Hawaii Reserve Studies
The reserve study process is composed of three separate disciplines;
(1) facilities maintenance knowledge,
(2) valuation (pricing) knowledge, and
(3) financial modeling and presentation knowledge.
Facilities Advisors International LLC (FAI) is the only reserve study company with provable licenses, credentials, or experience in all three of these disciplines. Gary Porter holds the FMP (Facilities Management Professional) credential, was a partner in a public adjusting company for several years (there is no better test of valuation skills than getting an insurance company to pay a claim they don't want to pay), and is a CPA who wrote the ICBI (International Capital Budgeting institute) reserve study standards. He is also President of ICBI.
FAI has offices nationwide and we have performed reserve studies throughout the country since 1982, longer than any other company. We have also worked in Canada, Mexico, and a number of other countries. We have worked with every type of association, as well as nonprofit organizations, commercial enterprises, and governmental entities. Association clients have ranged from associations as small as 4 units to associations with more than 40,000 lots, and every imaginable amenity.
Our reserve study software is an internet based software product running on an MS SQL back end database. Data can be exported to Word, Excel, or Adobe. Multiple "what if" iterations can be saved online and accessed at any time. You can download the local processing portion of the system to multiple computers. There is no “per user” fee.
As additional information, we wrote the book “Reserve Studies – The Complete Guide.” None of our competitors could write this book, as they don’t have the knowledge required in all three of the disciplines comprising the reserve study process. Our reports are also unique. Unlike our competitors that provide a single, large report filled with detail, we break the reserve study into two sections. The official reserve study report is a summary level document of about 20 pages that contains our “preparer’s report”, summary financial exhibits, and full disclosures. As a financial report, this is the equivalent of an audit report. Separately, we provide supplemental schedules at a detail level, which can be equated to the general ledger. These can be hundreds of pages long, depending on the association. Simply put, most readers of the reserve study want the information contained in the summary report, and don’t require the detail. Board or committee members and staff that are working the reserve management plan need the detail level supplemental schedules.
The state of Hawaii has adopted specific statutes related to reserve studies, which are set forth in Section 514B-148 of the Hawaii Condominium Act.
The Hawaii Condominium Act establishes the specific requirements for reserve studies in Hawaii.
1) We wrote the book on reserve studies - "Reserve Studies - The Complete Guide"
2) We wrote the standards on reserve studies - ICBI's Generally Accepted Reserve Study Standards - Facilities Advisors president Gary Porter is also president of the International Capital Budgeting Institute (ICBI)
Facilities Advisors International (FAI) has been preparing reserve studies since 1982, and in Hawaii since 2003. We have prepared numerous reserve studies for all types of associations; condominiums, planned developments, timeshare associations, and cooperatives. Benefits of selecting Facilities Advisors for your reserve study:
- Competitive fees
- Easy-to-read reports
- Internet-based software available to our clients
Competitive fees - We are able to provide competitive fees because of our extensive experience and dedication to using technology to make our services more efficient. This also translates into time savings and the ability to keep fees competitive. We are the only reserve study company to have developed software to electronically capture component data on site, which reduces the amount of time necessary to gather component data and translate that information into a reserve study report.
We "scope" the reserve study so that the level of detail at which the reserve study is prepared is at the level at which money is expended by the association, as that is the ONLY way the reserve study can ever be correlated to your association financial statements. We ask you questions and help tailor the reserve study to your unique association. Our internet-based software, with a multi-dimensional database structure (hidden in the background) and capabilities for three category levels plus major and minor components, gives us the ability to provide data at the correct level, and still be able to "roll up" the data into concise reports.
Responsiveness - We are responsive to your needs. If you request changes to your report, we will make them.
Easy-to-read reports - Our approach to reporting is unique as we provide summary reports first, and don't bury the information you need in a mountain of detail. What's important is where you stand now, and how you reach your funding goals with the 30-year plan to provide funding for your future expenditures. We also provide any statutory and regulatory disclosures. We give you the information you need to (1) prepare your budget, and (2) communicate summary in formation to your board of directors and members.
Internet-based software - At the end of the reporting process, we provide you with access to (and training) the same internet-based software we used to prepare your reserve study. This allows you to keep your reserve plan up-to-date, and save money in the future by (1) proactively planning reserve projects, and (2) minimizing future reserve study costs based on your update of component information.
Call us today for a free proposal (877) 304-6700.
You win with our unique approach to reserve studies; competitive fees, easy-to-read reports, a component structure tailored to YOUR association, and access to our internet-based software. This is not just an Excel workbook, we give you access to the same software we use to perform your reserve study - the most powerful software in the industry, which has been tested by an independent CPA firm for accuracy of calculations. We work WITH our clients to help you achieve the best outcome.
Our Goal for your Reserve Study
Providing statutory and regulatory compliance is a given in producing the reserve study report. Our primary goal is to make your reserve study something more than simply the fulfillment of a statutory obligation. We believe that the reserve study should be a functional tool used in the financial management of the association. This means that the reserve study needs to be realistic. Too often, we hear from new clients that they don't believe their prior reserve study was correct. We believe that the reserve study should be a reflection of the Association's actual maintenance plan. Therefore we will ask you questions about recently completed and planned future reserve expenditures. While none of us can accurately predict the future over the next 30 years, the association's facilities manager usually has very concrete short-term plans (over the next 1 to 3 years). We incorporate that information into the reserve study.
Contact Facilities Advisors International at (877) 304-6700.
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