Reserve Fund Validation Study

Zee matrix studies and inspect the building’s condition according to RERA regulations, to verify whether it needed to be rectified in order to make the study for the bank to release the amount from Reserve Fund How It works? Zee Matrix Will Evaluate Resereve fund utilization Practices According to RERA Guidelines Such As 1. Payments up to AED 100,000 shall be handled by the bank. above that amount has to be pre-approved by RERA 2. Availability of reserve fund study for the property conducted by a third-party consultant (final and signed) 3. The reserve fund study should include an asset register as well. 4. The reserve fund shall be solely used for the replacements/repair of existing capital assets/ expenditure items. 5. Using the reserve fund must be limited to the assets captured in the reserve fund study or its critical components (for example chiller is an asset (compressor, condenser, cooling tower, primary or secondary pump) lifts (molor, cabin.etc.) 6. The management company has to provide a minimum of 6 tenders quotes for payments exceeding AED 100,000 (if the amount is less, a minimum of 3 quotes) as well as proper justification for the vendor selection. 7. The quotations have to be verified by a Certified Property Observer (third-party consultant). 8.The Certified Property Observer should verify whether the assets replacement repair is needed. 9. The Certified Property Observer should verify the estimated life of the asset under the replacement and ensure that life has expired (in case the asset's life is not in accordance with the study justification required). 10. Confirmation that the asset has been replaced/repaired should be provided and verified by the Certified Property Observer (pictures, completion reports...etc.), 11. Any item against items breakdown covered by the insurance should be claimed and returned back to the reserve bank escrow account. 12. The Bank has to verify all the supporting documents before releasing the payment (eg. technical Inspection report carried out by the independent consultant, tender valuation, and vendor selection process...etc.). 13. The Bank has to proceed with the reallocation of the fund between the reserve fund & general fund accounts as per the approved budget, financial audit report, and allocation study.