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How do I make my reserve study match my approved Funding Plan?

This article explains why a reserve study can show two different annual reserve contributions for the same fiscal year, and how to line them up.

Overview

A reserve study can show two annual reserve contributions for the same fiscal year. The "Summary of Funding Plans" shows each Funding Plan's own contribution, while "Expenditures by Category" uses the "Annual Reserve Contributions" saved in "Financial Assumptions". Use this article when the report doesn't match the Funding Plan the Association approved.

Setup

  • Roles required: Any role with edit access to "Financial Management".

  • Prerequisites: An approved Funding Plan for the fiscal year the report covers.

  • One-time configuration: Not applicable.

How-to

  1. Open Plans and note the first-year Annual Reserve Contributions of the approved Funding Plan.

  2. At the top of the "Plans" page, click Financial Assumptions.

  3. Check that the selected fiscal year is the one the report covers.

  4. Enter the approved Funding Plan's figure in Annual Reserve Contributions.

  5. For "Do you wish to apply these assumptions to all of your existing plans?", select No to change only the report.

  6. Click SAVE.

  7. Run the report again and confirm "Expenditures by Category" matches the Summary of Funding Plans.

Reference

Use this section to understand where each number comes from and why they can differ.

Scenario / Element  Definition and Handling Action 
Summary of Funding Plans  Shows each Funding Plan's own first-year "Annual Reserve Contributions". The recommended Funding Plan is marked with a star.
Expenditures by Category  Uses the "Annual Reserve Contributions" in "Financial Assumptions" for the selected fiscal year. Component and category amounts are built from that figure.
Reserve Allocation Report  Each Funding Plan column uses that plan's own first-year contribution.
Target and threshold Funding Plans  Calculate their own contribution from the funding goal, so they can differ from "Financial Assumptions".
Ladder Funding Plans  Use the step amounts entered on the plan. Applying assumptions to all plans doesn't change individual step amounts.
Recommended Funding Plan  Marking a plan as recommended doesn't change "Financial Assumptions", because the recommended plan isn't always the one the Association adopts.
Applying to all existing plans  Selecting "Yes" updates every Funding Plan for that fiscal year to match the assumptions, including the starting reserve balance and rates.
Fiscal year mismatch  "Financial Assumptions" are saved per fiscal year. If you updated one year and ran the report for another, the numbers still differ.
Earlier fiscal years  "Financial Assumptions" for earlier fiscal years can be viewed but not saved.
Property Settings  "Financial Assumptions" can also be edited on the "Financials" tab in "Property Settings". Both pages save to the same values.