Re: envisAGE Project - Accounting Treatment

--00000000000023a39d063bc70676 Content-Type: multipart/alternative; boundary="00000000000023a39c063bc70675" --00000000000023a39c063bc70675 Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: quoted-printable Hi Eve, Thank you for your help with this! See my answer to #4 below. 4. Does TheKey account for project related expenses separately from regular payroll? We don=E2=80=99t currently have a setup like this elsewhere; however, Nat d= oes record a monthly salary reclass for IT employees working on capex projects. This is the only instance I=E2=80=99m aware of. The entry credits the 70056= 0 payroll contra account and debits the Deferred Cloud Software Prepaid account. The regular salary accounts remain aligned with the payroll reports, as the 700560 account functions as a contra account. Let me know if you need additional information on this. *Thank you!* *Lyndsey Organ* Senior Manager, Accounting | *TheKey* Mobile: 316.253.6494 On Wed, Aug 6, 2025 at 3:15=E2=80=AFPM wrote: > Hi team, > > > > Hope your day is going well. > > > > We are in the process of determining the appropriate accounting treatment > for recording reimbursement deposit(s) related to envisAGE project. Kindl= y > see below list of questions to help us finalize our analysis. > > **** If someone else on the team should be included in this discussion, > kindly add them to this thread. **** > > > > Questions > > Contact > > Answers > > 1. Can we obtain a copy of submission summary/paycheck total in CAD for > the period 04/01/2025 to 06/30/2025? > > Tim > > 2. Were there any other deposits received for this project? If so, please > provide dates, amounts, supporting submission docs. > > Tim > > 3. What was the actual kick-off/project start date? Projected start date > was Oct 01, 2024. > > Tim > > 4. Does TheKey account for project related expenses separately from > regular payroll? > > Lyndsey > > 5. Were any project deliverables/conditions already met before the deposi= t > was received? > > Tim > > 6. Are we expected to refund any portion if deliverables aren=E2=80=99t m= et? > > Eve and Wethned, Tim to confirm > > Yes, if Ultimate Recipients are in default, suspended for cause, or > terminate agreement from their end (see sheet "Termination") > > 7. Will additional funds be reimbursed based on future claims? > > Eve and Wethned, Tim to confirm > > Yes, based on project timeline > > 8. Was the $6K advanced (prepayment) or reimbursement for already > submitted costs? > > Tim > > 9. Is the total projected reimbursable to TheKey amount CAD 9,750? > > Tim > > 10. What are the locations affected by payroll expense related to this > project? > > Tim > > > > Please also see attached preliminary analysis for additional information. > > > > We would appreciate a timely response to comply with the close schedule = =E2=80=93 > July 2025 journal entry submission deadline is this *Friday, 08/08/2025*. > > > > Thank you so much for your help! > > > > Kind regards, > > *Eve Malishevski* > > Assistant Manager, Audit & Financial Reporting | *TheKey* > > Mobile: 305.528.8471 > > > > [image: A black background with blue letters AI-generated content may be > incorrect.] > > > --00000000000023a39c063bc70675 Content-Type: text/html; charset="UTF-8" Content-Transfer-Encoding: quoted-printable Hi = Eve, Thank you for your help with this! See m= y answer to #4 below. 4. Does TheKey account for project related expenses separately fr= om regular payroll?=C2=A0 We don=E2=80=99t currently have a setup like this= elsewhere; however, Nat does record a monthly salary reclass for IT employ= ees working on capex projects. This is the only instance I=E2=80=99m aware = of. The entry credits the 700560 payroll contra account and debits the Defe= rred Cloud Software Prepaid account. The regular salary accounts remain ali= gned with the payroll reports, as the 700560 account functions as a contra = account. Let me know if you need additional information on this.=C2=A0 Thank you! Lyn= dsey Organ Senior Manager, Accounting |=C2= =A0 TheKey Mobile: 316.253.= 6494 =C2=A0 On Wed, Aug 6, 20= 25 at 3:15=E2=80=AFPM eve= .malishevski@thekey.com wrote: Hi team, =C2=A0 Hope your da= y is going well. =C2=A0 We are in the process of determining the appro= priate accounting treatment for recording reimbursement deposit(s) related = to envisAGE project. Kindly see below list of questions to help us finalize= our analysis. *** If someone e= lse on the team should be included in this discussion, kindly add them to t= his thread. *** =C2=A0 <table border=3D"1" cellspacing=3D"0" cellpadding=3D"0" width=3D"1= 398" styl