# REHMANN FINANCIAL NETWORK, LLC X-17A-5 (2024-02-29) — Broker-dealer annual report - Company: REHMANN FINANCIAL NETWORK, LLC - Form: X-17A-5 - Filed: 2024-02-29 - Period: 2023-12-31 - Accession: 0001554729-24-000002 - CIK: 1554729 - File #: 8-69134 - Type: Broker-dealer - Material weakness: No - Auditor: Warren Averett, LLC - Auditor location: Atlanta, GA - Contact: Nicole Spitzley - Phone: 517-316-2438 - Email: nicole.spitzley@rehmann.com - Website: rehmann.com - Signed by: Nicole Spitzley (Chief Compliance Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1554729/000155472924000002/02292024RFNFinaldoc.pdf --- {0}------------------------------------------------ | SEC FILE NUMBER | |-----------------| | 8-69134 | | FILING FOR THE PERIOD BEGINNING 01/01/2023 | | | AND ENDING 12/31/2023 | | |-------------------------------------------------------------------|------------------------------|--|-----------------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF FIRM: Rehmann Financial Network, LLC | | | | | | TYPE OF REGISTRANT (check all applicable boxes):
Broker-dealer | | | [ Major security-based swap participant | | | | (No. and Street) | | |----------------------------------------------|---------------------------------------------------------------------------|-----------------------------| | Lansing | MI | 48911 | | {City} | (State) | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | Nicole Spitzley | 517-316-2438 | nicole.spitzley@rehmann.com | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | Warren Averett LLC | | | | | | | | 6 Concourse Parkway, Suite 600 Atlanta | | GA | 30328 | |--------------------------------------------------|-----------------------|--------------------------------------------|------------| | (Address) | (City) | (State) | (Zip Code) | | 05/17/2005 | | 2226 | | | (Date of Registration with PCAOB)(if applicable) | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | | | | | {1}------------------------------------------------ | Nicole Spitzley | swear (or affirm) that, to the best of my knowledge and belief, the | | | |-------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-------|--| | tinancial report pertaining to the firm of Rehmann Financial Network, LLC | | as of | | | 2129 | 2 024 | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | | | as that of a customer. | | | | | | | | | ![](_page_1_Picture_2.jpeg) - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ # Rehmann Financial Network, LLC Year Ended December 31, 2023 Financial Statements and Supplemental Information ![](_page_2_Picture_3.jpeg) {3}------------------------------------------------ | TABLE OF CONTENTS | | PAGE | |----------------------------------------------------------|----------------------------------------------------------------------|------| | | | | | Report of Independent Registered Public Accounting Firm | | 1 | | Financial Statement for the Year Ended December 31, 2023 | | | | Statement of Financial Condition | | 2 | | Statement of Income | | 3 | | Statement of Changes in Member's Equity | | 4 | | Statement of Cash Flows | | 5 | | Notes to Financial Statements | | 6 | | 1RWHVWR)LQDQFLDO6WDWHPHQWV&RQWLQXHG | | | | Supplemental Information | | | | Exchange Act of 1934 (Schedule I) | Computation of Net Capital Pursuant to Rule 15c3-1 of the Securities | | | Other Information (Schedule II) | | | | Exemption Report SEA Rule 17a-5(d)(4) | | | | Report of Independent Registered Public Accounting Firm | | | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member Rehmann Financial Network, LLC #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Rehmann Financial Network, LLC as of December 31, 2023, the related statements of income, changes in member's equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Rehmann Financial Network, LLC as of December 31, 2023, and the results of its operations and its cash flows for the year 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 Rehmann Financial Network, LLC's management. Our responsibility is to express an opinion on Rehmann Financial Network, LLC's financial 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 Rehmann Financial Network, 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 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. #### **Auditor's Report on Supplemental Information** The supplementary information contained in Schedule I, Computation of Net Capital under Rule 15c3-1 and Schedule II, Other Information have been subjected to audit procedures performed in conjunction with the audit of Rehmann Financial Network, LLC's financial statements. The supplemental information is the responsibility of Rehmann Financial Network, LLC's management. Our audit procedures included determining whether the supplemental information reconciles 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 supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as Rehmann Financial Network, LLC's auditor since 2014. Atlanta, Georgia February 28, 2024 {5}------------------------------------------------ ### **Statement of Financial Condition** December 31, 2023 | Assets | | |---------------------------------------|-----------------| | &DVK&KDVH | \$
1,170,350 | | 3UHSDLG([SHQVHV | 24,245 | | Total Assets | \$
1,194,595 | | Liabilities and Member's Equity | | | Liabilities | | | \$FFRXQWV3D\DEOH | \$
6,658 | | \$FFRXQWV3D\DEOH5HODWHG3DUW\ | 8,333 | | Total Liabilities | 14,991 | | Member's Equity | | | 3DLGLQ&DSLWDO5HKPDQQ)LQDQFLDO1HWZRUN | 107,140 | | 0HPEHU
V(TXLW\ | 1,072,464 | | Total Member's Equity | 1,179,604 | | Total Liabilities and Member's Equity | \$
1,194,595 | {6}------------------------------------------------ #### **Statement of Income** 476,178 | | Total Net Fees | 476,178 | | Salaries | | | 3D\UROO([SHQVH | 52,284 | | 3D\UROO([SHQVH\$GYLVRUV | 95,221 | | 3D\UROO7D[HV | 2,472 | | Total Salaries | 149,977 | | Personnel | | | N ([SHQVH | 960 | | *URXS,QVXUDQFH%HQHILWV | 2,556 | | 3URIHVVLRQDO'XHV | 384 | | 3URIHVVLRQDO(GXFDWLRQ | 708 | | (PSOR\HH5HODWLRQV | 528 | | Total Personnel | 5,136 | | Facilities | | | 5HQW | 4,872 | | 2YHUKHDG\$OORFDWLRQ | 4,248 | | Total Facilities | 9,120 | | Computer Facilities | | | &RPSXWHU/LFHQVHV | 55,072 | | Total Computer Facilities | 55,072 | | Other Operating Expenses | | | ,QVXUDQFH | 3,662 | | 6XEVFULSWLRQ3XEOLFDWLRQ6HUYLFH | 3,909 | | /LFHQVH)HHV | 30,336 | | 2IILFH6XSSOLHVDQG([SHQVHV | 240 | | 7HOHSKRQH | 396 | | 3URIHVVLRQDO6HUYLFHV | 47,067 | | \$XWRDQG7UDYHO([SHQVH | 2,508 | | Total Other Operating Expenses | 88,118 | | Total Expenses | 307,423 | | Net Income | \$
168,755 | {7}------------------------------------------------ **Statement of Changes in Member's Equity** 1,010,849 | |---------------------------------------------|-----------------| | &RQWULEXWLRQV
'LVWULEXWLRQV
1HW,QFRPH |

168,755 | | Balance at December 31, 2023 | \$
1,179,604 | {8}------------------------------------------------ #### **Statement of Cash Flows** 168,755 | | \$GMXVWPHQWVWR5HFRQFLOH1HWLQFRPHWR1HW&DVK3URYLGHGE\2SHUDWLQJ\$FWLYLWLHV | | | &KDQJHVLQ2SHUDWLQJ\$VVHWVDQG/LDELOLWLHV:KLFK3URYLGHG8VHG &DVK | | | \$FFRXQWV5HFHLYDEOH | | | 3UHSDLG([HSHQVHV | (762) | | \$FFRXQWV3D\DEOH | (2,271) | | \$FFRXQWV3D\DEOH5HODWHG3DUW\ | 835 | | Net Cash Provided by Operating Activities | 166,557 | | Net Increase in Cash | 166,557 | | &DVK%HJLQQLQJRI1,170,350 | {9}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS** #### **1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** General Organization and Business: Rehmann Financial Network, LLC (the "Company") was incorporated in Michigan on July 9, 2012. The Company is a registered broker-dealer under the Securities Exchange Act of 1934. The Company is a wholly-owned subsidiary of Rehmann Financial Group, ("RFG") a Michigan LLC. The Company started operations on April 16, 2014. The Company engages in the sale of Mutual Funds and Variable Annuities via "subscription way"/"application way" basis (aka "check and ap"). Mutual funds and variable annuities will be processed via thirdparty applications and checks or wires made out to the third-party fund company via a "subscription way basis". The Company does not hold customer funds or safekeep customer securities. The firm does not have a clearing agreement. Basis of Accounting: The Company prepares its financial statements on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Revenue Recognition: Commission revenue is predominantly income received from other third party broker dealers and insurance carriers that is recognized when the terms of the sale of products and services to customers are substantially complete and collectability of the income is probable and determinable. Income Taxes: The Company's income or loss is reported on the member's tax return. Accordingly, the financial statements do not include a provision for income taxes. Management does not believe there are any uncertain tax positions as defined by Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740 *Accounting for Income Taxes*. The Company could be subject to income tax examinations for its U.S. Federal and state tax filings for tax years 2020 to 2022, which are still open under the statute of limitations. Use of 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash: As of December 31, 2023, the Company did not hold any cash equivalents. The Company maintains balances with banks in excess of federally insured limits. Management believes the exposure to loss from such balances to be minimal. As of December 31, 2023, the Company's uninsured cash balance was approximately \$920,350. Fair Value of Financial Instruments: The Company estimates that the fair value of any financial instruments recognized on the statement of financial condition approximates their carrying value, as such financial instruments are short term in nature. Other assets and liabilities with short and intermediate-term maturities and defined settlement amounts, including receivables, payables and accrued expenses are reported at their contractual amounts, with approximate fair value. Subsequent Events: The Company has evaluated events and transactions that occurred between December 31, 2023 and February \_\_\_28\_\_\_, 2024 which is the date the financial statements were issued, for possible recognition or disclosure in the financial statements and no matters were required to be recognized or disclosed in the financial statements. {10}------------------------------------------------ ### **NOTES TO FINANCIAL STATEMENTS** #### **2. NET CAPITAL REQUIREMENT** The Company, as a registered broker-dealer in securities, is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1). The Company has elected to operate under that portion of the Rule which requires that the Company maintain "net capital" equal to the greater of \$5,000 or 6 2 /3% of "aggregate indebtedness," as those terms are defined in the Rule. Schedule I is included in the Supplemental Information of this report. Net capital and aggregate indebtedness changes from day-to-day, but as of December 31, 2023, the Company had net capital of \$1,140,359 which exceeded the minimum net capital requirement on that day of \$5,000 by \$1,135,359. The Company's ratio of aggregate indebtedness to net capital was 0.01 to 1. #### **3. RELATED PARTY TRANSACTIONS** The Company is a member of a group of affiliated companies and has material transactions and relationships with members of the group. Due to these relationships, it is possible that the terms of these transactions are not the same as those that would result among unrelated parties. #### *(a) Transactions with Rehmann Financial Group* RFG pays substantially all the accounts payable and payroll on behalf of the Company and RFG is reimbursed on a routine basis. RFG also provides general overhead services to the Company, such as (but not limited to) the cost of processing centralized accounts payable and payroll, as well as accounting and financial planning services which are charged by RFG. At December 31, 2023, the net amount of cash owed by the Company to RFG was \$8,333 and is included in accounts payable – related party on the statement of financial condition. #### **4. DEFINED CONTRIBUTION PLAN** Defined Contribution Plan: The Rehmann, LLC 401(k) Plan covers substantially all employees of the Company. Rehmann matches 30% of each participant's contributions not in excess of 10% of their compensation for each pay period. {11}------------------------------------------------ ## **Computation of Net Capital per Rule 15c3-1 (Schedule I)** December 31, 2023 | Computation of Net Capital | | |----------------------------------------------------------------------------|-----------------| | 7RWDOPHPEHU·VHTXLW\ | \$
1,179,604 | | 'HGXFWQRQDOORZDEOHDVVHWV | (24,245) | | 2WKHUGHGXFWLRQV | (15,000) | | Net capital | \$
1,140,359 | | Computation of Aggregate Indebtedness | | | 7RWDODJJUHJDWHLQGHEWHGQHVV | \$
14,991 | | Computation of Minimum Net Capital Requirement
Net capital | \$
1,140,359 | | 0LQLPXPQHWFDSLWDOWREHPDLQWDLQHG
JUHDWHURIRURIWRWDODJJUHJDWHLQGHEWHGQHVV | 5,000 | | 1HWFDSLWDOLQH[FHVVRIUHTXLUHPHQW | \$
1,135,359 | | 3HUFHQWDJHRIDJJUHJDWHLQGHEWHGQHVVWRQHWFDSLWDO | 1.31% | #### **Statement Pursuant to Paragraph (d)(4) of Rule 17a-5** There are no material differences between this computation of net capital and the corresponding computation prepared by Rehmann Financial Network, LLC for inclusion in the Company's unaudited Part IIA FOCUS Report (Form X-17A-5) as of December 31, 2023, as filed on January 16, 2024. See accompanying report of independent registered public accounting firm. {12}------------------------------------------------ ## **Other Information - (Schedule II)** December 31, 2023 #### **A) COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2023** The Company is claiming an exemption under k(1) pursuant to Rule 15c3-3 as the company does not take possession or control of accounts for customers. #### **B) INFORMATION RELATING TO THE POSSESSION OR CONTROL REQUIREMENTS UNDER RULE 15c3-3 OF THE SECURITIES AND EXCHANGE COMMISSION AS OF DECEMBER 31, 2023** The Company is is claiming an exemption under k(1) pursuant to Rule 15c3-3 as its conducts only a limited business in mutual funds and/or variable annuities. As such, the Company does not take possession or control of accounts for customers #### **C) STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDITORS AS OF DECEMBER 31, 2023** 7KH VWDWHPHQW RI FKDQJHV LQ OLDELOLWLHV VXERUGLQDWHG WR FODLPV RI JHQHUDO FUHGLWRUV KDV EHHQ RPLWWHG VLQFH 5HKPDQQ )LQDQFLDO 1HWZRUN //& KDG QR VXFK OLDELOLWLHV RXWVWDQGLQJ at WKH EHJLQQLQJ RI WKH \HDUGXULQJWKH\HDURUDW\HDUHQG {13}------------------------------------------------ ![](_page_13_Picture_0.jpeg) February 2, 202 Warren Averett Six Concourse Parkway Suite 600 Atlanta, GA 30338N ### **Rehmann Financial Network, LLC.'s Exemption Report** Rehmann Financial Network, LLC (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-5(d)(1) and (4)**.** To the best of its knowledge and belief, the Corporation states the following: - Pursuant to SEC Rule 15c3-3(k)(1), the Company is claiming an exemption from SEA Rule 15c-3-3 throughout the period from January 1, 202 through December 31, 202, without exception. - The Company adhered to the net capital requirement pursuant to SEC Rule 15c3-1(1)(2)(vi) and did not receive or hold customers' funds or securities and did not carry customers' accounts. The above statement is true and correct to the best of my and the Company's knowledge. Name: Nicole Spitzley Title: Chief Compliance Officer Securities offered through Rehmann Financial Network, LLC, member FINRA/SIPC. Investment advisory services offered through Rehmann Financial, a Registered Investment Advisor. Rehmann is an independent member of Nexia International. Nexia is not affiliated with Rehmann Financial Network, LLC, or Rehmann Financial. Rehmann is an independent member of Nexia International. ![](_page_13_Picture_11.jpeg) {14}------------------------------------------------ ![](_page_14_Picture_0.jpeg) #### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Member Rehmann Financial Network, LLC We have reviewed management's statements, included in the accompanying Rule 15c3-3 Exemption Report pursuant to paragraph (k)(1) of SEA Rule 15c3-3, in which (1) Rehmann Financial Network, LLC (the Company) identified the following provision of 17 C.F.R. §15c3-3(k) under which Rehmann Financial Network, LLC claimed the following exemption from 17 C.F.R. §240.15c3-3: (k)(1) and (2) Rehmann Financial Network, LLC stated that Rehmann Financial Network, LLC met the identified exemption provision throughout the most recent fiscal year without exception. Rehmann Financial Network, LLC's management is responsible for compliance with the exemption provisions 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 Rehmann Financial Network, LLC's compliance with the exemption provisions. 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)(1) of Rule 15c3-3 under the Securities Exchange Act of 1934. Atlanta, Georgia February 28, 2024 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.