# PARK MADISON PARTNERS LLC X-17A-5 (2022-02-28) — Broker-dealer annual report - Company: PARK MADISON PARTNERS LLC - Form: X-17A-5 - Filed: 2022-02-28 - Period: 2021-12-31 - Accession: 0001513552-22-000002 - CIK: 1355263 - File #: 8-67270 - Type: Broker-dealer - Material weakness: No - Auditor: SPICER JEFFRIES LLP - Auditor location: DENVER, CO - Contact: Gennaro J. Fulvio - Phone: 2124903113 - Website: spicerjeffries.com - Signed by: NANCY I. LASHINE (MANAGING PARTNER) Original filing: https://www.sec.gov/Archives/edgar/data/1355263/000151355222000002/pmppub.pdf --- {0}------------------------------------------------ Park Madison Partners, LLC (A Limited Liability Company) Statement of Financial Condition December 31 , 2021 The report is filed in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934 as a **PUBLIC DOCUMENT** {1}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION** Washington, D.C. **20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated **average** burden hours per response: 12 ## **ANNUAL REPORTS FORM X-17A-5 PART** Ill | | SEC FILE NUMBER | | |--|-----------------|--| | | | | 8-67270 **FACING PAGE** Information Required Pursuant to Rules 17a-5, 17a-12, and lSa-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING \_0.....,1.....,/0...\_1.L&./\_2\_.\_1 \_\_\_\_ AND ENDING \_...&.1.-2 ... 13 ..... 1 ..... /2..\_.1,\_\_\_ \_\_ \_ MM/00/YY MM/00/YY **A. REGISTRANT IDENTIFICATION** # NAME OF FIRM: --=-P-=-A.:..:...R.:..:...K-=-=-M..:..:.:A:....:.D=-=-==IS:;..;::O::...:.. N~PA~RT~N~ER:....:.S=.i.....::, L=L~C~------- - -- TYPE OF REGISTRANT (check all applicable boxes): C8 Broker-dealer □ Security-based swap dealer D Check here if respondent is also an OTC derivatives dealer □ Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | 200 HARBOR ROAD | | | | |------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------------------------------------|-----------------------------------------------| | | (No. and Street) | | | | PORT WASHINGTON | NY | | 11050 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | GENNARO J FULVIO
(Name) | (212) 490-3113
(Area Code - Telephone Number) | jfulvi0@fulvi0llp com
(Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
SPICER JEFFRIES LLP | (Name - if individual, state last, first, and middle name) | | | | | DENVER | co | 80237 | | 4601 OTC BOULEVARD, SUITE# 700
(Address) | (City) | (State) | (Zip Code) | | 1 Q/?Q/?003 | | 349 | | | I rt• of Registration with PCAOB)(if applicable) | FOR OFFICIAL USE ONL y | | I
(PCAOB Registration Number, Wapplicable) | | | | | | | * Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public | | | | accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable. **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.** {2}------------------------------------------------ #### OATH **OR AFFIRMATION** | NANCY I. LASHINE
I, | | , swear (or affirm) that, to the best of my knowledge and belief, the | |--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------| | financial report pertaining to the firm of | | PARK MADISON PARTNERS, LLC
, as of | | DECEMBER 31 | | 2 021 • is true and correct. I further swear (or affirm) that neither the company nor any | | | | partner, officer, director, or equivalent person, as the case may be,. has any proprietary i terest in any account classified solely | | as that of a customer.
~"r6'H· f | TONYA M. PARKER
Notary Public-State of New York
~~- 0~P~6012927
Qu~llf.red m Kings County
Comm1ss1on Expires 01/06/2023
4A | Signa
Title:
ANAGING PARTNER | Notary Public #### **This filing\*\* contains (check all applicable boxes):** - [29 (a) Statement of financial condition. - !XI (b) Notes to consolida.ted 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).** - □ (d) Statement of cash flows. - □ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ (f) Statement of changes in liabilities subordinated to claims of creditors. - □ (g) Notes to consolidated financial statements. - □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.lSa-l, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.lSa-2. - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.lSa-4, as applicable. - □ (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.lSa-4, as applicable. - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.lSa-1, or 17 CFR 240.lSa-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.lSa-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - [la (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - □ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - CE (t) Independent public accountant's report based on an examination of the statement of financial condition. - □ (u) Independent public accountant's report based .on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.lSa-7, or 17 CFR 240.l 7a-12, as applicable. - □ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - □ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - D (x) Supplemental reports on ap.plying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - □ (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). D(z) Other: \_\_\_ \_\_\_ \_\_\_\_\_\_\_\_\_\_ \_\_\_\_ \_\_\_\_\_\_ \_\_\_ \_\_\_\_\_\_\_ \_ - \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable. {3}------------------------------------------------ ## PARK MADISON PARTNERS, LLC TABLE OF CONTENTS DECEMBER 31, 2021 | | Page | |---------------------------------------------------------|------| | REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 | | STATEMENT OF FINANCIAL CONDITION | 2 | | NOTES TO FINANCIAL STATEMENTS | 3-7 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Certified Public Accountants 4601 OTC BOULEVARD• SUITE 700 DENVER, COLORADO 80237 TELEPHONE: (303) 753-1959 FAX: (303) 753-0338 www.spicerjeffries.com #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Members of Park Madison Partners LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Park Madison Partners LLC (the "Company") as of December 31, 2021 and the related notes to the statement of financial condition. In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company'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 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. We have served as the Company's auditor since 2016. Denver, Colorado February 24, 2022 ![](_page_4_Picture_13.jpeg) {5}------------------------------------------------ ## PARK MADISON PARTNERS, LLC STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2020 ## ASSETS | Cash and cash equivalents | \$
7,110,254 | |-----------------------------------------------------------------------------------------------|------------------| | Placement fees and related receivables
Equipment and furniture & fixtures, at cost, net of | 29,862,654 | | accumulated depreciation of\$ 39,171 | 17,549 | | Security deposit | 310,000 | | Right of use assets | 949,522 | | Prepaid expenses and other assets | 87,022 | | TOTAL ASSETS | \$
38,337,001 | ## LIABILITIES AND MEMBERS' EQUITY | Liabilities | | |----------------------------------------|------------------| | Accounts payable and accrued expenses | \$
526,368 | | Lease liability | 1,014,214 | | TOTAL LIABILITIES | 1,540,582 | | Commitments and contingencies (Note 5) | | | MEMBERS' EQUITY | 36,796,419 | | TOTAL LIABILITIES AND MEMBERS' EQUITY | \$
38,337,001 | See notes to statement of financial condition {6}------------------------------------------------ #### PARK MADISON PARTNERS, LLC NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2021 #### 1. ORGANIZATION AND NATURE OF BUSINESS Park Madison Partners, LLC (the "Company") was formed on January 20, 2006 and is a broker-dealer registered with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"). The Company provides placement agent services primarily to domestic and international real estate investment funds. #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES #### Revenue Recognition The Company recognizes revenue on its management and advisory contracts on a pro-rata basis over the term of the contract, which approximates when services are performed, in compliance with the newly effective revenue recognition rules. Revenues for retainers received in connection with placement engagements will be recognized as services are performed, in compliance with the recently effective revenue recognition rules. The Company believes services are performed approximately in line with when retainers are received, similar to management and advisory contracts. Therefore, retainers will be recognized pro-rata over the life of the retainer agreement. Revenue for success fees earned for placement services is recognized upon either the closing of the associated funds, or a written commitment from the investor, as applicable, calculated in either case as a percentage of the capital commitment made by an investor. However, If the Company is still obligated to provide any services post close, revenue will be recognized per the recently effective revenue recognition rules. In some cases, based on the contract, the receipt of some portion of a success fee may be paid subsequent to the date the success fee is earned. In certain cases, interest accrues at the contracted stated rate for any period in which a placement fee receivable is outstanding. The accrued interest is included in the amount reflected as placement fees receivable. In any event, revenue earned in this case will be recognized per the recently effective revenue recognition rules. No interest has been charged on success fee staged payments during 2021. {7}------------------------------------------------ ## 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) ## Concentrations Two clients accounted for approximately 77% of investment advisory and private placement revenue for the current year. The Company maintains cash with financial institutions. Funds deposited with a single bank are insured up to \$250,000 in the aggregate by the Federal Deposit Insurance Corporation ("FDIC"). At times, cash balances may be in excess of balances insured by FDIC. The Company considers all highly liquid instruments purchased with a maturity date of three months or less when purchased to be cash equivalents. At year end amounts over the insurance limit were approximately \$2.72 million. ## Equipment, Furniture and Fixtures Depreciation and amortization are provided on the straight-line method over the estimated useful lives. ## Cash and Cash Equivalents The Company considers all money market accounts and liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. #### Fair Value Measurements Fair value measurements are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy prioritizes observable and unobservable inputs used to measure fair value into three levels, as described in Note 3. {8}------------------------------------------------ #### Income Taxes The Company is treated as a disregarded entity for federal and state income tax purposes and, therefore, does not record a provision for income taxes, except as noted following. Accordingly, the members report their share of the Company's income or loss on their income tax returns. The company elected to participate in the NYS Pass Through Entity Tax ("PTET"), which was enacted in 2021. The Company's income or loss is reportable by its members on their individual tax returns. Income taxes are determined on an asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company follows the standards for establishing and classifying any tax provisions for uncertain tax positions and recognizing any interest and penalties. The Company's policy is to recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense. The Company is no longer subject to federal or state and local income tax examinations by tax authorities for years before 2018. #### Use of Estimates 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 certain reported amounts and disclosures. Actual results could differ from these estimates. #### Policy on Doubtful Accounts The Company records an allowance for bad debts on receivables the Company deems uncollectible. Placement fees receivable are recognized and carried at net realizable value less an allowance for doubtful accounts. It is the policy of management of the company to review the outstanding accounts receivable as well as the bad debt write-offs and collections experienced in the past, economic factors, specific customer information, and {9}------------------------------------------------ current credit considerations to establish an allowance for doubtful accounts for potentially uncollectible amounts. Accounts are written off when they are determined to be uncollectible based upon management's assessment of individual accounts. ## 3. PLACEMENT FEES RECEIVABLE Based on the terms of various contracts and the estimated collections, the projected receivables as of year-end to be collected over the next three years are as follows: | 2022 | \$
18,409,991 | |------|----------------------------------| | 2023 | 9,584,663 | | 2024 | 1,868,000 | | | \$
____
2_9.:,8_62:,~65_4_ | | | | #### 4. COMMITMENTS On July 07, 2021, the Company entered into an operating lease agreement to lease office space in New York City, which expires August 12, 2024. Future minimum rent payments on this lease are as follows: | | Year Ended December 31 | |------|------------------------| | 2022 | 409,045 | | 2023 | 409,045 | | 2024 | 251,805 | | | \$
1,069,895 | The Company also currently operates out of an office owned by an officer of the Company. Rent on this office is \$2,000 per month. The Company has no lease on this rented office. The Company also rented temporary office until its NYC lease commenced. Total rent and occupancy expense amounted to \$223,329 for the current year. The discount rate used in the calculation of the Right of use asset and Lease Liability on the statement of financial condition is 4% per annum. {10}------------------------------------------------ ## 5. EQUIPMENT, FURNITURE AND FIXTURES | | | Estimated
Useful Life | |------------------------------------|------------------|--------------------------| | Equipment | \$
45,207 | 5 years | | Furniture and fixtures
Subtotal | 11,513
56,720 | 7 years | | Less accumulated
depreciation | 39,171 | | | | \$
17,549 | | ## 6. NET CAPITAL AND RESERVE REQUIREMENTS The Company is subject to the Uniform Net Capital Rule under the Securities Exchange Act of 1934 (the "Rule"). The Rule 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 1. At December 31, 2021, the Company's net capital was \$6,706,694, which exceeded required net capital of \$39,404 by \$6,667,290. The ratio of aggregate indebtedness to net capital was 0.0881 to 1. Under the exemptive provisions of rule 15c3-3, the Company is required to segregate funds in a special reserve account for the exclusive benefit of customers. ## 7. SUBSEQUENT EVENTS Management of the Company has evaluated, events and transactions that may have occurred since December 31, 2021 up until the date of the audit opinion and determined that there are no material events that would require disclosures in the Company's financial statements. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.