# EDGAR Filing Document

**Accession Number:** 0001002202
**File Stem:** 0001002202-23-000001
**Filing Date:** 2023-2
**Character Count:** 15283
**Document Hash:** ec70f34d39ebfc1844fa3748b261ed89
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001002202-23-000001.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001002202-23-000001

**CONFORMED SUBMISSION TYPE**: X-17A-5

**PUBLIC DOCUMENT COUNT**: 4

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**EFFECTIVENESS DATE**: 20230223

**PERIOD START**: 20220101

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CHURCHILL FINANCIAL, LLC
- **CENTRAL INDEX KEY:** 0001002202
- **IRS NUMBER:** 611288456
- **STATE OF INCORPORATION:** KY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-48724
- **FILM NUMBER:** 23657670

**BUSINESS ADDRESS:**
- **STREET 1:** 295 N. HUBBARDS LANE, SUITE 203
- **CITY:** LOUISVILLE
- **STATE:** KY
- **ZIP:** 40207
- **BUSINESS PHONE:** 502-893-1780

**MAIL ADDRESS:**
- **STREET 1:** 295 N. HUBBARDS LANE, SUITE 203
- **CITY:** LOUISVILLE
- **STATE:** KY
- **ZIP:** 40207

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CHURCHILL FINANCIAL LLC                                 /BD
- **DATE OF NAME CHANGE:** 19951016

### Attached PDF Documents

**Attachment 1:** `stmtfincond.pdf`

# Churchill Financial, LLC
Statement of Financial Condition
As of December 31, 2022

# ASSETS

| Cash and equivalents | $179,235 |
| --- | --- |
| Deposits with clearing firms | 154,088 |
| Receivable from brokers and dealers | 192,501 |
| Prepaid expenses | 54,572 |
| Operating lease right-of-use asset | 26,132 |
| Fixed assets, net of accumulated depreciation of $97,416 | 10,778 |
| Total assets | $617,306 |

# LIABILITIES AND MEMBERS' EQUITY

| Accounts payable and accrued expenses | $68,473 |
| --- | --- |
| Lease liability | 26,132 |
| Members' equity | 522,701 |
| Total liabilities and members' equity | $617,306 |

See accompanying notes.

3

**Attachment 2:** `stmtfincondnotes.pdf`

# Churchill Financial, LLC
Notes to Financial Statements
For the Year Ended December 31, 2022

Note 1 - Nature of Business and Significant Accounting Policies

Churchill Financial, LLC (the "Company") is a broker/dealer in securities registered with the Securities and Exchange Commission under the exemptive provisions of (SEC) Rule 15c3-3(k)(2)(ii). These provisions provide that all funds and securities belonging to customers be handled by a correspondent broker/dealer. In addition, the liability of the members of the Company is limited to the member's total capital contributions.

Basis of Accounting

The financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Accounting Standards Codification ("ASC") as produced by the Financial Accounting Standards Board ("FASB") is the sole source of authoritative GAAP.

The accounting policies followed by the Company are as follows:

Statement of Income

For purposes of this statement, the Company recognizes commissions and related clearing expenses on a settlement date basis as security transactions occur.

Revenue Recognition

We generate commission revenue, which occurs when clients trade securities and for which our performance obligation is fulfilled on the trade date, and investment advisory fees, for which the performance obligation is performed over time.

Advisory fees are billed to clients on a calendar quarter at the beginning of that period, using values as of the last business day of each immediately preceding calendar quarter. The value of the assets in an advisory account on the billing date determines the amount billed, and accordingly, the revenues earned in the following three month period. Advisory revenues collected and agreed to by the client average 1.0% of the underlying assets as of December 31, 2022.

7

# Churchill Financial, LLC
Notes to Financial Statements (Continued)
For the Year Ended December 31, 2022

Note 1 - Nature of Business and Significant Accounting Policies (Continued)

Statement of Cash Flows

For purposes of this statement, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. At various times throughout the year, the Company may have balances in excess of Federal Deposit Insurance Corporation ("FDIC") insurance limits.

Income Taxes

The Company is organized as a limited liability company and has elected to be taxed as a partnership for Federal income tax purposes. Therefore, net income for Federal and State income tax purposes is passed through to the members personally. Income tax expense represents local income taxes for the year ending December 31, 2022.

The Company recognizes uncertain tax positions using the "more-likely-than-not" approach as defined in the ASC. No liability for uncertain tax positions has been recorded in the accompanying financial statements. The Company's 2019-2022 federal tax years remain open and subject to examination.

Use of Estimates

Preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those reported.

Accounts Receivable

Management considers all accounts receivable to be collectible; accordingly, no allowance for doubtful accounts is required. If amounts become uncollectible, they will be charged to operations when that determination is made.

Fixed Assets

Fixed assets are recorded at cost. Depreciation is provided on a straight-line basis using an estimated useful life of three to five years.

8

# Churchill Financial, LLC
Notes to Financial Statements (Continued)
For the Year Ended December 31, 2022

Note 1 - Nature of Business and Significant Accounting Policies (Continued)

Advertising Costs

The Company expenses advertising costs as incurred. There was $1,614 in advertising expense for the year ended December 31, 2022.

Subsequent Events

Subsequent events for the Company have been considered through the date of the Report of Independent Registered Public Accounting Firm which represents the date the financial statements were available to be issued.

Note 2 - Net Capital Requirements

Pursuant to the net capital provisions of Rule 15c3-1 of the Securities and Exchange Act of 1934, a minimum net capital requirement must be maintained, as defined under such provisions. Net capital and the related net capital ratio may fluctuate on a daily basis.

There were no material inadequacies in the computation of the ratio of aggregate indebtedness to net capital at December 31, 2022 or the procedures followed in making the periodic computation required. At December 31, 2022, the Company had net capital of $426,219 and net capital requirements of $6,307. The ratio of aggregate indebtedness to net capital was 0.222 to 1 at December 31, 2022. The Securities and Exchange Commission permits a ratio of no greater than 15 to 1.

Note 3 - Possession or Control Requirements

The Company adheres to the exemptive provisions of (SEC) Rule 15c3-3(k)(2)(ii) by transmitting all customer funds and securities to the clearing broker who carries the customer accounts. Therefore, the Company does not hold or have any possession or control of customer funds or securities.

Note 4 - Concentration of Risk

Substantially all commissions earned by the Company were received from trades directed by one investment management firm, Cullinan Associates, Inc. Certain members of the Company are also stockholders of Cullinan Associates, Inc.

9

# Churchill Financial, LLC
Notes to Financial Statements (Continued)
For the Year Ended December 31, 2022

# Note 5 - Simplified Employee Pension Plan

The Company has a Salary Deferral Simplified Employee Pension plan ("SAR-SEP"), whereby it may (but is not required to) make discretionary contributions on behalf of employees who have been with the Company for two years or more. In addition, eligible employees may make contributions to the SEP. There were $174,568 of Company contributions during the year.

# Note 6 - Operating Leases

The Company determines if an arrangement is a lease at inception. The Company has one operating lease which is included as an operating lease ROU asset and operating lease liability on the statement of financial condition.

The ROU asset represents the Company's right to use an underlying asset for the lease term and the lease liability represents the Company's obligation to make lease payments arising from the lease. The operating lease ROU asset and liability are recognized at commencement date based on the present value of fixed lease payments over the lease term. In determining the present value of fixed lease payments, the Company used a risk free rate of return of 3% which is a practical expedient allowed if no rate implicit in the lease. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The operating lease contains lease and non-lease components, which are accounted for separately in accordance with another practical expedient selection.

The Company extended for one year a five year lease agreement as assignee, under a lease agreement that Cullinan Associates (see Note 4) has with a lessor. The extended lease period is November 2022 through October 2023. Terms of the lease require monthly rent payments of $2,517 and also requires the Company to pay a portion of the building operating expenses based on the Company's pro rata occupancy. These operating costs allocated to it are explicit in the lease agreement. Lease expense under this extended operating lease and the prior operating lease totaled $31,264 for the year ended December 31, 2022. The balance of the ROU asset and lease liability was $26,132 at December 31, 2022.

10

# Churchill Financial, LLC  
Notes to Financial Statements (Continued)  
For the Year Ended December 31, 2022

# Note 6 - Operating Leases (Continued)

Supplemental cash information related to leases is as follows:

Cash paid for amounts included in the measurement of lease liability: $31,714

Future minimum rent payments required under this lease are as follows:

| 2023 | $23,785 |
| --- | --- |
| Total | $23,785 |

11

**Attachment 3:** `acctrptfinrpt.pdf`

MCM
CPAs & ADVISORS

# Report of Independent Registered Public Accounting Firm

To the Members of
Churchill Financial, LLC

## Opinion on the Financial Statements

We have audited the accompanying statement of financial condition of Churchill Financial, LLC, as of December 31, 2022, and the related statements of income, changes in members' equity and cash flows for the year then ended, and the related notes and schedule (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of Churchill Financial, LLC as of December 31, 2022, 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 Churchill Financial, LLC's management. Our responsibility is to express an opinion on Churchill Financial, 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 Churchill Financial, 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.

MCM CPAs & Advisors LLP

www.mcmcpa.com

888.587.1719

Member of Prime Global - An Association

of Independent Accounting Firms

Kentucky

Indiana

Ohio

## **Report of Independent Registered Public Accounting Firm (Continued)**

### **Auditor's Report on Supplemental Information**

The supplementary information contained in Schedule I has been subjected to audit procedures performed in conjunction with the audit of Churchill Financial, LLC's financial statements. The supplemental information is the responsibility of Churchill Financial, 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 Churchill Financial, LLC's auditor since 1996.

Louisville, Kentucky

2

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0001002202

**Filer CCC:** XXXXXXXX

**Is this a LIVE or TEST filing?:** LIVE

**Would you like a Return Copy?:** Yes

### Submission Information

**Report Period Begin Date:** 01-01-2022

**Report Period End Date:** 12-31-2022

**Type of Registrant:** Broker-dealer

**Any material weaknesses identified?:** No

### Registrant Identification

**Name of Broker-Dealer:** CHURCHILL FINANCIAL, LLC

**Business Address:** 295 North Hubbards Lane, Suite 203, Louisville, KY, 40207

**Contact Person:** John J Hunter

**Contact Phone:** 5028953535

### Independent Public Accountant Identification

**Accountant Name:** MCM CPAs & Advisors LLP

**Accountant Address:** 2600 Meidinger Tower, MCM CPAs & Advisors LLP, LOUISVILLE, KY, 40202

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

I, **John J. Hunter, Jr.**, swear (or affirm) that, to the best of my knowledge and belief, the accompanying financial statements and supporting schedules pertaining to the firm of **CHURCHILL FINANCIAL, LLC**, as of **12-31-2022**, are true and correct.

**Signature:** John J. Hunter, Jr

**Title:** VP

**Notarized:** Yes