FAQ's 6 Barrera & Company

Yes, we provide that service based on receieving the previous report, but do not complete any verification of the other company's visual observations. [back to the top]

What is included in a Reserve Study?

According to our professional designation Community Associations Institute requires the following list of the minimum contents to be included in the Reserve Study.

· A summary of the association's number of units, physical description, and reserve fund financial condition.
· A projection of reserve starting balance, recommended reserve contributions, projected reserve expenses, and projected ending reserve fund balance for a minimum of 20 years.
· A tabular listing of the component inventory, component quantity or identifying descriptions, useful life, remaining useful life, and current replacement cost.
· A description of methods and objectives utilized in computing the Fund Status and development of the Funding Plan.
· Source(s) utilized to obtain component repair or replacement cost estimates.
· A description of the level of service by which the Reserve Study was prepared.
· Fiscal year for which the Reserve Study is prepared.
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What are the disclosure requirements?

According to our professional designation Community Associations Institute requires the following minimum disclosures to be included in the Reserve Study.

· General: Description of other involvement(s) with the association, which could result in actual or perceived conflicts of interest.
· Physical Analysis: Description of how thorough the on-site observations were performed: representative sampling vs. all common areas, destructive testing or not, field measurements vs. drawing take-offs, etc.
· Financial Analysis: Description of assumptions utilized for interest and inflation, tax, and other outside factors.
· Personnel Credentials: State or organizational licenses or credentials carried by the individual responsible for Reserve Study preparation or oversight.
· Update Reports: Disclosure of how the current work is reliant on the validity of prior Reserve Studies.
· Completeness: Material issues which, if not disclosed, would cause a distortion of the association's situation.
· Reliance on Client Data: Information provided by the official representative of the association regarding financial, physical, quantity, or historical issues will be deemed reliable by the consultant.
· The Reserve Study: will be a reflection of information provided to the consultant and assembled for the association's use, not for the purpose of performing an audit, quality/forensic analyses, or background checks of historical records.
· Reserve Balance: The actual or projected total presented in the Reserve Study is based upon information provided and was not audited.
· Component Quantities: For update with-site-visit and update no-site-visit levels of service, the client is considered to have deemed previously developed component quantities as accurate and reliable.
· Reserve Projects: Information provided about reserve projects will be considered reliable. Any on-site inspection should not be considered a project audit or quality inspection. [back to the top]