Frequently Asked Questions
Answer: Yes. This Budget/Reserve Tool allows the user to specify an operating budget for a calendar or fiscal year and develop a ten year plan for reserve accumulation and expenditures. The operating budget is compared to the current year's budget and combined with the reserve cash flow requirements to produce a projected Maintenance Fee for the upcoming plan year. The user can prioritize the Maintenance Fee based upon the operating expenses ("Operating Budget Prioritized") or the user can specify a Percent Reserve Funding target ("Reserve Funding Prioritized") and the Tool will calculate the necessary Maintenance Fee to meet that percent funding requirement.
Answer: Percent funding is defined as the ratio of the actual funds available to meet the reserve accumulation and expenditure requirements versus the funds that would be required to be fully funded each year. Example, if a car cost $50,000 and a new car was purchased every five years, then to be fully (100%) funded each year, an individual would have to place $10,000 in the bank each of the five years. If in any of the five years an individual placed only $5,000 in the bank, then for that year they would be 50% funded.
Answer: Under Operating Budget Prioritization, the user specifies a maintenance fee (increase or decrease) and the allocation of funds is prioritized to cover the operating expenses first. The balance of maintenance fee funds are then allocated to the reserve pool.
Answer: Under Reserve Funding Prioritization, a percent reserve funding is specified and the maintenance fee (increase or decrease) is calculated to cover all the operating expenses and provide a reserve contribution that achieves the specified reserve funding level.
Answer: A key advantage of using this Tool is that one can develop what-if scenarios for different maintenance fee increases and/or percent funding targets and project out requirements for ten years based upon a particular reserve profile. This reserve profile along with percent funding targets can be revised annually to optimize cash flow and smooth out or reduce maintenance fee increases.
Answer: No. Navigation and functionality is designed to be intuitive in nature. Moving from one screen to another or invoking specific functionality is accomplished by pressing the appropriate button or set of words for the particular action desired.
Answer: Yes. This is accomplished by specifying Reserve Funding Prioritization and entering the desired Percent Reserve Funding level for the particular plan year of interest.
Answer: Goal Seek is a built in function of Excel that allows the user to specify the desired result of a formula calculation by manipulating one or more independent variables of the formula. Excel, by trial and error, automatically tests different independent variable values to achieve the desired calculated result. The Budget/Reserve Tool makes use of Goal Seek by allowing the user to specify a desired Maintenance Fee increase and letting Excel determine the appropriate Percent Reserve Funding level that will yield that increase.
Answer: Simple email Bluewave Software at firstname.lastname@example.org or call us toll free at 866 297-1883.
Answer: Simply click on the Order Now button on any page of the Bluewave-Software website and your order can be processed immediately. Alternatively you can print out our Order Form, fill it out, and fax it to us at 808 667-7608. Or simply call us toll free at 866 297-1883 to place your order. We accept credit cards, checks, money orders, and purchase orders. Unless otherwise specified, the product will be delivered to you via email.
Answer: Place your order for the Tool, as detailed in the answer to Question 10. You have 30 days to use the product. At the end of the 30 day period, you will be asked (and reminded) to contact Bluewave Software to obtain a final Purchase Code. The Purchase Code can be entered by simply pressing the words "Finalize Purchase" on the Main Menu screen of the Tool. Once the Purchase Code has been entered and the file saved, the Tool will continue to work past the expiration date. The reminder will continue after the formal expiration date, but the Tool will only continue to function up to 15 days after this date. (Yes, you actually have 45 days from the purchase date to finalize your purchase.) If you choose not to keep the Tool then contact Bluewave Software for a refund.
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