Reserve Studies
What is a Reserve Study?
Take a pro-active approach to controlling major expenses in your business operations, especially as it relates to capital asset repair and replacement. A reserve study is a valuable budget planning tool that shows when capital assets will reach the end of their useful life and is often used by CRG clients to prevent unwelcome surprises associated with their capital asset expenditures.
In crafting reserve studies for our clients, we perform the following:
- Conduct a thorough site survey and physical inspection of the facility to identify all capital assets that pertain to the study
- Analyze blueprints, building plans and service contracts to understand administrative elements of what was discovered in the physical inspection
- Look closely at historical expenditures to identify patterns that offer a basis for projecting future capital expenses
In our reserve study process, we examine the complete inventory of our client’s property components, from flooring, masonry and windows to HVAC, roofing, and water equipment. Clients also receive information on non-standard components of their property such as parking areas, athletic fields, gymnasiums and swimming pools. What ever the unique features of your property may be, a CRG Reserve Study will provide a solid basis for financial planning and effective budget controls.
To create a complete and accurate picture of our clients’ properties, we utilize up-to-date national costing information for calculations and forecasting, along with usual and customary asset longevity projections.
Reserve Study: “Nice to Know” or “Need to Know”?
CRG’s comprehensive Reserve Study Report reflects the cost, total useful life and estimated remaining useful life of each capital asset. Our clients receive recommendations about how much money to set aside in long term financial planning for repair or replacement of capital assets. Our Reserve Study Reports projects annual expenses over the next 30 years, taking inflation into account, and provide clients with clear, actionable information. Our clients believe this is “need to know” information to reduce the risk of major unplanned expenses.
A Reserve Study provides peace of mind and, more importantly, a basis for sound business practices. With a CRG reserve study, organizations, both public sector and private, can stop managing from crisis to crisis caused by lack of preparation, and take charge of expenditures through smart, informed budgeting.
To learn more about reserve studies and how to use them for informed decision making within your organization, please call Capital Review Group to talk with our experts.
