# KILEY PARTNERS, INC. X-17A-5 (2022-02-14) — Broker-dealer annual report
- Company: KILEY PARTNERS, INC.
- Form: X-17A-5
- Filed: 2022-02-14
- Period: 2021-12-31
- Accession: 0000937809-22-000001
- CIK: 937809
- File #: 8-48050
- Type: Broker-dealer
- Material weakness: No
- Auditor: Rubio CPA, PC
- Auditor location: Atlanta, GA
- Contact: Michael Kiley
- Phone: 561-630-3200
- Email: mike@kileypartners.com
- Website: kileypartners.com
- Signed by: Michael Kiley (CEO)
Original filing: https://www.sec.gov/Archives/edgar/data/937809/000093780922000001/kpi.pdf
---
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### 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
> SEC FILE NUMBER 8-48050
# ANNUAL REPORTS FORM X-17 A·S PART Ill
| FACING PAGE
Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | |
|----------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|---------|-----------------------------------------|--|
| | | | | |
| FILING FOR THE PERIOD BEGINNING 1 /1 /21 | ~~~~~~~~- | | AND ENDING. 12/31 /21 | |
| | MM/DD/YY | | MM/DD/ Y Y | |
| A. REGISTRANT IDENTIFICATION | | | | |
| NAME OF FIRM: KILEY PARTNERS, INC. | | | | |
| TYPE OF REGISTRANT (check all appli1cable boxes):
lil Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | D Security-based swap dealer | | D Major security-based swap participant | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | |
| 16 BEL GIORNO COURT | | | | |
| | (No. and Street) | | | |
| Henderson | | NV | 89011 | |
| (City) | | (State} | (Zip Code) | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | |
| MICHAEL KILEY | . 561 -630-3200 | | Mike@kileypartners.com | |
| (Name) | (Area Code - Telephone Number) | | (Email Address) | |
| | B. ACCOUNTANT IDENTIFICATION | | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
RUBIO CPA, PC | | | | |
(Name - if individual, state last, first, and mlddle name) 2727 Paces Ferry Rd SE, Suite 2w1 680 Atlanta GA 30339 (Address) (City) (State) (,Zip Code) 5/5/09 3514 (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 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 t he exemption. See 17 CFR 240.17a-S(e)(l)(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.
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5 }v\. *+e-* '\*' *N*~ v' .JJ~ *C* o-U{)"tJ *o+* l-lNll- OATH OR AFFIRMATION
| I, MICHAEL KILEY | swear (or affirm) that, to tile best of my knowledge and belief, the |
|-----------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| financial report pertaining to the firm of KILEY PARTNERS, INC. | , as of |
| December 31 | , 2~, is true and correct. I further swear (or affirm) that neither the comp
nor any |
| as that of a customer.
·
·
--
Notary Public | partner, officer, director, or equivalent person, as the case may be, has any proprieta1ry interest in any3ftccou t c ssified solely
·
,__
URIAH GOLD
~~· mNotary PubllO - State of Nevaoa
COunty of Clark
APPT. NO. 21-4009-01
My App. Expires Sept. 12, 2025
Title:
CEO |
Notary Public
#### This filing\*\* contains (check all applicable boxes):
- Iii (a) Statement of financial rnndition.
- D (b) Notes to consolidated statement of financial condition.
- i!l (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).
- lil (d) Statement of cash flows.
- lii!ii (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- D (f) Statement of changes in liabilities subordinated to claims of creditors.
- i!!!l (g) Notes to consolidated financial statements.
- i!!!l (h) Computation of net capital under 17 CFR 240.15c3-1or17 CFR 240.18a-1, ns applicnble.
- D (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- 0 (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
- 0 (k} Computation for determination of security-based swap reserve requ irements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A Ito 17 CFR 240.18a-4, as applicable.
- D {I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3.
- D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- D (n} Information relating to possession or control requirements for security-based sw:ap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
- Iii (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible 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.
- D (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.
- D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- Iii (s) Exemption report in accordance with 17 CFR 240.17a-5or17 CFR 240.18a-7, as applicable.
- D (t) Independent public accountant's report based on an examination of the statement of financial condition.
- iii (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- 0 (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5or17 CFR 240.18a-7, as applicable.
- iii (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.
- 0 (y) Report describing any material inadequacies found to exist or 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). 0(z) Other:--------------------------------------
-
- \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.
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# **KILEY PARTNERS, INC.**
Financial Statements For the Year Ended December 31 , 2021 With Report of Independent Registered Public Accounting Firm
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# **RUBIO CPA, PC**
CERTIFIED PUBLIC ACCOUNTANTS 2727 Paces Ferry Road SE
Building 2, Suite 1680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 770 838-7123
# **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Stockholder of Kiley Partners, Inc.
Opinion on the Financial Statements
We have audited the accompanying statement of financial condition of Kiley Partners, Inc. (the "Company") as of December 31, 2021, 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 the Company 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 the Company's management. Our responsibility is to express an opinion on the Company'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 the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement to the financial statements, wlhether due to error or fraud, and perfonning 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.
#### Supplemental Information
The informatiom contained in Schedules I, II and III has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the information in Schedules I, II and III reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of t he information presented in the accompanying schedules. In forming our opinion on the accompanying schedules, we evaluated whether the supplemental information, including its form and content, is presented
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in conformity with 17 C.F.R. §240. I 7a-5. Tn our opinion, the aforementioned supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
We have served as the Company's auditor since 2002.
February 14, 2022 Atlanta, Georgia
~Property and equipment, net of accumulated depreciation of \$48,881 | \$
149, 154 |
| Deposit with clearing broker | 100,331 |
| Due from clearing broker | 705,620 |
| Other assets | 744 |
| Total Assets | \$
955,849 |
| Liabilities and Stockholder's Equity | |
| Liabilities | |
| Accounts payable and accrued expenses | \$
8,320 |
| Commission payable | 13,056 |
| Total Liabilities | 21,376 |
| Stockholder's Equity | 934,473 |
| Total Liabilities and Stockholder's Equity | \$
955,849 |
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# Kiley Partners, Inc. Statement of Operations For t he Year Ended December 31 , 2021
| Revenues | |
|-----------------------------------------|-----------------|
| Commissions | \$
1,262,979 |
| Principal transactions | 119,807 |
| Interest | 24,645 |
| Other | 44 |
| Total revenues | 1,407,475 |
| Expenses | |
| Commissions, compensation, and benefits | 267,083 |
| IT, data and communications | 115,363 |
| Clearing costs | 40,996 |
| Interest | 2,146 |
| Other | 83,500 |
| Total expenses | 509,088 |
| Net Income | \$
898 387 |
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# **Kiley Partners, Inc. Statement of Changes in Stockholder's Equity For The Year Ended December 31 , 2021**
| Balance, December 31, 2020 | \$
1,078,208 |
|------------------------------|-----------------|
| Net income | 898,387 |
| Distributions to stockholder | (1,042,122) |
| Balance, December 31, 2021 | \$
934.473 |
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# **Kiley Partners, Inc. Statement of Cash Flows For The Year Ended December 31 , 2021**
| Cash flows from operating activities: | |
|-----------------------------------------------------------------------------------|---------------|
| Net income | \$
898,387 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |
| Change in due from clearing broker | 13,757 |
| Change in securities owned | 1,079,842 |
| Change in interest receivable | 16, 164 |
| Change in other assets | (481) |
| Change in accounts payable and accrued expenses | 3,330 |
| Change in commissions payable | (30) |
| Change in securities sold, not yet purchased | (567,329) |
| Change in due to clearing broker | (406,699) |
| Change in interest payable | (1,585) |
| Net cash provided by operating activities | 1,035,356 |
| Cash flows from financing activities: | |
| Distributions to stockholder | (1,042, 122) |
| Net cash used by financing activities | (1,042, 122) |
| Net decrease in cash | (6,766) |
| Cash balance: | |
| Beginning of year | 155,920 |
| End of year | \$
149 154 |
| Supplemental disclosure of cash flow information | |
| Interest paid | \$
2,146 |
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# **KILEY PARTNERS, INC. NOTES TO FINANCIAL STATEMENTS December 31, 2021**
#### **NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
Organization and Description of Business: The Company is a registered broker dealer that began business in 1994. The Company is registered with the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the securities commissions of appropriate states.
The Company's business is retail brokerage of marketable securities for customers located throughout the United States.
Cash: The Company maintains its demand deposit in a high credit quality financial institution. Balances at times may exceed federally insured limits.
Property and Equipment: Property and equipment are recorded at cost. Depreciation is provided by use of straight-line methods over the estimated useful lives of the respective assets. Maintenance and repairs are charged to expense as incurred:; major renewals and betterments are capitalized. When items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in the results of operations.
Income Taxes: The Company has elected to be taxed as an S corporation whereby the income or losses of the Company flow through to its stockholder and no income taxes are recorded in the accompanying financial statements.
Under the provisions of FASB Accounting Standards Codification 740-10, Accounting for Uncertainty in Income Taxes, the Company is required to evaluate each of its tax positions to determine if they are more likely than not to be sustained if the taxing authority examines the respective position. A tax position includes an entity's status, including its status as a pass-through entity, and the decision not to file a return. The Company has evaluated each of its tax positions and has determined that 1110 provision or liability for income taxes is necessary.
Estimates: Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could vary from the estimates that were assumed in preparing the financial statements.
Revenue Recognition: The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership of the securities have been transferred to/from the customer.
Proprietary transactions and related revenues and expenses are recorded on a trade-date basis (as if they had settled). Profit and loss arising from all securities transactions entered into for the account and risk of the Company are recorded in principal transactions in the accompanying statement of operations.
Date of Management's Review: Subsequent events were evaluated through the date the financial statements were issued.
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# **KILEY PARTNERS, INC. NOTES TO FINANCIAL STATEMENTS December 31, 2021**
#### **NOTE B - NET CAPITAL**
The Company, as a registered broker dealer, is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 1 Sc3-1 ), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1.
At December 31, 2021, the Company had net capital of \$933,729 which was \$833,729 in excess of its required net capital of \$100,000, and its ratio of aggregate indebtedness to net capital was .02 to 1.0.
#### **NOTE C - RELATED PARTY TRANSACTIONS**
The Company operates from office premises owned by the Stockholder at no cost to the Company pursuant to a lease and administrative services agreement.
Financial position and results of opeirations might differ from the amounts in the accompanying financial statements if this agreement did not exist.
#### **NOTE D - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET CREDIT RISK**
As a securities broker, the Company is engaged in buying and selling securities for a diverse group of individuals and other entities. The Company's transactions are collateralized and are executed with and on behalf of its customers, including other brokers and dealers and other financial institutions.
The Company introduces all customer transactions in securities traded on U.S. securities markets to another firm on a fully disclosed basis. The agreement between the Company and its clearing broker provides that the Company is obligated to assume any exposure related to non-performance by customers or counter parties. The Company monitors clearance and settlement of all customer transactions on a daily basis.
The Company's exposure to credit risk associated with the non-performance of customers and counter parties in fulfilling theiir contractual obligations pursuant to these securities transactions can be directly impacted by volatile trading markets which may impair the customer's or counter party's ability to satisfy their obligations to the Company. In the event of non-performance, the Company may be required to purchase or sell financial instruments at unfavorable market prices resulting in a loss to the Company. The Company does not anticipate non-performance by customers and counter parties in the above situations.
In the normal course of business, the Company's customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose the Company to off-balance-sheet-risk in the event the customer or other broker is unable to fulfill its contracted obligations and the Company has to purchase or sell the financial instrument underlying the contract at a loss.
#### **NOTE E - RECEIVABLE FROM AND DEPOSIT WITH CLEARING BROKER**
The Company clears certain of its proprietary and customer transactions through another broker-dealer ("clearing broker") on a fully disclosed basis. In accordance with this agreement, the Company is required to maintain a deposit in cash or securities. The deposit is refundable if, and when, the Company ceases doing business with the clearing broker.
Amounts receivable from its clearing broker at December 31, 2021 consist of commissions receivable and funds on deposit in a trading account.
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# **KILEY PARTNERS, INC. NOTES TO FINANCIAL STATEMENTS December 31, 2021**
#### **NOTE F - CONTINGENCIES**
The Company is subject to litigation in the normal course of business. The Company has no litigation in progress at December 31 , 2021.
#### **NOTE G - CONCENTRATION**
During 2021 , approximately 99% of commissions revenue was earned from one customer and its affiliates.
#### **Note H-ECONOMIC RISKS**
In March 2020, the World Health Organization (WHO) declared COVID-19 a global pandemic. This pandemic event has resulted in significant business disruption and uncertainty in both global and U.S. markets. While the Company believe that it is in an appropriate position to sustain the potential shortterm effects of these world-wide events, the direct and long-term impact to the Company and its financial statements is undetermined at this time.
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### **Kiley Partners, Inc.**
# **Schedule I Computation of Net Capital Pursuant To Rule 15c3-1 Of The Securities And Exchange Commission Act of 1934 As Of December 31, 2021**
| Net capital: | |
|-----------------------------------------------------------|----------------|
| Total stockholder's equity | \$
934,473 |
| Less non-allowable assets:
Other assets | 744 |
| Total non-allowable assets
Net capital before haircuts | 744
933,729 |
| Less haircuts | |
| Net capital | 933,729 |
| Minimum net capital required | 100,000 |
| Excess net capital | \$
833,729 |
| Aggregate indebtedness | \$
21,376 |
| Percentage of aggregate indebtedness to net capital | 2.29% |
Reconciliation with Company's Computation of Net Capital Included in Part llA of Form X-17 A-5 as of December 31 , 2021
There is no significant difference between net capital reported in Part llA of Form X-17 A-5 as of December 31 , 2021 and net capital as reported above.
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### Kiley Partners, Inc.
## Schedule II
### Computation For Determination Of Reserve Requirements Under Rule 15c3-3 Of The Securities And Exchange Commission As Of December 31, 2021
The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, pursuant to paragraph (k)(2)(ii) of the rule.
#### Schedule Ill
## Information Relating To The Possession Or Control Requirements Under Rule 15c3-3 Of The Securities And Exchange Commission As Of December 31, 2021
The Company is exempt from the provisions of Rule 15c3-3 under the Securities Exchange Act of 1934, pursuant to paragraph (k)(2)(ii) of the rule.
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# **EXEMPTION REPORT**
### **SEA Rule 17a-5(d)(4)**
January 18, 2022
RUBIO CPA, PC 900 Circle 75 Parkway Suite 1100 Atlanta, Georgia 30339
To Whom it May Concern:
The below information is designed to meet the Exemption Report criteria pursuant to SEA Rule 17a-5(d)(4):
Kiley Partners, Inc. is a broker/dealer registered with the SEC and FINRA. Pursuant to paragraph k(2)(ii) of Rule 15c3-3, the Company is claiming an exemption from Rule 15c3-3 for the fiscal year ended December 31, 2021.
The Company has met the identified exemption provisions throughout the most recent fiscal year without exception.
ect to the best of my and the Company's knowledge.
Name: Michael Kiley
Title: CEO
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# **RUBIO CPA, PC**
CERTIFIED PUBLIC ACCOUNTANTS 2727 Paces Ferry Road SE
Building 2, Suite 1680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 770 838-7123
### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Stockholder of Kiley Partners, Inc.
We have reviewed management's statements included in the accompanying Broker Dealers Annual Exemption Report in which (I) Kiley Partners, Inc. identified the fol lowing provisions of 17 C.F.R. § l 5c3-3(k) under which Kiley Partners, Inc. claimed an exemption from 17 C.F.R. § 240. I ScJ-3: (k)(2)(ii) (the "exemption provisions"); and, (2) Kiley Partners, Inc . stated that Kiley Partners, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. Kiley Partners, Inc. 's management is responsible for compliance with the exemption provisions and its 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 Kiley Partners, Inc.'s compliance with the exemption provisions. A review is substantially less in scope than an examination, the obj ective 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)(2)(ii), of Rule l Sc3-3 under the Securities Exchange Act of 1934.
February 14, 2022 Atlanta, GA
~®>-"- Rubio CPA, PC
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# RUBIO CPA, PC
CERTIFIED PUBLIC ACCOUNTANTS 2727 Paces Ferry Road SE
Building 2, Suite 1680 Atlanta, GA 30339 Office: 770 690-8995 Fax: 770838-7123
# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FTRM ON APPL YING AGREED-UPON PROCEDURES
To the Stockholder of Kiley Partners, Inc.
We have performed the procedures included in Rule I 7a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below and were agreed to by Kiley Partners, Inc. and the SI PC, solely to assist you and SIPC in evaluating Kiley Partners, lnc.'s compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7) for the year ended December 3 I, 2021. Kiley Partners, lnc.'s management is responsible for its Forn1 SIPC-7 and for its compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with standards established by the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American lnstitute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we 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 we performed, and our 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 amount reported on the Annual Audited Report Form X-17 A-5 Part llI 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 SJPC-7 and in the related schedules and working papers suppo1ting the adjustments, noting no differences.
We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on Kiley Partners, Inc.'s compliance with the applicable instructions of the Form SIPC-7 for the year ended December 31, 2021 . Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
This report is intended solely for the information and use of Kiley Partners, Inc. and the SIPC and is not intended to be and should not be used by anyone other than these specified parties.
February 14, 2022 Atlanta, GA
*1Ud-'\*-* a. Rubio CPA~ PC
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| SIPC-7 | |
|-----------------|--|
| (36-R EV 12/18) | |
# SECURITIES INVESTOR PROTECTION CORPORATION Mail Code: 8967 P.O. Box 7247 Philadelphia, PA 19170-0001
**SIPC-7** (36-REV 12/18)
# General Assessment Reconciliation
For the fiscal year ended ~/~~ *12\_! \_ \_\_\_ \_* (Read carefully the instructions in your Working Copy before completing this Form)
# TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS
1. Name of Member, address, Designated Examining Authority, 1934 Act registration no. and month in wh ich fiscal year ends for purposes of the audit requ irement of SEC Rule 17a-5:
| | l
o4805o
KILEY PARTNERS, INC.
16 BEL GIORNO COURT
HENDERSON, NV 89011 | Note: If any of the information shown on the
mailing label requires correction, please e-mail
any corrections to form@sipc.org and so
indicate on the form filed.
Name and telephone number of person to
contact respecting this form . |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| | _J
L | Rick Alvarez 770.407.3459 |
| 2. A.
B. | General Assessment (item 2e from page 2)
Less payment made with SIPC-6 filed (exclude interest)
7/26/21 | \$2,052 |
| | Date Paid
C. Less pri or overpayment applied
D. Assessment balance due or (overpayment) | 1,096 |
| E. | Interest computed on late payment (see instruction E) for ______ days at 20% per annum
F. Total assessment balance and interest due (or overpayment carried forward) | 0
\$1,096 |
| | q
D
D
G. PAYMENT:
the box
1,
Check mailed to P.O. Box
Funds Wired
AC
096
Total (must be same as F above) | ----------- |
| | 0
H. Overpayment carried forward | \$( ~~~~~~~~~~ |
| | 3. Subsidiaries (S) and predecessors (P) included in this form (give name and 1934 Act registrat ion number): | |
| The SIPC member submitting this form and the
person by whom it is executed represen t thereby
that all information co ntained herein is true , correct | | KILEY PARTNERS, INC. | | |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|----------------------------------------------------------|--|--|
| and complete. | | (Name of Corporation, Partnership or other organization) | | |
| | Michael Kiley | ~~!~7o~i.~~d ~Y ~'.~~4·~~~~~0' | | |
| | | (Authorized Signature) | | |
| ~
____
, 20E.__.
Dated
day of_F_E_B | CEO | | | |
| | | (Title) | | |
| This form and the assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form
for a period of not less than 6 years, the latest 2 years in an easily ac cessible place. | | | | |
| LU | a: Dates: | | | | |
|---------------|------------------|--------------------------------|----------|---------------|--------------|
| 3:
LU | | Postmarked | Received | Reviewed | |
| >
LU
a: | Ca lculations | | | Documentation | Forward Copy |
| a | c.:> Exceptions: | | | | |
| | | (I) Disposition of exceptions: | | | |
{18}------------------------------------------------
# **DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT**
Amounts for the fiscal period beginning \_,\_,,,\_21 \_\_\_\_ \_ and ending \_•213 \_ ,\_12• \_\_\_\_ \_
| Item No.
2a. Total revenue (FOCUS Line 12/Part llA Line 9, Code 4030) | Eliminate cents
1,407,474
\$ |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|
| 2b. Additions:
(1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and
predecessors not included above. | |
| (2) Net loss from principal lransactions in securities in lrading accounts. | |
| (3) Net loss from principal lransactions in commodities in trading accounts. | |
| (4) Interest and dividend expense deducted in determining item 2a. | |
| (5) Net loss from management of or participation in the underwriting or distribution of securities. | |
| (6) Expenses other than advertising, printing, registration fees and legal fees deducted in determining net
profit from management of or participation in underwriting or distribution of securities. | |
| (7) Net loss from securities in investment accounts. | |
| Tota l additions | 0 |
| 2c. Deductions:
(1) Revenues from the distribution of shares of a registered open end investment company or unit
investment trust, from the sa le of variable annu ities, from the business of insurance, from investment
advisory services rendered to registered investment companies or insurance company separat·e
accounts, and from transactions in security futures products. | 31 |
| (2) Revenues from commodity transactions. | |
| (3) Commissions, floor brokerage and clearance pa id to other SIPC members in connection with
securities transactions. | 37,305 |
| (4) Reimbursements for postage in connection with proxy solicitation . | |
| (5) Net gain from securities in investment accounts. | |
| (6) 100% of commissions and markups earned from transactions in (i) certificates of deposit and
(ii) Treasury bills, bankers acceptances or commercial paper that mature nine months or less
from issuance date. | |
| (7) Direct expenses of printing advertising and legal fees incurred in connection with other revenue
related lo the securities business (revenue defined by Section 16(9)(L) of the Act). | |
| (8) Other revenue not related either directly or indirectly to the securities business.
(See Instruction C): | |
| (Deductions in excess of \$100,000 require documentation) | |
| (9) (i) Total interest and dividend expense (FOCUS Line 22/PART llA Line 13,
----------
2 146
Code 4075 plus line 2b(4) above) but not in excess
\$_
'
of total interest and dividend income. | |
| (ii) 40% of margin interest earned on customers securities
accounts (40% of FOCUS line 5, Code 3960). | |
| Enter the greater of line (i) or (ii) | 2,146 |
| Total deductions | 39,482 |
| 2d. SIPC Net Operating Revenues | \$ 1,367,992 |
| 2e. General Assessment @ .0015 | |
| | (to page 1, line 2.A.) |
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# **SIPC-7 Instructions**
This fo rm is to be fi led by all members of the Securities Investor Protection Corporation whose fiscal years end in 2011 and annually thereafter. The form together with the payment is due no later than 60 days after the end of the fiscal year, or after membership termination. Amounts reported herein must be readily reconcilable with the member's records and the Securities and Exchange Commission Rule 1 ?a-5 report filed. Questions pertaining to this form should be directed to SIPC via e-mail at form@sipc.org or by telephonin g 202-371-8300.
A. For the purposes of this form, the term "SIPC Net Operating Revenues" shal l mean gross revenues from the securities business as defined in or pursuant to the applicable sections of the Securiti es Investor Protection Act of 1970 ("Act") and Arti cle 6 of SIPC's by laws (see page 4), less item 2c(9) on page 2\_
B. Gross revenues of subsidiaries, except fo reign subsidiaries, are required to be included in SIPC Net Operating Revenues on a consolidated basis except fo r a subsidiary fi ling separately as explained hereinafter.
If a subsidiary was required to fi le a Rule 17a-5 annual audited statement of income separately and is also a SI PC member, then such subsidiary must itself fi le SI PC-7, pay the assessment, and should not be consolidated in your SIPC-7.
SIPC Net Operating Revenues of a predecessor member which are not included in item 2a, were not reported separately and the SIPC assessments we re not paid thereon by such predecessor, shall be included in item 2b(1).
C. Your General Assessment should be computed as fol lows:
- (1) line 2a For the appl icable period enter total revenue based upon amounts reported in yo ur Rule l?a-5 Annual Audited Statement of Income prepared in conformity with general ly accepted accounting principles applicable to securities brokers and dealers. or if exempted from that rule, use X-l?A-5 (FOCUS Report) Lin e 12, Code 4030.
- (2) Ad/ustments The purpose of the adjustments on page 2 is to determine SIPC Net Operating Revenues.
- (a) Addjfioas Lines 2b(1) through 2b(7) assure th at assessable income and gain items of SIPC Net Operating Revenues are totaled, unreduced by any losses (e.g., if a net loss was incurred for the period from al I transactions in trading account secu rities, that net loss does not reduce other assessable revenues). Thus, line 2b(4) would include all short divide111d and interest payments including those incurred in reverse conversion accounts, rebates on stock loan positions and repo interest which have been netted in determining line 2(a).
- (b) Deductions Line 2c(1) through line 2c(9) are either provided for in the statue, as in deducti on 2c(1), or are allowed to arri ve at an assessment base consisting of net operating revenues from the securities business. For example, line 2c(9) allows for a deducti on of either the total of interest an d dividend expense (not to exceed interest and dividend income), as reported on FOCUS line 221PART llA line 13 (Co de 4075), plus line 2b(4) or 40% of interest earned on customers' securities accounts (40% of FOCUS Line 5 Code 3960). Be certain to complete both line (i) and (i i), entering the greater of the two in the fa r right co lumn\_ Dividends paid to shareholders are not considered "Expense" and thus are not to be included in the deduction. Likewise, interest and divid en ds paid to partners pursuant to the partnership agreements would also not be deducted.
If the amount reported on line 2c (8) aggregates to \$100,000 or greater, supporting documentation must accompany the form that identifies these deductions. Examples of support information include; contractual agreements, prospectuses, and limited partnership documentation.
- (i) Determine your SIPC Net Operating Revenues, item 2d, by adding to item 2a, the total of item 2b, and deducting the total of item 2c.
- (ii) Multiply SIPC Net Operating Revenues by the applicable rate. Enter th e resulti ng amount in item 2e and om line 2A of page 1.
- (iii) Enter on line 28 the assessment due as reflected on the SIPC-6 previously fi led.
- (iv) Subtract I ine 28 an d 2C from line 2A and en ter the difference on line 20. Th is is the balance due fo r the period.
- (v) Enter interest co mputed on late payment (if applicable) on line 2E.
- (vi) Enter the total due on line 2F and the payment of the amount due on line 2G.
- (vii) Enter overpayment carried forward (if any) on lin e 2H.
D. Any SIPC member which is also a bank (as defined in the Securities Exchange Act of 1934) may exclude from SIPC Net Operating Revenues dividends and interest received on securities in its investment accounts to the extent that it can demonstrate to SIPC's sati sfaction that such securities are held, an d such dividen ds and interest are received, solely in connection with its operations as a bank and not in connection wi th its operations as a broker, dealer or member of a national securities exchange. Any member who excludes from SIPC Net Operating Revenues any dividends or interest pursuant to the preceding sentence shall file with this form a supplementary statement setti ng forth the amount so excluded and proof of its en titlement to such exclusion.
E. Interest on Assessments If al l or any part of assessment payable under Secti on 4 of the Ac t has not been postmarked within 15 days after the due date tlhereof, the member shal l pay, in addition to the amount of the assessment, interest at the rate of 20% per annum on the unpaid porti on of the assessment fo r each day it has been overdue.
F. Securities and Exchange Commission Rule 17a-5(e) (4) requires those who are not exempted from the audit require ment of the ru le and whose gross revenues are in excess of \$500,000 to fi le a supplemen tal independent public accountants report covering this SIPC-7 no later than 60 days after their fiscal year ends.
Mail th is completed form to SIPC together with a check for the amount due, made payable to SIPC, using the enclosed return PO BOX envelope, pay via ACH Debit Au thori zation through SIPC's ACH system at www.sipc.orglfor-membersl assessments or wire the payment t o:
On the wire identify the name of the firm and its SEC Registration 8-# and label it as "for assessment." Please fax a copy of the assessment form to (202)-223-1679 or e-mail a copy to form@sipc.org on the same day as the wire.
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# **From Section 16(9) of the Act:**
The term "gross revenues from the securities bus iness" means the sum of (but without duplication)-
(A) commissions earned in connection with transactions in securities effected for customers as agent (net of commissions paid to other brokers and dealers in connection with such transactions) and markups with respect to purchases or sales of securities as principal;
(B) charges fo r executing or clearing transactions in securities for other brokers and dealers;
(C) the net realized gain, if any, from principal transactions in securi1ies in trading accounts;
(D) the net profit, if any, from the management of or participation in t he underwriting or distribution of securities;
(E) interest earned on customers' securities accounts;
(F) fees for investment advisory services (except when rendered to one or more registered investment companies or insurance company separate accounts) or account supervision with respect to securities;
(G) fees for the solicitation of proxies with respect to , or tenders or exchanges of, securities;
(H) income from service charges or other su rcharges with respect to securities;
(I) except as otherwise provided by rule of the Commission, dividends and interest received on securities in investment accounts of the broker or dealer;
(J) fees in connection with put, call, and other options transactions in securities;
(K) commissions earned for transactions in (i) certificates of deposit, and (ii) Treasury bills, bankers acceptances, or commercial paper which have a maturity at the time of issuance of not exceeding nine months, exclu sive of days of grace, or any renewal thereof, the maturity of which is likewise limited, except that SIPC shall by by law include in the aggregate of gross reven ues only an appropriate percentage of such comm issions based on SIPC's loss experience with respect to such instrume nts over at least the preceding five years; and
(L) fees and other income from such other categories of the securities business as SI PC shall provide by bylaw.
Such term includes reve nues earned by a broker or dealer in connection with a transaction in the portfolio margining account of a customer carried as securities accounts pursuant to a portfolio margining program approved by the Commission. Such term does not include revenues recei ved by a broker or dealer in connection with the distribution of shares of a reg istered open end investment company or uni t in vestment trust or revenues derived by a broker or dealer from the sales of variable annuities, the business of insurance, or transactions in security futures products.
# **From Section 16(14) of the Act:**
The term "Security" means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, any co llateral trust certi ficate, preorganization certificate or subscription, transferable share, voting trust certif icate, certificate of deposit, certificate of deposit for a security, or any security future as that term is defined in section 78c(a)(55)(A) of this title , any in vestment co ntract or certificate of interest or participation in any profit-sharing agreement or in any oil, gas or mineral royalty or lease (if such investment contract or interest is the subject of a reg istration statemen t with the Commission pursuant to the provisions of the Securities Act of 1933 [15 U.S.C. 77a et seq.)), any put, cal l, straddle, option, or privi lege on any security, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, any certificate of interest or participation in, temporary or interi m certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase or sel l any of the foregoing, and any othe1r instrument common ly known as a security . Except as specifically provided above, the term "security" does not include any currency, or any commo·dity or re lated contract or futures co ntract, or any warrant or right to subscribe to or purchase or sell any of th e foregoing.
# **From SIPC Bylaw Article 6 (Assessments): Section 1 (f):**
The term "gross revenues from the securities bus iness" includes the revenues in the definition of gross revenues from the securities business set forth in the applicable sections of the Act.
# **Section 3:**
For purpose of this article:
(a) The term "securities in trading accounts" shall mean securities held for sale in the ordinary course of business and not identified as having been held for investment.
(b) The term "securities in investment accounts" shall mean securities that are clearly identi fied as having been acquired for investment in accordance with provisions of the Internal Revenue Code applicable to dealers in securities.
(c) The term "fees and other income from such other categories of the securities business" shall mean all revenue related either directly or indirectly to the securities busin ess except revenue included in Section 16(9)(A)-(L) and reve nue specifically excepted in Section 4(c)(3)(C)[ltem 2c(1), page 2].
Note: ti the amount of assessment entered on tine 2e of SIPC·7 is greater than 112 ol 1% of ·gross revenues from the securities busines.s• as defined above, you may submit that calculation along with the SIPC-7 lorm to SIPC and pay the smaller amount, subject I() review by your Examining Authority and by SIPC.
#### **s1pc Examining Aurhorilies·**
| ASE | American Stock Exchange, LLC | FINRA | Financial Industry Regulatory Authority |
|-----|------------------------------|-------|-----------------------------------------|
| | | | |
| | | | |
CBOE Chicago Board Options Exchange, Incorporated NYSE Arca, Inc. CHX Chicago Stock Exchange, Incorporated **4** NASDAQ OMX PH LX
SIPC Securities Investor Protection Corporation
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.