In a reasonable world, I would expect an admin to look at the building and decide whether it’s functional or not by reasoning about it, rather than just marking off some points on a checklist (e.g. “has a bed, must be functional, no need to look”).
It’s really not as simple as giving it a cursory glance and checking off points on a list.
For example, build a house with lots of decorations, but no workstations or beds or storage or crafters. Is it functional? Obviously not.
Add a bed and a chest. Is it functional? Now the answer is “depends”. If the bed is your respawn point and the chest is where you put your stuff before logging off, then it’s clearly your little base. But if your respawn point is in another base and that chest in that house is empty, it’s all pretty much decorative.
Add stove and a thrall. Is it functional? Depends. Is the thrall a dancer or a blacksmith? That still looks merely decorative. But if the thrall is a cook, then maybe the building is functional. If the log shows that you actually cook stuff on that stove, then it’s definitely functional.
Of course, we don’t live in that reasonable world, so I expect a lot more of the same reporting BS that we’ve seen so far, but now with a new flavor. 