Read the Reserve Analysis Report
Overview¶
The Reserve Analysis Report brings together your association's component inventory, current funding position, and funding plan comparisons in a single document. Account Admins, Property Managers, CFOs, Finance Managers, and Reserve Analysts use it to check funding health and compare funding plans ahead of a board meeting, while HOA Board Members use it to see what each plan would mean for the association over time. For how to produce, filter, or export this report, see Generate and export a report.
Setup¶
You need at least view access to "Reports" to open the Reserve Analysis Report. See What Can Each User Role Do? (Role Permissions Reference) for what each role can see.
Changing which sections appear, which funding plan is marked recommended, or the reserve study detail on the cover page needs full (edit) access to "Reports". Without it, "Edit Report Settings" does not appear. You see whichever sections and recommended plan someone with edit access last saved.
The report needs component data to be useful. Each component's useful life, remaining useful life, and current replacement cost feed every section of the report. The report also needs at least one funding plan. If no plan has been explicitly marked recommended for the fiscal year, and you have edit access, the settings panel opens automatically with a reminder to choose one.
A reserve study detail record, a prepared date and a reserve study type, is optional. When one has been added, it appears on the cover page under the report title. When it has not, that line is blank.
The report runs for the fiscal year selected at the top of the screen.
How-to¶
Open the report¶
Select "Reports" in the left navigation. This opens the "Reports" page. Select the "Summary Reports" tab. This shows the reports it contains. Select "Reserve Analysis Report". This opens the report, populated with your current fiscal year's data.
A table of contents at the top of the report, and a sticky panel beside it as you scroll, link to every section the report currently includes. Select a section name to jump to it.
Start with the Reserve Study Introduction¶
The report opens with a "Reserve Study Introduction". This section explains, in the report's own words, what a reserve analysis is for and how to read it, including a four step framework: understand what you own, review your upcoming anticipated expenditures, analyze your current funding plan, and adopt a funding plan that meets your needs. The same section covers percent funded, the assumptions behind the numbers, the funding method used, a disclosure, and a glossary of terms. The "Reserve Study Introduction" always appears and cannot be turned off.
Read the Executive Summary¶
The "Executive Summary" gives your association's financial snapshot for the report period: "Starting Reserve Balance", "Fully Funded Reserve Balance", "Deficit/Surplus vs. Fully Funded Reserve", "Percent Funded", and "Current Replacement Cost".
"Current Replacement Cost" is the total cost to replace every component today. "Fully Funded Reserve Balance" is a different figure: the portion of that total already accrued, based on each component's age relative to its useful life, and it is normally smaller than "Current Replacement Cost". "Percent Funded" compares your "Starting Reserve Balance" to the "Fully Funded Reserve Balance". The report's "Reserve Study Introduction" section explains this calculation in depth.
Below the financial summary, the "Executive Summary" lists the "Annual Inflation Rate" and the "Annual Interest Rate", and notes that the rate of annual reserve contribution increase varies by plan.
A "Summary of Funding Plans" table follows, with one row per funding plan the report includes. Each row lists the plan's reserve contribution, its contribution per unit at your collection frequency, whether it meets every anticipated expenditure, the first year it would run a deficit if it does not, and its average reserve balance and average percent funded over the report's projection period. A star marks the funding plan currently set as recommended. A chart beneath the table plots each plan's projected ending reserve balance by year, with a dashed line at zero marking the boundary between a positive and a negative balance.
When "Percent Funded" data is available, an "Expenditures by Category" section follows, with a pie chart of current replacement cost by category and a table of each category's useful life range, remaining useful life range, current replacement cost, accumulated reserve balance, annual fully funding requirement, fully funded reserve balance, and annual reserve contribution.
Review the Component Inventory¶
"Component Inventory" lists every component, grouped by category, with its "GL Code", useful life, remaining useful life, unit price, quantity, current replacement cost, anticipated expenditures, and "Source". A pie chart above the table breaks down current replacement cost by category. A "Measure key" at the bottom of the section spells out the abbreviation for each unit of measure used in the "Unit Price" column. Non-reserve components are shown but excluded from category and report totals, marked with an asterisk.
Check Anticipated Expenditures (5 Years)¶
This section lists, year by year, which components are due for repair, refurbishment, or replacement over the next five years. Each component's location, category, and current replacement cost appear alongside the expenditure amount for that year. A total for each year appears below its components.
Compare the Funding Models¶
Each funding plan the report includes appears in its own section, in the order chosen from "Edit Report Settings". Plan names follow the type of funding model used, such as "Current Funding", "Baseline Funding", "Threshold Funding", "Target Funding", "Full Funding", "Ladder Funding", and "Compliance Funding". The "Reserve Study Introduction" defines each type.
Every plan shows a year by year table: reserve contribution, contribution per unit, anticipated expenditures, ending reserve balance, fully funded reserve balance, and ending percent funded, along with a chart of the plan over time.
Hover over the information icon beside an anticipated expenditure figure to see which components, or which projects, make up that year's total, with a link through to the full report behind it.
A "Ladder Funding" plan breaks its table into steps. Each step states its duration, its rate of annual reserve contribution increase, and any additional funds added to reserves before that step's years begin. A plan built with a loan or a special assessment shows its additional funding detail here only when your workspace has the loan analysis feature turned on. Otherwise it shows the standard year by year table alone.
A funding plan's name in the "Summary of Funding Plans" table links down to its section here.
Read the Percent Funded Analysis¶
This section breaks percent funded down to the component level, grouped by category. Each component's useful life, remaining useful life, effective age, current replacement cost, starting reserve balance, annual fully funding requirement, fully funded reserve balance, and annual reserve contribution appear in its row. A note appears above the table when funds are distributed by remaining useful life instead of equally across components. A calculation key at the bottom of the section shows how each lettered column was derived.
Review the Reserve Allocation¶
"Reserve Allocation" lists every component, grouped by category, with its "GL Code" and the annual reserve contribution it would receive under each funding plan for the fiscal year, side by side. Use it to see how a plan's total contribution breaks down across individual components.
Check the full Anticipated Expenditures view¶
The same component by year layout from the five year section appears again later in the report. This version covers your account's full planning horizon, either 20 or 30 years depending on your account, and adds a chart of total anticipated expenditures by year above the table.
Review Component Photos & Details, and Photos¶
"Component Photos & Details" is grouped by category, with the category name as a header. Each component shows its primary photo, or "No Image Available" when it has none, next to its name, its component type, and two columns of details:
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"Useful Life", "Remaining Life", "Date in Service", "Effective Age", "Source", "GL Code", "Cost Center", "Project Number" and "Owner".
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"Replacement %", "Quantity / Units", "Unit Price", "Current Cost", "Inflation Rate", "Starting Reserve Balance", "Annual Fully Funding Requirement", "Fully Funded Reserve Balance" and "Annual Reserve Contribution".
The component's "Description" is shown below the details.
"Photos", the section after it, is a photo only view of the same components.
Reference¶
Field reference¶
"Current Replacement Cost". The total cost to replace every component today.
"Fully Funded Reserve Balance". The portion of that cost already accrued, based on each component's age relative to its useful life. Not the same figure as "Current Replacement Cost", and normally smaller.
"Starting Reserve Balance". The association's reserve fund balance at the start of the report period.
"Percent Funded". "Starting Reserve Balance" divided by "Fully Funded Reserve Balance", shown as a percentage. The report's own "Reserve Study Introduction" section explains this calculation and what the result means.
"Annual Fully Funding Requirement". The ideal annual amount required to fully fund a component's eventual replacement, without adjusting for any current reserve deficit.
"Effective Age". "Useful Life" minus "Remaining Useful Life". Shown in the "Percent Funded Analysis" and "Component Photos & Details" sections.
"Recommended funding plan". Set from "Edit Report Settings". Marks a plan with a star in the "Summary of Funding Plans" table and in the "Funding Models" section. The same setting also marks that plan as recommended on your "Dashboard", as a separate designation from an adopted funding plan.
"GL Code". The general ledger code assigned to a component. Shown on "Component Inventory", "Anticipated Expenditures", and "Reserve Allocation".
Sections that can be turned on or off¶
"Reserve Study Introduction" and "Executive Summary" always appear. Every other section listed above, including the "Funding Models" themselves, can be turned on or off from "Edit Report Settings". See Generate and export a report.
Troubleshooting¶
If the "Executive Summary"'s "Expenditures by Category" total does not match the figure in the "Summary of Funding Plans", see How do I make my reserve study match my approved Funding Plan?.
If a figure in this report does not match what you see elsewhere in SmartProperty, confirm you are comparing the same fiscal year and the same funding plan. Then check the "Report Data Source" setting described in Generate and export a report.
If a section you expect does not appear, check "Edit Report Settings". A colleague with edit access to Reports may have turned it off.
Related articles¶
What a reserve study is and what it tells you
How do I make my reserve study match my approved Funding Plan?