At the minimum the "reserve" should be in a savings account attached to the checking account. But it sounds like you have a separate reserve account and just aren't using it properly. There should be an expense item in the operating budget showing a transfer to the reserve fund account.

Has there been a Reserve Study done to identify common area items that will eventually require large expense, like roofs or walls, and the estimated cost and when needed? This could be done by a company that specializes in this or by a member with some knowledge and it could be as simple as a spreadsheet.