Reserve Expenses vs. Operating Expenses
Accounting for expenditures is an important decision point for managers and board members. So, is it an Operating expense or a Reserve expense to repair a sprinkler, light fixture, lobby chair, or roof? By going through these decision points in the correct order, you can keep your Reserve Fund from being depleted by unnecessary expenses, […]
Capital Improvements vs Reserve Expenses
Reserve Expenses vs Operating Expenses
Three Most Unusual Reserve Components
While conducting hundreds of Reserve Study site inspections each year, our team of Reserve Specialists occasionally run into some rather interesting assets that pass the Component List 4-part test and thus should have their repair or replacement costs reserved for.
Why are components “Lumped Together” in a Reserve Study?
This was a good question asked recently by a client. They wanted to see all the separate items in their equipment shed in their Reserve Component List, not all the mowers grouped together, or the small runabouts grouped together.
Is it a Maintenance Expense or a Reserve Expense?
A reader recently asked a good question, asking for clarification about where the money should come from for a particular expense. The answer illustrates an important concept.