Procedure Manual for the 2017 Calls

Procedure Manual for the 2017 Calls Submission Dates: Call 1: 3 March 2017 at 12 noon Call 2: 8 September 2017 at 12 noon Call 3: 1 December 2017 at 12 noon

1 Introduction 3 2 Objectives 4 3 The Audiovisual Work 5 3.1 Definition and characteristics of the audiovisual work 5 3.2 What projects do not qualify for support? 5 4 The Applicant 6 4.1 Who can apply for support? 6 4.2 What is meant by no direct or indirect link with a broadcaster? 6 5 Application Procedure 8 5.1 How and when do you submit your application? 8 5.2 What are the attachments for the application form? 9 6 Selection 12 6.1 Admissibility of the applicant 12 6.2 Admissibility of the application 12 6.3 Cultural test 13 6.4 Assessment criteria 14 6.5 Ranking of the applications 15 6.6 Award of support 15 7 The Project s Budget 16 7.1 What is meant by qualifying expenditure? 16 7.2 What expenditure does not qualify for Screen Flanders support? 17 7.3 What is meant by Above and Below-The-Line expenses? 18 7.4 Several capped items of expenditure 18 7.5 Funding of the project 18 8 The Amount of Support and Duration of the Support Term 20 8.1 The amount of support 20 8.2 Start and duration of the support term 20 9 Payment of the Support 21 10 Repayment of the Support 23 11 Legal Framework 24 12 Information and Contacts 24 Screen Flanders Applications Procedure manual January 2017 2

1 Introduction Screen Flanders was launched in April 2012 by the government of Flanders as a new economic support measure for audiovisual works. The support measure is set to increase Flanders appeal to foreign productions and to improve its competitive position relative to the other regions. Screen Flanders offers additional financial support for productions that spend part of their budget specifically in the Flanders Region. The general principle is as follows: funding can be provided on the basis of a support application, provided the money entrusted to the producers is spent in the Flanders Region (every Euro entrusted to a producer must yield at least 1 Euro of audiovisual expenditure in the Region). The funding takes the form of repayable advances on the net receipts. The maximum support grant comes to 400,000 Euros. In return the production must spend a minimum of 250,000 Euros by way of qualifying expenditure in the Flanders Region. Periodical calls are made, each with a predetermined support envelope. The jury assesses admissible files according to set assessment criteria and recommends a decision to the Minister. The jury can be made up of government officials and external parties. Jury members are appointed by the Minister for Economy in consultation with the Minister for Cultural Affairs. This procedure manual contains information specific to the 2017 calls, along with information on how to submit a support application to Screen Flanders. Therefore, it is extremely important that you read this manual fully, as well as the Government of Flanders Decree of 9 November 2012 and its implementing orders, before submitting your application for financial support. When assessing applications, we attach a great deal of importance to the correct composition of the application file. Applications must also be complete and submitted in time in accordance with the conditions of admissibility and the required attachments. Only attachments submitted before 12 noon on the final submission date can be included in your application. Applications with missing attachments can be declared inadmissible. In case of any application related questions or problems, please get in touch with our team members listed on page 24 of this manual. Screen Flanders Applications Procedure manual January 2017 3

2 Objectives The Government of Flanders Decree of 9 November 2012 on the award of support for audiovisual works of feature-length type fiction, documentary or animation film, or animation series, now makes it possible to support audiovisual production companies in their production of an audiovisual work. Through this support the Government of Flanders seeks to augment Flanders appeal to domestic and foreign productions with an economic support measure with a cultural perspective, for the production of audiovisual works and for the audiovisual sector. This support measure provides added financial support for productions that spend part of their budget in Flanders. With the support the Government of Flanders hopes to encourage an increase in the number of productions in Flanders and in the audiovisual sector. Indirectly, the measure is also designed to improve the position of Flemish producers in international co-productions, which could also lead to better international funding of Flemish projects. The instrument will also serve to increase film consumption in Flanders. A greater number of homegrown productions means more recognisable films in our theatres and more people going out to watch films. This is a cultural impulse that might also pay a cultural dividend. Additionally, expenditure can quickly lead to an exponential development of the sector. Spending more money here keeps the talent in Flanders, attracts investors and foreign companies in the sector, makes young people more interested in studying subjects relevant to the sector and generates new opportunities to improve our audiovisual courses. Needless to say, the sector has an economic dimension through its contribution to employment, creativity and innovation and, therefore, generates growth, economic development and welfare in the knowledge economy. The two dimensions are connected. The cultural dimension is best served by an economically healthy and sustainable sector. Economic sustainability particularly in a small region like Flanders goes hand-in-hand with, and is fuelled by, audiovisual products of high quality. Screen Flanders Applications Procedure manual January 2017 4

3 The Audiovisual Work 3.1 Definition and characteristics of the audiovisual work In the framework of the Government of Flanders Decree of 9 November 2012, an audiovisual work is defined as follows: feature-length film, i.e. a feature-length fiction, documentary or animation film of at least sixty minutes running time, or an animation series, which is thought to have the potential to enrich the cultural patrimony of Flanders. To qualify for support the audiovisual work must satisfy the following two characteristics: The work must enrich the cultural patrimony of Flanders. The cultural test can be used to assess whether or not the work enriches the cultural patrimony of Flanders. Point 6.3 of this procedure manual specifies 10 cultural criteria. To qualify for support, at least four of these criteria must be satisfied. It must be a fiction, documentary or animation film of at least 60 minutes running time or an animation series. - Fiction film: an audiovisual, largely live action creation involving mostly fictional characters and events. The film can be spread over several episodes, but must tell an ongoing story. If the film is spread over several episodes this must involve international co-productions, in which the total Belgian share stated in the coproduction contract is less than 50%. The participating producers must not be linked enterprises in the sense of the European definition of the SME. - Documentary film: a non-fiction film, which presents a treatment or interpretation of reality, from the personal involvement of the maker, with intrinsic long-term value. Excluded therefore are films which are designed solely to provide information or are merely descriptive, such as corporate videos, educational films, film reports, purely academic documentaries, contributions to the news or current affairs programmes, etc. The film can be spread over several episodes, but must tell an ongoing story. - Animation film: an audiovisual creation which in its production process uses, for the most part, single frame techniques, ranging from the filming of puppets, objects and/or drawings (e.g. animated cartoons) to more digital, computer-animated techniques. - Animation series: an audiovisual creation in the form of a series, which in its production process uses, for the most part, single frame techniques, ranging from the filming of puppets, objects and/or drawings (e.g. animated cartoons) to more digital, computeranimated techniques. Animation series must consist of at least three episodes and have a minimum total broadcast time of 60 minutes for the series as a whole. There are a number of other criteria that need to be satisfied by the work which are important when it comes to assessing the admissibility of the application. These characteristics are covered later in this procedure manual. 3.2 What projects do not qualify for support? Audiovisual works do not qualify for support if they are: works that incite hatred or racial hatred works that are not consistent with public order or good conduct advertising and information, entertainment, news or sports programmes Screen Flanders Applications Procedure manual January 2017 5

4 The Applicant 4.1 Who can apply for support? Article 1, 3 of the Government of Flanders Decree of 9 November 2012 on the award of support for audiovisual works of the type feature-length fiction, documentary or animation film, or animation series, describes the beneficiary as follows: an audiovisual production company that, at the time the support is paid, is based in Belgium and satisfies the definition of a company, referred to in article 3 of the Decree of 16 March 2012, and modified by the Government of Flanders Decree of 20 March 2015, and that has no direct or indirect connection with a broadcaster of the type referred to in article 2, 49, of the Decree of 27 March 2009 on Radio and Television Broadcasting. By broadcaster is meant: the natural person or the legal person who bears editorial responsibility for choosing the content of the broadcasting service and determines how it will be organised, as set out in article 2, 25, 2, 26 and 2, 27, of the Decree of 27 March 2009 on Radio and Television broadcasting The application can be submitted by a production company that satisfies the following three criteria: It is an audiovisual production company. It has a registered office in Belgium at the time the support is awarded. It satisfies the definition of a company, referred to in article 3 of the Decree of 16 March 2012 and modified by the Government of Flanders Decree of 20 March 2015. This means natural persons who work as businessmen or work in self-employment, trading companies with legal personalities under private law, civil companies set up as trading companies under private law, and foreign companies with similar articles of association. It has no direct or indirect link with a broadcaster of the type referred to in article 2, 49, of the decree of 27 March 2009 on Radio and Television Broadcasting. (For more information see 4.2) Naturally, the knowledge and experience of the production company and the people and resources deployed there, as well as the theme, affect the quality of the project. These aspects are taken into consideration in the assessment (see selection). Screen Flanders works on the general principle that, on the basis of a support application, funding can be given on the condition that the money entrusted to the producers is spent in the Flanders Region. The expenditure (see 7.1) must take place in the Flanders Region. Every Euro entrusted to a producer must yield at least 1 Euro in audiovisual expenditure in the Flanders Region. 4.2 What is meant by no direct or indirect link with a broadcaster? Article 2, 49 of the Flemish Decree on Radio and Television Broadcasting, defines an independent producer as follows: The producer a) whose legal personality is separate from that of a broadcasting organisation; b) who neither directly nor indirectly owns more than 15 percent of the capital of a Flemish broadcasting organisation; c) no more than 15% of whose capital is in the hands of a company that possesses, directly or indirectly, more than 15 percent of the capital of a Flemish broadcasting organisation. Screen Flanders Applications Procedure manual January 2017 6

By broadcaster is meant: The natural person or the legal person who bears editorial responsibility for choosing the content of the broadcasting service and determines how it will be organised, as set out in articles 2, 25, 2, 26 and 2, 27, of the Decree of 27 March 2009 on Radio and Television broadcasting. Articles 2, 25,2,26 and 2,27 of the Decree of 27 March 2009 on Radio and Television Broadcasting says the following: 25 Broadcasting activity: Any activity that consists in the provision of moving images, with or without sound, or of a series of noises or sounds intended for the general public or a part thereof by means of electronic communication networks. Broadcasting activity is also referred to as Radio and Television Broadcasting. 26 Broadcasting service: a) a service of the type referred to in articles 49 and 50 of the Treaty Establishing the European Community, which falls under the editorial responsibility of the service provider, with the main aim of providing the general population with audiovisual or auditory programmes by way of information, entertainment, education or with a cultural bias, via electronic communication networks; and/or b) commercial communication. 27 Broadcasting organisation: The natural person or legal person who bears editorial responsibility for choosing the content of the broadcasting service and decides how it will be organised. Screen Flanders Applications Procedure manual January 2017 7

5 Application Procedure Applications can only be made in response to a call and must be submitted within a given period of time. The complete application file (consisting of an application form and ALL attachments) submitted in relation to this call must be submitted before 12 noon on the day of the final submission date. The submission date is the date and time stipulated on the confirmation letter. More information on the application procedure is provided below. 5.1 How and when do you submit your application? You may submit an application file, which comprises the specific application form and all of the required attachments. These attachments are explained in greater detail in the next point. You must use the application form and the Excel Project Budget template to give a summary of expenditure and funding. When completing these documents please give sufficient attention to the notes, which can be found under an extra tab in each document. Please also read with care the guidelines in the right-hand margin of the application form. Support applications submitted without the compulsory application form are inadmissible and will not qualify for support. The full application file must be sent to Agentschap Innoveren & Ondernemen, Afdeling Bedrijfs- en Omgevingssteun, Koning Albert II-laan 35 bus 12, 1030 Brussels: - Two paper copies of the full application file (preferably printed recto/verso) containing all the attachments (as stated in the final question of the application form and point 5.2. below), bound or stapled. Only the two paper copies of the script must be added separately to the application file. Loose leaf documents and classification folders will not be accepted. - Two digital copies of the full application file. The application form and Excel Project Budget template to give a summary of expenditure and funding, must remain in the Excel format; the other documents may be converted to PDF. All files are to be supplied on two separate, identical non-rewritable electronic storage devices (CD-Rom, DVD, Windows-formatted USB stick, etc.). File names must make reference to the title of your project and the index numbers of the attachments as stated in the final question of the application form. The script needs to be added as a separate PDF. - Two copies of the screening material (if screening material is necessary) The electronic and paper version of the application form, and the required attachments must be in the possession of Agentschap Innoveren & Ondernemen by 12 noon on the final date of submission of the call. The submission date is the date and time given on the letter of confirmation. When submitting the application please abide by the rules set out in this procedure manual. The application needs to be delivered to the above-mentioned address, on the 14th floor (Mon-Fri during business hours 9am 5pm). Make sure to get a receipt. In case you don t deliver your application file in person, a confirmation note will be sent to you by mail. On the final day of the submission deadline a member of the Agentschap Innoveren & Ondernemen (Flanders Innovation & Entrepreneurship) team will be present at the reception desk on the ground floor till 12 noon for the reception of applications. The application form, the Excel template and the Statement on Honour are available for download, as is this procedure manual, from the website www.screenflanders.be or may be ordered via screenflanders@vlaanderen.be. It is important to complete the application form fully and accurately and add all the required attachments. Application forms that have not been completed fully or accurately or that are missing Screen Flanders Applications Procedure manual January 2017 8

attachments may be declared inadmissible. Please do not add any additional tabs or actions to the Excel templates. The application must give a full picture of the project in question. Application forms and the information and attachments accompanying these must be written in Dutch or translated into Dutch. More particularly synopses, director s, producer s and author s statements and character descriptions must be submitted in Dutch. Scripts may be submitted in Dutch (preferably), French or English. Articles of association, combined resumés and filmographies, contracts and documents relating to the funding of the project may be submitted in Dutch, French or English. 5.2 What are the attachments for the application form? The attachments are an integral part of the application file. Contracts and agreements included as attachments to the application file are considered invalid unless dated and signed by all the parties concerned. Attachments to these contracts and agreements also need to be enclosed. The required attachments are described in the final question on the application form and need to make reference of the index numbers stated in this final question. NR. ATTACHMENT REQUIRED OPTIONAL 1. The dated and signed Statement on Honour X 2. A synopsis (+/- 1 A4 page = minimum 400 words long) in Dutch X 3. The full project budget presented in the Excel template, which can be found at www.screenflanders.com. X This project budget consist of two parts: The finance plan and a summary of expenditure along with a further breakdown of the expenditure headings. Both the summary of expenses and the breakdown of headings need to be entered into the Excel template. 4. A statement from the producer as to choice of project, approach to production and funding, placement in the market and impact of the project on the Flanders Region. X This statement must contain at least the following information on the audiovisual work: impact on the (Flemish) production company impact on the Flemish audiovisual sector impact on the film crew impact on the Flemish general and technical service providers impact on Flanders as an audiovisual and film region and as a region in general with regard to projects already funded by the Flanders Audiovisual Fund: the impact and added value of additional support on the basis of this application 5. A statement from the author or scriptwriter as to the choice of subject, chosen approach or perspective, form, structure, style and visual approach of the story. 6. A statement from the director as to the choice of subject, style, structure and visual approach. 7. Description of the audiovisual work or script (scripts may be submitted in Dutch (preferably), French or English). The script needs to be submitted as a separate file. X X X Screen Flanders Applications Procedure manual January 2017 9

The description of the project depends on the genre of the audiovisual work: Animation: a complete written script, beginnings of a storyboard, design of characters, decor, mood boards and a description of the techniques used Documentary: a detailed account of content, visual design and structure and, if possible, a detailed script Fiction: a complete written script 8. Character descriptions, insofar as these apply. X* 9. A copy of coproduction contracts (including attachments to these X contracts). 10. A copy of the agreed distribution guarantees. X 11. Where an adaptation is concerned: enclose with the application X* proof that an option has been acquired on the rights, along with a (one) copy of the original work (book, play). 12. Combined resumés and filmographies for the director, scriptwriter, X producer, production designer, chief animator and key cast, where applicable. 13. In the case of initial application and in the event of a change: the X articles of association of the production company applying for support. 14. Contracts relating to copyrights and author performances (director and scriptwriter). X 15. Advance agreements with parties involved X 16. Funding contracts concluded. Documentary evidence of each amount added to the funding overview as confirmed must be enclosed with the application file. Only dated and signed documents citing the project are considered valid. X If these documents aren t written in Dutch, French or English, a Dutch translation of the most important items stated in these documents needs to be added. 17. Documents related to funding still under negotiation. X 18. Documents related to distribution and exhibition negotiations. X 19. A numerical estimation of the international sales and estimated X return for the production company 20 An overview of the support from Wallimage or Screen Brussels needs to be filled out on the template form that can be downloaded from the screenflanders.com website. This is required even at application stage, where the support is yet to be confirmed. X* 21. Recoupment statement (which can be found on the website) signed by the applicant as well as the main producer (where they differ). X * if applicable ALL the following attachments are an absolute REQUIREMENT, with the exception of: Pre-agreements signed by the parties involved, but these may be an asset for your application file. Documents related to funding, which has not yet been finalised. Only documents related to confirmed funding are considered an absolute requirement. Documents related to distribution and exhibition negotiations. The articles of association for the production company, if these were provided at an earlier date. Screen Flanders Applications Procedure manual January 2017 10

Applications submitted in relation to a specific call must be submitted before 12 o clock (noon) on the final submission date of this call. No changes can be made to submitted project proposals and no further attachments can be added to the file after 12 noon on the final submission date. Project proposals submitted after the call closing date are inadmissible and will not qualify for support. Screen Flanders Applications Procedure manual January 2017 11

6 Selection Applications are first checked to ensure that they comply with the admissibility criteria and formal requirements. The admissibility check does not involve an assessment of the work. It is merely a check to ensure that the conditions of participation have been fulfilled. Projects found to be inadmissible are withdrawn from the selection procedure at this point. Admissible project proposals are then given a score by the jury, based on the assessment criteria. Applications are then ranked in descending order in line with these scores. The various aspects of the selection procedure and criteria are described below in greater detail. 6.1 Admissibility of the applicant The beneficiary is an audiovisual production company which, at the time the support is paid, is based in Belgium and satisfies the definition of a company, referred to in article 3 of the Decree of 16 March 2012, and modified by the Government of Flanders Decree of 20 March 2015, and that has no direct or indirect connection with a broadcaster of the type referred to in article 2, 49, of the Decree of 27 March 2009 on Radio and Television Broadcasting. An explanation of this definition is given in point 4.2. Other general conditions of admissibility: The beneficiary may not, on the application submission date, have an outstanding debt with the National Office of Social Security or a procedure pending under European or National law, through which any support awarded might be reclaimed. Support cannot be awarded to beneficiaries over whom an administrative authority, of the type referred to in article 14 of the coordinated laws on the Council of State, has a dominant influence. There are grounds for assuming a dominant influence if 50% or more of the beneficiary s capital or voting rights lie directly in the hands of the administrative authority. 6.2 Admissibility of the application The audiovisual work must be a feature-length film, i.e. a feature-length fiction, documentary or animation film of at least sixty minutes running time, or an animation series, which is seen as having the potential to enrich the cultural patrimony of Flanders. No project may be submitted more than twice. An application is considered submitted once it has been sent to Agentschap Innoveren & Ondernemen in the context of an open call and has been registered under a file number. An application that was granted support within the framework of a previous call, can t be resubmitted a second time. Once received by het Agentschap Innoveren & Ondernemen [Flanders Innovation & Entrepreneurship] the application is assessed in line with the following criteria. Applications are inadmissible if any one of the criteria is not satisfied. No request will be made for omitted documents and no additional documents will be accepted after 12 noon on the final submission date. To be in time the full application, both digital and paper, must be submitted by 12 noon on the final submission date. The digital carrier must contain all the required documents and attachments. Be sure to save the project budget and application in the Excel format and to add them to the rest of the digital documents. Was the application submitted using the designated application form, and was the Statement on Honour signed? Is the application form complete and correct? Attention!: Application forms in which questions are left unanswered are considered incomplete and therefore inadmissible. A motivation is Screen Flanders Applications Procedure manual January 2017 12

required in case a question is left unanswered. The application form must be completed in full in the Dutch language. Have all the required attachments been added to the application file? (see for more details 5.2) Have all the required contracts and agreements (including their attachments) been signed by all the parties? An unsigned contract is of no value to Screen Flanders. At the time of the application had the producers already secured more than 50% of the funding for the overall production budget? This 50% must be fully supported in the application by the necessary signed documentary evidence. The application will be classified inadmissible if the minimum of 50% financing is not secured due to missing or unsigned documentary evidence. For additional information on the subject see 7.5. Have at least 4 in 10 of the cultural criteria been satisfied, and is this a true reflection of reality? Cultural criteria that require an explanation will be accepted only if the explanation is given and is a true reflection of reality. Does the expenditure in question come to at least 250,000 Euros (excluding VAT)? Expenses are eligible only when invoiced to and paid by the beneficiary within the support term. To qualify for support the expenses must be invoiced from the Flanders Region. The expenses must have been made with the aim of completing the audiovisual work in question and must imply a structural dynamic for the Flemish audiovisual sector. Invoices qualify only if they have been issued by a VAT paying company that has its operating headquarters in the Flanders Region. Expenses that qualify for support are exclusive of VAT and must be both realistic and market conformant. A detailed explanation of qualifying expenditure can be found in point 7 of the present procedure manual. The following audiovisual works do not qualify for support: 1 works that incite hatred or racial hatred 2 works that are not consistent with public order or good conduct 3 advertising and information, entertainment, news or sports programmes 6.3 Cultural test The audiovisual work must also satisfy at least four of the following conditions: The script is set for the most part in Flanders, in Belgium, in another member State of the European Economic Area or in a member State of the European Free Trade Association The director or scriptwriter lives in Flanders, in Belgium, in another member State of the European Economic Area or in a member State of the European Free Trade Association One of the lead roles or three of the supporting roles has/have a strong link with Belgian culture At least one of the main characters has a strong link with Belgian culture The original script is largely written in, and the main characters express themselves in, one of the official languages or regional languages of Belgium The script is an adaptation of an original literary work or is inspired by another creation which already enjoys cultural recognition The audiovisual work has as its main theme art or different artists The audiovisual work is mostly about historical people or events The audiovisual work largely addresses social themes which are of relevance to Belgium or another member State of the European Economic Area or the European Free Trade Association, and have a current, cultural, social or political aspect The audiovisual work contributes to a revaluation of the Belgian or European audiovisual heritage On the application form the applicant must state which of the above conditions are satisfied. If more than four criteria are satisfied, they may all be listed. A check will be made to ensure that the conditions are satisfied. Should it transpire that the audiovisual work does not satisfy one or more of the conditions identified, the condition(s) may be struck from the list. Criteria on which the application Screen Flanders Applications Procedure manual January 2017 13

form requests further information will, of course, only be considered if the information is present and gives a true reflection of reality. 6.4 Assessment criteria All admissible support applications are assessed by a jury of economic and cultural experts. Following the admissibility check and formal requirements check and before the applications are judged, support applicants may be invited to present their support application and audiovisual work to the jury orally. This will give the jury the most comprehensive view of the support application and audiovisual work and may serve to clear up any ambiguities. Support applications may not however be amended after the presentation. Admissible support applications will be assessed according to the following qualitative and quantitative criteria: The social and cultural added value of the audiovisual work in terms of the quality and attractiveness of the script The actors involved in the audiovisual work: a) the professionalism and track record of the applicant b) the quality and attractiveness of the casting and the director Efficiency and output: a) the commercial strengths of the coproduction contract b) the agreed distribution guarantees (included in the finance plan) c) the efficiency with which resources are used d) the feasibility of the audiovisual work s production given the available resources e) the quality of the distributors and pre-sold territories f) the free territories (being the territories that generate income in the event of a sale) g) the chances of a financial return and the repayment capacity Effectiveness and outcome: a) the amount of eligible expenditure in the Flanders Region or the degree of leverage created b) the impact of the audiovisual work on the (Flemish) production company c) the impact on the Flemish audiovisual sector d) the impact on the film crew e) the impact on the Flemish technical service providers f) the impact on Flanders as an audiovisual and film region, and as a region in general g) for projects already supported by the VAF: the impact and added value of added support based on this decree The maximum overall score for an application assessment is 100 points, spread over the following criteria: Category of assessment criteria: the social and cultural added value of the audiovisual work in terms of the quality and attractiveness of the script Score 10 points the actors involved in the audiovisual work 10 points efficiency and output 30 points effectiveness and outcome 50 points Screen Flanders Applications Procedure manual January 2017 14

6.5 Ranking of the applications Applications are ranked in descending order of overall score. To appear in the ranking, an application must score no fewer than 60 points. The jury is authorised, with a view to optimising the use of government resources and policy objectives and ensuring the desired structuring effect of resources in the audiovisual sector, to use its expertise to adapt elements relating to both the support and the qualifying expenses stated in the proposal, or reduce or assess them on the basis of that adapted proposal. The support envelope is shared among the best ranked submissions, in descending order, until exhausted. The companies in question are favourably ranked in this case. If the balance of the support envelope is insufficient to support the next ranked support application in full, no further support will be awarded within this balance. 6.6 Award of support The Administrator-General of Agentschap Innoveren & Ondernemen (Flanders Innovation & Entrepreneurship) decides about the award of support and sets out the conditions according to which the support is awarded. This decision mentions at a minimum: 1 the beneficiary 2 the conditions of payment 3 supervision and control 4 the conditions of reporting Screen Flanders Applications Procedure manual January 2017 15

7 The Project s Budget Separate, transparent accounts must be kept in relation to the project. A detailed plan of all the expenditure and total funding must be enclosed as of the application stage. On the basis of this plan, the expenditure that qualifies for funding can be determined. To help draft the project budget and the summary of expenditure and funding included within it, an Excel template is available from the website. This Excel template is mandatory and is an integral part of the application. Summary of expenditure and further explanation of the expenditure headings Both the summary of expenses and the breakdown of headings need to be entered into the Excel template. The finance plan The finance plan must be created entirely from the Excel template. The tab for revenue from the Flanders Region, and the tab for revenue from outside the Flanders Region, must be completed in full. The project budget must show a detailed and realistic estimation of all income and expenditure, whether or not this expenditure qualifies for support. The finance plan total must be equivalent to the summary of expenditure total. When listing expenses no account need be taken of other support measures, such as VAF support. You are required to list in the budget all expenses, including those already covered by other support measures. There is a column under the detail expenses tab, in which to give the names of the firms or employees that will benefit from this item of expenditure. It will, of course, be necessary for total funding (Flemish and non-flemish) to equal total expenditure (eligible and not eligible). These amounts must be given at the top of the list under the notes tab in the Project Budget. The same amounts must also be quoted in the application form. Important point Any applicant who wishes to amend his budget after his application file has been approved must request this beforehand in writing from Agentschap Innoveren & Ondernemen, at the latest before the project reaches an end. 7.1 What is meant by qualifying expenditure? There is a limit to the expenses that will be taken into account when it comes to calculating the support. The expenses must be invoiced from the Flanders Region. The expenses must have been made with the aim of completing the audiovisual work in question and must imply a structural dynamic for the Flemish audiovisual sector. The expenses qualifying for support are excluding VAT and may not have been invoiced prior to the application. Expenses only qualify if they are realistic and market conformant and if they are invoiced to the beneficiary in person. Invoices qualify only if they have been issued by a VAT paying company that has its operational headquarters in the Flanders Region. Invoices must always satisfy the legal requirements, give the necessary level of detail and mention the title of the project. For more information about what makes an invoice acceptable please see the Screen Flanders guidelines. We strongly recommend that you read these guidelines before writing out your first invoice. The beneficiary must be able to prove a minimum of 250,000 Euros (excluding VAT) of expenditure qualifying for support. Screen Flanders Applications Procedure manual January 2017 16

The Minister may take into account all expenditure on material or intellectual goods and services relating to the audiovisual sector, such as expenditure on cast, crew and post-production (sound, lab, and so on). Non-specific audiovisual costs and financial spending will not qualify for support. The applicant must keep separate, transparent accounts for auditing purposes. The www.screenflanders.be website gives access to the Screen Flanders online Industry Database. This gives an overview of the professional audiovisual expertise available in Flanders. The database can be searched by keyword and category. The Contacts listing tool allows you to make a quick and simple selection of companies and professionals and send it to your own email address. It is also a handy tool to help you complete your Screen Flanders application file. The services of companies listed in the Industry Database aren t automatically eligible for Screen Flanders support. They are only considered eligible if all the above-mentioned conditions are met. 7.2 What expenditure does not qualify for Screen Flanders support? Expenditure definitely excluded from support: Expenses that were not invoiced in the Flanders Region Expenditure invoiced or paid before the application was registered as submitted Expenses supported by VAF or other support measures (with the exception of the Belgian Federal Tax Shelter). Participations and deferred payments. These can be included as funding arrangements in the funding plan. Expenses, which do not imply a structural dynamic for the Flemish audiovisual sector. Below we give a non-exhaustive list of specific expenditure, which does not qualify for support: Computer equipment; unless the costs are incurred explicitly in the context of special effects and computer graphic animation in and on behalf of the project itself, but still pro rata to the method of depreciation applied to an investment in the form of a purchase (such as motion control, computer controlled SFX, camera, lighting, grip equipment in truck, portable generator in truck). Production office expenses, post, landline and mobile telephone, couriers, other administrative expenses and office equipment Transport expenses, such as travel costs for the crew, hire of production vehicles, purchase of fuel, taxi fares, lorries, etc., for production and post-production alike Hotel expenses for production and post-production alike Restaurant expenses for production and post-production alike Expenses for the post-production office Promotion expenses and web space expenses Financial expenditure Legal expenses Expenses for insurance, such as film insurance, public liability, etc. Various unforeseen costs and overheads Consumables relating to catering on the set. Expenses related to consumable goods for on set catering. (The catering invoices should be subdivided in consumable goods and catering services. The catering services are eligible for Screen Flanders support). The expenditure must be spread over 3 columns: Eligible for Screen Flanders These are expenses incurred in the Flemish Region and eligible for Screen Flanders. Flemish Community, not eligible for Screen Flanders These are expenses that are not eligible for Screen Flanders but that were incurred in the Flemish Community, e.g. expenses already billed and expenses that qualify for VAF support. Screen Flanders Applications Procedure manual January 2017 17

Not Flemish not eligible These expenses were not incurred in Flanders and so most certainly do not qualify for Screen Flanders or VAF support. They include expenses by foreign parties and expenses in the Frenchspeaking Community or Walloon Region. 7.3 What is meant by Above and Below-The-Line expenses? The summary of expenditure breaks the expenses down into above-the-line and below-the-line expenses. Above-the-line expenses are those which are fixed prior to the start of production. They are not performance-related in any way. Therefore, no margin needs to be factored into these expenses for unforeseen circumstances. Below-the-line expenses are those which vary in accordance with actual performance (number of shooting days, number of editing days, etc.). A margin for unforeseen circumstances can be factored into these expenses (this is done at the bottom of the form, under unforeseen expenses ). 7.4 Several capped items of expenditure The items of expenditure listed in the project budget must be realistic. For this reason, there are maximum figures attached to several items. Unforeseen expenses account for no more than 10% of below-the-line expenses Overheads are limited to 7.5% of the total above and below-the-line expenses The producer s fee is limited to no more than 7.5% of the total above and below-the-line budget. If the producer has his seat of operations in the Flemish Region, these expenses will also be eligible, but only at 7.5 % of the total eligible above and below-the-line expenses. The fees of all the (co-)producers must be listed under this item. When settling expenditure on related organisations we only accept the amount stated in the budget enclosed with the application. The jury may also apply additional provisions. Related organisations are those, which meet one of the following criteria: - the applicant has direct or indirect possession of the service provider's voting rights or capital; - the service provider has direct or indirect possession of the applicant s voting rights or capital; - the service provider and applicant have at least one business manager, director, employee or shareholder in common; - the applicant's and service provider's business managers, directors or shareholders are connected by marriage, family (up to twice removed) or cohabitation. 7.5 Funding of the project To the application must be added an overview of the planned funding for the project. To the finance plan, applicants must add any information required for a proper understanding of the project funding. The total quoted in the finance plan must be equivalent to the total planned expenditure. The finance plan must identify the financial resources already pledged and those not yet finalised. 50% of the total production budget must have been finalised by the time of the application. Enter all funding already confirmed under the column entitled confirmed. Documentary evidence of funding already confirmed must be enclosed with the application file (contracts, confirmed commitments, etc.). Letters of intent do not constitute valid proof. Funding can only be treated as confirmed if there is an actual (signed) document showing that the other party intends to grant the sum in question with certainty to the specific project. If this document is not enclosed with the application file, the amount will not be acceptable as confirmed funding. Screen Flanders Applications Procedure manual January 2017 18

Note: Automatic support, i.e. support that is granted once certain conditions are met, is not considered confirmed unless the supporting institution declares in writing that the cited amount for that specific project will be transferred. The declaration of a co-producer in a co-production contract stating that he will assemble a certain amount of the financing is not considered substantiation of confirmed funding. (Participations and deferred payments can be included as part of the funding arrangements.) We also ask that the overview differentiates those financial resources that originate from the Flanders Region from those that will be acquired outside the Flanders Region. The share of the Flanders Region in the funding overview relates to that funding which, according to the coproduction contracts for the project, are provided by a producer from the Flanders Region). The non-flemish share in the funding overview relates to that funding which, according to the coproduction contracts, was NOT provided by producers from the Flanders Region, but from abroad, or the Walloon or Brussels Region. In the case of non-flemish funding, it is also important that documents be enclosed in support of every amount considered as confirmed funding. Each amount must be listed separately in the overview of the non-flemish share of the funding. The listed sums must be easy to find in the enclosed agreements. Finally, the application form also asks specifically about other state aid, besides VAF support. This state aid is understood to mean: all forms of government support (Flemish and non-flemish) including European support, in relation to the same project. Screen Flanders Applications Procedure manual January 2017 19

8 The Amount of Support and Duration of the Support Term 8.1 The amount of support The support is awarded in the form of refundable advances on net receipts. In the application form, applicants must indicate the amount of support they wish to receive for the project. The following rules apply: Total support per project shall never exceed 400,000 Euros The support is at most equivalent to the qualifying expenditure, which is to take place in the Flanders Region The support amounts to no more than 50% of the total production budget for the project. This percentage may rise to 75% of the total production budget for a film or documentary of the following type: o low budget film (total budget below 2,500,000 Euros) o debut film o youth film o director s film o Dutch language film o film based around a subject that ties in with the Flemish cultural identity or the Flemish cultural patrimony and heritage, or based on a Dutch-speaking work o documentary of remarkable artistic or cultural value If, for the same expenditure, the support awarded by Screen Flanders is combined with other state subsidies, of the type referred to in article 107 of the Treaty on the Functioning of the European Union, the combined support for the project must not allow the beneficiary s support intensity to come out higher than the maximum allowable support percentage. Were this to be the case, the support awarded on the basis of this decision would be reduced proportionally. By support intensity is understood: the support grant, expressed as a percentage of the expenditure qualifying for support for the audiovisual work. 8.2 Start and duration of the support term The date on the first invoice relating to expenditure that qualifies for support must lie after the registered date of submission. The support must be used within 18 months of the date on which it was approved. In the case of animation films and animation series, this period is set at 24 months after the aid approval date. Any project commenced in the period after the application was submitted and before a final decision is made on the awarding of support, is commenced at the applicants own risk. This is because applicants must consider the possibility that their project may not be awarded support. Screen Flanders Applications Procedure manual January 2017 20

9 Payment of the Support The granted support is payable in three instalments in accordance with the scheme below: a first instalment of 30% is paid no sooner than thirty days after the decision to award (date of the ministerial decree awarding the support), provided that the beneficiary production company: 1. requests payment of the instalment by Flanders Innovation & Entrepreneurship (Agentschap Innoveren & Ondernemen); 2. demonstrates that at least 80 % of the total funding and at least 50 % of the Belgian Tax Shelter sum has been finalised and that the Screen Flanders recoupment position has been correctly understood. At the very minimum the following documents must be enclosed: detailed project budget; the funding plan and all relevant, signed contracts and definitive agreements, communicated by the production company; recoupment statement signed by the main producer and beneficiary producer; an overview of the total number of shooting days in Flanders. If a collection account is used Screen Flanders must be listed as a beneficiary and a Collection Account Agreement signed by all interested parties must be submitted when available. The production needs to deliver the final version of the shooting schedule (specifying the number of days in the Flanders Region) to Flanders Innovation & Entrepreneurship before the first day s shooting. This regardless of the timing of the request for payment of the first instalment. a second instalment of 30%, is paid no sooner than thirty days after the decision to award, provided that the beneficiary production company: 1. requests payment of the instalment by Flanders Innovation & Entrepreneurship (Agentschap Innoveren & Ondernemen); 2. demonstrates that the production has started shooting by means of a call sheet of the first day s shooting. a third instalment of 40%, is paid no sooner than thirty days after the decision to award, provided that: 1. the beneficiary production company requests payment of the instalment no longer than 12 months after the project period has ended; 2. the beneficiary production company declares that all grant-eligible expenditure has been made in its entirety; 3. Flanders Innovation & Entrepreneurship (Agentschap Innoveren & Ondernemen) establishes that: the expenditure eligible for grant support is demonstrated in full. If the expenditure eligible for grant support is not demonstrated in full, the grant will be reduced pro rata. If the grant-eligible expenditure is less than 250,000 no grant will be awarded; no debts are outstanding with the National Office for Social Security. If the beneficiary production company is in debt with this institution payment will be suspended until evidence is provided that the debt has been settled; the conditions set out in the Order of the Flemish Government concerning grant support for audiovisual works of the type fiction, documentary or animation film or animation series, and its implementing orders, have been satisfied in full; any changes of the type referred to in article 1 point 3 of the Ministerial Decree on grant awards are justified and acceptable. all the deliverables have been provided to the Flanders Audiovisual Fund (VAF) the correct and finalised recoupment scheme has been provided. Screen Flanders Applications Procedure manual January 2017 21