Regulations for Funding Allocation APULIA INTERNATIONAL FILM FUND. PUBLIC APPLICATION NOTICE 2012 Apulia Film Commission

Transcription

1 Regulations for Funding Allocation APULIA INTERNATIONAL FILM FUND PUBLIC APPLICATION NOTICE 2012 Apulia Film Commission Approved by the Board of Directors on

2 Introduction The Apulia Film Commission Foundation (AFC), set up under Regional Law 6/2004 art.7, is to allocate part of its annual resources for 2012 to foreign film productions or international audiovisual, film and TV productions with an executive Italian production company or with a minority Italian co-production company. This fund assigns direct financial support in the form of a free grant towards the production costs of audiovisual projects made in any media format and created for any distribution chain that are produced (partly or entirely) in Apulia. A study commissioned in 2011 and carried out by the Fondazione Rosselli research group on the economic impact of the audiovisual industry in Apulia showed that for every euro invested by the AFC Foundation, production companies subsequently spent an average of 6.3 euros over the four year period In accordance with a European Commission regulation passed on 26/9/2001, the total amount of grant available, taking into account all other forms of funding (including tax credit and tax shelter) may not exceed 50% of the total production budget. 1. Who May Apply Funding is available for European and non-european production companies with: - an executive Italian production company - a minority Italian co-production company presenting projects in the following categories: - feature-length fiction films; - TV movies; - TV series. Applications for funding are welcomed from companies whose sole or principal activity is that of film and/or audiovisual production, also in the form of temporary business associations or co-production companies as well as co-operative production companies and foundations. 2

3 2. Funding Availability and Selection and Allocation Procedures Grant allocation is subject to the availability of Film Fund resources at the time of application. The total endowment available for 2012 is 500,000 and each project may receive a maximum grant of 200,000. It should be noted that this fund is not accumulable with the Apulia National Film Fund, whereas applications may be made for Hospitality Funding from the AFC Foundation. Applications will be examined by the AFC Foundation Board of Directors whose final, indisputable decision will be made within thirty (30) days of receipt of applications. To apply for funding, production companies must contact the Apulia Film Commission Foundation to organise a project presentation meeting at the Foundation offices (in cases where it is impossible to reach the Foundation offices, a conference call or web presentation must be arranged) before the application presentation date. Public notice of the results of applications will be published on the website on the Apulia International Film Fund page. If an application is successful, the Apulia Film Commission will draw up a contractual agreement with the applicant in line with a Board resolution. Decisions made by the Board of Directors are final and irrevocable. Projects are only deemed admissible when they are presented by production companies which: - are in possession of a distribution contract (full length films) and / or broadcasting contract (TV films and series) from the country of origin of the majority production company; - have completed at least one international co-production and / or carried out at least one executive production for foreign (non-italian) films or TV projects. On demonstration of the above pre-requisites and taking into account available resources, the AFC Foundation will allocate funding on the basis of the following condition: - 15% of the production budget spent in Apulia (after VAT). As part of funding regulations, the applying production team and its beneficiaries are obliged to: a. include the brand of the Apulia Film Commission in the opening credits of the film (or alternatively on the first frame of the closing credits) as well as on all the film s 3

4 information, publicity and promotional documentation (press kits, etc.), with the wording produced with the support of the Apulia Film Commission and sending the Foundation a preview of the opening and closing credits in jpeg format before completing or duplicating the definitive version of the project; failure to comply will result in the withdrawal of the grant balance; b. allow the Apulia Film Commission the rights for the free use of completed and semiprocessed footage as well as production and backstage photography in regional locations for AFC use in any promotional advertising for the Apulia region; c. provide the AFC, at no additional charge, with five (5) DVD copies of the film and backstage footage (or promotional footage) and two (2) CD copies of production photography, granting rights for the AFC and Apulia Region to use these freely in regional and territorial promotion; d. adhere to current regulations regarding social security contributions, medical assistance and workplace insurance for technical and artistic staff hired, including temporary staff with clear reference to the payment of all legally required contributions; e. adhere to law no. 136 (passed on 13 August 2010), Extraordinary anti-mafia legislation and government authority for anti-mafia regulations (Official Gazzette no.196, 23 Aug 2010); f. supply punctual and accurate budget data (above and below the line) for expenditure in Apulia to allow for internal monitoring procedures. In particular, specific reference must be made to employment data and all expenditure carried out within the region; g. send by , before the start of production, the production order programme along with a complete list of cast and crew (highlighting Apulian personnel) and a list of locations to be used; during shooting any updated details must also be communicated. h. during production, communicate daily production schedules by ; i. organise a press conference in Apulia before the start of or during filming with the participation of national and international journalists and with the presence of the director and/or leading actors as well as representatives of the AFC Foundation; j. permit the presence of an AFC representative at any time during production; k. permit video recording or photography during production, to be carried out by an AFC representative for purely documentary purposes; 4

5 l. organise a preview of the film in Apulia or, in case of project participation in national or international film festivals, allow for the presence of an AFC representative at the film presentation press conference at the festival where it has been entered; m. send the funding application for film projects before work has started on shooting or production. Full length fiction films, TV films and TV series must be completed and delivered to the AFC Foundation in DVD format no more than 12 months after the decision to allocate the grant, extendable once only for a maximum period of 6 months; failure to comply will result in the withdrawal of the grant. The Apulia Film Commission will not consider projects which incite violence or encourage racism, political hatred, sexism or discrimination of any kind. 3. Allocation Procedures Funding is allocated upon receipt of complete financial statements and 5 DVD copies of the film (working versions are also acceptable but must include final version of credits with definitive position of AFC logo) as well as any other documentation stipulated in this document and in any additional, formally stipulated agreements. Due to possible modification or withdrawal under article 5, the balance invoice will be emitted by the Foundation only at the end of a complete financial report audit. The grant is exempt from VAT as it is allocated by a non-profit institution. The grant is subject to a 4% withholding tax under clause 28, section 2 of Italian Presidential Decree no.600 (29/9/73). This levy, paid by the AFC Foundation in the form of a withholding agent, is to be shown on the balance invoice which the production team must send to the AFC Foundation, after which a bank transfer will be paid for the final balance of the allocated grant. In accordance with current legislation governing payments made by public administrations, the AFC Foundation is legally obliged to carry out checks though the Equitalia system and examine any contract over 10,000 for outstanding fiscal burdens with regard to the Italian tax authorities. In case of non-compliance, any debts which production companies have incurred with the tax authorities will be automatically distrained by Equitalia and paid by the AFC in the name and on behalf of the production creditor. 4. Application Procedures All applications for funding must be compiled in accordance with the official application form (attached to this document). This must be signed and sent both on paper as well as 5

6 on CD-ROM. Failure to comply with these conditions will result in films being returned without further consideration. Applications must also include: - a distribution contract (full length films) and / or broadcasting contract (TV films and series) from the country of origin of the majority production company; - a presentation of the Italian executive production company or co-production company and the foreign production company (a company profile of all parties involved in production); - executive production or minority co-production contract; - detailed estimated budget of general expenses, including actors and writers fees (above the line costs) and preparation and production / post-production fees (below the line costs), only for expenses to be incurred in Apulia; - certification of enrolment in the Official Register of Companies; - copy of the Certificate of Incorporation or Foundation Deed and copy of the statute, where required by law; - DVDs of most recent projects of production company and film director; - story, synopsis and script both on paper and on CD-rom; - filmography of the writer(s); - list of artistic and technical staff specifying local professionals already selected or to be appointed (except for extras and special appearances); - photocopy of ID document and tax code of the Italian production company s legal representative; - receipt of bank draft for 121 (including VAT) as reimbursement for AFC secretarial duties. An invoice will be issued for this payment. Applications should be sent by registered post or courier to: Cineporto c/o Fiera del Levante Lungomare Starita, Bari, Italy Application envelopes should clearly state the following text: 6

7 For the attention of Apulia Film Commission application for Apulia International Film Fund grant. A bank draft for 121 should be made out as follows: San Paolo Banco di Napoli Ag. 2 Bari IBAN: IT 19 D Reason for payment: Reimbursement of expenses for application for Apulia International Film Fund. 5. Financial Statements and Production Company Obligations In order to obtain payment and avoid incurring legal and administrative sanctions, beneficiaries must guarantee adherence to the following conditions: - to comply with law no. 136 (passed on 13 August 2010), Extraordinary anti-mafia legislation and government authority for anti-mafia regulations (Official Gazzette no.196, 23 Aug 2010); - to compile and provide an itemised financial breakdown of the project upon issue of the contract, to be submitted both in electronic format and on paper and verified by a certified accountant or auditing company with clear reference to expenditure incurred in Apulia in order to validate the percentage declared in the grant application; - to submit certified copies of invoices, payslips and all other documentation relating to all expenses incurred in Apulia, after VAT, with a final total that is equal to that declared in the grant application. In cases where film projects also receive hospitality funding from the Foundation, invoices may only be submitted for one of the two grants. During the phase of checking allowable expenses, if the AFC notes that declared expenses are lower than those shown in the estimated budget included in the funding application, proceedings will be carried out to proportionally reduce the grant or to annul the grant if submitted documentation is not admissible. 6. Allowable Expenses Expenses after VAT are only permitted when incurred in the following circumstances: - Production management, acting personnel, production, direction, technical staff, skilled manual workers, artistic personnel used in the production phase of the project; 7

8 - wardrobe, set design, studio stages and set building, real-life interior and exterior scenes, technical equipment or vehicle hire, transport, film, film processing, editing, insurance, general rental, catering, hotels, production services. 7. Annulment of grant and place of jurisdiction Grants will not be awarded where there is evidence of forgery of documentation or financial accounts or if false or deliberately imprecise statements have been made. Projects which are not completed will likewise result in the non-payment of any outstanding balance. It is agreed that the place of jurisdiction for all disputes arising out of, or in connection with, these regulations will be exclusively that of Bari. On signing the application form, applicants agree to accept all conditions set out under the regulations in this document. Bari, 16 May 2012 Ref. no. 2113/U/2012 8