Start with the major components

Look for the roof, building envelope, windows, elevators, mechanical systems, parkade, paving and other costly common assets. Note their estimated remaining life and projected cost.

Compare the study with the funding plan

A study is an estimate at a point in time. Review how the board plans to fund recommended work and whether current contributions follow that plan. Then compare actual projects and balances in more recent budgets, statements and minutes.

Questions worth asking

  • Is the study current?
  • Have major projects occurred earlier or later than expected?
  • Have construction costs changed significantly?
  • Is the reserve balance tracking the plan?
  • Are special assessments or borrowing being discussed?
  • Do recent minutes mention new defects or investigations?

A reserve balance alone is not enough

A large fund may still be inadequate before a major project, while a smaller fund may align with a newer or simpler property. Context comes from the projected work, timing, balance and contribution plan together.