-
Reserve Fund Question – COF Condo Chat Follow-Up
A couple of questions for Tara Ersser regarding her presentation on reserve funds:
Can you expand on what the board can do to make the reserve fund study (RFS) a better document? For example, what information should the board provide to the RFS provider; what is the most important information; how many years back should the information cover; is there a preferred format for the information to be in, like a spreadsheet; in general how can the board be the most helpful to the RFS provider?
Is Morrison Hershfield competitive in preparing reserve fund studies for small condos of say 12 units?
-
2 Replies
-
INFORMATION TO PROVIDE
As the Board has the knowledge of the repair history and current issues at the building, the more information that they can provide, the more the study will reflect the current position of the Corporation. I would suggest that the Board provide the following information to their RFS provider, and that this be provided <i style=”background-color: var(–bb-content-background-color); font-family: inherit; font-size: inherit; color: var(–bb-body-text-color);”>before the provider visits the site. The information may help direct their visual review. Also, it is much more efficient to include the information in the report when it is first drafted, as opposed to having to edit this information into the report later on.
Documents:
· Condominium Bylaws (most current version)
· Drawings (architectural, structural, mechanical, electrical, site services).
· Financial statements for the past five fiscal years (audited).
· Most recent monthly financial statement.
· Previous reports completed as related to the common property (e.g. engineering investigation reports, roof condition assessments, etc.).
· Inspection reports completed:
o Fire alarm and Fire sprinklers most recent annual inspection report (full report, not just the certificate)
o Backflow preventers most recent inspection report
o Roof anchors most recent inspection report (if applicable)
o Emergency generator most recent load test report (if applicable)
Information:
· Reserve Fund balance at Current Fiscal Year Start Date.
· Present annual contribution to the Reserve Fund (e.g. the total for the current fiscal year).
· Inflation and interest rates to be used in the tables (or can be discussed with the RFS provider)
· A list of recent Reserve Fund expenditures that have occurred, including scope of work and total cost, with tax. For major projects provide documentation that describes the scope of work completed in detail, (e.g. contractor quote, specification documents/drawings, final invoice, final certificate for payment, etc.). This can be within the last 5 to 10 years, but very large projects before this should be captured as well (i.e. roof replacement).
· A list of any current known specific problems with the common property. Include any related documents, e.g. investigation reports and/or repair quotes.
RFS FOR 12 UNITS OR LESS
A smaller firm will likely be more suited to complete a RFS for a condominium of 12 units or less. However, Morrison Hershfield would be happy to provide an estimate if requested. Feel free to reach out to me any time.
