Reserve Study Tutorial #5

What is Percent Funded?

The present status of the Reserve Fund is generally expressed in terms of “Percent Funded.” The amount that an association should ideally have in its reserve fund (according to the most recent reserve study) is called the Fully Funded Balance. The percentage of the actual amount in the reserve fund versus the ideal is said to be the account's percent funded. For instance an association with an actual reserve fund balance of $50,000 and a theoretical fully funded balance of $100,000 is said to be 50% funded.

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