HOA Homefront: How much reserve money does our HOA need?

Q: I live in small resident-managed HOA. Our reserves are very low. Is there a minimum amount or percentage of reserves required by law? Also, is there a legal requirement for a regular audit? Is there a resource I can access for basic legal requirements for HOAs? My sense is we are not fully complying with regulations and laws. — F.S., Carlsbad
A: There is no specific minimum percentage or amount of money required to be in an association’s reserve account, and the law does not