The reserve items, by number
| Item | What it covers | Detail |
|---|---|---|
| 8 | Capital expenditures | Approved by the association for the current and following fiscal years. |
| 9 | Reserves | The amount held for capital expenditures, and any part set aside for named projects. |
| 10 | Financial statements | The most recent balance sheet and income and expense statement, if any. |
| 11 | Operating budget | The current one, including its reserve line. |
| 12 | Reserve study | The current study, or a summary of it. |
Source: Va. Code 55.1-2310. The section also lists assessments, other fees, special assessments, lawsuits and much more.
Why boards should care
A buyer reads items 9 and 12 side by side. If the reserve balance sits far below what the study recommends, or the study is years past its five-year mark, that shows. Keeping the study current and a clean summary on file makes every certificate quicker to prepare.
Keep a summary ready
- Date of the study and its level (full, update with or without a visit).
- Recommended contribution for this year, and the amount budgeted.
- The reserve balance at the start of the fiscal year.
- Major projects planned in the next five years, with estimated costs.
- When the next study is due.