Automatic support - Module 3
Call for Proposals EACEA/25/2012
Session 1213
DISTRIBUTION
Automatic support – Module 3
Reinvestment in Distribution Costs
SELECTED PROJECTS – MONITORING
F.A.Q. - Frequently Asked Questions
Call for Proposals EACEA/25/2012Session 1213
These FAQ apply to the Call for Proposals and sessions as indicated above.
* To check the session:
Title of the action: The session number are the first four numbers of the number in the title of the Action: 1213DI073139NL3176 – Title of film
* To check the Call for Proposals:
The Call for Proposals under which your Agreement has been issued is mentioned on the 1st page of your Agreement.
Frequently Asked QuestionsRelease Report
1. When do I have to submit the Release Report?
2. Do I have to send a poster along with the Release Report?
3. Which date is considered as the "first theatrical release"?
4. We organised an avant-première / a private screening for this film. Can this be considered as "first theatrical release" date?
5. The film was first screened in a film festival. Is this the first theatrical release date of the film?
Financial Statement
6. When is the Financial Statement due?
7. Where can I find the Financial Statement form?
8. Can I send the completed Excel file by e-mail?
9. What is the period of eligibility of costs?
10. How is the period of eligibility of costs calculated?
11. Where do I fill in the period of eligibility of costs?
12. What costs are eligible?
13. What are "other costs"?
14. Are "other costs" eligible?
15. We made "other costs" related to the distribution of the film, but they were not forecast at the time of the application. Can I include them in the Financial Statement?
16. The audit of the Financial Statement took place after the end of the eligibility period. Are these costs eligible?
17. Which exchange rate must I use?
18. The final budget is different from the forecast in the agreement. Do I have to send an explanation or a request for amendment in advance?
19. The final budget is different from the forecast in the agreement. Does this affect my MEDIA award?
20. When will I receive the pre-financing payment?
21. When and how can I request an extension of the release period and the period of eligibility of costs?
Checklist for beneficiary
Release Report
1.Whendo I have to submit the Release Report?
The Release Report is due within one month after the date of the first theatrical release of the film in the territory.It can be sent as soon as you have the release results of the first week of release, in order to fill in the requested information.
2. Do I have to send a poster along with the Release Report?
Yes, when sending the Release Report you have to include a poster and / or a selection of promotion / advertising material.3. Which date is considered as the "first theatrical release"?
Considered as "first theatrical release" of a film is the official release date, i.e. the date in which the film was theatrically released for commercial purposes in the territory.This date is considered as the actual release date of the film.The date of first theatrical release of the film must take place from the sending date of the application of the reinvestment project until 01/10/2015.
4. We organised an avant-première / a private screening for this film. Can this be considered as "first theatrical release" date?
No, avant – premières or special / private / press screenings cannot be considered as the first theatrical release of a film. See FAQ 3.5. The film was first screened in a film festival. Is this the first theatrical release date of the film?
No, as in the cases above, the screening during a film festival cannot be considered as the first theatrical release date of the film.Financial Statement
6. When is the Financial Statement due?
- For single Agreements:
E.g. : Effective date of first theatrical release of the film: 12/02/2015
=> Final Report due by (latest) : 12/10/2015
- Forconsolidated Agreements:
E.g. for a package of 4 films :
Effective date of theatrical release of film 1: 06/08/2014
Effective date of theatrical release of film 2: 14/05/2014
Effective date of theatrical release of film 3: 04/03/2015
Effective date of theatrical release of film 4: 11/02/2015
=> Final Report due by (latest) : 04/11/2015
7. Where can I find the Final Report form?
A sample of the forms for the Final Report and the Activity Report are available on the website of Creative Europe in the "Beneficiaries space".For reporting, please use the Excel file forms, sent to you by e-mail.
These forms already contain your Company name, the reference number, the PIC Code and original Title of the film.
The zones in red should be filled out; a warning sign will appear when not filled out. Fill them out, print them out and have them signed by the authorised signatory.
8. Can I send the completed Excel file by e-mail?
Yes, but first the completed Excel file has to be printed out and signed where necessary by the authorised signatory of the company and the external approved auditor.Then you should make a scan of the final -signed- documents (Financial Statement and Audit Certification), and send them by e-mail, including also the latest Royalty Statement.
There is no more obligation to send the original documents by post.
9. What is the period of eligibility of costs?
The period of eligibility of costs (or the "eligibility period") is the time-frame during which costs made for the distribution of the film are considered "eligible". This means that they must have been incurred during this period, in order to be acceptable.Accordingly, the Financial Statement must include only costs incurred during the eligibility period.
10. How is the period of eligibility of costs calculated?
The period of eligibility of costs starts 6 months before the earliest possible start date of the project, and ends 12 months after the latest possible release date=> Period of eligibility of costs: from 1/04/2013 until 01/10/2016
The Period of eligibility of costs is explicitly indicated in Art. I.2.2 of your Agreement.
11. Where do I fill in the period of eligibility of costs?
The period of eligibility is already filled out in the Certificate on the financial statements and underlying accounts. By signing the Audit Certificate, you confirm that all costs included in the Financial Statement are within this period.12. What costs are eligible?
You can find an explanation and an extensive list of eligible costs in the General Conditions n° II.19.1 of your Agreement.13. What are "other costs"?
As you can see in the Financial Statement form, there are four places where you can declare "other costs". These are:Sub-item 1.1.1.8: Other Advertising costs related to Publicity material
Sub-item 1.1.2.8: Other Advertising costs related to Publicity space
Sub-item 1.2.1.8: Other Promotion costs
Item 3.2.3: All other costs
These comprise costs which are not already listed specifically as items or sub-items in the budget form. This category cannot include costs that are considered normal operating costs of the company.
Concerning the eligibility of "other costs" see FAQ 12, 13 and 14.
14. Are "other costs" eligible?
In order for "other costs" to be eligible and thus accepted, they must fulfil certain conditions:1) They have to be proportional and relevant to the main heading.
2) They cannot be included in the already existing items / sub-items in the budget form.
3) They must have been included in the estimated budget annexed to the Agreement (applicable to item 3.2.3).
15. We made "other costs" related to the distribution of the film, but they were not forecast at the time of the application. Can I include them in the Financial Statement?
The budget and the Financial Statement is structured as follows (p3/3 of the Financial Statement):1. Heading
1.1 Sub-heading
1.1.1 Item
1.1.1.1 Sub-item
Where "other costs" constitute an item, a simple prior written approval of the Agency is sufficient. On the level of sub-item, no approval is necessary as long as there was a forecast cost on the item level. (See FAQ 13)
16. The audit of the Financial Statement took place after the end of the eligibility period. Are these costs eligible?
Yes, the costs related to the Audit Certification are eligible.17. Which exchange rate must I use?
For the conversion of actual costs into Euro you must use the exchange rate established by the European Commission that is applicable in the month in which you draft the Financial Report.Please use 4 decimal points.
You can find this exchange rate in the following website:
Please date and sign the financial report in the same month you draft it.
For the consolidated agreements, please fill in the exchange rate on the first page of the first film in the package. It will then be automatically applied to all films in the package.
18. The final budget is different from the forecast in the agreement. Do I have to send an explanation or a request for amendment in advance?
A variation of maximum 10% of the total of the eligible estimated budget per budget heading is allowed without prior request.This means that you may vary up to 10% of the total estimated costs in each budget heading individually (and irrespectively of the variation in the global budget, or between the various budget headings).
If you have underspending of more than 10% in a budget heading, you have to send an explanation along with the Financial Statement, explaining the reasons for e.g. reducing your budget and/or cancelling specific budget items.
Overspending of more than 10% will be rejected. Please note that the MEDIA award cannot be higher than the maximum amount foreseen in your agreement as in art. I.3, even if you have increased expenses. (see also FAQ 19)
Finally, if an amendment to the budget is necessary, any such request has to be sent to EACEA in good time before the expenditure is incurred, and at all events 1 month before the closing date of the action (please see General Conditions N°12 of your Agreement).
In any case please inform us as soon as you foresee an important variation from your estimated budget.
For the consolidated agreements, these budget variations do not apply to the individual films in the package, but only to the consolidated Financial Statement. For the individual films, you inform us of any major variations in the description on the first page of the respectiveActivity Report.
19. The final budget is different from the forecast in the agreement. Does this affect my MEDIA award?
The MEDIA award can never be higher than:a)the amount specified in your agreement (art. I.3), and
b)the percentage of the final eligible costs as this is specified in your agreement. In the Automatic scheme, Module 3, this can be 50% or 60%.
* This means that in case of overspending, you shall receive the maximum amount mentioned in your agreement, i.e. your award will not be higher because of increased expenses.
* In case of underspending, you shall receive the 50% or 60% of your final eligible costs, i.e. after the analysis of the Final report by EACEA.
Example:
Estimated budget: € 10.000
Forecast award: € 5.000 or 50% of the final eligible costs
=>
a) overspending:
Final budget (approved): € 12.000
=> Final MEDIA award: € 5.000 (= maximum amount)
b) underspending:
Final budget (approved): € 8.000
=> Final MEDIA award: € 4.000 (= 50% of the final eligible costs)
20. When will I receive the pre-financing payment?
There are different possibilities regarding the pre-financing payment:a) You receive the pre-financing payment 60% of the forecast awardafter the signature of your agreement by the last of the two parties, i.e. by EACEA.
b) You do not receive a pre-financing payment, but only a final payment once you have submitted the Release Report(s) andFinal report.
For the consolidated agreements, the second possibility means that the final payment can only take place after the submission of the Final Report and requested reports (Release Reports and Activity Reports) for all the films of the package.
To verify which condition your payments depend upon, please always check article I.4 of your agreement!
21. When and how can I request an extension of the release period and the period of eligibility of costs?
You should inform us as soon as you know that you cannot release the film within the release period stated in your Agreement under Art. I.2.2.Please send us as soon as possible and at the latest one month before the end of the eligibility period a written request, justifying the reasons for this extension. This request has to be signed by the authorized signatory of the company (see Art. 3.2 of the Permanent Guidelines).
After evaluation of your request and if accepted, a maximum extension of 6 additional months to the latest release date and eligible period will be given. EACEA will then issue an amendment (Rider) to the Agreement with the new dates of the release and eligibility period.
Example:
Art. I.2.2: The Action and the period of eligibility of costs shall begin on 01/04/2013 and shall end on 01/10/2016 (the "closing date of the Action").
The release date of the film contained in the Action should take place between 01/10/2013 and 01/10/2015.
=> Consequently:
- You have to send your request in writing at the latest by 01/09/2016
- The maximum new latest release date will be: 01/10/2015 + 6 months = 01/04/2016
- The new end date of the period of eligibility of costs will be: 01/10/2016 + 6 months = 01/04/2017
Checklist for beneficiary
Before sending the Financial Statement (FS), you can use this checklist to make sure that you filled in all necessary information:
1) I used the correct FS form, corresponding to the right session and Call for proposals. / 2) The FS is signed on all pages 1-4,
bottom-left by our authorised signatory / legal representative, and
bottom-right by our external chartered accountant / approved auditor. /
3) I filled in and signed the Activity Report(s). (only for consolidated agreements) /
4) In the Activity Reports, I entered a brief description of the Theatrical Release Campaign and detailed any major variations in a particular budget heading versus the original submitted budget for this film.(only for consolidated agreements) /
5) I filled in the date under "Financial statement of costs as of …" on p.1 (top left).
(This date must be either the date of your last invoice, or the end of the eligibility period.) /
6) I used the exchange rate of the same month in which I drafted and signed the FS, as provided for in the Commission's website. /
7) I filled in all required information in the FS, including:
- details of "other costs"
- final number of prints of film + trailers /
8) I filled in all items in the Financing plan, p.3 of FS, including:
- details of any "other public support" I received
- contribution financed by the beneficiary /
9) In the Financing plan, the contribution requested from MEDIA is
a) maximum 50% or 60% of the total submitted costs, AND
b) no bigger than the maximum amount indicated in the agreement /
10) The Certificate on the financial statements and underlying accounts (or "audit certificate"), upper part, is filled in, dated and signed by the authorised signatory of our company. /
11) The Certificate on the financial statements and underlying accounts (lower part) is dated, signed, and stamped by our external approved auditor. /
12) I included a cover letter with explanations for budget variations of more than 10% of the total estimated budget, per budget heading. (only for single agreements) /
13) I included the most recent Royalty Statement of the film(s), as sent to the Licensor! /
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