WWalk The TTalk - talkfilm.biz · WWalk The TTalk For Directors, Producers, Film Crew and Film Students John Gaskin, B.Eng, Production Auditor Like it or not, your performance is

WWWalk The TTTalk For Directors, Producers, Film Crew and Film Students

John Gaskin, B.Eng, Production Auditor

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Like it or not, your performance is measured to some degree by how well you control the money. It’s like

“Directing”, only you’re “Directing” the money.

Get Inside the Film Production Circle

Walk The Talk Walk The Talk Walk The Talk For Film Directors, Producers, Crew and Students® Published by Film Accounting & Computer Services Ltd. Book Publishing Division www.talkfilm.biz Copyright © 2005. All rights reserved. No part of this book, including interior design, cover design, and icons, may be reproduced or transmitted in any form, by any means (electronic, photocopying, recording, or otherwise, without the prior written permission of the publisher. Library of Congress Catalog Card No.: (filed, awaiting card no.) ISBN: 0-9737730-0-6

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND AUTHOR HAVE USED THEIR BEST EFFORTS IN PREPARING THIS BOOK. THE PUBLISHER AND AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS BOOK AND SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANT-ABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE DESCRIPTIONS CONTAINED IN THIS PARAGRAPH. NO WARRANTY MAY BE EXTENDED OR CREATED BY SALES REPRESENTATIVES OR WRITTEN SALES MATERIALS. THE ACCURACY AND COMPLETENESS OF THE INFORMATION PROVIDED HEREIN AND THE OPINIONS STATED HEREIN ARE NOT GUARANTEED OR WARRANTED TO PRODUCE ANY PARTICULAR RESULTS, AND THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY INDIVIDUAL. NEITHER THE PUBLISHER NOR AUTHOR SHALL BE LIABLE FOR ANY LOSS OR PROFIT OR ANY OTHER COMMERCIAL DAMAGES. FULFILLMENT OF EACH COUPON OFFER IS THE RESPONSI-BILITY OF THE OFFEROR.

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‘Direct’ the Money — Walk The Talk

There is a black hole in the film industry causing chaos. Most often the source of chaos is money. The purpose of my book is to lessen that chaos.

Directors, Producers and Film Crew love what they do. They’re my people. They’re unhampered by the usual trappings of ‘needing a good job’, or ‘having a good pension’. They’re creative, vibrant and exciting to be around. They make films. But sometimes their life is chaotic.

Much of the chaos in film production doesn’t have to be there. It’s not a requirement for good film-making.

This book is dedicated to all of you hard working good people who collaborate to make films. It’s meant to back you up by providing a way to ‘Direct’ the money, instead of the money ‘Directing’ you. Translating creative ideas into money terms will reduce the chaos, creating trust and creative freedom.

For those of you new to the film business, I welcome you to the creative, bustling world of film-making.

Feel free to use my web site to stay in touch.

Best regards,

John Gaskin

Dedication To my wife and four daughters, who put up with me dragging them around various countries and various continents over the years. You made it fun when it could have been spirit crushing.

Author’s Acknowledgements There are some people who just have that special ‘something’ - it’s apparent from the moment you see them walk in the room. Kathy McGill and Michael Glick are two such persons. Back in 1988 Kathy hired me to help her on a film production where she rounded out my training in film accounting. Kathy has long left the accounting arena and has been Producing shows for some time now. She is my mentor and I’d like to acknowledge her for all of her help in getting me started in this best and toughest of careers. Michael Glick is an old-time Producer with a wealth of experience at both the production and studio level. His practical application of intelligent solutions and his overall support over the years have been inspiring and more comforting than he knows.

My Aim In Writing This Book As you read through this book, you may have questions that were left unan-swered. Please feel free to email me—see my web site with any comments, questions, requests for seminars, etc. I’m truly proud to be involved with all of you in the film production business. My aim is to lend support to all of you creative people. You - the Directors, Producers, Crew and new Film Graduates - deserve all of the help that I can give you.

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This book started out as an effort to answer a question that Ron Howard had put to me back in 1993. (You can check out the question in Chapter 1). The purpose of the book expanded from that question into a way to help Directors understand that ‘Talking Money’ is a simple, but necessary, tool to use during the film production. There are only a few fundamental, non-detailed ‘Money Talk’ basics which gives the Director, and Producers, a much needed driving lesson through the flaming pitfalls awaiting them during the production of their script. If you know the money talk, then you can ‘Walk the Talk’. Throughout the book I’ve inserted some of the juicier real life pitfalls that I’ve personally witnessed, reported on, or unwittingly participated in. Enjoy! An added aim of this book is to give an insight into the world of Production Managing. To my knowledge and research exposure to this type of information just isn’t available anywhere else. This book is vital for film crew who want to become a Production Manager. I added a 4th section to the book specially for Film Students and those who are rookies (or, wannabe rookies) in the world of film production. There are a few fundamental administrative techniques which can give the edge to those new to the film production ‘biz. Just with a simple review of Book IV you can avoid the confused bumbling of getting petty cash, signing up for payroll, preparing purchase orders, etc. The film student attempting to enter the arena of film production is never taught these fundamentals in school. Understanding the basics of these types of things will avoid taunting from the veterans, and may even win you the job over others. ‘Walk The Talk’ means knowing how to ‘Direct’ the money—if you control the money, you control your career.

Take Control Over Your Career in Film

If You Work In Film In Any Capacity, This Book Is For You

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PART I TRANSLATE CREATIVE IDEAS INTO MONEY _________________________ 9 Story #1 There Are Screamers in the ‘Biz_______________ 8

Chapter 1 Walk The Talk Introduction__________________ 11 - Ron Howard Asked Me A Question I Couldn’t

Answer - Money Is the Energy That Drives the Machine Chapter 2 Walk The Talk Is For Anyone_________________ 14 - Walking The Talk In General For Anyone - Make Comments About Budgets In General Chapter 3 Walk The Talk For Independent Filmmakers_____ 16 - You’re Pitching Your Script to a Banker Chapter 4 Learn To Trade-Off Costs____________________ 18 - Director’s Can Learn to Direct The Money, Too - At the Very Least, Know What to Ask - Director’s Need to Know How to Respond Story #2 It Comes As A Shock When the Director Is Fired__ 21 Chapter 5 Producers: The Tricks of Directing Costs________ 22 - Producer’s Need Some Drilling, Too - Cost Reports & Budgets Aren’t Always Understood Story #3 Some Producers Need A Short Tutorial__________ 23 Chapter 6 Crew - Rising on the Food Chain______________ 25 - The Crew Don’t Get Access to the Key Report Card Chapter 7 Note to Directors___________________________ 26 - Some Directors & Students May Need Convincing Chapter 8 Translate Creative Ideas Into Money____________ 27 - Train yourself to Translate Creative Ideas Into Money - Example—Reshoots - Example—Crane Shots - Example—Stunts

Story #4 There Was A Time I was Flattered—No More____ 32

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PART II BUDGET CREATION ______________ 34

Story #5 Don’t Get Yourself “C” Listed_________________ 36 Chapter 9 Budget Creation—The Basics__________________ 38 - You Can Fill A Dumpster With Books About

Budgeting - Budget Preparation - Budget Example (Movie Magic Budgeting Style) - “Final Approved Budget” - Once the Budget Is Approved, the Cost Report Starts - Under Budget Is Good/Over Budget Is Bad Chapter 10 Some Budgets May Not Be Truthful____________ 45 - ‘Talk Truth’ When Going Over Budget Story #6 How To Weaken A Career____________________ 47 Story #7 There Are Some Whacky People Out There______ 48 Chapter 11 Link the Script to the Budget__________________ 49 - Reports That Link the Script to the Budget Chapter 12 Above-the-Line Budgeting____________________ 49 - The Above-the-Line Basics Chapter 13 Above-the-Line Discretionary Budget ‘Talk’_____ 54 - What the Studio Regards as a Discretionary Expense - Control Non-Discretionary ATL Costs - Example ,Using Non-Discretionary Budget ‘Talk’ To

Your Advantage - Utilize the ATL Budget to Your Advantage Chapter 14 ATL Relative Budget Size____________________ 60

-Relative Size Budget ‘Talk’ Story #8 Do Producer’s Ever Lie About the $ Available?___ 61 Chapter 15 The Shooting Period Budget __________________ 63 - The Shooting Period Basics (aka Below-the-Line) - ‘Talk’ About the Budgeted ‘Worked Hours’ For Crew - ‘Talk’ About the 13th Hour Worked

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PART II BUDGET CREATION Continued... Chapter 16 Relative Size of the Shooting Period Budget______ 67

- ‘Talk’ About the Relative Size of the Shooting Period Budget

Chapter 17 Walk The Talk, Participate In the Budget_________ 68 - Pick-Up Shot (Example Budget for a Small

Unit) - Look At the Budget, Don’t Listen - Q & A on the Small Unit Budget Example

Handy Budget Tables for… (Crane Rentals, Background Extras, Cost of shooting An Additional Day, Construction Costs by ‘Flats’, Cost of a Small ‘2nd Unit’ to Pick-Up Shots, Cost of a Helicopter Shot.)

Chapter 18 Simple Ways To Control the Money_____________ 74

- Some Suggested Budget Questions

Chapter 19 Post Production Period Budget_________________ 76 - General Information About the Post Prod’n Period

Chapter 20 ‘Other’ Budget Category______________________ 77

- General Information on the Final Budget Category Story #9 Would A Producer Steal From A Production?_____ 78

PART III YOUR REPORT CARD (Presentation of the Costs Can Make-or-Break Your Career)__________________________ 79

Chapter 21 The Cost Report Introduced___________________ 81 -The Most Important Document During Film Prod’n - The Game: Offset Over-Budget With Under-Budget - The Basics, Definitions of Columns #1 - #5 - The Basics, Definitions of Columns #5 - #7 - The Basics, Definitions of Columns #8 - #10

Chapter 22 Why the Cost Report Is So Important___________ 87 - Why the Cost Report is So Important - The Budget is Only Meaningful If Compared to Costs

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PART III YOUR REPORT CARD (Presentation of the Costs Can Make-or-Break Your Career) Continued...

Story #10 How To Avoid Trouble When You Have Overruns_ 89 Chapter 23 Cost Report ‘Talk’—The Estimates-to-Complete__ 91 - An Example Using the Cast & Stunts - Cast & Stunts Is a Good Place to Bury Some Savings

Chapter 24 Cost Report ‘Talk’— Projecting the Labor Cost___ 94 - An Example Using the Electric Department - Utilizing the ‘Actual-This-Period’ Column (Col.#3)

Chapter 25 Cost Report‘Talk’ —Within the Department Offset_ 96 - An Example Using the Set Dressing Department - Offsetting Within the Department Doesn’t Need to be

Declared

Chapter 26 Cost Report ‘Talk’— Offset to the Bottom Line___ 98 - Offsetting Among Departments Needs to be Declared - Don’t Forget the 30% (or so) on Labor Fringes

Chapter 27 Cost Report ‘Talk’— The ‘Hot Cost Savings’____ 100 - An Example Using A Usual Hot Cost Template - Hot Costs Are a Snapshot of the Day’s Variance - Also Be Aware of the Hot Cost ‘Over-Budget’ Days Story #11 ‘Kickbacks’ In the Film Business______________ 103 Story #12 Support Your Studio Exec____________________ 104

Chapter 28 Cost Report— Projection Through to Completion_ 105 - An Example Using the Background Extras Section - Round Off Projections For Simplicity

Chapter 29 Cost Report— The ‘Projected Fringes’ _________ 107 - An Example Using the Makeup & Hair Department - Fringes Have a Significant Impact

Chapter 30 Cost Report— Commitments-i.e.Purchase Orders__109

- An Example Using Purchase Orders

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PART IV HANDLING MONEY LIKE A PRO AS AN EVERYDAY ROUTINE _____________________ 111 Chapter 31 You’ll Be Working Because You’re Prepared_____ 113 - You’ll Be Working Because You’ll Be Better

Prepared Chapter 32 The5 Ways of Spending Money________________ 114 - Schematic diagram: Flow of Costs Into the Cost

Report Chapter 33 Can You Say, “I Know How to Handle Purchase Orders,

Petty Cash, Timesheets, etc.____________________ 115 - If You Know These Things It’ll Help You Find Work Chapter 34 How To Get Paid On Your Film Shoot____________116 - Example: Preparing a Deal Memo - Example: Preparing a Crew Timecard Chapter 35 Requesting Checks On Your Film Shoot__________ 120 - Example: Preparing a Check Requisition Chapter 36 Handling Petty Cash On Your Film Shoot_________ 122 - Example: Preparing a Petty Cash Advance - Example: Preparing a Petty Cash Report - How a Petty Cash ‘Float’ Works Chapter 37 Preparing Purchase Orders On Your Film Shoot____ 126 - Example: Preparing a Purchase Order

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APPENDICES: Appendix #1 Relationship Between the # of Shoot Days and the Below-the-Line Budget______________________ 130 - Relationship Between the # of Shooting Days and the Shooting Period Budget Appendix #2 Basics on Below-the-Line Union Crew__________ 132

- The Basics of Crew Labor - The Basic Information on the Director’s Guild - The Basic Information on the IATSE Crew Members - The Basic Information on the Teamsters

Story #13 Everybody Has A Teamster Story______________ 136 Appendix #3 Alternative Deal Memo With Terms on the Back__ 137 Appendix #4 List of Forms Available on the Web Site________ 139 - Budget Related Forms and Sample Budgets (MMB) - Cost Report Sample and Cost Analysis Templates - Payroll Related Forms - Vendor Payment Related Forms - Petty Cash Related Forms - Cashflow Related Samples and Templates Appendix #5 Crew Pay Rate Comparison in North America____ 139 Appendix #6 Frequently Asked Questions__________________ 142 - Who Decides How Much to Budget in Total? - Who Tells the dept Head His/Her Budget Limits? - Who Does the Negotiating For crew Pay Rates? - Who Actually Prepares the Weekly Cost Report? Appendix #7 Your Report card, The Cost Report_____________ 148 - Cost Report Covering Memo, Sample - Summary Cost Report, Sample - Detail Cost Report, Sample (Pg’s 1 –1 2) Appendix #8 Call Sheet, Front and Back, Sample____________ 164 Appendix #9 Production Report Form, Front and Back, Sample_ 168

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There are many different personalities in the film busi-ness. Almost all of the directors, producers and pro-duction managers that I’ve met over the years are hard working and perseverant. There are some who are hard working And eccentric; and, there are few who are merely pseudo creative and drug oriented, occasion-ally you’ll even find a criminal, and some who are even borderline nuts. One of my favorite eccentric per-sonalities is a Line Producer who loves to project the image of an Angry Man. He quite often screams into a hallway for whoever the innocent passerby may be. On one occasion he fo-cused his shouting toward my office, a good 50 feet away, “John! Get in my office! Now!” I limped into his office, notepad in hand, ready for a wild scramble of angry accusations. However, he only asked me how the wife and kids are, what’s happening with the workload, etc. After I stopped catching flies with my opened mouth, I managed to answer his ques-tions and ask similar questions back. This Line Pro-ducer turned out to be a sweetheart posing as a hostile alien. His competence level and responsibility level excelled, in my view, as long as the lunatic lunges of his projected image didn’t freak you out. What’s to learn from this? …Stay cool. Focus on learning everything that you can. There’s lots of screamers in the Film ‘Biz, and only the cool can han-dle them.

Story #1

There Are Screamers in the ‘Biz

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PART I

TRANSLATE CREATIVE IDEAS INTO MONEY

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What Part I Is About This Part introduces the concept of thinking creatively with Money—in the general areas of Budgets and Costs. It starts with a true story of a good experience that I had with Ron Howard and carries through to a point where you can see that survival in film production is in direct proportion to the degree that you can Walk The Talk© about budgets and costs creatively. You will see that it’s possible for you to use the Walk The Talk© methods to your benefit—producing the vision that you have within the confines of the ‘bottom line’ budget.

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This is my 20th year working in the Biz as a Production Accountant—that’s a person who is responsible for ALL cash expenditures and for all cost reporting during a film production (made for Theatrical Release or for TV). It’s been my job to inform the Studio (or other Financiers) how much the film production will actually cost—especially if I think the film is in danger of going over budget. I also report to the studio any “irregularities” with the handling of their money. Will the final costs of the production be over the Final Approved Budget? ...Will it be under budget? ...Exactly what departments are over/under budget and what are the underlying reasons? ...What can be done about it and what will it cost? … Is the Director or Producer wasteful? Answering such questions can be frightening — there are reputations at stake and careers on the line. A few years ago I worked on a film production in New York with Ron Howard as the Director. Early in the ‘prep’ period he called a meeting with the Accountant (me), the Production Manager and the Executive Producer to ask, “Why is the budget so much higher than I expected?” Ron Howard is very conscientious about budgets and costs — he just wanted to know why. I didn’t do a very good job of answering his question; however, I did make a promise to myself that I would learn how to present simple answers to such questions. This booklet broadly answers that question by showing you how to Walk The Talk in the area of money.

Chapter 1 — Walk The Talk Introduction

Ron Howard Asked Me A Question I Couldn’t Answer

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Key Creative people impress me with their ability to critique films, make suggestions about actors for particular roles, refer to a library of films without flinching, etc. However, what about creative costs proposals? Dead silence. Money is the energy that drives the machine and if you want to be viewed as competent, you must have some ability to Walk The Talk© about Budgets and Costs to some degree. Don’t get swamped in the details; keep the amount of detail relevant to your interest. Let’s do a little Question and Answer period: Q. Do Directors really get fired for going over the approved budget? A. Yup! Q. Do department heads, like the Art Director, Costume Designer and Property Masters get fired for going over budget? A. Yup! Q. Do Studios really keep lists of preferential employees? A. Yup! I’ve actually seen the ‘A’, ‘B’ and ‘C’ listed crew lists. Get that job at the shoe manufacturer when your ‘C’ listed, ‘cause you ain’t gonna get much work in the film biz after that. Q. Can all that messy firing stuff be avoided? A. Yup! Learn how to do your job well, then also learn how to Walk The Talk about budgets and costs in film production.


Money Is the Energy That Drives the Machine.

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When I started working in film production in 1985 I tried to find something in writing about the film production cost reporting process which would give me an edge. Other than one or two books on budgeting, there wasn’t anything in print at that time. Since then there have been more books published about budgeting and a couple of books about production managing. To my knowledge there still isn’t anything which gives a non-accountant the information needed to Walk The Talk© about money during film production. Anything that’s bought (I mean ANYTHING) is tracked and compared to the budget. That includes toilet paper, prop holding rooms, every conceivable type of film equipment, etc. In every case that expenditure is compared to the original budget. Like it or not, your performance is measured to SOME degree by how well you control the money. That’s why it’s not an overstatement to say — to control the money is to control your career. You decide. So, this booklet is written for the producers, directors, crew members, studio staff and film students to get better control over costs of film production. Once you’ve read through this book, I think you’ll be able to Walk The Talk about the money available to the film project and how to spend it wisely on your vision.

Like it or not, your performance is

measured to SOME degree by

how well you control the

money.


Control The Money & You Control Your Career

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The book is presented in an easy reading style for the non-accountant. There are examples of how to Walk The Talk, as well as anecdotes and small sessions to help you understand the topic. Once you have completed the chapters through to the end of ‘Your Report Card to the Studio—The Cost Report” you’ll be able to understand and apply several ways to control the money spent to your advantage. The last section (Part IV) is for those who want to get a head start on the basic administrative procedures which underlie the previous chapters. I’ve kept the Techy stuff to a minimum. More detail can be found in the Appendices; however, I only recommend you go there if you’re interested in being a Production Manager. The numbers are only presented as roughly accurate – the costs follow the script and every script is unique. However, just as there are genres (romantic comedies, action-adventure, etc.), there are also rough assumptions that can be made about budgets and costs for these categories as well. You’ll be able to say with confidence: “We shot the full call sheet (sheet that set’s up the next day’s shooting schedule—see Appendix #8) in only 11 worked hours. If the director keeps that up no one will mind if we shoot that extra day in New York!” Part II gives the reader the survival tools and terms of film Budgets. You can be involved with any budget

Chapter 2 - Walk The Talk Is For Anyone

Walking The Talk In General—For Anyone

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creation without losing your foothold. From that point of understanding, Part III trains the reader how to best present, a Weekly Cost Report—the report card to the studio. This is the tool utilized by every Producer, Production Manager and Production Studio anywhere (really – that’s in Hollywood, Europe, Canada, Australia, Japan, etc.) Part IV isn’t necessary for Directors and Producers, but is vital for anyone else who is trying to get an insider’s view to working in film production. It shows the reader the five ways of recording the money that’s being spent and the six basic forms that all film production crew must be familiar with. Throughout the book I give lots of real life examples. After a light study the reader should be able to:

- read & prepare departmental budgets, make comments about budgets intelligently, and - be able to competently read, and make comments about, the universally designed “Report Card” of how the production is going as compared to the approved Budget (this Report Card is called the ‘Weekly Cost Report’).

You’ll survive because you’ll know how to Walk The Talk in the world of film production. Note: See also Appendix 4 which lists the forms that are available on my web site at www.talkfilm.biz.

Chapter — Walk The Talk Is For Anyone

Make Comments About Budgets Intelligently

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Chapter 3 - Walk The Talk For Independent Filmmakers

You’re Pitching Your Script to a Banker

For over 20 years I’ve been hired by Film Financiers (Studio Exec’s, Bonding Companies, etc.) to watch over their investment during the film’s production. I’ve also had more than a few independent filmmakers ask me for help in getting their film off the ground. So, I’ve been rubbing elbows with the elusive Film Financier (of one stripe or another) for some time. Creative writers, directors and filmmakers, especially when they’re new at the game of film production, conceive that the money for wonderful scripts should be found – like apples dropping from a tree. ‘Fraid not. Filmmaking is as much about the money as it is about the creative. The person who you’re pitching may be wearing blue jeans and topsiders, but he’s still a Financier (or his immediate superior is). When pitching your script, think - I’m looking into the cold heart of a banker. Learn to be familiar enough with the costs of your script to defend it in the language of money. Then, you’ll be able to look any Studio Exec in the eye and mean what you say in his/her language. But, you say, I’m creative! What do I know about money, and financing, and accounting, and, and….. Take heart. It’s a heck of a lot easier than you may think. Independent film writers, directors and producers are fervently connected to their scripts and can pitch them anywhere, at anytime. But can a creative pitch alone get the film made?

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Chapter 3 — Walk The Talk For Independent Filmmakers

You’re Pitching Your Script to a Banker

It’s very rare. Think about it. You’re dealing with the M word….MONEY! So, yeah, pitch your heart out. But, hey, isn’t it reasonable to learn some of the language of the person you really want to work with? To my mind, that’s the only way to be credible in the eyes of the Financiers. Remember that we’re talking about INDEPENDENT Film Financing and not about getting swept through the red carpet of the major studios. There’s a two step process going on here: 1.Pitch the script 2.Create confidence that the film CAN be produced within defined dollar limits. Being bright and creative is pretty much the norm in the film industry. But, being bright and creative, AND knowing how to translate creative ideas into ‘money talk’ elevates you way ahead of the pack. To deliver a good pitch, have answers to these key questions: - How you will achieve and produce your vision, yet still stay within a predetermined budget. - What's important about money in film production, and what's not, and how to bring it up in the pitch. - What are some of the 'Insider' secrets about film budgeting and reporting that YOU can use to your advantage? - Regardless if you're a film director/ producer/ crew/ film student/ etc., film budgets and cost reports have something to do with you and your goals. Be prepared to bring this topic up during your pitch. You get the idea. Learn to be familiar enough with the costs of your script to defend it in the language of $$.

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As a Director you want to transfer your vision to the screen. If you can trade-off one area of costs against another area without getting stuck in the details, you can control the transfer of your vision to the screen. I guess you could say that you’re “directing” the money. For example, if a Producer says it’s too expensive to have that crane shot during the opening titles, you’ll be able to trade off other costs with authority, getting your crane shot and earning the respect of the financiers at the same time. A few years ago I worked on a film production in New York with Ron Howard as the Director. He called a meeting with the Accountant (me), the Production Manager and the Executive Producer to ask, “Why is the budget so high?” If Ron Howard is conscientious about costs, it behooves the rest of us to learn what we can as well.

I’m using a true story about Ron Howard because he’s such a well known person – and a true gentleman - but I could have used similar stories about a number of directors. Since I started with Ron, let’s examine Ron’s view about film production: Ron Howard is well respected and well known. He has grown up in the film & TV business and it’s immediately evident that he’s been alert the entire time. He certainly is the only director that I’ve met who took a personal interest in lowering the budget. He’s a powerful man with the experience and sang-froid to direct the best talents in the world. Also, he goes against the grain of the usual image of a Hollywood

Chapter 4 — Learn To Trade-Off Costs

If Ron Howard is conscientious about costs, it

behooves the rest of us to learn

what we can as well.

Director’s Can Learn to “Direct” The Money, Too

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director - he’s a friendly and personable guy. (When I called him Mr. Howard, he told me to just call him Ron.) Because of all that I had a tendency to believe that he had all of the answers to everything in the universe of film making - including the various ways to control cost, the in’s and out’s of budgeting, etc. When Ron called that meeting with the accountant (me), the Production Manager and the Executive Producer he was simply asking a direct question :

“Why does this film production cost so

much more than earlier ones?”

and, he wanted as uncomplicated an answer as possible. And my thought was, “Gee. You already know everything.”

Here’s the point - most director’s and producers have elected to stay away from budgets and costs. The heavy grinding SHOULD be left to accountants — BUT, the control still needs to rest with the Director, Producers and Production Managers. Get a degree of familiarity with the money flow, especially with the budget creation and the weekly ‘Report Card’ - the Cost Report. Find a comfort level where you can, AT THE VERY LEAST, KNOW WHAT TO ASK. Know how to formulate the questions—you’ll impress the money belts off Studio Executives. Picture the following scenario—you as a director, want


At the Very Least, Know What to Ask

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to do a crane shot that entails several movements best handled with a ‘Techno Crane”. It will also involve 100 background extras (the first 50 need to be SAG Union extras):

Studio Executive: “That’ll cost $200,000 and I don’t see how that will pay back at the box office. It cost even more than that on my last show, and THAT was in Denver just last February … yaddy, yah, yah.”

(Remember, the Studio Executive is going to estimate high).

You, the Director (rather than feeling out of your

element) say, “According to my charts a top of the line ‘Techno Crane’ can be rented for $8,000 for a week (see Figure 17.2, Table 1). We can shoot out the extras over two days—according to my charts that’s about $14,000 a day for the SAG extras and $7,000 a day for the non-union extras (see Figure 17.2, Table 2). According to my math, that’s ($8,000 + 14,000x2 + $7,000x2) = $50,000.”

Then, after taking a breath, you also say, “Because we’re in the Studio I know that we can get our shots with 10 Hour shoot days all of this week. As you know, wrapping the crew 2 hours early saves $10,000 a day (See Figure 15.3). There’s the $50,000 we need. And anybody who would shoot in Denver in February must be……”.

Directors and producers deserve all the help they

can get. All of their aptitude and training is toward artistic creativity. Being creative with the money is a new concept!


Director’s Need to Know How to Respond to the Pressures by Using ‘The Talk’

Directors and Producers deserve

all the help they can get. All of their

aptitude and training is toward artistic creativity.

Being creative with the money is a new

concept!

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It comes as a shock when the Director is fired. This particular show where it occurred to me was an Independent film production (that is, it required a Bonding Company) even though the funding came directly from a Major Studio. One day, in the second week of shooting, as I was grinding out the torrential storm of invoices and petty cash, I got what I thought would be a friendly call from the Bond Company. I was casually asked what my last check number was. I thought that it was an odd question, but I looked in the box of checks and told him. The Bond representative then told me that was the last check until he arrived – they had just fired the Director and they were sending up two representatives and a new Director. The Director wasn’t fired because of any financial irregularities; he just wasn’t able to control the random activity on the set and wasn’t getting the “look” that the film deserved (in the opinion of those in the know at the Bonding Company). It was a shock, and disrupted the flow of events that it takes to make a film. It ultimately cost a lot more to fire the Director than to keep him on. But, once that decision is made there’s no turning back. What’s to learn from this? …For me, it’s that the guys who hold the purse strings have the right to do whatever they feel is necessary to get a good return on their investment, and they’re certainly not afraid to do it. So, make your own luck, and learn all you can to ‘direct’ the money in the same way as you would ‘direct’ the set, the actors, the cameramen, any department, etc.

It Comes As A Shock When the Director Is Fired

Story #2

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As a Producer you want to produce the film on budget and on time. You already have some of the concepts in this booklet; however, not all Producers have a background in production cost-watching. So, give it a chance and I truly believe that you’ll get something out of this booklet. Producer’s need to be sharp when challenged to make decisions (all decisions involve costs – every single decision anywhere anytime).

I have worked closely with producers who are very strong and can make all the difference in moving a film production from a concept to reality. However, many of those same producers asked questions that made me bite my lip. How do you train a producer in the middle of a cost report meeting without embarrassing him. Picture this:

Producer - Why are we spending so much on these rentals? Accountant - Ahhh. That’s a subtotal of the whole department. But, I can see how you could have been mistaken there. It’s, ahh, a little ………

You get the idea. It would be much more efficient to hand him this

book before production begins with a rave review of how much you got out of it.

Chapter 5 — Producers: The Tricks of Directing Costs

Producers Need Some Drilling Too

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Some Producer’s just need some help – a short tutorial in matching the creative elements of a film production with the money aspects. Most of the Producers that I’ve met are at the top of their game in some field; but all have a varying degree of familiarity with reading and predicting money expenditures and comparing the expenditures with the Approved Budget. I sat in one meeting with a very high profile Producer who kept mistaking subtotal lines in a vital weekly report for actual expense lines. How do you react to that? It starts to feel like a vaudeville act. You know, where there are two guys doing the ‘soft shoe’ and they point out the obvious a few times until it starts to be funny? At first we (the Production Manager and I) treated the Producer’s various mistakes in viewing the numbers just a few honest errors. Mind you we didn’t dare look at each other, because it would have certainly resulted in a giggle. However, as the Producer suffered through a few more foot-in-mouth statements, my case of the giggles was replaced with an uncomfortable squirm. What do you do when something like that happens to you? I know what I’m going to do in future. I’ll get him alone and sell him a copy of this book.

Story #3

Some Producers Simply Need A Short Tutorial

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Some training and drilling is needed to get to know the tricks of directing and controlling the costs during film production. That kind of education just does not exist anywhere in film bookstores.

The cost reports and budgets prepared in relation to a film production are regarded as confidential by the Studios, producers and accountants, so there’s a general tendency to get closed mouth about such things. The careers of crew striving to become production managers are impeded by that closed door. As are the careers of production managers who could never get a grasp on these few tricks of the trade. Producers are a mixed bag of executives (executive producers), creative individuals (creative producers) and technically competent individuals (line producers). At the immediate level below producer is the production manager, who is the sergeant major of all the various direct aspects of getting the film produced on time and on budget. It is on these shoulders that the burden of the money control duty falls – along with the accountant. Again, I know from personal experience, that one cannot assume that all levels of producers are skillful in the techniques of controlling the costs of film production. Most producers, regardless of assertions, need some training and drilling on the various methods of controlling the costs of film production.

Chapter 5 — Producers: The Tricks of Directing Costs

Cost Reports and Budgets Aren’t Always Understood

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As a Crew Member, Studio Employee or Film Student you want to be regarded as a competent person so that you can work in a business that has more wannabe’s than any other business. Perhaps you want to learn how to become a successful Production Manager, or perhaps you’d just like to rise on the food-chain either in a Studio or on a film production set. If so, there’s gold in this book that you just won’t find anywhere else. Veteran crew members regularly ask me what a Cost Report looks like. They are usually unexposed to most of the data in this book. (See Chapter 21 for a brief example of a Cost Report). The Cost Report is THE key ‘Report Card’ presented to the Studio every week. It’s utilized by every Production Manager, every Producer, every Studio Executive on planet earth – period. Here’s the catch—it’s confidential. I have never seen it even referred to outside of this book! (Note: all examples of Cost Reports in this book are not actual figures taken from a production. They are created by me as a training tool. Like I said—Cost Reports are confidential). Once you’ve gone through Part IV you’ll be exposed to the types of procedures & forms that are common knowledge to most Production Managers and Studio Executives – you’ll find the information you’ve gained practical and useful to your career. You’ll also get experience in seeing how departmental budgets are presented in a format that is commonly used.

Chapter 6 — Crew - Rising On the FoodChain

The Crew Don’t Get Access to the Key Report Card

Veteran crew members

regularly ask me what a Cost

Report looks like. They are usually

unexposed to most of the data

in this book.

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Some directors and students may need a little convincing that understanding cost controls during film production is vital to their careers. Here’s some interesting points for directors: 1.It is a requirement by the major studios for the director to sign the final budget for submission. Most directors have a rather lost look on their face when they spot their name on the signature list. There they are, along with the accountant, producers and (gulp) - production executives. The director, the most powerful person on the film, trained to the teeth and pumped for creativity, is just not trained in that area. 2.Furthermore, there is a trend to demand the director give up as much as 10% of his fee towards overages. Being an intelligent individual, skilled in creative and technical expertise, is not enough. The director of the new millennium needs to know the basics of controlling costs of film production; if for no other reason than self-preservation. (This is also true of any crew member who has hopes of production managing their own shows.) 3.There are simple ways for directors to get their own way, AND control the money. You CAN get those rehearsal days. You CAN get those crane shots. JUST LEARN HOW TO TRADE OFF THE COSTS.

Chapter 7 — Note To Directors

Some Directors & Students May Need A Little Convincing

There are simple ways for directors to get their own way,

AND control the money. You CAN get those rehearsal days.

You CAN get those crane shots. JUST

LEARN HOW TO TRADE OFF THE

COSTS.

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The best way for me to demonstrate ways for you to use this book is to guide you through some examples of translating your creative questions into cost questions. It takes some training and drilling. There’s a regularly occurring pattern of problems presented by and to the director, like a pair of fighting cocks circling before the attack. Conflicts that come up are almost always due to poor, or no, translation of a creative need into a cost that is based on accurate projections. Also, no attempt has been made to trade-off that accurately presented cost with a projected savings somewhere else in the budget. Let’s take up an example:

You’ve shot the exteriors called for in the script and you’ve seen the dailies; however, you KNOW that there’s a better shot of that exterior in Oklahoma that would give the perfect hook to the opening of your film. You know that you can convince the producers and the studio of this on a creative plane. But, you also know that the studio and most producers will shudder at the task of dropping that bombshell on the financiers or the major studio. (Oh, did I tell you that we’re going to Okl…).

1. How do you pose solutions to those added

costs? 2. What’s the right way to approach the game of

Chapter 8 — Translate Creative Ideas Money

Train Yourself to Translate Creative Ideas Into Money

The best way for me to demonstrate ways for you to use

this book is to guide you through some examples of translating your

creative questions into cost questions

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cost trade-offs? 3. It’s always going to be a challenge to present this kind of choice – but, a very doable challenge if you know how to translate your needs to cost trade-off’s by using my Walk The Talk ideas.

Here’s a variation of three typical kinds of questions for feature film or TV productions. I’ve shown the way the questions are usually posed, as well as the Walk The Talk way. __________________________________ Example—Reshoots

Usual Way: Director – I want to go to Oklahoma to reshoot

the exteriors. Line Producer – This will put us over-budget by $130,000. (Note that Line Producers always go high.) I’ll talk to the studio. (That’s a euphemism for – not even a chance.) Walk The Talk Way

Alternative: Director – The cost of shooting 1 day of exteriors will not require a full crew in Oklahoma. I’ve called the Film Commission there (see my web site for internet links to all Film Commissions and major Unions) and they have assured me that there are plenty of local crew

available to work at a very decent rate. I estimate it should cost about 1/2 of your estimate, say about $75,000 (see Figure 17.2, Table 3) to give us a bit more than we absolutely need. I can get

Chapter 8 — Translate Creative Ideas Into Money

Examples: Reshoots/Crane Shots/Stunts

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Example—Reshoots (Continued) that back over the next 5 days here in New York.

You see, I’ve rehearsed the next five days with my very experienced cast and there’s no way that we can’t complete the scenes scheduled in 10 hours a day instead of the budgeted 13 hours a day. And, as you all know, that last 2 hours in New York costs about $10,000 a day (see Figure 15.1). Alternative: Line producer – Oh. I’ll have the accountant make a schedule of the costs and you can check them. (That’s a Line Producer’s last stand – it’s up to the accountant to verify your estimates.)

__________________________________

Example—Crane Shots Usual Way:

Director – I want to replace the opening scene with a shot of the fields from over 100 feet up, viewing the pond at about a 45 degree angle to the pond. Then I want it to slowly swoop down to the surface of the pond where we’ll focus on the car’s outline in the murky depths.

Line producer – That kind of shot will require a 150’ crane and there aren’t any around here. So, we’ll have to bring it in from Georgia (1,000 miles away), and we’ll need divers and a special effects crew to raise the bottom of the pond with

platforms, etc. etc. etc. It’ll cost at least $150,000

Chapter 8 — Translate Ideas Into ‘Money Talk’


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Example—Crane Shots (Continued) more. (Again, Line Producers like to go high.)

I’ll talk to the studio. Walk The Talk Way: Alternative Director – I have a great idea for a crane shot. The concept is easy to sell to the studio. From my study of costs, it will cost about $13,000 to get a 150’ crane and crane operator “all-in” (see Figure 17.2, Table 7). We’re replacing the other opening scene (driving too fast on the highway at night) so, let’s assume that the only additional costs are the putting the car on a platform and settling it into the pond. I’ll leave that up to you—BUT, if it’s more than $5,000 I want to know about it. So, let’s say it’ll cost no more than another $20,000 for the shot. Let’s talk to the Key Grip and Gaffer (the department heads of the Set Operations and Electric Dept’s) for their opinion. (Never—I mean NEVER—go to the crew for opinions about costs without the Line Producer in tow. It’ll make an instant and long-standing enemy.) Alternative Producer - Oh. I’ll have the accountant make a schedule of the costs and you can check them.

__________________________________

Example of Walk The Talk On Stunts Usual Way: Director – I have a great idea how to quickly acquaint the audience with the isolation of the fishing village. A helicopter shot will shoot the rocky bush land from about 1/2 mile inland. The audience will be shocked to see the ocean suddenly crashing in on the shoreline with it’s

Chapter 8 — Translate Ideas Into ‘Cost Talk’

30


Never-I mean NEVER-go to the crew for

opinions about costs without the Line

Producer in tow. It’ll make an instant and longstanding enemy.

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isolated lighthouse. The helicopter will circle around to view the fishing village and wharves, ending with another view of the isolated

bushland behind the village.

Line Producer – Helicopters are always expensive. We’ll have to bring it in from New York with per diems (a daily amount of cash given to out-of-town crew & cast), hotel and travel, etc. So, I’d estimate that it’ll cost about another $50,000 to $100,000. I’ll give the studio a call and see what I can do. (I’m behind you, but it’s a bit silly to even make the call.) Walk The Talk Way:

Alternative Director - (After explaining the shot as above) According to my charts (see Figure 17.2, Table 6) it’ll cost about $25,000 for a helicopter shot if the helicopter were available locally. Let’s add another $10,000 to cover any additional travel and holding costs—if it costs more than that let me know immediately. I can get us back the $35,000 on this week’s shooting hours (there’s a savings for each day the director can shoot less than the budgeted number of hours—see Figure 15.3). Alternative Line Producer - Oh. I’ll have the accountant make a schedule of the costs and you can check them.

I think you’ve got the idea. You need to pose your creative questions in terms that the financiers can work with and understand. It’s a matter of understanding the translation of creative impulses into costs and controls that Walk The Talk can provide.

Chapter 8 — Translate Ideas Into ‘Cost Talk’


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Once, early in my career, I was flattered to be asked to dinner by a Studio Executive. This particular ‘Independent Studio’ Executive knew how to put together independent financing packages and had a groundbreaking history educating the banking system about the financing of film productions. I was impressed with his credentials. So, when he invited me to dinner I did so like a lamb to the slaughter. After a cocktail, a glass of wine with dinner, and a fine aperitif he told me that he would be moving some money in/out of the productions bank account as part of his dealings with the bank for year-end and financing reasons. He repeated several times that any transfers out would go right back into the bank account within a week. It all sounded pretty cool. They were the producers and, even though the funding came directly from the financiers, they were the signing officers on the bank account and I felt like they had the right to shift some funds. I told the Studio Executive that I would record any banking movement of money, so that anyone could see it. He had no trouble with that. However. After the money shifted out of the bank account and didn’t shift back in I started to worry. The Independent Studio Executive made promises that never happened.

Early In My Career I Was Flattered—No More

Story #4

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Story #4

Don’t Let Studio Executives Flatter You

(Continued) After a week I told the Studio Exec that I needed money to meet payroll; so, he put just enough in the bank account to cover the payroll. Then I told him that I had checks that needed clearing and he said, “Which ones?” So, it became clear that I needed help from the financiers – which, much to my surprise, was not very forthcoming. It seems that controversy is not encouraged when the players might have some influence. What did I learn? …NEVER let yourself be affected by the sweet talk of an Studio Executive, especially if they’re not part of a Major Studio. Know the ropes and think with what you see, not with the promises.

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PART II

BUDGET CREATION

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What Part II Is About This Part IS NOT about detailed budgeting technique. It introduces the categories and general terms of the budgeting process. It starts with very general budgeting examples and graduates to a level where the reader can Walk the Talk with budgets using the generally heard terms used by Producers everywhere. More importantly, the reader gets the idea that armed with this general knowledge of budgeting one can survive the onslaught of comparing the budget (as fine tuned in pre-production) to the actual costs of film production.

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There really are “A”, “B” and “C” lists at the Major Studios. I’ve actually seen the list myself at one of the Major Studios. Here’s a story about getting “C” listed. This didn’t happen to me, but it’s a story that was related directly to me by the person affected. I’ll refer to this person as the Production Executive, to save him from any further pain. The Production Executive was working on location on a relatively high budget film production. It was a big, busy production with construction happening in several locations. Well, the Director decided to befriend the Construction Manager. The flattered Construction Manager agreed to help the Director out by having lumber, construction supplies, dropped off at his summer home location. The lumber and supplies were at the production’s lower cost rate and would be a big help to the Director. The pain comes in when neither the Director nor the Construction Manager told the Production Executive about it. The Construction Manager prepared purchase orders for the materials (again, with no notation on the purchase orders that it was a private matter for the Director). The Production Executive saw that the Construction Materials costs were a little over, and reported it in the usual fashion, but missed the fact that several Purchase Orders were for materials delivered to the Director’s personal summer home.

Story #5

Don’t Get Yourself “C” Listed

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(Continued) When the Studio’s financial auditors showed up for their usual audit of the film production, some things didn’t make sense and when they pulled and tugged at some of the reasons for the lumber and materials purchased, it all came to light. Of course, the Director immediately apologized and said it was all a mistake (perhaps the invoice was still coming to him?); the Construction Manager disappeared into a, “It’s between the Director and the Accounting Department”. So, since the proverbial manure does run downhill, the Production Executive got “C” listed by the Studio and could only work thereafter on the occasional TV low budget show, provided nobody else of any experience was available. I have personally seen the “A”, “B” and “C” lists at one of the major studios – they do exist for all positions and you need to know they exist. I’m telling this story to emphasize the Studio’s point of view—the Studio views money as VERY important! The Studio expects that you fully understand the relationship between your contribution to the film and the money that you spent (or that you let slip through your fingers) to get that contribution. Don’t allow yourself the luxury of ‘going through the motions’. Understand what you’re doing. Anything less could get you “C” listed.

Don’t Get Yourself “C” Listed

Story #5

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You can easily fill a dumpster with books written about budgeting for various aspects of business and film production. Unless you want to become a Production Manager, you really don’t need that much information. The purpose of this chapter is to give you a general understanding of budgeting. It sticks just to the budget ‘talk’ that you really need to know. A budget is simply an amount of money needed, or made available, for the purpose of producing a film/TV show/documentary/commercial/etc. On the opposite page is a Summary Budget (often called a ‘Budget Topsheet’). Have a look at the four major categories. Review the categories and get a ‘feel’ for the types of account descriptions that are listed. Don’t spend too much time on it right now, we’ll be spending more time on it later. The full process of budgets and costs travels the following simple course of events: 1.Budget Preparation During Pre-Production 2.Final Approved Budget (Just Before the Shoot) 3.The ‘Cost Report’ Process Starts (The Cost Report compares the projected known costs with the budgeted costs on a line-by-line basis). Budget Preparation — With the help of the Producer, Production Manager and Department Heads, the accountant puts together a detailed budget that will accommodate the shooting schedule. There are 4 major sections of the budget (see the ‘Budget Topsheet’ on the opposite page).

Chapter 9 — Budget Creation—The Basics

You Can Fill A Dumpster With Books About Budgeting

The Budget is the

STANDARD. It is the

point of reference for

any analysis of film

production costs. It is

a major factor in

considering your

PASS/FAIL RATIO.

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"NO BIG DEAL BUDGET" I IATSE BUDGET - June 20, 2006 DIRECTOR: John Gaskin SCRIPT DATED: Unofficial Rev. of 4/22/06 EXEC PRODUCER: Shoot: New York 48 days/Tulsa 2 days PRODUCERS: Tulsa Travel 2 Days/Prep 1 day LINE PRODUCER: HOLIDAYS: 2 Holidays during shoot

Labor Day (9/1) off between NY & Tulsa POST: 24 Weeks

Acct# Category Title Page Total 1100 STORY RIGHTS 1 $ 387,500 1200 WRITER $ 2,136,875 1300 SCENARIO MISCELLANEOUS $ 17,759 1400 PRODUCER $ 951,888 1500 DIRECTOR $ 2,201,671 1600 CAST $23,387,377 1700 BITS, DANCERS, STUNTS $ 479,001 1800 ATL TRAVEL & LIVING 23 $ 948,063 TOTAL ABOVE-THE-LINE $30,510,133 2200 EXTRAS & STAND INS 30 $ 371,571 2300 PRODUCTION STAFF 33 $ 1,008,239 2400 WARDROBE 39 $ 908,758 2500 MAKEUP & HAIRDRESSING 43 $ 232,052 2700 CAMERA 45 $ 905,768 2800 PICTURE FILM/DAILIES 48 $ 403,852 2900 SET DRESSING 48 $ 778,833 3000 ACTION PROPS 53 $ 168,942 3100 PICTURE VEHICLES 54 $ 5,100 3300 SET DESIGNING 54 $ 379,580 3400 SET CONSTRUCTION 56 $ 993,202 3500 SET STRIKE 61 $ 48,014 3600 VIDEO PLAYBACK 61 $ 92,120 3700 PRODUCTION SOUND $ 191,193 3800 SET LIGHTING $ 638,460 3900 SET OPERATION $ 733,090 4000 FACILITIES $ 337,463 4100 MECHANICAL SPECIAL EFFECTS $ 113,165 4200 TESTS & REHEARSALS $ 8,840 4300 LOCATIONS 71 $ 721,436 4400 TRANSPORTATION 77 $ 1,150,118 4500 SECOND UNIT 83 $ 555,694 4700 PLATE UNIT 94 $ 0 4900 BTL TRAVEL & LIVING 94 $ 902,304 TOTAL SHOOTING PERIOD $11,647,795 5000 SPECIAL PHOTO/VISUAL EFFECTS $ 20,000 5100 PROJECTION $ 31,539 5200 EDITING $ 949,597 5300 TITLES $ 75,500 5400 MUSIC $ 1,069,682 5600 POST-PRODUCTION SOUND 113 $ 793,504 5800 PREVIEW EXPENSE 115 $ 50,000 5900 FILM LAB EXPENSE 115 $ 222,132 TOTAL POST PRODUCTION PERIOD $ 3,211,953 7500 INSURANCE & MEDICAL $ 798,213 7700 PUBLICITY $ 45,316 7800 MISC UNCLASSIFED EXPENSES $ 57,905 7900 CERTIFICATES & ROYALTIES 117 $ 20,250 TOTAL OTHER $ 921,684 TOTAL ABOVE-THE-LINE $30,510,133 TOTAL BELOW-THE-LINE $15,781,432 TOTAL ABOVE & BELOW-THE-LINE $46,291,566 GRAND TOTAL $46,291,566 No Big Deal

Above-the-Line: Writer, Producers, Directors Cast & Stunts and their Travel/Living.

Shooting Period: Crew & Extras labor and all shooting related costs.

Post Production: All Editing, Music, Titles, Visual Effects, etc. mostly completed AF-TER the shooting period is over.

Other: Insurance, Publicity, Medical, etc.

Figure 9.1


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Quick Budget Example For A Crew Member

Here’s an example of a crew member being budgeted for 10 hour work days during the Prep Period and for 13 hour work days during the Shoot Period. Note the difference between ‘Worked Hours’ and ‘Pay Hours’. Worked Hours are the actual hours that the crew member is expected to work (excluding lunch hour). The ‘Pay Hrs’ are discussed in the box

below.

The weekly ‘Pay Hours’ of 80 Hrs multiplied by the hourly rate of $31 = $2,480/Week.

The term ‘Pay Hours’ is a short-cut way of thinking about overtime. It’s used everywhere in the Film ‘Biz, so let’s get it straight. As you’re following through my reasoning below, refer to “Work 10Hrs/Day in Prep” section in Figure 9.2 above. Most people think of wages as 8 Hrs x $31/Hr (or, whatever the hourly rate is) plus the overtime as 2 Hrs x $31 x 1.5. = (8x$31)+(2x1.5x$31)=$341. A short-cut to calculating wages is to think of the hours as 8 x 1 as the straight time portion of pay hours, then add 2 Hrs x 1.5 = 3 more pay hours for a total of (8 + 2x1.5)=11 ‘Pay Hrs’ x $31/Hr. = $341. It’s simpler to multiply the OT factor by the hours instead of the hourly rate. In our example we’re budgeting this crew member for 55 Pay Hrs dur-ing Prep and 80 Pay Hrs during Shoot—a very usual number of hours.

Also known as the ‘Gaffer’. Figure 9.2


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The 4 sections are: -Above the Line -Shooting period (also called Below the Line by old-timers) -Post Production -Other

The “Amount” column refers to the amount of “Units” (that is, the amount of Hours, Days, Feet, Weeks or just ‘Allow’ if there isn’t a specific unit). The ‘X’ is used primarily to reflect the number of people involved. Rather than saying 42 Mandays, you could say 7 Mandays utilizing 6 men. Then the ‘X’ would contain the number 6, representing the 6 men. Also, if you have a foreign currency, like Euros, and you want to represent the budget in US$ only, then put the exchange rate in the ‘X’ column. (It is the usual practice to present the budget in one currency, US$.) The ‘Rate’ is the dollar rate that matches the ‘Unit” - if it’s hours, then the rate would be $X/Hr. If the unit is days it’ll be $X/Day, etc. The ‘Subtotal’ column is the result of multiplying the columns by each other : Amount x ‘X’ x Rate = Subtotal.

Budget Example—’Movie Magic Budgeting’© Style

This is presented in a format used by a very popular budgeting software. Below are some definitions of the terms used in this format (just in case you’ve never used this software before).


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Final Approved Budget — When the Studio/Financiers are satisfied with the budget, it is officially approved and the funds are made available (usually on a weekly basis). The “Final Approved Budget” is an agreement by the Director, Producers, Studio Executives, Production Manager and the Accountant that the script can be produced on film for that amount of funding. The budget is intended to be a direct reflection of the final shooting schedule. Every time the script says something simple like “Joe looked at the clock” or as complex as “Dawn in the Desert” all of the associated costs for that activity should be detailed in the budget. Furthermore, every aspect of the script that has been detailed by the First Assistant Director through the various reports that assist in organizing the shoot should be detailed in the budget. When the Final Approved Budget is signed off by us all (the Director, Producers, Financiers/Studio Executives, Production Manager and the Accountant) it is an attestation that the budget and the shooting schedule and the script are all dynamically linked. So, you need to contribute to the “Final Approved Budget” in any way that you have the authority to do so. As a director, feel free to insist on ample budgeted working hours for the crew as well as for the more obvious elements of cast, stunts, special effects, camera cranes, etc.

Once the Budget is Approved, the Cost Report Starts


When the Final Approved Budget is

signed off by us all it is an attestation that

the budget and the shooting schedule and the script are all

dynamically linked.

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If you are a Production Manager, or crew member who has been asked to present a budget, you should know how to present a Departmental Budget in a format that is familiar to the Financiers/Studio Executives, Production Accountants, etc. See Chapter 17 for an example of a Budget of a ‘Small Unit’ to shoot a “New York Alley Scene”. The ‘Cost Report’ Process Starts — Once the budget is approved by the Studio/Financiers the ‘Cost Report’ process begins. This is much like a financial report card. It compares the actual costs with the budgeted costs on a line-byline basis. ‘Under Budget’ is good and ‘Over Budget’ is bad. If you have more Under Budgeted funds than Over Budgeted funds you can request to use that funding for your creative will. This area of Cost Reports is covered extensively in Chapters 21 to 30.

In summary, the great body of detail called budgeting and cost reporting can be narrowed down to a review of the important elements. From the viewpoint of a Producer or Director those elements are:

1.Identify those budgeted costs that ‘Go Directly Into the Negative’ - That’s a common phrase that stands for any cost element that can be easily observed on the final screening of the film. As much as possible, budget for more than enough cast, stunts, background extras, special effects (if applicable), music and any computer graphics shots.

Under Budget is Good, Over Budget is Bad


This (Cost Report) is much like a financial

report card. It compares the actual

costs with the budgeted costs on a

line-byline basis. ‘Under Budget’ is good and ‘Over Budget’ is bad.

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2.Ensure there are a significant number of Worked Hours budgeted for the crew in the “Shooting Period” budget (often referred to by the old-timers as the “Below-the-Line” budget).

3.Ensure the Departmental Budgets comply with

the Director’s vision as represented by the ‘Shooting Schedule’ - See Chapter 11 for a definition of the Shooting Schedule. This would include such things as the number of Background Extras, the number and types of Crane Shots, the Construction labor and material costs of the sets, the number and types of Stunts, etc. Ask someone to point out the budget lines that interest you and review them for reasonableness – always look for yourself; don’t simply trust a hurt look.

4.Pay attention to your Report Card—the

weekly Cost Report. The weekly Cost Report is a report card that measures how well your actual costs are doing as compared to the Final Approved Budget. Pay enough attention to it to be able to use it to your advantage. Always keep in mind that you’re trying to do better than the budgeted number of shooting hours per day. Always try to beat the X number of ‘whatever’ budgeted (number of stunt days, number of crane days, number of background, etc.) without sacrificing the vision of the Director.

5.Treat the savings as money in the bank which

can be used to enhance the final film that makes it to the theater. When those moments of inspiration come, you won’t be caught flat footed without a solution.


When The Budget Ends, The Cost Report Starts

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45

The “Final Approved Budget” is usually a complex document—at least, it’s complex enough to hide some miscommunications. Either by design, or by error, or by poor communication, the budget may not contain all of the costs that will accommodate the Director’s vision of how and what the Director wants to shoot on film. Just because the Producer says “I love you baby” does not mean that he’s actually gotten approval from the Studio Executives to do that helicopter shot over the Hudson River. I have seen, all too often, situations where the Producer just hasn’t the heart to tell the Director the truth of the matter – that there just isn’t any money for that creative expenditure. The Producer, Production Manager or Department Head will often kid him/herself into thinking that there will be a savings in one area of their budget to offset overages in another area. If this is done without discussing it with their immediate bosses, it’s a recipe for disaster. Oops. Bad idea. There’s an enormous amount of pressure put on certain key positions during the production of a film. Sometimes a career will hang in the balance. Just keep in mind that honest, good people continually work. Those who are not honest and hard working will not work much—this is a truth that I’ve personally seen over the years. (Occasional variances of this seem to occur, but inevitably, it ALWAYS applies.)

‘Talk Truth’ When Going Over Budget

Chapter 10 — Some Budgets May Not Be Truthful

There’s an enormous

amount of pressure put on certain key positions during the production of

a film. Sometimes a career will hang in the

balance.

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Duty is an old fashioned word these days. However, if you like the creative, bustling aspect of film making, you should look up words like duty, integrity and vision. Then do what YOU have to do to help the film Producers, Directors and Studio Execs to continue to make it happen. Set Decorator : “I know that it appears that we

have incurred more costs than the approved budget on the ‘Bathroom’ set. But, we’re sure to be under budget on the ‘Fairground’ set. There’s no way the Director can demand much there (note the effort to make it the Director’s responsibility).”

Usual Response From the Production Manager: “Well, it better not!” Walk The Talk Way: Production Manager: “Let’s look at your original departmental budget,”

as you reach for the file marked Set Dressing. “It shows that the biggest cost on the Fairground set is the $10,000 for the multicolored lights on the Ferris Wheel, etc. Do you really think that the Director will change his mind on that?” you ask with a frown. “I think we have to declare an overage on the ‘Bathroom’ set; then, we’ll go see the Production Designer to try to find a real savings on some other set.” (In other words, you’re in the proverbial ‘Dog House’).

Look at the truth of the matter. If you don’t understand what’s what, just ask more questions about it. It’ll come together eventually.

‘Talk Truth’ When Going Over-Budget

If you like the creative, bustling

aspect of film making, you should look up words like duty, integrity and

vision. Then do what YOU have to do to help the film

producers, directors and financiers to

continue to make it happen.

Chapter 10 — Some Budgets May Not Be Truthful

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Here’s a typical example of how to weaken a career with wrongheaded budget schemes. While working on a relatively low budget production, I usually attended a weekly meeting of the Line Producer, Production Manager and Department Heads. It wasn’t a fast paced production, so these weekly meetings were workable and really helpful in tracking the departmental costs to the approved budget. One week there was a skip in the routine. I wasn’t invited to the weekly meeting – it was cancelled. The Department Heads were scurrying in and out of the Production Manager’s office, but everything had been moving along so well that I wasn’t worried. Two weeks later a heavy flow of unusual special effects invoices started to arrive with no purchase orders. The Production Manager and the Department Head approved them summarily, so I paid them. Within the next week, the Studio Executive, later in the evening, started to rant at the Line Producer about the overruns coming through. The Line Producer, of course, passed it on to me to, “Give him a full analysis first thing in the morning.” I spent a sleepless night, believing that I’d really screwed up, somehow. I finally got out of bed at 5:30 in the morning and raced into the office to have everything ready for the Line Producer to review. Well, as it turned out, the Production Manager and the Line Producer planned for the special effects - during the meeting that I wasn’t invited to. The two of them also stretched their logic into believing that the Studio would really like the result, and summarily forgive them for the cost overruns. Nope. Not in TV productions. At least, not in the lower budgeted TV land that we were working in. The Line Producer lost a good relationship with that Studio. I felt like an idiot for not insisting that I be at the meeting. The show looked a little better with the expensive special effects, but nobody cared. What’s to learn from this story? …The Studio is ‘The Man’ with the purse strings. Always get their approval before spending their money, regardless of how pretty the shot looks.

How to Weaken A Career

Story #6

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Almost all of the Producers that I’ve met are straight-up, hard working, decent people. But, you should know that there are some whacky people out there. Producers usually get paid serious money to produce a movie. You have a right to expect them to be relatively sane – oops, not always so. For example, I had one Producer who refused to accept that there were cost overruns in the Construction of sets. I showed him the account printouts, went over the budget and explained how the costs were running over the approved budget. Nope, “Can’t be,” he said. Okayyyyyy. What do you do in the face of schoolyard logic? I pointed, I insisted, I appealed to reason - and he said that we (the accountants) must be double paying the bills, that it was nowhere near that much over. Hmmmmm. When you’ve done as many shows as I have, double payment of bills is a VERY rare occurrence. I stated that fact to the Producer’s back as he spun on his heel and marched out. The Producer sent the Line Producer to the Accounting office to match the bills with the accounts. Of course, everything was fine. The Producer didn’t believe it and wanted copies of everything made so that he could review it, wherever he happened to be, and at his own convenience. Nuts, huh? It happened. So, what’s to learn from this story? …Whenever you find a whacky producer, (or, any whacky person in any position) never work for that person again and tell your friends why. It’s a surprisingly small community in the film production business and it doesn’t take long for the word to get around – they’ll disappear, and pretty quickly.

There Are Some Whacky People Out There

Story #7

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Let’s take a minute to acknowledge the key reports created by the First Assistant Director after detailed consultation with the Director, the Producers and the final script. The reader should know how these reports interrelate with the flow of money within the film production. I’m assuming that you have a degree of familiarity with these forms; if not, please refer to another text. (If I find that I have a lot of requests for examples, I’ll post them on my web site).

a) The Shooting Schedule – this is the day by day detail of what script lines are to be shot and what elements will be needed to make the shot happen (notations of types of equipment and props required, as well as details of background, etc.) It’s prepared by the 1st Asst. Director in consultation with the Director and Producer. It’s fundamental to the budgeting process. Without it your ‘shooting in the dark’. b) Day-Out-Of-Days – this is the detailed work days planned for every character in the script. All costs of cast and stunts are budgeted from this document, including any travel and hotel costs. c) Extras Breakdown – this is the Director’s idea of the number of background extras and stand-in’s required on a day-by-day basis. Again, it’s fundamental to the budgeting and planning process. d) Other Specialty Breakdowns – additionally, the 1st Assistant Director can pull various types of information out of the full ‘Shooting

Chapter 11 — Link the Script to the Budget

Reports That Link the Script to the Budget

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Schedule’. Each category of information is called a ‘Breakdown’. Depending upon the genre of the show that you’re producing, some breakdowns are more useful than others. For example, on special effects shows where car crashes and animals are used a lot, the ‘Picture Car Breakdown’ and ‘Animal Breakdown’ is essential to the budgeting process.

The reports listed above are part of a Director’s, Producer’s and Production Manager’s arsenal and they are usually very familiar to them; however, translating the associated costs into a budget requires such detailed monotony that it quite often overwhelms (or, underwhelms, if you like) the creative minded people. However, if you don’t at least take a general, overall interest you’ll run the risk of getting bulldozed. Note: For those of you new to film production, see Appendix 8 for an example of a Call Sheet and Appendix 9 for a a Daily Production Report. Knowing some basics about these two forms will save you much confusion and bumbling around. It’ll help you Walk The Talk©

Chapter 11 — Link the Script to the Budget

Reports That Link the Script to the Budget

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Chapter 12 — About Above The Line Budgeting

The First of Four Sections—ATL (Above the Line)

“Above The Line”

The first section is a biggie - ‘Above-the-Line”. Above The Line – includes all costs associated with the Writer, Director, Producers, Cast and Stunts. In keeping with the purpose of this booklet, I want to show the reader how to survive film budgets and costs — within the degree of control of the reader. Therefore, I am avoiding the costs of the Writer, Director, Producers and Stars. All of those costs are driven by the financiers, and the Studios don’t need my help there. It’s the everyday cast (normally called Daily/Weekly Performers, ‘Bits’ and Stunt Performers) that we will address her. I am presuming that you will want to know: -How to communicate with the terms in everyday use, and -How to control, and even manipulate, the ‘Above- the-Line’ costs within the realm of everyday cast.

Grab your hat and cane, here we go!

Figure 12.1

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ATL Basics There are five different kinds of cast costs.

1.Stars – this is the early stages of packaging the project and usually is not a factor in any cost control decisions during the production of a film. The cost of the starts is what it is. 2.Supporting Cast – again, once the deals are in place the only cost control you have is to ensure that the cast do not extend beyond their contracted schedule based on the script and day-out-of-days (See Chapter 11 for definitions). Also, you need to ensure that there are no “forced calls” (that’s when you force the cast member to show up with less than the amount of rest required under Screen Actors Guild rules). 3.Day Performers – this category refers to an actor who comes in for a day or week, or for upgrades of extras to a small speaking role. During the early days of creating the budget not a lot of time is spent on this category. Producers and accountants have a tendency to budget Day Players slightly higher than the minimum scale (scale is the lowest rate set out by the union involved). There’s also a tendency to budget long hours worked for Day Players. The cost of each individual day player is not huge; however, if their hours worked as a whole are well controlled and brought in under 11 hours a day, you can save from $20-$40,000 on a studio feature production.

The Above-the-Line Budget Basics

Chapter 12 — Above The Line Budgeting

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4.Stunt Performers – the unpredictable problems of stunts can make this cost a big over-budget item, or it can make for some big savings, too. This line in the budget is a favorite place for producers to add some “fat”. It’s difficult to argue with the number of stuntmen needed or the stunt equipment needed, etc. So, a prudent producer tosses everything possible into this category in a blind bid to cover unforeseen problems. If you can control the stunt within an inch and get it done fast, there’s a very good chance you’ll save a significant amount of money to use on other things you’d like to do. 5.Fringes (additional payments to Governnments and Unions) – for every dollar you spend on cast/stunt wages, you pay an additional 32% in fringes. This is a significant figure, and one often overlooked. Save $40,000 on stuntmen and day players, do not pass go, get an additional $12,000 in saved fringes. Also, there are many cast who are incorporated. - that let’s the producer off the hook for the government fringes – about 19% of every dollar budgeted for them. Often the accountant will not know if the cast are incorporated in the early stages of the budget process. So, the cast remain budgeted as individuals even though there will be some cases where the lesser corporate rate will be paid out. This is a favorite place to have a “pad” in the budget to offset unforeseen problems.

The Above-the-Line Basics

It’s difficult to argue with the number of stuntmen needed or the stunt equipment needed, etc. So, a prudent producer tosses everything possible into this

category in a blind bid to cover unforeseen problems.

Chapter 12 — Above The Line Budgeting

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What Does the Studio Regard as a Discretionary Expense?

Discretionary Costs: Some costs are considered to be mandatory in order to complete the film production, and other costs are viewed as costs that will ‘polish’ the film - that is, contribute to the quality of the final product in some way, but which aren’t considered vital to the film production. For example, the Costume Designer may feel it essential to dress the star in silk shirts. However, some form of nylon shirt product at 30% of the cost would probably create the same effect on film. The cost differential between the nylon and the silk shirts is a discretionary cost— should you try to please the star by providing silk against her skin? Or, do you think it’s important to impress the rare discerning film viewer?

Non-Discretionary: On the other hand, the costs that are mandatory to shooting the film include hiring the characters in the script, performing the stunts called for in the script, renting the appropriate camera equipment and vehicles in order to shoot the sequences called for in the script, buying film stock, etc. In this section we’re talking about Cast, Stunt Performers, Dancers, etc. that are categorized as ‘Above-the-Line’. We want to determine how to control the ‘Discretionary’ and ‘Non-Discretionary’ costs to our favor.

Chapter 13—ATL Discretionary Budget ‘Talk’

What Costs Are Discretionary Or Non-Discretionary

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Non-Discretionary Budget ‘Talk’

Control Non-Discretionary ATL Costs The Director, Producer and Financiers have a certain vision of the film they want to make from the writer’s screenplay — that vision doesn’t exclude your help. Grasp the moment! Regardless of your position — a Producer, Director, Production Manager, Department Head or Joe Crew Member, you are part of the collaboration of film making. This is your chance to Walk The Talk. Find the Non-Discretionary costs in your particular area. If you’re budgeting, pump them up. If you’re not budgeting, find a way to control those types of costs. It’s to your advantage for the following reasons:

1.Anything controlled gives a better result than something uncontrolled (philosophically speaking, of course.) 2.It’s career crushing to have your area of the film production exceed the cost of the Final Approved Budget for that area. If you have signed off on a budget, either as a Department Head, a Stunt Coordinator, a Production Manager, Director, etc. you MUST NOT EXCEED THAT OVERALL BUDGET. (When you get to the Cost Report Section, you’ll get a very good idea of how you can move money from one Under Budget Category to another Over Budget Category.)

Chapter 13-ATL Non-Discretionary Budget ‘Talk’

Anything controlled gives a better result

than something uncontrolled.

Use Non-Discretionary Costs to Your Advantage

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3.The Studio (or other financier) pushes back hard on costs that are considered to be Discretionary. If there are costs that are easier to defend as non-discretionary, such as cast and stunt costs, then overplay this hand as much as you like. It’s irrefutable that the cast and stunt costs go directly into the film. Also, the Studio Executives can’t refute the fact that you “...want the stunts to make the audience leap out of their seats”, or you want the Director to “...have enough time to work with the actors.” 4.If you end up with more than enough budgeted funds in the non-discretionary costs, you can apply that savings to apply to the discretionary cost areas. (“Yes, you can have the silk shirts. We’ll offset from our savings in the Stunt Budget”, says the Producer to the Costume Designer).

Chapter 13-ATL Non-Discretionary Budget Money


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Example using Non-Discretionary Budget ‘Talk’ To Your Advantage

Below is a table of Cast & Stunt Performer costs

taken from a typical budget. The rates show the cost of the cast and stunt

performers if each performer worked a 10 hour day. The total cost in this example is $80,312

"YOUR FILM"

DAILY CAST/STUNT COSTS FOR THE "BRIDGE SEQUENCE"

A/C# Account Amount Unit X Rate Subtota A/C Total

1482 Cast - Day Performers:*** 10 Hours worked costs $875 per day - see note below.

Pete 3 Days 1 875 2,624 Hilda 4 Days 1 875 3,498 Ford 4 Days 1 875 3,498 4 x Arguing Businessme 2 Days 4 875 6,996 16,616

1484 Stunt Performers:"Bridge Sequence" 5 x Car/Truck Drivers 4 Wks 5 875 17,490 6 x Karate Fighters 3 Wks 6 875 15,741 2 x Drunks in Fight 2 Wks 2 875 3,498 2 x Hookers entangled 2 Wks 2 875 3,498 Adjustments for Stunt Danger Allow 4,000 44,227

Subtotal 60,843 1499 Fringes:

SAG Fringes 13% 1 60,843 7,910 Gov't Fringes 19% 1 60,843 11,560 19,470

TOTAL 80,312$ COST OF A 12 HR DAY (Calculation Not Show Here) 107,136$

AMOUNT SAVED-10HRS WORKED INSTEAD OF 12 HRS 26,824$

Chapter 13-ATL Non-Discretionary Budget Money

Figure 13.1

Note: Both SAG and Gov’t Fringes (see Pg.51) are charged on the la-bor.

A multiplier col-umn—# of trucks, etc.


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I then compared that cost of a 10 hour day ($80,312) with the cost of 12 hour day (the calculation is not shown here). I estimated the cost for a 12 hour day to be $107,136.

You can see that the difference of ($107,136 -

$80,312) = $26,824 is a sizeable sum, which can be utilized by the producer and director in other ways of their own choosing.

If, for example, the stunt sequence for a Bridge

Car Smash was $107,136 (based on a 12 hour day) and you, through good planning and much luck, managed to get your shots in 10 hours, then you deserve more than just a pat on the back. It’s now up to you to suggest ways to apply that savings to other factors that will enhance the ‘look’ of the movie. You may get a warm feeling by saving the production company money; but the real reward comes when you exercise your creative power to enhance the film.

The $26,800 saved in the example above can be

utilized in a Crane Shot, or for a spectacular eye-catching special effect – whatever you like. It’s funding in the bank that has been created by YOU.

Don’t get too concerned about calculating the

details above – that’s why there are Production Accountants.

I have avoided many of the pitfalls in calculating

cast and stunt costs to present my point – that YOU can control the production costs to your own ends. Most of the details that I have avoided aren’t significant and can

Chapter 13 — Non-Discretionery Budget Money

Example– Non-Discretionary Budget ‘Talk’

You may get a warm feeling by saving the production

company money, but the real reward

comes when you exercise your

creative power to enhance the film.

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be picked up by the Accountant – things like rest invasion penalties, early calls for makeup and hair, meal penalties, wardrobe calls, out-of-town travel and hotel costs, per diems, etc. are details that can be ascertained by others.

In summary, here are the key points: – Ensure the budget for cast, background

extras, stunt sequences, etc. has a comfortable number of mandays and worked hours,

– then beat the budget with good planning,

fewer worked hours and reduced mandays. – Be aware of this process so that you can ask

the accountant for estimated savings, – then stake-out that savings for your own

purposes to enhance the film. – Don’t forget about the 30% fringes on top of

the gross payroll. You can utilize that amount as well.

Chapter 13 — Non-Discretionery Budget

Utilize the ATL Budget to Your Advantage

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When a budget is announced as $25Million or $100Million much of that budget is usually Above-the-Line. So the total budget doesn’t necessarily correspond to the degree of difficulty of shooting the script. On a “Big Budget” movie the Above The Line costs could be 50% of the budget. For example, on a big budget film lets estimate the following costs: the Writer ($2Mil), Director ($5Mil), Producers ($1Mil), Stars ($25Mil + $5Mil) and Principle Cast ($10Mil). That adds up to $48Mil. So, on a $100Mil show 49% could be Above The Line. So, it’s enough for you to know that the budget that Variety publishes doesn’t mean very much until you know what is earmarked for ATL (Above-the-Line).

Chapter 14 — ATL Relative Budget Size

Relative Size Budget ‘Talk’

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I went on location with an independent production, believing that the financing would be locked and that there would be no worries there. We were well into the on-location shooting when it became apparent that the money WASN’T about to be locked. The Bond Company kept asking one question after the other. The Producer wanted to know EXACTLY how much money I needed, then sent less than that. It was reaching a point of mutiny with the crew we’d hired at this particular location. Finally after the shooting was finished the American crew went home and my assistant and I had to stay on to wrap up the payroll and outstanding bills. You guessed it. No money arrived to pay the local crew for that last week of shooting! The local service provider started making threats to call the police. This is scary, because in this particular country financial disputes were first referred to the police to determine if the non-payment was purposely entered into, and if so, then I could be part of a criminal charge. For 3 weeks my assistant and I sat in hope, listening to the Producers say, “The money will arrive by this Thursday.” (I kept thinking of those Popeye cartoons where Wimpy is promising to pay on Tuesday for a hamburger today). The Bond Company, although very professional and sympathetic, were still stalling. They just didn’t want to sign the Insurance Bond Agreement – there were just too many holes in the various other agreements that the producers had transacted. The stickler was that without (Continued)

Do Producer’s Ever Lie About The Money Available?

Story #8

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Continued… The Bonding Company signed on to the production, the money would never come! The local service provider was making veiled threats, even going so far as to intimate that if we tried to leave the country they would ask us to be “detained”. They wanted the crew and local suppliers paid first – and so did I. I did some soul searching. Should I quit? What about all those people who the production owed money to? Should I stand by the investors, or cut and run while I could? In the end, my assistant and I decided to stay. By the beginning of the fourth week we didn’t have the money to pay our hotel room. My assistant and I were ready to throw in the towel – we started secretly discussing ways we could sneak out of the country and fly home. In the eleventh hour the Bond Company signed the insuring agreement – finally! I think that it’s a hackneyed phrase to say that we wept with relief, but that’s what we did. We managed to pay the local crew/suppliers in a day or two and boogied on outta there. What’s to learn from this story? …Always trust the Bond Company over the Producer. They’ll give you the straight goods (but sometimes you have to confront them with some very direct questions before leaving to go on location). Go ahead and do it; they’ll like you for it.

Do Producer’s Ever Lie About The Money Available?

Story #8

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The Shooting Period (Sometimes called Below-the-Line) – includes all costs associated with the shooting period. It includes the actual “Production Costs”. It is the mundane and detailed listing of every type of labor cost (hours of Travel, Work, Holidays, Prep, Wrap, etc.), as well as every detail of wardrobe purchases by character, all construction costs by set, all trucks and equipment rentals, etc. etc. etc. There is so much detail in this section of the budget that I am narrowing the field of vision to accommodate most readers. If you are a Production Manager or a Production Accountant you’ll need to be familiar with more detailed information than I can afford to present in this book. Let’s focus instead at the most significant cost—crew labor and the additional ‘fringe’ (that is, the additional government and union amounts that the Producer has to pay over and above the crew wages.) A very large part of being able to Walk The Talk is to

Chapter 15 — The Shooting Period Budget

The Shooting Period (aka Below-the-Line) Basics

“Total Shooting Pe-riod” (often referred to by old-timers as “Below-The-Line”).

Figure 15.1 2200 EXTRAS & STAND INS 30 $ 371,571 2300 PRODUCTION STAFF 33 $ 1,008,239 2400 WARDROBE 39 $ 908,758 2500 MAKEUP & HAIRDRESSING 43 $ 232,052 2700 CAMERA 45 $ 905,768 2800 PICTURE FILM/DAILIES 48 $ 403,852 2900 SET DRESSING 48 $ 778,833 3000 ACTION PROPS 53 $ 168,942 3100 PICTURE VEHICLES 54 $ 5,100 3300 SET DESIGNING 54 $ 379,580 3400 SET CONSTRUCTION 56 $ 993,202 3500 SET STRIKE 61 $ 48,014 3600 VIDEO PLAYBACK 61 $ 92,120 3700 PRODUCTION SOUND $ 191,193 3800 SET LIGHTING $ 638,460 3900 SET OPERATION $ 733,090 4000 FACILITIES $ 337,463 4100 MECHANICAL SPECIAL EFFECTS $ 113,165 4200 TESTS & REHEARSALS $ 8,840 4300 LOCATIONS 71 $ 721,436 4400 TRANSPORTATION 77 $ 1,150,118 4500 SECOND UNIT 83 $ 555,694 4700 PLATE UNIT 94 $ 0 4900 BTL TRAVEL & LIVING 94 $ 902,304 TOTAL SHOOTING PERIOD $11,647,795

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know the fundamental terms used to describe, and control, crew labor. After you’ve left the ‘sexy’ arena of Above-the-Line, you’re stepping into what looks like a very complicated budgeting section—the Shooting Period (oaka Below the Line). Well, it’s much simpler if you focus on the largest cost—crew labor. Budgeted # of Worked Hours:

Usual Way: Director/Producer To Studio Exec – “Uh, how

many hours do you expect us to shoot in a day?” Studio Exec – “Well, we have a policy here at (Hollywood Studio) stated in our Critical Assumptions that we can only …”. You see how the Studio Exec is in the driver’s seat. Regardless of the number of hours normally budgeted, he’ll be tempted to push the budgeted hours down. Walk The Talk Way

Director/Producer To Studio Exec – “There’s a lot of difficult shooting to complete the production on time. We REALLY NEED at least 13 hours of work budgeted for the regular shooting crew, with additional hours budgeted for the crew who have earlier calls, like wardrobe and makeup and hair crew. Any less and I can’t guarantee that we won’t be over budget on a daily basis!” Studio Exec – “Uh, yeah. Sounds right for this type of production. I’ll check the Critical Assumptions.” Now you’re in the driver’s seat .

You really can support a 13 hour day as the norm in


Let’s ‘Talk’ About the Budgeted Worked Hours For Crew

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today’s film production environment. However, the game is to continuously try to accomplish the day’s production in less time than the 13 hours budgeted without sacrificing the vision of the Director. Regardless of your position—whether it be a Producer, Director, Production Manager, Dept Head or Joe Crew Member you will have your opportunities to complete your production in less than the 13 hours budgeted. When you’re successful, you can treat that savings as money in the bank which can in turn be used to enhance the quality of the final film.

Let’s ‘Talk’ About the 13th Hour Worked What makes the 13th hour so bankable is it’s high cost – the following table shows that the 13th hour worked is responsible for 18% of the entire day’s wages. On a “Studio” show in the $25Mil to $40Mil range, there is a significant amount of savings to be generated simply by working a 12Hr day rather

than a 13 Hr day.


COMPARE WORKED HOURS TO PAID HOURS:

Worked PaidHours OT Rate Hours

Worked 1st 8 Hrs 8 1 8Worked 9th to 12th 4 1.5 6Worked 13th Hr 1 2 2Meal Penalty in 13th Hr As Approx'n 1

13 17

Total Pay Hours for the 13th Hour Worked 3

% of The Day Paid For the 13th Hr 18%

Worked Paid % of Ttl Cum %1st 8 Hrs 8 #REF! #9th Hr 1.5 #REF! #10th Hr 1.5 #REF! #11th Hr 1.5 #REF! #

Amount Paid to Union Labor

1st 8 Hrs9th Hr

10th Hr

11th Hr12th Hr 13th Hr

Note that the 13th Hour, if not worked, saves 18% of the budgeted on-set crew costs.

Figure 15.2 A “Meal Pen-alty” is a pen-alty paid when a crew member is not given a meal within a specified period of time.

The 13th Hour Is Very ‘Pricey’

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Let’s ‘Talk’ About $ Saved By Shooting Fewer Hours The chart below shows why director’s such as Clint Eastwood are so loved by the Hollywood Studios. Not only do his movies make money, but he also knows how to shoot the script in a relatively short day. Thirteen hour days are unheard of on a Clint Eastwood set. Let’s assume that the budgeted number of worked hours is 13 hours. If you can, in some way, reduce the number of shooting hours, you can make a surprisingly big chunk of funds available to you. The money that you make available is talked about as “under-budget savings”.

1 Day 1 Week 2 Weeks 3 Weeks 4 Weeks 13thHour $ 5,500 $ 27,500 $ 55,000 $ 82,500 $ 110,000 12th Hour $ 4,200 $ 21,000 $ 42,000 $ 63,000 $ 84,000 11th Hour $ 3,100 $ 15,500 $ 31,000 $ 46,500 $ 62,000 10th Hour $ 2,000 $ 10,000 $ 20,000 $ 30,000 $ 40,000

If you know the ‘Talk’ you can apply those “under-budget savings” in some way which will enhance the Director’s vision. You need to convince the Studio/Financier Executives to “Trade-Off” the savings you’ve created by shooting fewer hours per day for that: - perfect opening crane shot, - the dreamy look of a “Dawn In the Desert” shot, - whatever else will enhance the Director’s vision.


The 13th Hour of Work is Very ‘Pricey’

Note: If the Director avoids shooting on the 13th hour (on a typical Hollywood Studio show) for 2 weeks the production will save about $55,000.

Figure 15.3

...why director’s such as Clint

Eastwood are so loved by the

Hollywood Studios. Not only do his movies make

money, but he also knows how to shoot

the script in a relatively short day.

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Here’s some tips to help you read the above table:

1.Avoid the 13th Hour of shooting for two weeks and save $55,000 which you can use to apply to other film enhancements. 2. Shoot 12 Hours one day and 11 hours the next and take home ($5,500 x 2) + ($4,200) for a total of $15,200—enough for a 100’ crane with operator and a hot head camera for a day.

Note that in general the Shooting Period Costs really tell the story of the difficulty of the shoot.

Shooting Period Costs of $18Million and over is considered quite difficult – there’s lots of sets being built and lots of equipment and labor being paid for. Not that a show with a smaller budget is a piece of cake; often it’s just the opposite. However, for our purposes, you should have an understanding of the relative sizes of budgets and how their related budgets are normally thought of as small, medium or big budgeted films.

The following table is my estimate of what I would consider to be a smaller production, a medium sized production and a big production, based upon the Shooting Period Budget and/or the Number of Scheduled Shooting Days.

Chapter 16 — Relative Size of the Shoot Period Budget

The Relative Size of the Shooting Period Budget

Very Small Smaller Medium Big$ Range Shooting Period $1 - $8Mil $9-$18Mil $19 - $35Mil Over $35Mil

Shooting Days Range 15 - 35 Days 36 - 45 Days 46 - 55Days Over 55 Days

Figure 16.1

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Example-Budget For A Small Unit

Chapter 17 — Walk The Talk,Participate in the Budget

“Pick-Up” Shot

Purpose: The purpose of this schedule is to estimate the cost of a small unit to shoot "New York Back Alley" w here the camera w ill start from 30 feet up and sw oop dow n to the alley gutter and through to the busy s

Assumptions:1.It's assumed that a sound mixer and boom operator w on't be required and there w on't be any cast.2.It is assumed that the travel and shooting w ill take 12 hours.3.It is assumed that approximately 4,000' of f ilm w ill be shot.4.Some minimal lighting and rigging w ill be necessary, w ith a generator & operator on hand.5.Some crow d control w ill be necessary to handle gaw kers. Also, a 27'Titan Crane & operator w ill be

Acct# Description Amount Units X Rate Subtotal Total

1st Assistant Director 1 Day 1 1,200 1,200 2nd Assistant Director 1 Day 1 1,200 1,200 Key Set PA 1 Day 1 150 150 Set P.A.'s 1 Day 3 130 390 Parking PA's 1 Day 4 90 360 Payroll Fringes 30.0% 1 3,300 990 4,290

Director of Photography 1 Day 1 1,200 1,200 Camera Operator 14 Pay Hrs 1 55 770 1st Assistant Cameraman 14 Pay Hrs 1 39 546 2nd Assistant Cameraman 14 Pay Hrs 1 26 364 Camera Equipment (borrow ed from Main Unit package).Payroll Fringes 31.2% 1 2,880 899 3,779

Raw Stock 4,000 Feet 1 0.72 2,880 Developing 4,000 Feet 1 0.15 600 Printing 4,000 Feet 1 0.32 1,280 4,760

Gaffer (Chief Lighting Tech) 14 Pay Hrs 1 35 490 Best Boy Electric 14 Pay Hrs 1 31 434 Electrics 14 Pay Hrs 2 29 812 Generator Operator 14 Pay Hrs 1 35 490 Lights and Cable Rentals 1 Day 1 1,200 1,200 Payroll Fringes 31.2% 1 2,226 695 4,121

Key Grip 14 Pay Hrs 1 3 42 Best Boy Grip 14 Pay Hrs 1 31 434 Company Grip 14 Pay Hrs 1 29 406 Crane Operator 14 Pay Hrs 1 35 490 Techno Crane With a 30' reach 1 Day 1 750 750 Delivery+Pickup of Titan Crane 1 Allow 2 150 300 Frames/Gels/Scaffolding 1 Allow 1 750 750 Payroll Fringes 31.2% 1 1,372 428 3,600

20,549$

Note that the $3,300 is the sum of the labor subtotals.

Note that this indicates 2 Electricians w orking.

14 Pay Hrs is calculated by 8 Hrs + 4Hrs @ 1.5

14

Figure 17.1

68

Do you see a labor category missing?- See Pg. 68.

Do you see the wrong rates in this section? (Hint: look for highlighted rates)- See Pg. 68.

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DON’T LISTEN—LOOK FOR YOURSELF! INSIST that you participate in the budget process. For example, if you, as a Director, had asked for a specific crane shot ask to see the budget page printed out that reflects the rental of the Crane, the Crane Operator, etc. By simply insisting on a review of specifics before the Final Budget review with the Studio you can get some control over your area of the budget process. The principle of actually testing the budget (before its final approval) applies to anyone who has responsibility for costs in any area of the film production. If you feel intimidated by the task of reviewing sections of a budget, take a moment to review the sample budget on the opposite page. Do you see how the columns are arranged? The chances are very high that you’ll be referring to a document with these column headings as it is commonly used. The “Amount” column refers to the amount of “Units” (that is, the amount of Hours, Days, Feet, Weeks or just ‘Allow’ if there isn’t a specific unit). The ‘X’ is used primarily to reflect the number of people involved. Rather than saying 42 Mandays, you could say 7 Mandays utilizing 6 men. Then the ‘X’ would contain the number 6, representing the 6 men. Also, if you have a foreign currency, like Canadian dollars, and you want to represent the budget in US$ only, then put the exchange rate in the ‘X’ column.

Chapter 17 — Walk The Talk,Participate in the Budget

Insist on Your Participation

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The ‘Rate’ is the dollar rate that matches the ‘Unit” - if it’s hours, then the rate would be $X/Hr, if the unit is days it’ll be $X/Day, etc. The ‘Subtotal’ column is the result of multiplying the columns by each other : Amount x ‘X’ x Rate = Subtotal. Now take a quiet moment to review the “Small Unit” schedule on Page 66. Look at the ‘Rate’ for the Fringe line items. Can you see where the figure comes from?

Answer: The ‘Rate’ for the Fringe line item comes from the labor ‘Subtotals’. For example, the $3,300 is the sum of the first three lines of labor.

Can you think of any categories that may be missing in Fig.17.1?

Answer: There are no drivers and no equipment trucks. If you question that the Production Manager may say that the driver’s and the trucks are going to be borrowed from the Main Unit. If you’re working in New York the Teamster Union will make that very difficult. Although, it may be possible with other locations.

Can you see anything odd with the rates in Fig. 17.1?

Answer: Here’s a hint - I’ve highlighted the three areas:

1)The rate given for the 2nd Asst Director is the same as the 1st Asst Director. That should never happen.

2)The rate for the Key Grip should be $34.00/Hr. There’s a typo there at $3.00.

Q & A On the Small Unit Budget Example

Chapter 17 — Walk The Talk, Participate in the Budget

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3)A 30’ Techno Crane is more in the range of $2,000 for a day (or, less on a weekly basis, depending on the demand, it could be anywhere from $5,000/Wk to $8,000/Wk).

HANDY BUDGETING TABLES YOU CAN USE Now I am going to stick my neck out—way out. There are many different combinations of costs associated with any film production venture; however, there are sweeping gestures that can be made. The following tables are simply an attempt to give the reader some idea of the costs involved with certain kinds of ventures. Things like: Crane equipment rentals. Background extra costs (in chunks of 50 extras at

a time). Cost of Shooting an Extra Day (whether the day

is a regular work day, or if it’s a 6th day, or a 7th day).

Construction Costs by Square Footage of Walls and Windows, etc.

A small ‘2nd Unit’ to pick up shots. Helicopter Shots All of these types of costs can be categorized in tables within certain ranges. Again, the purpose of these tables are only to give you an idea of the general costs, not as the ‘final word’ on the amounts. Each project will need the details determined for that time and place; these tables just give you a conceptual idea of the costs.

Handy Budgeting Tables

TECHNO CRANE


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Handy Budgeting Tables - EXPECT VARIANCES

Purpose:The purpose of this table is to give the reader an idea of Budgeting Costsfor various categories. It is NOT meant as the 'final word'.

Description Amount Units X Rate Total

Crane Rentals (Includes Local Delivery In and Out)Techno Crane with about 30' reach 1 Week 1 7,000 7,000 Phoenix Crane 1 Week 1 3,000 3,000 Titan Crane 1 Day 1 1,500 1,500 150' Condor 1 Day 1 3,500 3,500 60'Condor 1 Month 1 3,500 3,500 Camera Car 1 Day 1 1,300 1,300

Background Extras Inclusive of 32% SAG/ 18% NonU. FringesSAG Union Extras @ $207/12Hrs 1 U-Extr 50 273 13,662 NonUnion Extras (after first 50),12H 1 NonU- 50 142 7,080

Cost of Shooting An Add'l Day (Say 50 Extras + Location Costs) Note this does not include additional Cast Costs nor Add'l Special Effects.

Low Budget Day, With IATSE Unio 1 Allow 1 75,000 75,000 Medium Budget, With IATSE Union 1 Allow 1 175,000 175,000 High Budget Day, With IATSE Unio 1 Allow 1 225,000 225,000

Construction Costs By 'Flats", Windows, Doors, Flooring Note: Add more for fancy wallcoverings, mouldings, etc.So, a plain room with a floor space of 16' x 20' (10 Flats), 2 doors & 2 windows costs:

10 Flats 1 Flat 10 350 3,500 2 Doors 1 Doors 2 400 800 2 Windows 1 Windo 2 350 700 Simple Tiles-Checkerboard Style 1 Allow 1 1,000 1,000 Cost of a plain room 6,000$

Cost of a Small '2nd Unit' To Pick Up ShotsVery Rough - Varies With Local Labor & Equip't Available - e.g., bringing equip't from LA to Ohio Note: Without Sound, No Cast, With Crane and Lighting

Low Budget Day, With IATSE Unio 1 Allow 1 15,000 15,000 Medium Budget, With IATSE Union 1 Allow 1 25,000 25,000 High Budget Day, With IATSE Unio 1 Allow 1 35,000 35,000

Phoenix Crane

Titan Crane

Figure 17.2

Table 1

Table 2

Table 3

Table 4

Table 5


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NOTE ON THESE TABLES: The values in these tables were accurate at the time of writing, particularly for the East Coast. However, the purpose of these tables is not precision. The tables are there to give the reader some familiarity in how to Walk The Talk. Simply knowing that you can respond with an accurate range of figures puts you in much better control than you ever were before. So, by all means continue to challenge these figures, and create a budget which can be successfully produced.

Handy Budgeting Tables - EXPECT VARIANCES

Cost of a Helicopter Shot HELICOPTER & MOUNTS COSTS:

Twin Engine Helicopter 5 FlightHrs 1 1,300 1,300 Pilot (SAG) 1 8Hr Day 1 1,600 1,600 Tyler Middle Mount W/Stabilizer/Insta 1 Day 1 1,230 1,230 Air-To-Ground Radios 1 Day 3 300 900 Helicopter Searchlight W/Shipping 1 Day 4 540 2,160 Helicopter Landing Fee 1 Day 1 90 90 Helicopter Parking Fee 8 Hrs 1 70 560 Payroll Fringes 30.0% 1 1,600 480

SPACECAM COSTS:Camera Operator 1 Day 1 1,800 1,800 Technician 1 Day 1 550 550 Operator/Technician Travel In/Out 2 Days 2 550 2,200 Spacecam Rental-Travel In/Out 2 Day 1 1,500 3,000 Spacecam Rental-Shoot W/Shipping 1 Day 1 3,600 3,600 Payroll Fringes 30.0% 1 4,550 1,365

INSURANCE: Estimated Additional Insurance Cost for an Aerial Unit 5,000 COST OF AN AERIAL UNIT TO SHOOT THE CITY SKYLINE 25,835$

Cost of a Crane With Operator150' Crane Rental (See Table 1) 1 Day 1 3,500 3,500 If Need to Bring To Distant Location Travel To/From Location 2 Days 1 3,500 7,000 Crane Operator,Including Fringes 3 Days 1 450 1,350 Fuel/Permits/Travel Costs 1 Allow 1 500 500 Subtotal-Costs to Bring to Distant Location 8,850 Cost of a 150' Crane With Operator 12,350$

Space Cam,Side Mount

Figure 17.2 Table 6

Table 7


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Walk The Talk Way: Just in case you’re not yet comfortable with ‘The Budget Talk’, here are some very good direct questions, and suggested responses you can use and apply to the subject of Budgets and Costs:

Question: What are the budgeted number of worked hours for the crew?

Answer: If it’s less than 13 worked hours and you’re

shooting the show anywhere in North America, you could be in trouble.

Question: Are there any plans to build sets? If so,

where are the Production Designer’s plans and construction budgets?

Answer: You want to ensure that the Production

Designer is using the experience of a good Art Director and Construction Estimator in coming up with the construction estimates. If you want to get into more details on Construction budgets, see the handy construction table in Chapter 17.

Chapter 18 — Simple Ways To Control The Money

Some Suggested Questions & Answers

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Question: .Have the Departmental Budgets come in from the Wardrobe Designer, Set Decorator and Props Master, etc.?

Answer: If so, you should have meetings with

each of them. Ask if they feel comfortable with the numbers. They may have been arm wrestled into accepting unreal budgets from the Producer.

Question: Has the Director of Photography

chosen his Gaffer and Key Grip yet? Have any of these key people prepared their required equipment lists?

Answer: You seldom get any real equipment lists

until after the ‘Tech Survey’, late in the Prep period; however, this kind of questioning keeps everyone honest.

Chapter 18 — Simple Ways To Control The Money

Some Suggested Questions & Answers

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General Information About Post Production Period This section of the budget includes all Editing, Music, Titles, Visual Effects, etc. This area is usually heavily controlled by the Studio from the outset. It is in their best interests to ensure that there is enough funds to have good music, good visual effects and editing, etc. The most control you can hope for is to coordinate the requirements of the Director, Producer and Financier (within your particular sphere of influence) toward an agreed upon budget as declared by the experts in those areas. The Studio usually have personnel who have the experience in these areas and who can be relied upon to give you the ‘straight goods’. They usually have

particular ‘Delivery Requirements’ that are central to their budgeting needs. The Visual Effects can be argued for, especially if there’s any kind of special effects involved in the script. There’s such a variance in VisFX needs that there’s no standard cost that I can help you with. Ask for quotes for each specific shot.

Costs of the Post Production Period

Chapter 19 — Post Production Period

Other Costs Post-Production Costs

Figure 19.1

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General Information on the Final Budget Category (‘Other Costs’ Budget Category) This section of the budget includes costs like Insurance, Publicity, Medical, Legal, etc. Again, the most control you can hope for is to coordinate the requirements of the Director, Producer and Financier (within your particular sphere of influence) toward an agreed upon budget as declared by the experts in those areas (the Studio usually have personnel who have the experience in these areas and who can be relied upon to give you the ‘straight

goods’). As always, keep alert - the Insurance, Medical and Legal costs could drown you, so if you are a Producer or Production Manager, it is in your best interests to make sure the Studio/Financiers are involved in the decision making in these areas.

Walk The Talk Way You, when talking about Insurance, Publicity, Legal Expenses, etc., say “...we should discuss these insurance issues with the Studio and get their input.”

‘Other’ Budget Costs—The Final Budget Category

Chapter 20 — ‘Other’ Budget Catepgory

‘Other’ Costs

Figure 20.1

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Would a Producer actually steal from a film production? I’d say that 99 out of 100 wouldn’t. But…it happens. Here’s a true story. I was working on location with a very influential Producer (at least, he was influential at that point in time, with that particular Studio) who was being paid a sizeable amount of living allowance. However, he felt that it wasn’t enough. So, when he rented a very nice house in a very expensive district he got the bright idea to show it as a production expense – he called it a Set Dressing lockup. He put the Unit Production Manager in a head-lock and covertly, but emphatically, made it real that if he/she said anything about it he/she would be fired. Well, when the payment of over $20,000 came across my desk I thought, “There’s no way that a Set Dressing lockup would be in that expensive part of town.” So, I poked and prodded the UPM until he/she caved and told me the story. He/she swore that if the Studio found out about it we would both get fired by the Producer. What could I do? The UPM was a friend of mine. Should I call the Studio anyway? After a brief 20-minute talk to myself I called the Finance Director at the Studio and laid the whole sad story at his feet. Luckily, this Finance Director was pretty sane. He understood the degree of influence that the Producer had at his Studio at that time, and he agreed that the UPM’s professional life on our film production would be shortened considerably if the Producer’s transgressions were revealed. After some deliberation, the Finance Director put a lid on the whole affair until late in the post-production period when the UPM and I would be off the production. He asked only that I send him copies of the check, the backup and where the charge was buried, and that he’d take it up a couple of months after the UPM and I were off the show. I’ve seen that Producer’s name mentioned only once since then. He’s clearly lost the power he once had – all for an amount that was a small after-tax fraction of his fee to produce the show. It’s a sad example of knowing how to talk-the-talk but not knowing how to Walk The Talk.

Story #9

Would A Producer Steal From A Production?

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The game of Cost Reporting is the game of honestly

PART III

YOUR REPORT CARD (Presentation of the Costs Can Make-or-Break Your Career)

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What Part III Is About This Part introduces the Weekly Cost Re-port — the most important (and least known) document prepared during film production. This document is regarded as confidential by the Studio/Financiers. In most cases, only Production Managers, Accountants and Producers ever get to see this report. It is a career maker or breaker. It measures how the depart-ment, the location, the production, etc. is doing as compared to budget. When you’ve heard, “They’re over-budget” , it’s the Cost Report that first communi-cated that as a fact. Knowing how to read and influence the Cost Report is the key to surviving and expanding in the film production business. This part has many simply presented examples, as well as several practical problems to get a greater familiarity. Note: The reports & amounts are created to give you some familiarity only. The figures are based on my experience and are presented realistically enough for you to get acquainted with Cost Re-ports. The amounts are not factual.

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The purpose of the Cost Report is to predict the final cost (called the ‘Estimated-Final-Cost’) of the film production and to compare that cost with the approved Budget. It’s common to hear Producers and crew mix-up the terms ‘Budget’ and ‘Cost Report’. They are two different processes entirely. The Budget is prepared prior to the shoot period (called the pre-production, or ‘prep’, period). The reporting structure has been explained in Chapter 9, and varies only slightly from Studio to Studio, or even from country to country. The Cost Report follows the same structure as the Budget, using the exact same category, department and account number breakdown, and is prepared weekly during the film’s production. For a full Cost Report example, see Appendix 7. The Weekly Cost Report takes the actual costs spent to date, adds to it the ‘Estimates-to-Complete’ (as projected by the Accountant, Production Manager and Producers) and compares the result (called the ‘Estimated-Final-Cost’) with the Budget. Keep in mind that the budget was prepared in the pre-production time period, so there will always be some cost differences with the actuality of the shoot. In order to ensure that the comparison between budget and projected cost is accurate, it is up to everyone, but especially the Accountant, to capture costs in the same account structure as defined in the budget.

Chapter 21 — The Weekly Cost Report Introduced

The Most Important Document During Film Production

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offsetting the projected ‘Over-Budget’ costs with the projected ‘Under-Budget’ costs. It’s not unlike “Directing”, only you’re “Directing” the money. If there are no ‘Under-Budget’ costs projected anywhere, then it is up to you as Producer, Director, Department Head, general crew member, etc. to come up with proposed changes to the shooting direction that will result in real projected cost savings. Of course, it is the prerogative of the financier/Studio to approve the ‘Over-Budget’ costs. The additional costs may be thought to enhance the revenue earning capacity of the film to a greater degree than the total additional costs. It’s not uncommon to hear in the news about a wildly Over-Budget movie like ‘Titanic’ or ‘Water World’. In reality, there aren’t many films that get that far out of hand. With only two or three exceptions, most of the films that I’ve worked on have been produced for amounts in close proximity to the Approved Budget. In my world, it certainly is a ‘career breaker’ to fail to report Over-Budget costs when they are occurring (or, if not yet occurred, are predicted to be over due to the shooting direction). Even more to the point, it’s a career breaker to have not foreseen those Over-Budget costs, regardless of very good reasons offered up by the Accountant, Producer, Department Head, etc. why they didn’t know. The whole reason for a Weekly Cost Report is to give the Studio Execs, Producers enough time to correct for any projected over-budget costs (that is, to find ways to

The Game: Offset Over-Budget With Under-Budget


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It’s not unlike “Directing”, only

you’re “Directing” the money.

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cut the costs in the remaining time of shooting, or to find more money, etc). Now let’s get down to the nitty-gritty of this little known, but key, film production report. The first thing to understand is the simple arithmetic of the report. Let’s examine the columns:

The Most Important Document During Film Production


Account Account ACTUAL ACTUAL TOTAL TOTAL ESTIMATE ESTIMATED BUDGET VARIANCENumber Description THIS PERIOD TO DATE COMMITS COSTS TO COMPLETE FINAL COSTABOVE THE LINE 801 01 STORY RIGHTS - 620,000 - 620,000 - 620,000 600,000 (20,000) 801 02 OTHER RIGHTS - 38,495 - 38,495 10,065 48,560 47,560 (1,000)

801 STORY & OTHER RIG - 658,495 - 658,495 10,065 668,560 647,560 (21,000) 803 01 WRITERS SALARIES - 195,000 - 195,000 100,000 295,000 295,000 - 803 04 SECRETARIES - 65 - 65 435 500 - (500) 803 08 SCRIPT PRINTING 309 1,097 - 1,097 403 1,500 2,500 1,000 803 30 TRAVEL & LIVING EX - 5,462 - 5,462 1,712 7,174 7,174 - 803 40 RESEARCH 3,677 3,677 - 3,677 323 4,000 3,500 (500)

803 WRITING 3,986 205,301 - 205,301 102,873 308,174 308,174 - 805 01 EXECUTIVE PRODUC 9,038 112,304 - 112,304 162,696 275,000 275,000 - 805 02 PRODUCERS 15,340 302,624 - 302,624 822,376 1,125,000 1,125,000 - 805 06 ASSISTANTS 1,800 18,240 - 18,240 30,739 48,979 48,979 - 805 30 TRAVEL & LIVING EX 6,805 97,703 305 98,008 92,994 191,002 187,902 (3,100) 805 50 INDEP PRODUCER O 100,000 100,000 - 100,000 - 100,000 100,000 - 805 51 PURCHASE & SUPPL - 154 80 234 4,766 5,000 5,000 - 805 56 RENTALS - 117 - 117 2,383 2,500 2,500 - 805 57 WRAP PARTY - - - - 15,000 15,000 15,000 - 805 58 ENTERTAINMENT - 2,617 - 2,617 4,883 7,500 7,500 - 805 60 MISCELLANEOUS EX - 10,000 - 10,000 3,500 13,500 13,500 -

805 PRODUCER & STAFF 132,983 643,759 385 644,144 1,139,337 1,783,481 1,780,381 (3,100) 807 01 DIRECTOR 69,565 500,869 - 500,869 1,099,131 1,600,000 1,600,000 - 807 05 CHOREOGRAPHERS - 1,375 - 1,375 - 1,375 - (1,375) 807 06 ASSISTANTS 625 4,563 - 4,563 19,737 24,300 24,500 200

807 30 TRAVEL & LIVIN 10,250 100,931 42,019 142,950 39,635 182,585 184,585 2,000 807 51 PURCHASES & SUPP 19 1,680 137 1,817 683 2,500 1,500 (1,000) 807 56 RENTALS - - - - 125 125 2,500 2,375

1 2 3 4 5 6 7 8 9 10

Note that Col. 5, The Purchase Order Commitment of $42,019, is added to Col.4 and the result is the Total Costs to date

Then the Estimate To Complete of $39,635 in Col.7 is added to the Total Costs to get the Final Estimate to Complete in Col. 8.

The Estimated Final Cost is less than the Budget resulting in an Under-Budget Variance of $2,000 in Col.10.

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Col. 1 “Account Number” This is the account number for that particular cost account. The account number sequence varies from studio to studio. It’s not important to know the account numbering sequences used; however, you should know that it exists. Col. 2 “Account Description” This is the account description, such as Writer Fees, Vehicle Rentals, etc. Once again, you should know that the descriptions sometimes vary from studio to studio. It’s only important for you to know that the column descriptions for each account are the “home” for that type of expense. It is often referred to as a “line item” in the cost report.

Col. 3 “Actual This Period” This column shows the cost that has been incurred for just this week.

Col. 4 “Actual to Date” This column represents the total actual cost incurred and entered to date. Col. 5 “Total Commitments” If you have never seen a “Purchase Order” before, please refer to Chapter 37. It’s important that you get the concept of a Purchase Order and how it flows through the approval system. Every time a known expense has been incurred, but not paid for immediately, a “Purchase Order” is prepared by the person originating the expense. For example, if the Best Boy (the second in command in the Electric and the Grip Departments) has ordered several

The Basics—Definitions of Columns #1—#5


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tape rolls of various colors and strength, he will prepare a Purchase Order describing the types of purchases and the estimated costs. Then he’ll send the Purchase Order to the Production Manager for final approval (or send it directly to the Accounting Department who will forward it to the Production Manager for approval.) Once the Purchase Order has been agreed to by the Production Manager, the Accounting Department will enter the Purchase Order to the system as a “Commitment” and it will show as part of the total departmental costs. When the invoice arrives in the mail from the vendor, the Accounting Department will pay the invoice—increasing the amount of Actual Costs incurred and reducing the amount of the invoice from the Purchase Order. Similarly, if a known commitment has been placed with a contractor, etc. then the Accounting Department will show the amount of that commitment in the same manner as a Purchase Order. Col. 6 “Total Costs” This column represents the summation of Col. 2 (Actual Costs Incurred to Date) and Col. 3 (Purchase Orders Committed) Col. 7 “Estimates To Complete” This is another extremely important column. It is the amount of funds remaining to complete the show for that particular cost account. The next column, Col. 8 (Estimated Final Costs).



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Col. 8 “Estimated Final Costs” The Estimated Final Costs is the sum of Col. 6 (Total Costs To Date) and Col. 7 (Estimates To Complete). This column is often referred to as the EFC. If the budgeting was accurate, and nothing in the film production changed to adversely affect that account, the Estimate Final Cost (the EFC) will be the same as Col. 9 (the Budget column). Col. 9 “Budget” This is the Final Approved Budget on an account by account basis. Col. 10 “Variance” The difference between the Estimated Final Costs (Col. 8) and the Budget (Col. 9) is referred to as the Variance. The idea is to offset any Over-Budget variances with Under-Budget variances. Variance Representation as Over or Under Budget: Most studios show the Over-Budget Variance with brackets (). For example, an Over-Budget Variance is (20,000). However, some studios have the opposite convention, where an Under-Budget Variance is represented with brackets. So, just to be sure, simply look at the EFC Column (the Estimated Final Cost) and compare it to the Budget. If the EFC is greater than the Budget, you know that you have an Over-Budget Variance. The next few pages examine some simple ways to review the Cost Report so that you can Walk The Talk© . The columns 1 through 10 had to be defined. However,



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let’s not get too complicated about it all. If you can add and subtract you can make your way through a cost report. What’s more important is the reason why you should know how to go through a Cost Report—any understanding and control that you can place over your sphere of the film production costs is that much more understanding and control over your career than you ever had before.

THE BUDGET IS ONLY MEANINGFUL WHEN

COMPARED TO THE ACTUAL COSTS Here’s a rule: The best way to keep your area of the cost

report controlled is to: 1.Understand what costs are being

charged to your area, and 2.then, present those costs to your

advantage. Your motivation for this may simply be a matter of survival—that is, if you go over budget too many times nobody will hire you. Or, you may just find it more rewarding to make sure that the money allocated to your film production is being spent in such a way as to make your film the best it can be. As you start shooting, and one day follows the next, the budgeted costs get consumed to some degree. The Final Approved Budget is a fixed number. You now need to put your attention on the Estimates-To-Complete.

Why The Cost Report Is So Important

Chapter 22 — Know How To Read A Cost Report!

Any understanding and control that you can place over your sphere of the film production costs is that much more understanding and control over your career than you ever had before.

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The budgeted costs that were approved before you started shooting is now only meaningful when compared to:

-what has been spent to date (Column 6, Total Costs), and -what is left to spend (Column 7, Estimates To Complete).

Let’s get on to the next chapter.

Chapter 22 — Know How to Read A Cost Report

The Estimates To Complete (ETC’s)

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This is a short story to show you how Department Heads can avoid trouble if there are cost overruns in their department. I once worked on a Major Studio show, on location, with a well-known Director and two well-known stars. The Production Executive at the Studio didn’t get along with the Producer on the show, and the Production Exec enthusiastically hunted down anything that looked like a “pad” and struck it out of the budget. The final budget meeting was a hail of accusations of how we had too much money in the budget. That’s the scenario into which the Costume Director and the Art Director fell into. The Costume Director should have had an easy time of outfitting the cast, but the Director (and one of the stars) were being difficult. At one point, the Director said to the Costume Designer, “Bring a stack of clothes so high that a horse couldn’t jump over it!” The Costume Designer wisely informed me of this statement so that I could reflect it in the Cost Report, and she made it clear that I was to report why she was Over Budget. The Art Director didn’t fair so well. The show had quite a bit of construction, with a headstrong Construction Coordinator, a Production Designer who loved Academy Award nominations and a demanding Director. The Art Director, I think, did a commendable job of keeping the whole thing on it’s wheels, so to speak,

How To Avoid Trouble When You Have Overruns

Story #10

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(Continued) but he always felt that he could save money somewhere or other, only to be blindsided by the over-budget decisions of either the Construction Coordinator or the Production Designer (at least, in my opinion). In the meantime, the Studio was howling about the overruns in the Construction accounts and wanted blood. So, the Art Director got the axe. What happened here? …The Costume Designer made it clear why the cost overruns were occurring in her area, and the Art Director didn’t. Simple as that. You need to see what’s really there and report that. It’s tempting to be the go-to-guy for the Director, hoping that you’ll find a way to save some money SOMEWHERE. Nope, don’t do it. Just report the obvious overruns to your immediate boss, with copies to the Production Manager and the Production Accountant, and ask for help. You’ll get it.

How To Avoid Trouble When You Have Overruns

Story #10

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Let’s do some actual number crunching, just to get the feel of the Cost Report and how important the ‘Estimates-To-Complete’ (ETC’s) really is. Reading the Estimates-To-Complete Column: The following table is the Cast and stunts section of a typical Cost Report.

The most important column is the ‘Estimate-To-Complete’ column. This column is usually referred to as the ETC’s. Most of your attention should go there—that’s where the treasures are buried, or the reputations ruined. I know one well known producer who starts out a Cost Report meeting by drawing a highlighter vertically down that one column. Then, as we go through the Cost Report, her attention is drawn primarily to the ETC’s.

Chapter 23 — Cost Report ‘Talk’: The ETC’s

Example of Reading A Cost Report—Cast and Stunts

Account ACCOUNT ACTUAL ACTUAL TOTAL TOTAL ESTIMATE ESTIMATED BUDGET (Over)/Under

Number DESCRIPTION ThisPeriod TO DATE COMMITS COST ToComplete Final Cost VARIANCE

900-01 PRINCIPAL CAST 647,103 900,950 - 900,950 4,349,050 5,250,000 5,250,000 -

900-02 SUPPORTING CAS 50,409 62,712 - 62,712 309,256 371,968 371,968 -

900-03 DAY/STUNT PERF 12,001 18,394 - 18,394 110,406 128,800 128,800 -

900-04 STUNT COORDINA 1,663 1,663 - 1,663 3,337 5,000 5,000 -

900-05 STUNT EQUIPMEN - - - - 250 250 250 -

900-06 LOOPING & EXPEN - - - - 30,000 30,000 30,000 -

900-07 CASTING DIRECTO (1,232) 58,768 - 58,768 7,232 66,000 66,000 -

900-08 CASTING ASST. & - 27,450 3,781 31,231 1,793 33,024 34,524 1,500

900-09 TRAVEL & LIVING 3,907 32,794 21,864 54,658 2,367 57,025 53,625 (3,400)

900-10 CONTRACTURAL E 35,803 205,715 88,939 294,654 424,703 719,357 705,857 (13,500)

900-11 INSURANCE EXAM - 1,990 150 2,140 360 2,500 2,000 (500)

900-12 MISCELLANEOUS - 3,196 - 3,196 1,304 4,500 5,000 500

900 CAST AND STUN 749,654 1,313,632 114,734 1,428,366 5,240,058 6,668,424 6,653,024 (15,400)

The most important column in the Cost Report is the 'ETC's

The remaining funds available for Cast and Stunts is $419,662

Figure 23.1

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The ETC is the column that tells you how much is left to spend on that particular line item. In our table above, check out what we have left for Supporting Cast and for Day/Stunt Performers. If you said $309,256 + $110,406 for a total of $419,662 you were right. That’s the annual budget for a lot of small towns. It can also hold a story or two: 1) It might look like such a large amount that no

one would think to question it; but, on further detailed study turn out to be woefully short of the needed amount, or

2) It might have $100,000 too much in a variety

of cast characters and stunts that won’t be noticed without a detailed study.

As a Producer or Director you want to know if it’s 1. or 2. above. The only way to do that is to ask someone (probably the Production Accountant or the Production Manager) to project the remaining cost of the cast and stunt performers character by character to see if the ETC’s will be enough, too little or more than enough. (You could also examine the Day-Out-of-Days and do some kind of rough averaging of the number of work days left on the cast and stunts to ‘ball park’ the cost). Remember that Producers, Production Managers and Production Accountants like to have some kind of reserve in the budget for emergencies. It’s a survival thing. So, press them for a piece of that reserve if you have your back to the wall. Try to keep AT LEAST $100,000 buried in the ETC’s


Example of Reading A Cost Report-Cast&Stunts

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somewhere/somehow (sometimes more, depending upon the size and genre of the show, where a romantic comedy is the least dangerous and a special effects show is the most dangerous). Having a reserve will save your butt, not once, but several times. If you have the power to do it, I strongly recommend that you do. As a tip to Producers and Directors, I recommend that you bury your emergency funds in Cast, Stunts, Day Performers and Background Extras — all financiers are driven to do whatever it takes to increase the potential Gross Income of the product, so push home the potential of those costs that ‘go directly into the negative’ (that is, are actually seen on the film by the viewing public). It’s really just making the money work for the most optimum outcome. It’s your job to create the best film production you can from your position in the film production—regardless what that position may be. So, let’s investigate ways to “direct” the costs of producing your film. NOTE: All examples of Cost Reports in this book are not actual figures taken from a production. They are created by me as a training tool. Like I’ve said—Cost Reports are confidential.


Cast and Stunts Is a Good Place to Bury Some Savings

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‘Projecting the Labor Cost’ : Let’s carry on with another example, keeping in mind that you’re looking for one of two things, (I) Available ETC’s which can either be used to

satisfy the Director’s creative vision more effectively, or to cover off known cost overruns in other areas, or

(ii) Under estimated ETC’s which when found,

allows you the luxury of not being blindsided with an embarrassment but rather grants you the ability to plan an offsetting cost savings.

Let’s look at the Electric Department section of a typical Cost Report.

There is a simple rule that Producers and

Chapter 24 — Cost Report ‘Talk’:Projecting the Labor Cost

An Example Using the Electric Department

Account Account ACTUAL ACTUAL TOTAL TOTAL ESTIMATE ESTIMATED BUDGETNumber Description ThisPeriod TO DATE COMMITS COSTS ToComplete Final Cost VARIANCE

920-01 GAFFER 3,158 13,088 - 13,088 23,041 36,129 35,929 200 920-02 BEST BOY ELECTRIC 3,060 12,780 - 12,780 21,930 34,710 34,110 600 920-03 LIGHT TECHNICIANS 15,940 36,301 - 36,301 94,908 131,209 134,809 (3,600) 920-04 GENERATOR OPERA 3,060 9,643 - 9,643 21,267 30,910 31,010 (100) 920-05 RIGGING & STRIKING 6,801 10,673 - 10,673 74,127 84,800 84,700 100 920-06 LOSS & DAMAGE - - - - 2,500 2,500 2,500 - 920-07 PURCHASES 1,616 13,849 123 13,972 6,028 20,000 20,000 - 920-08 GLOBES & CARBONS - - - - 20,000 20,000 20,000 - 920-09 RENTALS 750 4,060 205,356 209,416 84 209,500 191,500 18,000 920-10 GENERATOR RENTAL - - 18,600 18,600 100 18,700 29,600 (10,900) 920-11 BOX RENTAL 1,100 3,740 - 3,740 13,810 17,550 19,350 (1,800) 920-12 MISCELLANEOUS EX - - - - 1,500 1,500 1,500 - 920-99 FRINGES 7,944 22,621 - 22,621 50,761 73,382 74,295 (914)

Multiply the amounts in Col.3 "Actual This Period" by the number of weeks remaining. The result should be close to the ETC amount in Col.7.

1 2 3 4 5 6 7 8 9 10

The Riggers don't follow a straight-line projection. (Only the Key Rigger and Best Boy are on for run of show.)

Figure 24.1

Let’s assume that there’s 6 weeks left to shoot and 1 week after that to wrap up.

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Production Managers use all of the time in order to see if there’s a potential savings or cost overrun in any payroll account. Have a look at the ‘Actual This Period’ column #3. The numbers represent the expenditures made over the previous week of shooting. When examining the payroll accounts (that is, accounts that have only payroll payments recorded) you can make a simple estimate:

Take the rounded number in the ‘Actual This Period’ column and multiply it by the number of weeks left to shoot + 1 for wrap. Compare that number with a rounded amount of ETC.

In the Electric Department example above let’s say that there are 6 weeks left to shoot and one week of wrap for a total of 7 pay weeks to go. Can you see where there’s trouble ahead? Let’s do the math: Col.#7 Gaffer $3,000 x 7 Pay Weeks = $21K ETC = $23K Best Boy $3,000 x 7 PayWks = $21K ETC = $21K Lite Techs $16,000x7PayWks = $112K ≠ ETC = $95K Generator Op. $3,000 x 7 PayWks = $21K ETC = $21K If you got it that we’re in trouble with the Lighting Technicians you win the prize. Answer: The Lighting Tech ETC (Col 7) = $94,908. But, above you can see that we need $112,000. So, we’re ($112,000 - $94,908) = about $17,000 short.

Chapter 24 — Cost Report ‘Talk’: Projecting the Labor Cost

Utilizing the ‘Actual This Period’ Column (Col. #3)

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Offsetting the +/- Variances Within the Department: If you have cost overruns in one area of a Department, it’s best if you can find an offsetting savings in another area of the same Department. (The purpose of examining any of these offsets is to help the reader understand and control their area of costs as measured against the Final Approved Budget.) The experienced Producer or Production Manager looks first to that Department to find a way to ‘offset’ their overruns with a corresponding savings within the same offending Department. As some background, you should know that:

Whenever you change the Estimate-To-Complete on the Weekly Cost Report you should declare the change to the Studio/Financiers. This declaration is listed on the Covering Memo of the Weekly Cost Report and could raise some questions.

Example Using the Set Dress Department

Chapter 25 - ‘Within the Department’ Offset

Account Account ACTUAL ACTUAL TOTAL TOTAL ESTIMATE EFC BUDGTNumber Description ThisPeriod TO DATE COMMITS COST ToComplete VARIANCE

901-01 SET DECORATO 3,000 36,300 - 36,300 23,700 60,000 60,000 - 901-02 LEADMAN/BUYE 4,504 44,165 - 44,165 37,663 81,828 81,828 - 901-03 SWING GANG 25,451 181,820 - 181,820 185,025 366,845 374,345 7,500 901-04 LOSS, DAMAGE - - - - 2,500 2,500 2,500 - 901-05 MANUFACTURIN - - - - 15,000 15,000 7,500 (7,500) 901-06 SET DRESSING P 52,524 265,916 226 266,142 281,258 547,400 547,400 - 901-07 RENTALS 9,811 38,354 1,430 39,784 87,316 127,100 127,100 - 901-08 CAR & BOX REN 2,210 16,625 - 16,625 12,405 29,030 29,030 - 901-09 MISCELLANEOU - 582 - 582 418 1,000 1,000 -

901 SET DRESSING 97,500 583,762 1,656 585,418 645,285 1,230,703 1,230,703 -

1 2 3 4 5 6 7 8 9 10

The Manufacturing of some set dressing is known to be costing $15,000. You only have $7,500 budgeted; so, you 'borrow' $7,500 from the big 'Swing Gang' account to offset the Manufacturing Over-Budget amount.

Figure 25.1

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The ONLY time the studio doesn’t want you to declare changes to the Estimates-To-Complete is when you offset the Over-Budget Variances against the Under-Budget Variances WITHIN THE SAME DEPARTMENT (that is, the total variance for that department is zero). So, you can effectively incur an Over-Budget situation in a Department and offset it within the same Department. Just get the job done within your Departmental Budget and everyone’s happy. Here’s an example: In a large budget, like this example, $7,500 is quite small in comparison to the total amount budgeted for the entire Swing Gang. Therefore, you could move $7,500 out of that line without any effort to justify the savings there—at least, right now. Eventually, you’ll have to ensure that the Set Decorator knows that he’ll have to take steps to reduce his swing gang labor by the $7,500. In the meantime, you’ve averted the necessity to declare an Over-Budget situation in the Set Dressing Department. As a word of caution, don’t offset the Over-Budget account unless your quite confident that you can ACTUALLY reduce the costs in the offsetting account. Also, if you are a Producer or Production Manager I would look suspiciously at any offsetting tricks. Cross-question this trick to make sure that you’re not being hoodwinked now, only to ’Pay the Piper’ down the road.

Offsetting Within the Dept. Doesn’t Need to be Declared

Chapter 25 — ‘Within the Department’ Offset

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‘Offset To the Bottom Line’: The purpose of any of these offsets is to help the reader understand and control their area of costs as measured against the Final Approved Budget. The previous offset referred to as ‘Offsetting Within the Department’ and this particular offset are used so often that the experienced Producer or Production Manager know it intuitively and are looking for offsets continuously. If you have an over budget in one department — let’s say the cost of Picture Cars is $25,000 over the amount budgeted — you can offset that over budget account with a totally unrelated savings in another account; say, Background Extras. This kind of offsetting will be presented on the Covering Memo to the Weekly Cost Report to the Studio/Financiers, so it will need to be justified with real, quantifiable number crunching , not just a hope, or a desire. Here’s an example of the kind of conversation to expect: Studio Executive Says:

If this Director is going to reduce the number of extras in any shot south of the North Pole it’ll be a first, and I’ve been working in this biz for 28 years, and … blah….blah… blah.

WalkThe Talk Way

(Continued on next page)

Offsetting Among Departments Must Be Declared

Chapter 26 — ‘Offset to the Bottom Line’

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WalkThe Talk Way The 1st Assistant Director told me that he mistakenly added 50 extras to the garage scene when he should have subtracted 50 extras. As you know, extras cost about $200/Day x 100 Extras = $20,000 plus you need to add the 30% fringes budgeted and we have $26,000 of savings that the Director doesn’t even know about. Santa Clause is from the North Pole, right?

Don’t Forget the 30% (or so) Fringes on Labor

Chapter 26 — ‘Offset to the Bottom Line’

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Example Using A Hot Cost Common Template

The ‘Hot Cost Savings’: A ‘Hot Cost’ is a daily look at the basic variable costs of shooting as compared to the budgeted daily costs. The general principle is to measure the budgeted crew,

Chapter 27 — The ‘Hot Cost Savings’

*******************************************************************************************TO: Mr. Big Bucks, VP Finance Day # 32 FROM: The Production Manage

Ms. Pleased Alot, Prod'n Exec. John Gaskin, Acct.

PRODUCER: DATE: Feb.21/06LINE PROD. : DIRECTOR: ***************************************************************************************************************************************

PAGES - CALL SHEET 3 0/8 START DATE: 17-Dec-05PAGES SHOT: 3 1/8 FINISH DATE: 12-Apr-06SET/SCENE SHOT: I/D Delivery of the body to busy wharf

SCENE #: Sc. 91,92,93

SHOOT TRAVEL HOLIDAYS INSUR CLAIM TESTS POST PROD TOTALS

DAYS SCHEDULED 0 0 0 DAYS TO DATE 32 32 DAYS OVER(UNDER) 0TTL DAYS PROJECTE 0 0 0 0 0 0 0

B Camera Days - Budgeted Used

Steadicam Days - Budgeted Used

APPROXIMATE

(OVER) / COSTSBUDGETED ACTUAL UNDER (OVER) / UNDER NOTES

SHOOTING CO. HRS 13.5 13.0 0.5 2,916$ Crew worked fewer hours than budgeted.CAST & EXTRAS 12.0 8.0 4.0 3,545$ The extras worked only 8 hours.

RAW STOCK USE 8,500 11400 (2,900) (1,416)$ FILM DEVELOPED 7,650 11000 (3,350) (420)$

I DEF DAILIES(1 LITE) 4.5Hrs 5.5 (355) (355)$ CATERED MEALS 150 125 25 281$

- 0 - -$

Note 1: ___________ - 0 - -$ Note 2: ___________ - 0 - -$

DAILY TOTAL 4,550 WEEKLY CUMULATIVE 32,331

Note that in this case the ( ) brackets means Over-Budget.

The director is shooting fewer hours than budgeted today, and, as shown in the Weekly Cumulative figure, he has been all week.

Figure 27.1

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Hot Costs Are a Snapshot of the Day’s Variance From Budget

cast and background extras worked hours with the actual worked hours for the day, as well as to measure the budgeted film and lab charges with the actual film consumed. These are the ‘big ticket’ items. Other bits of comparisons can also be made, for such things as catered meals, manday counts for various dept’s, etc. Most ‘Hot Costs’ only look at the following costs: -Crew Labor Costs -Cast Fees -Background Extras Costs -Raw Stock Used -Film and Lab charges in relation to the amount of raw stock shot for the day. -Number of plates catered. -Additional labor required for such things as Special Effects shots, Swing Gang, etc. The Hot Cost on the opposite page is a typical Hot Cost for a feature film production. Note that the Budgeted and Actual columns aren’t in terms of money. The ‘Shooting Company Hrs’ shows that 13.5 hours of work was budgeted and the crew actually worked an average of 13.0 hours. The 1/2 hour of work ‘saved’ as compared to the budget equates to a savings of $2,916 dollars. (there’s a few pages of detail behind that calculation, but you don’t have to get into all of that—trust your accountant.) The Raw Stock and Film Developed is in feet—the 11,400 actual footage exceeds the daily budgeted footage of 8,500 feet by 2,900 feet. The 2,900 feet equates to an over-budget amount of $1,416 dollars.

Chapter 27 — The ‘Hot Cost Savings’

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Also Be Aware of the Hot Cost ‘Over-Budget’ Days

Remember, the Cumulative Savings can be used by the Director and Producer in other aspects of the film production that aren’t shown on the Hot Cost. Such things as Helicopter Shots, Special Plate Units for Visual Effects Computer Graphics work, any specific Crane Shot (the Techno Crane can make shots that look like ghosts on a roller coaster), etc. `

Conversely, it’s imperative that you be aware of the over-budget Hot Cost days. As those bad days accumulate, the whole mood on the set can be sliced with a pizza cutter. The crew & cast get more and more tired as the long days continue; the support costs associated with the crew and cast on the set begin to go over-budget (more gasoline consumed, more water, more cell phone usage, more supplies consumed of every kind, etc.), the Producers and the Director start to get cranky, finger pointing becomes common, etc. etc. If this kind of scenario begins, take control of your area by communicating to someone senior to you that you’re concerned about the continued long days and how it will affect your ‘bottom-line’. (That’s a Walk The Talk Way line for—I’m protecting your ass & mine).

The important point is to keep track of the Hot Cost from your viewpoint on the Production Team, whether it be as a Set Production Assistant or as a Director/Producer/Production Manager. This control of applying savings from the daily shooting could be applied to your over-budget items. Also, the ‘trick’ of knowing when to declare that you’re ‘concerned’ about your area’s costs is just as vital to your career.

Chapter 27 — The ’Hot Cost Savings’

The trick of knowing when to declare that

you’re ‘concerned’ about your area’s

costs is just as vital to your career.

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Almost all Producers will accept a small favor from a supplier, like a reduced rate on their car rental, etc. But this is the only time I’ve seen what appears to be an open ‘kickback’. I worked on a particularly tough Independent film production once where we had many invoices from the huge equipment rental house for loss and damages. We received these invoices well after the show was completed. The whole approval process was in shambles because the crew had left for vacation, etc., after the shoot, the Producer was in another city shooting another show and I was the ‘last man standing’ as the overruns came flowing in from damages to the equipment. I managed to find the Gaffer and the Key Grip and urged them to see me to go over the invoices. After some cajoling I got their agreement to come in before the end of that week. When they showed up I had stacks of invoices arranged on a folding table, sorted by what were Grip items and what were Electric items. Most of the invoices made sense; however, there was a stack of invoices for the loss of many items of the same identifying code. The Key Grip told me that the code represented ‘X’ (let’s call it a ‘Widget’). He told me that if I stacked the ‘widgets’ on top of each other and back to back that they wouldn’t all fit in a large tractor trailer. He said that there’s just no way that we had that many ‘widgets’ on the show – so, to say that we destroyed or lost that many ‘widgets’ was most certainly not true. I felt happy to hear that. It would save another $20,000 on a creaking list of cost overruns. So, I sent a package off to the Producer with the good news, sure that he’d have the same opinion as I did. Two days later the return package arrived with a note from the Producer. The note said, “Pay it.” Makes ya wanna go, “Hmmmmmm.”

‘Kickbacks’ in the Film Business

Story #11

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There’s a tendency in the film business to denigrate the Studio Executive. There might be a tougher job somewhere, but I don’t know of it. There’s so many ways that a Studio Executive can get the axe that it’s not my idea of a cool profession. You need to be tough, smart and willing to take the fall for someone else’s screw-ups. This story was presented as a true story to me. It didn’t happen to me but I knew the party involved and I knew enough about the players that I believe it to be true. A junior Studio Executive at a Major Studio left a comfortable position, where he was well liked, for a more prominent role at another Major Studio – not at stellar heights, but prominent enough to be known as a player in the Majors. There aren’t many opportunities for such positions, and when one is filled, or emptied, everybody knows and the gossip is rampant. This Studio Exec went into his new Studio running like a shot bear. He hired, he fired, he expanded and created a tight ship. Then the Senior Execs who hired him were removed, and replaced by the ‘new guy’. The ‘new guy’ made it clear that our Studio Exec better toe the line. But, hey, it’s a tricky hierarchy in Hollywood. It’s not as vertical a command line as you would think. The Studio Exec did something that the ‘new guy’ didn’t like (part of the job, mind you, not subterfuge or anything). That was the end for our Studio Exec. Gone. Security guards were at his office door for an escort. Yup. It happens. What do you get from this story? …Stay in touch with the Studio Exec that you’re working with. Get to know what pressures they’re under and how you can help. It’s not just being a Good Samaritan, it’s good networking. That’s the way it works in Hollywood. Here’s another tip - don’t work for a Major Studio as a Studio Exec unless you have one hell of a thick skin.

Support Your Studio Exec

Story #12

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Example Using the Background Extras Section

‘Projection Through to Completion’: In this example you narrow your attention to just those ETC’s (Estimates To Complete—Col. #7) that should be either fully completed or almost completed.

For example, I always look for wardrobe ETC’s on cast that have finished working. Also, I look at construction sets that have started shooting—the costs should be almost all completed if the cameras are rolling on the set. In each of those cases, if there’s any ETC’s remaining in the Cost Report it’s a cinch that most of it is available as a savings which can be applied to some other area. Just to reinforce this concept, let’s assume that you’re a Production Manager and you’re reviewing Background Extras with 2 weeks of shooting left. The table above is the Background Extras section of a Cost Report. You have checked with the production accountant to find out what extras have been paid as reflected by the Cost Report total of $279,642. She tells you that all of the background extras have been paid

Chapter 28 — Projection Thru to Completion

Account Account ACTUAL ACTUAL TOTAL TOTAL ESTIMATE EFC BUDGET (Ove r)/Unde r

Number Description ThisPeriod TO DATE COMMITS COST ToComplete VARIANCE500-01 STANDINS 10,754 38,554 - 38,554 12,679 51,233 51,233 - 500-02 EXTRAS - STUDIO 17,326 279,642 - 279,642 24,233 303,875 303,875 - 500-03 FITTINGS & INTERVIEWS 569 7,749 - 7,749 2,251 10,000 10,000 - 500-04 ATMOSPHERE CARS 35 6,439 - 6,439 561 7,000 7,000 - 500-05 EXTRAS CASTING SER. F 10,037 37,667 - 37,667 4,571 42,238 42,238 - 500-99 FRINGES 8,705 98,641 - 98,641 14,993 113,634 113,635

500 EXTRA TALENT 47,426 370,051 - 468,692 59,288 527,980 527,981 -

1 2 3 4 5 6 7 8 9 10

If there are 80 more Extra ManDays remaining @ $200/Day = $16,000 then save $8,233 + Fringes.

Figure 28.1

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through to the end of Day #49. When you look at the Shooting Schedule you pick out the following extras expected through to the end of your 60 day shoot: Day #50 12 Day #51 - Day #52 14 Day #53 - Day #54 10 Day #55 12 Day #56 - Day #57 10 Day #58 10 Day #60 10 Total 78 Extras To Be Paid (Round to 80) You know that Extras cost about $200/Day, so you can estimate $200 x 80 = $16,000. You can see that the Estimate-To-Complete is $24,233. This gives you $8,433 savings. However, because you’re only estimating here, allow some safety margin and take $7,000. Also, don’t forget that the $7,000 also has budgeted SAG fringes of 30%. So, you can take another 30% of $7,000 = $2,100. That gives you a total savings of $9,100 which can be applied against some other non-foreseen over-budget item which just embarrassed you; maybe the Construction Department worked 5 guys all week-end and you forgot about it, or the Makeup Department swears they told you about the $10,000 wig needed by the star for tomorrow, etc. ‘Projected Fringes’ Technique:

Chapter 28 — ‘Projection Thru to Completion’

Round Off Projections For Simplicity

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Fringes are often a gold mine for savings; especially if you’re working on a non-Studio show. Non-Studio shows still allow various department heads to be incorporated. It’s a better tax break for the crew member and it’s theoretically good for the production because there aren’t any producer contributions to make for to the Government, for unemployment insurance, old age pensions, etc., like there are for individuals. When budgeting we always take the view that the individual will not be incorporated (or, as is often referred to as a ‘Loan Out Company’). So, if someone in that department is incorporated, then the overall fringe rate goes down and a savings is expected.

Chapter 29 — The ‘Projected Fringes’ Technique

Example Using the Makeup & Hair Department

Figure 29.1

Account Account ACTUAL ACTUAL TOTAL TOTAL ESTIMATE EFC (Number Description THIS PERIOD TO DATE COMMITS COST ToComplete BUDGET

90-01 MAKEUP ARTISTS 6,560 14,881 - 14,881 36,554 51,435 51,435 90-02 ADDITIONAL MAKE 10,703 18,699 - 18,699 43,797 62,496 62,496 90-03 BODY MAKEUP - - - - 7,500 7,500 7,500 90-04 HAIRSTYLISTS 6,920 15,241 - 15,241 36,194 51,435 51,435 90-05 ADDITIONAL HAIRS 8,165 15,381 - 15,381 47,115 62,496 62,496 90-06 MAKEUP SUPPLIES 506 2,340 - 2,340 4,160 6,500 6,500 90-07 HAIRDRESSING-SUP 1,045 1,787 - 1,787 1,713 3,500 3,500 90-08 WIG PURCHASE/REN 508 3,384 9,000 12,384 616 13,000 13,000 90-09 BOX RENTAL 2,085 4,725 - 4,725 14,775 19,500 19,500 90-10 MISCELLANEOUS E 8,227 13,065 7,200 20,265 2,551 22,816 30,200 90-99 FRINGES 7,867 15,379 - 15,379 58,054 73,433 73,433

833 MAKEUP & HAIR 52,586 104,882 16,200 121,082 253,029 374,111 381,495

LaborPaid 64,202$ ETC LABOR 171,160$ FRINGES PAID 15,379 ETC FRINGES 58,054

ACTUAL% FRINGE 24.0% BUDGETED% FRINGE 33.9%

PROJECT THE FUTURE FRINGES AT 24% ACTUAL X $171,160 ETC'S FOR LABOR = 41,000 COMPARE TO THE TOTAL ESTIMATE-TO COMPLETE FRINGES AVAILABLE = 58,054

SAVINGS PROJECTED ON MAKEUP/HAIR FRINGES 17,054$

1 2 3 4 5 6 7 8 9

These are the Labor Costs within the department.

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However, the big Studios forbid it because of any possible IRS problems over employee taxes (the IRS will often hold a company responsible for unpaid taxes by reasoning that the person was actually an employee and not a subcontractor). The Studios are wary of the IRS, or of any other country’s revenue chasing government body—and with good reason. So, the Studios did a study in the early 1990’s and decided that only the following were allowed to be incorporated (also called ‘Loan Out Companies’): -Producer and Director -Production Designer -Director of Photography -1st Assistant Director -Unit Production Manager -Editor So, check these categories for fringe savings on every show. You just might be surprised. Note that some countries, like Canada for instance, allow any crew member to be incorporated. So, substantial fringe savings should be expected in all departments.

Chapter 29 — The ’Projected Fringes’ Technique

Fringes Have a Significant Impact

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The Missing Purchase Order: If you’re not really sure what a Purchase Order is, look on page 125 for an example of a prepared P.O. If you have never seen a “Purchase Order” before, please refer to Chapter 37, Figure 37.1. It’s important that you get the concept of a Purchase Order and how it flows through the approval system. Every time a known expense has been incurred, but not

paid for immediately, a “Purchase Order” is prepared by the person originating the expense. For example, in this case when the Camera Equipment was first ordered it was the Production Manager’s job to prepare a Purchase Order for the total amount of the camera equipment package.

Example: Purchase Order For Camera Rentals

Chapter 30 — The ‘Commitments’ (i.e. Purchase Orders)

A/C Account ACTUAL ACTUAL COMMITS TOTAL ESTIMATE Estimated BUDGET# Description THIS PERIOD TO DATE TO DATE COSTS ToComplete Final Cost VARIANCE

941-01 DIRECTOR OF PHOTOG 10,000 70,000 - 70,000 70,000 140,000 140,000 - 941-02 CAMERA OPERATOR 3,633 9,068 - 9,068 28,312 37,380 55,380 18,000 941-03 FIRST ASSIST CAMERA 5,583 15,927 - 15,927 38,800 54,727 49,727 (5,000) 941-04 SECOND ASSIST CAME 4,641 12,823 - 12,823 31,910 44,733 37,733 (7,000) 941-05 EXTRA CAMERA OPERA 15,645 29,580 - 29,580 81,110 110,690 91,690 (19,000) 941-06 EXTRA CAMERA ASSIS 4,316 7,872 - 7,872 24,047 31,919 28,919 (3,000) 941-07 STILL PHOTOGRAPHER 3,700 14,060 - 14,060 27,350 41,410 45,410 4,000 941-08 LOADER 3,374 9,450 - 9,450 23,573 33,023 32,023 (1,000) 941-09 LOSS & DAMAGE - - - - 2,500 2,500 2,500 - 941-10 PURCHASES 103 3,766 - 3,766 15,484 19,250 19,250 - 941-11 RENTALS 7,601 11,351 290 11,641 209,859 221,500 234,500 13,000 941-12 BOX RENTAL 2,400 7,240 - 7,240 15,440 22,680 22,680 - 941-13 MISCELLANEOUS EXPE - 245 - 245 1,255 1,500 1,500 -

941 CAMERA 60,996 191,382 290 191,672 569,640 761,312 761,312 -

Why isn't there any Purchase Order here to commit the rental of the Camera Equipment?

This looks like a quick "plug" to offset the over-budget camera labor. Can we really take $13,000 savings? Where's the Purchase Order?

Figure 30.1

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If the Camera Package costs $18,000/Week, over a 10 week shoot, then the Purchase Order should have been prepared and given to the Accounting Department for entering to the Cost Report system in the amount of $18,000 x 10 Weeks = $180,000. In our example above there is enough money in the Estimates-to-Complete Column to cover off the $180,000; however, one should look to the budget to see what else is budgeted in that account. There are commonly other camera rentals in addition to the main unit Camera Package (things like the Steadicam, the Director of Photography’s lenses, etc.). Until you can reconcile the total Camera Department equipment needs with the amount of funds available in the Estimates-to-Complete, there may be a problem here.

Chapter 30 — The ‘Commitments’ (i.e. Purchase Orders)

Example: Purchase Order For Camera Rentals

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PART IV

HANDLING MONEY LIKE A PRO AS AN EVERYDAY

ROUTINE

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What Part IV Is About This Part introduces the concept that being trained on certain basic administrative tech-niques will make anyone better prepared to be in control of their area. The examples of the forms that I’ve created in this Part are all stan-dards used throughout the film production in-dustry. This Part is especially helpful to Film School Graduates looking for work—Department Heads are quick to pass off this kind of work and will hire you simply to do their administrative work for them. Also, Crew Members who are trying to upgrade to Department Head or to a Production Manager, will find this a good refresher course. Even if you are a well known Director or Producer, knowing this basic information will help you to understand and control the Cost Report process, effectively increasing your survival on your chosen career path.

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I’ve been writing this booklet, off and on, for about 15 years now. I periodically survey a new film school graduate, or a crew member with a couple of years experience. My surveys are designed to find out what they don’t know, but should, in order to take control of their own careers. It’s with fresh surprise at each survey that I find a blend of fear and ignorance about many of the most basic administrative procedures. In many cases even the basic necessities of getting petty cash, signing up for payroll, preparing purchase orders, are either completely unknown, or confused and bumbled. The preparation of Departmental Budgets, or of reading a Weekly Cost Report, is so far from their understanding that the mention of it just brings blank stares. The Department Heads, and their 1st Assistants, would LOVE to turn over their paperwork to an ambitious new recruit who had the training in basic administration. Most Department Heads are still bumbling through their Purchase Orders, mixing up the entries and ignoring the blanks. If you, as a new recruit, could do things like: -Prepare Check Requisitions for the department, -Prepare the Requests For Petty Cash Advances and

prepare the Petty Cash Envelopes for the department, -Prepare Purchase Orders for the department, THE DEPARTMENT HEADS WOULD BE FIGHTING FOR YOUR SERVICES. So, let’s train you on those things! Once the word gets out that you’re excellent at administrative work you’ll be much in demand.

Chapter 31 — Be Prepared For Your Film Shoot

You’ll Be Working Because You’ll Be Better Prepared

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The accounting area often seems overwhelmingly complicated to many people. The shear volume of paper makes the overall system of things look unbelievably confused; not to mention the “Hot Seat” nature of the department (money ALWAYS gets scrutiny.) What looks like chaos is only 5 systems in operation—that is, there are only five ways of recording money spent into the General Ledger. Only five. No more. They are: 1.Payroll From Crew and Cast 2.Check Requisitions From Crew 3.Petty Cash From Crew and Cast 4.Purchase Orders From Crew 5.Invoices Payable From Outside Vendors You can rest assured that this covers EVERYTHING!.

Chapter 32 — The 5 Ways of Spending Money

Schematic Diagram: Flow of Expenses Into Cost Report

C op y 4

PAYROLL CHECKREQUEST

PETTYCASH

PURCHASEORDER

VENDORINVOICES

P.C. Advance

P.C. Folder Reimburse't

DealMemo

TimeCard

CheckRequisition

C o py 3

C op y 2

Purchase Order VendorInvoice

GENERALLEDGER

(Accounting Records)

COSTREPORT

Figure 32.1

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Okay, let’s help you survive in the world of Budgets and Cost Reports. In keeping with that purpose is to help you survive the administrative aspects of any film production. Also, understanding the administrative aspects of any film production will give you a solid footing as a crew member—regardless of the department you’re working in. If you can handle the basic tasks of time cards, petty cash, check requests and purchase orders any department head will kill to hire you. You’ll work as a new film school graduate when none of your friends will, regardless of their creative ability. I remember a young woman being interviewed for a Set PA position on a Ron Howard film production in New York, “The Paper”. She was graduating from a good film school and was terribly earnest. I overheard her say that she would do anything, she “...just wanted to be involved in the project.” She didn’t get hired. I seriously believe that she would have been seriously considered if she could have said, “I’ve studied how to prepare time cards, check requests and purchase orders and I know that I’d be a big help there.”

Chapter 33 — Can You Say I Know How to Handle Timesheets, Petty Cash, Purchase Orders, etc.?”

If You Know These Things It’ll Help You Find Work

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The first thing you’ll need to do on a new film job is sign-up for payroll. Once you’re signed-up you’ll need to prepare a weekly timecard. Payroll: Payroll (both Above-the-line and Below-the-Line) is always carefully processed through a payroll system. The payroll service takes over the detailed task of calculating and submitting all government taxes and all union contributions. All you need to know how to do is sign-up properly and do a timecard each week—the accounting department looks the rest. We use several detailed forms to help us keep the payroll process in line. Some of the forms are to comply with government regulations, some to comply with union rules and some are in place to protect the producer from hapless lawsuits. See Appendix 4 for a list of example forms that I have used. There are two examples that I’d like to give to you regarding payroll. The first is a ‘Deal Memo’/Start Card: DEAL MEMO & PAYROLL START CARD (a) Every Studio has their own version of a “Deal Memo”. The Deal memo can get quite technical; however, the basic information that you need to provide is always the same. See the example on the next page, as well as an alternate Deal Memo and the “Standard Terms & Conditions” in Appendix 3. (b) In addition to the Studio’s Deal Memo you’ll often need to sign a Payroll Start Card for the payroll service. If you’re working for an independent show, this may be the only document you’ll need to fill out. It has the same information as the Studio’s Deal memo.

Chapter 34 — How to Get Paid On Your Film Shoot

Example: Preparing a Deal Memo

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NO BIG DEAL PRODUCTIONS, INC.DEAL MEMORANDUM Standard Deal

EMPLOYEE NAME John Gaskin

ADDRESS 75th Ave. West, #12F UNION LOCAL MEMBER PERMITTEE Non-Union N/A N/A

CITY & STATE ZIP CODE DEPARTMENT POSITIONNY, NY 10111 Set Production Set PA

TELEPHONE TODAY'S DATE START DATE 212-555-1212 Feb. 6/06 Feb. 6/06

DAILY EMPLOYEES STANDARD PROVISIONS: If a Daily Rate is indicated services are for a period of one day. If a

weekly rate is indicated, services are for a period of one week. If this is a week- to- week

RATE/HOUR $125/Day assignment, you agree that any fractional week of employment shall be considered a day-

'- today assignment paid at a daily rate or at a fractional payroll week as such provision applies

Amount to be paid for 6th/7th Work Day or Holidays to your wage classification. No other guarantees of employment, or other understanding,

worked will be paid per union contract unless either expressed or implied apply to your employment unless agreed to in writing and signed

otherwise specified by the Unit Production Manager. No terms aside from those specifically enumerated of this

document or in the applicable collective bargaining unit will be recognized.

WEEKLY EMPLOYEES OTHER CONDITIONS:

1. The wage rate agreed upon shall remain in effect during the entire period of employment;

WEEKLY RATE ______FOR ______HRS/WK notwithstanding any change in the min. rates of the applicable Collective Bargaining Agreements

at no time shall the rate paid be less than the minimun rate applicable to the category above.

HOURLY_________FOR_________MINIMUM 2. Where permitted by contract, this job may be subject to interchange.

HRS/DAY 3. It is understood that nothing contained herein constitutes a run of show guarantee.

Amount to be paid for 6th/7th Work Day of Holidays 4. Guaranteed hours are not applicable on Holidays, Travel Days of 6th or 7th day worked.

worked will be paid per union contract unless 5.All the results and proceeds of Employee's services shall be deemed a work specifically

otherwise specified. ordered or commisioned by No Big Deal Productions, Inc.

6. When car and/or box rental allowances are agreed to, the following applies:

_______________ Auto allowance Per Day____ Allowances are to be supplied by Employee to payment of all repairs, maintenance, insurance

Per Week _______ and all other expenses associated with the car or box rental.

**proof of insurance must be supplied Allowances shall be paid for days in which car or box is actually used.

_______________Box rental Per Day_____ No payment will be made for unworked holidays or any other days the employee is not working.

Per Week ________**box inventory must be suppliedIT IS UNDERSTOOD THAT THIS IS A: THIS DEAL MEMO IS EFFECTIVE ONLY UPON SIGNATURE AND APPROVA

OF THE BELOW NAMED UPM AND SUBJECT TO THE RELEVANT UNION

____X ___Week TO Week ________Daily Assignment AGREEMENTS AND SUBSEQUENT LETTERS OF VARIANCE.

Agreed and Accepted: John Gaskin Approved By:______________________________EMPLOYEE SIGNATURE Unit Production Manager

Date: Feb. 6/05 Date: ___________________________________

The above signed, acknowledges that the payroll service will act as the Producer's Agent in the withdrawal & remitting of all

government and Union/Guild deductions.

Figure 34.1

See Appendix 3 for an alternate Deal Memo and Standard Conditions

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Example: Preparing a Crew Time Card

CREW TIME CARD

PICTURE No Big Deal PROD# GUAR.HOURS

NAME John Gaskin SOCIAL SECURITY123-45-6789 JOB CLASSIFIC

LOAN OUT N/A FEDERAL I.D.# N/A LOCATION

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 17A/C Re- Occ.

State City Code Date Loc Day Call Out In Out In Wrap Rate CodeTotal Hrs 1X

CA LA 23-Feb Sprin1st 8 14 15 0 0 21 0 12 8.0

24-Feb

2nd 7 13 14 0 0 20 0 12 8.0

25-Feb

3rd 7 13 14 0 0 19 0 12 8.0

26-Feb

4th 8 14 15 0 0 21 0 12 8.0

27-Feb

5th 8 15 15 21 22 23 11 14 8.0

6th7th

COMMENTS: 40.0

I was upgraded to Key Set Prod'n Asst on Friday, Feb.27/04.

The Location Manager told me I should get something for my truck on Tuesday-he us

Please pay whatever the rate is please.ACCT# MEALS ALLOW MEALS - TAX PER DIEM ADV. ACCT# LODGING-ALLOW

ACCT# BOX RENTAL ACCT# CAR ALLOW ACCT# MILEAGE-ALLOW

ACCT# HAZARD AMOUNT ACCT# ACCT#

ACCT# ACCT# ACCT#

PRODUCER & EMPLOYEE ACKNOWLEDGE BY SIGNING THIS TIMESHEET THAT IF NO HOURS ARE RECORDED, IT IS PRESUMED THAT ONLY THE GUARNTEED HOURS WERE WORKE

EMPLOYEE SIGNATURE X John Gaskin

Work Meal 1 Meal 2

TOTAL HOURS

No need to fill out the Highlighted boxes.

Figure 34.2

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CREW TIME CARD The time card is t h e s e c o n d e x a m p l e o f payroll related administrat ion. The time card is prepared by each crew member and is approved by t h e c r e w members senior before being forwarded to the A c c o u n t i n g Department each Monday morning. S o m e departments have the 2nd in command within the department actually prepare the time cards based on a daily log (which is initialed by the crew member each day).


Example: Preparing a Crew Time Card

N/A RATE$9.29/HrWEEK ENDING Feb. 27/06

CATION/OCC.CODE ACCOUNT #

SpringfieldFOREIGN_N/A (Not in a Foreign Location)

18 19 20 21 23 24 25 26 27Meal

1.5X 2X Penalt Acct Rate Type Hrs Total

4.0 - $9.29/H 1X 40.0 371.60

3.8 - 1.5X 19.3 268.95

3.5 - 2X 2.1 39.02

4.0 0.1

4.0 2.0

19.3 2.1 MP

sed it to haul hay for the horses. 679.56$

LODGING-TAX PER DIEM ADV LODGING ADV MEAL MONEY-TAX

MILEAGE-TAX MILEAGE ADV ACCT#

ACCT# ACCT# SALARY ADVANC

ACCT# ACCT#

ED.

APPROVED: X Ruth McCardel

You would normally get 8 hrs at straight time, 4 hours at 1.5 times and any further hours at double time.(This varies with various

No need to fill out the Highlighted boxes.

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CHECK REQUISITION: The Check Requisition is a form used by a crew member to request a check issuance to a specific supplier in a specific amount. The check requisition is prepared by the crew member (say the set dressing buyer), approved by the department head (in this case, the set decorator), then approved by the Production Manager (either before or after turning it into the Accounting Dept., but in either case, before the Accounting Dept actually issues the check). All of the specifics need to be indicated on the check requisition—the vendor, full address, the applicable set#, the state of city taxes due, etc.

Chapter 35 - Requesting Checks On Your Film Shoot

Example: Preparing a Check Requisition

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"Talk 'The Talk' "No Big Deal Productions inc.

DATE: October 29, 2006 TOTAL AMOUNT: $157.95

REQUESTED BY: Joe Keener

DEPARTMENT: On Set AD Crew

CURRENC USDVENDOR INFORMATION:

PAYABLE TO: ABC Water Closet Company

ADDRESS: 77 Sunset Strip

CITY: Los Angeles STATE: CA ZIP: 90210

CONTACT: Betty PHONE #: 310-555-1212

FED ID#: 95-17171717 (required)

SS#: (must be provided for payments to individuals)

DESCRIPTION

DETAILS: We need portable toilets on set for the crew and

background extras.

IF RENTAL: FROM: Monday, Oct.31/06 END DATE Thursday, Nov. 7/06*Rentals must incicate full replacement valueW9 ATTACHED: Yes or No INVENTORYYes or No SET#: Barn Set,#211(*US vendors only)

REQUISITION DETAILS

DATE REQUIRED: Monday, Oct.31/06

INSTRUCTIONS: Send to Set first thing in the morning.

Note:Proper Supporting Documentation (Invoice, Receipts or Contract) must accompany this chequerequisition. FED ID, SS, W9 and Approvals are also required. WE WILL NOT GENERATE A CHECK WITHOUT ALL OF THE ABOVE

APPROVALS: G/L ACCT.

DEPARTMENT HEAD: Ruth McCardel

PRODUCTION MANAGER: 1099 / T4 / __% witholding

CHECK REQUISITION

Specify Pickup, Delivery, Mail or Other Instructions

ACCOUNTING DISTRIBUTION

Either a Fed eral ID # for Companies or a Soc.Sec.# should be provided.

The W9 is an accounting thing. See my web site to downlaod a form. It's an IRS form to identify the company or individual.

Figure 35.1

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PETTY CASH ADVANCE: Once you have signed on as a crew member you may qualify for a petty cash advance. The ‘Petty Cash Advance’ form on the opposite page can be found outside the Accounting Department (usually in a folder tacked on the wall, or in a stack on a table—look at the various form titles labeled on each folder). Once you have the Petty Cash Advance form approved by your department head and the Unit Production Manager you can traipse around to the Accounting Department for your petty cash advance. As you spend the advance you must tape down your receipts on a piece of scrap paper and write the details of each receipt on the ‘Petty Cash Report’. See the example on the next page. Usually the ‘Petty Cash Report’ is on the outside of an envelope (about 9” x 11 1/2” in size), where you write on the form on the front of the envelope and you keep the receipts, neatly taped to scrap paper, within the envelope. It is important to know that any petty cash that you “lose”, or accidentally spend over the weekend, will not be forgiven. Any lost petty cash comes out of your payroll, if necessary.

Chapter 36 — Handling Petty Cash On Your Film Shoot

Example: Preparing a Petty Cash Advance

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"NO BIG DEAL PRODUCTIONS"

PETTY CASH ADVANCE REQUEST

DATE: Feb. 24/06

PAY TO : John Gaskin DEPARTMENT: On Set Crew

AMOUNT REQUESTED: 400.00$

INTIAL FLOAT Nil

FLOAT INCREASE 400.00$

TOTAL CASH FLOAT OUTSTANDING 400.00$

I have read the accounting memo and understand the terms under which I amresponsible for said money.

I agree to keep copies of my reports, prior to their submission to accounting.

I agree that all petty cash advanced to me is my personal responsibility and any balance not accounted for at the end of production may be deducted frommy paycheck.

I will provide set numbers and identify inventory items, where applicable.

AGREED BY: APPROVED BY:

John Gaskin Ruth McCardelEmployee Signature

(Cash Received)

P/C #G/L #

Accounting Use Only

Department Head

Production Manager

Production Accountant

Figure 36.1

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Example: Preparing the Petty Cash Report

"No Big Deal Productions" PETTY CASH REPORT

NAME: ______ John Gaskin TRANS#:____________________

DEPT: ______On Set AD DeptPETTY CASH #: _____________

DATE: _____Feb. 14/06

DATE PAID TO PURPOSE INV EPS. SET1 Jan.21 Princeton Supplies File Folders

2 Jan.23 Beaver gas Station Gas (Lic#BD 4213)

3 Feb. 5 Pet Supplies Store Dog Leash for trainer

4 Feb.7 Super Market Star Craft food for trainers

5 Feb.10 A Deal Restaurant Lunch for office

6 Feb.14 Dark Tail Hardware Light Bulbs for Office

7 Feb.14 Shore Furniture Shelves for Accounting I

8 Feb.14 Dark Tail Hardware Rope-Barn Set 2119

12131415161718

TOTAL:

LEDGER CODING (ACCOUNTING ONLY) REDUCE:

AMOUNT REIMBURSED:

In TV prod'ns this is the Episode # that the cost relates to.

'I' stands for 'Inventory'. That's any single item that costs $100 or more.

The set# code '211' is chosen by the Art Director and by Accounting.

Figure 36.2

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You should understand the concept of a petty cash “float”. I’ve had experienced crew become baffled over this concept. It’s simple if you think it through. When you get an advance of $400 (see the advance on the previous page) you are said to have a Petty Cash “Float” of $400.00. When you spend $379.08 (as in this example), you would go to Accounting and ask for reimbursement of your receipts. If you were fully reimbursed you still maintain a $400 ‘Float’. However, if you reduced it by $200, as in this example, your new float would be $400—$200 = $200. Simple! And, that’s how a ‘Float’ works. PURCHASE ORDER

How a Petty Cash ‘Float’ Works

APPROVED BY: PM: ___________

DEPT HEAD: R.McCardel

ACCOUNTING: ___________

TOTAL Tax NET ACCT25.67

20.00

32.67

28.94

77.05

12.88

155.08

26.79

379.08

(200.00)

179.08

AMOUNT RECEIVED: $179.08

RECEIVED BY: John Gaskin

Don't forget to ask your boss for approval before sending to Accounting.


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PREPARARTION The purpose of a Purchase Order is to provide a way of recording committed expenses that have yet to be paid. It is also a convenient method of ensuring that the Department Head has a chance to prepare and approve his/her own expenses. Following that initiating of the expense, that same document can be reviewed by the Production Manager or Line Producer, where they also sign/initial the document to show that they approve of the expense. Thereafter, the Purchase Order is held in Accounting where it is entered to the records as a committed expense, thus updating the Weekly Cost Report so that everyone can get an accurate idea of what budgeted funds have been spent or committed. Every time a known expense has been incurred, but not paid for immediately, a “Purchase Order” is prepared by the person originating the expense. The blank Purchase Orders are obtained from the Accounting Department. The crew member is asked to sign out one or more at a time, depending on the number of Purchase Orders that you expect you’ll be preparing. For example, the Transport Coordinator, who prepares a Purchase Order for every vehicle, will normally sign out about 20 at a time. In our example in Figure 37.1, let’s say that the Transport Coordinator is making a deal for a Makeup & Hair Trailer. He would then prepare a Purchase Order—see next page—describing the trailer, showing the rental

Example: Preparing a Purchase Order

Chapter 37 — Preparing Purchase Orders

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NO BIG DEAL PRODUCTIONSPURCHASE ORDER P.O. # 2002

No Big Deal Productions, Inc. Today's Date: 02/11/06

1400 Big Deal Street

Los Angeles, CA 90038 Department: Production

Phone:

Fax: Requested by: John Gaskin

Vendor: Big Dog Trucking Phone: 818-555-1212

Address: 2200 Big Street Fax: 818-555-1214

City/State: Los Angeles, CA 90210 Contact: Donald

Fed ID/SS: 95-5551212 Corporation? yes_X no_____

Purchase: P/U: Return:

Rental: X Start: 02/11/06 End: 4/10/06

Qty Description Unit Price Amount

10 Wks (1) Makeup and Hair Trailer $3,100/Wk 31,000

When returned will cost $150 for final cleaning. 150

Sub-Total 31,150

Account Set Description Amount Tax 8.25% 2,570

Total 33,720

Entered:

Trans. #Approved by:

Dept. Head:__Ruth MaCardel Producer/UPM:_________________

White= Vendor, Yellow=Accounting, Pink= Accounting, Goldenrod=Department Accountant:________________

Note: PO's usually have 4 copies. Accounting ALWAYS gets the Pink and the Yellow.

Figure 37.1

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PURCHASE ORDER PREPARARTION (Cont’d) start date and end date, as well as any other charges that he knows about at the time of writing the Purchase Order. Most people refer to a Purchase Order simply as the first letters of each word— ‘P.O.’. Then he’ll send the Purchase Order to the Production Manager for final approval (or send it directly to the Accounting Department, who will forward it to the Production Manager for approval.) Once the Purchase Order has been agreed to by the Production Manager, the Accounting Department will enter the Purchase Order to the system as a “Commitment” and it will show as part of the total departmental costs in the Weekly Cost Report. When the invoice arrives in the mail from the vendor (in our example, Big Dog Trailers), the Accounting Department will pay the invoice (after approval from the Production Manager and Transport Coordinator) —increasing the amount of Actual Costs incurred and reducing the amount of the commitment on the Purchase Order. Similarly, if the Production Accountant is aware of confirmed commitments that have been contracted, but no Purchase Order has been prepared, then the Accounting Department will show the amount of that commitment in the same manner as a Purchase Order.



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For those new to the Biz, this stuff is hard to find—it’s pearls I’m giving you here. What do I want in return? Simply to do well in your chosen career and to tell others to buy the book.

John

APPENDICES

1. Relationship Between Number of Shooting Days and Shooting Period Budget 2. Basics on Union BTL Crew 3. Deal memo: Usual Standard Terms 4. List of Forms Available on my Web Site 5. Rate Comparisons in North America. 6. FAQ’s (Frequently Asked Questions) 7. Cost Report Covering Memo, and Cost Report Summary, and Cost Report Detail )Pages 1 through 12 8. Call Sheet Example, Front and Back 9. Daily Production Report 10. Author’s Resume NOTE: The figures shown are realistic, but are not to

be taken as actual. Each Production will have its own standards, as driven by the script, location and funding available.

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Relationship Between No. of Shooting Days and the Shooting Period Budget There is a relationship between the number of shooting days scheduled for a feature film production and the “Shooting Period Costs” — see the table below.

Appendix #1—Relationship, Shoot Days & BTL Budget

The Shooting Period Budget & The # of Shooting Days

Purpose: The purpose of this schedule is to show a relationship between the number of shooting days and the "Shooting Period Costs". (The "Shooting Period" includes the prep, shoot and wrap weeks).

Data: I have taken the data from 8 budgets that I have worked on. If the show was an independent production I have included the Contingency in Shooting Period Costs and ignored the Financing and Bonding charges.

Conclusion: The relationship between the shooting period costs and the number of days of shooting is expressed as $230,000/Day of Shoot Period (which includes Prep, Shoot and Wrap Days).

In Millions $ Thousands $(Prep/Shoot/Wrap)

Shooting Post Budget # Days $'000/DayGenre ATL Period Prod'n Other Total Shooting of ShootPeriod

Science Fiction 19.3 11.5 5.4 0.7 36.9 55 $209,000/DayDramatic 11.5 14.2 3.4 0.4 29.5 57 $249,000/DayDramatic 8.6 16.9 4.2 0.5 30.2 65 $260,000/DaySPFX/Dramatic 16.7 14.9 4.8 0.7 37.1 60 $248,000/DayRomatic Comedy 10.7 7.1 4.0 0.8 22.6 44 $161,000/DayComedy 15.0 13.1 4.5 0.6 33.2 53 $247,000/DayDramatic 30.5 11.7 3.2 0.9 46.3 50 $234,000/DayDramatic 17.6 14.0 5.2 0.7 37.5 60 $233,000/DayAverage "Shooting Period Costs" Per Day of Shooting $230,000/Day

Figure App.1.1

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You’d better take note that this isn’t a relationship that I’ve been familiar with before. So, you probably won’t win any points by raising it by the Craft Service table. However, it’s based upon real numbers and could be very useful for those of you who are only interested in having a very broad check on your “Below-The-Line” budget. By comparing the “Shooting Period Costs” of each show with the number of days of shooting I see that there is an average cost of about $230,000 per day of shooting. This is a very ‘broad strokes’ comparison for feature film productions, but it seems to work. What good is this relationship? Well, you can check the “Shooting Period” budget in general terms. If your 1st Assistant Director says you can shoot the show in 42 days and your budget is much less than 42 days x $230,000 = $9,660,000, then you should start to ask some very pointed questions—in other words, Walk The Talk.

Appendix #1-Relationship: Shoot Days & BTL Budget

The Shooting Period Budget & The # of Shooting Days

The “Shooting

Schedule” Budget =

Number of Shooting

Days x $230,000

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Within the realm of “Crew Labor” there are Union Crew and Non-Union Crew. The Non-Union Crew are almost non-existent now. It’s a very low-budget show that has a non-union crew.

The Union Crew is a major part of the cost of producing a film. The longer the day worked, the more overtime penalties paid by the Producer. That’s the obvious overtime cost. Additionally, there are the penalties paid by the Producer for asking the Union Crew to have less than 10 hours of rest per day, and also a penalty for not providing a meal break within 6 hour time periods.

Here’s a basic separation of unions:

1.Director’s Guild – the Production

Manager, Assistant Directors and Location Manager are almost always part of the Director’s Guild (in Montreal they aren’t, but that’s a rare exception). In some areas the USA and Canada the Directors Guild also represents other categories, such as the Art Dept., Locations Crew, and Editors.

The Director’s Guild is difficult, but not impossible, to join. Before you can join the Director’s Guild you need to reach a certain number of hours of film production days and have three letters of recommendation.

Contact your local Director’s Guild for their current entrance requirements. There may be a ‘Trainee’ program that you could qualify for, or if you already have experience in some other capacity you could be ‘Grandfathered’ in. This gets complicated—for now, just get some experience and talk to those who

Appendix #2—Basics on BTL Union Crew

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are Director’s Guild members. There’s only one position on the production

set that is not unionized and that newcomers can get the required amount of worked time — that’s the “Set PA” (for the uninitiated, the term ‘PA’ means Production Assistant—the bottom of the food chain, the ‘go-fer’.)

This is the favored way for graduates from film schools to get into the business. It’s a grind for a couple of years until you can prove yourself as more persistent than the next person.

From the PA position you can get enough production experience to join the Director’s Guild based on the number of production days worked, etc. (check with your local Director’s Guild for the current rules.)

The number of film school graduates looking for these few openings is discouraging. Take heart — if you’ve read this book you’re about 100 miles ahead of the competition. Film school students are educated to believe that they’ll graduate as directors, camera assistants, producers, writers and editors. It’s a real shock to find out that their real job is to hold the background extras away from the lunch table, make sure that nobody walks through a door when the red light is flashing, ensure that the women’s washroom has enough toilet paper, etc.

If you simply know how to prepare a petty cash envelope, Talk ‘the Talk’ about petty cash advance, petty cash envelopes, union and non-union extras, etc. you will so impress the job interviewer that you’ll be way ahead of the pack in getting the two positions not already claimed by the producer’s and director’s friends and relatives. By simply knowing how to prepare and talk about these simple tasks you could easily be hired just so that the department head can delegate these tasks


Directors Guild

The number of film

school graduates

looking for these

few openings is

discouraging. Take

heart—if you’ve

read this book

you’re about 100

miles ahead of the

competition.

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to you. (Really—this is not just a wise crack). 2.IATSE – there are many different locals of the IATSE Unions which represent every area of the crew throughout the USA and Canada. In the USA, IATSE is split between East Coast and West Coast. It basically represents everyone not already represented by the Teamsters and the Directors Guild. The many different Locals have the same (or similar) rules - with enough differences among them to make the accountants pull their hair out. There are a scary number of rules, rates, variance requests from those rules, as well as different rules and rates for East Coast crew doing the same thing as West Coast crew, etc. etc. etc. Just know that the Accountant has that mess under control (sort of). All you want are the summarized facts that you’ll find in this booklet. There are only two categories that are no longer controlled by unions—the “Set PA’s” and the “Office PA’s”. The Set PA was referred to in the Director’s Guild section above. The Office PA works out of the office as ‘go-fer’. Their tasks include just about any kind of task required at that moment—from photocopying to getting lunch to cleaning washrooms. The taking of orders from angry old ladies may be an unpleasant way to start in the business, but any PA position will at least lead to some kind of exposure and you can see first hand what kind of impossible posturing goes on. If you’re honestly interested in set dressing, for example, you can at least meet some set dressers and Talk ‘the Talk’ about things they may be only too willing to delegate to a keen novice (like preparing timecards, petty cash envelopes, check requisitions, etc.).


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See Chapters 31 to 37 for training on these elementary tasks that the crew never seem to want to learn right, but which give you a big edge in rising to the top of your profession. 3.Teamsters – The Teamsters represent all drivers and all animal handlers throughout the USA and Canada (with the exception of Ontario and Quebec where the Teamsters haven’t managed to get a foothold yet). The Teamsters are old-time union types who believe strongly in seniority and protecting their own membership. The Teamsters are quite expensive, considering their skill level (most drivers in the film business are not driving those big tractor-trailers, but rather vans and cars). A driver in Los Angeles makes about $2,500/Week and in New York about $3,000 per week, so they’re pretty expensive. Always try to Talk ‘the Talk’ - keep the number of drivers down and always push to reduce the number of vehicles—you’ll save fortunes in labor. On following page is a story that was told to me by a New York Teamster. He claimed it was a true story that had happened in the late 1980’s. It describes the power of the Teamster unions and it implicitly urges Directors and Producers to plan their shot lists carefully.


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A Teamster driver was told to break for lunch. He was told to park his truck at a certain place on the street behind the camera’s viewing angle. The driver did as he was told and went off to a restaurant not far away to have his lunch. The Director then had a change of mind and decided that he wanted to shoot that part of the street after all. The truck had to be moved, but none of the Teamsters would move it, because only the driver assigned to that truck could move it. So, the driver, who had been broken for lunch, was sought after and shortly was found eating his lunch contently in a restaurant nearby. He was told of the problem and was asked to come away immediately to move his truck. He looked at his watch and declared that he was sent for lunch and that he would return when his lunch time was over. The Director, Producers, actors and the entire crew were forced to wait for another 35 minutes until the driver’s lunch time was over. He then quietly got in his truck and moved it to where he was told and not a word of reprimand could be said to him—under the Teamster rules he was the perfect employee. It’s up to us all to learn the rules of the game, then play those rules to win. At least with unions the rules are clearly written into their collective bargaining agreements. The rules of producing a film production are not so clear — and that’s why it’s so important to learn how to Walk The Talk .

Story #13

Everybody Has a Teamster Story

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Appendix #3-Alternative Deal Memo With Terms on the Back

"NO BIG DEAL": CREW DEAL MEMO

COMPANY: NO BIG DEAL PRODUCTIONS PICTURE: “NO BIG DEAL” PLEASE PRINT CLEARLY START DATE:_________________________ NAME:______________________________ SOCIAL SECURITY #:__________________ ADDRESS:___________________________ PHONE:_______________________________ _____________________________________ POSITION:_____________________________ LOANOUT CO. (IF APPLICABLE):___________________________________________________________ (Loanout Employees MUST present at the time of hiring and prior to any payment a copy of their Articles of Incor-poration. And a W-9 form signed by an officer of the Company.) FED. ID#:____________________________ UNION AFFILIATION:___________________ SALARY: WEEKLY RATE:_____________________ HOURLY RATE:________________________ GUARANTEE:_______________________ DAILY RATE:__________________________ WEEKLY PER DIEM:_________________ GUARANTEE:__________________________ TRAVEL DAYS SALARY:_____________ SUNDAY:______________________________ EQUIPMENT RENTALS*______________ AT $______________PER WEEK (*w/prior UPM approval only) CAR ALLOWANCE/MILEAGE*___________________________________________ (*w/prior UPM approval only) NOTIFY IN EMERGENCY:_____________________ PHONE:________________ The exclusive services of Employee will hereby be rendered upon the terms and conditions herein set forth for so long as Company requires such services in connection with the Picture. The standard terms and conditions on the reverse side of this deal memo are hereby incorporated herein by reference. Car allowance, Mileage, Box or Kit Rentals, Meal Money, Per Diems and Living Allowance will be taxed per mandatory I.R.S. guidelines as applicable and will only be paid if agreed to in advance by the UPM. All Box/Equipment Rentals begin and end with principal photography and are not paid for unworked Holidays unless other-wise noted. No 7th day, holiday, or in-town 6th day will be paid unless authorized in advance by the Unit Production Manager. No over-time prior to company call or after wrap may be worked, nor any forced call incurred without the UPM's prior approval. Time cards must be prepared and signed by individual employee and reflect actual hours worked. Time cards will not be ac-cepted without department head or designate approval. Employment hereunder is of an "at will" nature and subject to termination by Company without notice. While employed hereunder, Employee's services shall be on an exclusive basis to Producer. AGREED TO: EMPLOYEE PRODUCER/ PRODUCTION MANAGER: PRODUCTION EXECUTIVE: ___________________________ _________________________ _____________________ _______ Employee please initial here if name as spelled above is correct. If incorrect, please print name on line below: (BLOCK PRINT NAME) ________________________________________________________ By signing above Employee acknowledges and agrees to the Standard Terms and Conditions on reverse.

Figure App.3.1

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STANDARD TERMS AND CONDITIONS 1. AGREEMENT: All provisions of this deal memo and all services rendered hereunder are sub-ject to and must provide no less than the minimum of the applicable collective bargaining agree-ment, if any. If the provisions of this deal memo conflict with applicable law, applicable law shall prevail. 2. IRCA: In accordance with the Immigration Reform and Control Act of 1986, any offer of employment is conditioned upon satisfactory proof of application identity and legal ability to work in the United States. 3. GUARANTEES: This deal memo and its attachments contain the full and complete elements of the agreement and supersede any oral or written terms not specifically set forth on this memo or its attachments. If a daily rate is indicated, services are for a minimum period of one day. If a weekly rate is indicated, services are for a minimum period of one week. Employee shall only be compensated for actual days worked. Nothing contained herein shall be construed as a guarantee of consecutive employment. 4. SCREEN CREDIT: Any credit given is at the sole discretion of the Producer, unless required by the collective bargaining agreement. 5. PUBLICITY: Employee agrees not to give any interviews or authorize any publicity relating to the picture or employee's services thereon without Producer's express permission. Employee grants Producer the right to use his name, likeness and voice in publicity related photographs, "behind the scene" films and "electronic press kit" video releases and in advertising or promoting the picture. 6. RIGHTS: The results and proceeds of Employee's services in connection with this agreement shall be deemed a “work for hire” and Producer shall own all rights thereto. If such results and proceeds are deemed not a “work for hire,” Employee hereby assigns all rights, including copy-rights, trademarks and tradenames therein to Producer. 7. PRODUCT PLACEMENT: All product placements require express permission from the Pro-ducer. 8. TAX REPORTING: All per diems, mileage payments and employee rentals will be reported to the appropriate government tax authorities as required by law. It is Employee's responsibility to keep records for personal tax purposes. 9. TRAVEL TO DISTANT LOCATION: Transportation to and from distant locations, if any, will be provided by Producer. The Producer does not grant open permission to the Employee to drive to a distant location. Any unauthorized travel is at the Employee’s own risk and expense. 10. INSURANCE: Insurance coverage on items or vehicles rented from Employee is the responsi-bility of the Employee unless formally agreed to otherwise. 11. EMPLOYEE RENTALS: Any rentals from an employee, such as car, box, equipment, etc. must be communicated in an appropriate form and attached to this deal memo for Producer ap-proval. Where applicable Employee must provide a detailed inventory of the equipment being rented. Note that all kit/box/equipment rentals will be for principle photography days only, unless otherwise noted. 12. STRICT POLICY: By signing on the reverse Employee acknowledges that the “Policy & Pro-cedures” memo (relating to the administrative matters of Petty Cash, Purchase Orders, Inventory, etc.) has been read and understood. Furthermore, by signing on the reverse, Employees under-stands that Producer will not tolerate substance/alcohol abuse while working on the job and that Producer will strictly enforce the relevant safety guidelines for this production. agrees that in the event of NOTICE IS EFFECTIVE ONLY UPON SIGNATURE OF EMPLOYEE, UPM AND THE PRODUCER'S PRODUCTION EXECUTIVE.

Example of Usual Deal Memo Standard Terms and Conditions

Appendix #3-Alternative Deal Memo With Terms on Back

Figure App.3.2

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A. Budgeting Related Forms Sample Budgets,2004 Rates: (You need to own a copy of the budgeting software for this to work) -Shooting Period Only, NY (Low Bdgt) -Shooting Period Only, LA (Low Bdgt) -Shooting Period Only, Toronto (Low Bdgt) B. Cost Report Forms & Cost Analysis Related Forms: Covering Memo Example Cost Report Example (in Excel, same as App.7) Cost Calculation of a Generic Day’s Shooting: -in New York -in Los Angeles -in Toronto C. Payroll Related Forms: Accounting Policies to All Crew Sample 1 & 2 Box & Car Rental Sample Box Rental Sample 1 & 2

Car Allowance Sample 1 & 2 Deal Memo sample 1,2,3 Deal Memo Standard Terms Sample Final Cast List Sample I-9 INS Form Labels for Payroll Sample Start Slip Entertainment Partners-US&Cdn Start Slip Televector Disc-Cdn SAG Casting Data Instructions SAG Casting Data Report SAG Exhibit G Timesheets, Sample 1 & 2 SAG Daily Performer Deal SAG Daily Stunt Deal SAG Weekly Performer Deal SAG Weekly Stunt Deal

Appendix #4-List of Forms Available on My Web Site

Various Forms on My Web Site

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Timecard— Crew Timecard— Cast (SAG) Timecard-Entertainment Partners-CdnCrew/Actra Timecard-Televector Disc-CdnCast(Actra) W-9 IRS Form D. Vendor Payment Related Forms Check Request Sample Check Request in French Credit Information Sheet Journal Entry Form Sample Labels-Accts Payable Sample New York Sales Tax Exemption Form Purchase Order Sample Purchase Order Revision Form Stop Payment Master Form W-9 IRS Form W-9 Letter to Fax Vendor Sample W-9 Letter to Mail Vendor Sample E. Petty Cash Related Forms Cash Payment Form Sample Petty Cash Advance Sample 1,2,3 Petty Cash Report Sample Per Diem Payment Form Sample F. Cash Flow Template Weekly Funding Request Sample Simple Weekly Cash Flow Presentation

Appendix #4 — List of Forms Available on My Web Site

Various Forms On My Web Site

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The purpose of this table is to show a table of rate com-parisons for four major filming centers in North Amer-ica. I arbitrarily chose New York, Hollywood, Vancou-ver and Toronto. As you can see, the most expensive rates appear to be in New York. Taking into account a conservative ex-change rate (but not factoring in the infamous Canadian Tax Credits), the cheaper hourly rates are definitely in Hollywood North. (Sorry, Arnold.) I think that New Zealand and Australia also have rates that compare to the rates in Canada. If rates are to stay

in the USA, crews may have to tighten their belts a bit.

Appendix #5 — Rate Comparisons in North America

Rate Comparisons

HOURLY RATES AS OF SPRING 2004 IN US$Average

Electrician Trailer Driver Carpenter Hairstylist Hr'ly Rate

New York 27.63$ 34.76$ 32.42$ 39.75$ 33.64$

Hollywood 28.95$ 26.86$ 28.95$ 33.73$ 29.62$

Vancouver 18.96$ 18.96$ 20.99$ 22.00$ 20.23$

Toronto 19.46$ 16.28$ 21.79$ 23.29$ 20.20$

Figure App.5.1

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Who Decides How Much to Budget In Total? The total amount of the budget is given birth according to what the market will bear. If the script has been sold as a certain genre with certain Directors and cast at-tached to it, then you know that the Studio Ex-ecs/Financiers have had a rough budget presented to them. Furthermore, you know that the investors are generally satisfied that they will invest that amount (and no more) and they expect a good product which will generate a return on their investment.

At that point the Producer will turn over the budget to a Line Producer or Unit Production Manager for refining of the budgeting - all within the same bot-tom line. (See the next FAQ, “Who Tells the Dept Head His Budget Limits?”). It has a detailed rundown of sub-sequent events in the budget process.

The Production Accountant is usually the person who tabulates the departmental budgets and enters the figures to the overall budget (in a computer software agreed to by the Financiers), ensuring that the depart-mental budgets seem to be in line with reality so that unknown over-budget items won’t ‘blind-side’ the pro-duction later. Who Tells the Dept Head His/Her Budget Limits? The short answer is the Unit Production Manager, in tight communication with the Producer, usually tells the department heads what their budget limits are. (See also the next FAQ). How Do You Arrive At A Final Budget? -Once the budget has been established by the Stu-dio/Financiers it has a good going over by the Producer and Production Manager (on larger productions the

Appendix #6 — Frequently Asked Questions

FAQ’s

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How Do You Arrive At A Final Budget (Continued)? Accountant will also be involved very early on-I hope). -The Set Design Department is usually the first department to start preparing detailed budgets for the construction of the sets. Some Producers want the Set Design Department to know the range of budget they’re expected to fall into; some Producers just ask the Pro-duction Designer to come up with an independent num-ber on their own. (Construction usually is a major part of most budgets because it’s easier to control the shoot in a studio than at a location). -Much attention is placed on the departmental budget that has the most importance to the script (for ex-ample, Wardrobe for a period piece, Special Effects for a Sci Fi flick, etc.) Those department heads will be hired early on and will be asked to prepare budgets based on their lead from the Director—again, sometimes within certain parameters, and sometimes just as a new number. -Department Heads should be aware that the Unit Production Manager often will quote a number about 10% less than the actual budget. It’s a game that experi-enced department heads play like professional bridge players. Any budget limit can be pushed up and over the line during this “prep” stage. Also, the Unit Produc-tion Manager expects the department head to defend any unreal limitations. Once this game has been played back and forth, an agreed upon budget is arrived at. - The amount of the ‘Bottom Line’ allocated to each department is monitored as the Director communi-cates to the Producer and the department heads his/her vision. Any ‘Over Budget’ categories must be reduced by an equivalent amount of ‘Under Budget’ savings in another department. In the early going, this is very theoretical. The final decisions are made by the


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How Do You Arrive At A Final Budget (Continued)? Producer, who must handle the Director and the Financi-ers. -As the crew is hired the Budget becomes more and more “actualized” - that is, the actual hourly rates match the budget. -As the First Assistant Director issues Shooting Schedules, based on the vision of the Director and the input of the Producers and the Studio/Financiers, the De-partment Heads will reassess their original budgets to fall into line with the reality of the shooting schedule. -Throughout this process the Unit Production Manager, the Producer and the Production Accountant are attempting to balance the Director’s appetite with the amount of funding available to produce the show. The Department Heads are reminded that they are to keep the UPM and Producer informed of any decision that the Di-rector makes that will significantly affect the Budgeted amounts for their department. -Any impasse between the Director’s vision and the cost of implementing that vision is first taken up by the Producer. On a lower budgeted film production the Director will be expected to fall into line pretty quickly. As the production gets larger in scope, the Director and the Cast start to have more input into the vision of the film. If the cost of implementing that vision exceeds the ‘Bottom Line’ budget, it’s up to the Producer to reason with the Director back to a number that’s in line with the Studio’s/Financier’s concept of what’s enough. -Finally, the Producer can ask the Studio/Financier for their input. This is the final word. They may decide it’s worth the extra funding — or not. NOTE: It’s important to everyone’s career to give the Studio/Financiers the opportunity to participate in es-sential decisions. It’s the honorable thing to do — after

It’s important to everyone’s career to

give the Studio, or the Financiers, the opportunity to

participate in essential decisions. It’s the

honorable thing to do — after all, it is their

money.

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How Do You Arrive At A Final Budget (Continued)? all, it is their money. I would welcome the opportunity to be a troubleshooter when the film production goes overbudget. After all, I can Walk The Talk. Who Does the Negotiating For Crew Pay Rates? The unions and guilds have “scale” rates for every cate-gory. The few non-union positions (like Set Production Assistants, Director’s Assistant and Producer’s Assis-tant) are usually fought over by fresh film school gradu-ates—so, they’ll work for whatever they’re paid. Most experienced key crew are paid $2.00 to $5.00 above scale, depending upon the demand for their services in that particular location. Often there are “box rent-als” (rental of their personal tool boxes ranging in size from a simple computer to a range of table saws and drills, etc.) attached to their deals as well. Sometimes a box rental can amount to over a $1,000 a week. There are a few positions that are considered key to the production so are negotiated by the Studio: -Director and Producer -Production Designer -Director of Photography -Editor -Visual Effects Companies (Computer Graphics) -Music Composers The Director has a great deal of influence over who is chosen in this list, as you may well imagine. The agents for the fortunate few who the Director really wants can demand the sky. So, I consider it good man-agement to just let the Studio Exec’s duke it out with the

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Who Does the Negotiating For Crew Pay Rates? (Continued) agents. I’m sure the poor Production Manager is happy to stand aside. All other positions are negotiated by the Unit Production Manger with input from the Producer. Who Does the Negotiating For the Cast Fees? The Director has last word on the casting. As a result, the Studio/Financiers need to be the negotiators to try to bal-ance the Director’s “need” for an actor with the amount of funding available. -The Stars are almost always negotiated by the Studio (or the Stars) came attached to the project from the outset). The Casting Director may be expected to be the contact between the Studio and the Star’s agent. -The next level of cast, the “Supporting Cast” again are almost always negotiated by the Studio, but have some input from the Casting Director and Producer. The Producer may have specific ideas on who to cast, given the ‘Bottom Line’ of the budget available. Also, the Casting Director will be contributing their experience in negotiating the rates and finding the right talent for the part. Again, the Director chooses the supporting cast, given the budget limits and availability of the cast he likes. -The next level of cast, usually called the Day Players and Stunt Performers, are negotiated by the Cast-ing Director, with input from the Producer regarding the

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Who Does the Negotiating For the Cast Fees? (Continued) funding available, and from the Director regarding the “look” that the Director is going for. Who Actually Prepares the Weekly Cost Report? The Weekly Cost Report is initially prepared by the Pro-duction Accountant for review by the Producer and Unit Production Manager. Once the Producer and Production Manager have reviewed it, and agree with it, the Cost Report is issued under all of their names. It goes to the production and finance personnel at the Studio, to any interested Financier, to the Producers of all levels and to the Director. The report usually is presented in 3 parts: 1.A “Covering Memo” defining the time period

covered and highlighting any over-budget and un-der-budget items. See Appendix 7 for an example of the Covering memo.

2.Any variance listing that is too detailed to show

on the face of the Covering Memo. 3.The Summary Cost Report (a 1 or 2 page report

showing the totals per department), followed by a Detailed Cost Report showing the totals & vari-ances by each account number. See Appendix 7 for an example.


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This Appendix 7 presents an example of a full weekly Cost Report. When reviewing the report bear in mind that the PUR-POSE of the Cost Report is to predict the final cost of the film production (called the ‘Estimated-Final-Cost’). From this EFC you can predict the ‘Over Budget’ or ‘Under Budget’ variance. I have shown many examples of the types of questions that you can ask when review-ing the Cost Report for yourself. Look for ways to SAVE money so that you can SPEND money on what you know will enhance the quality of the final film. If you’re a Producer or Production Manager, you’ll be bugged incessantly by the Director, or the Di-rector of Photography, for interesting camera and lighting toys, or interesting (read as expensive) locations. It really helps to know that you can negotiate a reduction of costs in one area in order to allow for added costs in an-other area. It’s a win-win situation—IF you’re prepared. Remember that the Budget was originally approved back before the shooting started, so there’s a very good chance that there will be many variances. It’s up to the Pro-ducer, Production Manager and Production Accountant to find ways to offset the Over Budget items with real Un-der Budget items. If that is impossible, then a long dis-cussion among the Producer, Director and the Financiers has to happen immediately. The Studio/Financiers want to know that the additional cost will enhance the box of-fice returns. If they’re not convinced, then you may be looking for another job—so, have your ammo ready! (See Column # definitions in Chapter 21).

Appendix #7 — Your Report Card, The Cost Report

Your Report Card

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Walk The Talk Inc Studio D, 2145 Sunset Blvd., West Hollywood, CA 90210 Ph(213)555-1212 Fax(213)555-1214

To: (Studio Finance Director) Nov.14, 2007 From: (Production Accountant), (Production Manager), (sometimes also the Line Producer) CC:(Executive Producers), (Director), (Studio Production Exec.), (Other Involved Financiers and Senior Studio Exec’s) Re: COST REPORT WEEK-ENDING NOVEMBER 15, 2007 Here is our Cost Report for the weekending Nov. 15/07. The original schedule of 55 days has changed to 56 days – we are shooting one less day in Los Angeles and adding two days in New York for a total of one shoot day and one travel day over. We have finished 10 days of production in Montreal (shot as Europe); and 20 days in Los Angeles. Savings in the Montreal Shoot is expected to offset much of the overage created by shooting the 5 days in New York. The scheduled finish date is Jan.7/08. The crew/cast payroll is entered through to Nov. 10th, 2007.

Appendix #7 — The Covering Memo to the Cost Report

TOTAL COSTS AND COMMITMENTS TO DATE 10,331,783$

ESTIMATES TO COMPLETE 18,920,286

APPROVED BUDGET 29,060,325

VARIANCE (OVER)/UNDER (191,744)$

VARIANCE FROM PREVIOUS WEEK (OVER)/UNDER -$

VARIANCE EXPLAINED BY:

1.The shooting in New York is expected to cost an add'l $191,744 - see the attached schedule. The $191,744 will be offset by an expected savings in the Montreal of approximately $100,000 - more detailed report of the savings to follow next week. This net overage of $91,744 has been discussed with the Studio and has been acknowledged.

Covering Memo

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Appendix #7 — Example of a Full Cost Report—Summary

Walk The TalkPRODUCTION SUMMARY COST REPORT

Period Ending Nov. 15, 2007

Account ACCOUNT ACTUAL ACTUAL COMMITS TOTAL ESTIMATE ESTIMATED BUDGET ( OV ER ) / U nd er

Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCEABOVE THE LINE

1100 STORY & OTHER RIGHT - 638,495 - 638,495 10,065 648,560 647,560 (1,000) 1200 WRITING 3,986 229,687 - 229,687 114,864 344,551 345,049 498 1300 PRODUCER & STAFF 134,142 661,382 385 661,767 1,175,940 1,837,707 1,837,707 - 1400 DIRECTOR & STAFF 96,106 721,479 42,156 763,635 1,408,793 2,172,429 2,174,250 1,822 1500 TALENT 801,188 1,385,567 114,734 1,500,301 5,571,163 7,071,464 7,069,564 (1,900)

ABOVE THE LINE TOTAL 1,035,422 3,636,611 157,275 3,793,886 8,280,826 12,074,711 12,074,131 (581) BELOW THE LINE PRODUCTION

2100 PRODUCTION STAFF 63,659 616,880 5,576 622,456 641,482 1,263,938 1,256,616 (7,322) 2200 CAMERA 102,264 277,040 290 277,330 673,769 951,099 947,159 (3,940) 2300 ART DEPARTMENT 17,480 248,864 87 248,951 127,274 376,225 366,739 (9,486) 2400 SET CONSTRUCTION 74,170 511,584 5,066 516,650 306,480 823,131 825,179 2,048 2500 SPECIAL EFFECTS 3,421 4,591 282 4,873 236,827 241,700 245,796 4,096 2600 SET OPERATIONS 55,230 175,292 82,199 257,491 453,372 710,863 685,511 (25,352) 2700 ELECTRICAL 40,363 127,230 224,079 351,309 357,971 709,280 707,564 (1,716) 2800 SET DRESSING 106,727 657,202 1,656 658,858 724,910 1,383,767 1,375,231 (8,536) 2900 ACTION PROPS 24,418 129,530 1,022 130,552 161,524 292,076 276,600 (15,476) 3000 PICT. VEH. & ANIMALS 8,905 26,547 - 26,547 62,759 89,306 89,306 - 3100 EXTRA TALENT 47,094 468,692 - 468,692 59,288 527,980 527,980 - 3200 WARDROBE 52,490 299,849 2,335 302,184 357,606 659,790 635,278 (24,512) 3300 MAKEUP & HAIR 53,776 104,882 16,200 121,082 257,529 378,611 385,995 7,384 3400 SOUND 15,697 45,427 13,056 58,483 124,439 182,922 178,554 (4,368) 3500 LOCATION 85,601 678,222 55,457 733,679 856,718 1,590,397 1,581,897 (8,500) 3600 VIDEO TAPE - - - - 37,328 37,328 37,128 (200) 3700 TRANSPORTATION 165,894 749,590 265,586 1,015,176 1,137,352 2,152,528 2,054,576 (97,952) 3800 FILM & LAB 111,812 181,121 3,180 184,301 311,021 495,322 494,122 (1,200) 3900 TESTS 8,262 49,928 2,901 52,829 5,771 58,600 58,600 - 4000 FACILITY EXPENSES 3,891 75,621 21,124 96,745 56,942 153,687 153,687 - 4100 SECOND UNIT 2,262 213,420 12,775 226,195 81,140 307,335 307,335 -

BELOW THE LINE PROD'N TOTAL 1,043,417 5,641,514 712,871 6,354,385 7,031,500 13,385,885 13,190,853 (195,032) BELOW THE LINE POST PRODUCTION

5000 EDITING & PROJECTION 15,537 67,186 110,804 177,990 1,293,607 1,471,597 1,475,565 3,968 5100 MUSIC - - - - 1,000,000 1,000,000 1,000,000 - 5200 SOUND (POST-PRODUC - - - - 526,782 526,782 526,782 - 5300 FILM, TAPE, & LIBRARY 134 249 - 249 200,371 200,620 200,620 - 5400 VISUAL EFFECTS - - - - 50,000 50,000 50,000 - 5500 TITLES & OPTICALS - 72 - 72 105,528 105,600 105,600 -

BTL POST PRODUCTION TOTAL 15,671 67,507 110,804 178,311 3,176,288 3,354,599 3,358,567 3,968 BELOW THE LINE OTHER CHARGES

6000 INSURANCE - - - - 220,000 220,000 220,000 - 6100 PUBLICITY - 161 - 161 50,509 50,670 50,670 - 6200 GENERAL EXPENSES 28 5,040 - 5,040 161,164 166,204 166,104 (100)

BELOW THE LINE OTHER CHARG 28 5,201 - 5,201 431,673 436,874 436,774 (100) TOTAL DIRECT COSTS 2,094,538 9,350,833 980,950 10,331,783 18,920,286 29,252,069 29,060,325 (191,745) BELOW THE LINE CONTINGENCIE - - - - - - - - COMPLETION COSTS TOTAL - - - - - - - - NON-DIRECT COST TOTAL - - - - - - - - PRODUCTION TOTAL 2,094,538 9,350,833 980,950 10,331,783 18,920,286 29,252,069 29,060,325 (191,745)

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Appendix #7– Example of Full Cost Report Page #1

Walk The TalkPRODUCTION COST REPORTPeriod Ending Nov. 15, 2007 Page 1

Account ACCOUNT ACTUAL ACTUAL COMMITS TOTAL ESTIMATE ESTIMATED BUDGET ( OV ER ) / U nder

Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCEABOVE THE LINE

1101 STORY RIGHTS - 620,000 - 620,000 - 620,000 600,000 (20,000) 1102 OTHER RIGHTS - 38,495 - 38,495 10,065 48,560 47,560 (1,000) 1100 STORY & OTHER RIGHTS - 658,495 - 658,495 10,065 668,560 647,560 (21,000) 1201 WRITERS SALARIES - 195,000 - 195,000 100,000 295,000 295,000 - 1202 SECRETARIES - 65 - 65 435 500 - (500) 1203 SCRIPT PRINTING 309 1,097 - 1,097 143 1,240 2,500 1,260 1204 TRAVEL & LIVING EXPEN - 5,462 - 5,462 1,712 7,174 7,174 - 1205 RESEARCH 3,677 3,677 - 3,677 - 3,677 3,500 (177) 1299 FRINGES - 24,386 - 24,386 12,574 36,960 36,875 (85) 1200 WRITING 3,986 229,687 - 229,687 114,864 344,551 345,049 498 1301 EXECUTIVE PRODUCER 9,038 112,304 - 112,304 162,696 275,000 275,000 - 1302 PRODUCERS 15,340 302,624 - 302,624 822,376 1,125,000 1,125,000 - 1303 ASSISTANTS 1,800 18,240 - 18,240 30,739 48,979 48,979 - 1304 TRAVEL & LIVING EXPEN 6,805 97,703 305 98,008 92,994 191,002 187,902 (3,100) 1305 INDEP PRODUCER OVERH 100,000 100,000 - 100,000 - 100,000 100,000 - 1306 PURCHASE & SUPPLIES - 154 80 234 4,766 5,000 5,000 - 1307 RENTALS - 117 - 117 2,383 2,500 2,500 - 1308 WRAP PARTY - - - - 15,000 15,000 15,000 - 1309 ENTERTAINMENT - 2,617 - 2,617 4,883 7,500 7,500 - 1310 MISCELLANEOUS EXPEN - 10,000 - 10,000 400 11,500 13,500 3,100 1399 FRINGES 1,159 17,623 - 17,623 39,703 57,326 57,326 - 1300 PRODUCER & STAFF 134,142 661,382 385 661,767 1,175,940 1,837,707 1,837,707 - 1401 DIRECTOR 69,565 500,869 - 500,869 1,099,131 1,600,000 1,600,000 - 1402 CHOREOGRAPHERS - 1,375 - 1,375 - 1,375 - (1,375) 1403 ASSISTANTS 625 4,563 - 4,563 19,737 24,300 24,500 200 1404 TRAVEL & LIVING EXPEN 10,250 100,931 42,019 142,950 39,635 182,585 184,585 2,000 1405 PURCHASES & SUPPLIES 19 1,680 137 1,817 683 2,500 1,500 (1,000) 1406 RENTALS - - - - 125 125 2,500 2,375 1407 ENTERTAINMENT 236 617 - 617 1,883 2,500 2,500 - 1408 MISCELLANEOUS EXPEN - 65 - 65 2,435 2,500 2,500 - 1499 FRINGES 15,411 111,379 - 111,379 245,164 356,544 356,165 (379) 1400 DIRECTOR & STAFF 96,106 721,479 42,156 763,635 1,408,793 2,172,429 2,174,250 1,822

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NOTE: The (Brackets) indicates OVER Budget. Some studios do the opposite.

There is an overage of $3,100 in Travel Exp's. Note that there is an offsetting savings here …. Why? (I'm suspicious).

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Appendix #7 — Example of a Full Cost Report—Page #2



Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCE1501 PRINCIPAL CAST 647,103 900,950 - 900,950 4,349,050 5,250,000 5,250,000 - 1502 SUPPORTING CAST 50,409 62,712 - 62,712 309,256 371,968 371,968 - 1503 DAY PLAYERS 12,001 18,394 - 18,394 110,406 128,800 128,800 - 1504 STUNT COORDINATOR 1,663 1,663 - 1,663 3,337 5,000 5,000 - 1505 STUNT EQUIPMENT - - - - 250 250 250 - 1506 LOOPING & EXPENSES - - - - 30,000 30,000 30,000 - 1507 CASTING DIRECTORS (1,232) 58,768 - 58,768 7,232 66,000 66,000 - 1508 CASTING ASST. & EXPEN - 27,450 3,781 31,231 1,793 33,024 34,524 1,500 1509 TRAVEL & LIVING EXPEN 3,907 32,794 21,864 54,658 2,367 57,025 53,625 (3,400) 1510 CONTRACTURAL EXPENS 35,803 205,715 88,939 294,654 411,203 705,857 705,857 - 1511 INSURANCE EXAMS - 1,990 150 2,140 360 2,500 2,000 (500) 1512 MISCELLANEOUS EXPEN - 3,196 - 3,196 1,304 4,500 5,000 500 1599 FRINGES 51,534 71,935 - 71,935 344,605 416,540 416,540 - 1500 TALENT 801,188 1,385,567 114,734 1,500,301 5,571,163 7,071,464 7,069,564 (1,900)

ABOVE THE LINE TOTAL 1,035,422 3,636,611 157,275 3,793,886 8,280,826 12,074,711 12,074,131 (581) BELOW THE LINE PRODUCTION

2101 PRODUCTION MANAGER 5,000 67,000 - 67,000 90,300 157,300 157,300 - 2102 1ST ASSISTANT DIRECTO 6,000 47,200 - 47,200 36,000 83,200 82,400 (800) 2103 2ND A.D.'S & TRAINEE 4,636 40,358 - 40,358 46,962 87,320 83,420 (3,900) 2104 SCRIPT SUPERVISOR 4,324 17,298 - 17,298 29,668 46,966 46,966 - 2105 LOCATION MANAGER 9,725 133,190 - 133,190 60,600 193,790 192,090 (1,700) 2106 TECH ADVISORS - - - - 5,000 5,000 5,000 - 2107 PROD. CO-ORDINATORS 3,300 38,895 - 38,895 40,240 79,135 80,435 1,300 2108 PROD. ACCTS. & ASSIST 6,825 79,523 - 79,523 106,082 185,605 187,805 2,200 2109 PRODUCTION ASSISTAN 9,890 54,680 - 54,680 84,150 138,830 136,230 (2,600) 2110 TEACHERS/WEL. WORKE - 200 - 200 4,800 5,000 5,000 - 2111 PURCHASES - 511 - 511 1,989 2,500 2,500 - 2112 CAR & BOX RENTAL 650 8,386 5,576 13,962 3,772 17,734 17,634 (100) 2199 FRINGES 13,309 129,639 - 129,639 131,919 261,558 259,836 (1,722) 2100 PRODUCTION STAFF 63,659 616,880 5,576 622,456 641,482 1,263,938 1,256,616 (7,322) 2201 DIRECTOR OF PHOTOGRA 30,000 100,000 - 100,000 80,000 180,000 180,000 - 2202 CAMERA OPERATOR 3,633 9,068 - 9,068 28,312 37,380 55,380 18,000

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Make a note to see if the AD's and PA's can rotate their times to reduce overtime cost.

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Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCE2203 FIRST ASSIST CAMERA 5,583 15,927 - 15,927 38,800 54,727 49,727 (5,000) 2204 SECOND ASSIST CAMER 4,641 12,823 - 12,823 31,910 44,733 37,733 (7,000) 2205 EXTRA CAMERA OPERAT 15,645 29,580 - 29,580 81,110 110,690 91,690 (19,000) 2206 EXTRA CAMERA ASSIST 4,316 7,872 - 7,872 24,047 31,919 28,919 (3,000) 2207 STILL PHOTOGRAPHER 3,700 14,060 - 14,060 27,350 41,410 45,410 4,000 2208 LOADER 3,374 9,450 - 9,450 23,573 33,023 32,023 (1,000) 2209 LOSS & DAMAGE - - - - 2,500 2,500 2,500 - 2210 PURCHASES 103 3,766 - 3,766 15,484 19,250 19,250 - 2211 RENTALS 7,601 11,351 290 11,641 209,859 221,500 234,500 13,000 2212 BOX RENTAL 2,400 7,240 - 7,240 15,740 22,980 22,680 (300) 2213 MISCELLANEOUS EXPEN - 245 - 245 1,255 1,500 1,500 - 2299 FRINGES 21,268 55,658 - 55,658 93,829 149,487 145,847 (3,640) 2200 CAMERA 102,264 277,040 290 277,330 673,769 951,099 947,159 (3,940) 2301 PRODUCTION DESIGNER 6,360 83,748 - 83,748 42,077 125,825 122,225 (3,600) 2302 ART DIRECTOR & ASSIST 5,261 62,840 - 62,840 35,916 98,756 98,456 (300) 2303 SET DESIGNERS - 14,884 - 14,884 1,416 16,300 12,900 (3,400) 2304 ILLUSTRATORS - 2,133 - 2,133 2,667 4,800 4,800 - 2305 PRODUCTION ASSISTAN 2,500 25,400 - 25,400 17,740 43,140 42,740 (400) 2306 BLUE PRINTING 92 1,084 - 1,084 116 1,200 1,200 - 2307 PURCHASES/RESEARCH (173) 12,548 - 12,548 702 13,250 12,250 (1,000) 2308 RENTALS - 293 87 380 620 1,000 2,000 1,000 2309 CAR & BOX RENTALS 150 1,800 - 1,800 1,110 2,910 2,910 - 2310 MISCELLANEOUS EXPEN - 18 - 18 1,482 1,500 1,500 - 2399 FRINGES 3,290 44,116 - 44,116 23,428 67,544 65,758 (1,786) 2300 ART DEPARTMENT 17,480 248,864 87 248,951 127,274 376,225 366,739 (9,486) 2401 COORDINATOR 2,000 19,600 - 19,600 19,400 39,000 38,800 (200) 2402 CONSTRUCTION FOREME 9,631 80,972 - 80,972 87,680 168,652 170,452 1,800 2403 CONST LABOR - LOCAL 31,466 194,594 - 194,594 19,178 213,772 213,772 -

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Why isn't there a Purchase Order here to commit the rental of the Camera

There's only 9% of the budget left! What is the % complete ?

The Prod'n Designer and Set Designers must be working week-ends. Do they have prior approval?

This CAN'T be a real savings!

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Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCE2404 LOSS & DAMAGE - 3,874 - 3,874 8,126 12,000 12,000 - 2405 STRIKING - LOCAL - - - - 56,000 56,000 56,000 - 2406 PURCHASES 16,166 92,898 2,732 95,630 28,480 124,110 124,110 - 2407 TRASH REMOVAL - 3,236 2,334 5,570 1,430 7,000 7,000 - 2408 RENTALS - - - - 12,000 12,000 12,000 - 2409 PLATFORMS - 2,719 - 2,719 5,281 8,000 8,000 - 2410 CAR & BOX RENTALS 2,840 31,045 - 31,045 23,145 54,190 54,190 - 2411 MISCELLANEOUS EXPEN - - - - 1,000 1,000 1,000 - 2499 FRINGES 12,067 82,646 - 82,646 44,760 127,407 127,855 448 2400 SET CONSTRUCTION 74,170 511,584 5,066 516,650 306,480 823,131 825,179 2,048 2501 Special Effects Coord 2,405 2,405 - 2,405 19,575 21,980 24,480 2,500 2502 SPFX LABOR - - - - 80,520 80,520 81,220 700 2503 LOSS & DAMAGE - - - - 500 500 500 - 2504 MANUFACTURING L & M - - - - 40,000 40,000 40,000 - 2505 SPFX PURCHASES 18 1,188 - 1,188 33,812 35,000 35,000 - 2506 SPFX RENTALS 325 325 282 607 14,393 15,000 15,000 - 2507 BOX RENTAL - - - - 20,000 20,000 20,000 - 2599 FRINGES 673 673 - 673 28,027 28,700 29,596 896 2500 SPECIAL EFFECTS (SPFX 3,421 4,591 282 4,873 236,827 241,700 245,796 4,096 2601 FIRST COMPANY GRIP 3,228 14,240 - 14,240 23,089 37,329 35,929 (1,400) 2602 SECOND COMPANY GRIP 3,128 12,055 - 12,055 21,955 34,010 34,110 100 2603 CRANE/DOLLY GRIP 3,128 8,654 - 8,654 21,966 30,620 27,120 (3,500) 2604 COMPANY GRIP 13,297 32,701 - 32,701 73,853 106,554 101,954 (4,600) 2605 RIGGING/STRIKING LABO 2,235 9,362 - 9,362 54,178 63,540 61,540 (2,000) 2606 CRAFT SERVICE LABOR 4,355 4,355 - 4,355 15,315 19,670 19,570 (100) 2607 STANDBY PAINTERS 5,380 13,170 - 13,170 31,261 44,431 40,031 (4,400) 2608 LOSS & DAMAGE - - - - 2,500 2,500 2,500 - 2609 FIRST AID & EXPENSES 3,126 7,309 - 7,309 21,012 28,321 27,221 (1,100) 2610 HEATING & VENTILATION - - 5,208 5,208 292 5,500 5,000 (500) 2611 PURCHASES 1,647 23,622 - 23,622 14,878 38,500 40,000 1,500 2612 CRAFT SERVICE PURCHA 4,582 9,897 - 9,897 50,153 60,050 59,250 (800) 2613 GRIP RENTAL 1,269 6,348 76,991 83,339 34,861 118,200 115,500 (2,700) 2614 BOX RENTAL 125 4,960 - 4,960 20,055 25,015 24,615 (400)

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Why aren't there more costs show ing here? Are they not submitting their invoices? Better f ind out soon - SPFX is notorious for going over budget.

The Grips are running Over Budget in labor, but the Electric's are Under Budget in labor. Better investigate!

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NOTE: SPFX = Special Effects

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Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCE2615 MISCELLANEOUS EXPEN - 2,149 - 2,149 351 2,500 1,500 (1,000) 2699 FRINGES 9,730 26,470 - 26,470 67,653 94,123 89,671 (4,452) 2600 SET OPERATIONS 55,230 175,292 82,199 257,491 453,372 710,863 685,511 (25,352) 2701 CHIEF LIGHTING TECHNIC 3,158 13,088 - 13,088 23,041 36,129 35,929 (200) 2702 ASST CHIEF LIGHTING TE 3,060 12,780 - 12,780 21,930 34,710 34,110 (600) 2703 LIGHT TECHNICIANS 15,940 36,301 - 36,301 94,908 131,209 134,809 3,600 2704 RIGGING & STRIKING LAB 3,608 10,673 - 10,673 74,127 84,800 84,700 (100) 2705 GEN. OPERATOR/POWER 3,060 9,643 - 9,643 31,267 40,910 41,010 100 2706 LOSS & DAMAGE - - - - 2,500 2,500 2,500 - 2707 PURCHASES 1,616 13,849 123 13,972 6,028 20,000 20,000 - 2708 GLOBES & CARBONS - - - - 20,000 20,000 20,000 - 2709 RENTALS 750 4,060 205,356 209,416 84 209,500 191,500 (18,000) 2710 GENERATOR RENTALS - - 18,600 18,600 100 18,700 29,600 10,900 2711 BOX RENTAL 1,100 3,740 - 3,740 13,810 17,550 19,350 1,800 2712 MISCELLANEOUS EXPEN - - - - 1,500 1,500 1,500 - 2799 FRINGES 8,071 23,096 - 23,096 68,676 91,772 92,556 784 2700 ELECTRICAL 40,363 127,230 224,079 351,309 357,971 709,280 707,564 (1,716) 2801 SET DECORATOR 3,000 36,300 - 36,300 23,300 59,600 60,000 400 2802 LEADMAN/BUYER 4,504 44,165 - 44,165 40,763 84,928 81,828 (3,100) 2803 SWING GANG 25,451 181,820 - 181,820 196,025 377,845 374,345 (3,500) 2804 LOSS, DAMAGE & CLEAN - - - - 2,500 2,500 2,500 - 2805 MANUFACTURING L & M - - - - 7,500 7,500 7,500 - 2806 SET DRESSING PURCHAS 52,524 265,916 226 266,142 281,258 547,400 547,400 - 2807 RENTALS 9,811 38,354 1,430 39,784 87,716 127,500 127,100 (400) 2808 CAR & BOX RENTALS 2,210 16,625 - 16,625 12,605 29,230 29,030 (200) 2809 MISCELLANEOUS EXPEN - 582 - 582 418 1,000 1,000 - 2899 FRINGES 9,227 73,440 - 73,440 72,825 146,264 144,528 (1,736) 2899 SET DRESSING 106,727 657,202 1,656 658,858 724,910 1,383,767 1,375,231 (8,536) 2901 PROPMASTER 3,150 24,519 - 24,519 23,036 47,555 40,455 (7,100) 2902 ASSISTANT PROPMASTE 3,053 19,940 - 19,940 22,590 42,530 37,830 (4,700) 2903 ADDITONAL LABOR 4,445 16,534 - 16,534 14,733 31,267 31,367 100 2904 LOSS & DAMAGE - - - - 2,500 2,500 2,500 - 2905 MANUFACTURING L & M 7,350 7,350 - 7,350 25,650 33,000 33,000 -

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Note that any further Electric Rentals will be Over Budget!

The Set Dressing Labor ETC's matches the Set Dressing Purchases in terms of % completion - this is f ine.

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Account ACCOUNT ACTUAL ACTUAL COMMITS TOTAL ESTIMATE ESTIMATED BUDGET (OVER)/Unde r

Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCE2906 PURCHASES 1,824 30,437 872 31,309 35,191 66,500 66,500 - 2907 RENTALS - 3,065 150 3,215 10,935 14,150 13,750 (400) 2908 CAR & BOX RENTALS 1,615 9,645 - 9,645 9,450 19,095 18,995 (100) 2909 MISCELLANEOUS EXPENS - 962 - 962 538 1,500 1,500 - 2999 FRINGES 2,981 17,078 - 17,078 16,901 33,979 30,703 (3,276) 2900 ACTION PROPS 24,418 129,530 1,022 130,552 161,524 292,076 276,600 (15,476) 3001 PICTURE VEHICLES 8,905 26,304 - 26,304 55,046 81,350 81,350 - 3002 PIC VEH MODIFY/RESTOR - 243 - 243 7,257 7,500 7,500 - 3003 ANIMALS - - - - 200 200 200 - 3004 WRANGLERS & HANDLERS - - - - 200 200 200 - 3099 FRINGES - - - - 56 56 56 - 3000 PICT. VEH. & ANIMALS 8,905 26,547 - 26,547 62,759 89,306 89,306 - 3101 STANDINS 10,754 38,554 - 38,554 12,679 51,233 51,233 - 3102 EXTRAS - STUDIO 17,326 279,642 - 279,642 24,233 303,875 303,875 - 3103 FITTINGS & INTERVIEWS 569 7,749 - 7,749 2,251 10,000 10,000 - 3104 ATMOSPHERE CARS 35 6,439 - 6,439 561 7,000 7,000 - 3105 EXTRAS CASTING SER. FE 10,037 37,667 - 37,667 4,571 42,238 42,238 - 3199 FRINGES 8,373 98,641 - 98,641 14,993 113,634 113,634 - 3100 EXTRA TALENT 47,094 468,692 - 468,692 59,288 527,980 527,980 - 3201 DESIGNER 4,000 40,133 - 40,133 32,667 72,800 67,500 (5,300) 3202 DESIGNER STAFF 3,278 26,450 - 26,450 7,198 33,648 33,548 (100) 3203 WOMEN'S WARDROBE LA 9,885 27,224 - 27,224 55,456 82,680 81,980 (700) 3204 MEN'S WARDROBE LABOR 6,655 43,633 - 43,633 74,239 117,872 106,072 (11,800) 3205 CLEANING & DYEING 401 2,021 - 2,021 17,379 19,400 19,400 - 3206 LOSS & DAMAGE - - - - 2,500 2,500 2,500 - 3207 PURCHASES 19,572 81,964 2,335 84,299 98,901 183,200 183,200 - 3208 RENTALS 1,505 34,828 - 34,828 12,372 47,200 45,800 (1,400) 3209 CAR & BOX RENTALS 525 2,975 - 2,975 9,055 12,030 11,830 (200) 3210 MISCELLANEOUS EXPENS - 2,138 - 2,138 362 2,500 2,500 - 3299 FRINGES 6,669 38,483 - 38,483 47,477 85,960 80,948 (5,012) 3299 WARDROBE 52,490 299,849 2,335 302,184 357,606 659,790 635,278 (24,512)

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Count the number of Extras Mandays Planned. Multiply by $200/Day. Are you Over Budget?

Review with the Costume Designer.

Review with the Prop Master.

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Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCE3301 MAKEUP ARTISTS 6,560 14,881 - 14,881 36,554 51,435 51,435 - 3302 ADDITIONAL MAKEUP 10,703 18,699 - 18,699 43,797 62,496 62,496 - 3303 BODY MAKEUP - - - - 7,500 7,500 7,500 - 3304 HAIRSTYLISTS 6,920 15,241 - 15,241 36,194 51,435 51,435 - 3305 ADDITIONAL HAIRSTYLIST 8,165 15,381 - 15,381 47,115 62,496 62,496 - 3306 MAKEUP SUPPLIES 506 2,340 - 2,340 4,160 6,500 6,500 - 3307 HAIRDRESSING-SUPPLIES 1,045 1,787 - 1,787 1,713 3,500 3,500 - 3308 Prosthetic MU/SPFX/Blood - - - - 4,500 4,500 4,500 - 3309 WIG PURCHASE/RENTALS 508 3,384 9,000 12,384 616 13,000 13,000 - 3310 BOX RENTAL 2,085 4,725 - 4,725 14,775 19,500 19,500 - 3311 MISCELLANEOUS EXPENS 8,227 13,065 7,200 20,265 2,551 22,816 30,200 7,384 3399 FRINGES 9,057 15,379 - 15,379 58,054 73,433 73,433 - 3300 MAKEUP & HAIR 53,776 104,882 16,200 121,082 257,529 378,611 385,995 7,384 3401 MIXER 4,143 11,388 - 11,388 30,110 41,498 41,098 (400) 3402 BOOM OPERATOR 3,430 8,950 - 8,950 24,660 33,610 32,410 (1,200) 3403 RECORDER/CABLE PERSO 3,050 7,950 - 7,950 20,670 28,620 27,120 (1,500) 3404 LOSS & DAMAGE - - - - 3,500 3,500 3,500 - 3405 PURCHASES - 323 - 323 2,427 2,750 2,750 - 3406 RENTALS 2,100 8,895 13,056 21,951 21,949 43,900 43,500 (400) 3499 FRINGES 2,974 7,921 - 7,921 21,123 29,044 28,176 (868) 3400 SOUND 15,697 45,427 13,056 58,483 124,439 182,922 178,554 (4,368) 3501 SITE FEES & RENTALS 42,333 220,794 295 221,089 349,261 570,350 569,350 (1,000) 3502 POLICE/FIRE/WATCHMEN 1,103 10,119 - 10,119 50,181 60,300 60,300 - 3503 SCOUTING 198 39,661 - 39,661 339 40,000 40,000 - 3504 TRAVEL FARES 394 8,066 1,985 10,051 17,009 27,060 27,060 - 3505 HOTELS 3,002 86,278 21,057 107,335 47,205 154,540 151,840 (2,700) 3506 LIVING EXPNSES/PER DIE 4,550 39,850 - 39,850 56,450 96,300 94,900 (1,400) 3507 MEALS/CATERING 29,837 111,991 78 112,069 150,671 262,740 259,740 (3,000) 3508 ENTERTAINMENT/GRATUIT - 100 - 100 1,900 2,000 2,000 - 3509 FILM SHIPPING - - - - 24,500 24,500 24,500 - 3510 BAGGAGE & EQUIPMENT S 755 6,388 254 6,642 28,858 35,500 35,500 - 3511 MILEAGE & PARKING 861 6,430 - 6,430 3,570 10,000 10,000 - 3512 LOCATION RESTORATION - - - - 30,000 30,000 30,000 -

1 2 3 4 5 5

6 7 8 9 10

The % of Fringes Paid to Labor Paid = 24.0%

The % of Fringes To Be Paid to Labor To Be Paid =33.9%. SAVE on Fringes!

Review with Loc'n Mgr.

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Walk The Talk

PRODUCTION COST REPORTPeriod Ending Nov. 15, 2007 Page 8


Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCE3513 PURCHASES 699 23,130 2,288 25,418 3,182 28,600 28,600 - 3514 OFFICE RENTALS - 54,614 2,932 57,546 37,020 94,566 94,566 - 3515 PHONE & POSTAGE 1,624 41,112 15,823 56,935 45,355 102,290 102,290 - 3516 OFFICE EQUIPMENT RE 57 24,703 10,745 35,448 1,952 37,400 37,000 (400) 3517 MISCELLANEOUS EXP - 3,266 - 3,266 734 4,000 4,000 - 3599 FRINGES 188 1,720 - 1,720 8,531 10,251 10,251 - 3500 LOCATION 85,601 678,222 55,457 733,679 856,718 1,590,397 1,581,897 (8,500) 3601 VIDEO OPERATOR - - - - 2,600 2,600 2,600 - 3602 PURCHASES - - - - 3,500 3,500 3,500 - 3603 RENTALS - - - - 15,500 15,500 15,300 (200) 3604 VIDEO TRANSFERS - - - - 15,000 15,000 15,000 - 3699 FRINGES - - - - 728 728 728 - 3600 VIDEO TAPE - - - - 37,328 37,328 37,128 (200) 3701 TRANSPORTATION CO 6,335 39,258 - 39,258 31,428 70,686 60,386 (10,300) 3702 TRANSPORTATION CA 4,259 26,871 - 26,871 31,542 58,413 50,813 (7,600) 3703 STUDIO DRIVERS 105,990 434,400 - 434,400 660,022 1,094,422 1,041,422 (53,000) 3704 LOSS & DAMAGE 65 482 - 482 7,018 7,500 7,500 - 3705 REPAIRS/MAINTENANC 375 2,274 - 2,274 8,176 10,450 10,450 - 3706 PICKUP/TAXIS/ETC. 1,452 10,769 50 10,819 4,181 15,000 15,000 - 3707 GAS & OIL 6,968 23,558 - 23,558 51,442 75,000 75,000 - 3708 TOLLS & PERMIT 2,771 8,754 - 8,754 1,246 10,000 10,000 - 3709 PURCHASES 1,054 2,725 812 3,537 2,663 6,200 6,200 - 3710 LOCATION SELF DRIV 1,101 15,554 43,572 59,126 12,938 72,064 71,264 (800) 3711 STUDIO VEHICLES 2,880 41,085 220,340 261,425 94,032 355,457 349,057 (6,400) 3712 CRANES & INSERT CA - - 812 812 17,938 18,750 18,750 - 3713 MISCELLANEOUS EXP - 3,712 - 3,712 12,288 16,000 16,000 - 3799 FRINGES 32,644 140,148 - 140,148 202,438 342,586 322,734 (19,852) 3700 TRANSPORTATION 165,894 749,590 265,586 1,015,176 1,137,352 2,152,528 2,054,576 (97,952) 3801 RAW STOCK 111,519 171,317 3,180 174,497 68,603 243,100 243,100 - 3802 NEGATIVE DEVELOP - 2,081 - 2,081 52,617 54,698 54,698 - 3803 POSITIVE PRINTS - 4,693 - 4,693 83,337 88,030 88,030 - 3804 1/4" SOUND STOCK - - - - 5,000 5,000 5,000 - 3805 SOUND TRANSFER - - - - 24,544 24,544 24,544 -

1 2 3 4 5 5

6 7 8 9 10

The Driver Overtime is killing us! What, exactly, is the problem?

What is the average daily footage used by the Director? Is it close to the budgeted daily footage?

Make a P.O. for the off ice rent!

Is the Video Operator still planned for? When?

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Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCE3806 VIDEO CASSETTES - - - - 13,950 13,950 13,750 (200) 3807 TELECINE TRANSFER - - - - 56,000 56,000 55,000 (1,000) 3808 POLAROID FILM 293 3,030 - 3,030 6,970 10,000 10,000 - 3800 FILM & LAB 111,812 181,121 3,180 184,301 311,021 495,322 494,122 (1,200) 3901 LABOR - 16,469 - 16,469 696 17,165 27,165 10,000 3902 PURCHASES 8,262 10,882 - 10,882 1,163 12,045 16,045 4,000 3903 RENTALS - 1,442 2,040 3,482 258 3,740 7,740 4,000 3904 FILM - 2,575 485 3,060 2,340 5,400 5,400 - 3905 MISCELLANEOUS EXPENS - 18,560 376 18,936 1,314 20,250 2,250 (18,000) 3900 TESTS 8,262 49,928 2,901 52,829 5,771 58,600 58,600 - 4001 LOS ANGELES PHONE & T - 178 - 178 19,912 20,090 20,090 - 4002 POSTAGE & MESSENGER 279 3,278 - 3,278 17,009 20,287 20,287 - 4003 STAGE 3,612 66,355 12,228 78,583 19,727 98,310 98,310 - 4004 PARKING RENTALS - 5,810 8,896 14,706 294 15,000 15,000 - 4000 FACILITY EXPENSES 3,891 75,621 21,124 96,745 56,942 153,687 153,687 - 4101 PRODUCTION STAFF - 2,407 - 2,407 5,750 8,157 8,157 - 4102 CAMERA 1,234 28,189 1,308 29,497 1,511 31,008 34,008 3,000 4103 SET OPERATIONS - 20,724 760 21,484 9,491 30,975 27,975 (3,000) 4104 ELECTRICAL - 9,887 1,460 11,347 18,903 30,250 30,250 - 4105 SET DRESSING - - - - 3,000 3,000 3,000 - 4106 ACTION PROPS - - - - 2,825 2,825 2,825 - 4107 PICTURE VEHICLES & ANI - 2,100 - 2,100 4,284 6,384 6,384 - 4108 EXTRAS - 35,727 - 35,727 1,766 37,493 37,493 - 4109 WARDROBE - 4,559 - 4,559 1,941 6,500 6,500 - 4110 MAKEUP & HAIR - 17,897 - 17,897 1,353 19,250 10,250 (9,000) 4111 SOUND - 9,369 - 9,369 2,881 12,250 7,250 (5,000) 4112 LOCATIONS 750 15,258 - 15,258 801 16,059 30,059 14,000 4113 TRANSPORTATION - 29,761 7,678 37,439 3,051 40,490 40,490 - 4114 RAWSTOCK/DEV/PRINT - 12,370 - 12,370 12,618 24,988 24,988 - 4115 POST PROD LABOR - 429 - 429 2,271 2,700 2,700 - 4199 FRINGES 278 24,743 1,569 26,312 8,694 35,006 35,006 - 4100 SECOND UNIT 2,262 213,420 12,775 226,195 81,140 307,335 307,335 -

BELOW THE LINE PROD'N TOTAL 1,043,417 5,641,514 712,871 6,354,385 7,031,500 13,385,885 13,190,853 (195,032)

1 2 3 4 5 5

6 7 8 9 10

If all tests complete, you have a savings

Why did it cost more for the Grips than Electrics?

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Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCEBELOW THE LINE POST PRODUCTION

5001 FILM EDITORS 4,165 16,496 - 16,496 127,500 143,996 143,996 - 5002 ASST. FILM EDITORS 6,194 28,819 - 28,819 193,467 222,286 221,286 (1,000) 5003 APPRENTICE EDITORS - - - - 54,876 54,876 58,976 4,100 5004 POST PRODUCTION SUPE - - - - 61,000 61,000 61,000 - 5005 PROJECTIONISTS 1,696 4,879 13,792 18,671 7,829 26,500 26,500 - 5006 CODING & MISC EDITING - - - - 4,770 4,770 4,770 - 5007 SOUND EFFECTS EDITING - - - - 350,000 350,000 350,000 - 5008 ADR EDITING - - - - 35,000 35,000 35,000 - 5009 NEGATIVE CUTTING - - - - 13,200 13,200 13,200 - 5010 MUSIC EDITORS - - - - 60,000 60,000 60,000 - 5011 POST SHIP/MESSENGER - - - - 10,000 10,000 10,000 - 5012 CONTINUITY EXPENSES - - - - 3,500 3,500 3,500 - 5013 PURCHASES 107 2,138 - 2,138 12,862 15,000 15,000 - 5014 RENTALS - 800 93,150 93,950 214,795 308,745 308,745 - 5015 MISCELLANEOUS EXPENS - - - - 3,500 3,500 3,500 - 5099 FRINGES 3,375 14,054 3,862 17,916 141,308 159,224 160,092 868 5000 EDITING & PROJECTION 15,537 67,186 110,804 177,990 1,293,607 1,471,597 1,475,565 3,968 5101 CLEARANCES - - - - 1,000,000 1,000,000 1,000,000 - 5100 MUSIC - - - - 1,000,000 1,000,000 1,000,000 - 5201 DUBBING STAGE - - - - 359,050 359,050 359,050 - 5202 ADR STAGE - - - - 24,000 24,000 24,000 - 5203 FOLEY EFX RECORDING - - - - 44,000 44,000 44,000 - 5204 TAPE TRANSFERS - - - - 40,000 40,000 40,000 - 5205 PURCHASE - - - - 5,000 5,000 5,000 - 5206 EQUIP. RENTAL & CARTAG - - - - 8,000 8,000 8,000 - 5207 MISCELLANEOUS EXPENS - - - - 7,500 7,500 7,500 - 5299 FRINGES - - - - 39,232 39,232 39,232 - 5200 SOUND (POST-PRODUCTIO - - - - 526,782 526,782 526,782 - 5301 FILM LEADER - - - - 4,000 4,000 4,000 - 5302 STOCK SHOTS - PURCHAS - - - - 29,000 29,000 30,000 1,000 5303 STOCK SHOTS - LABOR 134 134 - 134 366 500 - (500) 5304 STOCK SHOTS - FILM & P - 115 - 115 385 500 - (500) 5305 REPRINTS - - - - 10,000 10,000 10,000 - 5306 VIDEO CASSETTES/TAPE - - - - 10,000 10,000 10,000 - 5307 REVERSAL DUPES - - - - 19,000 19,000 19,000 -

1 2 3 4 5 5

6 7 8 9 10

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Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCE5308 TAPE PURCHASE - - - - 40,000 40,000 40,000 - 5309 OPTICAL SOUND TRACKS - - - - 4,200 4,200 4,200 - 5310 PROTECTION DUPES - - - - 21,000 21,000 21,000 - 5311 COMPOSITE PRINT - - - - 4,500 4,500 4,500 - 5312 NEGATIVE SPLICING - - - - 2,000 2,000 2,000 - 5313 ANSWER PRINT - - - - 14,520 14,520 14,520 - 5314 INTER-POSITIVES - - - - 11,400 11,400 11,400 - 5315 PROTECTION-YCM - - - - 30,000 30,000 30,000 - 5300 FILM, TAPE, & LIBRARY 134 249 - 249 200,371 200,620 200,620 - 5401 OPTICAL EFX CONTRACT - - - - 50,000 50,000 50,000 - 5400 VISUAL EFFECTS - - - - 50,000 50,000 50,000 - 5501 MAIN & END TITLES - - - - 45,000 45,000 45,000 - 5502 TITLE DESIGNER - - - - 10,000 10,000 10,000 - 5503 OPTICAL EFFECTS - - - - 45,000 45,000 45,000 - 5504 INSERTS - - - - 5,000 5,000 5,000 - 5505 TRADEMARK, LOGOS, & R - 72 - 72 528 600 600 - 5500 TITLES & OPTICALS - 72 - 72 105,528 105,600 105,600 -

BTL POST PROD'N TOTAL 15,671 67,507 110,804 178,311 3,176,288 3,354,599 3,358,567 3,968 BELOW THE LINE OTHER CHARGES

6001 MISCELLANEOUS EXPENS - - - - 220,000 220,000 220,000 - 6000 INSURANCE - - - - 220,000 220,000 220,000 - 6101 UNIT PUBLICIST - - - - 29,820 29,820 29,820 - 6102 FILM & PROCESSING - - - - 7,500 7,500 7,500 - 6103 MISCELLANEOUS EXPENS - 161 - 161 4,839 5,000 5,000 - 6199 FRINGES - - - - 8,350 8,350 8,350 - 6100 PUBLICITY - 161 - 161 50,509 50,670 50,670 - 6201 MPAA SEAL - - - - 9,000 9,000 9,000 - 6202 LEGAL FESS - 873 - 873 19,327 20,200 20,200 - 6203 PREVIEW EXPENSE - 900 - 900 59,100 60,000 60,000 - 6204 OFFICE PURCHASES 28 28 - 28 9,472 9,500 10,000 500 6205 COMPUTERS & SOFTWAR - 2,437 - 2,437 21,021 23,458 23,358 (100) 6206 OFFICE SPACE RENTAL - 726 - 726 30,274 31,000 31,000 - 6207 OFFICE EQUIP. RENTAL - - - - 7,500 7,500 7,500 - 6208 OSHA SAFETY - - - - 5,000 5,000 5,000 - 6209 MISCELLANEOUS EXPENS - 76 - 76 470 546 46 (500) 6200 GENERAL EXPENSES 28 5,040 - 5,040 161,164 166,204 166,104 (100)

BELOW THE LINE OTHER CHARGES 28 5,201 - 5,201 431,673 436,874 436,774 (100)

1 2 3 4 5 5

6 7 8 9 10

Why haven't we paid the Publicist yet? Is there a problem?

Insurance should be paid before we start shooting? Are we still covered?

This is budgeted for the office during post-production.

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Number DESCRIPTION THIS PERIOD TO DATE TO DATE COSTS ToComplete FINAL COST VARIANCE

TOTAL DIRECT COSTS 2,094,538 9,350,833 980,950 10,331,783 18,920,286 29,252,069 29,060,325 (191,745)

BELOW THE LINE CONTINGENCIES - - - - - - - -

COMPLETION COSTS - - - - - - - -

COST RECOVERY / TRANSFER - - - - - - - -

PRODUCTION TOTAL 2,094,538 9,350,833 980,950 10,331,783 18,920,286 29,252,069 29,060,325 (191,745)

1 2 3 4 5 5

6 7 8 9 10

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Notes

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The Call Sheet is usually on a single sheet of legal sized paper. In order to show the Call Sheet I’ve broken each page into 2 parts. This is the Front Page of the Call Sheet—see the next page for a continuation of the Front

Appendix #8 — Example of the Front Page of the Call Sheet

"Walk The Talk " DAY 34Film Accounting Productions Sat. February 23, 2007

PRODUCTION OFFICE:John's Cinema Director: A2100 L.A. Street Producers: BLos Angeles, CA 90210 Line Producer: CTel: (310) 871-2489 Fax: (310) 871-0 SET FAX: 310.898.3933 UPM: DDAILIES: Editing Room @ 30 min after wrap CREW CALL 7h00 SHOOT CALL: 7h30

2010 St.John Street Lunch13h00-14h00 Schedule: 6/6Contact: John Luke: 310.284.4449 Blocking: -

Weather: Sunny Max 0C M in-7C Wind: light Sunrise: 6:43 unset: 18:03

LOCATIONS: 1. Place d'Youville 2. Capital Street 3. 151 St-Paul West (SEE MAP)4. NFL Bldg, downtown (SEE MAP)

SC. # I/E D/N DESCRIPTION CHARACTER CHRONO PGS LOC141 E D APT BLDG/E. London 1,5 1971 1/8 1

Mark X: 15 84147 E D APT BLDG/E. London 1,5,51 1971 2/8 1

Mark X: 24 86147B E D London Pub 1 1971 1/8 1

Mark runs. X: 2 86147A E D London ALLEY 1 1971 1/8 2

Mark runs. X: 1 86147C E D DEAD END Street 1 1971 1/8 3

Nowhere to run. X: 14 86COMPANY MOVE

93 I D PHONE BOOTH 6,21 1967 1 2/8 4cont'd Talk 'The Talk' X: 11 50

Total Pages: 2# CHARACTER CAST STATUS P.U. MU/H/W BLK SET LOC.1 Big Dog John Gaskin W 6h00 6h15 - 7h30 1,2,35 Little Dog LG W 6h30 6h45 - 7h30 16 The Big Word HG W - will notify @ 12h00 1,421 The Little Word KG WF - 12h00 - - 1,451 The Bottle LG SWD - 6h45 - - 1

This is the general crew call tme - see pg 2 for your call time.

This is the shooting location. A map is usally attached to the Call Sheet.

In this area is the specif ic call times for Cast and Extras. Familiarizeyourself w ith their call times - that's w hen it's very busy.

Call Sheet Sample

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This is a continuation of the Front Page (page 1) of the Call Sheet.

Appendix #8 – Example of the Front Page of the Call Sheet

# STAND-INS CAST P.U. MU/H/W BLK SET LOC.Stand-In #1 EF - 6h45 - 7h00 1Stand-In #2 PJ - 6h45 - 7h00 1Stand-In #3 NS - - - 15h00 4

- - - 15h00 4- - - 15h00 4

# EXTRAS SCENES NOTES MU/H/W Travel to set SET LOC.

10 London 141,147 5h30 7h00 7h15 15 ND Drivers 141,147,147C 6h00 7h00 7h15 19 Cops 147,147C 6h00 7h15 7h30 11 Soldier 147A 6h45 7h00 7h15 12 Prostitutes 147B 6h00 7h00 7h15 1

Total Extras: 27REQUIREMENTS VEHICLESART DEPT Sc 141,147 Keeler's 4 door ('7on set @ 6h45 Loc #1Sc 147A Window cover Sc 141,147,147ND E Eur x 7 ('71 on set @ 6h45 Loc #1Sc 147C Door plugs, Ground snow Sc 147,147C KGB Car x 3 ('71) on set @ 6h45 Loc #1Sc 93 Booth Monitors Sc 147C ND E Eur x 5 (moving) ('7on set @ 6h45 Loc #1

TV Cameras X 3 WEAPONSPROPS Sc 147C AK's x 3Sc 141 Cigarettes Folding AK47Sc 147 Handcuffs Makrovas x 2

Rubber AK47SPECIAL EQUIPMENT Sc 147B AK's x 2Sc 141,147B,14Hand heldSc 147B,147A ATV w Cam Mount on set @ 7h00 ADDITIONAL LABOR

Steadicam Sc 147C Armourer on set @ 7h00Sc 147C Lexan Sc 93 24 fps tec on set @ 14h00 Loc #4Sc 93 24 fps videoSTUNTS VIDEO PLAYBACKSc 147C Barris hit w AK Sc 93 Dating Game LogoNOTES Live Feed x 3All scenes ITS Stock - Bars

Stock - FrozenStock - Jim LangeStock - Test Pattern

John Chien Anne Pomme Agnes Arbe Gill Gateau T ino Vio Celine Boutilier 1st A.D. 2nd A.D. 2nd 2nd A.D. Unit Manager Transport Capt Locations Manager310.838.1823 (C) 310.838.4876 (C) 310.863.4760 (C) 310.838.1852 310.863.7675 (C) 310.249.2041 (C)

Familiarize yourself with the various items called - spot the items on set and match them to the call sheet for experience.

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Appendix #8 — Example of the Back Page of the Call Sheet

The Call Sheet is usually on a single sheet of legal sized paper. In order to show the Call Sheet I’ve broken each page into 2 parts. This is the Back Page (page 2) of the Call Sheet—see the next page for a continuation of the Front Page of the Call Sheet.

"Walk TheTalk " DAY 34Sat. February 17, 2006

WARDROBE UNIT7h00 (Name) o/c Unit Manager (Name) 4h30

1st A.D. 7h00 (Name) o/c Asst Unit Manag(Name) 4h302nd A.D. 6h00 (Name) o/c Set P.A. (Name) 6h30

5h45 (Name) o/c Unit P.A. (Name) 4h303rd A.D. 5h00 (Name) o/c Unit P.A. (Name) 4h30

(Name) 5h00 (Name) o/c Unit P.A. (Name) 5h156h00 (Name) 6h15 Unit P.A. (Name) 6h00

Add 3rd AD (Name) 13h45 Dresser S.Rock (Name) 5h45 Unit P.A. (Name) 5h457h00 Dresser (Name) 6h15 Unit P.A. (Name) 6h00

Dresser (Name) 5h15 Swing P.A. (Name) o/cAddtl Dressers (Name) 5h15 Swing P.A. (Name) o/cAddtl Dressers (Name) 5h15 Swing P.A. (Name) o/c

DOP (Name) 7h00 Swing P.A. (Name) o/c(Name) 6h00 HAIR/MAKE-UP(Name) 6h00 Hair Stylist Lea(Name) 6h15(Name) 7h00 Key Hairdresse (Name) 5h15(Name) 7h00 Addt'l Hairdress(Name) 5h00 Craft (Name) 4h30(Name) 6h00 Addt'l Hairdress(Name) 5h00 Asst Craft (Name) 4h30(Name) 7h00 Asst Craft (Name) 4h30(Name) 7h00 Asst Craft (Name)(Name) 6h00 Head Make-Up Ar(Name) 5h00(Name) 14h00 Key Make-Up A(Name) 5h00 TRANSPORT: SEE MOVEMENT ORDER

7h00 Make Up A."Ex (Name) 5h00 Transport Coord(Name) o/cGRIP Transport Capta(Name)

(Name) 6h15 Driver (Name) see(Name) 6h15 Driver (Name)(Name) 6h15 Driver (Name) move-

Dolly Grip Cam (Name) 6h15 ART DEPARTMENT Driver (Name) mentGrip (Name) 6h15 Production Des (Name) o/c Driver (Name)Grip (Name) 6h15 Supervising Art (Name) o/c Driver (Name) orderGrip (Name) 6h15 Art Director (Name) o/c Driver (Name)

(Name) 6h15 Art Director (Name) o/c Driver (Name)o/c Art Dept Coord(Name) o/c Driver (Name)o/c Art Dept Coord(Name) o/c Driver (Name)

Driver (Name) o/c DriverGaffer - US (Name) 6h30 Head Scenic Pain (Name) o/cGaffer - Cdn (Name) 6h30 Asst Scenic Pain(Name) o/cBest Boy Light.(Name) 6h30 Head Carpente(Name) o/cLighting Tech. (Name) 6h30 Swing Gang #1 (Name) o/c (Name) 6h30Lighting Tech. (Name) 6h30 Swing Gang #2 (Name) o/c (Name) -Lighting Tech. (Name) 6h30 Swing Gang #3 (Name) o/c (Name) o/cLighting Tech. (Name) 6h30 Swing Gang #4 (Name) o/c (Name) o/cAddt'l lighting T(Name) 6h30 Swing Gang #5 (Name) o/c (Name) o/cConsole Operat(Name) 6h30 Swing Gang Art(Name) o/c o/cGenny Operato (Name) 6h30 On set Painter (Name) 6h30

On set Carpent(Name) 6h30 o/cRigging Gaffer (Name) o/c SET DRESSING o/cBest boy Rig. L(Name) o/c Key Set Decora(Name) o/c o/c

Canadian Accounta(Name)Asst Prod. Accoun (Name)

Office DriverACCOUNTING

Prod. Controller (Name)

Asst CoordinatoTravel CoordinaProd. Office AssReceptionist

Extra Driver

PRODUCTIONProd. Coordinat

Rigging Best Bo(Name)LIGHTING

Best Boy Grip

Addt'l GripsKey Rigging Gr (Name)

Still Photograph(Name)

Key GripDolly Grip

Clapper LoaderCamera TraineVideo Assist24 fps Playback

2nd Asst Cam "Steadicam "B"1st Asst Cam "B2nd Asst Cam "

Script Superviso(Name)

CAMERA

1st Asst Cam "A

Add. 3rd A.D. Asst Mistress ExTrainee A.D. (Name) Key Dresser

2nd 2nd A.D. (Name) Asst Costume De(Name) W Mistress Ext

(Name) Wardrobe Superv(Name) Asst Coordinato

DIRECTOR / A.D.'sDirector (Name) Costume Design

'O/C means "Own Call" - these people are not usually on set full time.

Look for your name and title for your specific call time.

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Appendix #8 – Example of the Back Page of the Call Sheet

This is a continuation of Page 2 (Back Page) of the Call Sheet.

Genny Operato(Name) 6h30 On set Painter (Name) 6h30On set Carpent(Name) 6h30 o/c

Rigging Gaffer (Name) o/c SET DRESSING o/cBest boy Rig. L(Name) o/c Key Set Decora(Name) o/c o/c

Decorator (Name) o/c o/cSound Mixer (Name) 7h00 Decorator (Name) o/c o/cBoom Operator(Name) 7h00 Decorator (Name) o/c2nd Mixer/Boom(Name) 6h30 Decorator (Name) o/cCable Puller (Name) 6h30 Asst Decorator (Name) o/c SPECIAL PERSONAL

LOCATION Asst Decorator (Name) o/c Armourer (Name) 7h00Location Manag(Name) o/c Asst Decorator (Name) o/c Medic (Name) 6h30Asst Location (Name) o/c Asst Decorator (Name) o/c Security x 2 6h15Asst Location (Name) o/c On Set Dresser (Name) 6h30Asst Location (Name) o/c PROPS Police on set x 1 6h30Asst Location (Name) o/c Propmaster (Name) o/c Police Asst X 4 7h00

Asst Propmaste(Name) o/cCoordinator (Name) - Set Property Mas (Name) 6h15SFX (Name) - Asst Props (Name) 6h15 145 CREW LUNCHES READ 12h30SFX (Name) - Asst Props (Name) 6h15 28 EXTRAS LUNCHES REA12h30

(Name) - PICTURE CAR - OFFICE LUNCHES REA -VISUAL EFFECTS Vehicles Coord.(Name) o/c TOTAL

Supervisor (Name) - Asst Coord. (Name) o/cVFX (Name) - Asst Coord. (Name) 6h45NOTES LOCATIONS #1Base Camp In Old Town - PromenadePrivate Cars In Old Town - Follow DirectionsTechnotrucks On Main Street / Trucks will be moving / Follow directions

Pick-up Trucks to be used to shuttle equipment to setsExtra's Holding H/MU/W At Old Port BuildingLunch Catered at Old Theater in Old Port, 2nd floor, shuttles available, be fast!!!

LOCATIONS #4BASE CAMP: Rear of Studio, as previous daysEXTRA'S HOLDING & H/MUInside ONF/NFB, entrance via side door follow Unit directionsPRIVATE CARNear base camp and in front of Studio/Follow Transport directionsTECHNOTRUCNear studio doors, follow Transport directionsLUNCH: Catered @ 2925 Angry Coast Road, a 5 minute walk from studio - Shuttles availableNext Shooting DateDAY 35 Date: Sunday, February 24, 2007LOCATIONS: 1. St.John's Pub, 380 St.John 2. 101 Warner St.SC. # I/E D/N DESCRIPTION CHARACTER CHRONO PGS LOC60 E D LA BAR #2 1,4 1963 7/8 1

John approaches Mark. X: 32 3259 I D LA BAR #2 1,4,170 1963 1/8 1

John watches Mark get dragged off bar. X: 11 32COMPANY MOVE

25 E N DATE'S BAR/MARK 1 1947 1/8 2The Date escapes. X: 2 11

Total Pages: 1 1/8***DAYS OFF: MONDAY FEB 25, TUESDAY FEB 26 ***

Next Shooting DateDAY 36 Date: Wednesday, February 27, 2007LOCATIONS: 1. Big River, Old TownSC. # I/E D/N DESCRIPTION CHARACTER CHRONO PGS LOC165, I N RESTAURANT 1,5,91 1976 2 2/8 1165B The bowlers share a meal. X: 57 96164 I D PHONE 5 1976 1/8 1pt2 Mark asks for dinner date. 96176 I N LA HOTEL 5 1981 1/8 1

Mark shoots John.Total Pages: 2 4/8

Asst Prod. Accoun (Name)

SPECIAL EFFE

SOUND Accounting Payr(Name)Asst Accountant(Name)

ACCOUNTINGProd. Controller (Name)Canadian Accounta(Name)

Call Sheet Sample

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Appendix #9 — Example of the Front Page of the DPR

The Daily Production Report (the DPR) is usually on a single sheet of legal sized paper, both front and back. In order to show the DPR I’ve broken each page into 2 parts. This is the Front Page of the DPR—see the next page for a continuation of the Front Page.

30 of 55

DAT

0Total Film Received

0Film On Hand 0 0 0 0 0Received Today

0Used Today 0Starting

0Film Inventory Stock #1 Stock #2 Stock #3 Stock # 4 Total Notes:

0To Date 0 0 0 0 To Date 0 0 0

0Today 0 Today

TOTALPrevious 0 Previous

P RINT NG WAS TE0 0

Stock # 3 P RINT NG WAS TE TOTAL Stock # 4

0To Date 0 0 0 0 To Date 0 0

0Today 0 Today

WAS TE TOTALPrevious 0 Previous

Stock # 2 P RINT NG

Special Notes:

Stock # 1 P RINT NG WAS TE TOTAL

Retakes Added SC's Omitted Sc's :To Be TakenTotal To Date Sc's Scheduled but not shot:Taken Today

TotalTaken Previous Scene No.'s Completed:

Total TotalRevised TotalToday Today

Previous Original Today Today

Previous Previous SCENES PAGES Previous SCRIPT SCENES & PAGES MINUTES SET-UPS ADDED SCENES SOUND ROLLS 1/4"

Last Man Out:

Scene #, Set: Locations:Company Dismissed: Camera Wrap:

1st Shot After Dinner

1234

Until 1st Shot After Lunch

Dinner UntilUnit Call Shoot Call 1st Shot Lunch

ASSOC. PRODUCER/PM: (Name) Start Date Scheduled Finish Date Estimated Finish Date

EXECUTIVE PRODUCER: (Name) EXEC. PROD./WRITER: (Name)

Behind

DIRECTOR: (Name) PRODUCERS: (Name) # Days Actual

On Schedule# Days Schedule Ahead

Day#DAILY PRODUCTION REPORT

1st Unit 2nd Unit Rehearsal Test Travel Holidays Total

"WALK THE TALK " Picture #: _____ Date: Nov. 17/06

Most of this form is prepared by the Assistant Directors from information gathered on the set. It is typed and distributed by the Production Office Coordinator.

Daily Production Report Sample

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Appendix #9 – Example of the Front Page of the DPR

This is a continuation of the Front Page (page 1) of the Daily Production Report (DPR).

W H NS F D StuntR T B Adj.TR

NO. NO.

WORKED-W REHEARSE-R WORK TIME MEALS TRAVEL TIMESTARTED-S HOLD-H TEST - T Leave Arrive Depart ArriveTRAVEL-TR FINISHED-F CALL DISMISS START END For On From At

CAST CHARACTER TIME TIME Location Location Location Headq

NOTES:EXTRA TALENT

RATE CALL DISMISS MEAL IN MEAL OUT RATE CALL DISMISS MEAL IN MEAL OUT

Associate Producer/PM - (Name)

A task quite often given to the junior AD's is to log all of the Background Extras and the Cast "In/Out" times. This is the universally accepted way to log those times.


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The Daily Production Report (the DPR) is usually on a single sheet of legal sized paper, both front and back. In order to show the DPR I’ve broken each page into 2 parts. This is the Back Page (page 2) of the DPR—see the next page for a continuation of the Front Page.

Appendix #9 — Example of the Back Page of the DPR

"WALK THE TALK" DATE: STAFF/CREW NAME IN OUT STAFF/CREW NAME IN OUT STAFF/CREW NAME IN OUT

PRODUCTION ART DEPARTMENT PRODUCTION OFFICE

Director (Name) Prod Design (Name) Prod Coord (Name)

Producer (Name) Art Director (Name) APOC (Name)

Producer (Name) 1st Asst Art (Name) Prod Secretary (Name)

Producer (Name) 1st Asst Art (Name) Production Ass (Name)

Exec Prod/Writer (Name) 1st Asst Art (Name) Production Ass (Name)

Exec Producer (Name) 2nd Asst Art (Name) Directors Asst (Name)

Assoc Prod/PM (Name) 2nd Asst Art (Name) Producers Asst (Name)

Asst. Prod Mgr (Name) 3rd Asst Art (Name)

1st Asst Director (Name) Art Dept Coord (Name) ACCOUNTING

2nd Asst Director (Name) Art Dept Appret (Name) Accountant (Name)

3rd Asst Director (Name) Storyboard Artist (Name) 1st Asst Acct (Name)

TAD (Name) Payroll (Name)

Script Supervisor (Name) SET DECORATION 3rd Asst Acct (Name)

Set Decorator (Name)

CAMERA Buyer (Name)

DOP (Name) Leadman (Name) EDITORIAL

Camera OP (Name) Set Dec Driver (Name) Editor (Name)

1st AC (Name) Set Dresser (Name) 1st Asst Edit (Name)

2nd AC (Name) On Set Dresser (Name) 2nd Asst Edit (Name)

Trainee (Name) Editing Asst (Name)

Loader (Name) PROPS Editing PA (Name)

"B" Camera OP (Name) Property Master (Name)

"B" Cam 1st AC (Name) Lead Props (Name) MISCELLANEOUS

"B" Cam 2nd AC (Name) Gun Wrangler (Name) Publicity (Name)

Stills Photographer (Name) Stunt Coord (Name)

SPECIAL EFFECTS Extras Castin (Name)

GRIP SPFX Coord (Name)

Key Grip (Name) SPFX Key (Name) CRAFT SERVICE

Best Boy Grip (Name) SPFX Tech (Name) Key Craft (Name)

Dolly Grip (Name) SPFX Tech (Name) Asst Craft (Name)

Weekly Grip (Name) SPFX Tech (Name)

Weekly Grip (Name) Aerial Rigger (Name) CATERING

Rigging Grip (Name) BG Breakfast

VISUAL EFFECTS Early Brkfst

O/C O/C

O/C O/C

O/C O/C

O/C O/C

O/C O/C

O/C O/C

O/C O/C

O/C O/C

O/C O/C

O/C O/C O/C O/C

O/C O/C

O/C O/C

O/C O/C

O/C O/C

O/C O/C O/C O/C

O/C O/C O/C O/C

O/C O/C O/C O/C

O/C O/C O/C O/C

O/C O/C

O/C O/C

O/C O/C O/C O/C

O/C O/C

O/C O/C

O/C O/C

O/C O/C

O/C O/C O/C O/C

O/C O/C O/C O/C

O/C O/C O/C O/C

O/C O/C O/C O/C

O/C O/C O/C O/C

'OC Means "Own Call". Generally, these people are not paid overtime - their pay rates are called "Daily Flats".


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This is a continuation of the Back Page (page 2) of the Daily Production Report (DPR).

Appendix #9 – Example of the Back Page of the DPR

VISUAL EFFECTS Early Brkfst

ELECTRIC VFX Supervisor (Name) Breakfast

Gaffer (Name) Early Subs

Best Boy Elec (Name) Crew Subs

Weekly Elec (Name) BG Subs

Weekly Elec (Name) CONSTRUCTION Lunch Ordered

Weekly Elec (Name) Const Coord (Name) Lunch Actual

Rigging Elec (Name) Head Carp (Name)

Genny OP (Name) Asst Head Carp (Name)

Const Account (Name) SPECIAL EQUIPMENT

LOCATIONS Standy Carp (Name)

Location Mgr (Name)

Asst Loc Mgr (Name) SCENIC

Asst Loc Mgr (Name) Key Scenic (Name) DAILY PERSONNEL

Location PA (Name) Asst Key Scenic (Name)

Head Painter (Name)

SOUND/VIDEO Ass t Head Paint (Name)

Sound Mixer (Name) Standby Painter (Name)

Boom OP (Name)

Cable/2nd Boom (Name) TRANSPORTATION

Video Playback (Name) Transpo Coord (Name)

Driver Captain (Name)

MAKE-UP & HAIR Head Driver (Name)

Key Make-Up (Name) Driver (Name)

Asst Make-Up (Name) Driver (Name)

Key Hairstylist (Name) Driver (Name)

Asst Hairstylist (Name) Driver (Name)

Driver (Name)

WARDROBE Driver (Name)

Costume Design (Name) Honeywagon (Name)

Asst Cost Design (Name) Pic Car Captain (Name)

Set Supervisor (Name) Picture Cars (Name)

Set Wrdb Asst (Name)

Set Wrdb Asst (Name)

Wrdb Assistant (Name)

NOTES:

O/C O/C

O/C O/C

Per R. Fraser

Per R. Fraser

Per R. Fraser

O/C O/C

Per C. Brooke

O/C O/C

Per C. Brooke

Per C. Brooke

O/C O/C

It is often the task of the Set PA's to gather these times from the Dept Heads at the end of the day.


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Notes

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Notes

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About the Author With 20 years in the motion picture industry, John Gaskin has learned a thing or two about managing production budgets and cost reports for the motion picture industry. As one of the most sought after Film Production Auditors in the industry, John has managed over 40 major film productions all over the world. Having managed almost a billion dollars in production budgets, John is well known for bringing trustworthiness and a calm attitude to a very hot topic – money in film production. John has worked with some of the industries top professionals, including academy award winning producer Ron Howard, Brian Grazer, Frank Oz, etc. Some of his film credits include: Confessions of a Dangerous Mind, Shall We Dance, Undercover Brother, Dark Water, Housesitter, Parenthood, etc. Early on in his career, John saw that exposure to Film Budgets and Cost Re-ports (the primary “Report Card” during film production) was limited to only experienced Producers, Production Managers and Accountants. Addi-tionally, there just wasn’t any written material to learn more about Cost Re-porting, and very few tips about Budgeting that weren’t written for the budget technicians. A pivotal point in John’s career was a meeting he had with Ron Howard in 1993 in NYC. Ron asked a question he couldn’t answer. It was then John re-alized the need for a simple text that cut through the overly complicated field of production budget management in the industry. John then sat down to write a simple book that anyone could use to understand and gain control of their production budgets and presentation of costs in the best light. The overall aim of John’s book is to help creative people, great and small, more easily attain their artistic visions. It is John’s premise that by under-standing the basics of film production money, you will graduate to a new level of control over your career.

A Kit for Directors, Producers, Crew & Film Students

Learn To Learn To Learn To Walk The Talk Walk The Talk Walk The Talk From An Insider:From An Insider:From An Insider: ♦ Open the closed door to Below and Above the Line—‘Direct’ the $$

available & earn Creative Freedom. Learn how with Walk the Talk. ♦ Translate Creative Ideas into terms understandable by the Studio. ♦ There’s a black hole in the film ‘biz causing chaos - it’s called ‘Over-

Budget’. What does it mean, exactly? How can you avoid it? ♦ Those who can oversee Budgets and read Cost Reports will create more

Film Projects and will be able to survive in this tough ‘Biz. ♦ Adopt simple concepts and terms from a Production Auditor who has

worked in film productions around the world for two decades. ♦ Executives, Financiers & Crew – you’ll get the basic budgeting factors

that all Producers know, without being techy about it. ♦ Understand the importance of the ‘Report Card’ (the weekly Cost Report). It may keep you off the “C” List. ♦ New to the Biz? Practice the simple, basic administrative tools (like time

sheets, petty cash reports, purchase orders, etc.). Knowing these basics will enhance your career, or at the very least, help you get your foot in the door.

♦ Check out the Appendices. ♦ Short stories, hard won, to lighten the read. Email some of your own.

‘Walk The Talk’ means knowing how to “Direct” the money — control the money and you control your career.

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WWalk The TTalk - talkfilm.biz · WWalk The TTalk For Directors, Producers, Film Crew and Film Students John Gaskin, B.Eng, Production Auditor Like it or not, your performance is

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