Grace Muzyka, AACI, P.App, CRP from our Saskatoon office works alongside Terry Sobieski, FMI, CRP from tas-Technical Advisory Services Inc. Together, Grace and Terry offer extensive, practical expertise with over two decades of experience in Reserve Fund Studies. We have conducted hundreds of studies on a variety of property types throughout Saskatchewan including bare land, low-rise, high-rise, and townhouses condominiums, mixed use properties, and special purpose / institutional properties.
 

A reserve fund study a financial report, which provides the basis for funding major repairs and the replacement of the common elements and assets of a condominium. It is a practical guide to planning budgets and maintenance programs and is developed on the basis of physical and financial analysis. Working with you, we provide a comprehensive report and determine an effective long-term funding plan for future expenditures.

A reserve fund study can be completed by a qualified person who, based on reasonable and objective criteria, is knowledgeable with respect to components; the operation and maintenance of components and the cost/replacements of components. A qualified person in Saskatchewan, as per The Condominium Act, 1993, includes:

• A member of the Appraisal Institute of Canada holding the designation of Accredited Appraiser Canadian Institute (AACI, P.App);
• A member of the Real Estate Institute of Canada holding the designation of Certified Reserve Planner (CRP);
• A licensed applied science technologist within the meaning of The Saskatchewan Applied Science Technologists and Technicians Act;
• A person who holds a certificate of practice within the meaning of The Architects Act, 1996; and
• A licensed professional engineer within the meaning of The Engineering and Geo-sciences Professions Act.

 
Qualified persons must hold liability insurance, a minimum amount of $1,000,000.

A comprehensive reserve fund study involves many components. To allow you to prepare, we will be asking you for:

• Access to the physical property.
• Access to blueprints/construction drawings; site plans, architectural, structural, mechanical and electrical.
• A copy of the condominium plan and bylaws.
• Information about, and access to, all relevant documentation pertaining to, remove, repairs and maintenance carried out and/or ongoing projects relating to various building systems (structural, electrical and mechanical).
• Copies of the most recent audited financial statements, current reserve fund contributions and balance, and planned expenditures in the short term.
• Copies of any previous reserve fund studies completed.
• Historic information regarding the property and any problems experienced, and planned changes (physical and financial) to the property and/or its various components.

Condominium Building and Improvements

A detailed description is provided of the property, including the site and improvements.

 
Components Identification and Analysis

A detailed description of all common area components is made as is an assessment of the component’s observed condition. A condition analysis provides the life expectancy of each component, its remaining life, and recommended date of replacement.

 
Financial Analysis – Projection Factors

Projection Factors depend on business cycles, economic conditions, interest rates, and building costs, all of which can change from year to year. This section provides a statement of assumption regarding economic factors that affect maintenance affordability. The current and future replacement costs for each component are identified and used to accurately forecast future fund requirements. An accurate assessment of the reserve fund requirements works to ensure annual contributions by unit owner to the reserve fund are fair and equitable while meeting the needs of the current and future owners.

 
Benchmark Analysis

The analysis provides a practical application of reserve fund budget planning and management. When appropriately managed, the reserve fund will cover all anticipated reserve fund expenditures over a 25-year study period.

 
Cash Flow Analysis

Cash flow scenarios assist to identify ways to accurately finance the reserve fund. The analysis presents a 25-year projection, showing cash position, cash flows and cash expenditures.