A reserve study is a detailed report that assists facilities/institutions in planning for long-term asset and system repair and replacement expenses. These assets/systems can include heating and cooling systems, roofs, parking areas, recreational facilities and many other items. A reserve study includes two parts: 1) The Physical Analysis contains information about the condition and repair/replacement cost of the components that the facility/institution maintains. The physical analysis includes a component inventory and quantity, estimated useful and remaining life, and estimated replacement cost. 2) The Financial Analysis evaluates the existing reserve fund balance and calculates a facilities/institutions percent funded-or unfunded by comparing to a fully funded balance

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