(iiiiiiiiiii~i~it v a1l & knauth, llp certified public accountants audit, tax and advisory...
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IIIIIII UNITED STATES OMs APPROVALIII~I~IIIIIIIII(IIIIIIII3235-0123'URITIES AND EXCHANGE COMMISSION
OMB Number vExpires: March 31, 2016
16003435 Washington, D.C. 20549 Estimated average burdenhours per response... 12.00
att; CF RMTX-I V5 iMail Processing --- -
~~G,tiQn PART III SEC FILE NUMBER
8-67843
FEB 2 S 1016 FACING PAGE
U"WWRcWwed of Brokers and Dealers Pursuant to Section 17 of the4I09curitiies Exchange Act of 1934 and Rule 17a-5 Thereunder
REPORT FOR THE PERIOD BEGINNING 01/01/15 AND ENDING 12/31/15MM/DDIYY VIM/DD/YY
A. REGISTRANT IDENTIFICATION
NAME OF BROKER-DEALER:
TPEG SECURITIES, LLC OFFICIAL USE ONLY
FIRM ID. NO
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)
925 S. KIMBALL AVE. SUITE 100(No and Street)
SOUTHLAKE TEXAS 76092(City) (State) (Zip Code)
NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
WILLIAM L. BURKE 817-310-2900(Area Code - Telephone No.)
B. ACCOUNTANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT Whose opinion is contained in this Report*
VAIL & KNAUTH. LLP(Name - if individual state last, first, middle name)
1801 GATEWAY BLVD., SUITE 212 RICHARDSON, TEXAS 75080(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 astatement of facts and circumstances relied on as the basis for the exemption. See Section 240.17x-5je)(2).
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~I
L' OATH OR AFFIRMATION
C
1, WILLIAM L. BURKE, swear (or affirm) that, to the best of my knowledge and belief the
accompanying financial statements and supporting schedules pertaining to the firm of TPEG
SECURITIES, LLC as of DECEMBER 31, 2015, are true and correct. I further swear (or affirm) neither
the company nor any partner, proprietor, principal officer or director has proprietary interest in any
F, account solely as that of a customer, except as follows:
U
~ Brett R.JensenNF?~4 Commission Expires
Notary ublic 12-28-2016
This report" contains (check all applicable boxes):
0
Facing page.Statement of Financial Condition.
Statement of Income (Loss).
Signature
MEMBERTitle
Statement of Cash Flows.Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's
Capital.Statement of Change in Liabilities Subordinated to Claims of Creditors.
Computation of Net Capital for brokers and dealers pursuant to Rule 156-1.
Computation for Determination of Reserve Requirements Pursuant of Rule 15e3-3.
Information Relating to the Possession or control Requirements Under Rule 156-3.
A Reconciliation, including appropriate explanation, of the Computation of Net
Capital Under Rule 150-1 and the Computation for Determination of the Reserve
Requirements Under Exhibit A of Rule 150-3.
A Reconciliation between the audited and unaudited Statements of Financial Condition
with respect to methods of consolidation.
FJ ® (1) An Oath of Affirmation.
® (m) A copy of the SIPC Supplemental Report.
❑ (n) A report describing any material inadequacies found to exist or found to have
F_ existed since the date of the previous audit.
® (o) Report of Independent Registered Public Accounting Firm on Management's Exemption Report.
❑ (p) Schedule of segregation requirements and funds in segregation-customers' regulated commodityFfutures account pursuant to Rule 171-5.
* For conditions of confidential treatment of certain portions of this filing, see section
C 140.17a-5(e)(3).
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TPEG Securities, LLC
Financial Statements
and Supplementary Information
Year ended December 31, 2015
VAI L & KNAUTH, LLC'CERTIFIED PUBLIC ACCOUNTANTS
9
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A1L & KNAUTH, LLPT V CERTiFiED PUBLIC ACCOUNTANTSAUDIT, TAX AND ADVISORY SERVICES
1801 Gateway Blvd., Suite 212
Richardson, TX 75080
(972) 234-3333
Michael G. Vail, CPA
Chris E. Knauth, CPA
Charles T. Gregg, CPA
Don E. Graves, CPA
Pamela C. Moore, CPA
Courtney N. Cooper, CPA
'PEG Securities, LLC
Financial Statements
and Supplementary Information
Year ended December 31, 2015
Members:
American Institute of CPAs
Texas Society of CPAs
WWW.Vailknauth.com
323 East Highway 199 —P.O. Box 1859
Springtown, TX 76082
(817)220-8700
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TPEG SECURITIES, LLC
FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
CONTENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM . . . 1
STATEMENT OF FINANCIAL CONDITION . . . . . . . . . . . . . . . . 3
STATEMENT OF INCOME . . . . . . . . . . . . . . . . . . . . . . . . . 4
STATEMENT OF CASH FLOWS . . . . . . . . . . . . . . . . . . . . . 5
STATEMENT OF CHANGES IN MEMBERS' CAPITAL . . . . . . . . . . . . 6
STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED . . . . . . . . 7
NOTES TO FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . 8
SUPPLEMENTAL INFORMATION REQUIRED BY RULE .17a-5
COMPUTATION OF NET CAPITAL UNDER RULE 156-1 OF
THE SECURITIES AND EXCHANGE COMMISSION . . . . . SCHEDULE I . . . . 12
DETERMINATION OF RESERVE REQUIREMENTSUNDER RULE 15c3-3 OF THE SECURITIES
AND EXCHANGE COMMISSION. . . . . . . . . . . . SCHEDULE II . . . . 14
INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS
UNDER RULE 156-3 . . . . . . . . . . . . . . . . . . . SCHEDULEIII . . . . 15
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMREVIEW ...................................... 16
TPEG SECURITIES, LLC EXEMPTION LETTER . . . . . . . . . . . . . . 17
INDEPENDENT ACCOUNTANTS' AGREED UPON PROCEDURES REPORTPURSUANT TO RULE 17a-5(a)(4) . . . . . . . . . . . . . . . . . . . . . . . . . 19
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C& K AUT CPA Members:_ . .L , .LP
_C E 11 T 111 E D 11.11111C ACCOUNTANTSAUDIT, TAX AND ADVISORY SERVICESKDon
E. K auth,
Chris E. Knauth, CPA American Institute of CPAsChris
Charles T. Gregg, CPA -Texas Society of CPAs
E. Graves, CPA
Pamela C. Moore, CPA
Courtney N. Cooper, CPA
1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
E
BOARD OF DIRECTORS
C TPEG SECURITIES, LLCSOUTHLAKE, TEXAS
L; We have audited the accompanying statement of financial condition of TPEG SECURITIES, LLC, as ofDecember 31, 2015, and the related statements of income, cash flows, changes in members' capital, andchanges in liabilities subordinated to claims of general creditors for the year then ended. These financialstatements are the responsibility of TPEG SECURITIES, LLC's management. Our responsibility is toexpress an opinion on these financial statements based on our audit.
F, We conducted our audit in accordance with the standards of the Public Accounting Oversight Board (UnitedStates). Those standards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An audit includes examining, on a test
C basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our audit provides a reasonable basis for our
~ opinion-pinion
InIn our opinion, the financial statements referred to above present fairly, in all material respects, the financialcondition of TPEG SECURITIES, LLC as of December 31, 2015, and the results of its operations and itscash flows for the year then ended in accordance with accounting principles generally accepted in the United-States nitedStates of America.
The supplemental information, including Computation of Net Capital under Rule 1563-1 of the SEC,Computation for Determination of Reserve Requirements under Rule 1563-3 of the SEC, and InformationRelating to Possession or Control Requirements under Rule 1563-3, has been subjected to audit proceduresperformed in conjunction with the audit of TPEG SECURITIES, LLC financial statements. Thesupplemental information is the responsibility of TPEG SECURITIES, LLC's management. Our auditprocedures included determining whether the supplemental information reconciles to the financial statementsor the underlying accounting and other records, as applicable, and performing procedures to test thecompleteness and accuracy of the information presented in the supplemental information. In forming ouropinion on the supplemental information, we evaluated whether the supplemental information, including itsform and content, is presented in conformity with 17 C.F.R. §240.17a-5. In our opinion, the supplementalinformation is fairly stated, in all material respects, in relation to the financial statements as a whole.
O 1801 Gateway Blvd., Suite 212WWVv,vallknauth.com 323 East Highway 199 —P.O. Box 1859
Richardson, TX 75080 Springtown, TX 76082
(~ (972) 234-3333 (917) 220-8700
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' Page 2TPEG SECURITIES, LLC
r
VJ- + K.,uFr Vail
&
Knauth, LLPRichardson, Texas
February 22, 2016
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TPEG SECURITIES, LLC
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 2015
Assets
Cash
Total Assets
Liability and Members' Capital
Current Liability
Accounts payable
Members' Capital
Contributed capital
Accumulated deficit
Total Members' Capital
Total Liability and Members' Capital
$ 34,089
$ 34,089
$ 5,400
56,700
(28,011)
28,689
$ 34,089
The accompanying notes are an integral part of the financial statements.
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III l
C
TPEG SECURITIES, LLC
STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 2015
Revenues
F,,Other revenue $ 3,804,632
Total Revenues 3,804,632
ExpensesCommission expense 2,647,419Occupancy costs 6,000Regulatory and clearance expense 9,687Other expense 1,128,899
F,J
Total Expenses 3,792,005
Net income before provision for income taxes 12,627
E Provision for federal income taxes 1,760
Net Income $ 10,867
~J
cThe integral of the financial statements.accompanying notes are an part
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FilC
_ TPEG SECURITIES, LLC
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2015
Operating Activities
~INet income $ 10,867
CIIncrease in accounts payable 5,400
Total cash provided by operating activities 16,267
Financing Activities
Members' capital contribution 4,500
Increase in cash 20,767
Cash at December 31, 2014 13,322
Cash at December 31, 2015 $ 34,089
l;
1 ,
l;
The integral of the financial statements.accompanying notes are an part
l J'
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TPEG SECURITIES, LLC
STATEMENT OF CHANGES IN MEMBERS' CAPITAL
YEAR ENDED DECEMBER 31, 2015
ContributedCapital Accumulated Deficit
Balances atDecember 31, 2014 $ 52,200 $
Net income -
Members' capital contribution 4,500
Balances at
Total
(38,878) $ 13,322
10,867 10,867
- 4,500
December 31, 2015 $ 56,700 $ (28,011) $ 28,689
The accompanying notes are an integral part of the financial statements.
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TPEG SECURITIES, LLC
STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED
TO CLAIMS OF GENERAL CREDITORS
YEAR ENDED DECEMBER 31, 2015
Balance at December 31, 2014
Increases
Decreases
Balance at December 31, 2015
The accompanying notes are an integral part of the financial statements.
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f
I A. COMPANY:
TPEG SECURITIES, LLC
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2015
TPEG SECURITIES, LLC, formed on October 15, 2007, is a member of the Financial Industry
~I Regulatory Authority (FINRA) and operates as a broker-dealer in securities. All customers' securities,funds and accounts are processed and carried by correspondent broker-dealers.
l-JB. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
1. Customers' Securities and Commodities -Transactions are recorded on a settlement date basiswith related commission income and expenses recorded on a trade date basis. Securities andcommodities transactions of the Company are recorded on a trade date basis.
2. Cash - The Company considers all short-term investments with an original maturity of threemonths or less to be cash.
3. Income Taxes - The Company has elected to be taxed as a partnership. Accordingly, then financial statements do not include a provision for federal income taxes because the Company
does not incur federal income taxes. Instead, its earnings and losses are allocated to the members
0 and are taxed based on their personal tax strategies.
The Company incurs state franchise taxes, which are, in part, based on certain income andexpense items, and the financial statements include a provision for the state tax effect of
Cl transactions reported in the financial statements.
C 4. 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 the amounts reported in the financial statements and
(I accompanying notes. Actual results could differ from these estimates.
(Continued)
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L, TPEG SECURITIES, LLC
C NOTES TO FINANCIAL STATEMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2015
C C. FAIR VALUES OF FINANCIAL INSTRUMENTS:
Fair Value Measurement - FASB ASC 820 defines fair value, establishes a framework for measuringfair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fairvalue is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date. A fair value measurement assumesthat the transaction to sell the assets or transfer the liability occurs in the principal market for the assetor liability or, in the absence of a principal market, the most advantageous market. Valuation techniquesthat are consistent with the market, income or cost approach, as specified by FASB ASC 820, are usedto measure fair value.
El The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value intothree broad levels:
~! Level one inputs are unadjusted quoted prices in active markets for identical assets or liabilities theU Company has the ability to access.
CI Level two inputs are inputs (other than quoted prices included within level one) that are observable forthe asset or liability, either directly or indirectly.
Level three inputs are unobservable inputs for the asset or liability and rely on management's ownassumptions about the assumptions that market participants would use in pricing the asset or liability.
C The carrying amounts of assets in the balance sheet approximate fair value.
CI
D. AFFILIATED ENTITY TRANSACTIONS:
Office facilities are subleased from an entity, affiliated through common ownership and management.Rental payments during the year ended December 31, 201.5 totaled $6,000. At December 31, 2015,C annual minimum rental commitments on the office lease were $1,800 for the year ending December 31,2016.
I
F (Continued)
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DO TPEG SECURITIES, LLC
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OYEAR ENDED DECEMBER 31, 2015
D. AFFILIATED ENTITY TRANSACTIONS (Continued):
a
The affiliated entity also provides consulting services. Payments to the entity for the consulting servicestotaled $1,071,760 during the year ended December 31, 2015.
n E. NET CAPITAL REQUIREMENTS:L'I
The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (rulea 156-1), which 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, 2015, theCompany had net capital of $28,689 which was $23,689 in excess of its required net capital of $5,000.
D The Company's net capital ratio was 0.19 to 1.
III
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SUPPLEMENTAL INFORMATION
PURSUANT TO RULE 17A-5 OF THE
SECURITIES EXCHANGE ACT OF 1934
AS OF AND FOR THE YEAR ENDED
DECEMBER 31, 2015
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Schedule I
TPEG SECURITIES, LLC -
SUPPLEMENTAL SCHEDULES REQUIRED BY RULE 17a-5
COMPUTATION OF NET CAPITAL UNDER RULE 156-1
OF THE SECURITIES AND EXCHANGE COMMISSION
DECEMBER 31, 2015
Computation of Net Capital:
Total stockholders' equity qualified for net capital $ 28,689
Add:Other deductions or allowable credits -
Total capital and allowable subordinated liabilities 28,689
Deductions and/or charges:Non-allowable assets -
Net capital before haircuts on securities positions 28,689
Haircuts on Money Market Fund (computed, where
applicable, persuant to rule 156-1(f) -
Net Capital $ 28,689
Aggregate Indebtedness $ 5,400
(Continued)
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Schedule I
TPEG SECURITIES, LLC
SUPPLEMENTAL SCHEDULES REQUIRED BY RULE 17a-5
COMPUTATION OF NET CAPITAL UNDER RULE 156-1
OF THE SECURITIES AND EXCHANGE COMMISSION (CONTINUED)
DECEMBER 31, 2015
Computation of Basic Capital Requirement:
Minimum net capital required (6 2/3% of totalaggregate indebtedness) $ 360
Minimum dollar net capital requirement ofreporting broker or dealer $ 5,000
Net capital requirement (greater of above twominimum requirement amounts) $ 5,000
Net capital in excess of required minimum $ 23,689
Net capital less greater of 10% of aggregate indebtedness or120% of minimum dollar net capital requirement $ 22,689
Ratio of aggregate indebtedness to net capital .19 to 1
Reconciliation with Company's Computation
Net capital, as reported in Company's Part II (Unaudited)Focus report $ 28,689
Audit adjustment -
Net capital $ 28,689
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o Schedule H
TPEG SECURITIES, LLC r ..
oSUPPLEMENTAL SCHEDULES REQUIRED BY RULE 17a-5
DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3
~j OF THE SECURITIES AND EXCHANGE COMMISSION
O DECEMBER 31, 2015
(See Independent Auditors' Report on Supplementary Information.)
0
EXEMPTIVE PROVISIONS
o The Company has claimed an exemption from Rule 15c3-3 under section (k)(1) for limited business activities.s
000
;o0oo0
0o
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DSCHEDULE III
TPEG SECURITIES, LLCSUPPLEMENTAL SCHEDULES REQUIRED BY RULE 17a-5
INFORMATION RELATING TO POSSESSION OR
CONTROL REQUIREMENTS UNDER RULE 156-3
OF THE SECURITIES AND EXCHANGE COMMISSION
DECEMBER 31, 2015
The Company is exempt from the Rule 156-3 as it relates to possession and control requirements under the (k)(1)exemptive provision.
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r
I
TPEG SECURITIES, LLC
REPORT OF INDEPENDENT REGISTERED' PUBLIC ACCOUNTING FIRM
YEAR ENDED DECEMBER 31, 2015
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VM & KN A j T`T H LLP G. Vail, CPA Members:
~f j, j~~'~j j-~~„j j ~ 1 ► Chris
E. K
Chris E. Knauth, CPA American Institute of CPAsC E R T I F 1 E D 11.111111C ACCOUNTANTS AUDIT, TAX AND ADVISORY SERVICES
Charles T. Gregg, CPA Texas Society of CPAs
Don E. Graves, CPA
Pamela C. Moore, CPA
Courtney N. Cooper, CPA
REPORT OF INDEPENDENT REGISTEREDPUBLIC ACCOUNTING FIRM
rr~J
BOARD OF DIRECTORS
C TPEG SECURITIES, LLCSOUTHLAKE, TEXAS
We have reviewed management's statements, included in the accompanying TPEG Securities, LLCExemption Report, in which (1) TPEG Securities, LLC identified the following provisions of 17 C.F.R.§15c' -3(k) under which TPEG Securities, LLC claimed an exemption from 17 C.F.R. §240.15c3-3: (k)(1)(the "exemption provisions") and (2) TPEG Securities, LLC stated that TPEG Securities, LLC met theidentified exemption provisions throughout the most recent fiscal year without exception. TPEG Securities,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 OversightBoard (United States) and, accordingly, included inquiries and other required procedures to obtain evidenceabout TPEG Securities, LLC's compliance with the exemption provisions. A review is substantially less inscope than an examination, the objective of which is the expression of an opinion on management'sstatements. 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'sstatements referred to above for them to be fairly stated, in all material respects, based on the provisions setforth in paragraph (k)(1) of Rule 150-3 under the Securities Exchange Act of 1934.
C
~J V6J+KM+I-,u.PVail & Knauth, LLP
E Richardson, Texas
FJ February 22, 2016
1801 Gateway Blvd., Suite 212323 East Highway 199 — P.O. Box 1859
Richardson, TX 75080 vvvrVv.Vdllknauth.col~T
Springtown, TX 76082
r' (972)234-3333 (817)220-8740
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c
TPEG SECURITIES, LLC
925 S. Kimball Avenue, Suite 100Southlake TX 76092
Ell Exemption Report
TPEG Securities, LLC (the Company) is a registered broker-dealer subject to Rule 17a-5 promulgated by
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 Company states the following:
I . The Company claimed an exemption from 17 C.F.R. §240.156-3 under the following provisions
of 17 C.F.R. §240.15c3-3 (k)(1).
2. The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3(k)(1)throughout the period January 1, 2015 to December 31, 2015 without exception.
TPEG Securities, LLC
1, William L. Burke, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is
0true and correct.
By:President
February 22, 2016February
t
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r.
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TPEG SECURITIES, LLC
INDEPENDENT ACCOUNTANT'S AGREED-UPON
PROCEDURES REPORT
YEAR ENDED DECEMBER 31, 2015
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r.[11L & K A 1 Hr LL~ Michael Vail, CPA Members:
Chris E. Knauth, CPA American Institute of CPAsCERTIFIED PUBLIC ACCOUNTANTS Charles T. Gregg, CPA Texas Society of CPAs-AUDIT, TAX AND ADVISORY: SERVICES •..
Don E. Graves, CPA
d Pamela C. Moore, CPA
Courtney N. Cooper, CPA
lJ
INDEPENDENT ACCOUNTANTS' AGREED-UPON PROCEDURES REPORTON SCHEDULE OF ASSESSMENT AND PAYMENTS (FORM SIPC-7)
BOARD OF DIRECTORSTPEG SECURITIES, LLCSOUTHLAKE, TEXAS
~I In accordance with Rule 17a-5(e)(4) under the Securities Exchange Act of 1934, we have performed theprocedures enumerated below with respect to the accompanying Schedule of Assessment and Payments(Form SIPC-7) to the Securities Investor Protection Corporation (SIPC) for the year ended December 31,2015, which were agreed to by TPEG SECURITIES, LLC, and the Securities and Exchange Commission(SEC), Financial Industry Regulatory Authority, Inc. (FINRA), and SIPC, solely to assist you and the otherspecified parties in evaluating TPEG SECURITIES, LLC's compliance with the applicable instructions ofForm SIPC-7. TPEG SECURITIES, LLC's management is responsible for TPEG SECURITIES, LLC'scompliance with those requirements. This agreed-upon procedures engagement was conducted in accordancewith attestation standards established by the Public Company Accounting Oversight Board (United States).The sufficiency of these procedures is solely the responsibility of those parties specified in this report.Consequently, we make no representation regarding the sufficiency of the procedures described below eitherfor the purpose for which this report has been requested or for any other purpose. The procedures weperformed and our findings are as follows:
1 Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement recordsP PY Pentries (check detail and accounts payable detail at December 31, 2015) noting no differences;
2), Compared the amounts reported on the audited financials, accompanying Form X-17A-5 for the year
ended December 31, 2015, as applicable, with the amounts reported in Form SIPC-7 for the year endedL December 31, 2015, noting no differences;
3) Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers (trialbalances detail, quarterly Focus reports), noting no differences;
4) Proved the arithmetical accuracy ofthe calculations reflected in Form SIPC-7 and in the related schedulesand working papers (trial balance detail and quarterly Focus reports) supporting the adjustments noting
no differences; and
5) Compared the amount of any overpayment applied to the current assessment with the Form SIPC-7 on
which it was originally computed, noting no differences (if applicable).i
1801 Gateway Blvd., Suite 212 www.vailknauth.com 323 East Highway 199 -P.O. Box 1859
Richardson, TX 75080 Springtown, TX 76082
(972)234-3333 (817)220-8700
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PAGE 2INDEPENDENT ACCOUNTANTS' AGREED-UPON PROCEDURES REPORT ONSCHEDULE OF ASSESSMENT AND PAYMENTS (FORM SLPC-7)
We were not engaged to, and did not conduct an examination, the objective of which would be the expressionof an opinion on compliance. Accordingly, we do not express such an opinion. Had we performed additionalprocedures, other matters might have come to our attention that would have been reported to you.
This report is intended solely for the information and use of the specified parties listed above and is notintended to be and should not be used by anyone other than these specified parties.
V0 + Kam. ~iVail & Knauth, LLPRichardson, Texas
February 22, 2016