
diverse aspects of component analysis and financial planning for private
clubs, resorts, and community associations. A Reserve Specialist successfully
meets the designation's comprehensive requirements, including:
• Preparing at least 50 reserve studies
within the last three years
• Holding a bachelor's degree in construction management, architecture
or engineering (or equivalent experience and education); and
• Maintaining professional-level CAI membership in good standing.
Integrity
A Reserve Specialist commits to uphold the highest
ethical standards. He or she must abide by the strict rules of conduct
outlined by CAI's Professional Reserve Specialist Code of Ethics, which
states the designee shall:
• Comply with current standards or practices
as established by CAI and the Reserve Specialist (RS) Designation
Review Board;
• Not provide inaccurate or misleading information to a prospective
or current client Disclose in writing to the client actual, potential
or perceived conflict of interest;
• Conduct himself or herself in accordance with the Reserve Specialist
requirements; and Abide by CAI's redesignation policy.
Reserve
Study