Calculating the Fully Funded Reserve Amount

Does your board know how to calculate the amount needed to be fully funded?  It isn't as easy as one may think.  You cannot take the figures calculated on the Cash Flow Specific Projections or the Distribution of Accumulated Reserves Schedules and use them as the amount needed to be fully funded.  Unless your community as been following the study to the letter and the amount in the reserve fund at year end when the study was done was correct. 

Dumbest Things You Do With Your Money - CBS MoneyWatch.com

This is one of the best articles on spending that everyone including those on an HOA board need to watch for. It's always easier to spend another person's, a business's, or HOA money rather than your own. To convince us that something is a good deal, motivate one to do something or justifying why something was done or needs to be done is commonly done by using psychology.  Causing us to use the portion of our brain that controls emotions.  Emotion based spending results in illogical and irresponsible spending resulting in financial troubles. 

Pass the Ammo - Is it time yet?

I realize that board members are volunteers, with no training or knowledge on the legalities of a community or interpreting of financial statements.   To help with those short comings property management companies are hired.  At least that is the theory behind the requirements written into some declarations.  So, why do HOA boards not posses the knowledge of basic business principles that is common knowledge to so many of us?  It makes me wonder if they have ever paid bills or had to work for their money?  It's time to restore common sense to our communities.