# BLACK OAK SECURITIES, INC. X-17A-5 (2022-09-21) — Broker-dealer annual report - Company: BLACK OAK SECURITIES, INC. - Form: X-17A-5 - Filed: 2022-09-21 - Period: 2022-06-30 - Accession: 0000892705-22-000003 - CIK: 892705 - File #: 8-45219 - Type: Broker-dealer - Material weakness: No - Auditor: Kerber Eck & Braeckel LLP - Auditor location: Springfield, IL - Contact: Dwan Gross - Phone: 217-498-7876 - Signed by: Dwan Gross (President) Original filing: https://www.sec.gov/Archives/edgar/data/892705/000089270522000003/AnnualAuditedReport.pdf --- {0}------------------------------------------------ | UNITED
ST ATES | OMB APPROVAL | | | |-----------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|------|--| | SECURITIES
AND
EXCHANGE
COMMISSION | OMB Number:
3235-0123 | | | | o.c. 20549
Washington, | Expires: act. 31, 2023 | | | | | Estimated aVerage burden
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12 | | | | ANNUAL
REPORTS | | | | | | SEC FILE NUMBER | | | | FORM
X-17
A-5 | | | | | PART
Ill | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | A.
REGISTRANT
IDENTIFICATION | | | | | 61(zL
OaL
.S"qcwrc"qr
NAME
OF FIRM: | r | | | | | | | | | TYPE OF
(check
all applicable
boxes):
REGISTRANT | | | | | JaBroker-dealer
€ Security-based
€
Major
security-based
swap
dealer | swap
participant | | | | €
Check
here if respondent
is also an OTC derivatives
dealer | | | | | | | | | | a p.o. box
ADDRESS
OF
PRINCIPAL
PLACE
OF
BUSINESS:
(Do
not
use
no.) | | | | | | | | | | (No. and Street) | | | | | | | | | | | \bLSS'8 | | | | (City)
(State) | (Zip Code) | | | | PERSON TO CONT ACT WITH
REGARD TO THIS FILING | | | | | | | | | | Name
(Area
Code -Telephone
Number) | | | | | | A\Ho4dp,3r7445 | K?;: | | | B. ACCOUNT
ANT
IDENTIFICATION | | | | | INDEPENDENT
PUBLIC ACCOUNTANT
whose
reports
are contained
in this
filing* | | | | | | | | | | | | | | | (Name-ifindividual,
state
last, first,
and middle
name) | | | | | | | | | | | | | | | | | | | | (Date of "tegistration with PCAOB%ifapplicable) | (PCAOBRegistration Number, if applicable) | | | | FOR OFFICIAL
USE ONLY | | | | | | | | | | " Claims
for exemption
from
the requirement
that
the annual
reports
be covered
by the 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 | | | 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. CFR 240.l7a-5(e)(1)(ii), if applicable. {1}------------------------------------------------ ### OATH OR AFFIRMATION i, 7 Sr swear (or affirm) that, to the best of ^m knowledge and belief, the financial report pertaining to the firm of Ci g Q K as of partner, officer, director, or equivalent person, as the case may be, has any proprietary interestin any account classified solely as that of a customer. ![](_page_1_Picture_2.jpeg) Notary Public # This filing\*\* contains (check all applicable boxes): - {5;1 (a) Statement of financial condition. - [] (b) Notes to consolidated statement of financial condition. - g (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 E)210.1-02 of Regulation S-X). - (d) Statement of cash flows. 'ffl Statementofcash - (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. 'gl - (f) Statement of changes in liabilities subordinated to claims of creditors. [1 - (g) Notes to consolidated financial statements. g - (h) Computation of net capital under ¹⁷ CFR 240.l5c3-1 or ¹⁷ CFR 240.l8a-1, as applicable. jQ - € (i) Computation of tangible net worth under 17 CFR 240.l8a-2. - € (j) Computation for determination of customer reserve requirements pursuant to Exhibit ^A to ¹⁷ CFR 240.l5c3-3. - [] (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit ^B to ¹⁷ CFR 240.l5c3-3 or Exhibit A to 17 CFR 240.l8a-4, as applicable. - € (l) Computation for Determination of PAB Requirements under Exhibit ^A to Ei 240.l5c3-3. - [] (m) Information relating to possession or control requirements for customers under ¹⁷ CFR 240.l5c3-3. - € (n) Information relating to possession or control requirements for security-based swap customers under ¹⁷ CFR 240.l5c3-3(p%2) or 17 CFR240.l8a-4, as applicable. - '52 (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under ¹⁷ CFR 240.l5c34, ¹⁷ CFR 240.l8a-1, or ¹⁷ CFR 240.l8a-2, as applicable, and the reserve requirements under ¹⁷ CFR 240.l5c3-3 or ¹⁷ CFR 240.l8a-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. - '59y (q)Oathoraffirmationinaccordancewithl7CFR240.17a-5,17CFR240.l7a-12,orl7CFR240.l8a-7,asapplicable. - € (r) Compliance report in accordance with ¹⁷ CFR 240.l7a-5 or ¹⁷ CFR 240.l8a-7, as applicable. - '6!t (s) Exemption report in accordance with ¹⁷ CFR 240.l7a-5 or ¹⁷ CFR 240.l8a-7, as applicable. - € (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 report or financial statements under ¹⁷ CFR 240.l7a-5, 17 CFR 240.l8a-7, or 17 CFR 240.l7a-12, as applicable. - € (v) Independent public accountant's report based on an examination of certain statements in the compliance report under ¹⁷ CFR 240.l7a-5 or 17 CFR 240.l8a-7, as applicable. - Tf@(w)Independentpublicaccountant'sreportbasedonareviewoftheexemptionreportunderl7CFR240.17a-5orl7 CFR 240.l8a-7, as applicable. - € (x) Supplemental reports on applying agreed-upon procedures, in accordance with ¹⁷ CFR 240.l5c3-le or ¹⁷ CFR 240.l7a-12, as applicable. - [] (y)Reportdescribinganymaterialinadequaciesfoundtoexistorfoundtohaveexistedsincethedateofthepreviousaudit,or a statement that no material inadequacies exist, under 17 CFR 240.l7a-12(k). - € (z) Other: - "To request confidential treatment of certain portions of this fiting, see ¹⁷ CFR240.l7a-5(e)(3) or ¹⁷ CFR240.l8a-7(d)(2), as applicable. {2}------------------------------------------------ # BLACK OAK SECURITIES, INC. # FINANCIAL ST ATEMENTS AND INDEPENDENT AUDITORS' REPORT June 30, 2022 {3}------------------------------------------------ # CONTENTS Page | REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM | 3 | |---------------------------------------------------------------------------|----| | FINANCIAL
ST ATEMENTS | | | STATEMENT
OF
FINANCIAL
CONDITION | 5 | | ST ATEMENT
OF
OPERATIONS | 6 | | ST ATEMENT
OF
CHANGES
IN
STOCKHOLDER'S
EQUITY | 7 | | ST ATEMENT
OF
CASH
FLOWS | 8 | | NOTES
TO
FINANCIAL
STATEMENTS | 9 | | SUPPLEMENTARY
INFORMATION | | | SCHEDULE
1-
NET
CAPITAL
COMPUTATION | 13 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) kerber, Eck & Braeckel LLF' 3200 Robbins Road Suite 200A Springfield, IL 62704 ### Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholder Black Oak Securities,Inc. ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Black Oak Securities, Inc. (an Illinois corporation) as of June 30, 2022, and the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements, present fairly, in all material respects, the financial position of Black Oak Securities, Inc. as of June 30, 2022 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 of Opinion kebcpa.com These financial statements are the responsibility of Black Oak Securities, Inc.'s management. Our responsibility is to express an opinion on Black Oak Securities, Inc.'s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Black Oak Securities, Inc. in accordance with the u.s. federal securities laws and the applicable rules and regulations ofthe Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards ofthe PCAOB. Those standards require that we 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. Our 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. Our 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. We believe that our audit provides a reasonable basis for our opinion. {5}------------------------------------------------ ### Auditors' Report on Supplementary Information Schedule 1 - Net Capital Computation has been subjected to audit procedures performed in conjunction with the audit of Black Oak Securities, Inc.'s financial statements. The supplementary information is the responsibility of Black Oak Securities, Inc.'s management. Our audit procedures included determining whether the supplementary information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplementary information. In forming our opinion on the supplemental information, we evaluated whether the supplementary information, including its form and content, is presented in conformity with 17 C.F.R. 0240.l7a-5. In our opinion, Schedule 1 - Net Capital Computation is fairly stated, in all material respects, in relation to the financial statements as a whole. u + &<.,t,u;'ittp We have served as Black Oak Securities, Inc.'s auditors since 2009. Springfield, Illinois September 13, 2022 {6}------------------------------------------------ ## ST ATEMENT OF FINANCIAL CONDITION ### June 30, 2022 ### ASSETS | Total
assets | \$
370,772 | |---------------------------------|---------------| | Illinois
tax receivable | 7,331 | | Prepaid
expenses | 1,115 | | Commissions
receivable | 39,324 | | Cash
and cash
equivalents | \$
323,002 | ### LIAJ3ILITIES AND STOCKHOLDER'S EQUITY | Commissions
payable | 35,800 | |-------------------------------------------------------------------------|---------------| | Total
liabilities | 35,800 | | Common
stock,
\$1
par value,
1,000
shares
authorized, | | | 610
shares
issued
and outstanding | 610 | | Additional
paid-in
capital | 5,390 | | Retained
earnings | 328,972 | | Total
stockholder's
equity | 334,972 | | Total
liabilities
and stockholder's
equity | \$
370,772 | {7}------------------------------------------------ #### ST ATEMENT OF OPERATIONS ### For the year ended June 30, 2022 | Revenue | | |-------------------------------------|---------------| | Securities
commissions | \$
444,478 | | Investment
income | 726 | | Total
revenues | 445,204 | | Expenses | | | Administration
fees | 120,380 | | Commissions | 290,434 | | Other
operating
expenses | 9,774 | | Total
expenses | 420,588 | | Income
before
income
taxes | 24,616 | | Income
tax
expense | 1 ,075 | | Net
income | 2 3,541 | {8}------------------------------------------------ #### STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY #### For the year ended June 30, 2022 | | Common
Stock | | Additional
Paid-In
Capital | | Retained
Earnings | | Total
Stockholder's | | |-----------------------------------|-----------------|-----|----------------------------------|-------|----------------------|---------|------------------------|---------| | Balance
at July
1, 2021 | | 610 | | 5,390 | \$ | 305,431 | \$ | 311,431 | | Net
income | | | | | | 23,541 | | 23,541 | | Balance
at June
30,
2022 | | 610 | | 5,390 | \$ | 328,972 | \$ | 334,972 | {9}------------------------------------------------ ### STATEMENT OF CASH FLOWS ### For the year ended June 30, 2022 | Cash
flows
from
operating
activities | | |----------------------------------------------------------------------------|---------------| | Net
income | 23,541 | | Adjustments
to reconcile
net income
to net
cash provided
by | | | operating
activities | | | Increase
in commissions
receivable | (6,529) | | Decrease
in prepaid
expenses | 661 | | Increase
in commissions
payable | 11,658 | | Decrease
in tax
liability | (3,033) | | Net
cash provided
by
operating
activities | 26,298 | | Net
increase
in cash
and cash
equivalents | 26,298 | | Cash
and cash
equivalents
at begiru'iing
of year | 296,704 | | Cash
and cash
equivalents
at end of year | \$
323,002 | {10}------------------------------------------------ # NOTES TO FINANCIAL ST ATEMENTS # June 30, 2022 # NOTE A - SUMMARY OF ACCOUNTING POLICIES A summary of the Company's significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. # 1. Nature of Operations Black Oak Securities, Inc. (Company) began operations September 28, 1992, as a brokerdealer in securities. The Company does not receive directly or indirectly, or hold funds or securities for, or owe funds or securities to, customers and does not carry any accounts of, or for customers. The Company is exempt from provisions of Rule 15c3-3 of the Securities and Exchange Commission on the basis that it carries no margin accounts and does not otherwise hold funds or securities for customers. # 2. Cash arid Cash Equivalents For purposes of the statement of cash flows, the Company considers cash on hand, deposits with banks and certificates of deposits to be cash. # 3. Commissions The Company contracts with mutual fund companies and insurers to offer access to shares and annuities of the entities to individual customers. The contracts with these entities provide for a single performance obligation. Commissions on first-time and recurring sales of shares and aru'iuities are point-in-time transactions and revenue is recognized on the trade-date of the transaction. Commissions associated with the ongoing investment in the entities are earned and recognized on a quarterly basis. Commission expense to agents are recorded simultaneously with the recognition of the commission revenue. # 4. Income Taxes As of June 30, 2022, the Company has recognized in the financial statements the effects of all tax positions and continually evaluates expiring statutes of limitations, audits, changes in tax law, and new authoritative rulings. The Company is not aware of any circumstances or events that make it reasonably possible that unrecognized tax benefits may increase or decrease within 12 months of the statement of financial condition date. Penalties and interest assessed by taxing authorities are included in the provision for income taxes, if applicable. {11}------------------------------------------------ # NOTES TO FINANCIAL ST ATEMENTS - CONTINUED June 30, 2022 # NOTE A - SUMMARY OF ACCO{JNTING POLICIES - Continued # 5. Subsequent Events Management has evaluated subsequent events for recognition and disclosure in the financial statements through September 13, 2022, which is the date the financial statements were available to be issued. Through September 13, 2022, no subsequent events required recognition or disclosure in the financial statements. 6. Use ofEstimates Thepreparation of financial statements in conformity with accountingprinciples generally accepted intheUnited States ofAmericarequires managementto make estimates and assumptions that affect the amounts reported in the fu'iancial statements and accompanying notes. Although these estimates are based on management's knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. ## NOTE B - INCOME TAXES The components of the income tax provision for the year ended June 30, 2022, are as follows: | Current | | |---------|-------------| | Federal | \$
1,075 | | State | | | | | {12}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS - CONTINUED June 30, 2022 ## NOTE C - NET CAJ'ITAL REQUIREMENT As a broker-dealer, the Company is subject to the net capital requirements of the Securities and Exchange Commission. Those requirements prohibit a broker-dealer from engaging in any securities transaction at a time when: - a. Its aggregate indebtedness exceeds 15 times its net capital as those defined in Rule 15 c3-1, or - b. Its net capital is less than the minimum required. At June 30, 2022, the Company's net capital and required net capital were \$ 326,526 and \$ 5,000, respectively, and its ratio of aggregate indebtedness to net capital was O.11:1 or 10.99%. ### NOTE D - RELATED-PARTY TRANSACTIONS The Company is related to Administrative Services, Inc. through common ownership and management. The financial activities of Administrative Services, Inc. are not included in the accompanying financial statements. Administrative Services, Inc. pays all common administrative expenses of the Company. Cornrnon administrative expenses are set forth in a signed agreement between Administrative Services, Inc. and the Company. The Company makes payments to Administrative Services, Inc. throughout the year for its share of these expenses. Expenses to Administrative Services, Inc. totaled \$ 120,380 for the year ended June 30, 2022. {13}------------------------------------------------ #### SUPPLEMENTARY INFORMATION {14}------------------------------------------------ ### SCHEDULE 1 - NET CAPITAL COMPUTATION ## June 30, 2022 | Total
assets | \$ | 370,772 | |------------------------------------------------------------------------------------------------------------------------------------------|--------|---------| | Total
liabilities | | 35,800 | | Ownership
equity | | 334,972 | | Less:
Non-liquid
assets
Haircut
on securities | | 8,446 | | Adjusted
net
capital | \$ | 326,526 | | Computation
of
aggregate
indebtedness
Other
liabilities | \$ | 35,800 | | Aggregate
indebtedness | \$ | 35,800 | | Computation
of net capital
requirement | | | | A
- Net
capital
requirement
(6-2/3%
of aggregate
indebtedness) | | 2,388 | | B - Minimum
net
capital
requirement | \$ | 5,000 | | Net
capital
requirement
(greater
of A or B) | \$ | 5,000 | | Excess
net capital | \$ | 321,526 | | Net
capital
less
greater
of 10%
of aggregate
indebtedness
or
120%
of minimum
net
capital
requirement | \$ | 320,526 | | Ratio
of
aggregate
indebtedness
to net
capital | 0.11:1 | | There are no sigificant differences between the computation above and the computation filed with the June 30, 2022 Focus IIA. {15}------------------------------------------------ ![](_page_15_Picture_0.jpeg) Exemption Report and Report oflndependent Registered Public Accounting Firm June 30, 2022 kebcpa.com {16}------------------------------------------------ ![](_page_16_Picture_0.jpeg) kerber, Eck & Braeckel LLP 3200 Robbins Road Suite 200A Springfleld, IL 62704 P 217.789.0960 F 217.789.2822 #### Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholder of Black Oak Securities, Inc. We have reviewed management's statements, included in the accompanying Exemption Report, in which (1) Black Oak Securities, Inc. identified the following provisions of 17 C.F.R. Er15c3-3(k) under which Black Oak Securities, Inc. claimed an exemption from 17 C.F.R. ei240.l5c3-3: (1) (the "exemption provisions") and (2) Black Oak Securities, Inc. stated that Black Oak Securities, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. Black Oak Securities, Inc.'s management is responsible for compliance with the exemption provisions andits statements. Our 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 Black Oak Securities, Inc.'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, we do not express such an opinion. Based on our review, we are 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)(l) of Rule 15c3-3 under the Securities Exchange Act of 1934. '1' -44