# VERITAS INDEPENDENT PARTNERS, LLC X-17A-5 (2021-03-31) — Broker-dealer annual report - Company: VERITAS INDEPENDENT PARTNERS, LLC - Form: X-17A-5 - Filed: 2021-03-31 - Period: 2020-12-31 - Accession: 0001588116-21-000002 - CIK: 1588116 - File #: 8-69363 - Material weakness: No - Auditor: AJSH and Co. LLP - Auditor location: Rohini, K7 - Contact: Debra Shannon - Phone: 5013586131 - Signed by: Debra Shannon (Managing Member) Original filing: https://www.sec.gov/Archives/edgar/data/1588116/000158811621000002/Veritas2020AnnualAudit2.pdf --- {0}------------------------------------------------ UNITEDSTATES SECURITIES ANDEXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Estimated average burden hours per response.. . . . . . . 12.00 # ANNUAL AUDITED REPORT FORM X-17A-5 PART III | SEC FILE NUMBER | |-----------------| | 8-69363 | FACING PAGE Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder | | AND ENDING 12/31/2020
REPORT FOR THE PERIOD BEGINNING 01/01/2020 | | | | |----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|-----------|--------------------------------|--| | | MM/DD/YY | | MM/DD/YY | | | | A. REGISTRANT IDENTIFICATION | | | | | NAME OF BROKER-DEALER: Veritas Independent Partners LLC | | | OFFICIAL USE ONLY | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | FIRM I.D. NO. | | | 2201 Washington Ave, Suite 2 | | | | | | | (No. and Street) | | | | | Conway | Arkansas | | 72032 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Debra Shannon
501-358-6131 | | | | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | AJSH and Co. LLP | | | | | | | (Name - if individual, state last, first, middle name) | | | | | C7/227, Sector 7 | Rohini | New Delhi | 11008 | | | (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(c)(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 | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
Veritas Independent Partners LLC
of December 31
are true and correct. If further swear (or affirm) that
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:
GAIL MURDOCH
Signature
MY COMMISSION # 12373716
EXPIRES: November 23, 2029
Managing Member
Pope County
Title
Notary Public
This report ** contains (check all applicable boxes):
(a) Facing Page.
(b) 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 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 15c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3.
(i) A Reconciliation, including appropriate explanation 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. | Debra Shannon | swear (or a swear (or affirm) that, to the best of | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|----------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (m) A copy of the SIPC Supplemental Report.
(n) A report describing any material inadequacies 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). | (1) An Oath or Affirmation. | | | | | | {2}------------------------------------------------ # REPORTS PURSUANT TO RULES 17a-5(d) # YEAR ENDED DECEMBER 31, 2020 {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 Opinion on the rinthe accompanying statement of financial condition of Veritas Independent Partners, we have and the of December 31, 2020 and the related statements of opera we have audited the accompanying statement of financial condition of orchitections, changes in LLC (the "Company") as of December 31, 2020 and the related notes (collection) we frace united of December 31, 2020 and the related statements of open were de referred to member's equity and cash flows for the year the related notes (collective), in all EES (the "State" (n station the year then ended, and the reace (to the end on the material member's equity and cash flow opinion, the financial statements present for the re mentier statis and the more opinion, the financial statements present family in the fresults of its as the "financial position of the Company as of December 31, 2020 as the "Thinklar other of the Company as of December 31, 2020, and the one of the States of States respects, the financial position of the year then ended, in conformity operations othe United States of America. Basis for Opinion Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to a public bellevied States These financial statements are the responsibility of the Company's managelient of Propere a public express an opinion on the Company's financial statements based o Trise Infonton on the Company's financial statements Dased United States) express an opinion on the Public Company Accounting Oversight Boarder express firm registered with the Public Company Accounting Oversigne accounting miness of the object to the Confident with respect to the Confider of the Securities and Exchange federal securities laws and the applicable rules and regul Commission and the PCAOB. Commission in audit in accordance with the standards of the PCAOB. Those standards require that We conducted our audit in accordance with the standards of the Perina Financial statements we plan and perform the audit to obtain reasonable assurance about included perfo we conducted on the audit to obtain reasonable assurance about whenler more of more of more of more are free of misstatement, whether due to error or fraud. Our audit include we plan and personal misstatement , whether due to error of the financial statements, whether due to procedures to assess the risks of material misstatement of the financial are Tree of histor of material misstement of the inialical statemials procedures to doses of the procedures that respond to those Tiss. "Joch proboble statements. error or fraud, and periorning procedures had disclosures in the mater ma error of Tradition of the accounting the amounts and disclosines in the mastinates made by examining, on a test basis, evidence principles used and significant estimates made examining, on a cest assist of the accounting principles used and Sigmitune Counting Our audit also included evaluating the overall presentation of the financial statements. management, as well as evaluating our opinion. # Supplementary Information Supplementary information contained in Schedule I - Computation of Net Capital pursuant to The supplementary information contained in Schedule I - Compitation ha The supplementary information contained in Schedule 1 - Commission has been subjected to audit Uniform Net Capital Rule 15c3-1 of Securities and Exchange Commission has been The Supplentery The Searlies and Exchange Commission nas been subjection. The Supents. The Supents. The Uniform Net Capital Rule with with the audit of Company' onnomic not of rmed in conjunction with the audit of Company's management. Our audit procedures supplemental in the responsibility of the Company's management. Our audio the procedures "performs is the responsibility of the Company's managements on supplemental information information reconciles to the financial statest of Supplemental information the supplemental information reconcires of the management of the management of the the underlying accounting and other records, as applicable and per the underlying accounting and other records, as applicable and ![](_page_3_Picture_11.jpeg) ![](_page_3_Picture_12.jpeg) {4}------------------------------------------------ In forming our opinion on the supplemental information, we evaluated whether the supplemental In forming our opinion on the Supplemental in conformity with 17 CFR § 240.17a-5. In our Information, including its form and concent, in all material respects, in relation to the financial statements as a whole. ্রাম # AJEHAG. LIP AJSH & Co LLP We have served as the Company's Auditor since 2018 New Delhi, India March 31, 2021 {5}------------------------------------------------ # STATEMENT OF FINANCIAL CONDITION #### DECEMBER 31, 2020 #### ASSETS | Cash | S | 25,875 | |---------------------------------------------|---|------------| | Commissions & commission sharing receivable | | 206,056 | | Accounts receivable - personnel | | 100 | | Central registration depository account | | 1,594 | | Prepaid expenses | | 1.699 | | Right of use asset | | 3,593 | | Total assets | | \$ 238,917 | #### LIABILITIES AND MEMBER'S EQUITY #### LIABILITIES: | Accounts payable and accrued expenses | S | 97,408 | |-----------------------------------------------|----|---------| | Lease liability - roua | ಕಿ | 3,593 | | PPP loan | S | 18.733 | | Related party payables | | 21,972 | | Total liabilities | | 141,706 | | COMMITMENTS AND CONTINGENCIES (Notes 5 and 6) | | | | MEMBER'S EQUITY (Note 2) | | 97,211 | | Total liabilities and member's equity | S | 238,917 | {6}------------------------------------------------ #### STATEMENT OF INCOME # FOR THE YEAR ENDED DECEMBER 31, 2020 | REVENUES: | | | |----------------------------|---|-----------| | Commissions | S | 1,444,254 | | Insurance income | | 15,851 | | Commissions sharing income | | 70,911 | | Reimbursed expenses | | 54,328 | | Other income | | 12,527 | | | | | | Total revenues | | 1,597,871 | | EXPENSES: | | | | Commission | | 1,234,740 | | Professional services | | 49,728 | | Personnel | | 98,616 | | General operating | | 63,750 | | Insurance | | 25,519 | | Regulatory | | 34,059 | | Marketing | | 1,308 | | Other | | 848 | | Total expenses | | 1,508,568 | | NET INCOME | S | 89,303 | {7}------------------------------------------------ #### STATEMENT OF CASH FLOWS #### FOR THE YEAR ENDED DECEMBER 31, 2020 | CASH FLOWS FROM (TO) OPERATING ACTIVITIES: | | | |--------------------------------------------------------------------------------------|---|-----------| | Net income | S | 89,303 | | Adjustments to reconcile net income to net cash provided by
operating activities: | | | | (Increase) Decrease in accounts receivable - personnel | | 1,675 | | (Increase) Decrease in central registration depository account | | (1,511) | | (Increase) Decrease in prepaid expenses | | (426) | | (Increase) Decrease in commissions receivable | | (138,633) | | (Increase) Decrease in right of use asset | | (3,593) | | Increase (Decrease) in accounts payable and accrued expenses | | 42,107 | | Increase (Decrease) in Lease liability - roua | | 3,593 | | Increase (Decrease) in related party payables | | 8,041 | | Net cash provided by operating activities | | 556 | | CASH FLOWS FROM FINANCING ACTIVITIES: | | | | PPP loan | | 18,734 | | Capital distribution | | (14,400) | | Net cash provided by financing activities | | 4,334 | | NET INCREASE IN CASH | | 4,890 | | CASH, at beginning of year | | 20,985 | | CASH, at end of vear | e | 25.875 | {8}------------------------------------------------ #### STATEMENT OF CHANGES IN MEMBER'S EQUITY #### FOR THE YEAR ENDED DECEMBER 31, 2020 | BALANCES, December 31, 2020 | A | 97,211 | |-----------------------------|----|--------------------| | Distributions
Net income | | (14,400)
89,303 | | BALANCES, December 31, 2019 | ಕೆ | 22,308 | {9}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS #### December 31, 2020 #### 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. #### 15c3-3 Exemption 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. The Company identified the provisions of Footnote 74 under which the Company is not required to claim an exemption from 17 C.F.R 240.15c3-3. The Company met the identified provisions of Footnote 74 for the period November 19, 2020, through December 31, 2020. #### 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. {10}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS (continued) # NOTE 1- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(cont'd) # 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 2017. 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, 2020. # 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 the reported revenues and expenses. Actual results could vary from the estimates that were used. # Leases The Company's accounting and reporting of its leases complies with FASB ASC 842, Lease. See Note 3. # 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, 2020, the Company had net capital and net capital requirements of \$40,977 and \$7,959, respectively. The Company's net capital ratio (aggregate indebtedness to net capital) was 2.91 to 1. According to Rule 15c3-1, the Company's net capital ratio shall not exceed 15 to 1. {11}------------------------------------------------ #### NOTES TO FINANCIAL STATEMENTS (continued) # NOTE 3 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Effective December 1, 2020, the Company adopted the new FASB accounting standard ASC 842, Leases, which governs the accounting and reporting of lesses. Lessor accounting and reporting is largely unchanged. ASC 842 generally applies to lease that have a lease term greater than 12 months at lease commencement, or that include an option to purchase the underlying asset the Company is reasonably certain to exercise. ASC 842's principal changes are: 1) recognizing leases on the Statement of Financial Condition by recording a Right-of-use asset and a Lease liability; 2) changes in lease expense recognition during the lease term based on its classification as an Operating lease or Finance lease: 3) expanded disclosures of lease agreements, cost and other matters. See Note 4. # NOTE 4 - LEASES The Company is a lessee in a non-cancelable operating lease for office space subject to ASC 842, Leases. The lease agreement does not include a termination or renewal option for either party, or restrictive financial or other covenants. The non-cancelable operating lease is set to expire on May 1, 2021. # NOTE 5-RELATED PARTY TRANSACTIONS AND COMMITMENTS 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 entered into a lease agreement with Tartan Properties which will expire May 1, 2021. At December 31, 2020 there were related party payables of \$21,972 that are commissions due to the members of the Firm. The Firm has recorded \$60,000 as payroll expense and \$226,828 as commission expense paid to members for 2020. # NOTE 6-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. {12}------------------------------------------------ # NOTES TO FINANCIAL STATEMENTS (continued) # NOTE 7 - PAYCHECK PROTECTION PROGRAM LOAN During the 12 months ended December 31, 2020 the Company borrowed \$18,650 under the Paycheck Protection Program (PPP) established by the Coronavirus Aid, Relief, and Economic Security Act sponsored by the United State and administered by the Small Business Administration (the "SBA"). The loan is subject to a note dated April 13, 2020 and may be forgiven to the extent proceeds of the loan are used for eligible expenditures such as payroll and other expenses described in the CRAES Act. No determination has been made by the SBA as to whether the Company will be eligible for forgiveness, in whole or in part. The loan bears interest at a rate of 1% and is payable in monthly installments of principal and interest over 24 months beginning 6 months for the date of the note. The loan may be repaid at any time with no prepayment penalty. The Company has utilized the entirety of the proceeds of this loan to pay expenses covered by the PPP as of December 31, 2020. # NOTE 8 – 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. {13}------------------------------------------------ SUPPLEMENTARY INFORMATION {14}------------------------------------------------ # SCHEDULE I # VERITAS INDEPENDENT PARTNERS, LLC # COMPUTATION OF NET CAPITAL UNDER RULE 15c3-1 OF THE SECURITIES EXCHANGE ACT OF 1934 #### DECEMBER 31, 2020 | CREDIT: | | |-------------------------------------------------------------|-------------| | Stockholders' equity | S
97,211 | | Allowable credits - PPP loan | 18,733 | | Total credits | 115,944 | | DIBIRTISS | | | Nonallowable assets: | | | Accounts receivable - personnel | 100 | | Commissions & commission sharing - nonallowable | 71,575 | | Central registration depository account | 1,594 | | Prepaid expenses | 1,699 | | Total debits | 74,968 | | NET CAPITAL | 40.976 | | Minimum requirement of 6-2/3% of aggregate indebtedness of | | | \$119,380 or \$5,000, whichever is greater | 7,959 | | Excess net capital | S
33,017 | | AGGREGATE INDEBTEDNESS: | | | Accounts payable, accrued expenses & related party payables | \$ 119,380 | | RATIO OF AGGREGATE INDEBTEDNESS TO NET CAPITAL | 2.91 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 Form X-17A-5 as of December 31, 2020. See Independent Auditor's Report. {15}------------------------------------------------ ![](_page_15_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 We have reviewed managements statenients, Independent Partners, LLC's identified the Partners, LLC's Exemption Report, In Which (L) velices any claimed an exemption from 17 C.F.R. following provisions of 17 C.F.R. under which the Company stated th following provisions of 17 C.F.K. under willen the "connection") and (2) the Company stated that §240.17a-5 under foothote 74 or 17a-3 (the "Exchipsion fiscal year without exception, provisions, and they met the identified exemption provisions throughout the most one exemption provisions and its statements. Our review was conducted in accordance with the standards of the Public Company Accounting Our review was conducted in accordingly, included inquiries and other required procedures to Oversight Board (United States) and, accordingly, included by exemption, provisio Oversignt Board (United States) and, according (); and mith the exemption of an opinions. An review is obtain evidence about the Company's compliance which is the expression of an opinion on substantially less in scope than an examination, the objective of eniging substantially less in scope than and express such an opinion. Based on our review, we are not aware of any material modifications that should be made to Based on four review, we are not aware of them to be fairly stated, in all material respects, based management's statements reletted to above for them to be fal-5 under the Securities Exchange Act of 1934. ATCH 86. LLP AJSH & Co LLP New Delhi, India March 31, 2021 ![](_page_15_Picture_10.jpeg) ![](_page_15_Picture_11.jpeg) {16}------------------------------------------------ # EXEMPTION REPORT REQUIREMENT FOR BROKER/DEALERS UNDER RULE 17a-5 OF THE SECURITIES EXCHANGE ACT OF 1934 #### DECEMBER 31, 2020 To the best knowledge and belief of Veritas Independent Partners, LLC: The Company did not claim an exemptive provision to Rule 15c3-3 of the Securities Exchange Act of 1934 during the period November 11, 2020 through December 31, 2020. The Company believes the services they provide would not subject the Company to the provisions of SEC Rule 15c3-3, because the Company without exception, did not hold customer funds or securities and its business activities were limited to mutual funds, variable products, municipal securities and investment advisory services; during the period November 11, 2020 through December 31, 2020. The Company is filing this exemption report and a related accountant's report in accordance with Footnote 74 of SEC Release 34-70073 and as discussed in Question 8 of the related FAQ issued by the SEC Staff. Signature Managing Member Title Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.