# COLCHESTER PARTNERS LLC X-17A-5 (2020-02-24) — Broker-dealer annual report - Company: COLCHESTER PARTNERS LLC - Form: X-17A-5 - Filed: 2020-02-24 - Period: 2019-12-31 - Accession: 0001178449-20-000001 - CIK: 1178449 - File #: 8-65464 - Material weakness: No - Auditor: Yoshida & Sokolski, P.C. - Auditor location: Woburn, MA - Contact: Eric Andrew - Phone: 617-896-0202 - Signed by: Eric Andrew (Director / FINOP) Original filing: https://www.sec.gov/Archives/edgar/data/1178449/000117844920000001/cp2019sofc2.pdf --- {0}------------------------------------------------ ### PUBLIC **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** | 0MB APPROVAL | | | | | |--------------------------|---------------------------|--|--|--| | 0MB Number: | 3235-0123 | | | | | Expires: | August 31, 2020 | | | | | Estimated average burden | | | | | | | hours per response 12.00 | | | | | SEC FILE NUMBER | |-----------------| | 8-65464 | **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 01/01/2019 | ----------- | AND E 'DING 12/31/2019 | | | |----------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|------------------------|----------------------------------------------------|--| | | MM/ DD/ Y Y | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Colchester Partners, LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | | 175 Federal Street | | | | | | Boston | (No. and Street)
MA | 02110 | | | | (City) | (State} | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Eric Andrew | | | (617 )-896-0202
(Area Code - Telephone Nllmber} | | | | B. ACCOUNTANT IDENTIFICATION | | | | | 11 DEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*
Yoshida & Sokolski, P.C. | (Name - 1/ 111d11'1dual. s1a1e las,. firs 1. middle name) | | | | | 400 Unicorn Park, 4th Floor | Woburn | MA | 01801 | | | (Address) | | (State) | (Zip Code) | | | CHECK ONE:
certified Public Accountant
Publ ic 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/acts and circumstances relied on as the basis/or 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. {1}------------------------------------------------ #### **OATH OR AFFIRMATIO** | | I, Eric Andrew | | , swear (or affirm) that, to the best of | |------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------| | | Colchester Partners, LLC | my knowledge and bel ief the accompanying financial statement and supporting schedules pertaining to the firm of
---------------------------------------------- | , as | | | of December 31 | 20 19
are true and correct. I further swear (or affirm) that | | | | neither the company nor any partner, proprietor, principal offi
classified solely as that of a customer, except as follows: | cer or director has any proprietary interest in any account | | | | | Signature | | | | | l
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Ti | | | | otary Public | | | | | This report contains (check all applicable boxes):
0 (a) Facing Page.
✓ (b) Statement of Financial Condition.
(c) Statement of Income (Loss).
(d) Statement of Changes in Financial Condition. | | | | | (e) Statement of Changes in Stockholders' Eq
( f) Statement of Changes in Liabilities Subordinated to Claims of Cred
(g) Computation of Net Capital. | uity or Partners' or Sole Proprietors' Capital.
itors. | | | | | (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. | | | 0 U) | | (i) In formation Relating to the Possession or Control Requ irements Under Rule I ScJ-3.
A Reconciliation, incl uding appropriate expl anation of the Computation of Net Capital Under Rule I 5c3- | I and the | | | | Computation for Determi nation of the Reserve Requirements Under Exhibit A of Rule I ScJ-3. | | | | consolidation. | 0 (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of | | | | 0 (I) An Oath or Affirmation. | | | | 0 ( | 111 ) A copy of the SIPC Supplemental Report.
0 (n) A report describing any material inadequacies fo | und to exist or found to have ex isted since the date of the previous audit. | | *\*\*For condilions of confldemial 1rea1ment of certain portions of1his .filing, see section 2-10. / 7a-5(e)(3).* {2}------------------------------------------------ ST A TEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 {3}------------------------------------------------ # **TABLE OF CONTENTS** # **DECEMBER 31, 2019** | REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM | 1 | |------------------------------------------------------------|---------| | FINANCIAL STATEMENT | | | tement of Financial Condition
Sta | 2 | | Notes to Financial Statement | -6
3 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Colchester Partners, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Colchester Partners, LLC as of December 31 , 2019 and the related notes (collectively referred to as the "financial statement"). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Colchester Partners, LLC as of December 31 , 2019, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of Colchester Partners, LLC's management. Our responsibility is to express an opinion on Colchester Partners, LLC's financial statement 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 Colchester Partners, LLC 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 statement is 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 statement. 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. We have served as Colchester Partners, LLC's auditor since 2009. Woburn, Massachusetts February 20, 2020 {5}------------------------------------------------ # COLCHESTER PARTNERS, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2019 | | 2019 | |----------------------------------------------|---------------| | ASSETS | | | CURRENT ASSETS | | | Cash | \$ 1,252,780 | | Accounts receivable | 192,737 | | TOT AL CURRENT ASSETS | 1,445,517 | | | | | EQUIPMENT & IMPROVEMENTS, net of accumulated | | | deprecia
tion of \$127,972 for 2019 | 20,883 | | | | | OTHER ASSETS | | | Prepaid expenses | 57,761 | | ted parties
vances to rela
Ad | 3,200 | | Investments | 72 | | Right of Use Assets | 104,737 | | TOTAL OTHER ASSETS | 165,770 | | | | | TOTAL ASSETS | \$ 1,632,170 | | | | | LIABILITIES AND MEMBERS' EQUITY | | | CURRENT LIABILITIES | | | ts payable and accrued expenses
Accoun | \$
186,371 | | Lease Liability | 104,737 | | TOTAL CURRENT LIABILITIES | 291,108 | | | | **TOTAL LIABILITIES AND MEMBERS' EQUITY** \$ 1,632,170 **MEMBERS' EQUITY** *The accompanying notes are an integral part of this financial statement.* 2 1,341,062 {6}------------------------------------------------ # **NOTES TO FINANCIAL STATEMENTS** # **DECEMBER 31, 2019** #### *NOTEl NATURE OF BUSINESS* Colchester Partners, LLC (the "Company") is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of Financial Industry Regulatmy Authority ("FINRA"). The Company is an investment banking and strategic advisory firm organized to serve the needs of investment management organizations and their professionals throughout the United States of America. #### *NOTE2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES* # Use of Estimates The preparation of financial statements and related disclosures 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, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the period reported. Actual results could differ from those estimates. # **Revenue Recognition** The Company recognizes revenue in accordance with ASC 606, contracts with customers. Advisory fees are earned pursuant to a written engagement on a clientby-client basis. Advisory fees may include either fixed retainers, contingent based fees, or a combination of botl1. Contingent fees can either be based on a fixed dollar amount, or may be calculated on a predetermined formula. Contingent based revenues are recognized when the obligation to the customer is satisfied, and in an amount that reflects the consideration the Company expects to be entitled to in exchange for the services. # **Cash and Cash Equivalents** The Company considers all liquid investment instruments with original maturities of ninety days or less to be cash equivalents. Cash equivalents are carried at cost, which approximates market value. # **Concentrations of Credit Risk** Financial insh·uments which potentially subject the Company to significant concentrations of credit risk consist primarily of cash and trade accounts receivables. {7}------------------------------------------------ ### NOTES TO **FINANCIAL** STATEMENTS (CONTINUED) ### **DECEMBER 31, 2019** #### **NOTE2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** ### **Concentrations of Credit Risk (Continued)** The Company maintains its cash in an international commercial bank with a high credit rating. The balances are insured by the Federal Deposit Insurance Corporation ("FDIC") up to \$250,000. At times during the year ended December 31, 2019, balances in deposit accounts exceeded FDIC insured limits, including a balance of \$1,252,780 at year end. The Company monitors its exposure and has not experienced any losses in such accounts. Concentration of credit risk related to trade accounts receivable is limited due to a client base of companies and individuals with high net worth. The Company performs credit evaluations of its clients' financial condition and does not require collateral, since management does not anticipate nonperformance of payment. #### **Fair Value** All current assets and current liabilities, because of their short-term nature, are stated at cost or face value, which approximates market value. #### **Equipment and Improvements** Equipment and improvements are stated at cost. Depreciation and amortization are computed principally using the straight-line method over the estimated economic or useful lives of the applicable assets. Leasehold improvements are amortized *over* the lesser of the remaining life of the lease or the useful life of the improvements. The cost of maintenance and repairs is charged to expense as incurred. #### **NOTE3 CHANGES IN ACCOUNTING POLICIES** On January 1, 2019, the Company adopted ASU 2016-02, "Leases (Topic 842)" (" ASU 2016-02"), which affects any entity that enters into a lease (as that term is defined in ASU 2016-20), with some specified scope exceptions. The main difference between the guidance in ASU 2016-20 and current GAAP is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under GAAP. Under ASU 2016-02, the Company is required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach, which includes numbers of optional practical expedients. The Company has adopted the practical expedient to keep leases with an initial term of 12 months or less off the balance sheet. All other agreements followed the retrospective approach for 2019. {8}------------------------------------------------ ## NOTES TO FINANCIAL ST A TEMENTS (CONTINUED) ### DECEMBER 31, 2019 #### *NOTE4 INVESTMENTS* The investment is in a minority interest of a Limited Liability Company valued at cost. #### *NOTES ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS* The Company's accounts receivable are client obligations due under normal h"ade terms carried at their face value, less provisions for bad debts. The Company evaluates the carrying amount of its accounts receivable on an ongoing basis and establishes a valuation allowance based on a number of factors, including specific client circumstances, historical rate of write-offs and the past due status of the accounts. At the end of each reporting period, the allowance is reviewed and analyzed for adequacy, and if relevant, is adjusted accordingly. The allowance is increased through a reduction of revenues and/ or an increase in bad debt expense. At December 31, 2019, management believes no allowance is necessary. #### *NOTE6 EQUIPMENT AND IMPROVEMENTS* Major classes of equipment and improvements consist of the following: | | Dec. 31, 2019 | | |-------------------------------|---------------|--------| | Computer equipment | \$ | 99,642 | | Office equipment | | 19,730 | | Furniture and fixtures | | 29,483 | | | 148,855 | | | Less accumulated depreciation | (127,972) | | | | \$ | 20,883 | #### *NOTE7 COMMITMENTS AND CONTINGENCIES* The Company may from time to time become involved in various legal proceedings, litigation and threatened litigation arising in the ordinary course of business. As of the date of these financial statements, there are no legal proceedings or similar matters, which individually or in the aggregate have a material effect on net capital, the financial position, results of operations or cash flows of the company. {9}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS (CONTINUED)** ## **DECEMBER 31, 2019** #### *NOTES SUBSEQUENT EVENTS* Management has evaluated subsequent events through February 20, 2020, the date which the financial statements were available to be issued. No events occurred subsequent to the balance sheet date that would require adjustment to or disclosure in the financial statement. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.