# BAKER TILLY CAPITAL, LLC X-17A-5 (2021-08-30) — Broker-dealer annual report - Company: BAKER TILLY CAPITAL, LLC - Form: X-17A-5 - Filed: 2021-08-30 - Period: 2021-05-31 - Accession: 0001146080-21-000003 - CIK: 1146080 - File #: 8-53480 - Material weakness: No - Auditor: Marcum, LLP - Auditor location: Deerfield, IL - Contact: Michael Fitzpatrick - Phone: 608-240-2609 - Signed by: Michael Fitzpatrick (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1146080/000114608021000003/btcfincond.pdf --- {0}------------------------------------------------ Madison, Wisconsin ## Statement of Financial Condition As of May 31, 2021 Filed Pursuant to Rule 17a-5(d) Under the Securities Exchange Act of 1934 {1}------------------------------------------------ UNITEDSTATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 August 31, 2020 Expires: Estimated average burden hours per response .. . . . . . . 12.00 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III | SEC FILE NUMBER | | | | |-----------------|--|--|--| | 8-53480 | | | | ## 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 BEGINNING | 05/31/21
06/01/20
AND ENDING | | | | |------------------------------------------------------------------------------------------------|--------------------------------------------------------|----------------|--------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT DENTIBICATION | | | | | NAME OF BROKER-DEALER: BAKER TILLY CAPITAL, LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM L.D. NO. | | | 4807 INNOVATE LANE | | | | | | | (No. and Street) | | | | | MADISON | WI | | 53718 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
MICHAEL FITZPATRICK | | (608.240.2609) | | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | MARCUM LLP | | | | | | | (Name - if individual, state last, first, middle name) | | | | | NINE PARKWAY NORTH, STE 200 | DEERFIELD | - | 60015 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | Certified Public Accountant | | | | | | Public Accountant | | | | | | | | | | | | 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 240.17a-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 OMB control number. {2}------------------------------------------------ ## OATH OR AFFIRMATION I , MICHAEL FITZPATRICK , L , L , L , Swear (or affirm) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of as and the many and the many , as BAKER TILLY CAPITAL, LLC a more the may be a more and correct. If further swear (or affirm) that of MAY 31 neither the company nor any partner, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: | NONE | | | | | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--| | Signature
CHIEF FINANCIAL OFFICE
Title
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Notary Public Exp. 3.22
This report ** contains (check all applicable boxes):
(a) Facing Page.
(b) Statement of Financial Condition.
PUBLIC
(c) Statement of Income (Loss).
(d) Statement of Changes in Financial Condition.
Gr Marse
(e) Statement of Changes in Stockholders' Equity or Partifier
offietors' Capital.
(f) Statement of Changes in Liabilities Subordinated to Claims of Carons.
(g) Computation of Net Capital.
(h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3.
(i) 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 15c3-3. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (k) A Reconciliation between the audited 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 240.17a-5(e)(3). {3}------------------------------------------------ ## TABLE OF CONTENTS | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-------| | Financial Statements | | | Statement of Financial Condition | 2 | | Notes to Statement of Financial Condition | 3 - 4 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **5(32572),1'(3(1'(175(\*,67(5('38%/,&\$&&2817,1\*),50** 7RWKH0HPEHU RI%DNHU7LOO\&DSLWDO//& # **2SLQLRQRQWKH)LQDQFLDO6WDWHPHQW** :HKDYHDXGLWHGWKHDFFRPSDQ\LQJVWDWHPHQWRIILQDQFLDOFRQGLWLRQRI%DNHU7LOO\&DSLWDO//& WKH³&RPSDQ\´ DVRI0D\ DQGWKHUHODWHGQRWHV FROOHFWLYHO\UHIHUUHGWR DV WKHILQDQFLDO VWDWHPHQW ,Q RXU RSLQLRQ WKH VWDWHPHQW RI ILQDQFLDO FRQGLWLRQ SUHVHQWV IDLUO\ LQ DOO PDWHULDO UHVSHFWVWKHILQDQFLDOSRVLWLRQRIWKH&RPSDQ\ DVRI0D\ LQFRQIRUPLW\ZLWKDFFRXQWLQJ SULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI\$PHULFD ## **%DVLVIRU2SLQLRQ** 7KLVILQDQFLDOVWDWHPHQWLVWKHUHVSRQVLELOLW\RIWKH&RPSDQ\¶VPDQDJHPHQW 2XUUHVSRQVLELOLW\LV WRH[SUHVVDQRSLQLRQRQ WKH&RPSDQ\¶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¶VDXGLWRUVLQFH 'HHUILHOG,/ \$XJXVW ![](_page_4_Picture_12.jpeg) {5}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION As of May 31, 2021 #### ASSETS | CURRENI ASSETS
Cash
Accounts receivable, net of an allowance of \$69,714
Prepaid expenses
Total Current Assets | ക്ക
1,684,907
1,892,098
36.870
3,613,875 | |----------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------| | TOTAL ASSETS | မခ
3.613.875 | | LIABILITIES AND MEMBER'S EQUITY | | | LIABILITIES
Due to related party
Total Liabilities | ಕ್ಕಾ
868.716
868,716 | | MEMBER'S EQUITY | 2.745.159 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | ക
3.613.875 | See notes to statement of financial condition. {6}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION As of May 31, 2021 #### NOTE 1 - Organization and Nature of Business Baker Tilly Capital, LLC (the "Company") is a broker-dealer registered with the Securities and Exchange Commission (the "SEC") and the Financial Industry Regulatory Authority ("FINRA") as a "limited purpose broker-dealer," electing not to carry customer monies or securities. The Company's primary sources of revenue are fees from investment banking activities, including mergers and acquisitions, structuring and advising on various project finance deals. Revenues are also realized from activities related to New Market Tax Credit ("NMTC") transactions including assisting Community Development Entities with the application process for obtaining allocations of NMTCs, assisting entities with funding Qualified Low Income Community Investments and assisting Qualified Active Low-Income Community Businesses with obtaining funding through a NMTC transaction. The Company is a Wisconsin limited liability company that is a wholly-owned subsidiary of Baker Tilly US, LLP ("Baker Tilly"). The Company was formed on August 21, 2001 and operates with a May 31 fiscal year end. #### NOTE 2 - Significant Accounting Policies #### Cash The Company maintains its cash balances primarily in established institutions. Cash balances are insured up to \$250,000 per bank by the FDIC. Uninsured balances were approximately \$1,450,000 at May 31, 2021. Management believes that the Company is not exposed to any significant credit risk on cash. #### Accounts Receivable At year-end, management reviews the balance of accounts receivable currently outstanding and determines an estimate of amounts that are potentially uncollectible. As of May 31, 2021, \$69,714 was established for receivables considered potentially uncollectible. Generally, interest is not accrued on delinquent accounts. #### Income Taxes The Company elected to be taxed as a partnership effective August 21, 2001. The net income or loss of the Company is allocated to Baker Tilly (the sole member) and is included on its partnership tax return. Therefore no provision for income taxes is included in the accompanying financial statements. The Company evaluates tax positions taken within its returns for any uncertainty on an annual basis. Uncertain tax positions can result in the recognition of additional liability, including any applicable fines and penalties, or additional disclosure. As of May 31, 2021, there were no uncertain tax positions identified by the Company requiring recognition of a liability or disclosure. #### 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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. {7}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION As of May 31, 2021 ## NOTE 3 - Related-Party Transactions The Company has an Expense Sharing Agreement with Baker Tilly under which Baker Tilly pays for certain expenses on behalf of the Company. Such expenses are allocated by Baker Tilly to the Company according to an expense allocation schedule. Substantially all expenses are paid for through the expense sharing agreement. At May 31, 2021, the Company had \$868,716 due to Baker Tilly. The majority of amounts due to Baker Tilly result from labor costs and expenses owed to Baker Tilly. #### NOTE 4 - Net Capital Requirements The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital. The Company's minimum net capital requirement is the greater of \$5,000 or 6 2/3% of aggregate indebtedness (or, that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1). Rule 15c3-1 also provides that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. At May 31, 2021, the Company had net capital of \$816,191 which was \$758,277 in excess of its required net capital of \$57,914. At May 31, 2021, the Company's net capital ratio was 1.06 to 1.00. #### NOTE 5 - Indemnification In the normal course of business, the Company enters into contracts that contain a variety of representations and warranties that provide indemnifications under certain circumstances. The Company's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. #### NOTE 6 - Concentration of Receivables Three customers accounted for approximately 53 percent of the accounts receivable balance as of May 31, 2021. #### NOTE 7 - Subsequent Events The Company has evaluated subsequent events occurring through August 30, 2021, the date of issuance, for events requiring recording or disclosure in the Company's financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.