# SYCAMORE FINANCIAL GROUP X-17A-5 (2022-03-31) — Broker-dealer annual report - Company: SYCAMORE FINANCIAL GROUP - Form: X-17A-5 - Filed: 2022-03-31 - Period: 2021-12-31 - Accession: 0000725764-22-000002 - CIK: 725764 - File #: 8-30302 - Type: Broker-dealer - Material weakness: No - Auditor: Thomas Faust, CPA - Auditor location: Lafayette, IN - Contact: Anita Faulkner - Phone: 765-455-1554 - Email: csmith@sycamoreweb.com - Website: sycamoreweb.com - Signed by: Craig Smith (President) Original filing: https://www.sec.gov/Archives/edgar/data/725764/000072576422000002/annualfinancialreportedgar.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 # ANNUAL REPORTS FORM X-17A-5 PART III SEC FILE NUMBER 8-30302 (Zip Code) FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 12/31/21 01/01/21 AND ENDING FILING FOR THE PERIOD BEGINNING MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION Sycamore Financial Group, Inc. NAMF OF FIRM: TYPE OF REGISTRANT (check all applicable boxes): മ Broker-dealer □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 2713 Rockford Lane (No. and Street) Indiana Kokomo 46902 PERSON TO CONTACT WITH REGARD TO THIS FILING (City) 765 455-1554 csmith@sycamoreweb.com Craig Smith (Email Address) (Name) (Area Code - Telephone Number) (State) B. ACCOUNTANT IDENTIFICATION INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* Thomas Faust, CPA, LLC d/b/a Thomas Faust, CPA | 174 Coldbrook Ct. | (Name - if individual, state last, first, and middle name)
Lafayette | Indiana | 47909 | | | | |--------------------------------------------------|-------------------------------------------------------------------------|---------|--------------------------------------------|--|--|--| | (Address) | (City) | (State) | (Zip Code) | | | | | 2/14/2018 | | | 6479 | | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | \* Claims for exemption from the requirement that the annual reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable. Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. {1}------------------------------------------------ #### OATH OR AFFIRMATION SMith I, \_ Co Ai G, Sali G, Sali Chim of \_\_ Sy CA & of the best of my knowledge and belief, the Bear on belief, the Boory. Ose 31 3 / , is true and correct. I further swear (or affirm) that neither the company nor any Signature: ANITA L. FAULKNER Howard County My Commission Expires February 28, 2024 Title: partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer. Notary Public ### This filing \*\* contains (check all applicable boxes): - Z (a) Statement of financial condition. - [ (b) Notes to consolidated statement of financial condition. - Z (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - Z (d) Statement of cash flows. - 2 (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - [ (f) Statement of changes in liabilities subordinated to claims of creditors. - [ (g) Notes to consolidated financial statements. - 2 (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - [ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - [j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - [ {k) Computation for determination of security-based swap reserve requirement pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - [1) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - 2 (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable. - 2 (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - [p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - [ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - O (t) Independent public accountant's report based on an examination of the statement of financial condition. - [u] Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - [] (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - 2 (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - [x] Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - O (y) Report describing any material inadequacies found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - (z) Other: - \*\* To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.180-7(d)(2), as applicable. {2}------------------------------------------------ Sycamore Financial Group, Inc. Report on Audit of Financial Statements December 31, 2021 THOMAS FAUST, CPA Certified Public Accountant {3}------------------------------------------------ # SYCAMORE FINANCIAL GROUP, INC. TABLE OF CONTENTS Report of Independent Registered Public Accounting Firm Financial Statements: Statement of Financial Condition Statement of Income Statement of Changes in Stockholders' Equity Statement of Cash Flows Notes to the Financial Statements Schedule I: Computation of Net Capital Under SEC Rule 15c3-1 Schedule II: Computation for Determination of Reserve Requirements Under SEC Rule 15c3-3 Schedule III: Information for Possession or Control Requirements Under SEC Rule 15c3-3 Report of Independent Registered Public Accounting Firm on Applying Agreed-Upon Procedures Report of Independent Registered Public Accounting Firm Broker-Dealer's Exemption Report {4}------------------------------------------------ THOMAS FAUST, CPA Certified Public Accountant 174 Coldbrook Ct. Lafayette, IN 47909 765-237-9185 thomasfaustcpa2@gmail.com # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Sycamore Financial Group, Inc. ## Opinion on the Financial Statements I have audited the accompanying statement of financial condition of Sycamore Financial Group, Inc., as of December 31, 2021, the related statements of income, changes in stockholders' equity, and cash flows for the year then ended, and the related notes and schedules (collectively referred to as the financial statements). In my opinion, the financial statements present fairly, in all material aspects, the financial position of Sycamore Financial Group, Inc. as of December 31, 2021 and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. # Basis for Opinion These financial statements are the responsibility of Sycamore Financial Group, Inc.'s management. My responsibility is to express an opinion on Sycamore Financial statements based on my audit. I am a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and am required to be independent with respect to Sycamore Financial Group, Inc, in accordance with the U.S. federal securities laws and the regulations of the Securities and Exchange Commission and the PCAOB. I conducted my audit in accordance with the standards of the PCAOB. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. My audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. My audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that my audit provides a reasonable basis for my opinion. ### Supplemental Information Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Determination of Reserve Requirements Under SEC Rule 15c3-3 and Schedule III, Information for Possession or Control Requirements Under SEC Rule 15c3-3 have been subjected to audit procedures performed in conjunction with the audit of Sycamore Financial Group, Inc.'s financial statements. The supplemental information is the responsibility of Sycamore Financial Group, Inc.'s management. My audit procedures included determining whether the supplemental information the financial statements or the underlying and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming my opinion on the supplemental information, I evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In my opinion, Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Determination of Reserve Requirements Under SEC Rule 15c3-3 and Schedule III, Information for Possession or Control Requirements Under SEC Rule 15c3-3 are fairly stated, in all material respects, in relation to the financial statements as a whole. {5}------------------------------------------------ 2011 Thomas Faust, CPA, LLC d/b/a Thomas Faust, CPA I have served as the Company's auditor since 2018. Lafayette, Indiana March 22, 2022 {6}------------------------------------------------ | ASSEID | | | |------------------------------------------------------------------------------|---|-----------| | Cash and cash equivalents | ക | 1,748,686 | | Investment securities | | 2,359,564 | | Commissions and fees receivable | | 1,455,559 | | Office furniture, fixtures and equipment, net of accumulated depreciation | | | | TOTAL ASSETS | | 5,563,809 | | | | | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | LIABILITIES | | | | Accounts payable and accrued expenses | | 23,441 | | TOTAL LIABILITIES | | 23,441 | | STOCKHOLDERS' EQUITY | | | | Common stock (10,000 shares authorized; 4,392 shares issued and outstanding) | | 43,897 | | Additional paid in capital | | 27,300 | | Treasury stock (790 shares) | | (22,257) | | Retained earnings | | 5,491,428 | | TOTAL STOCKHOLDERS' EQUITY | | 5,540,368 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 6 | 5,563,809 | | | | | {7}------------------------------------------------ | Advisory fees | ക | 5,547,088 | |-------------------------------------------------|---|-----------| | Commissions and 12b-1 fees | | 107,900 | | Investment income | | 463,109 | | Other income | | 21,377 | | TOTAL REVENUE | | 6,139,474 | | | | | | EXPENSES | | | | Employee compensation, commissions and benefits | | 1,581,417 | | Rent - Occupancy | | 131.476 | | NET TRICOME | 4 | 3 003 478 | |-------------------------------|---|-----------| | TOTAL EXPENSES | | 2,145,996 | | Other operating expenses | | 359,066 | | Property taxes | | 11,054 | | Promotional expenses | | 43,083 | | Depreciation and amortization | | 19,950 | | Rent - Occupancy | | 131,426 | {8}------------------------------------------------ | | Common
Stock | Additional
Paid-in
Capital | Treasury
Stock | Retained
Earnings | Total
Stockholders'
Equity | |-------------------------------------------|-----------------|----------------------------------|-------------------|--------------------------------------------------|----------------------------------| | BEGINNING BALANCE | \$43,897 - | | | \$ 27,300 \$(22,257) \$ 3,897,950 | \$ 3,946,890 | | Net Income
Stockholders' distributions | | | | 3,993,478 | 3,993,478 | | ENDING BALANCE | \$43,897 | | | (2,400,000)
\$ 27,300 \$(22,257) \$ 5,491,428 | (2,400,000)
\$ 5,540,368 | {9}------------------------------------------------ | Net Income | ക | 3,993,478 | |-------------------------------------------------------------|------|-------------| | Adjustments to reconcile net income to net cash provided by | | | | Operating activities: | | | | Depreciation and amortization | | 19,950 | | Unrealized gain on investment securities | | (425,195) | | (Increase) decrease in operating assets: | | | | Commissions receivable | | (252,713) | | Increase (decrease) in operating liabilities: | | | | Accounts payable and accrued expenses | | (3,396) | | Net Cash Provided by Operating Activities | | 3,332,124 | | CASH FLOWS FROM INVESTING ACTIVITIES | | | | Purchase of investments | | (170,191) | | Sale of investments, net | | | | Net Cash Used In Investing Activities | | (170,191) | | CASH FLOWS FROM FINANCING ACTIVITIES | | | | Purchase of Fixed Assets | | (19,950) | | Stockholder distributions | | (2,400,000) | | Net Cash Used in Investing Activities | | (2,419,950) | | NET INCREASE IN CASH | | 741,983 | | CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | | 1,006,703 | | CASH AND CASH EQUIVALENTS AT END OF YEAR | ಕ್ಕಿ | 1,748,686 | | SUPPLEMENTAL CASH FLOWS DISCLOSURES | | | | Cash paid during the year for: | | | | Income taxes | ക്ക | | | Interest | ക | | {10}------------------------------------------------ # NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the Firm's significant accounting policies consistently applied in the preparation of the accompanying financial statements are as follows: - a. Nature of Operations-Sycamore Financial Group, Inc. (the Firm) was formed in 1983 as a corporation in the state of Indiana, located in Kokomo, Indiana. The Firm is a securities brokerage firm. Currently the Firm does not self-carry any securities accounts except through their correspondents, Hilltop Securities and Folio Institutional. The Firm also deals directly with certain firms for mutual funds, unit trusts, gold and silver. The Firm maintains no physical securities, client cash or margin accounts. The Firm has branch offices in Anderson, Indiana, Unionville, Indiana and Manlius, New York which run all of their transactions through the Kokomo office. - b. Cash Equivalents—For purposes of the statements of cash flows, the Firm considers all highly liquid debt instruments with maturities of three months or less when purchased to be cash equivalents. There were cash equivalents of \$632,906 at December 31, 2021. - c. Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. - d. Concentrations of Credit Risk—The Firm holds some of its cash in an account that is not FDIC insured. The remaining cash is in an FDIC insured account and at times, the balance may exceed FDIC insured limits. At December 31, 2021 balances exceeded insured limits by \$1,036,314. - e. Commissions and Fees Receivable-Commissions and Fees Receivable consists of commissions, fees and other amounts owed to the Firm. The Firm considers all commissions receivable to be fully collectible. Uncollectible accounts receivable are charged directly against operations when they are determined to be uncollectible. Use of this method does not result in a material difference from the valuation method required by accounting principles generally accepted in the United States of America. Management believes an allowance is unnecessary. Commissions receivable are writtenoff when collection efforts have been exhausted. - f. Revenue Recognition-The Firm earns wealth management and investment brokerage fees from its contracts with customers to manage assets for investment, and or to transact on their accounts. These fees are primarily earned over time as the Firm provides the contracted quarterly services and are generally assessed based on an agreed upon rate of the market value of the assets under management. Fees that are transaction based are recognized at the point in time that the transaction is executed. In May 2014, FASB issued ASU 2014-09, "Revenue from Contracts with Customers Topic 606" which supersedes nearly all existing revenue recognition guidance under generally accepted accounting principles. The Firm's revenue recognition policy conforms with the pronouncement by recognizing revenue in accordance with the five components of the pronouncement. - Identify the contract with the customer - · Identify the performance obligation - · Determine the transaction price - Allocate the transaction price to the performance obligation - · Recognize when the performance obligation is met {11}------------------------------------------------ ### NOTE 2: COMMISSION AND FEES RECEIVABLES Receivables from brokers represent advisory fees due and accrued to the Firm from their clearing broker. At December 31, 2021, receivables were \$1,455,559. ### NOTE 3: INCOME TAX EXPENSE The Firm has elected to be treated as an S Corporation for tax purposes. In lieu of corporate income taxes, the shareholders of an S Corporation are taxed on their proportionate share of the Firm's taxable income. Therefore, no provision or liability for income taxes has been included in these financial statements. Accounting principles generally accepted in the United States of America require the Firm to examine its tax positions for uncertain positions. Management is not aware of any tax positions that are more likely than not to change in the next twelve months or that would not sustain an examination by applicable taxing authorities. The Firm's policy is to recognize penalties and interest as incurred in its Statement of Income, there were none for the year ended December 31, 2021. The firm's federal and state income tax returns for 2018 through 2021 are subject to examination by the applicable tax authorities, generally for three years after the later of the original or extended due date. #### NOTE 4: INVESTMENT SECURITIES The Firm has investment equity securities which are stated at fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement accounting guidance describes the fair value hierarchy for disclosing assets and liabilities measured at fair value based on the inputs used to value them. The fair value hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are based on market pricing data obtained from sources independent of the Company. A quoted price in an active market provides the most reliable evidence of fair value and is generally used to measure fair value whenever available. Unobservable inputs reflect management's judgment about the assumptions market participants would use in pricing the asset or liability. Where inputs used to measure fair value of an asset or liability are from different levels of the hierarchy, the asset or liability is categorized based on the lowest level input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input requires judgment. The fair value hierarchy includes three levels based on the objectivity of the inputs as follows: - · Level 1 inputs are quoted prices in active markets as of the measurement date for identical assets or liabilities that the Company has the ability to access. - · Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates, benchmark yields, issuer spreads, new issue data, and collateral performance. - · Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. These equity securities are all classified as Level 1 assets in the fair value hierarchy established in FASB 157. Increases or decreases in market value are reflected in the income statement. {12}------------------------------------------------ ## NOTE 5: ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation Number 48 (FIN 48), Accounting for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109 (SFAS 109). The interpretation contains a two-step approach to recognizing and measuring uncertain tax positions accounted for in accordance with SFAS 109. The Firm has elected to defer the adoption of FIN 48 as allowed in FASB Staff Position (FSP-48-3) issued December 30, 2008. The adoption of this standard is not currently anticipated to have a material impact on the Firm's financial position, results of operations, or cash flows; however, the effect on future financial statements of this pronouncement cannot be determined at this time. Management will continue to evaluate any uncertain tax positions, if any, during the deferral period. ## NOTE 6: TRANSACTIONS WITH RELATED PARTY The Firm leases office space located at 2713 Rockford Lane in Kokomo, Indiana from a stockholder of the Firm under an operating lease. The rental rate per square foot of space is at market value for the geographic area. The lease contains a provision for annual renewals with the same terms and conditions except for the rental rate. Future renewals rates will reflect changes in the CPI or will be based on mutually agreed upon amounts. The Company paid \$66,000 in rent for the year ended December 31, 2021. The Firm subleases part of the space to other professionals on a year-to-year basis. Both the rental payments made and sublease rental payments received are shown separately. The Firm received rental income from the sub-lease of \$6,370 for the year ended December 31, 2021. The Firm leases office space located at 800 Main Street in Anderson, Indiana. The rental rate per square foot of space is at market value for the geographic area. Rent expense was \$7,320 on this lease for the year ended December 31, 2021. # NOTE 7: SELF-INSURED During 2003 the Firm made the decision to self-insure and did not renew its insurance policy for errors and omissions. Representation has been made by management that they are not aware on any pending or threatened litigation, claims, or assessments or unasserted claims or assessments that are required to be accrued or disclosed in the financial statements in accordance with Statement of Financial Accounting Standards No. 5. ### NOTE 8: NET CAPITAL REQUIREMENTS The Firm is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1), which requires the maintenance of a minimum net capital balance. The Firm is required to maintain net capital equal to the greater of \$50,000 or 6-2/3% of the aggregate indebtedness, as these terms are defined under the rule. At December 31, 2021, the Firm's net capital was \$5,147,343 which was \$5,097,343 in excess of its required net capital of \$50,000 and \$5,087,343 in excess of its minimum net capital requirement. {13}------------------------------------------------ ### NOTE 9: FILING REQUIREMENTS There were no liabilities subordinated to claims of creditors during the year ended December 31, 2021. Accordingly, no Statement of Changes in Liabilities Subordinated to Claims of Creditors has been included in these financial statements as required by rule 17a-5 of the Securities and Exchange Commission. ### NOTE 10: COMMITMENTS AND CONTINGENCIES Management has evaluated possible commitments and contingencies at December 31, 2021. They concluded that there were no commitment or contingencies that would require recognition in the financial statements or disclosure in the related notes to the financial statements. #### NOTE 11: SUBSEQUENT EVENTS The Firm's management has evaluated subsequent events through the date of this report, and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the related notes to the financial statements. {14}------------------------------------------------ # SYCAMORE FINANCIAL GROUP, INC. SCHEDULE I: COMPUTATION OF NET CAPITAL UNDER SEC RULE 15c3-1 AS OF DECEMBER 31, 2021 | COMPUTATION OF NET CAPITAL | | | |----------------------------------------------------------------------|----|-----------| | Total ownership equity from Statement of Financial Condition | ಕಿ | 5,540,368 | | less nonallowable assets from Statement of Financial Condition | | | | Net capital before haircuts on securities positions | | 5,540,368 | | Haircuts on securities | | (393,025) | | Net Capital | ക | 5,147,343 | | Aggregate Indebtedness | ക | 23,441 | | Net capital required based on aggregate indebtedness (6-2/3%) | | 1,564 | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENTS | | | | Minimum dollar net capital requirement of reporting broker or dealer | | 50,000 | | Excess Net Capital | | 5,097,343 | | COMPUTATION OF AGGREGATE REQUIREMENTS | | | | (A) - 10% of total aggregate indebtedness | | 2,344 | | (B) - 120% of minimum net capital requirement | | 60,000 | | Net Capital less the greater of (A) or (B) | ಕಿ | 5,087,343 | | | | | # FOCUS PART IIA RECONCILIATION BETWEEN AUDITED AND UNAUDITED NET CAPITAL At December 31, 2021, there were no material differences between audited net capital above and the net capital as reported on Part II of the Firm's most recently filed FOCUS report. {15}------------------------------------------------ # COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER SEC RULE 15c3-3 - 1) Sycamore Financial Group, Inc. is exempt from Rule 15c3-3 under the provisions of Rule 15c3-3(k)(2)(ii) and, - 2) The Firm is also filing their Exemption Report because the Firm's other business activities contempleted by Footnote 74 of the SEC Relaease No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to effecting securities transactions via subscription on a basis where the funds are payable to the issuer or its agent and not to the Firm. In addition, the Firm did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money of (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Firm; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3). {16}------------------------------------------------ # INFORMATION FOR POSSESSION OR CONTROL REQUIREMENTS UNDER SEC RULE 15c3-3 - 1) Sycamore Financial Group, Inc. is exempt from Rule 15c3-3 under the provisions of Rule 15c3-3(k)(2)(ii) and, - 2) The Firm is also filing their Exemption Report because the Firm's other business activities contempleted by Footnote 74 of the SEC Relaease No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to effecting securities transactions via subscription on a basis where the funds are payable to the issuer or its agent and not to the Firm. In addition, the Firm did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money of (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Firm; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3). {17}------------------------------------------------ # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON APPLYING AGREED-UPON PROCEDURES The Board of Directors and Stockholders Sycamore Financial Group, Inc. I have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2021. Manaqement of Sycamore Financial Group. Inc. is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Firm has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Firm's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2021. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, I make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures I performed and my findings are as follows: - 1) Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries, noting no differences; - 2) Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2021 with the Total Revenue amount reported in Form SIPC-7 for the year ended December 31, 2021, noting no differences; - 3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences; - 4) Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences; and - 5) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on which it was originally computed, noting no differences. I was engaged by the Firm to perform this agreed-upon procedures engagement and conducted our enqagement in accordance with attestation standards established by the AICPA and in accordance with the standards of the Public Company Accounting Oversight Board (United States). I was not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Firm's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2021. Accordingly, I do not express such an opinion or conclusion. Had I performed additional procedures, other matters might have come to my attention that would have been reported to you. I am required to be independent of the Firm and to meet my other ethical responsibilities in accordance with the relevant ethical requirements related to my agreed-upon procedures engagement. {18}------------------------------------------------ This report is intended solely for the information and use of the Sycamore Financial Group, Inc. and the SIPC and is not intended to be and should not be used by anyone other than these specified parties ![](_page_18_Picture_1.jpeg) Thomas Faust, CPA, LLC d/b/a Thomas Faust, CPA Lafayette, Indiana March 22, 2022 Sycamore Financial Group, Inc. {19}------------------------------------------------ # REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Stockholders of Sycamore Financial Group, Inc. I have reviewed management's statements, included in the accompanying Exemption report of Broker and Dealers, in which (1) Sycamore Financial Group, Inc., identified the following provisions 17 C.F.R. § 15c3-3(k) under which the Firm claimed the following exemption from 17 C.F.R. §2 4 0.15c3-3:(k)(2)(ii) and (2) Sycamore Financial Group, Inc. stated that Sycamore Financial Group, Inc. met the identified exemption provision throughout the most recent fiscal year without exception. The Firm is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Firm; In addition, the Firm did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception. Sycamore Financial Group, Inc.'s management is responsible for compliance with the exemption provisions and its statements. My review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and accordingly included inquiries and other required procedures to obtain evidence about the Firm's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, I do not express such an opinion. Based on my review, I am not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(ii) of Rule 15c3-3 under the Securities Exchange Act of 1934 and the Firm's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5, and related SEC Staff Frequently Asked Questions. Thomas Faust, CPA, LLC d/b/a Thomas Faust, CPA Lafayette, Indiana March 22, 2022 Sycamore Financial Group, Inc. {20}------------------------------------------------ ![](_page_20_Picture_0.jpeg) Sycamore Financial Group INVESTMENT SECURITIES Serving Investors Since 1983 March 15, 2022 Thomas Faust Lafayette Indiana Dear Thomas, Sycamore Financial Group, Inc., is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission 17 C.F.R. §2 4 0.17a-5, "Report to be made by certain brokers and dealers". This Exemption Report was prepared as required by 17 C.F.R. \$2 4 0 17a-S (d)(4). To the best of its knowledge and belief, Sycamore Financial Group, Inc., F.R. states the following states the following: - 1) Sycamore Financial Group, Inc. claimed an exemption from 17 C.F.R. §2 4 0 15c3-3 under the provision of 17 C.F.R. §2 4 0 15c3-3 (k)(2)(ii) for our revenue from our clearing broker the year ended December 31, 2021, and - 2) The Firm is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company. In addition, the Company did not directly or indirectly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, other than money or other consideration received and promptly transmitted in compliance with paragraph (a) or (b)(2) of Rule 15c2-4 and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company; did not carry accounts of or for for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the most recent fiscal year without exception Sycamore Financial Group, Inc., has met the identified exemptive provisions of 17 C.F.R. §2 4 0 15c3-3 throughout the most recent fiscal year without exception. Thank You, Member: FINRA, SIPC Craig Smith Syracuse, New York (765)201-4758 www.sycamoreweb.com Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.