# GOVDESK, LLC X-17A-5 (2021-02-25) — Broker-dealer annual report - Company: GOVDESK, LLC - Form: X-17A-5 - Filed: 2021-02-25 - Period: 2020-12-31 - Accession: 0001050100-21-000001 - CIK: 1050100 - File #: 8-50628 - Material weakness: No - Auditor: LMHS, P.C. - Auditor location: Norwell, MA - Contact: Mark T Manzo - Phone: 201519190 - Website: lmhspc.com - Signed by: Lawrence Pereira (Director) Original filing: https://www.sec.gov/Archives/edgar/data/1050100/000105010021000001/govdauditreportconf.pdf --- {0}------------------------------------------------ Financial Statements and Supplementary Information For the Year Ended December 31, 2020 (Confidential Pursuant to Rule 17a-5(e)(3)) {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL AUDITED REPORT FORM X--17A-5 PART Ill** | Estimated average burden | |-----------------------------| | hours per response 12.00 | | | | | | SEC FILE NUMBER | | | **FACING PAGE** **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 193~1 and Rule 17a-5 Thereunder** REPORT FOR THE PERIOD BEGINNINGO 1 /O1/2O AND ENDING **12/31/20** - - --------- MM/DD/YY **A. REGISTRANT IDENTIFICATION** NAME OF BROKER-DEALER: GOVDESK, LLC ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) 217 Via Buena Ventura (No and Street) Redondo Beach California (City) (State) MM/DD/YY OFFICIAL USE ONLY FIRM 1.0. NO. 90277 (Zip Code) NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT **B. ACCOUNT ANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contain ed in this Report\* LMHS, P.C. -- - --- - - - ---- ---------------------- --------- 80Washington St, Bldg S (Address) ( Name - 1} *indl\'idual. srare las/. firs/ . n11ddle name)* Norwell (Ci ty ) MA 02061 (State) (Zip Code) ### **CHECK ONE:** - - -- lll certified Public Accountant Public Accountant D 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 ofan independent public accountant must be supported by a s/alement o.ffacts and circumstances relied on as the basis for the exemption. See Section 240. I 7a-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.** SEC 1410 (11-05) (Area Code - Tel ephone Number) 8-50628 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 {2}------------------------------------------------ ### **OATH OR AFFIRMATION** # **1,** Lawrence Pereira , swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of GOVDESK, LLC ------- -------------- -------------------------, as of December 31 2020 , are true and correct. I further swear ( or affirm) that neither th e company nor any partner, proprietor, principal offic1er or director has any proprietary interest in any account classifi ed so lely as that of a customer, except as follows: Director Title Notary Public This report \*\* contains (check all applicable boxes): **0** (a) Fac in gPage. **[2]** (b) Statement of Financi al Condition . [Z] (c) Statement of Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement (d) (e) ( f) (g) (h) (i) 0 Ul of Comprehensive Income (as defi ned in §210.1-02 of Regulation S-X). Statement of Changes in Fin ancial Condition. Statement of Changes in Stockholders' Equity or Partn ers' or Sole Proprietors' Capital. Statement of Changes in Li abiliti es Subordinated to Claims of Creditors. Computation of Net Capita l. Computation for Determination of Re serve Requirements Pursuant to Rule I 5c3-3. In fo rmation Relatin g to the Possession or Control Requirements Under Rule 15c3-3. A Reconciliati on, including ap propriate explanation of the Computation ofNet Capital Under Rule I 5c3-I and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. 0 (k) A Reconciliation between th e audited and unaudited Statements of Financial Condition with respect to methods of co nso lidation. [2] (I) An Oath or Affirmation. **0** (111) A copy of the SIPC Supplemental Report. **0** (n) A report desc ribing any materi al inadequacies found to ex ist or found to have ex isted sin ce the date of the previou s audit. *\*\*For conditions of confidential treatmentof certain portions of thisfi./ing, see section 2-10. 17 a-5 (e)(J)* {3}------------------------------------------------ | A notary
public or
other officer
completing this
certificate
verifies
only the identity
of the
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who signed
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to which this
certificate
is attached,
and not the
truthfulness,
accuracy, or
validity of
that document. | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | State
of California
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Notary Public - California
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Los Angeles County
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My Comm. Expires Nov 18, 2022 | | (Seal) | | | {4}------------------------------------------------ ### **December 31, 2020** ### **Table of Contents** | Report of Independent Registered Public Accounting Finn | | |---------------------------------------------------------------------------------------------------------------------------|--------| | Statement of Financial Condition | 2 | | Statement of | 3 | | Statement of Changes in Members' Equity | 4 | | Statement of Cash Flows | 5 | | Notes to the Financial Statements | 6-9 | | Supplemental Information | | | Schedule I: | | | Computation of Net Capital Under Rule 15c3-l
of the Securities and Exchange Commission | | | Reconciliation with Company's Net Capital Computation | I 0-11 | | Schedule II: | | | Computation for Detennination of Reserve Requirements
Under Rule 15c3-3 of the Securities and Exchange Commission | | | Schedule III: | | | Infomrntion Relating to Possession or Control Requirements
Under Rule 15c3-3 of the Securities and Exchange Commission | 12 | | Review Report of Independent Registered Public Accounting Finn | 13 | | Management's Assertion Regarding Exemption With (k)(2)(ii) | 14 | {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) ### *Report of Independent Registered Public Accounting Firm* To the Members Govdesk, LLC Redondo Beach, California #### *Opi11io11* 011 *the Financial Statements* We have audited the accompanying statement of financial condition of Govdesk, LLC, as of December 3 1, 2020, and the related statements of earnings, changes in members' equity and cash flows for the year then ended, and the related notes (collectively referred to as the " fin ancial statements"). In our opinion, the fin ancial statements present fairly, in all material respects, the financial position of Govdesk, LLC as of December 3 1, 2020, and the results of its operations and its cash flows fo r the year then ended December 31, 2020, in confonnity with accounting principles generally accepted in the United States of Ame1ica. #### *Basis for Opinion* These financial statements are the responsibility of the entity's management. Our responsibility is to express an opinion on these fin ancial 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 Govdesk, LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Secmities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we pl an and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether clue to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the fin anc ial 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 fin ancial statements. Our aud it 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 supplemental information appearing on pages 10 tlU'o ugh 12 has been subjected to audit procedures performed in conjunc tion with the audit of Govclesk, LLC's fin ancial statements. The supplemental info rmation is the responsibility of Govdesk, LLC management. Our audit procedures included dete1111ining whether the supplemental information reconciles to the fin ancial 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 info rmation. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in confo rmity with C.F. R. §240. 17a-5. In our opinion, the supplemental information is fa irly stated, in all material respects, in relation to the fin ancial statements as a whole. *J,./1/IS, IC,* LMHS, P.C. We have served as the Company's auditor since 2020. Norwell, Massachusetts 2/1 5/202 1 ![](_page_5_Picture_12.jpeg) 80 Washington Street, Building S, Norwell, Massachusetts 02061 (781) 878-9111 FX (781) 878-3666 www.lmhspc.com \_ **Al CPA)«>** {6}------------------------------------------------ ### **Statement of Financial Condition** **December 31, 2020** | Assets | | |------------------------------------------------------------------|---------------| | Cash | \$
44,117 | | Due from clearing broker | 6,657 | | Deposit at Clearing Organization | 50,000 | | Due from affiliate | 9,470 | | Prepaid expenses and other assets | 12,206 | | Furniture and equipment, net of\$36,964 accumulated depreciation | 2,278 | | Total Assets | \$
124,728 | | | | | Liabilities and Members' Equity | | | Accounts payable | \$
4,116 | | Commissions payable | 28,794 | | Total Liabilities | 32,910 | | Members' Equity | 91,818 | | Total Liabilities and Members' Equity | \$
124,728 | {7}------------------------------------------------ ### **Statement of** Earnings ### **For the Year Ended December 31, 2020** | Revenue | | |----------------------------------|---------------| | Trading revenue | \$
420,067 | | Sub Lease Income | 10,440 | | Affiliation fees | 26,801 | | Other Income | 64 | | Total Revenue | 457,372 | | Expenses | | | Commission expense | 12,000 | | Professional fees | 287,472 | | Rent | 20,059 | | Quote fees | 28,227 | | Clearing costs | 33,431 | | Regulatory fees | 5,408 | | Depreciation | 984 | | Travel and Entertainment expense | 95 | | Other operating expenses | 12,426 | | Total Expenses | 400,102 | | Income (Loss) before taxes | \$
57,270 | | State and local taxes | 900 | | Net Income | \$
56,370 | {8}------------------------------------------------ # **Statement of Changes in Members' Equity** ### **For the Year Ended December 31, 2020** | January 01, 2020 | \$
35,448 | |-------------------|---------------| | Net Income | 56,370 | | December 31, 2020 | \$
91 ,818 | {9}------------------------------------------------ ### Statement of Cash Flows ### For the Year Ended December 31, 2020 | Cash Flows from Operating Activities | | |--------------------------------------------------------------------------------------|--------------| | Net Loss | \$
56,370 | | Adjustments to reconcile net income
to net cash provided by operating activities: | | | Depreciation | 984 | | Change in Assets and Liabilities: | | | (Increase) decrease in: | | | Decrease in Other receivables | 445 | | Increase in Due from affiliate | (470) | | Decrease in Due from clearing broker | 5,202 | | Increase in Prepaid expenses and other assets | (988) | | Increase (decrease) in: | | | Decrease in Accounts payable | (24,935) | | Decrease in Commissions payable | (16,801) | | Decrease in Trading Error payable | | | Decrease in Deferred rental income | (1,160) | | Net Cash provided in Operating Activities | 18,647 | | Cash flows from Investing Activities | | | Machinery & Equpment | (1,853) | | Net Cash provided by Investment Activities | (1,853) | | Net decrease in Cash during the year | 16,794 | | Cash at beginning of year | 27,323 | | Cash and Cash Equivalents at End of Year | \$
44,117 | | Cash Paid for Taxes | \$
900 | {10}------------------------------------------------ #### **1. Organization** Govdesk LLC (the "Company") was formed as a Limited Liability Company in California in September 1997, with a termination date of September 30, 2047. The Company registered as a broker-dealer with the Securities and Exchange Commission in August, 1998, and is a member of the Financial Industry Regulatory Authority. The Company engages in the brokerage of United States government securities, corporate bonds, and private placement of securities and related advisory services on a fee basis. #### **2. Significant Accounting Policies** #### **Cash and Cash Equivalents** The Company considers all demand deposits held in banks and certain highly liquid investments with original maturities of three months or less, other than those held for sale in the ordinary course of business, to be cash equivalents. #### **Accounts Receivable** The Company considers accounts receivable to be fully collectible, and accordingly, no allowance for doubtful accounts has been provided. Management reviews accounts receivable and sets up an allowance for doubtful accounts when collection of a receivable becomes unlikely. #### **Furniture and Equipment** Furniture and equipment purchases greater than \$500 are valued at cost. Depreciation is being provided by the use of the straight-line method over estimated useful lives ranging from five to seven years. Total cost of furniture and equipment was \$39,242. Accumulated depreciation was \$36,964 and current depreciation expense amounts to \$984. #### **Investment Banking Fees:** Investment banking revenues are earned from providing advisory services related to **the** private placement of securities. Revenue is recognized when earned either by fee contract or the success of a predetermined specified event and the income is reasonably determined. #### **Basis of Accounting:** The financial statements of the Company have been prepared on an accrual basis of accounting and accordingly reflect all significant receivables, payables, and other liabilities. #### **Revenue Recognition** The Company complies with ASC Topic 606 "Revenue from Contracts with Customers" with a date of January 1, 2019. As a result, it has changed its accounting policy for revenue recognition as detailed below. The Company applied Topic 606 using the cumulative effect method - i.e. by recognizing the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of equity at January **1,** 2019. This was immaterial. Therefore, any prior reporting information has not been adjusted and continues to be reported under Topic 606. Perfonnance Obligations - Revenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transfen'ing goods or services to customers. A good or service is transferred to a customer when, or as, the customer obtains control of the good or service. A perfonnance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the company determines the customer has obtained control over the promised good or service. The amount of revenue recognized reflects the consideration of which the Company expects to be entitled in exchange for the promised goods or services. The following provides detailed infonnation on the recognition of the Company's revenue from contracts with customers: {11}------------------------------------------------ #### **2. Significant Accounting Policies Continued** #### **Revenue Recognition** Trading revenue: Commissions are related to securities transactions and are recorded on a trade date basis. #### Commission Income: The Company buys and sells securities on an agency basis 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 have been transferred to/from the customer. #### **Use of Estimates** The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities 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 and may have an impact on future periods. #### **Fair Value of Financial Instruments** Unless otherwise indicated, the fair values of all reported assets and liabilities that represent financial instruments (none of which are held for trading purposes) approximate the carrying values of such amounts. #### **Income Taxes** The Company, a limited liability company, has elected to be taxed as a partnership under the Internal Revenue Code and a similar state statute. In lieu of income taxes, the Company passes 100% of its taxable income and expenses *to* its members. Therefore, no provision or liability for federal or state income taxes is included **in** these financial statements. However, the Company is subject to the annual California LLC tax of \$900 and a California LLC fee based on gross income. The Company is no longer subject to examinations by major tax jurisdictions for years before 2012. #### 3. Fair **Value** Measurements The Fair Value Measurements Topic of the FASB accounting standards codification establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level !measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: - Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date - Level2 Inputs other than quoted prices included within level I that are observable for the asset or liability, either directly or indirectly - Level 3 Unobservable inputs for the asset or liability {12}------------------------------------------------ #### **3. Fair Value Measurements Continued** #### **Determination of Fair Value** Under the Fair Value Measurements Topic of the F ASB Accounting Standards Codification, the Company bases its fair value on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between participants at the measurement date. It is the company's policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy. Fair value measurements for assets and liabilities where there exists limited or no observable market data, and therefore, are based primarily upon management's own estimates, are often calculated based on current pricing policy, the economic and competitive environment, the characteristics of the assets and liability and other such factors. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset or liability. Additionally, there may be inherent weaknesses in any calculation technique and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, that could significantly affect the results of current or future value. The Company had no financial instruments to measure for fair value as of December 31, 2020. #### **4. Net Capital Requirements** The Company is subject to the Securities and Exchange Commission Unifom1 net capital rule (Rule 15c3-l) 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 l At December 31, 2020, the Company had net capital of \$67,864 which was \$62,864 in excess of its required net capital of \$5,000. The Company's ratio of aggregate indebtedness to net capital was .48 to 1. #### 5. **Related** Parties Jeffery Matthews Financial is a broker-dealer and served as the Company's clearing broker where all customer transactions are cleared on a fully disclosed basis. At December 31, 2020 \$6,657 is due from Jeffery Matthews Financial. During 2020, clearance fees totaling \$33,431 was paid to Jeffery Matthews Financial. During 2020, the Company paid \$266,513 to King Harbor Wealth Management ("KHWM") for consulting services. KHWM is an entity which is wholly owned by Management of Govdesk, LLC. #### **6. Lease Obligation** The Company's lease agreement for office space in Redondo Beach, California expired on October 31, 2020 and was not renewed. The Company currently operates out of Managements' home office. Rent Expense for the year ended December 31, 2020 was \$20,059. #### **7. Financial Instruments with Off-Balance-Sheet Credit Risk** As a securities broker, the Company executes transactions with and on the behalf of customers. The Company introduces these transactions for clearance to a clearing fim1 on a fully disclosed basis. In the normal course of business, the Company's customer activities involve the execution of securities transactions and settlement by its clearing broker. The agreement between the Company and its clearing broker provides that the Company is obligated to assume any exposure related to nonperformance by its customers. These activities may expose the Company to off-balance-sheet risk in the event the customer is unable to fulfill its contracted obligations. In the event the customer fails to satisfy its obligations, the Company may be required to purchase or sell financial instmments at the prevailing market price in order to fulfill the customer's obligation. The Company seeks to control off-the-balance-sheet credit risk by monitoring its customer transaction and reviewing information it receives from its clearing broker on a daily basis and reserving for doubtful accounts when necessary. {13}------------------------------------------------ #### **8. Recent Accounting Pronouncements** ASC 606, Revenue from Contracts with Customers, was issued on May 28, 2014. ASC 606 provides guidance related to revenue from contracts with customers. Guidance applies to all entities and to all contracts with customers, with the exception of the following transactions noted in ASC 606- I 0: lease contracts, insurance contracts, financial instruments and other contractual rights or obligations, guarantees, nonmonetary exchanges between entities in the same line of business. For public business entities, certain not-for-profit entities, and certain employee plans, the effective date for ASC 606 is annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early application is permitted only as of annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. The effective date for all other entities is annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2018. In Febrnary 2016, the F ASB issued ASU No. 2016-02, "Lease (Topic 842)" which supersedes previous leasing guidance in Topic 840. Under the new guidance, lessees are required to recognize lease-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition **in** the income statement. The F ASB has since issued additional related ASU amendments to clarify and improve certain aspects of the guidance. And implementation of Topic 842. The Company's lease obligation is less than 12 months. #### IO. **Subsequent Events** The Company has evaluated subsequent events through February 15, 2021, the date which the financial statements were available to be issued. Based upon the review, the Company had detennined that there are no events which took place that would have a material impact on the financial statements, which would require disclosure. {14}------------------------------------------------ *SUPPLEMENTAL INFORMATION* {15}------------------------------------------------ # **Schedule I Govdesk LLC** # **Computation of Net Capital Under Rule 15c3-l of the Securities and Exchange Commission As of December 31, 2020** | NET CAPITAL | | | |------------------------------------------------------------|--------|--------------| | Total partners' equity | | \$
91,818 | | Deduct member's equity not allowable for net capital | | | | Total member's equity qualified for net capital | | 91,818 | | Deductions: | | | | Nonallowable assets | | | | Due from affiliate | 9,470 | | | Prepaid expenses | 12,206 | | | Furniture and Equipment, net | 2,278 | | | | | 23,954 | | Net capital before haircuts on securities positions | | 67,864 | | Haircuts on securities | 0 | 0 | | NET CAPITAL | | \$
67,864 | | AGGREGATE INDEBTEDNESS | | | | Other payable and accrued expenses, and others | 32,910 | | | | | 32,910 | | Total aggregate indebtedness | | \$
32,910 | | COMPUTATION OF BASIC NET CAPITAL REQUIREMENT | | | | Minimum net capital required: | | 2,194 | | Minimum dollar required: | | \$
5,000 | | Excess net capital | | \$
62,864 | | Net capital less greater of I 0% of aggregate indebtedness | | | | or 120% of minimum dollar amount | | \$
64,573 | | Ratio: Aggregate indebtedness to net capital | | .48 to I | {16}------------------------------------------------ ### **Schedule** I **(Continued)** ### **Govdesk LLC** # **Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission As of December 31, 2020** | Net capital per above | \$ | 67,864 | |------------------------------------------------------------|----|--------| | Adjustments: | | | | FOCUS report | \$ | 67,864 | | Net capital, as reported in Company's Part IIA (unaudited) | | | {17}------------------------------------------------ # **GOVDESK, LLC December** 3 I, **2020** # **Schedule** II **Determination of Reserve Requirements Under Rule 15c3-3 of the Securities and Exchange Commission** The Company is exempt from the Reserve Requirement of computation according to the provision of Rule l 5c3-3(k)(2)(ii) # **Schedule** III **Information Relating to Possession or Control Requirements Under Rule 15c3-3** The Company is exempt from the Rule 15c3-3 as it relates to Possession and Control requirements under the (k)(2)(ii) exemptive provision. *l* *The accompanying notes are an integral part of these financial statements* {18}------------------------------------------------ ![](_page_18_Picture_0.jpeg) ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** Lawrence Pereira, CCO Govdesk, LLC We have reviewed management's statements, included in the accompanying Govdesk, LLC Exemption Report in which (1) Govdesk, LLC, identified the following provisions of **l** 7 C.F.R. § l5c3-3(k) under which Govdesk, LLC claimed an exemption from l 7 C.F.R. §240. I 5c3-3: (k)(2)(ii) (the "exemption provision") and (2) Company, stated that Govdesk, LLC met the identified exemption provision throughout the most recent fiscal year of 2020, without exception. Govdesk, LLC management is responsible for compliance with the exemption provision 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 the Company's compliance with the exemption provision. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(ii) of Rule l5c3-3 under the Securities Exchange Act of 1934. LMHS P.C We have served as the Company's auditor since 2020. Norwell , Massachusetts February 15, 2021 ![](_page_18_Picture_8.jpeg) 80 Washington Street, Building S, Norwell, Massachusetts 02061 (781) 878-9111 FX (781) 878-3666 www.lmhspc.com **A IC PA) "'** {19}------------------------------------------------ LMHS P.C 80 Washington Street, Building S, Norwell, Massachusetts 02061 February 15, 2021 # **Assertions Regarding E,xemption Provisions** We, as principals of Govdesk, LLC ("the company"), are responsible for compliance with the annual reporting requirements under Rule I 7a-5 of the Securities Exchange Act of I 934. Those requirements compel a broker or dealer to file annual repo11s with Securities Exchange Commission (SEC) and the broker or dealer·s designated examining authority (DEA). One of the reports to be included in the annual filing is an exemption report prepared by an independent public accountant based upon a rev iew of asse11ions provided by the broker or dealer. Pursuant to that requirement, principals of the Company hereby make the following asse11ions: # **Identified Exemption Provision:** The Company claims exemption from the custody and reserve provisions of Rule I 5c3-3 by operating under the exemption provided by Rule l 5c3-3, (k)(2)(ii). ## **Statement Regarding Meeting Exemption Provision:** The Company met the identified exemption provision without exception throughout the most recent fiscal year starting January I, 2020 through December 31 , 2020. Govdesk, LLC £ \_,\_\_\_ . - Lawrence Pereira Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.