FAS 133: Summit Compliance
FAS 133 requires that all derivative contracts or financial instruments (with few exceptions) be booked and adjusted to fair value at least quarterly. In other words, marked-to-market and recorded as assets or liabilities on the balance sheet, with gains or losses also marked-to-market and realized in the current period's income.

Summit Software, Inc. is believed to provide all data and processes necessary to comply completely with this regulation -- though please review the regulation in its entirety and/or rely on the advice of your financial/legal experts.

Summit Software, Inc. is perhaps the most integrated biofuels software package available. Transactions made throughout the package create accounting entries that flow to Summit’s General Ledger© automatically, without resorting to external spreadsheets and manual postings.

Hedged/derivative activity conducted via a brokerage firm is the rare exception to this auto-entry. Summit’s clients have indicated a preference to post values directly from their brokerage statements, with system-generated data from the Open Hedge Report used to validate the accuracy of the brokerage statement. Daily margin calls from your brokerage statement are recorded to the Hedging Gain/Loss Account.  Then, take the Equity from your brokerage statement each month and adjust to the Hedging Gain/Loss Account. Standard journal entries are made each month for realized/unrealized gains.

Cash/Basis/HTA Contracts, Inventory, In Transits, and Storage Obligations are valued at the end of each month and brought to market with a ‘post & reverse’ entry to designated Equity and Gain/Loss Accounts. Mark-to-market valuation is typical.

FAS 133 also allows for a basis adjustment, which is also an option in Summit’s month end process.  Contracts written in a currency other than USD are brought to market in that currency (i.e. CDN), thus picking up the proper gain/loss on those contracts.

With Summit’s Basis Position Report and Currency Position report, the merchandiser has the ability to stay properly hedged in the appropriate period for both commodities and currencies, from an operational perspective. And, managed correctly, Summit’s Hedging Gain/Loss Account keeps you square with regards to FAS 133!

Ohio County Tax Rates Changes
If you handle fuel in Ohio, you will need to change the rates in your Petrolac© and/or Summit Ag Accounting© software. Download instructions on how to update your Summit products with the new rate!

New Payroll Federal Tax Tables
You must change the tables in your Passport RW® Payroll software prior to running the 1st payroll of June 2003. Open PDF or Word file for instructions.

Kentucky Excise Tax Rate Changes
The Kentucky Department of Taxation has informed us that beginning July 1, 2004, Kentucky's Excise Tax will be increasing one penny per gallon.

Michigan Payroll Income Tax Withholding Rate Change
Due to recent legislation, the 3.9% withholding rate will go into effect on July 1, 2004. The current income tax withholding rate of 4.0% remains in effect through June 30, 2004.