# VERITAS INDEPENDENT PARTNERS, LLC X-17A-5 (2019-03-01) — Broker-dealer annual report - Company: VERITAS INDEPENDENT PARTNERS, LLC - Form: X-17A-5 - Filed: 2019-03-01 - Period: 2018-12-31 - Accession: 0001588116-19-000001 - CIK: 1588116 - File #: 8-69363 - Material weakness: No - Auditor: AJSH and Co. LLP - Auditor location: Rohini, New Delhi, K7 - Contact: Debra Shannon - Phone: 501-358-6131 - Signed by: Debra Shannon (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1588116/000158811619000001/Veritas2018Audit1.pdf --- {0}------------------------------------------------ ITED T SECURITIES AND EXCHANGECOMMISSIO Washington D. . 20549 OMS APPROVAL OMS Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours per response ...... 12.00 # **ANNUAL AUDITED REPORT FORM X-17A-5** PART III | SEC RLE NUMBER | |----------------| | 8-69363 | FACING PAGE Information Required of Brokers and Dealers Pursuant to ection 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | | /01
/2018 | | | | |-----------------------------------------------------------------------------------------------|---------------------------------------------------------|------------------------------------------------|-------------------|---------------------------------| | REPORT FOR THE PERIOD BEGINNING 01 | | AND ENDING 12/3112018
--------------------- | | | | | | TIFICATIO | | | | ME OF BROKER-DE LER: Veritas Independent Partners LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRI CIPAL PLACE OF BUSINESS: (Do not use P.O. Box | | 0.) | FIRM 1.0. NO. | | | 2201 Washington Ave, Suite 2 | | | | | | | | | | | | Conway | Arkansas | | 72032 | | | ( il)') | ( I3t.:) | | (Zip Code) | | | UMBER OF PERSO
AME A D TELEPHO E
Debra Shannon
501·358-6131 | | TO CO TACT IN REGARD TO THIS REPORT | | (Area ode - Telephone
umber) | | | B. ACCO
TANT IDE TIFICATIO | | | | | [ DEPENDE T P BUC ACCOUNT ANT whose opinion is contained ill this Report·
AJSH and Co. LLP | ame - if individual. state last. PI'S,. middle /lallle) | | | | | C7/227, Sector 7 | Rohini | | New Delhi | 11008 | | (Addrc ) | ( ily | | (Sta le) | (Zip ode) | | HE KON :
D
Certified Public Accountant
D
public
ccoulllanl | | | | | | | | | | | | [Z]Accollntant not resident in Uniled Stales or any of its possessions. | | | | | \* *laims lor exemptioll from the requirement thal the allnualreporl be COl ered by the opinion oj al7 il1dependenl public aCCOlllllal1t* mllst *be supported by a latement oj/acts and circumstances relied* 011 *as the basis Jor the exemption. See Section 240.1 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 OMB control number. {1}------------------------------------------------ #### OATH OR AFFIRMATION | I, Debra Shannon
• swear (or affirm) thar, to the best of | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the fum of
__ ~ ______
____
Veritas __Independent
Partners ____________
____________________________________________________ , as
LLC | | | of December 31
, 20_1_8 __ ---', are true and correct. I further swear (or affirm) that | | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account
classified solely as that of a customer, except as follows: | | | GAIL MURDOCH | | | M'f COMMISSION 11 12373716
EXPIRES: November 4, 2019
Pope County | | | Managing Member | | | Title
NOiary Public | | | This report ** contains (check all applicable boxes):
o
(a) Facing Page .
./ (b) Statement of Financial Condition .
.f (c) Statement of Income (Loss).
(d) Statement of Changes in Financial Condition .
./ (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors .
(g) Computation of Net Capital.
./'
(h) Computation for Determination of Reserve Requirements Pursuant to Rule ISc3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule ISc3-3 .
./ (j) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 1 Sc3-1 and the
Computation for Determination of the Reserve Requirements Under Exhibit A of Rule ISc3-3.
o
(k) A Reconciliation between the audited and unaudited Statements of Financial Condition with respect to methods of
consolidation.
(I) 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 oCthe previous audit. | | | **For conditions 0/ confidential/reatment 0/ certain portions o/this filing. see section 240. J 7Q-5(~)(J). | | {2}------------------------------------------------ # VERITA J #### 17a-S(d) ### YEAR E ED DECEMBER 31, 2018 {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) #### Report of the Independent Registered Public Accounting Firm To the Members of Veritas Independent Partners, LlC #### Opinion on the Financial Statements We have audited the accompanying statement of financial condition of Veritas independent Partners, LLC (the "Company") as of December 31, 2018 and 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 the Company as of December 31, 2018, 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 the Company's management. Our responsibility is to express an opinion on the Company'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 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 provide a reasonable basis for our opinion . #### Supplementary Information The supplementary information contained in Schedule I - Computation of Net Capital pursuant to Uniform Net Capital Rule 15c3-1 of Securities and Exchange Commission has been subjected to audit procedures performed in conjunction with the audit of Company's financial statements. The supplemental information is the responsibility of the Company'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. ![](_page_3_Picture_11.jpeg) ![](_page_3_Picture_12.jpeg) {4}------------------------------------------------ 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 CFR § 240.17a-S. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole. **AJSH & Co llP** We have served as the Company's Auditor since 2018. New Delhi, India March 01, 2019 {5}------------------------------------------------ ### STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31,2018 ### ASSETS | Total assets | 72,600
\$ | |-----------------------------------------|--------------| | Undeposited funds | 489 | | Prepaid premiums | 1 143 | | Central registration depository account | 90 | | Accounts receivable -
personnel | 675 | | Commissions receivable | 56 164 | | Ca h | \$
14,039 | ### LIABILITIES AND MEMBER'S EQUITY #### LIABILITIES: | Tota/liabilities arul member's equity | \$
72,600 | |-----------------------------------------------------------------|-------------------------| | MEMBER'S EQUITY (Note 2) | 34,199 | | COMMITMENTS AND CO TINGENCIES (Note 3 and 5) | | | Total liabilities | 38,401 | | Accounts payable and accrued expenses
Related party payables | \$
22,665
] S 736 | | | | The accompanying note are an integral part of till tatement. {6}------------------------------------------------ #### STATEMENT OF INCOME #### FOR THE YEAR ENDED DECEMBER 31,2018 | REVE UES: | | |-----------------------|--------------| | Commissions | 954781
\$ | | Insurance income | 19,049 | | Reimbursed expenses | 34,362 | | Other income | 4,431 | | Total revenues | I 012623 | | EXPE SES: | | | Commission | 801, I 15 | | Professional services | 28,723 | | Pers nne I | 80,661 | | General operating | ,705
51 | | Insurance | 21533 | | Regulatory | 19,902 | | Marketing | 3,447 | | Other | 1,246 | | Total expenses | I 008,332 | | NET INCOME | 4,291
\$ | The accompanying Dote are an integral part of till statement. {7}------------------------------------------------ ### STATEMENT OF CASH FLOWS # FOR THE YEAR ENDED DECEMBER 31,2018 | CASH FLOWS FROM (IO) OPERATING ACTIVITIES: | | |------------------------------------------------------------------------------------------|--------------| | Net income | \$
4291 | | Adj
ustments to reconcile net income to net cash provided by
operating activities: | | | (Increase) Decrease in accounts recejvable -
personnel | (225) | | (fncrease) Decrease in central registration depository account | (77) | | (Increase) Decrease in prepaid premiums | (1 143) | | (Jncrea e) Decrea e in comm"
ions receivable | (13
42) | | (Increase) Decrease in undepositedfunds | (489) | | Increase (Decrease) in accounts payable and accrued expenses | (2851) | | Increase (Decrease) in related party payables | 4,134 | | NET DECREASE IN CASH | (9702) | | CASH, at beginning of year | 23741 | | CASH, at end of year | \$
14,039 | The accompanying note are an integral part of till statement. {8}------------------------------------------------ # STATEMENT OF CHANGES IN MEMBER'S EQUITY # FOR THE YEAR ENDED DECEMBER 31, 2018 | BALAN CES, December 31 2018 | \$
34,199 | |-----------------------------|--------------| | Net income | 4291 | | BALANCES, December 31 2017 | \$
29908 | The accompanying notes are an integral part of this statement. {9}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS # December 31, 2018 # NOTE 1- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ### Organization and Business Veritas Independent Partners, LLC (the "Company") is an Arkansas limited liability company formed on September 9, 2013. The Company is affiliated with Cardinal Investment Group ("Cardinal"), a registered branch office of the Company and Tartan Properties through common ownership. The Company is registered with the Securities and Exchange Commission (SEC), and licensed by the Financial Industry Regulatory Authority, Inc. (FINRA). The Company operates as a securities broker-dealer for mutual funds, variable annuities and investment advisory services. The Company carries no customer funds or securities and therefore is exempt from the reserve and possession or control requirements under Rule 15c3-3(k)(2)(i) of the Securities Exchange Act of 1934. # Revenue Recognition The Company's main source of revenue is mutual funds, variable annuities and investment advisory services. This revenue and the related commission expense are recognized on an accrual basis. ### Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers with a maturity of three months or less to be cash equivalents. # Income Taxes The Company is not a taxable entity and thus the financial statements do not include a provision for income taxes. The Company's members are taxed on their respective share of the Company's earnings. The Company is required to determine whether a tax position is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any tax related appeals or litigation processes, based on the technical merits of the position. The Company files an income tax return in the U.S. federal jurisdiction, and may file income tax returns in various U.S. states. The Company is not subject to income tax return examinations by major taxing authorities for years before 2014. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that reduces net assets. However, the Company's conclusions regarding this policy may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof. The Company recognizes interest accrued related to unrecognized tax benefits and penalties related unrecognized tax benefits in income taxes payable, if assessed. No interest expense or penalties have been recognized as of and for the year ended December 31, 2018. {10}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS (continued) ### NOTE 1- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont'd) ### Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used. # NOTE 2 - NET CAPITAL REQUIREMENTS Pursuant to the net capital provisions of Rule 15c3-1 of the Securities Exchange Act of 1934, the Company is required to maintain a minimum net capital, as defined under such provisions. At December 31, 2018, the Company had net capital and net capital requirements of \$3,000, respectively. The Company's net capital ratio (aggregate indebtedness to net capital) was 1.21 to 1. According to Rule 15c3-1, the Company's net capital ratio shall not exceed 15 to 1. # NOTE 3-OPERATING LEASE The Company had a non-cancelable operating lease for subleased office space with Cardinal which was due to expire August 31, 2018. The lease agreement was ended mutually 2 months before the lease term expration. In May 2018, the Company entered into a new lease agreement with Tartan Properties which will expire May 1, 2021. In addition, the future minimum lease payments for the years ending December 31, 2019 through 2021 are as follows: | 2019 | 9.120 | |------|-------| | 2020 | 9.120 | | 2021 | 3.040 | Rental expense was \$8,126 for the year ended December 31, 2018. # NOTE 4-RELATED PARTY TRANSACTIONS The Company is affiliated with Cardinal Investment Group ("Cardinal"), a registered branch office of the Company and Tartan Properties through common ownership. The Company has an expense sharing agreement ("ESA") with Cardinal. Under the agreement, the Company pays an allocation of Cardinal's utilities. The Company had entered into a separate agreement to sublease office space from Cardinal that expired August 31, 2018 (see Note 3). The Company entered into a new lease agreement with Tartan Properties which will expire May 1, 2021 (see Note 3). {11}------------------------------------------------ # NOTES TO FINANCIAL STATEMBATS (continued) # NOTE 4-RELATED PARTY TRANSACTIONS (cont'd) At December 31, 2018 there were related party payables of \$15,736 that are commissions due to the members of the Firm. The Firm has recorded \$65,000 as payroll expense and \$205,503 as commission expense paid to members for 2018. # NOTE 5-FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISK AND CONTINGENCIES The Company's financial instruments, including cash and cash equivalents, accounts receivable and other assets and accounts payable are carried at amounts that approximate fair value due to the short-term nature of those instruments. # NOTE 6-SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events through the date the financial statements were issued. The evaluation did not result in any subsequent events that required disclosures and or adjustments. {12}------------------------------------------------ # SUPPLEMENTARY INFORMATION {13}------------------------------------------------ ### SCHEDULE I #### VERITAS INDEPENDENT PARTNERS, LLC # COMPUTATION OF NET CAPITAL UNDER RULE 1Sc3-J OF THE SECURITIES EXCHANGE ACT OF 1934 #### DECEMBER 31, 2018 | CREDIT: | | |------------------------------------------------------------|--------------| | Total stockhoklers' equity | 34,199
\$ | | | | | DEBITS: | | | N onallowable assets: | | | Accounts receivable -
personnel | 675 | | Central registration depository account | 90 | | Prepaid premiums | 1,]43 | | ndepo ited fund | 489 | | Total debits | 2,397 | | NET CAPITAL | 31,802 | | Minirmon requirerrent of6-2/3% ofaggregale indebtedness of | | | \$38401 or \$5,000 whichever is greater | 5,000 | | Excess net capital | 26,802
\$ | | | | | AGGREGATE INDEBTED ESS: | | | Accounts payable and accrued expenses | 38,401
\$ | | RATIO OF AGGREGATE INDEBTED
ESS TO
ET CAPITAL | 1.21 to 1 | NOTE: There are no material differences between the above computation of net capital and the corresponding computation as submitted by the Company with the unaudited Fonn X-17 A-5 as of December 31 2018. {14}------------------------------------------------ ![](_page_14_Picture_0.jpeg) #### Report of Independent Registered Public Accounting Firm #### To the Members of Veritas Independent Partners, LLC We have reviewed management's statements, included in the accompanying Veritas Independent Partners, lLC's Exemption Report, in which (1) Veritas Independent Partners, LLC identified the following provisions of 17 C.F.R. §15c3-3(k) under which the Company claimed an exemption from 17 C.F.R. §240.1Sc3-3: (k)(2)(i) (the "exemption provisions") and (2) the Company stated that they met the identified exemption provisions throughout the most recent fiscal year without exception. The Company'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 the Company'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)(2)(i)of Rule 15c3-3 under the Securities Exchange Act of 1934. AJSH & Co LlP New Delhi, India March 01, 2019 ![](_page_14_Picture_10.jpeg) ![](_page_14_Picture_11.jpeg) {15}------------------------------------------------ # EXEMPTION REPORT REQumEMENTFORBROKEruDEALERSUNDER RULE 178-5 OF THE SECURITIES EXCHANGE ACT OF 1934 #### DECEMBER 31,2018 To the best knowledge and belief ofVeritas Independent Partners, LLC: The Company claimed the (k)(2)(i) exemption provision from Rule 15c3-3 of the Securities Exchange Act of 1934. The Company met the (k)(2)(i) exemption provision from Rule 15c3-3, without exception, throughout the most recent fiscal year ending December 31, 2018. Managing Member Title \_ ' h. ,.\_ ' . Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.