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HomeMy WebLinkAbout5/5/2004 - STAFF REPORTS (8) )Ny DATE: e�3IKII TO: City Council FROM: Assistant City Manager- Administration SUBJECT: Approve Fourth Amendment to Agreement for Operations of the Palm Springs International Film Festival. RECOMMENDATION: It is recommended that the City Council approve an amendment to the agreement with the Palm Springs International Film Festival extending the term of that agreement for one (1) year. SUMMARY: Since 1992, the City has had an agreement with the Palm Springs International Film Festival for the organization, management and production of an annual film festival. The original term of that Agreement was for five (5) years expiring on June 30, 1997. The City Council has amended the term of the agreement several times over the years the most recent being September 30, 2003. Under the existing amendment, the agreement will expire on June 30, 2004. The Film Festival's Board of Directors has requested that the City consider renewing its sponsorship for an additional year. BACKGROUND: The Palm Springs International Film Festival is one of the largest film festivals in North America. The festival has an attractive film sales and distribution record and because it is held in January it is seen by many as a prelude to the Academy Awards. This year's festival, which was held January 8-19, 2004, screened more than 200 films from 65 countries. According to the festival organizers, a record number of people, over 86,000, attended this year's event. DISCUSSION: Historically, the City has paid $250,000 to organize, manage and produce the Film Festival. Last year, Nortel, the Film Festival's title sponsor, terminated its sponsorship. In response to Nortel's decision, the City Council agreed to increase its contribution to $350,000 a year to become the title sponsorship of the event. This amount is payable in several installments throughout the year. The existing agreement with the Film Festival will expire on June 30, 2004. The Film Festival's Board of Directors would like the City to renew its title sponsorship and has requested a one (1) year extension to the agreement. 1 The proposed amendment extends the term of the agreement through June 30, 2005. In addition, staff is recommending several changes to Exhibit "A" Scope of Services. While most of these changes are relatively minor and are intended to clarify existing language, staff believes that the following provisions should be added to the Scope of Services. • A requirement that the City be recognized as Title Sponsor in the Film Festival's Daily Newspaper (CINE/file). • A requirement that the Film Festival provide the City twenty (20) screening passes allowing access to all film screenings and seminars as the parties agree is necessary in order for City to fully enjoy the benefits of sponsorship. • A requirement that the Film Festival provide City two (2) tables of ten seats each to the Awards Gala. Staff has submitted a draft of the proposed amendment and revised Scope of Services to the Film Festival for their review. Staff has not received any comments from the Film Festival as of the publication of this report. If the City Council approves the proposed amendment, staff will include the City's contribution as part of the Fiscal Year 2004-05 budget. Tro L. Butzl� f, Jistant City Manager APPROVED City Manager =� Attachments: 1. Minute Order 2. Fourth Amendment 7� 2, 2 t"0CM--11 FOURTH AMENDMENT TO AGREEMENT FOR OPERATION OF PALM SPRINGS INTERNATIONAL FILM FESTIVAL This Fourth Amendment to Agreement for Operation of Palm Springs International Film Festival ("Fourth Amendment" or "Amended Agreement") is made and entered into this 7th day of April, 2004, by and between the CITY OF PALM SPRINGS, a municipal corporation ("City") and the PALM SPRINGS INTERNATIONAL FILM FESTIVAL ('Festival') and amends that certain "Agreement for the Operation of the Palm Springs' International Film Festival' (the "Original Agreement") dated April 1, 1992 between the same parties, as amended on February 19, 1997 (`First Amendment"), September 19, 2002 (`Second Amendment") and September 30, 2003 (`Third Amendment"). The Original Agreement, the First, Second and Thud Amendment are collectively referred to in this Fourth Amendment as the "Agreement". RECITALS A. On or about April 1, 1992, City and Festival entered into an Agreement for Operation of the Palm Springs Intemational'Film Festival pursuant to which Festival agrees to organize, manage and produce an annual Pahn Springs International Film Festival in January of each year during the tern of said agreement and the City agreed to compensate Festival for such services. B. The original teen of the Agreement was five (5) years expiring on June 30, 1997. C. The Agreement was amended on February 19, 1997, by the First Amendment, which among other things extended the tenn for an additional five (5) years to June 30, 2002. D. The Original Agreement was again amended on September 19, 2002, by the Second Amendment, which among other things extended the tern of the Agreement to June 30, 2003. E. The Original Agreement was further amended on September 30, 2003, by the Third Amendment, which among other things extended the termz of the Agreement to June 30, 2004. F. City and Festival desire to amend the Agreement to extend the City's financial support for one (1) year as set forth in this Fourth Amendment. AGREEMENT The Agreement is hereby amended as follows; 1. Section 3.2 "Terms" is amended to read as follows: "3.2 Term. The tens of this Agreement shall is hereby extended to June 30,2005, provided that this Agreement shall tenninate on the occurrence of the event of tennination specified in Section 3.3 below." 2. Exhibit"A,"the Scope of Services, shall be amended and replaced with the new Exhibit"A," attached hereto and incorporated herein. 3. Except as expressly provided herein, all other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto executed this Second Amendment to be effective as of the Date first written above. CITY OF PALM SPRINGS, a municipal corporation By: City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney PALM SPRINGS INTERNATIONAL FILM FESTIVAL By: Name: Title: EXHIBIT "A" SCOPE OF SERVICES Festival shall organize, manage and produce an annual Palm Springs International Film Festival ("Film Festival") in January of each year during the tern of this Agreement. The Film Festival shall include the screening of motion pictures and holding related events, such as opening ceremonies, closing ceremonies, and awards banquets. Festival's responsibilities shall include, but not be limited to, the following: Planning the Film Festival and developing the annual schedule, budget and theme in consultation with the City. The proposed schedule, budget and theme shall be submitted to the City on or before October 15 of each year. Soliciting sponsorships in an effort to defray the cost of the Film Festival. Securing the necessary facilities for the Film Festival, including theaters, in consultation with the City. Promoting the Film Festival in consultation with the City's Department of Tourism. Coordinating security for the Film Festival in consultation with the City. Providing financial and progress reports on the status of the Film Festival to the City on a quarterly basis. Distributing at least 300 free weekday passes to local clubs and organizations to view films being screened at the Film Festival. The Film Festival shall, at a minimum, meet the following criteria: 1. Sell a minimum of 20,000 tickets. 2. Have annual revenues of at least $100,000.00, excluding revenues from sponsorships. 3. Screen a minimum of 80 films. At least fifteen (15) of such films shall be national premieres and five(5) shall be world premieres. 4. Be financially viable with the $350,000 contribution by the City. 5. Have at least one free public screening. The City shall be recognized as the sponsor of the free public screening. o s 6. The City shall be recognized as the "Title Sponsor" in all advertising. For promotional purposes the Film Festival shall include the following credit line in all paid media (advertising), publications, and signage: "Presented by the City of Palm Springs." 7. The City shall be recognized as the Title Sponsor at or near the entrance(s) of the primary venue site. 8. The City shall receive name recognition on the media interview backdrop placed in the media room for the Film Festival. 9. The City shall be identified on a credit line prominently presented on the Film Festival's website page which features exhibit information. There shall be a hyperlink from the Film Festival's web site to the City's web site at www.ci.palm-springs.ca.us. The parties agree that said link may be "Framed" whereby material or pages from the linked web site appear in a frame on the site which creates the link. The parties expressly recognize their individual obligations and responsibilities for the content, quality, accuracy or completeness of materials contained on their respective web sites and agree to hold each other harmless from any special, indirect, incidental or consequential damages that may arise from the use of, or the inability to use, the respective sites and/or the materials contained on either site whether the materials contained on the site are provided by the City or the Film Festival. 10. The Film Festival shall provide City twenty (20) credentials allowing access to all film screenings, seminars, and receptions including but not limited to the Opening and Closing Night Screening, Awards Gala and VIP Reception, 11. The Film Festival shall provide City twenty (20) screening passes allowing access to all film screenings and seminars as the parties agree is necessary in order for City to fully enjoy the benefits of sponsorship. 12. The Film Festival shall provide City two (2) tables of ten seats each to the Awards Gala. 13. The City shall be positioned as Title Sponsor in all advertising. Examples of advertising include, but are not limited to: a. Program — City shall receive space to place one (1) full-page four-color advertisement on the inside front and back cover of the Film Festival's official prograin for marketing and promotion purposes. In addition, City shall receive space to place a "Welcome Letter" within the Official Program. b. Film Festival Daily Newspaper — City shall be positioned as the Title Sponsor in the banner of the Film Festival Daily Newspaper(CINE/file). q P NJ C. Newspaper Advertising — City shall receive each day during the Film Festival a one-quarter (1/4) page black and white advertisement in the film section of the Desert Sun or other newspaper as the parties agree. d. Radio/Television Advertising — City shall be mentioned as Title Sponsor in all radio spots and television ads relating to the Fihn Festival. � V Hilton Palm Springs Resort LJ4✓'d�6�e !d C'G'l ��Cst� U �._ May 5, 2004e Honorable Palm Springs Mayor Ron Oden Mayor Pro Tern Chris Mills Councilman Steve Pougnet Councilman Mike McCulloch Councilwoman Ginny Foat As general manager of the Hilton Palm Springs Resort, I am pleased and excited to report that the Palm Springs International Film Festival this year greatly exceeded my expectations in terms of branding publicity for the City as well as room night production for my hotel. The City's position as Title sponsor is very important. The Festival generates 400,000 plus impressions. This is Palm Springs' signature event globally. The brand promotion and brand equity that Palm Springs receives throughout the world by association with the glamour and celebrity of the Palm Springs International Film Festival is enormous. Please continue to support the efforts of the Palm Springs International Film Festival. We at the Hilton Palm Springs Resort would like to offer our support of the Palm Springs International Film Festival and ask that the City continue its title sponsorship in 2005 and beyond. It is our feeling that this year's Festival was spectacular as a promotional tool for the City (400,000 impressions) and actual business for the hotels during the twelve days that it took place. The Film Festival needs to be identified as the Palm Springs International Film Festival and not as the "Holly Hotdog" Film Festrival. We ask that the City continue its title sponsorship. Gary Sherwin, Vice President of the Palm Springs Desert Resort Convention and Visitors Authority describes the Palm Springs International Film Festival as follows: "It is one of our premier branding activities for the destination". We feel the same. This year the Festival's group sales division brought in 10 groups consisting of 1,635 attendees and 3,100 total room nights. This Film Festival has come a long way over the past few years. Its huge international press is worth millions of dollars. It's an exciting and glamorous event. The City's continued role as title sponsors is very important. Please continue with your support of the Festival. 400 EastTahquitz Canyon Way, Palm Springs,CA 92262 Tel:+1 760 320 6868 Fax: +1 760 320 2126 www.palmsprings.hilton.com For Reservations Only Call: 1 800 522 6900 in USA 1 800 527 8020 in Canada Reservations:www.hilton.com or 1-800-HILTONS r Mayor Ron Oden and City Council Page Two May 5, 2004 The Festival's survey of 1,570 attendees who filled out their own forms including name and address is very exciting; 60% of those surveyed lived outside of the Coachella Valley, 52% of the out of town film-goer stayed in either a Palm Springs hotel, Bed and Breakfast or Inn, 42% ate at a restaurant twice daily and 33% ate at a restaurant once daily, 12% ate at a restaurant three times daily. This is the kind of event that the City needs. The Festival itself spends between $2,000,000 and $2,600,000 in the Palm Springs community, The 3,100 room nights from group sales are worth $310,000. The CVA's average of $200 spent per day in addition to hotel room costs adds another $600,000 for a total of $910,000. That's just the beginning. The 52% of the out of town film-goers that stay in hotels must spend between $200 & $300 per day including food, etc. If that is 10,000 people, they spend $2,000,000 per day not counting hotel accommodations. If the average stay is three days that's $6,000,000 without hotel rooms. The Festival indeed showcases Palm Springs at its finest. It attracts an attendance of 92,000 with 162 sold out screenings and generates the type of excitement and glamour that Palm Springs sorely needs. The millions of media impressions throughout the world make this event essential. Please continue your sponsorship support. The Festival has the unique ability to get large amounts of print and electronic news coverage before the Festival begins, thus driving attendance to its own event. The Festival is a star-studded event which traditionally generates a priceless amount of publicity for the community. Res p ctfully sub ' ed, i �A �d /G neral M ge H' ton Palm Springs Resort AD:pc PALM�SPRINGS INTERNATIONAL FILM FESTIVAL. 1-- May 3, 2004 David Ready City Manager 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Dear David, I am enclosing the financial information, which you have requested. The enclosed audited financial statement shows the financial performance of the Palm Springs International Film Festival for the two years ending March 31, 2003. 1 am also enclosing an internal statement for the period ending March 31, 2004. This statement has been given to our auditors. We are confident that the operating position presented by this internal statement is essentially accurate. The audited statement for 2004 will be forwarded to you as soon as it becomes available. The January 2004 Festival experienced a small operating loss of -$25,637 on Cash Revenues of $1,965,000 and in-kind donations of services, materials and facilities of $1,414,000, a total of $3,379,000. This compares to a January 2003 Festival profit of $32,000 on cash revenues of $1,984,000. These financial positions are before depreciation. The City of Palm Springs ovens the Palm Springs International Film Festival. In April of 1992, the City of Palm Springs entered into an agreement with a 501c Non Profit entity now called the Palm Springs International Film Society to create, manage, and produce the Film Festival each year for the City. 1700 E.Tahquitz Canyon Way#3,Palm Spnngs CA 92262 (760) 322-2930 —2— May 3,2004 That agreement was, and is a service contract to which a title sponsorship component has been added. The continuation of the City's $350,000 funding contract is essential to the continued operation of the Palm Springs International Film Festival. The City's $350,000 funding is equal to Il8% of the Festival's cash revenues and 10% of the Festival's combined cash and in kind revenues. The Festival's Board of Directors funded $600,000 of the Festival's caste revenues and $500,000 of the in-kind revenues for the January 2004 Festival. In addition, Board Members contributed hundreds and hundreds of hours of volunteer services to the Festival. This participation by the Board of Directors is a remarkable commitment by local and valley citizens to an event which is an engine for Palm Springs tourism, but also benefits the entire Coachella Valley. With the help of the City, the Festival has demonstrated extraordinary stability and resourcefulness in overcoming the loss of Nortel's $750,000 sponsorship. The City increased its funding by $200,000. The Festival has been able to wipe out virtually all of the remaining $550,000 by increasing revenue from its Board of Directors, box office sales, sponsorships and its Awards Gala. The Board of the Palm Springs International Film Festival is committed to fulfilling the Festival's clear mission from the City; "to function as an effective business development arm of the City of Palm Springs and as an engine to drive tourism, the City's chief business." We see the Festival's primary mission to be filling the City's hotel rooms by implementing a branding program that reaches hundreds of millions of individuals throughout America as well as the European and Asian markets. The Festival has the unique ability to get large amounts of print and electronic news coverage before the Festival begins, thus driving attendance to its own event. The Value of the free advertising that the Festival generates for Palm Springs is beyond definitive financial measurement, but it is in the millions and millions of dollars. —3— May 3,2004 This year the Festival generated more than 400,000,000 electronic and print media impressions throughout the world with branding imagery ideal for the City's tourism message. The Desert Sun in it's January 8th 2004, issue said it even better than we can: "Our voice Big-screen event showcases best of Palm Springs International films bring culture, glamour to city The curtain rises tonight on the single event that showcases Palm Springs' heritage like no other - the 15th annual Palm Springs International Film Festival. It is, after all, the movie industry that put Palm Springs on the map. And with the smorgasbord of film fare being offered and star power available this time around, the city will stay on the map, right where it belongs - for all the right reasons. The festival sends an undisputable message about Palm Springs. It is the definitive driver of tourism to the valley. It's a backyard treasure for those who live here. If you fail to take in at least one movie, you're missing out on the biggest entertainment bonanza of the year. Moreover, the festival speaks volumes about the hard work that has gone into making it a reality. This year's festival is made even sweeter because after losing about $800,000 in sponsorships over the past two years, the festival has come back even stronger. It has won the sponsorship of Entertainment Tonight and Tiffany & Co. The film festival has struck the big time. Entertainment Tonight reaches 13.5 million viewers daily in the United States alone; it reaches another 6.5 million viewers in the other 79 countries in which it airs. Having the Entertainment Tonight sponsorship gives Palm Springs a tremendous advantage in branding this city. The city will again earn coveted national - even international - attention with the presence of honorees including Oscar winner Kevin Costner who will headline a cast of honorees at a black-tie gala Sunday at the Palm Springs Convention Center. Costner, who directed and starred in the 1990 Oscar-winning Best Picture, "Dances With Wolves," will receive a Career Achievement in the Art of Cinema Award. Actors such as John Travolta, Sylvester Stallone, Susan Sarandon and Andy Garcia have been past recipients. —4— May 3,2004 The star-studded event, which traditionally generates a priceless amount of publicity for the community, could be off the chart this year in part because the festival coincides with the voting for the Academy Awards nominations. Adding to the excitement of the party will be the presence of a contingent of elite film critics. Not to be ignored is the city of Palm Springs and the enormous commitment it has made to this world-class, internationally recognized event. Without the city's financial support, especially in the early years, the festival might have failed long ago. Each year since 1991, the city has given the festival at least $150,000 and sometimes more. Of all the Palm Springs-sponsored promotional activities launched in recent years, the festival more than any other has shown it can attract the type of crowds - an estimated 75,000 to 80,000 this year - and generate the type of excitement that Palm Springs sorely needs. This festival indeed showcases Palm Springs at its finest." Marketing destinations has never been more dynamic, competitive and important than it is Today. Destination branding should be elevated to Palm Springs' most powerful and important marketing weapon. News coverage of the Festival brands Palm Springs throughout the entire year. The Palm Springs International Film Festival brands Palm Springs as dynamic, worldly and exciting. It reinforces the shared history of Hollywood in Palm Springs. As seen around the world, Palm Springs, as the host of this prestigious event, enhances its competitive position with other tourism cities by high impact association with celebrity and glamour. This association with names like Kevin Costner and Sean Connery, enhances the brand equity of Palm Springs and helps to position the City as a glamorous desirable location in the minds of consumers. The January 2004 Festival drew an attendance of 92,000 and a box office of$636,000. The Festival staff is working closely with the hospitality industry to market room nights during the Festival and to measure the total number of room nights produced by the Festival. The Festival's group sales programs was able to bring ten groups totaling 1,635 attendees to this year's event. These groups alone produced 3,079 room nights in Palau Springs hotels. A list of the hotels and room nights is attached. —5— May 3,2004 The Festival conducted a professional survey of attendees at this year's event. Questionnaires were completed by 1,570 attendees. This process occurred in the various theatres used by the Festival. All completed surveys include the name and address of the Filmgoer. Significant definitive information was obtained from this survey process. 60% of those surveyed lived outside the Coachella Valley. 52% of the out of town filmgoers stayed in either a Palm Springs Hotell, Bed and Breakfast or Inn. 4% stayed in a Hotel outside of Palm Springs. 38% stayed in a private residence as a guest. 11.5% of Festival attendees reported eating at a restaurant three times daily during the Festival; 42% ate at a restaurant twice daily and 33% ate at a restaurant once daily. 58% of the filmgoers from outside Palm Springs were visiting the City for less than 7 days; 27% were visiting the City for 7-14 days. Of those filmgoers, living outside the Coachella Valley 54% lived in Southern California; 16% on the West Coast; 5% in the Mountain States; 6% in the Midwest; 16% on the East Coast and 4% in Canada The Film Festival had attendance of 92,000. The Festival's Executive Director, Darryl Macdonald, has been a leading figure in the Festival world for 30 years. His professional opinion is that the average festival-goer attends 4 screenings. The average festival-goer at the Seattle Film Festival, which was developed by Darryl, averages 6 screenings. However, the Seattle Festival is 28 days and the Palm Springs Festival is only 12 days. The average of 4 screenings per film-goer would mean that 23,000 different individuals attended the Film Festival. Of those, 60% or 13,800 were from outside the Valley. Of those, 37% were guests in private residences. That leaves 9,000 film-goers who would need hotel rooms for an average of 3 nights. Assuming that 80% of the film-goers were couples, that would mean 3,600 couples and 1,800 unattached film-goers or a total of 13,600 room nights. While this information is not definitive, it is within a reasonable tolerance of plus or minus. We will create questions for next year's survey that will give us a more definitive result on the actual room nights. However, given the 92,000 attendance and the ten groups with 1,635 attendees, who used 3,100 room nights, the projected total 13,600 room night number makes mathematical sense and is not improbable and can certainly be used as an indicator. —6— May 3,2004 Almost all of the Festival's $1,965,000 revenues are spent in the Palm Springs Community. The In-Lind revenues of$1,400,000 probably convert into an additional $600,000 that are spent here. The CVA figure for dollars spent by visitors is $200 per day or $300 with hotel rooms. The Festival clearly generates many millions of dollars beyond the enormous value of the free tourism advertising that it produces throughout the world. As citizens of the Community, we thank you for nurturing and supporting this Festival. Sincerely, rl � ]Earl Creenburg , ,9arolgaZzEX Chairman Past Chairman and Treasurer Tour Groups Summary PSIFF 2004 Total Room Group/Hotel Attendees Nights Nights Elder Hostel Group 1 Ramada 266 3 390 Elder Hostel Group 2 Ramada/Quality Inn 578 5 1300 Gadabout Tours Spa Hotel 30 4 60 Interhostel Hyatt 30 5 100 Nomads Hilton 145 4 288 Oceanside Museum of Art Holiday Inn, Palm Mountain Resort 30 3 45 American Womens Ort Comfort Inn 47 3 90 Cinema Society of San Diego Wyndham, Hyatt 154 5 222 University of Arizona Marquis Villas 40 5 90 Tennis Club Tennis Club 315 3 515 TOTALS 1635 3100 DAVID H. READY7 CITY MANAGER MEMORANDUM DATE: APRIL 30, 2004 RE: FILM FESTIVAL TO: MAYOR AND CITY COUNCIL ATTACHED IS THE PRELIMINARY FILM FESTIVAL BUDGET. ADDITIONAL INFORMATION WILL FOLLOW ON MONDAY. I ALM s -\Oi��VIo�A?i cq`I�, 95/04/2004 09:98 FAX 76D 029 820i CITY OF PALM SPRINGS GINNY FOAT R 002/002 MAY-04-2004 TOE 10t15 AM BRABO, CARLSEN & CAHILL PALM SPRINGS INTERNATIONAL FILM reSTIVAL STATEMENTS OF FINANCIAL POSITION 200 2— MARCH 31,2003 AND-Off ASSETS 2003 2002 CURIWNT ASSETS Cgsh $ 17,763 $ 104,429 AMOVMS( oOlVahle 55,638 18,091 Inventory 1,892 4,163 Prepaid expenses 7,124 6,443 Total Current Assets 115,607_ 135,1.26 PROP('ftTY, EQUIPMENT AND IMPROVEM@NTS Compulers and office equipment 36,760 91,137 Projoctors and theater equipment 237.882 21%632 Leasehold Improvements 9276 9,270 20918 35046 Accumulated daproGallon (160,523) (174,014)_ Property,Equipment and Improvements,net 126,395 17e,031 OTHER ASSETS CGOdes A.cralneEndowmeat TrustACcaunt 32,286 21,408 DOPoslls - 436 436 Total Other Assets 32.702 31,844 TOTAL ASSETS S 273,704 S 1434901 Palm Springs Film Festival Actuals 2003-2004 Apr'03-Mar 04 Incom 4•Revenues 41 •Cash Donations 4101 •Government Grants 350,000.00 4102•Corporate Sponsor 203,250.0 4103 •Foundation Grants 32,000.00 4104•Friends/Annual Campaign 4,961.25 4106•Capital Improvement Contributio 12,919.76 _ 4107•General Contributions/Major Gif 82,955.02 4108•Consulates 2,000.00 Total 41 •Cash Donations 688,086.03 42•Fund Raising Revenues 420•Gala Awards _ 4201 •Gala Awards/Individual 40,200.00 42011•Gala Misc.Income 5,000.00 4202•VIP Gala Seating 14,000.00 4203•Angel Tables 82,300.00 4204•Star Table 280,000.00 4210-Patron Table 15,000.00 Total 420•Gala Awards 436,500.00 Total 42•Fund Raising Revenues 436,500.00 _ 43•Box Office Sales 4302•Ticket Sales 43020•Six Pack 120,510.00 43021•Tickets 82,536.00 _ 43022- Matinee Tickets 87,021.00 _ 43023•Master Class/Panels 3,320.00 43024• Refunds/Cancellations -3,919.50 43025 •Gala Screenings 15,351.00 43026•Gala Screening w/Reception 1,575.00 _ 43027-PreFestival Events 430271 •Screenings 8,980.00 Total 43027•PreFestival Events 8,980.00 Total 4302•Ticket Sales 315,373.50 4303•Passes 43031 •Platinum Pass 117,600.00 43032•Benefactor Pass 6,000.00 43035•Silver Pass A 12,260.00 43036•Silver Pass B 12,250.00 43039•Industry Accreditation 2,700.00 Total 4303 •Passes 150,800.00 4304•Group Sales 96,914.50 4306•Gift Certificates Page 1 of 14 Palm Springs Film Festival Actuals 2003-2004 2 Apr'03-Mar 04 43061•25.00 Gift Certificate 25.00 43062•50.00 Gift Certificate 200.00 Total 4306•Gift Certificates 225.00 4307•Special Film Screenings 43071 •Opening-Film&Party 21,600.00 _ 43072•Closing Screening$30.00 9,870.00 43073•Closing Gala$260.00 41,470.00 Total 4307•Special Film Screenings 72,940.00 Total 43•Box Office Sales 636,253 00 45•Merchandise Sales 4501 •Apparel Sales 8,562.80 4502•Poster Sales 2,105.00 4503•Other Resale 18.72 4504•Discount -191.05 Total 45• Merchandise Sales 10,495 47 46-Sales Revenue 4601 •Program Ad Sales 11,200.00 4602 -Program Sales 4,655.00 Total 46•Sales Revenue 15,855.00 49•Financial&Misc.Income 4901 •Interest Income 569.22 4902•Film Submission Fees 9,275.00 4904• Memberships 49071 •Associate 490711 •Individual 200.00 490712•Dual 225.00 490713•Access 245.00 Total 49071 •Associate 670.00 49072•Partner 490721 •Individual 200.00 490722•Dual 150.00 Total 49072•Partner 350.00 49073 •Supporting 490731 •Individual 0.00 490732•Dual 0.00 Total 49073•Supporting 0.00 _ 49074•Director 490741•Individual 1,000.00 490742•Dual 750.00 Total 49074•Director 1,750.00 Page 2 of 14 Palm Springs Film Festival Actuals 2003-2004 s Apr'03-Mar 04 _ 49075•Chairman 490751 •Individual 1,000.00 490752•Dual 0.00 49075•Chairman-Other 0.00 Total 49075 •Chairman 1,000.00 49076•Benefactor 490761 -Individual 2,500.00 490762•Dual 000 Total 49076•Benefactor 2,500.00 49099•Membership Discount -113.25 Total 4904•Memberships 6,156.75 4909• Miscellaneous Income 4,520.62 Total 49•Financial&Misc.Income 20,521.59 Total4•Revenues 1,807,711.0 6•Short Film Fest Revenues 61•Cash Donations-sf 6102-Corporate Sponsors 12,510.00 6104•Major Gifts 30,660.00 Total 61 •Cash Donations-sf 43,170.00 63•Box Office Sales-sf 6301 •Coupon Book Sales 7,965.00 _6302•Ticket Sales 27,027.00 6303•Pass Sales 3,600.00 6305•Rush Ticket 344.00 6306•Industry/Market Passes 1,610.00 Total 63 -Box Office Sales-sf 40,546.00 64•Festival Events-sf 6401 •Opening Night 7,790.00 6402•Awards Night 770 00 Total 64•Festival Events-sf 8,560.00 65• Merchandise Sales-sf 6501 •Apparel Sales 2,450.00 6502•Poster Sales 166.00 6504•Discount -93.20 Total 65 - Merchandise Sales-sf 2,522.80 66•Industry Revenue-sf 6603•SS Film Submission Fees 61,380.00 6602•Booth Rental 0.00 Total 66•Industry Revenue-sf 61,380.00 Page 3 of 14 Palm Springs Film Festival Actuals 2003-2004 a Apr'03-Mar 04 Total 6•Short Film Fest Revenues 156,178.8 8•In-Kind Income 801 •Corporate Sponsors 1,166,145.1 802•Personal Sponsors 247,862.22 Total 8•In-Kind Income 1,414,007.3 Total Income 3,377,897.21 Cost of Goods Sold 5000•Cost of Goods Sold 5301 •Cost of Apparel 5,510.90 5302•Cost of Posters 2,971.95 5303•Cost of Other Resale Items 1,891.97 Total 5000•Cost of Goods Sold 10,374.82 93•Cost of Merchandise Sold-sf 9301 •Cost of Apparel 1,205.05 9302•Cost of Posters 499.02 Total 93•Cost of Merchandise Sold-sf 1,704.07 Total COGS 12,078.89 Gross Profit 3,365,818.3 Expense 5-Total Expenses 51•Cost of Production 5101 •Theater Expenses 510101 •Theater Rent 35,400.00 510102-Projectionist 15,930.00 510103•Lights&Sound 4,940.00 _ 510104•Theater Insurance 6101041 •Liability 0.00 _ 6101042•Film Damage 0.00 6101049•Other 0.00 Total 510104•Theater Insurance 0.00 510105•Projectors 0.00 510106-Film Rental 11,050.00 510107•Customs Broker 7,133.13 510109•Film Traffic 45,061.56 510109•Set Up Charges 11,122.47 510110•Theater Administrative 5101101 •Supplies 1,175.90 5101103•Courier/Delivery 0.00 5101104•Printing/Ticket Stock 7,906.39 6101106•Storage 20758 Page 4 of 14 Palm Springs Film Festival Actuals 2003-2004 s Apr'03-Mar 04 5101107•Communication Equipment 1,814.09 5101103•Other Equipment 10,851.58 6101109 •Miscellaneous 7,256.92 510110•Theater Administrative-Other 3,711.00 Total 510110•Theater Administrative 32,923.46 5101120•FIPRESCI 5101201 •Transportation 3,786.16 5101202•Hotel/per Diem 2,700.00 6101203•Ground Transportation 0.00 Total 5101120•FIPRESCI 6,486.16 51029•Remote Ticketing 5102910•DSLIISDN 6,101.34 _ 5102920•On-Site Support 21,808.00 5102930•Travel/Meals/Auto 3,745,33 Total 51029•Remote Ticketing 31,65767 Total 5101 •Theater Expenses 201,701.45 510111•Delegates Expenses 6101111 •Transportation 29,222.39 _ 5101112•Hotel 4,823.47 _ 5101113•Meal Reimbursement 911.02 5101114•Car Expenses 1,481.06 _ 5101115-Entertainment 410.38 5101113•Guest Services 5101181 •Food/Beverage 260.00 5101182•Printing/Promo 1,06738 5101183•Telephone/Fax 555.27 _ 5101184•Other Equipment 64.26 5101186•Miscellaneous 463.35 Total 6101119•Guest Services 2,410.26 Total 510111 •Delegates Expenses 39,258.58 5102•Festival Events 5102011 •Food Beverage 39,504.39 6102013•Decorations 8,454,36 5102014•Entertainment 5,075.00 5102016•Location Rental 0.00 5102016•Dedicated Contribution/Events 0.00 6102017•Communications Equipment 1,60503 _ 6102018•Other Equipment 7,654.37 5102019•Printing/Promotion 4,028.17 5102020•Awards 2,000.00 5102021 •Lights&Sound 804.00 5102022•Vallet/Service Staff/Misc. 16,577.58 5102023•Group Sales Expense 2,289.57 Page 6 of 14 Palm Springs Film Festival Actuals 2003-2004 s Apr'03-Mar 04 Total 5102•Festival Events 87,992.47 6103•Promotional Expenses 510302-Press Clipping Services 672.66 510303•Design 4,427.03 _ 510304•Printing 15,188.67 _ 510305•Media Buys 5103051 •Dedicated Contribution/Media Su 0.00 510305•Media Buys-Other 134,321.99 Total 510305•Media Buys 134,321.9 510306•Materials/Banners 29,115.59 510307•Postage 5,301.46 51030E•Film Trailer 5,808.28 510308•Writing Services 2,155.00 510310•Public Relations Agent 66,000.00 510311 •P/R Agent Expenses 9,427.54 510312•Courier/Delivery 757.17 510313•Photography 7,200.00 510314•Souvenir Program 5103142•Cost of Ad Sales 0.00 5103143 •Layout&Design 5,500.00 _5103144•Printing 46,154.16 5103147•Postage/Catalogues 910.96 6103148•Commissions 2,040.00 Total 610314•Souvenir Program 54,605.12 510316,Meals/Entertainment 58.77 510318,General Supplies 119.19 510319,Car Expenses 498.12 510320•Web Site Design 15,608.00 510321 •Internet Fees 834.94 _ 510329•Dedicated Contribution/Promo 0.00 510399•Miscellaneous 870.38 Total 5103-Promotional Expenses 352,969.91 5104•Cost of Sponsorship 51041 -Long Distance Travel 510411 -Transportation 0.00 510412-Hotel 0.00 510413- Meal Reimbursement 0.00 510414-Ground Transportation 0.00 _ 610415•Entertainment 0.00 510416-Registration/Tuition 0.00 510417 Telephone/Fax 0.00 510419 Miscellaneous 569.12 Total 51041 •Long Distance Travel 569.12 510418•Sponsor Slides 3,019.36 Page 6 of 14 Palm Springs Film Festival Actuals 2003-2004 Apr'03-Mar 04 51042•Local Travel 510421 -Transportation 344.33 510422•Programmer Lodging 0.00 510423•Meal Reimbursement 0.00 510424-Ground Transportation 10884 510425•Entertainment 0.00 510426•Registration/Tuition 0.00 510427•Telephone/Fax 0.00 510429• Miscellaneous 0.00 Total 51042•Local Travel 453.17 5104•Cost of Sponsorship-Other 1,587.50 Total 5104•Cost of Sponsorship 5,629.15 5106•Fundraising Expenses 51023•Pre-Screenings 6.800.76 510511 •Food/Beverage 137,278.86 510513•Decorations 0.00 510514•Entertainment 0.00 510515•Production 221,555.71 510516•Printing/Promo 5106161•Postage 2,388.86 510516•Printing/Promo-Other 15,990.67 Total 610516•Printing/Promo 18,379.53 510510 •Other Equipment 0.00 510519 •Transportation 16,789.34 510520•Hotel 5,661.96 510521 • Miscellaneous 14,71648 510522•Celebrity Party 16,906.00 510599•Dedicated Contribution/Fundrais 0.00 Total 5106•Fundraising Expenses 438,088.6 Total 51 •Cost of Production 1,125,640.2 Total 5•Total Expenses 1,125,640.2 52•General&Administrative _ 6201 •Payroll 52011•Wages 520111 •Annual Staff 5201111 •Executive Director 68,499.92 _ 5201112• Managing Director 51,666.60 5201113•Exec.Assistant 12,746.25 5201114•Receptionist 8,978.02 5201115•Sponsorship Manager 3,500.00 5201116• Marketing Coordinator 3,33250 Total 520111 •Annual Staff 148,723.29 Page 7 of 14 Palm Springs Film Festival Actuais 2003-2004 $ Apr'03-Mar 04 520112•Seasonal Staff-FF 5201120•Volunteer Director 9,642.64 5201121 -Film Data Mangr. 12,131.19 _ 5201122•Print Traffic Coordinator 5,040.00 5201123-Traffic Assistant 3,500.00 �5201124•Publicity Coordinator 7,950.00 5201125-Travel Coord. 3,725.00 5201126•Asst.Volunteer Director 2,000.00 5201127-Group Sales/Hotel Liason 8,000.00 Total 520112•Seasonal Staff-FF 51,991.83 5201129•Severance Pay 5201130•Dedicated Contribution/Severanc 0.00 5201129•Severance Pay-Other 30,000.00 Total 5201129•Severance Pay 30,000.00 _ 520113 •Festival Staff-Theater-FF _ 5201131 •Transporter 3,333.30 5201132•Trnsp.Assistant 740.00 5201133•Box Office Supervisor 4,500.00 5201134•Box Office Assistant 2,500.00 5201135•Merchandise Supervisor 0.00 5201136•Camelot Mgr. 1,800.00 5201137•PSHS Mgr. 1,500.00 5201138 -Annenberg Mgr. 2,000.00 5201139•Courtyard Mgrs. 5,000.00 5201140-Box Office Staff 4,216.07 5201141 -Technical Advisor 2,521.56 Total 520113-Festival Staff-Theater-FF 28,110.93 Total 52011 •Wages 258,826.05 52012.Employee Benefits 520121 •Medical Insurance 12,839.11 _ 520123•NY Life Annuity 400.00 620125•Life Insurance 609.91 520126•Disability Insurance 991.16 520129-Dedicated Cont./Benefits -628.15 Total 52012•Employee Benefits 14,212.03 52013•Payroll Taxes 520131-FICA-Employer 17,783.76 520132•Dedicated Cont./Payroll Taxes 0.00 620133•SUI/ETT Taxes 7,744.10 520134•Workman's Comp Insurance 6,936.62 520137•Other Payroll Taxes 538.12 520139-Medi-Employer 4,159.15 Total 52013•Payroll Taxes 37,161.75 Page 8 of 14 Palm Springs Film Festival Actuals 2003-2004 s Apr'03-Mar 04 5211831 •Auto Allowance 2,517.1 6211832•Staff Housing 32,760.00 5211833-Cell Phone Allowance 2,100.00 5211834-Utility Reimb. 566.28 Total 5201•Payroll 348,143.25 520119•Festival Staff/Contract Labor 5201901 •Accounting 29,040.00 5201902•Programmers 70,500.00 5201903•Projectionist 0.00 6201904•Special Events Cord. 9,000.00 6201905-Grant Writer 1,100.00 5201907•Guest Services Manager/Assistan 10,500.00 5201903•Dir.Corp. Mktg 17,700.00 5201909•Programming Coordinator 12,000.00 5201910•Publication Editor 5,000.00 5201911 •Programming Assistant 1,500.00 5201912•Creative Services Coordinator 6,000.00 5201913 •Travel Director 4,200.00 6201914•Ground Transportation 2,500.00 6201915-Events Assistant 3,000.00 5201916•Frnt Dest Temp/Gala Support 2,043.41 5201917•Theater Managment/Staff 2,000.00 5201918• Marketing Manager 0.00 Total 520119•Festival Staff/Contract Labor 176,083.41 52014•Employee Recruitment 520146•Advertisements 12,317.92 5201461 -Dedicated Contribution/Recruitm 0.00 520148•Relocation Expenses 6,872.50 52014-Employee Recruitment-Other 61.00 Total 52014•Employee Recruitment 19,251.42 5202•Staff Expenses 520210•Volunteer Party 8,601.7 620211 •Transportation 6,852.43 520212•Hotel 5,373.55 520213- Meals Reimbursement 2,650.22 520214•Ground Transportation 2,066.78 520215• Entertainment Expense 339.48 520216• Registration/Tuition 1,50010 520217•Telephone/Fax 126.92 520218•Misc.Expenses 228.49 Total 5202•Staff Expenses 27,739.71 5203•Office Supplies 52031•General Supplies 6,211.87 52032•Computer/Copier Supplies 5,364.67 Page 9 of 14 Palm Springs Film Festival Actuals 2003-2004 10 _ Apr'03-Mar 04 52033•Postage 3,573.03 52034•Courier/Delivery 1,545.2 _ 62035•Office Printing 7,684.19 52036•Office Equipment 3,600.97 52037•Kitchen Supplies 1,053.29 62038•Janitorial/Maint. 5,116.24 52039•Miscellaneous 945.34 52040•Postage Reimb.Office -5.00 Total 5203•Office Supplies 35,092.84 5204•Utilities 52041 •Electricity 10,568.23 52042•Gas 427.29 52043•Cable 48605 Total 6204•Utilities 11,481.57 5205 •Telephone Expenses 52051•Basic Line Charges 13,013.70 _52052•000 Number 174.97 _ 52053•Long Distance-Sprint 2,241.12 52054•Cellular Phone 6,734.97 52056•Installations/Repairs 937.50 Total 5205•Telephone Expenses 23,102.26 5206•Other Administrative Exps. 52061 •Business Insurance 5,925.61 52062•Insurance,Key Emp. 927.07 52063•Licenses/Permits 179.00 _ 52064•Contrib/Donations 500.00 62065•Dues&Subscriptions 2,099.34 52066•Office Equipment Lease 7,452.81 52067•Rent/Triple Net 10,811.71 52068•Security/Alarm 450.00 52069•Education/Training 359.00 52071 •Internet Fees 768.70 52072•Computer Consulting 2,780.00 52073•Board Expenses 92338 52999•Reimbursed Expenses -10.00 Total 5206•Other Administrative Exps. 33,166.62 Total 52•General&Administrative 674,061.0E _ 59•Finance&Other 5901 •Taxes 590102•State Taxes 10.00 590104•Property Tax 2,422.01 Total 5901 •Taxes 2,432.01 5902•Financial Expenses Page 10 of 14 Palm Springs Film Festival Actuals 2003-2004 Apr'03-Mar 04 590201 •Credit Card Charges 20,011.51 590202•Interest Expense 4,325.02 590203•Bank Service Charges 3,588.26 590204•Cash Over/Short 387.49 590206•NSF Checks/Charge Backs 180.00 590209• Misc.Financial Expenses 50.00 590211 •Fees 582.33 590212•Loss on Sale of Stock 227.87 590213•Vendor Credits/Lst Yr Bill -12,979.10 Total 5902•Financial Expenses 16,373 38 6904•Accounting Audit 7,500.00 5905•Legal 59051 •Attorney Fees 2,675.09 59052•Court Fees 0.00 59053•Settlements 0.00 Total 5905•Legal 2,675.09 5906•Bad Debt Expense 0.00 6909•Miscellaneous Expense 0.00 5999•Suspense 0.00 Total 59•Finance&Other 28,980.48 7•In-Kind Expenses 71 •Production Expenses 7101 •Theater Expenses 90,612.00 7102•Production Administrative 8,073.49 7103•Delegate Expenses 85,959.51 7104•Festival Events 211,119.9 Total 71 -Production Expenses 395,764.94 72•Promotional Expense 759,622.01 73•Sponsorship Expenses 7301 •Sponsorship Admin. 3,181.25 Total 73•Sponsorship Expenses 3,181.25 74•General&Administrative 7401•Labor 137,766.0 7402•Staff Travel 495.00 7403•Supplies 1,459.25 7404•Rent 93,060.00 7496•Telecommunications 671.37 7406•Information Processing 6,750.00 7407•Legal-Attorney Fees 1,084.97 7408•Board Expenses 8,184.74 Total 74•General&Administrative 249,471.33 75•Miscellaneous 5,967.79 Total?•In-Kind Expenses 1,414,007.3 Page 11 of 14 -Palm Springs Film Festival Actuals 2003-2004 12 Apr'03-Mar 04 U9•Short Fest Expenses 91 -Cost of Production-sf 9101 •Theater Expenses-sf 910101 •Theater Rent 0.00 910107•Customs Broker 273.00 910100-Film Traffic 7,080.52 910110•Theater Administrative _ 9101104•Printing 996.03 9101106•Dedicated Cont.Theater Admin 0.00 9101107•Telephone/Fax 956.20 9101108•Other Equipment 0.00 9101109•Miscellaneous 0.00 Total 910110•Theater Administrative 1,952.23 Total 9101 •Theater Expenses-sf 9,305.75 910111 -Delegate Expenses-sf 9101111 -Transportation 0.00 9101112•Hotel 000 9101113•Per Diems/Meals 1,250,00 9101114•Car Expenses 437.50 9101115•Entertainment 0.00 9101116•Prize Monies/Regular 14,000.00 9101117•Prize Monies/Drug Free 000 9101118-Other Equipment 0.00 9101119- Miscellaneous 582.95 9101121 •Guest Services 910121-Food/Beverage 513.91 910122•Telephone/Fax 116.95 _ 910123•Printing/Promo 0.00 _ 910124•Other Equipment 5,100.00 910125• Miscellaneous 1,836.79 Total 9101121 •Guest Services 7,567.66 Total 910111 •Delegate Expenses-sf 23,838.10 9102•Festival Events-sf _ 9102011 •Food 7,093.00 9102012•Beverage 994,23 9102013•Decorations 0.00 9102014•Supplies 0.00 9102016•Lights&Sound 0.00 9102016-Printing/Promo 0.00 9102019 • Miscellaneous 542.25 9102020 •Site rental 0.00 Total 9102•Festival Events-sf 8,62957 9103•Promotional Expenses-sf Page 12 of 14 Palm Springs Film Festival Actuals 2003-2004 13 Apr'03-Mar 04 91 3301 •Sponsor Advertising 0.00 910303•Design 2,132.60 910304•Printing 4,186.70 910305-Advertising Buys 19,532.77 910306-Publicist/Press 9,000.00 910307•Film Guide Insert 0.00 910308-Film Trailer 1,645.00 910310•Promotional Kits 1,643.73 910312-Courier/Delivery 262.87 910313-Photography 1,300.00 910316•Meals/Entertainment 250.00 910320•Postage 1,932.43 910321 •Website Hosting 300.00 910322•Dedicated Contribution Promo Ex 0.00 910399•Miscellaneous 836.40 Total 9103•Promotional Expenses-sf 43,022.50 9104•Cost of Sponsorship-sf 91041 •Sponsor Travel-sf 910419• Miscellaneous 105.93 Total 91041 •Sponsor Travel-sf 105.93 91043 •Sponsor Administrative-sf 910431 •Supplies 0.00 910432•Postage 67.96 910433•Courier/Delivery 0.00 910434-Printing 416.93 910438•Other Equipment 0.00 910439•Miscellaneous 0.00 Total 91043•Sponsor Administrative-sf 484.89 Total 9104•Cost of Sponsorship-sf 590.82 9105 •Fundraising Expenses 623.71 Total 91 -Cost of Production-sf 86,010.45 92-Gen&Administrative Expenses-s 9201 •Payroll-sf 92011 •Wages-sf 920112•Guest Accred. 0.00 920113•Film Data Manager 10,783.28 920114•Box Office Staff 1,50000 920115•Volunteer Director 5,356.94 920116-Theater Manager 1,000.00 920117-Film Traffic 4,000.00 920113•Receptionist 2,603,13 920119-Sponsor Commission 4,000.00 Total 92011 •Wages-sf 29,243.35 Page 13 of 14 Palm Springs Film Festival Actuals 2003-2004 14 Apr'03-Mar 04 92012•Subcontractor Payments-sf 920121 •Programmers 22,000.00 920122•Accounting 0.00 920124•Hospitality Coordinator 1,500.00 920125•Panel/Jury Coordinator 2,500.00 Total 92012•Subcontractor Payments-sf 26,000.00 920120•Dedicated Cont./Wages 0.00 Total 9201 •Payroll-sf 56,243.35 94•Remote Ticketing-sf 94010•ISDN/DSL Lines 913.61 94015•ISP Internet Service Provider 249.90 94020•Ticket Stock 0.00 94025•System Support 940251 •Travel/Per Diem System Support 1,138.79 94025•System Support-Other 4,080.19 Total 94025•System Support 5,218.98 Total 94•Remote Ticketing-sf 6,382.49 Total 92•Gen&Administrative Expenses-s 61,625.8 95 •Staff Expenses-sf 95010•Volunteer Party 45466 Total 95•Staff Expenses-sf 454.66 99• Finance&Other-sf 9902•Financial Expenses-sf 990201 •Credit Card Charges 294.41 990203•Bank Service Charges 26.00 990204•Cash ShorVOver 140.60 Total 9902•Financial Expenses-sf 461.01 990205•NSF-Checks/Chargebacks 215.00 Total 99•Finance&Other-sf 676.01 Total 9•Short Fest Expenses 148,766.96 Total Expense 3,391,456.0 Net Income -25,637.72 Page 14 of 14 z 'Palm Springs Film Festival 2003-2004 Summary 1 Income Apr'03-Mar 04 Cash Donations Government Grants 350,000.00 Corporate Sponsor 203,250.00 Foundation Grants 32,000.00 Friends/Annual Campaign 4,961.25 Capital Improvement Contribution 12,919.76 General Contributions/Major Gifts 82,955.02 Consulates 2,000.00 Total •Cash Donations 688,086.03 Fund Raising Revenues Gala Awards Gala Awards/Individual 40,200.00 Gala Misc.Income 5,000.00 VIP Gala Seating 14,000.00 Angel Tables 82,300.00 Star Table 280,000.00 Patron Table 15,000.00 Total Gala Awards 436,500.00 Box Office Sales 636,253.00 Merchandise Sales 10,495.47 Program Ad's/Prog.Sales 15,855.00 Financial&Misc.Income 20,521.59 Short Film Fest Revenues Cash Donations 43,170.00 Box Office Sales 40,546.00 Festival Events 8,560.00 Merchandise Sales 2,522.80 Industry Revenue 61,380.00 156,178.80 TOTAL FESTIVAL CASH REVENUES 1,963,889.89 In-Kind Income 1,414,007.32 TOTAL REVENUE 3,377,897.21 Cost of Goods Sold Cost of Goods Sold t201701.45 Cost of Merchandise Sold-sf Total COGS Expense Cost of Production Theater Expenses Delegates Expenses 39,258.58 Festival Events 87,992.47 Promotional Expenses 1 352,969.91 : Palm Springs Film Festival 2003-2004 Summary 2 Cost of Sponsorship 5,629.15 Fundraising Expenses 438,088.64 Total Cost of Production 1,125,640.20 Wages Annual staff 148,723.29 Seasonal Staff 51,991.83 Severance Pay 30,000.00 Festival Staff-Theater 28,110.93 258,826.05 Employee Benefits/Payroll Taxes 89,317.20 Total Wages 348,143.25 Festival Staff/Contract Labor 176,083.41 Employee Recruitment 19,251.42 _ Staff Expenses 27,739.71 Office Supplies 35,092.84 Utilities 11,481.57 Telephone Expenses 23,102.26 Other Administrative Exps. 33,166.62 325,917.83 Total General&Administrative 674,061.08 _Taxes 2,432.01 Financial Expenses 16,373.38 Audit Expense 7,500.00 Legal Fees 2,675.09 Total Finance&Other 28,980.48 Short Fest Expenses Cost of Production-sf Theater Expenses 9,305.75 Delegate Expenses 23,838.10 Festival Events 8,629.57 Promotional Expenses 43,022.50 Cost of Sponsorship 590.82 Fundraising Expenses 623.71 Total Cost of Production-sf 86,010.45 Remote Ticketing 6,382.49 Staff Expenses 55,698.01 Finance&Other 676.01 Total General/Staff Expense 62,756.51 Total Short Fest Expenses 148,766.96 TOTAL CASH EXPENSE 1,977,448.72 E Palm Springs Film Festival 2003-2004 Summary 3 In-Kind Expenses Production Expenses 395,764.94 Promotional Expense 759,622.01 Sponsorship Expenses 3,181.25 General&Administrative 255,439.12 Total In-Kind Expenses 1,414,007.32 TOTAL EXPENSE 3,391,456.04 Net Income -25,637.72 *Please note that$43,008 in depreclation w II be added to the year-end financials but doe not affect the cash net FjIhancoa9 Statements PALM SPRINGS INTERNATIONAL FILM FESTIVAL MARCH 31, 2003 AND 2002 Member of the PR rvate Companies _ _ MICHAEL 7. BRABO, CPA Racace Section oftheknertcnn Institute s (�,,;� s ''� �J V✓AYNE P" CARLSHN,CPA of C,otyied Pubttc Accoimtants '�- — 5"—"--� REAM WM CAHILL,CPA Ceitified Public Accountants INDEPENDENT AUDITOR'S REPORT Board of Directors Palm Springs International Film Festival Palm Springs, California We have audited the accompanying statement of financial position of Palm Springs International Film Festival as of March 31, 2003 and the related statements of activities and changes in net assets, and cash flows for the year then ended. These financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of Palm Springs International Film Festival as of March 31, 2002, were audited by other auditors whose report dated May 17, 2002, expressed an unqualified opinion on those statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the March 31, 2003 financial statements referred to above present fairly, in all material respects, the financial position of Palm Springs International Film Festival as of March 31, 2003, and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. August 14, 2003 t i i 1 I I I I B TAHQUITZ CANYON WAY,SUITE 203,PALM SPRINGS,CA 92262 ph:760-320-0848 fax:760-322-4626 web:www.bcc-cpa.com LIABILITIES AND NET DEFICIT 2003 2002 CURRENT LIABILITIES Accounts payable and accrued expenses $ 70,967 $ 120,961 Notes payable - current portion - Note 1 250,000 250,000 Current portion of obligation under capital lease - Note 4 4,419 3,781 Deferred income - 2,100 Total Current Liabilities 325,386 376,842 LONG-TERM LIABILITIES Note payable - Note 6 12,600 12,600 Obligation under capital lease - Note 4 4,705 9,123 Total Long-Term Liabilites 17,305 21,723 Total Liabilities 342,691 398,565 NET ASSETS (DEFICIT) Unrestricted (88,987) (74,664) Permanently restricted - Note 3 20,000 20,000 Total Net Deficit (68,987) (54,664) TOTAL LIABILITIES AND NET DEFICIT $ 273,704 $ 343,901 The accompanying notes are an integral part of these financial statements. 2 PALM SPRINGS INTERNATIONAL FILM FESTIVAL STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEARS ENDED MARCH 31, 2003 AND 2002 2003 2002 UNRESTRICTED NET ASSETS UNRESTRICTED REVENUES Box office sales $ 850,602 $ 461,682 Merchandise and program sales 46,504 35,977 Fundraising revenues 62,587 173,817 Interest and other income 16,700 9,941 Donated services, materials and facilities - Note 5 1,053,074 764,434 Donations and corporate sponsorships 658,284 726,711 Grants - Note 2 212,500 175,000 Short film festival income 137,118 144,014 Total unrestricted revenues 3,037,369 2,491,576 EXPENSES Program services Production costs 1,515,913 938,219 Festival events 382,605 330,866 Promotional expenses 357,681 442,921 Fundraising expenses 380,072 174,795 Total program services 2,636,271 1,886,801 Support activities General and administrative expenses 338,869 576,382 Interest expense 12,112 16,553 Depreciation expense 46,666 43,174 Cost of merchandise sales 17,774 14,608 Total support activities 415,421 650,717 Total expenses 3,051,692 2,537,518 DECREASE IN UNRESTRICTED NET ASSETS (14,323) (45,942) NET DEFICIT- BEGINNING OF YEAR (54,664) (8,722) NET DEFICIT- END OF YEAR $ (68,987) $ (54,664) The accompanying notes are an integral part of these financial statements. 3 PALM SPRINGS INTERNATIONAL FILM FESTIVAL STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED MARCH 31, 2003 AND 2002 2003 2002 CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets $ (14,323) $ (45,942) Adjustments to reconcile change in net assets to net cash from operating activities: Depreciation expense 46,666 43,174 Scrapped equipment 6,270 (Increase) decrease in assets: Accounts receivable (70,747) 53,419 Inventory 2,271 (1,127) Prepaid expenses 1,319 (1,984) Charles A. Crane Trust (858) (1,603) Deferred compensation plan - 20,361 Increase (decrease) in liabilities: Accounts payable and accrued expenses (49,997) (30,434) Deferred income (2,100) (1,235) Net cash provided (used) by operating activities (81,499) 34,629 CASH FLOWS FROM INVESTING ACTIVITIES Payments for the purchase of property and equipment (1,400) (70,683) Net cash used by investing activities (1,400) (70,683) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short term borrowing 681 Repayments on capital lease (3,777) (1,136) Net cash used by financing activities (3,777) (455) NET DECREASE IN CASH (86,676) (36,509) CASH - BEGINNING OF YEAR 104,429 140,938 CASH - END OF YEAR $ 17,753 $ 104,429 SUPPLEMENTAL INFORMATION Cash paid during the year for interest $ 12,112 $ 16,553 Non-cash donations of services, materials and facilities $ 1.053,074 $ 764,434 The accompanying notes are an integral part of these financial statements. 4 PALM SPRINGS INTERNATIONAL FILM FESTIVAL NOTES TO FINANCIAL STATEMENTS MARCH 31, 2003 AND 2002 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Palm Springs International Film Festival, a nonprofit corporation in existence since June 1989, was organized exclusively for charitable purposes to promote film festivals and related activities in the City of Palm Springs and surrounding areas, and to provide a wide variety of film experiences to people of the Coachella Valley and its visitors. Accounting Method The financial statements of the Organization are prepared using the accrual method of accounting. Fund Accounting To assure observance of limitations and restrictions placed on the use of resources available to the Organization, the accounts are maintained in accordance with the principles of fund accounting. This is the procedure by which resources are classified for accounting and reporting purposes into funds established according to their nature and purpose. Separate accounts are maintained for each fund; however, in the accompanying financial statements, funds that have similar characteristics have been combined into fund groups. Accordingly, all financial transactions have been reported by fund group. The Organization is required to report information regarding its financial position and activities according to three classes of fund groups (net assets) as follows: The Unrestricted Funds represent all resources over which the Board of Directors has discretionary control for use in operating the Organization, as well as all property, plant and equipment of the Organization. The Temporarily Restricted Funds represent those resources that are received with temporary stipulations that limit the use of the assets. When a restriction expires, that is, the purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. There are currently no temporarily restricted funds. The Permanently Restricted Funds represent funds that are subject to permanent restriction by the donor requiring that the principal be invested and only the income be used for operations. (See Note 3) Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Revenue Recognition Contributions are recognized when the donor makes a substantial unconditional promise to give to the Organization. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions are recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When the restrictions expire, temporarily restricted net assets are reclassified to unrestricted net assets. 5 PALM SPRINGS INTERNATIONAL FILM FESTIVAL NOTES TO FINANCIAL STATEMENTS MARCH 31, 2003 AND 2002 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash and Cash Equivalents For the purpose of financial statement reporting, the Organization considers all highly liquid investments with maturities of three months or less to be considered cash equivalents. Invento Inventory, consisting of saleable memorabilia, is valued at the lower or cost or market. The first-in, first-out method (FIFO) is used to determine the cost. Property Equipment and Improvements Property, equipment and improvements are carried at cost, or, in the case of donated assets, at market value, on the date of donation and are depreciated using the straight-line method based on the estimated useful lives of the various classes of assets ranging from 5 to 7 years. Expenditures for maintenance and repairs are charged to operations as incurred. Betterments and renewals are capitalized. Fair Value of Instruments The carrying value of the Organization's financial instruments is considered to approximate the fair value. Cash and accrued liabilities are settled so close to the balance sheet that the fair value does not differ significantly from the stated amounts. Income Taxes The Organization is exempt from federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code, and as such, no provision has been made in the financial statements for income taxes. Grants and Corporate Sponsorships The Organization records income From unrestricted grants and corporate sponsorships in the period designated by the grantor or corporate sponsor. Grants and sponsorships received prior to the period designated by the grantor or corporate sponsor are recorded as deferred revenue. Donated Services Materials and Facilities Donated services, materials and facilities are reflected in the financial statements as revenue and expenses at their fair market value when the value is ascertainable. Donated volunteer services of time are valued at$9.00 per hour. In prior years, the Organization received the use of telecommunications equipment in exchange for a corporate sponsorship. The value of the equipment was recognized in that fiscal year as income and expense. The Organization continues to receive the value of the use of the equipment at no cost to the Organization. Functional Allocation of Expenses Expenses by function have been allocated among program and support service classifications on the basis of actual expenses, time records, and on estimates made by the Organization's management. 6 PALM SPRINGS INTERNATIONAL FILM FESTIVAL NOTES TO FINANCIAL STATEMENTS MARCH 31, 2003 AND 2002 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Advertising Advertising costs are charged to operations when incurred. Reclassifications Certain reclassifications were made to the 2002 financial statements in order to conform to the 2003 presentation NOTE 1: NOTES PAYABLE The Organization established a line of credit in the amount of $200,000 with Union Bank of California, effective November 30. 2001, maturing December 31, 2003, with interest at prime minus 0.5%, to be paid monthly. The line of credit is secured by a board members personal investments. At March 31, 2003 and 2002 the outstanding balance was $200,000 for both years. The Organization signed a promissory note in the amount of$50,000 with Union Bank of California, effective November 30, 2001, with interest at prime minus 0.5%, to be paid monthly. The note matures December 31. 2003 and is payable in full upon maturity. At March 31, 2003 and 2002 the outstanding balance was$50,000 for both years. Both of the above notes payable were paid in full in June 2003. NOTE 2: GRANTS The City Council of the city of Palm Springs approved grants to the Organization in the amount of $150,000 per year through June 30, 2002. During 2002, the City of Palm Springs increased its funding by an additional$100,000. In June 2002 the City of Palm Springs approved a $150,000 grant to the Organization for the 2003 festival. NOTE 3: PERMANENTLY RESTRICTED NET ASSETS During the year ended March 31, 1995, the Organization received a pledge of$20,000 to endow a trust account known as the Charles A. Craine Desert Palm Achievement Award, requiring that the Organization utilize income derived from this endowment to fund the costs associated with the annual award. The Board has elected to utilize unrestricted resources to fund the costs associated with the award during the 2003 and 2002 festivals and has allowed the income to accumulate in the Charles A. Craine Endowment Trust Account. The accumulated fund earnings are reported as unrestricted funds in the accompanying financial statements. The proceeds of this endowment are currently invested with Palm Desert National Bank. NOTE 4: CAPITAL LEASES AND OPERATING LEASES The Organization has purchased computers and related equipment under capital lease$. Accordingly, the Organization has capitalized the equipment in the amount of$14,039. Accumulated amortization on this equipment at March 31, 2003 was $6,240. Amortization expense in the accompanying statements of activities and changes in net assets totaled $4,680 for the year ended March 31, 2003. 7 PALM SPRINGS INTERNATIONAL FILM FESTIVAL NOTES TO FINANCIAL STATEMENTS MARCH 31, 2003 AND 2002 NOTE 4: CAPITAL LEASES AND OPERATING LEASES (Continued) The future minimum lease payments required under the capital leases at March 31, 2003 are: 2004 $ 5,544 2005 5,083 10,627 Less: interest portion of payments (1,503) Present value of net minimum lease payments 9,124 Less. current portion (4,419) Long-term portion 4,705 The Organization leases office space under an operating lease agreement with a related party. The lease term is 24 months beginning January 1, 2002 expiring as of December 31, 2003. Rent expense from this operating lease totaled $38,154 for the year ended March 31, 2003. The Organization also leases certain office equipment under operating lease agreements. The future minimum rental payments required under the operating leases at March 31, 2003 are: 2004 $ 36,205 2005 5,349 2006 5,349 2007 1,337 48 440 NOTE 5: DONATED SERVICES, MATERIALS AND FACILITIES During the years ended March 31, 2003 and 2002 the Organization received various donations of services, materials and facilities. Donations have been allocated to the functional expenses as follows: 2003 2002 Delegates $ 164,566 $ 87,964 Festival events 137,100 210,840 Promotional 518,900 205,699 Labor&supplies 143,850 112,255 Rent 88,658 122,676 Information processing 25,000 053 074 $ 764 434 8 PALM SPRINGS INTERNATIONAL FILM FESTIVAL NOTES TO FINANCIAL STATEMENTS MARCH 31, 2003 AND 2002 NOTE 6: RELATED PARTY TRANSACTIONS The Organization paid $38,612 for leased office space to a company owned by a member of the Board of Directors. The Organization borrowed $12,600 in June 2000, interest free, from a member of the Board of Directors The amount was still outstanding as of March 2003 and is due and payable no later than July 1, 2005 The Organization paid $8,354 for legal services to a company partially owned by a member of the Board of Directors. 9 Member ofthe Pr ivale Carupaives MICHAEL ] BRABO,CPA {`S£ Pracllce Sectrmsafthe Anvemmn/nstnhtle ; � . ./ r ` ��� ,bl t WEVIN E. CAHILL,CPA .b= 4. . W noof Cerrtfied Public Accountwrts -'•-""-'- 10EVIN WM CAHILL,CPA Certified Public Accountwits INDEPENDENT AUDITOR'S REPORT ON ADDITIONAL INFORMATION Board of Directors Palm Springs International Film Festival Palm Springs, California Our report on our audit of the basic financial statements of Palm Springs International Film Festival appears on page 1. The audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The Schedules of Functional Expenses (Schedule 1) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and, accordingly, we express no opinion on them. August 14, 2003 Lab), r4. 6AL�'U/ LLp 10 1111 E.TAHQUITZ CANYON WAY,SUITE 203,PALM SPRINGS,CA 92262 ph:760-320-0848 fax:760-322-4626 web:www.bcc-epa.com PALM SPRINGS INTERNATIONAL FILM FESTIVAL Schedulel SCHEDULES OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED MARCH 31, 2003 AND 2002 2003 2002 PROGRAM SERVICES PRODUCTION COSTS Theater $ 190,274 $ 155,695 Production administration 20,147 27,157 Wages 270,850 429,597 Contract labor 136,246 60,066 Payroll expenses 27,262 44,545 Employee benefits 18,337 21,061 Delegates 37,439 55,408 Short film festival 46,974 56,726 Production costs-trade 768,384 87,964 1,515,913 938,219 FESTIVAL EVENTS Hospitality suite 13.990 8,742 Opening party 18,839 15,888 Closing party 53,623 24,106 Chicago event 7,071 - Cinematographers day 15,269 48,853 Volunteer party 7,725 16,664 Short film festival 14,762 4,173 Festival events- other 3,618 1,600 Festival events-trade 247,708 210,840 382,605 330,866 PROMOTIONAL EXPENSES Advertising 133,751 76,317 Photography 6,965 4,750 Souvenir program 63,513 48,587 Public relations agent 29,902 45,095 Web site 24,408 15,092 Short film festival 47,646 31,461 Promotional expenses - other 39,549 15,920 Promotional expenses-trade 11,947 205,699 357,681 442,921 Continued... See accountant's report, 11 PALM SPRINGS INTERNATIONAL FILM FESTIVAL Schedule I SCHEDULES OF FUNCTIONAL EXPENSES FOR THE YEARS ENDED MARCH 31, 2003 AND 2002 (continued) 2003 2002 FUNDRAISING EXPENSES Awards presentation travel $ 25,355 $ 16,355 Black tie gala 305,669 158,140 Special screenings 13,745 3D0 Fundraising expenses- other 3,767 Fundraising expenses-trade 31,536 - 380,072 174,795 Total program services 2,636,271 1,886,801 SUPPORT ACTIVITIES GENERAL AND ADMINISTRATIVE EXPENSES Wages 30,094 47,733 Contract labor 15,138 6,674 Payroll expenses 3,029 4,949 Employee benefits 2,037 2,340 Staff expenses 21,310 28,293 Office administration 25,880 20,365 Rent 38,154 39,758 Utilities 8,628 8,788 Telephone 30,287 21,259 Credit card discounts 22,232 11,391 Employee recruiting 31,254 - Legalfees 12,057 - Short film festival 47,076 30,750 General and administrative expenses - other 51,693 94,151 General and administrative expenses-trade - 259,931 338,869 576,382 INTEREST EXPENSE 12,112 16,553 DEPRECIATION EXPENSE 46,666 43,174 COST OF MERCHANDISE SALES 17,774 14,608 Total support activities 415,421 650,717 Total expenses for program services and support activities $ 3,051,692 $ 2,537,518 See accountant's report. 12 Page 1 of') Cynthia Escarpita From: Uken, Cindy [CUKEN@palmspri.gannett.comj Sent: Monday, May 03, 2004 1:09 PM To: Cynthia Escarpita Subject: RE: Editorials Bg,-SCreexk evea� showe&ses best of flat m spyr! ngs Anternntn®naanl films Krung culture, glsarnour to city The curtain rises tonight on the single event that showcases Palm Springs' heritage like no other- the 15th annual Palm Springs International Film Festival. It is, after all, the movie industry that put Palm Springs on the map. And with the smorgasbord of film fare being offered and star power available this time around, the city will stay on the map, right where it belongs - for all the right reasons. The festival sends an undisputable message about Palm Springs. It is the definitive driver of tourism to the valley. It's a backyard treasure for those who live here. If you fail to take in at least one movie, you're missing out on the biggest entertainment bonanza of the year. Moreover, the festival speaks volumes about the hard work that has gone into malting it a reality. This year's festival is made even sweeter because after losing about $800,000 in sponsorships over the past two years, the festival has come bath even stronger. It has won the sponsorship of Entertainment Tonight and Tiffany & Co. The film festival has struck the big time. Entertainment Tonight reaches 13.5 million viewers daily in the United States alone; it reaches another 6.5 million viewers in the other 79 countries in which it airs. Having the Entertainment Tonight sponsorship gives Palm Springs a tremendous advantage in branding this city. The city will again earn coveted national - even international - attention with the presence of honorees including Oscar winner Kevin Cosner who will headline a cast of honorees at a black-tie gala Sunday at the Palm Springs Convention Center. Costner, who directed and starred in the 1990 Oscar-winning Best Picture, "Dances With Wolves," will receive a Career Achievement in the Art of Cinema Award. Actors such as John Travolta, Sylvester Stallone, Susan Sarandon and Andy Garcia have been past recipients. Other gala honorees include: Anthony Minghella, the 1996 Oscar-winning director of"The English Patient," who will receive the International Director Award. Richard Zanuck, an Oscar-witming producer who also produced the 2000 Academy Awards, will receive a Lifetime Achievement Award. Naomi Watts of"The Ring" and "21 Grams," will receive the Desert Palm Achievement Award and Scarlett Johansson of"Lost in Translation" and "Girl with a Pearl Earring" will receive The Rising Star 5/3/2004 Page 2 of 3 PJT'ard And the list goes on. The star-studded event, which traditionally generates a priceless amount of publicity for the community, could be off the chart this year in part because the festival coincides with the voting for the Academy Awards nominations. Adding to the excitement of the party will be the presence of a contingent of elite film critics. The red carpet will be unrolled this evening at Palm Springs High School for the opening-night Ellin, "Big Fish." The Golden Globe-nominated film is directed by Tim Burton. The next 11 days offer a lineup of about 200 figs, including numerous premiers. It will also feature question-and-answer sessions with filmmakers. It's no surprise people travel here from across the country to take it all in. Big names, big movies and big audiences are sure to grab many of the headlines in the coming days, but that's only part of the story. So richly deserving of the spotlight in all of this are Darryl Macdonald, executive director, and Kevin McGuire, chairman. Not to be overshadowed are Earl Greenbug, chairman-elect, who convinced Entertainment Tonight of the festival's worth; John Wessman, vice chairman; Sidney Craig, secretary; Harold Matzner,treasurer, and Carl Spence, director of programming. Equally deserving of credit are board members who have put in countless hours and cash out of their own pockets to make the festival a community accomplishment. Without all of them, the festival would not he the success it is. Not to be ignored is the city of Palm Springs and the enormous commitment it has made to this world- class, internationally recognized event. Without the city's financial support, especially in the early years, the festival might have failed long ago. Each year since 1991, the city has given the festival at least $150,000 and sometimes more. Also not to be overlooked is the city of Indian Wells. The City Council recently voted to become a $15,000 film-fest sponsor, making it the first city outside of Palm Springs to lend sponsorship support to this event. It is money well-spent. The festival generates a priceless amount of publicity for the community - and Coachella Valley. Of all the Palm Springs-sponsored promotional activities launched in recent years,the festival more than any other has shown it can attract the type of crowds - an estimated 75,000 to 90,000 this year - and generate the type of excitement that Palm Springs sorely needs. This festival indeed showcases Palm Springs at its finest. Enjoy the festival. Glance: Tickets The box office is at Camelot Theatres, 2300 E. Batiste Road, open from 10 a.m. to 6 p.m. General 5/;/2004 Page 3 of 3 a.iiiission tickets are $9 each. For more information, call (760) 778-8979. -----Original Message----- From: Cynthia Escarpita [mailto:cescarpita@hnmgroup.com] Sent: Monday, May 03, 2004 1:00 PM To: Uken, Cindy Subject: RE: Editorials Thank you Cindy, Can we have an email on the Jan. 8th Sorry to bother you. From: Uken, Cindy [mailto:CUKEN@palmspri.gannett.com] Sent: Monday, May 03, 2004 12:59 PM To: Cynthia Escarpita Subject: Editorials Harold: There isn't one after the Jan. 22. We did one on Jan. 8 and Jan. 22. We did the editorial on the Native American Film Festival, which you called me about But no other. Cindy 5/3/2004 Palm Springs International Film Festival .9� 41 .9`V ,9�' 41 .a5 .96 4A .95 ,99 pp 04 Oti Qq Q kayo kayo <ay�d ayc <ayJ kayoayO aye <a4 1<ey�� �aaCd 4ayo <3 Fay` DATES Jan 10-14 Jan 9-12 Jan 8-15 Jan 7-17 Jan 6-16 Jan 5-15 Jan 5-21 Jan 9-26 Jan 8-19 Jan 7-18 Jan 13-24 Jan 11-22 Jan 10-21 Jan 9-20 Jan 8-19 NUMBER OF DAYS Five Five Eight Eleven Eleven Eleven Seventeen Seventeen Twelve Twelve Twelve Twelve Twelve Thirteen Twelve NUMBER OF SCREENINGS 272 224 272 423 426 ATTENDANCE 17.500 22.500 30,000 39,000 42,000 42,000 45,000 48,000 48.000 51.000 54,600 51,000 64.500 77,000 92.000 TOTAL#OF FILMS' 53 80 81 89 96 100 150 133 100 162 184 139 156 203 204 WORLD PREMIERES 0 3 6 6 6 10 13 12 9 29 16 6 3 5 3 U S.PREMIERES 8 10 19 19 15 24 19 40 40 40 53 33 43 56 71 OSCAR SUBMISSIONS-FOREIGN FILM 6 7 15 14 8 14 10 19 12 25 31 34 42 45 53 OSCAR NOMINATIONS-FOREIGN FILM 3 5 3 1 1 4 3 4 4 4 5 5 5 4 LA.Is All Ab My Barbarian OSCAR WINNER-BEST FOREIGN FILM Ohara Paradiso Meditenaneo Indochina Belle Epoque Burnt by the Sun Antonias Line Character Beautiful Mother Crouching Tiger No Man's Land Invasions Anne Frank Long Way OTHER OSCAR WINNERS Rem'd Home 2 Life is All Ab My Barbarian GOLDEN GLOBE WINNER-BFLF (Not recorded prior to 1999) Beautiful Mother Crouching Tiger No Man's Land Invasions SHORTFEST OSCAR NOMINATIONS (ShorPest began the summer of 1995) 2 3 2 1 2 2 2 3 SHORTFEST OSCAR WINNERS (Camara aren't awarded unifil the fallowing March) A Close Shave Quest Visas and Vidue MMDTSD in Driers Set 1 SEMINARS 3 15 5 3 4 5 4 7 8 6 5 3 1 6 6 BOX OFFICE REVENUE $57.400 $70000 $11fi,000 $165,000 $205,000 $217,000 $250,000 $250,000 $250,000 $270.000 $313,200 $372,700 $461,700 $586,706 $636,000 Per Screen Revenue $7 551 $1,664 $1 697 $1,387 00 $1 492 95 Per Film Revenue $1,702 $2,681 $2,960 $2.890 $2,9B5.90 Revenue Per Attendee $6 $7 $7 $7.62 $6 91 HONOREES Charles A.Cram Desert Palm Award Lucile Ball Cyd Charese 8 James Stewart Frank Smartra Sophia Loren Tony Curtis Susan Sarand it Richard Dret S Stations John TravailA Banning Nicolas Cage Andy Garcia Lynn Radgrave Naomi Watts Ruby Keeler Ldetime Achievmert Award M Mastroianni Leslie Caron Lauren Baca M Animism Debbie Reynolds Sean Cannery Irwin Winkler Stephen Frears Kean Omaner Anthony International Fdmmaker's Award C Donau. LIv Ullman Alan Bates Stephen Daldry Minghella P Alai J Schlesinger Mira Nair Jim Sheridan Zhang YimoiAng Lee Jean P Jeunet Owen Rorzir L Hallstrom Scarlett Spotlight Award Joan Men Michael Apted Johannson Career Achievement in Clearing George Sidney Stanley Donen Norman Jew Kest Lemmons Milos Forma Ridley Scott Arthur Hdher Franco Zeffrelh Career Achievement in Producing Mace Neufeld Richard Zanuck Career Achievement in Cinematography Conrad Hall(posthumous) Frederick Loewe Achievement Award Henn Mancini Marvin Hamhscf Bill Conti Jerry Golden John Barry A&M Beigm,R Newman Hans Zimmer Michel Legend Danny Elfman Outstanding Achievement in Craft Award(Jean Louis Award as of 20031 Jean Louis Michael Kidd Sydney Gwlamff Colleen Atwood Sonny Bono Visionary Filmmaker Award-Indeed in 1999 Jack Valenti M Shyamalan Baz Luhrmann Christopher Nolan Sydney Sheldon Excellence in Film Distribution Award Cecchi Gon A DiLaurenh Sony P Classics Miramax New Line Cinema Landmark This Di Vinci Cinematographer's Award J Kaminski L Tovoh B Delhonnel Gemini Rail Dirk Bruel 0 PALM SPRINGS INTERNATIONAL FILM FESTIVAL o0p APRIL 1, 2003-MARCH 31,2004 PROFIT AND LOSS SUMMARY REPORT i' G L 'dif��r✓/ Income Apr'03-Mar 04 Budget 200412005 Cash Donations / Government Grants 360,000.00 350,000.00 J jp� 7 Corporate Sponsor 203,250.00 280,000.00 Foundation Grants 32,000.00 55,000.00 L� Friends/Annual Campaign 4,961.25 10,000.00 n Capital Improvement Contribution 12,919.76 0.00 General Contributions/MajorGifts 82,955.02 60,000.00 Consulates 2,000.00 12,000.00 Total—Cash Donations 688,086.03 767,000.00 Fund Raising Revenues Gala Awards Gala Awardsllndividual 40,200.00 45,000.00 Gala Misc.Income 5,000.00 10,000.00 VIP Gala Seating 14,000.00 20,000.00 Angel Tables 82,300.00 100.000.00 Star Table 280,000.00 280,000.00 Patron Table 15,000.00 21,000.00 Total Gala Awards 436,500.00 476,000.00 Box Office Sales 636,253.00 679,750.00 Merchandise Sales 10,496.47 12,500.00 Program Ad's/frog.Sales 15,855.00 26.000.00 Financial&Misc.Income 21,747.29 33,000.00 Short Film Fast Revenues Cash Donations 43,170.00 40,000.00 Box Office Sales 40,546.00 44,000.00 Festival Events 8,560,00 9,500.00 Merchandise Sales 2,522.80 3,000.00 Industry Revenue 61,380.00 70,000.00 156,178.80 166,500.00 TOTAL FESTIVAL CASH REVENUES 1,965,115.59 2,172,750.00 In-Kind Income 1,360,629.43 TOTAL REVENUE 3,325,745.02 Cost of Goods Sold Cost of Goods Sold 10,374.82 8,000.00 Cost of Merchandise Sold sf 1,704.07 1,750.00 Total COGS 12,078.89 9,750.00 Expense Cost of Production Theater Expenses 201,701.46 267,200.00 Delegates Expenses 39,785.18 48.000.00 Festival Events 87,992.47 93,750.00 Promotional Expenses 352,471.92 305,250.00 Cost of Sponsorship �088 600000 Fundmising Expenses 417 0.00Total Cost of Production 1 1,137,2 Wages Annual Staff 148,723.29 2i5o .00 Seasonal Staff 61,991.83 . Severance Pay 30,000.00 0.00 PALM SPRINGS INTERNATIONAL FILM FESTIVAL APRIL 1, 2003-MARCH 31,2004 PROFIT AND LOSS SUMMARY REPORT Income Apr'03-Mar 04 Budget 2004/2008 Festival Staff-Theater 28,110.93 46,000.00 258,826.05 397,050.00 Employee Benefits/Payroll Taxes 89,317.20 96,505.00 Total wages 3487143.25 492,555.00 Festival Staff/Contract Labor 176,083.41 191,600.00 Employee Recruitment 19,251.42 3,000.00 Staff Expenses 27,739.71 29,650.00 Office Supplies 35,092.84 37,200.00 Utilities 11,481.57 10,200.00 Telephone Expenses 23,102.26 22,000.00 Other Administrative Exps. 34,093.85 36,300.00 326,845.06 329,850.00 Total General&Administrative 674,988.31 822,405.0 Financial Expenses 39,527.57 37,325.00 Total Finance&other 39,527.57 37,325.00 Short Fest Expenses Cost of Production-sf Theater Expenses 9,305.75 29,500.00 Delegate Expenses 23,838.10 24,370.00 Festival Events 8,629.57 9,500.00 Promotional Expenses 43,520.49 41,550.00 Cost of Sponsorship 590.82 650.00 Fundmising Expenses 623.71 500.00 Total Cost of Productionsf 86,508.44 106,070.00 Gen&Administrative Expenses 61,625.84 58,950.00 Staff Expenses 55,698.01 20,000.00 Finance&Other 676.01 350.00 Total General/Staff Expense 117,999.86 79,300.00 Total Short Fast Expenses 149,264.95 165,870.00 TOTAL CASH EXPENSE 1,976,902.55 2,163,000.00 In-Kind Expenses Production Expenses 383,636.10 Promotional Expense 741,958.54 Sponsorship Expenses 1,200.00 General&Administrative 233,834.79 Total In-Kind Expenses 1,360,629.43 TOTAL EXPENSE 3,337,631.98 Net Income -23,865.85 0.00 'Please note that$43,008 in depreciation will be added to the year-end financials but does not affect the cash net t 9:64AM Palm Springs International Film Fest. W21104 Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2006 Income 4-Revenues 41 •Cash Donations _ 4101 •Government Grants 350,000.00 360,000.00 4102-Corporate Sponsor 203,250.00 280,000.00 4103•Foundation Grants 32,000.00 55,000.00 4104•Friends/Annual Campaign 4,961.25 10.000.00 _ 4106•Capital Improvement Contributio 12,919.76 0.00 _ 4107-General Contributions/Major Gif 82,955.02 60,000.00 4108-Consulates 2,000.00 12,000.00 4110•Restricted Contribution Total 41 •Cash Donations 688,086.03 767,000.00 42•Fund Raising Revenues V420- Awards Gala Awardsllndividual 40,200.00 45,000.00 •Gala Misc.Income 5,000m 10,000.00 VIP Gala Seating 14,000.00 20,000.00 Angel Tables 82,300.00 100,000.00 Star Table 280,000.00 280,000.00 Patron Table 15,000.00 21,000.00 Gala Awards 436,500.00 760,000.00 Total 42•Fund Raising Revenues 436,500.00 488,000.00 43-Box Office Sales 4302•Ticket Sales 43020•Six Pack 120,510.00 126,000.00 43021 •Tickets 82,536.00 87,650.00 43022-Matinee Tickets 87,021,00 94,000.00 _ 43023-Master Class/Panels 3,320.00 6,000.00 43024•Refunds/Cancellations -3,919.50 -2,000.00 43025•Gala Screenings 15,351.00 16,500.00 _ 43026•Gala Screening w/Reception 1,675.00 8,000.00 43027-PreFestival Events 430271 •Screenings 8,980.00 12,000.00 Total 43027•PreFestival Events 8,980.00 12,000.00 Total 4302•Ticket Sales 315,373.50 335,150.00 _ 4303•Passes 43031 •Platinum Pass 117,600.00 124,600.00 43032•Benefactor Pass 6,000.00 6,000.00 43035-Silver Pass A 12,250.00 14,000.00 43036-Silver Pass B 12,250.00 14,000.00 43039•Industry Accreditation 2,700.00 3,000.00 Total 4303•Passes 160,800.00 161,600.00 11 4304•Group Sales 96,914.50 107,500.00 4306•Gift Certificates Page 1 of 14 9:54AM Palm Springs International Film Fest. 04/21/04 Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2005 43061 •25.00 Gift Certificate 25.00 250.00 43062.50.00 Gift Certificate 200.00 250.00 Total 4306•Gift Certificates 225.00 500.00 4307•Special Film Screenings J4301 Oing-Film&Party 21,600.00 23,000.00 43072- osing Screening$30.00 9,870.00 12,000.00 430'73'21"os'ing• Gala$250.00 41,470.00 40,000,00 Total 4307•Special Film Screenings 72,940.00 76,000.00 Total 43•Box Office Sales 636,253.00 679,750.00 45•Merchandise Sales 4501 •Apparel Sales 8,562.80 10,000.00 4602•Poster Sales 2, 005.00 2,500.00 4503•Other Resale 18.72 4504•Discount -191.05 Total 45•Merchandise Sales 10,495.47 12,500.00 46•Sales Revenue 4601 •Program Ad Sales 11,200.00 20,000.00 4602•Program Sales 4,655.00 6,000.00 Total 46•Sales Revenue 15,855.00 28,000.00 _ 49-Financial&Misc.Income 4901 •Interest Income 569.22 1,000.00 4902•Film Submission Fees 9,275.00 10,000.00 4904•Memberships _ 49071 -Associate 6,000.00 490711 •Individual 200.00 490712•Dual 225.00 490713•Access 245.00 Total 49071 •Associate 670.00 6,000.00 49072•Partner 2,000.00 490721 •Individual 200.00 490722•Dual 150.00 Total 49072•Partner 350.00 2,000.00 49074•Director 5,000.00 490741 •Individual 1,000.00 490742•Dual 750.00 Total 49074•Director 1,750.00 5,000.00 49076•Chairman 2,000.00 490751 •Individual 1,000.00 Total 49075•Chairman 1,000.00 2,000.00 49076•Benefactor 4,000.00 490761 •Individual 2,500.00 Page 2 of 14 9'54AM Palm Springs International Film Fest. 04/21/04 Accrual Basis Profit & Loss April 2003 through March 2004 _ Apr'03-Mar 04 Budget 2004/2005 Total 49076•Benefactor 2,500.00 4,000.00 49099•Membership Discount -113.25 Total4904•Memberships 6,156.75 20,000.00 4909•Miscellaneous Income 6,746.32 2,000.00 Total 49•Financial&Misc.Income 21,747.29 33,000.00 Total •Revenues 1,808,936.79 2,006,250.00 8•Short Film Fast Revenues 81 -Cash Donations-sf _8102•Corporate Sponsors 12,510.00 20,000.00 8104-Major Gifts 30,660.00 20,000.00 Total 81 -Cash Donationssf 43,170.00 40,000.00 83•Box Office Sales-sf _ 8301 •Coupon Book Sales 7,965.00 8,500.00 8302•Ticket Sales 27,027.00 29,000.00 _8303•Pass Sales 3,600.00 4,000.00 8305-Rush Ticket 344.00 500.00 8306•Industry/Market Passes 1,610.00 2,000.00 Total 83-Box Office Sales-sf 40,546.00 44,000.00 84•Festival Events-sf _8401-Opening Night 7,790.00 8,500.00 8402•Awards Night 770.00 1,000.00 Total 84•Festival Eventssf 8,660.00 9,500.00 _ 85-Merchandise Sales-sf _8501 •Apparel Sales 2,450.00 2,500.00 8502•Poster Sales 166.00 500.00 8504-Discount -93.20 Total 85-Merchandise Sales-sf 2,522.80 3,000.00 86•Industry Revenuesf 8603•SS Film Submission Fees 61,380.00 70,000.00 Total 86•Industry Revenue-sf 61,380.00 70,000.00 Total 8•Short Film Fest Revenues 156,178.80 165,500.00 TOTAL FESTIVAL CASH INCOME 1,965,115.59 2,172,760.00 6•In-Kind Income 61 -Corporate Sponsors 1,098,145.10 62•Personal Sponsors 262,484.33 Page 3 of 14 9:64 AM Palm Springs International Film Fest. 04121/04 Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2005 Total 6•In-Kind Income 1,360,629.43 5303•Cost of Other Resale Items 10,374.82 8,000.00 Total 5000•Cost of Goods Sold 10,374.82 0,000.00 93•Cost of Merchandise Sold-sf 9301 •Cost of Apparel 1,205.05 1,250.00 9302•Cost of Posters 499.02 500.00 Total 93-Cost of Merchandise Sold-sf 1,704.07 1,750.00 Total COGS 12,078.89 9,750.00 TOTAL Expense 5-Total Expenses _ 51 •Cost of Production 5101 •Theater Expenses 510101•Theater Rent 35,400.00 92,500.00 510102-Projectionist 15,930.00 18,000.00 510103•Lights&Sound 4,940.00 2,500.00 _ 510106•Film Rental 11,050.00 13,000.00 _ 510107•Customs Broker 7,133.13 7,000.00 _ 510108•Film Traffic 45,061.56 35,000.00 _ 510109•Set Up Charges 11,122.47 11,000.00 510110•Theater Administrative _5101101 •Supplies 1,175.90 1,000.00 5101104•Printing/Ticket Stock 7,906.39 8,500.00 5101106•Storage 207.58 1,200.00 5101107•Communication Equipment 1,814.09 2,000.00 5101108•Other Equipment 10,851.58 10,500.00 _ 6101109•Miscellaneous 7,756.00 2,000.00 610110•Theater Administrative-Other 3,711.00 Total 610110•Theater Administrative 33,422.54 25,200.00 5101120•FIPRESCI 510"0' •Transportation 3,786.16 5,500.00 5101202•Hotel/per Diem 2,700.00 2,500.00 Total 6101120•FIPRESCI 6,486.16 8,000.00 _ 51029•Remote Ticketing 5102910•DSLIISDN 6,101.34 6,000.00 5102920•On-Site Support 21,808.00 25,000.00 8102930•Travel/Meals/Auto 3,246.25 4,000.00 Total 51029•Remote Ticketing 31,155.59 35,000.00 Total 5101 •Theater Expenses 201,701.45 267.200.00 510111 •Delegates Expenses 5101111 •Transportation 29,222.39 35,000.00 Page 4 of 14 9:64AM Palm Springs International Film Fast. 04/21/04 Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2006 _ 5101112•Hotel 6,049.17 7,500.00 5101113•Meal Reimbursement 911.02 1,500.00 6101114•Car Expenses 781.96 1,000.00 5101115•Entertainment 410.38 1,000.00 5101118•Guest Services 5101181 •Food/Beverage 260.00 300.00 6101182-Printing/Promo 1,067.38 500.00 5101183-Telephone/Fax 555.27 600.00 5101184.Other Equipment 64.26 100.00 6101186-Miscellaneous 463.35 500.00 Total 6101118-Guest Services 2,410.26 2,000.00 Total 510111 •Delegates Expenses 39,785.16 48,000.00 5102•Festival Events 5102011 •Food Beverage 39,504.39 40,000.00 5102013•Decorations 8,454.36 9,000.00 5102014•Entertainment M1,6015.03 12,000.00 ,000.00 6102016•Dedicated Contribution/Events0.00 5102017-Communications Equipment5102018-Other Equipment ,0 00.006102019•Printing/Promotion ,000.005102020-Awards ,000.006102021 •Lights&Sound ,000.00 6102022-Vallet/Service Staff/Mist. 16,577.58 7,000-00 6102023•Group Sales Expense 2,289.57 3,250.00 Total 5102-Festival Events 87,992.47 93,750.00 $103•Promotional Expenses 510302•Press Clipping Services 672.66 0.00 510303-Design 4,427.03 4,000.00 510304•Printing 15,188.67 11,500.00 510305•Media Buys 5103051 •Dedicated Contribution/Media Bu 0.00 510305•Media Buys-Other 133,824.00 125,000.00 Total 510305•Media Buys 133,824.00 125,000.00 510306•Materials/Banners 29,115.59 9,000.00 _ 510307-Postage 5,301.46 6,500.00 _510308-Film Trailer 5,808.28 4,000.00 610309-Writing Services 2,155.00 2,500.00 510310•Public Relations Agent 66,000.00 58,500.00 510311 •P/R Agent Expenses 9,427.54 6,000.00 510312-Courier/Delivery 757.17 1,000.00 510313•Photography 7,200.00 7,000.00 610314•Souvenir Program 5103143•Layout&Design 5,500.00 6,500.00 6103144•Printing 46,154.16 43,000.00 6103147•Postage/Catalogues 910.96 1,500.00 5103148•commissions 2,040.00 4,000.00 Page 5 of 14 9:64AM Palm Springs International Film Feet. 04/21/04 Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2006 Total 510314•Souvenir Program 54,605.12 65,000.00 510316•Meals/Entertainment 58.77 500.00 _ 510318-General Supplies 119.19 0.00 _ 510319-Car Expenses 498.12 750.00 _510320•Web Site Design 15,608.00 12,000.00 510321 •Internet Fees 834.94 1,000.00 510329•Dedicated ContributionlPromo 0.00 0.00 510399•Miscellaneous 870.38 1,000.00 Total 5103•Promotional Expenses 352,471.92 305,250.00 _ 5104•Cost of Sponsorship _ 51041 •Long Distance Travel 510419•Miscellaneous 569.12 Total 51041 •Long Distance Travel 569.12 6,000.00 510418•Sponsor Slides 3,019,36 51042•Local Travel 510421 •Transportation 344.33 510424•Ground Transportation 108.84 Total 51042-Local Travel 453.17 0.00 6104•Cost of Sponsorship-Other 1,587.50 0.00 Total 6104•Cost of Sponsorship 5,629.15 6,000.00 5105•Fundraising Expenses _ 51023•Pro-Screenings 6,800.76 7,000.00 510511 •Food/Beverage 137,278.86 140,000.00 510515•Production 221,555.71 220,000.00 610516•PrinttnglPromo _ 5105161 •Postage 2,388.86 3,000.00 510516•Printing/Promo-Other 15,990.67 16,000.00 Total 510516•Printing/Promo 18,379.53 19,000.00 510519•Transportation 16,789.34 10,000.00 510520•Hotel 5,661.96 30,000.00 510521 •Miscellaneous 14,716.4E 6,000.00 510522•Celebrity party 16,906.00 12,000.00 510599•Dedicated Contribution/Fundrais om Total 6105•Fundraising Expenses 438,088.64 417,000.00 Total 51 •Cost of Production 1,125,668.81 1,137,200.00 Total 5•Total Expenses 1,125,668.81 1,137,200.00 52•General&Administrative 5201 •Payroll 52011 •Wages 520111 •Annual Staff 5201111 •Executive Director 68,499.92 127,000,00 Page 6 of 14 9:54 AM Palm Springs International Film Fest. 04/21/04 Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2006 5201112-Managing Director 51,666.60 62,000.00 5201113•Exec.Assistant 12,746.25 2B,800.00 _ 5201114•Receptionist 8,978.02 22,000.00 _ 5201115•Sponsorship Manager 3,500.00 42.000.00 5201116•Marketing Coordinator 3,332.50 12,000.00 Total 620111 •Annual Staff 148,723.29 293,800.00 520112•Seasonal Staff-FF 5201120•Volunteer Director 9,642.64 9,000.00 _ 6201121 •Film Data Mangr. _ 12,131.19 10,000.00 _ 5201122•Print Traffic Coordinator 5,040.00 6,260.00 5201123-Traffic Assistant 3,500m 3,500.00 5201124•Publicity Coordinator 7,050.00 12,000.00 5201125•Travel Coord. 3,728.00 3,500.00 _ 5201126•Asst.Volunteer Director 2,000.00 3,000.00 5201127•Group Sales/Hotel Liason 8,000.00 10,000.00 Total 520112-Seasonal Staff-FF 51,991.83 57,250.00 5201129-Severance Pay 5201130-Dedicated Contribution/Severanc 0.00 5201129•Severance Pay-Other 30,000.00 Total 5201129•Severance Pay 30,000.00 520113•Festival Staff-Theater-FF 5201131-Transporter 3,333.30 4,000.00 5201132•Tmsp.Assistant 740.00 1,500.00 5201133•Box Office Supervisor 4,500.00 5,000.00 5201134•Box Office Assistant 2,500.00 3,600.00 5201136•Camelot Mgr. 1,800.00 2,500.00 __ 6201137-PSHS Mgr. 1,500m 1,500.00 5201138•Annenberg Mgr. 2,000.00 2,000.00 5201139•Courtyard Mgrs. 5,000.00 8,000.00 5201140•Box Office Staff 4,216.07 12,000.00 5201141 •Technical Advisor 2,521.56 4,000,00 Total 620113•Festival Staff-Theater-FF 28,110.93 46,000.00 Total 62011 •Wages 258,826.05 397,050.00 52012-Employee Benefits 520121 •Medical Insurance 12,839.11 16,000.00 520123•NY Life Annuity 400.00 520125•Life Insurance 609.91 520126•Disability Insurance 991.16 52029•Dedicated Cont./Benefits -628.15 Total 52012•Employee Benefits 14,212.03 16,000.00 52013•Payroll Taxes 520131 •FICA-Employer 17,783.76 21,000.00 520132•Dedicated Cont./Payroll Taxes 0.00 0.00 520133•SUIIETT Taxes 7,744.10 12,335.00 Page 7 of 14 9'54AM Palm Springs International Film Fest. 04121/04 Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2005 520134-Workman's Comp Insurance 6,936.62 9,040.00 520137-Other Payroll Taxes 538.12 520139-Medi-Employer 4,159.15 5,130.00 Total 62013-Payroll Taxes 37,161.75 47,505.00 5211831 -Auto Allowance 2,517.14 3,000.00 5211832-Staff Housing 32,760.00 25,000.00 5211833-Cell Phone Allowance 2,100.00 3,000.00 5211834-Utility Reimb. 566.28 1,000.00 Total 5201 -Payroll 348,143.26 492,555.00 _520119-Festival Staff/Contract Labor 5201901 -Accounting 29,040.00 29,000.00 _ 5201902-Programmers 70,500.00 75,000.00 5201904-Special Events Cord. 9,000.00 9,000.00 _ 5201906-Grant Writer 1,100.00 2,000.00 5201907-Guest Services Manager/Assistan 10,500-00 6,000.00 5201908-Dir.Corp.Mktg 17,700.00 10,500.00 5201909-Programming Coordinator 12,000.00 13,500.00 5201910-Publication Editor 5,000m 6,000.00 5201911 -Programming Assistant 1,500.00 3,000.00 5201912-Creative Services Coordinator 6,000.00 8,000.00 5201913-Travel Director 4,200.00 5,000-00 6201914•Ground Transportation 2,500.00 2,500.00 _ 5201915-Events Assistant 3,000.00 3,000.00 5201916-Frnt Dest Temp/Gala Support 2,043.41 4,000.00 5201917-Theater Managment/Staff 2,000.00 2,000.00 Marketing Manager 14,000.00 Total 520119-Festival Staff/Contract Labor 176,083.41 191,500.00 52014-Employee Recruitment _ 520146-Advertisements 12,317.92 1,500.00 5201461 -Dedicated Contribution/Recruitm 0.00 520148-Relocation Expenses 6,872.50 1,500.00 52014.Employee Recruitment-Other 61.00 Total 52014-Employee Recruitment 19,251.42 3,000.00 5202-Staff Expenses 520210-Volunteer Party 8,601.74 520211 -Transportation 6,852.43 6,500.00 520212-Hotel 5,373.55 11,500.00 520213-Meals Reimbursement 2,660.22 6,000.00 520214.Ground Transportation 2,066.78 3,000.00 520215•Entertainment Expense 339.48 500.00 520216-Registration/Tuition 1,500.10 2,000.00 _ 520217-Telephone/Fax 126.92 150.00 520218-Misc.Expenses 228.49 1.000.00 Total 5202•Staff Expenses 27,739.71 29,650.00 5203.Office Supplies Page 8 of 14 9:54AM Palm Springs International Film Pest. 04121104 Accrual Basis Profit & Loss A April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2006 52031 •General Supplies 6,211.87 7,000.00 52032•Computer/Copier Supplies 5,364.67 5,000.00 _62033•Postage 3,573.03 4,500.00 52034•Courier/Delivery 1,545.24 1,500.00 52035.Office Printing 7,684.19 8,000.00 52036•Office Equipment 3,600.97 4,000.00 62037•Kitchen Supplies 1,053.29 1,200.00 52038•Janitorial/Maint. 5,116.24 5,000.00 62039•Miscellaneous 948.34 1,000.00 52040•Postage Reimb.Office -5.00 Total 5203•Office Supplies 35,092.84 37,200.00 5204•Utilities 52041 •Electricity 10,568.23 9,000.00 62042•Gas 427.29 400.00 52043-Cable 486.05 800.00 Total 5204•Utilities 11,481.57 10,200.00 5205•Telephone Expenses _ 52061 •Basic Line Charges 13,013.70 12,500.00 52052•800 Number 174.97 500.00 _ 52053•Long Distance-Sprint 2,241.12 3,000.00 52054•Cellular Phone 6,734.97 5,000.00 52055•Installations/Repairs 937.50 1,000.00 Total 5205•Telephone Expenses 23,102.26 22,000.00 5206•Other Administrative Exps. 52061 •Business Insurance 5,925.61 7,000.00 52062•Insurance,Key Emp. 927.07 52063•Licenses/Permits 179.00 300.00 _ 82064•Contrib/Donations 500.00 500.00 52065•Dues&Subscriptions 2,099.34 2,400.00 52066•Office Equipment Lease 7,452.81 8,500.00 52067•Rent/Triple Net 10,811.71 11,100.00 52068•Security/Alarm 450.00 500.00 1,0 52069•EducationlTraining 359.00 00.00 52071 •Internet Fees 768.70 52072•Computer Consulting 2,780.00 3,000.00 52073•Board Expenses 1,850.61 2,000.00 62999•Reimbursed Expenses -10.00 Total 6206•Other Administrative Exps. 34,093.85 36,300.00 Total 52•General&Administrative 674,988.31 822,405.00 59•Finance&Other 5901 •Taxes 590102•State Taxes 10.00 26,00 590104•Property Tax 2,422.01 2,500.00 Total 5901 •Taxes 2,432.01 2,625.00 Page 9 of 14 9'54AM Palm Springs International Film Fest. 04121/04 Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2005 5902•Financial Expenses 590201 •Credit Card Charges 20,011.51 14,500.00 590202•Interest Expense 4,325.02 2,500.00 590203•Bank Service Charges 3,588.26 4,000.00 _ 590204•Cash Over/Short 387.49 1,000.00 _ 590205•NSF Checks/Charge Backs 180.00 _ 590209•Misc.Financial Expenses 50.00 690211 •Fees 582.33 500.00 590212•Loss on Sale of Stock 227.87 Total 5902-Financial Expenses 29,352,48 22,500.00 5904•Accounting Audit 7,500.00 7,500.00 5905-Legal 59051 •Attorney Fees 2,675.09 5,000.00 Total 5905•Legal 2,67&09 5,000.00 5999•Suspense -14,979.10 Total 59•Finance&Other 26,980.48 37,625.00 7•In-Kind Expenses 71 •Production Expenses 7101 •Theater Expenses 90,612.00 7102•Production Administrative 1,500.00 7103•Delegate Expenses 83,991.30 7104•Festival Events 207,532.80 Total 71 •Production Expenses 383,636.10 72•Promotional Expense 741,958.54 73•Sponsorship Expenses 7301 •Sponsorship Admin. 1,200.00 Total 73•Sponsorship Expenses 1,200.00 74•General&Administrative 7401 •Labor 126,937.00 7403•Supplies 280.00 7404•Rent 93,060.00 7406•Information Processing 6,750.00 7407•Legal-Attomey Fees 840.00 Total 74•General&Administrative 227,867.00 Page 10 of 14 9:64AM Palm Springs International Film Fest. 04/21/04 Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2005 75•Miscellaneous 5,967.79 Total 7•In-Kind Expenses 1,360,629.43 9•Short Fast Expenses 91•Cost of Production-sf 9101 •Theater Expenses-sf Theater Rent _ 20,000.00 _ 910107•Customs Broker 273.00 50000 910108-Film Traffic 7,080.52 7,000.00 910110•Theater Administrative 9101104•Printing 996.03 1,000.00 9101106•Dedicated Cant Theater Admin 0.00 9101107•Telephone/Fax 956.20 10,000.00 Total 910110-Theater Administrative 1,952.23 2,000.00 Total 9101 •Theater Expenses-sf 9,305.75 29,500.00 _ 910111 •Delegate Expenses-sf 9101113•Per Diems/Meals 1,250.00 1,250.00 9101114•Car Expenses 437.50 1,000.00 9101116•Prize Monies/Regular 14,000.00 14,000.00 9101119•Miscellaneous 582.95 1,000m 9101121 •Guest Services 910121 •Food/Beverage 513.91 500.00 910122•Telephone/Fax 116.95 120.00 910124.Other Equipment 5,100.00 6,000.00 910125•Miscellaneous 1,836.79 500.00 Total 9101121 •Guest Services 7,567.65 7,120.00 Total 910111 •Delegate Expenses-sf 23,838.10 24,370.00 9102•Festival Events-sf 9102011 •Food 7,093.09 8,000.00 _ 9102012•Beverage 994.23 1,000.00 9102019•Miscellaneous 542.25 500.00 Total 9102•Festival Events-sf 8,629.57 9,500.00 9103-Promotional Expenses-sf 910303•Design 2,132.60 2,000.00 _ 910304•Printing 4,186.70 4,000.00 910305•Advertising Buys 21,674.49 20,000.00 910306•Publicist/Press 9,000.00 9,000.00 910308•Film Trailer 1,645.00 2,000.00 910312•CourierlDelivery 262.87 300.00 90313•Photography 1,300.00 1,500.00 910316•Meals/Entertainment 250.00 250.00 910320•Postage 1,932.43 2,000.00 910321 •Website Hosting 300.00 910322•Dedicated Contribution Promo Ex 0.00 Page 11 of 14 9'54 AM Palm Springs International Film Fest. 04/21/04 Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2006 910399•Miscellaneous 836.40 500.00 Total 9103•Promotional Expenses-sf 43,520.49 41,550.00 9104•Cost of Sponsorship-sf 91041 •Sponsor Travel-sf 910419•Miscellaneous 105.93 Total 91041 •Sponsor Travel-sf 105.93 91043•Sponsor Administrative sf 910432•Postage 67.96 150.00 910434•Printing 416.93 500.00 Total 91043•Sponsor Administrative-sf 484.89 650.00 Total 9104•Cost of Sponsorship-sf 590.82 650.00 9105•Fundraising Expenses 623.71 500.00 Total 91 EL duction-sf 86,508.44 106,070.00 _ 92•Gen tive Expenses-s 9201 s-sfccreditation1,000.00 Film Data Manager 10,783.28 8,000.00 920114•Box Office Staff 1,500.00 3,000.00 920115•Volunteer Director 5,356.94 4,000.00 920116-Theater Manager 1,000.00 1,000.00 920117•Film Traffic 4,000.00 4,000.00 920118•Receptionist 2,603.13 920119•Sponsor Commission 4,000.00 2,000.00 Total 92011 •Wages-sf 29,243.35 23,000.00 92012•Subcontractor Payments-sf 920121 •Programmers 22,000.00 20,000.00 920124•Hospitality Coordinator 1,500.00 2,000.00 _ 920125•Panel/Jury Coordinator 2,500.00 2,500.00 Film Market Coordinator 1,500.00 Marketing Manager 4,000.00 Total 92012•Subcontractor Payments-sf 26,000.00 30,000.00 920120•Dedicated Cont./Wages 0.00 Total 9201 •Payroll-sf 55,243.35 53,000.00 94•Remote Ticketing-sf _94010•ISDNIOSL Lines 913.61 500.00 94015•ISP Internet Service Provider 249.90 250.00 94025•System Support 940251 •Travel/Per Diem System Support 1,138.79 1,200.00 94026•System Support-Other 4,080.19 4,000.00 Total 94025•System Support 5,218.98 5,200.00 Page 12 of 14 9:64AM Palm Springs International Film Fest. 04121104 ' Accrual Basis Profit & Loss April 2003 through March 2004 Apr'03-Mar 04 Budget 2004/2005 Total 94.Remote Ticketing-sf 6,382.49 5,950.00 Total 92-Gen&Administrative Expensess 61,625.84 68,950.00 95•Staff Expensessf 95010•Volunteer Party 454.66 500.00 Total 95•Staff Expenses-sf 454.66 500.00 _99•Finance&Othersf 9902-Financial Expenses-sf _ 990201 •Credit Card Charges 294.41 300.00 _ 990203•Bank Service Charges 26.00 50.00 990204•Cash ShortlOver 140.60 Total 9902•Financial Expenses-sf 461.01 350.00 990205•NSF-CheckslChargebacks 215.00 Total 99-Finance&Othersf 676.01 350.00 Total 9•Short Fast Expenses 149,264.95 165,870.00 TOTAL CASH EXPENSE 1,976,902.65 2,163,000.00 7•In-Kind Expenses 71 -Production Expenses 7101 •Theater Expenses 90,612.00 7102-Production Administrative 1,500.00 _ 7103•Delegate Expenses 83,991.30 7104•Festival Events 207,532.80 _ Total 71 •Production Expenses 383,636.10 72-Promotional Expense 741,958.54 73•Sponsorship Expenses 7301 •Sponsorship Admin. 1,200.00 Total 73-Sponsorship Expenses 1,200.00 74•General&Administrative 7401 -Labor 126,937.00 7403-Supplies 280.00 7404•Rent 93,060.00 7406-Information Processing 6,750.00 7407•Legal-Attomey Fees 840.00 Total 74•General&Administrative 227,867.00 75-Miscellaneous 5,967.79 Total 7-In-Kind Expenses 1,360,629.43 Total Expense 3,337,531.98 Net Income -23,865.85 0.00 Page 13 of 13 MINUTE ORDER NO. APPROVING THE FOURTH AMENDMENT TO THE AGREEMENT FOR OPERATIONS OF THE PALM SPRINGS INTERNATIONAL FILM FESTIVAL FOR THE PURPOSE OF EXTENDING THE TERM OF THAT AGREEMENT FOR ONE (1) YEAR. --------------- I HEREBY CERTIFY that this Minute Order, approving the Fourth Amendment to the Agreement for operations of the Palm Springs International Film Festival for the purpose of extending the term of that agreement for one (1) year was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 7th day of April, 2004. PATRICIA A. SANDERS City Clerk 3