Maintaining and contributing to Reserve funds (“Reserves”) are specifically designated within the Florida Statutes as a means of planning and preparing financially for maintenance, repair, and replacement of common area assets in a community association. Separate from an association’s Operating account, Reserve accounts are to be used for specific types of expenses, and not commingled with the association’s normal Operating account. This course will review the Florida Statutes pertaining to reserves, explain the reasoning and purpose for separating the two types of accounts, and discuss best practices for budgeting. In addition, the course will discuss what a reserve study is, and how such studies are used during an association’s budget planning process. Participants will be instructed on National Reserve Study Standards, and will learn the potential negative outcomes for associations that do not keep adequate Reserve funds.