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28 THE COOPERATOR — OCTOBER 2019 COOPERATOR.COM 24/7 ACCESS Life can be unpredictable. You can count on us to be there for you, ensuring things happen promptly and efficiently, always with the objective of getting your life and business back to normal as quickly as possible. Our goal is to have your insurance information available at your fingertips. MACKOUL RISK SOLUTIONS | WWW.MACKOUL.COM | (866) MACKOUL | INFO@MACKOUL.COM CLIENT PORTAL Use our client portal to view your policies, request insurance cards, report a claim, pay a bill or print a certificate. MOBILE APP Our app allows you to report a claim while on site, access your client portal, chat with our staff or pay a bill, on the go! TO EVERYTHING YOU NEED WEBINARS Free online and customized classes for new & experienced board members. Providing a Full Range of Architectural & Engineering Services In-house professional expertise in: Exterior Restoration & Historic Preservation Construction Inspection Alteration Review Architectural Design Engineering: n Mechanica l n Electrical n Plumbing n Structural Energy Audits Forensic Investigation Façade Safety Inspection Program Reporting Green Design – LEED Professionals Client satisfaction assured by the active daily involvement of the firm’s principals www.lawlessmangione.com info@lawlessmangione.com 914.423.8844 BUDGET & FINANCE With the stock market chugging along and the Great Recession of the late 'aughts in the rearview, the question might occur to some fi nancially-savvy board members: Are our building's cash reserve assets performing at their best? Could they be better? Should our funds be invested in the most conservative manner possible, or should our association or corporation jump onto the stock market bonanza band- wagon? According to the professionals who spoke to Th e Cooperator on the topic of reserve investments, the answer to that last question is a resounding No. What’s Required? According to Mark Hakim, an attorney Condo Queens, an accounting fi rm located and Director of the Cooperative and Con- dominium Department for Manhattan- based law fi rm Chaves and Perlowitz, “Ex- cept in the case of a conversion, there are no right away.” While the standard accounting legal requirements with respect to reserve defi nition of 'liquid' is anything invested for funds, though there has been discussion in less than 90 days, Sackstein believes that’s the past about legislatively requiring one. not liquid enough for condo and co-op Note that a reserve fund must be estab- lished pursuant to the Reserve Fund Law bination of liquid instruments,” she says, for conversions and that a working capital “typically, \\\[condos and co-ops use\\\] money fund, which may be established by a spon- sor or board, is not a reserve fund.” “Th e board of a condominium or coop- erative is charged with the responsibility for out penalties for early withdrawal.” investment decisions,” Hakim explains. “Of- ten a board will rely upon a managing agent near cash equivalents depends on an array and/or the building’s accountant to deter- mine where and how to invest. Usually, a building tries to stay with safe investments; bonds, treasury bills or money market ac- counts are the customary investment vehi- cles. However, as the amount of a building’s reserves increases into the millions, boards may engage institutional fi nancial advisors to assist with their investment plan.” Liquidity First Th e most important consideration for co-op and condominium boards when contemplating investment of their reserve funds is liquidity. According to Karen Sack- stein, an accountant and a partner at Th e in Fair Lawn, New Jersey that specializes in condominium associations, “Liquidity is defi ned simply as money you can access situations. “Reserve funds will have a com- market accounts and/or short-term cer- tifi cates of deposit (no more than 30 days). Th ese instruments can all be accessed with- How much should be kept in cash or Protecting Your Reserve Funds Prudent Investing Is Key BY A J SIDRANSKY See us at Booth 225 See us at Booth 410