Generally Accepted Reserve Study Standards

Generally Accepted Reserve Study Principles and Generally Accepted Reserve Study Standards were issued by the International Capital Budgeting Institute (ICBI) in April 2015.  These professional standards are the recognized international standard.  These ICBI standards provide for a consistency and reliability not previously seen in reserve studies.  Facilities Advisors International prepares reports in accordance with Generally Accepted Reserve Study Standards.

The ICBI standards are reproduced with permission here.

CAI Reserve Study Standards

The Community Associations Institute (CAI) has established standards for reserve studies prepared by those individuals holding the CAI RS (Reserve Specialist) designation.  The standards provide general information regarding capital reserve studies, describe the three recognized types of reports, and list reserve study report required contents.  These standards are far less comprehensive than Generally Accepted Reserve Study Standards, which are the recognized international standard.  The Community Associations Institute has published a white paper entitled Reserve Study Best Practices.  While we believe that this publication is useful, we also believe it is incomplete.  It is provided so readers are aware of what others in the industry believe are best practices.

Click here to view CAI National Reserve Study Standards

Types of Reports

Facilities Advisors International offers three types of reserve study reports, which correspond to the Generally Accepted reserve Study Standards; Type 1 - Full Reserve Study, Type 2 - Update of Reserve Study with on-site analysis, and Type 3 - Update of Reserve Study Without on-site analysis.

Type 1 - Full Reserve Study

We perform a complete on-site analysis, obtaining or verifying measurements and counts of common area components.  This also includes an evaluation of condition and photo inventory of most components.  We then compile the information obtained into our easy-to-understand reports.

Type 2 - Update of Reserve Study with On-Site Analysis

Once a full reserve study has been completed by Facilities Advisors, inc., we will often perform updates with an on-site analysis.  The Type 2 report is less comprehensive than a Type 1 report in that we do not obtain or verify measurements and counts unless it appears that there have been changes.  We do evaluate condition and update the photo inventory where necessary. We then compile the information obtained into our easy-to-understand report.

Type 3 - Update of Reserve Study Without On-Site Analysis

An annual update to the reserve study is simply good planning.  This allows you to "refresh" the funding plan and account for minor variations form the original funding plan.  We inquire about expenditures made, changes in pricing of replacement costs, and variations in funding from the original plan, but do not perform an on-site analysis.  This is a valuable planning tool at a very reasonable cost, generally no more than 25% of the cost of a full study.