# SENTINEL BROKERS COMPANY, INC. X-17A-5 (2021-03-02) — Broker-dealer annual report - Company: SENTINEL BROKERS COMPANY, INC. - Form: X-17A-5 - Filed: 2021-03-02 - Period: 2020-12-31 - Accession: 0001007086-21-000002 - CIK: 1007086 - File #: 8-49005 - Material weakness: No - Auditor: Assurance Dimensions - Auditor location: Margate, FL - Contact: Joseph Lawless - Phone: 5614062242 - Signed by: Joseph Lawless (President) Original filing: https://www.sec.gov/Archives/edgar/data/1007086/000100708621000002/redone1.pdf --- {0}------------------------------------------------ Sentinel Brokers Company, Inc. Financial Statements and Supplemental Schedules Required by the U.S. Securities and Exchange Commission Including Independent Auditor's Report Thereon December 31, 2020 {1}------------------------------------------------ # Sentinel Brokers Company, Inc. Financial Statements Statement of Financial Condition As of December 31, 2020 # ASSETS | Cash and cash equivalents
Commissions receivable
Marketable securities | S | 366,598
97,161
966,753 | |---------------------------------------------------------------------------------------------------------------------------------|---|---------------------------------------------------------| | Furniture and equipment, net of accumulated
depreciation of \$81,447
Receivable from officer | | 1,712
35,259 | | | | \$1.467.483 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | | Liabilities | | | | Accounts payable and accrued expenses
Accrued payroll
Bank Loan | | \$22,966
68,031
114,124
\$205,121 | | Stockholder's equity | | | | Common stock, 200 shares authorized, 100 shares issued
and outstanding, no par value
Paid-in capital
Retained earnings | | 100
564,624
697.638
\$1,262,362
\$1.467.483 | The accompanying notes are an integral part of the financial statements. {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) ### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholder of Sentinel Brokers Company, Inc .: ### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Sentinel Brokers Company, Inc. (the "Company") as of December 31, 2020, the related statements of operations, changes in stockholder's equity, and cash flows for the year then ended, and the related notes and schedules (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, 2020, and the results of its operations and its east 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 Pablic 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 mustatement, 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 Supplemental Information The Computation of Net Capital Pursuant to Rule 15c3-1 of the Securities and Exchange Commission, Computation for Determination of the Reserve Information Relaing to Possession or Control Requirements and Computation for Decermination of the Reserve Requirements Pursuant to Rule 15c3-3 of the Securities and Exchange Commission and Supplemental Schedule Required by Rule 17A-5 as of December 31, 2020 have been subjected to audit procedures performed in conjunction with the Company's financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconcles 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 supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. \$240.17a-5. In our opinion, the Computation of Net Capital Pursuant to Rule 15c3-1 of the Securities and Exchange Commission for Determination of the Reserve Information Relaing to Possession or Control Requirements and Computation for Determination of the Reserve Requirements Pursuant to Rule 15c3-3 of the Securities and Exchange Commission and Supplemental Schedule Required by Rule 17 A-5 as of December 31, 2020 are fairly stated, in all material respects, in relation to the financial statements as a whole. Assurance ( Jimensions We have served as Sentinel Brokers Company, Inc.'s auditor since 2018. Margate, Florida February 25, 2021 > ASSURANCE DIMENSIONS CERTIFIED PUBLIC ACCOUNTANTS & ASSOCIATES also d/b/a McNAMARA and ASSOCIATES, PLLC TAMPA BAY: 4920 W Cypress Street, Suite 102 | Tampa, FL 33607 | Office: 813.443.5048 | Fax: 813.443.5053 JACKSONVILLE: 4720 Salisbury Road, Suite 223 | Jacksonville, FL 32256 | Office: 888 410.2323 | Fax: 813.443.5053 ORLANDO: 1800 Pembrook Drive, Suite 300 | Orlando, FL 32810 | Office: 888.410.2323 | Fax: 813.443.5053 SOUTH FLORIDA: 2000 Banks Road, Suite 218 | Margate, FL 33063 | Office: 754.800.3400 | Fax: 813.443.5053 Different Of Street Port Della {3}------------------------------------------------ ### **MAN , IN .** n bu in on J nu ry 1, 1996. int rm diary f- llitatlng th trading of In titution . ih Company has no retail r registered with the Financial Industry xchange Commission. The Company, r ' funds or securities. There were no n ral r ditor during the year ended December t, m t h v b n prepared on the accrual basis of unttn prin lpl s generally accepted in the United d to b tax d as an "S' Corporation for federal ·s rpor tion, the Company is not subject to u h ub tantlally all taxable items to the ub t to state and local income taxes in Company is required to disclose from uncertain tax positions. The Company 1n r t nd p nalties to recognized tax benefits in income s c.om any did not have any unrecognized tax benefits or a i . s re recognized during the period. The Company and th Company remains subject to income tax ough 2020. There are presently no ongoing income {4}------------------------------------------------ ### **SENTINEL BROKERS COMPANY, INC.** ### **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020** ### Re enue Recognition The ompan follows the prov1s1ons of the Financial Accounting Standards Board "fASB") Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Cust mer . The standard outlines a single comprehensive model for entities to depict the transfer ,of goods or services to customers in amounts that reflect the payment to tl'oh the company expects to be entitled in exchange for those goods or services. Srro'ker:age Commissions. The Company buys and sells securities on behalf of its ins~itiut,ional customers. Each time a customer enters into a buy or sell transaction, the Oo.m,pa.nv charges a commission. Commissions and related clearing expenses are remrded on the trade date (the date that the Company fills the trade order by finding and ooliltract4ng with a counter party and confirms the trade with the customer). The Company be.lieves that the performance obligation is satisfied on the trade date ecause that ,is when the underlying financial instrument or purchaser is identified, the n·oi11\_g ;s agr,eed upon and the risks and rewards of ownership have been transferred to/fmm the customer. 'riradi g Income and Interest and Dividend Income 'Seooritles owned are recorded at current market value. Securities not readily m arketab'le are valued at fair as determined by management, which approximates estcimated realizable value. It is reasonable possible that a change in such estimates m ay occur :in the near term. {5}------------------------------------------------ ## **SENTINEL BROKERS COMPANY, INC.** ## **NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020** ## Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalent and marketable securities. The Compan maintains cash balances with a commercial bank and cash, money market funds and se-curities with a brokerage firm. At times amounts with the bank exceeded federal Deposit Insurance Corporation limits. The amounts at the brokerage firm are co ered up to Securities Investor Protection Corporation ("SIPC") limits. The irresponsibility for processing customer activity rests with Hilltop Securities, Inc. ("Hilltop"}. The Company's clearing and execution agreement provides that Hilltop's 1 oredit losses relating to unsecured margin accounts receivable of the Company's customers are charged back to the Company. In accordance with industry practice, Hilltop records customer transactions on a settlement date basis, which is generally two business days after the trade date. Hilltop is therefore exposed to risk and loss on these transactions in the event of the customer's inability to meet the terms of its contracts, in which case Hilltop may have to purchase or sell the underlying financial instruments at prevailing market prices in order t,o satisfy its customer-related obligations. Any loss incurred by Hilltop is charged back to the Company. The Company, in conjunction with Hilltop, controls off-balance-sheet risk by monitoring the market value and marketing securities to market on a daily basis and by requiring adjustments of collateral levels. Hilltop establishes margin requirements and overall credit limits for such activities and monitors compliance with the applicable limits and industry regulations on a daily basis. ## Estimates Management of the Company uses estimates and assumptions in preparing financial statement in accordance with accounting principles generally accepted in the United States. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses and expenses. Actual results could vary from the estimates management uses. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.