A year or two ago, the financial auditors submitted the report of their annual audit. Some of the tasks performed by the auditors include reviewing and evaluating our financial records, making sure our financial statements are in order, and insuring we follow generally accepted accounting principles as well as our own internal controls. Part of the audit includes the monetary value of what Riverview shows in the reserve study and the balance in the reserve account, however, the auditors DO NOT evaluate the reserve study or ascertain how the monetary values in the study were determined.
The auditor report that year contained a summary breakdown of different categories, one of which was the replacement value of our infrastructure. Infrastructure includes, but is not limited to, our water distribution system, sanitary sewer system, streets, sidewalks, etc. The total cost of infrastructure replacement shown in the audit report was substantially short which indicated our reserve study must be flawed somehow.
The administrator was requested to contact our banking representative at CIT, which is now First National, and solicit contact information for companies who develop reserve studies. As a result, we contracted with Geo Reserve who came out to Riverview and delivered a more comprehensive reserve study which underwent a revision with BOD, finance committee and resident participation.
Although this reserve study is arguably much better than what may have been used previously, we have lived with this reserve study for +/- a year and a half and see it could use some tune up requiring resident input. Resident participation was verbally solicited at a couple of budget workshops and the last Board meeting. We have had a few people sign up but we could certainly use a few more. This is a single purpose effort with no long term commitment and your community could use your help.
At this point, it is anticipated we could use 6-8 people (or more if we can get them) to work in pairs. We would make copies of the reserve study, meet to go through the study so everyone understands how it is put together and what they are looking at. Through conversation, we will probably be able to identify areas we need to look at. Pairs could go through category areas and identify components that may not have been included in the most recent study. These components would be included in future updates which are anticipated to occur every other year.
If you have never worked with a reserve study, that is perfectly okay. If you choose to participate, grab a friend and add your names to the list. The sign up sheet will be available in the office by the end of the week.
Thank you,
Administrator
Kim
