# J. ALDEN ASSOCIATES, INC. X-17A-5 (2020-02-26) — Broker-dealer annual report - Company: J. ALDEN ASSOCIATES, INC. - Form: X-17A-5 - Filed: 2020-02-26 - Period: 2019-12-31 - Accession: 0001005400-20-000001 - CIK: 1005400 - File #: 8-48938 - Material weakness: No - Auditor: Romeo & Chiaverelli LLC - Auditor location: Bala Cynwyd, PA - Contact: Peter Engelbach - Phone: 2155728700 - Signed by: Peter Engelbach (President) Original filing: https://www.sec.gov/Archives/edgar/data/1005400/000100540020000001/annualaudit4.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington,D.C. 20549** | ANNUAL AUDITED REPORT | |-----------------------| | FORM X-17 A-5 | | PART Ill | | 0MB APPROVAL | | | | | |----------------------------|-----------------|--|--|--| | 0MB Number: | 3235-0123 | | | | | Expires: | August 31, 2020 | | | | | Estimated average burden | | | | | | hours per response i 2.00 | | | | | | | SEC FILE NUMBER | |---------|-----------------| | 8-48938 | | **FACING PAGE** **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING01/01/2019 | | AND ENDING 12/31/2019 | | |---------------------------------------------------------------------------|---------------------------------------------------------------------|-----------------------|--------------------------------| | | MM/DD/YY | | MM/DD/YY | | | A. REGISTRANT IDENTIFICATION | | | | NAME oF BROKER-DEALER: J Alden Associates Inc | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | 261 Old York Rd, Suite 837 | | | | | | (No. and Street) | | | | JenlkI
II'
Certified Public Accountant | | | | | Public Accountant | | | | | B | Accountant not resident in United States or any of its possessions. | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.17 a-5(e)(2)* > **Potential 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 0MB control number.** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** I, **\_P\_e\_te\_r\_A\_,\_E\_n\_g\_e\_l\_b\_a\_ch \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ,** swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of **J Alden Associates Inc** --------------------------------------------, as of **December 31** are true and correct. I further swear ( or affirm) that neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: ignature ~ES1 De/01 *(* Title ( Notary Public This report\*\* contains (check all applicable boxes): - **0** (a) Facing Page. - **0** (b) Statement of Financial Condition. - ~ (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). - **0** ( d) Statement of Changes in Financial Condition. - **0** ( e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - **0** (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - - (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. - ~ (g) Computation of Net Capital. **(i)** Information Relating to the Possession or Control Requirements Under Rule l 5c3-3. - **0** (j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule l 5c3-3. - **J'fi,(k)** A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of consolidation. - (1) An Oath or Affirmation. - (m) A copy of the SIPC Supplemental Report. - (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. *\*\*For conditions of confidential treatment of certain portions of this filing, see section 240.l 7a-5(e)(3).* {2}------------------------------------------------ ### REPORT CONTAINING flNANCM,L STATEMENTS AND SUPPORTING SCHEDULES ### F'OR THE YEAR ENDED DECEMBER 31, 2019 A.ND ACCOUNTANT'S REPORT THEREON PURSUANT TO RULE l 7 A·5 OF THE SECURITIES AND EXCHANGE COMMISSWN {3}------------------------------------------------ ### DECEMBER 31, 2019 #### TABLE OF CONTENTS | | Page | |-----------------------------------------------------------------------------------------------|------------| | Facing Page to Form X-17 A-5 2A
Affirmation of Officer 2B | | | Report oflndependent Registered Public Accounting Firm | I -
2 | | Statement of Financial Condition | 3 | | Statement of Income | 4 | | Statement of Changes in Stockholders' Equity | 5 | | Statement of Changes in Liabilities Subordinated
to Claims of General Creditors | 6 | | Statement of Cash Flows | 7 | | Notes to Financial Statements | 8 -
13 | | Supplementary Information | | | Schedules I, II, III | 14 -
16 | | Report of Independent Registered Public Accounting Finn on Applying
Agreed-Upon Procedures | 17 -
18 | | Report of Independent Registered Public Accounting Firm Exemption
Repo1t Review | 19 | {4}------------------------------------------------ ### ROMEO & CHIAVERELLI, LLC CERTJFIEO PUBLIC ACCOUNTANTS ONE BALA AVENUE SUITE 234 BALA CYNWYD, PA 19004 ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors of J. Alden Associates, Inc. #### **Opinion on .the Financial Statements** We have audited the accompanying statement of financial condition of J Alden Associates, lnc.(the "Company"), as of December 31, 2019, and the related statements of operations, changes in stockholders' equity and cash flows for the year then ended, and the related notes and supplementary information (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, 2019, and the results of Its operations and its cash flows for the year ended December 31, 2019, 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 these 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. 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. #### **Auditor's Report on Supplementary Information** The supplementary information, the Computation of Net Capital under Rule 15c3~1 of the Securities and Exchange Commission and the Computation for Determination of Reserve Requirements and Information Relating to Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commis~ion OR contained in schedules I and 11,has been subjected to audit procedures performed in conjunction with the audit of the Companyis financial statements. The supplementary information is the responsibility of the Company'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 supplementary information, *'!'e* evaluated whether the supplementary information, including Its form and content, is {5}------------------------------------------------ presented in conformltywith 17 C.F.R. § 240.17a-:5. In our opinion, the supplementary 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 2017. February 24, 2020 Bala Cynwyd, PA 19004 {6}------------------------------------------------ ### ST A TEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 | ASSETS | | |---------------------------------------------------------------------------------|-----------------| | CURRENT ASSETS | | | Cash | \$
689,067 | | Restricted Cash | 25,165 | | Receivables From Brokers and Dealers | 7,615 | | Receivables From Non-Customers | 321,199 | | Right of Use Lease Asset, Net | 34,772 | | Prepaid Expenses | 41,698 | | Total Current Assets | \$
1,119,516 | | FURNITURE AND EQUIPMENT | | | Furniture and Equipment, at Cost | | | Net of Accumulated Depreciation of \$83,887 | I 1,414 | | OTHER ASSETS | | | Security Deposits | 2,315 | | TOTAL ASSETS | \$
1,133,245 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | LIABILITIES | | | Other Borrowed Funds | \$
16,005 | | Accounts Payable and Accrued Expenses | 905,174 | | Lease Liabilities | 36,411 | | Deferred Revenue | 54,169 | | Total Current Liabilities | 1,011,759 | | STOCKHOLDERS' EQUITY | | | Common Stock. Class A, 500 shares authorized, IO issued and | | | outstanding, no par value, no stated value | 120,391 | | Common Stock, Class B, 500 shares authorized, 90 shares issued and outstanding, | | | no par value, no stated value | 20,000 | | Accumulated Deficit | (18,905) | | Total Stockholders' Equity | 121,486 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | \$
1,133,245 | | | | {7}------------------------------------------------ #### ST A TEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31, 20 I 9 | Revenues | | |------------------------------------|---------------| | Commissions | \$
382,518 | | Interest and Dividends | 8,610 | | Mutual Fund Fees | 115,996 | | Other Income | 3,082,844 | | Total Revenues | 3,589,968 | | | | | Expenses | | | Commission Expense | 2,840,990 | | Employee Compensation and Benefits | 388,697 | | Clearance Fees | 38,294 | | Professional Fees | 59,774 | | Occupancy Expense | 28,208 | | Communication Expense | 26,768 | | Other Operating Expenses | 202,990 | | Total Expenses | 3,585,721 | | Net Income | \$
4,247 | {8}------------------------------------------------ ### STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 2019 | Common Stock -
Class A, no par value, 500 Shares Authorized,
10 Shares Issued | | |-------------------------------------------------------------------------------------|----------------| | Shares Outstanding, January I, 2019 | | | Shares Outstanding, December 31, 2019 | | | Balance, at Cost, January 1, 2019 | \$
120,391 | | Balance, at Cost, December 31, 2019 | \$
120,391 | | Common Stock -
Class B, no par value, 500 Shares Authorized,
90 Shares Issued | | | Shares Outstanding, January 1, 2019 | 90 | | Shares Outstanding, December 31, 2019 | 90 | | Balance, at Cost, January I, 2019 | \$
20,000 | | Balance, at Cost December 3 1, 20 19 | \$
20,000 | | Accumulated Deficit | | | Balance, January 1, 2019 | \$
(23,152) | | Net Income | 4,247 | | Balance, December 31, 2019 | \$
(18,905) | | Total Stockholders' Equity | \$
121,486 | {9}------------------------------------------------ ### STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDfTORS FOR THE YEAR ENDED DECEMBER 31, 20 I 9 | Subordinated Borrowings at January 1, 2019 | \$
0 | |----------------------------------------------|---------| | Changes In Subordinated Borrowings | 0 | | Subordinated Borrowings at December 31, 2019 | 0
\$ | The notes to financial statements are an integral part of these financial statements. {10}------------------------------------------------ #### ST A TEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2019 Cash Flows From Operating Activities: | Net Income | \$
4,247 | |-------------------------------------------------------|-------------| | Adjustments to Reconcile Net Income to Net Cash | | | Provided by Operating Activities: | | | Depreciation Expense | 3,184 | | (Increase) In Assets | | | Receivables from Brokers and Dealers | (29,195) | | Receivables from Non-Customers | (265,614) | | Right Of Use Lease Asset | (34,772) | | Prepaid Expenses | (19,093) | | Increase (Decrease) In Liabilities: | | | Accounts Payable and Accrued Expenses | 325,057 | | Accrued Payroll Taxes | (564) | | Lease Liability | 36,411 | | Deferred Revenue | 54,169 | | Total Adjustments | 69,583 | | Net Cash Provided by Operating Activities | 73,830 | | Cash Flows From Investing Activities: | | | Purchase of Furniture and Equipment | (8,998) | | Net Cash Used By Investing Activities | (8,998) | | Cash Flows From Financing Activities: | | | Proceeds From Other Borrowed Funds | 20,412 | | Payments on Other Borrowing Funds | (16,388) | | Net Cash Provided By Financing Activities | 4,024 | | Net Increase In Cash | 68,856 | | Cash-January 1,2019 | 620,211 | | Cash -
December 31, 2019 | 689,067 | | Supplemental Cash Flows Disclosures:
Interest Paid | \$
714 | {11}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 Note I ### SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES J. Alden Associates, Inc. ("Company") was incorporated on November 3, 1995. The Company received its license effective June 1, 1996 as a broker and dealer in securities under the Securities Exchange Act of 1934 with the Financial Industry Regulatory Authority ("FlNRA") and sells investment and insurance products. ### 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 repotied amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ### RESTRICTED CASH Restricted cash consists of a reserve requirement of \$25,000 per agreement with the clearing broker/dealer, and earnings thereupon. ### RECEIVABLES FROM BROKERS AND DEALERS AND NON-CUSTOMERS The Company considers receivables from brokers and dealers and non-customers to be fully collectible at December 31, 2019; accordingly, no allowance for doubtful accounts has been recorded. Bad debt expense was \$ - 0 - for the year ended December 31, 2019. Management monitors outstanding balances and account balances are charged off after all means for collection have been exhausted and the potential for collection is remote. The Company does not have off-ba.lance sheet credit exposure related to the receivables ### Accounting Pronouncements -ASC 606 Revenue Recognition Although total revenues may not be materially impacted by the current guidance, management notes changes to the disclosures based on the additional requirements prescribed by ASC 606. These new disclosures include information regarding the judgments used in evaluating when and how revenue is recognized and disclosures related to contract assets and liabilities. {12}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 ### SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued #### Note 1, Continued #### ASC 842 Leases Although the economic or legal characteristics of these leases are not altered, the impact on the presentation of assets and liabilities on financial statements may be material. Also, as a broker-dealer registered with the Securities and Exchange Commission ("SEC") and Financial Industry Regulatory Authority ("FINRA"), the Company is subject to SEC Rule 15C3-1, the Net Capital rule, under which the lease asset would be recorded as a non-allowable asset and the associated liability would be recorded as aggregate indebtedness, both of which could have a materially negative effect on Net Capital computed under SEC Rule 15c3-1. On May 31, 2016, the Securities Industry and Financial Markets Association ("SIFMA") requested relief rom the SEC from the net capital impact of the lease capitalization required under ASC 842. On November 8, 2016, the SEC issued a "no action" letter permitting broker-dealers to add back to Net Capital the operating lease asset to the extent of the associated operating lease liability. If the value of the operating lease liability exceeds the value of the operating lease asset, the amount by which the liability's value exceeds the associated lease asset must be deducted for net capital purposes. The Company believes that the relief provided by the SEC "no action" letter will substantially negate the effect of the application of ASC 842 on the Company's net capital position. #### FURNITURE AND EQUIPMENT Furniture and equipment are stated at cost. Expenditures for maintenance and repairs are charged against operations. Renewals and betterments that materially extend the life of the assets are capitalized. Depreciation is provided on a straight-line basis, over the estimated useful lives of the related assets. The estimated useful lives of the depreciable assets are as follows: | Furniture | 7 Years | |--------------------|---------| | Computer Equipment | 3 Years | | Office Equipment | 5 Years | When prope1iies are retired or sold, the asset values and related reserves are eliminated from the accounts and any resultant gain or loss is included in earnings. #### COMMISSIONS Commissions and related expenses are recorded on a trade-date basis as securities transactions occur. The federal, state and local tax returns of the Company for 2015 through 2018 are subject to examination by the taxing authorities, generally for three years after they were filed. {13}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 #### SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued #### Note 1, Continued #### INCOME TAXES The Company has elected to be treated as a small business corporation pursuant to Section 1372(a) of the "Internal Revenue Code" and the Pennsylvania State Revenue Code. Under those provisions, the Company does not pay federal or state income taxes on its taxable income. Instead, the stockholder is liable for individual federal and state income taxes on his share of the Company's taxable income. #### Note 2 #### FURNITURE, EQUIPMENT AND DEPRECIATION Furniture, equipment and the related accumulated depreciation at December 31, 20 I 9 consists of the following: | Furniture | \$
66,714 | |--------------------------------|-----------------| | Computer Equipment | 21,446 | | Office Equipment | 7 141 | | Total | 95,301 | | Less: Accumulated Depreciation | 83,887 | | Net Furniture and Equipment | \$ ____ 11.,414 | Depreciation expense for the year ended December 31, 2019 was \$3,184. {14}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 Note3 #### OTHER BORROWED FUND Loan payable to AFCO. Payable in monthly installments of \$2,362.10 including interest at a rate of9.85% maturing July 16, 2020. This loan is unsecured. \$ 16..,0.05-. Interest expense for the year ended December 3 I, 2019 was \$714. Note4 #### OPERA TING LEASE COMMITMENTS The Company has entered into leasing arrangements for facilities. Rent expense incurred for the year ended December 3 I, 2019 was \$28,208, which is included in occupancy expense. As of December 31, 2019, the remaining future minimum lease payments are as follows: | December 31, 2020
May 31, 2021 | \$
25,609
10,802 | |----------------------------------------------------|------------------------| | Total Payments Due Under Finance Lease Liabilities | | The weighted average remaining lease term for the operating lease is seventeen ( 17) months. {15}------------------------------------------------ ### NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 Note 5 ### PENSION PLAN The Company has established a cash or deferred arrangement simplified employee pension plan (SEP). The plan covers those employees who have attained the age of twenty-one (21) years and have provided service to the Company in one of the preceding five (5) years. Contributions are at the discretion of Management. For the year ended December 31, 2019, there was no discretionary contribution. Note 6 ### NET CAPITAL REQUIREMENTS The Company is subject to the net capital requirements of the Financial Industry Regulatory Authority ("FIN RA") and the Uniform Net Capital requirements of the Securities and Exchange Commission (SEC) under Rule 15c3-1 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 I. Pursuant to "FINRA" Rules, the Company is required to maintain minimum net capital of either \$5,000 or 1/15 (6 2/3%) of the aggregate indebtedness, whichever is greater. At December 31, 2019 the Company had net capital of \$33,614 which created a deficit of \$31,518. The Company's net capital ratio was 29.1 to 1. The Company prior to December 31, 2019 has been in compliance with the requirements of Rule 15c3-l. As of January 1, 2020, the net capital was \$89,442 which was \$28,072 in excess of the \$61,350 required to be maintained at that date. The Company as of January 1, 2020, has corrected this deficit. Note 7 ### SUBSEQUENT EVENTS Events subsequent to December 31, 2019 of the Company has been evaluated through February 24, 2020, which is the date the financial statements were available to be issued, for the purpose of identifying events requiring recording or disclosure in the financial statements for the year ended December 31, 2019. Note 8 #### CONTINGENCIES In the normal course of business, there can be various claims against the Company. In the opinion of the Company's management and counsel, the amount of such losses that might result from these claims, if any, would not materially affect the Company's financial position. The notes to financial statements are an integral part of these financial statements. {16}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 #### Note9 CONCENTRATIONS The Company maintains cash accounts at several financial institutions. Cash balances at each financial institution in excess of \$250,000 exceed the insurable limit as allowed by FDIC. At times, cash balances may exceed insurable amounts. The Company maintains cash and investments at a brokerage firm in which cash and securities are protected from loss by the Securities Investor Protection Corporation (SIPC). The limit of SIPC protection is \$500,000, which includes a \$250,000 limit for cash. At times, balances may exceed insurable amounts. Note 10 ### DEFERRED REVENUE Deferred revenue represents affiliation fees billed in 2019 for the period beginning January 1, 2020. At December 31, 2019, deferred revenue consisted ofthe following: Affiliation Fees Note 11 ### COMMON STOCK~ CLASS B -SUBSEQUENT EVENT The original shareholder has entered into an agreement effective March 2, 2018 to sell thirty-three and one third percent (33 1/3%) of his outstanding Class B shares (90 shares) on March 2, 2018, January 1, 2019 and January 1, 2020, respectively. The original shareholder wil I retain his Class A ten ( I 0) issued shares. In consideration of entering into this agreement, the purchasing shareholder has agreed to contribute \$20,000 into capital. {17}------------------------------------------------ #### SUPPLEMENTARY INFORMATION {18}------------------------------------------------ ### SCHEDULE I COMPUTATION OF NET CAPITAL UNDER RULE 15c3-l OF THE SECURITIES AND EXCHANGE COMMJSSION DECEMBER 31, 2019 | NET CAPITAL | | |------------------------------------------------------------------------|---------------| | Total Stockholders' Equity Qualified for Net Capital | \$
121,486 | | Add: | | | A. Subordinated Borrowings Allowable in Computation of Net Capital | 0 | | Total Capital and Allowable Subordinated Liabilities | 121,486 | | Deductions and/or Charges | | | A. Non-Allowable Assets | | | Receivables From Non-Customers | \$
32,445 | | Furniture and Equipment -
Net | l I,414 | | Other Assets | 44,013 | | Total Deductions/and or Charges | 87,872 | | Net Capital | 33,614 | | AGGREGATE INDEBTEDNESS | | | Items Included in Statement of Financial Condition: | | | Accounts Payable, Accrued and Other Liabilities | \$
976,987 | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | | | Minimum Net Capital Required | \$
65,132 | | Ratio: Aggregate Indebtedness to Net Capital | 29.1 To 1 | | | | | RECONCILATION WITH COMPANY'S COMPUTATION | | | Net Capital, as Reported in Company's Paii II (Unaudited) Focus Report | \$
33,614 | | Net Audit Adjustments | 0 | | | | {19}------------------------------------------------ #### SCHEDULE Ir COMPUTATION OF DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15C-3-3 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 31, 2019 The Company is exempt under Rule 15c3-3(k) (2) (ii) from preparing the Computation for Determination of Reserve Requirements Pursuant to Rule I 5c3-3. {20}------------------------------------------------ #### SCHEDULE III INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION DECEMBER 3 I, 2019 | 1. | Customers' fully paid securities and excess margin securities not
in the respondent's possession or control as of the report date
(for which instructions to reduce to possession or control had been
issued as of the report date but for which the required action
specified under Rule l 5c3-3): | | |----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------| | | A. Number ofitems | | | 2. | Customers' fully paid securities and excess margin securities for
which instructions to reduce to possession or control had not been
issued as of the report date, excluding items arising from "temporary
lags, which result from nom1al business operations as permitted
under Rule 15c3-3: | \$~~_Q | | | Number of Items
A. | \$=Jl | {21}------------------------------------------------ ### **ROMEO** & **CHIAVERELLI LLC ONE BALA PLAZA SUITE234 BALA CYNWYD, PA 19004** ### **Independent Accountant's Agreed-Upon Procedures Report On Schedule Of Assessment And Payments (Form SIPC-7)** To The Board of Directors of: J. Alden Associates, Inc. We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of I 934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below and were agreed to by J. Alden Associates, Inc. and the SIPC, solely to assist you and SIPC in evaluating J. Alden Associates, Inc.'.s compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7) for the year ended December31,2019. J. Alden Associates, Inc.' s management is responsible for its Fonn SIPC-7 and for its cornpliance with those requirements. This agreed-upon procedures engagement was conducted in accotdartce with standards established by the PubHc Company Accounting Oversight Board (United Sta:tes) and in conformance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in Jhis 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 disbursementrecords entries, noting no differences; - 2. Compared the TotalRevenue amounts reported on the Annual Audited FonnX-17 A~S forthe year ended December 31, 2019, with the Total Revenue amount reported in Fonn SPIC-7 forthe year ended December 31, 2019, noting no differences; - 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting rto differences; - 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the rel~ted schedules and working papers supporting the adjustments, noting no differences; and - 5. Compared the amount of any overpayment applied to the cun·ent assessment with the Form SIPC.;7 on which it was originally computed, noting no differences. W.e were not engaged to, ru1d did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on J. Alden {22}------------------------------------------------ Associates, Inc. 's compliance with the applicable instructions of Form SIPC-7 for the year ended December 31,.2019. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures; other matters might have come to our attention tfo~twould have been reported to you. This report is intended solely for the infonnation and use of J. Alden Associat(}S, Inc. and the SIPC and is not intended to be and should not be used by anyone other than these specified parties. &L-JW[,LC Romeo & Chiaverelli, LLC / Bala Cynwyd, PA February 24, 2020 {23}------------------------------------------------ #### DECEMBER 31, 2019 #### TABLE OF CONTENTS Page Independent Accountant's Agreed-Upon Procedures Report On Schedule Of Assessment and Payments (Form SIPC-7) Schedule of Assessment and Payments (General Assessment Reconciliation Form SIPC-7) For the Year Ended December 3 I, 20 l 9 3 4 {24}------------------------------------------------ ### **MEO** & **CHIAVERELLI LLC ONE BALA PLAZA SUITE234 BALA CYNWYD, PA 19004** ### **Report of Independent Registered Public Accounting Firm Exemption Report Review** To the Board of Directors: J. Alden Associates, Inc. We have reviewed management's statements, included in the accompanying Exemption Report; on which J. Alden Associates,· Inc. identified the following provisions of 17 C.F.R. ~15c3-3{k) under which J. Alden Associates~ Inc. claimed an exemption from 17 C.F.R. ~240.15c3-3:{2)(ii). SEC Rule 15c3-3(k)(2)(ii) and J. Alden Associates, Inc. stated that J. Alden Associates, Inc. met the identified exemption provisions throughout the most recent fiscal year witho.ut exception. J. Alden Associates, 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 '1bout J. Alden Associates, Inc. 1 s compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective·ofwhich is the expression ofan 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 15c3-3 under **~:?~LC** Romeo & Chiaverelli, LLG Bala Cynwyd, PA February24, 2020 {25}------------------------------------------------ ### SCHEDULE OF ASSESSMENT AND PAYMENTS (GENERAL ASSESSMENT RECONCILIATION FORM SIPC-7) FOR THE YEAR ENDED DECEMBER 31, 2019 | Total Revenue | \$
3,589,968 | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------| | Deductions: | | | Revenues from the distribution of shares of a registered open
end investment company or unit investment trust, from the sale
of variable annuities, from the business of insurance, from
investment advisory services rendered to registered investment
companies or insurance company separate accounts, and from | | | transactions in security futures products | (3,207,450) | | Commissions, Floor Brokerage and Clearance Fees paid to other
SIPC members in connection with securities transactions | (38,294) | | SIPC Net Operating Revenues | \$
344,224 | | General Assessment @.0015 | 516 | | Payments made with 20 I 9 Form SIPC-6 (Paid July 31, 2019) | 281 | | Balance paid with SIPC-7 (Paid January 31, 2020) | \$
235 | See Accompanying Independent Accountant's Report. {26}------------------------------------------------ # J. *Alden Associates, Inc.* *Peter A. Engelbach President* *The Pavilion* P.O. Box *744 Jenkintown, PA 19046* (215) 572-8700 *www.j-alden.com* ### EXEMPTION REPORT Firm Assertions We confirm to the best of our knowledge and belief that: - 1. J Alden Associates, Inc. claimed an exemption from SEC Rule 15c3-3 under the provisions in paragraph (k)(2)(ii) throughout the calendar year January 1, 2019 to December 31, 2019. - 2. J Alden Associates, Inc. met the identified exemption provisions in SEC rule 15c3 (k)(2)(ii) throughout the calendar year January 1, 2019 to December 31, 2019 without exemption. Officer: \_\_\_\_\_ --+-e-=-(l\_G\_S\_1\_D\_€\_u\_, \_\_\_\_\_\_\_\_\_\_ \_ Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.