There’s no time like the present for condo boards to start preparing all the paperwork they will need for their Reserve Fund Study, since it is quite a detailed financial document.
In fact, condo boards can even start to gather their documentation during their search for the right consultant to conduct the Reserve Fund Study, which needs to be complete by Feb. 1, 2018.
To be as organized as possible, they should aim to collect documentation that falls under several main categories.
1. Financials – Financial documents related to the condominium should span at least three years and should include:
- • The balance sheet for the reserve fund with year-end balances
- • Any contributions to or expenditures from the reserve fund that are made over the fiscal year
- • Any interest that may have been earned over the fiscal year
The reserve consultant will use these starting balances in his or her reserve funding models to project future reserve balances and contributions.
2. Governing documents – These governing documents will guide the reserve consultant with respect to scope of analysis of reserve components. At a minimum, they should include:
- • The condominium declaration
- • The condominium plan
- • Any bylaws, including amendments if applicable
More complex condo corporations could also include additional documents such as reciprocal agreements, easements and other shared amenity agreements.
3. Building plans and drawings -- The consultant will also likely ask for copies of these documents, which could include:
- • Architectural plans
- • Structural plans
- • Any additional plans or drawings
The availability of good quality drawings will help the consultant to quantify the various reserve components that are applicable to the condominium corporation and that will be included in the study.
4. Other professional reports and inspections – A number of other documents could be useful for the reserve consultant who is preparing the report. They could include:
- • Prior Reserve Fund Studies, if applicable
- • Engineering reports
- • Envelope studies
- • Elevator reports
- • Any other professional reports affecting the condo corporation
5. Additional documentation: Other documentation, where applicable could include:
- • Maintenance logs
- • Maintenance agreements
- • Inspection reports/tags
- • Any other documentation related to the long-term maintenance and repair of the condominium property
"Where applicable, additional reports will allow the study to include greater detail with respect to the specific components outlined in them," said Michael LaPorte, the president of NLD Consulting Reserve Fund Advisors who holds the professional designations of Certified Reserve Planner (CRP), Accredited Appraiser Canadian Institute (AACI), Professional Appraiser (P. App) and Professional Reserve Analyst (PRA).
"This can help the Reserve Fund Study to become a valuable resource document that draws together information from many other documents that the condo corporation may have on hand."
As a result, the Reserve Fund Study can serve as an important go-to resource that summarizes and references a wealth of essential information all in one place.
"The Reserve Fund Study is a fairly complex document that needs a lot of background information to be available," LaPorte said.
"Preparing this document list in advance of engaging a firm to conduct your Reserve Fund Study may help save time and expedite the process once you’re underway."
NLD Consulting specializes in Reserve Fund Studies. For a free proposal, visit their website at www.manitoba.reserveadvisors.ca or call them at 204-815-5280.
