WRCF Minutes 2015-06-29MINUTES OF SPECIAL MEETING OF THE BOARD OF DIRECTORS OF
THE WILMINGTON REGIONAL FILM COMMISSION, INC.
A North Carolina Non -Profit Corporation
Board of Directors of the Wilmington Regional Film Commission, Inc. (WRFC) held a
special meeting on June 29th, at 8:30 a.m. Chairman Hon. Beth Dawson, Hon. Bill Saffo, Ms.
Carey Jones, Mr. Jimmy Smith, and Mr. William Vassar were present. In addition Johnny
Griffin and Karin LeMaire were also present.
1. APPROVAL OF MINUTES FROM REGULARLY SCHEDULED MEETING
ON JANUARY 13TH, 2015. The minutes from the Board Meeting on January 13 "', 2015, a copy
of which is attached as EXHIBIT A, were unanimously approved.
2. DISCUSSION OF CHANGE TO CITY CONTRACT. Director Johnny Griffin
outlined a change in the contract with the City of Wilmington, included as Exhibit "B ". This is
not a change specific to the Commission and is a change in length of contract being made on all
City contracts going forward. The City "would like to emphasize that the relationship with the
WRFC has been exemplary:'
3. APPROVAL OF BUDGET FOR FY 2015 -2016. Revisions were made to a
previously considered 2015 -2016 budget per the instructions of the Board, a copy of which
is attached as EXHIBIT "C ". After discussion and review, the 2015 -2016 WRFC budget was
unanimously approved.
4. APPROVAL OF LETTER OF ENGAGEMENT FROM AUDITOR KEMMY
GOODSON. A motion to approve Letter of Engagement to audit FY 14-15 financial statements,
a copy of which is attached as EXHIBIT "D ", was unanimously approved.
5. OLD BUSINESS. A general discussion on the film grant, the legislative session, and
the state of TV and film business in NC was held.
6. NEW BUSINESS. No new business was proposed.
There being no further business, the meeting was adjourned at 9:35 a.m.
Respectfully submitted,
Hon. Beth Dawson, Chairman
p
WILMINGTON
REGIONAL FILM COMMISSION, INC.
1223 NORTH 23rd STREET • WILMINGTON, NC 28405
www.wilmington•film.com • commish ®wilmington- film.com
Attachment "A"
Member of
i ASSOCIATION OF
FILM COMMISSIONERS
INTERNATIONAL
BOARD OF DIRECTORS
Honorable Belh Dawson, Chairman
Honorable Bill SaHo, Vice-Chairman
Carey Jones
James LF. Smilh
William Vassar
MINUTES OF REGULARLY SCHEDULED MEETING OF
THE BOARD OF DIRECTORS OF
THE WILMINGTON REGIONAL FILM COMMISSION, INC.
A North Carolina Non -Profit Corporation
Board of Directors of the Wilmington Regional Film Commission, Inc. (WRFC)
held a regularly scheduled meeting at 8:30 AM on January 13t. Chairman William
Vassar, Vice Chairperson Ms. Carey Jones, Hon. Beth Dawson, Hon. Bill Saffo and Mr.
Jimmy Smith were present. In addition Johnny Griffin and Karin LeMaire were also
present.
1. APPROVAL OF MINUTES FROM REGULARLY SCHEDULED OCTOBER
14TH, 2014 MEETING. The minutes from the Board meeting on October 14t, 2014,
a copy of which is attached as EXHIBIT A, were unanimously approved.
2. INTRODUCTION OF BETH DAWSON AS THE NEW HANOVER COUNTY
COMMISSIONER MEMBER REPRESENTATIVE TO THE WRFC BOARD OF
DIRECTORS. Honorable Beth Dawson has been reappointed as the New Hanover
County representative to the Board.
3. SELECTION OF AT LARGE MEMBER OF THE WRFC BOARD OF
DIRECTORS. Vassar, Saffo, Dawson, and Jones voted unanimously to select James L.
F. Smith for the At-Large Board position. Jimmy abstained from voting.
4. ELECTION OF OFFICERS FOR 2015. Honorable Beth Dawson was
unanimously elected as the Chairman. Honorable BiII Saffo was unanimously elected
as the Vice- Chairman. Johnny Griffin was unanimously reelected as
Secretary /Treasurer.
5. PRODUCTION UPDATE. 2014 was a banner year for film and TV
production in the SE region. We estimate finishing at around $170 million for local
spending. We finished strong in the 4th quarter - a traditionally quiet quarter. We
had 2 feature films, 2 TV series, and 2 smaller projects to finish out the year. For 1st
quarter 2015 we currently still have Sleepy Hollow season 2 and Bolden filming.
Inquiries and leads are significantly down due to uncertainty regarding the stability
of the NC Film incentives.
6. DISCUSSION ON FILM GRANT IMPLEMENTATION. The new grant guidelines
were posted and a 20 day public review period culminating in a public hearing on
January 131". By January 26th the grant process should be complete and the state will
start taking applications for the grant. Johnny will attend the public hearing in
Raleigh later today.
7. DISCUSSION OF PROCESS FOR IMPROVEMENTS TO THE FILM GRANT. Johnny
and others have submitted notes, comments, clarifications, and suggestions. We
would like to see the grant fully funded, clean up some language to clarify
requirements and expectations, and add real life to the program by extending or
eliminating a sunset date.
8. )ENTER INTO CLOSED SESSION FOR THE PURPOSE OF CONSIDERING A
PERSONNEL MATTER. Discussion was held among the Board.
9. UPON COMPLETION OF THE CLOSED SESSION THE BOARD RETURNED TO
OPEN MEETING. As a result of the closed session no action was taken.
10. NEW BUSINESS:
A. The City Of Wilmington And New Hanover County passed a Resolution in
Support Of Film. The Board thanks both the City and the County.
B. Chairman Beth Dawson has asked Board members to review the bylaws
and provide feedback regarding any changes needed.
There being no further business, the meeting was adjourned at 10:20 AM.
Respectfully submitted,
Honorable Beth Dawson, Chairperson
WILMINGTON
i REGIONAL FILM COMMISSION, INC.
' 1223 NORTH 23rd STREET • WILMINGTON, NC 28405
www.wilminglon-film.com • commish@wilmington-film.com
Attachment "B"
Member of
aftoASSOCIATION OF
FILM COMMISSIONERS
INTERNATIONAL
BOARD OF DIRECTORS
Honorable Belh Dawson, Chairman
Honorable Bill Soffo, Vice - Chairman
Carey Jones
James L.F. SmBh
Williom Vassar
May 20, 2015
Johnny Griffin
1223 N. 23rd Street
Wilmington, NC 28405
Y v �"
Dear Mr. G 'Kn.
This letter is notification, pursuant to paragraph 4 in the City's contract with the Wilmington
Regional Film Commission (WRFC), which the City of Wilmington is letting the current
contract expire. The timing and purpose of this letter is intended to meet the 12 month prior
notification of non - renewal in the contract.
The City of Wilmington staff has a desire to continue a relationship the WRFC as an economic
development colleague. The City established a Civic Development Partnership process 2 years
ago with the intent of transitioning contracts with economic development agencies to a
standardized format with synchronized expiration dates.
The City would like to emphasize that the relationship with the WRFC has been exemplary. We
expect to continue with an economically productive and meaningful relationship moving
forward. Contingent upon City Council approval, the WRFC should expect similar and
continued funding in fiscal year 2016, albeit governed by a more contemporary and standardized
performance agreement.
It is my understanding that you earlier discussed this state of affairs with staff and understand the
City's intent. Should you have questions or concerns, please don't hesitate to contact me at your
convenience.
Sincerely,
XJ
Sterli g Cheatham
CC: City Council
Tony Caudle
Roger Johnson
Bill Wolak
C:fTI
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City Manager's Office
102 North Third Street
PO Box 1810
Wilmington, NC 28402 -1810
910 342 -2786
910 341.5839 fax
wilmingtonnc.gov
Dial 711 TTYNoice
May 20, 2015
Johnny Griffin
1223 N. 23rd Street
Wilmington, NC 28405
Y v �"
Dear Mr. G 'Kn.
This letter is notification, pursuant to paragraph 4 in the City's contract with the Wilmington
Regional Film Commission (WRFC), which the City of Wilmington is letting the current
contract expire. The timing and purpose of this letter is intended to meet the 12 month prior
notification of non - renewal in the contract.
The City of Wilmington staff has a desire to continue a relationship the WRFC as an economic
development colleague. The City established a Civic Development Partnership process 2 years
ago with the intent of transitioning contracts with economic development agencies to a
standardized format with synchronized expiration dates.
The City would like to emphasize that the relationship with the WRFC has been exemplary. We
expect to continue with an economically productive and meaningful relationship moving
forward. Contingent upon City Council approval, the WRFC should expect similar and
continued funding in fiscal year 2016, albeit governed by a more contemporary and standardized
performance agreement.
It is my understanding that you earlier discussed this state of affairs with staff and understand the
City's intent. Should you have questions or concerns, please don't hesitate to contact me at your
convenience.
Sincerely,
XJ
Sterli g Cheatham
CC: City Council
Tony Caudle
Roger Johnson
Bill Wolak
WILMINGTON
REGIONAL FILM COMMISSION, INC.
1223 NORTH 23rd STREET • WILMINGTON, NC 28405
www.wilmingion•film.com • eommish@wilmington•film.com
Attachment "C"
Member of
a f ."""
di ASSOCIATION OF
FILM COMMISSIONERS
INTERNATIONAL
BOARD OF DIRECTORS
Honorable Beth Dawson, Chairman
Honorable Bill Saffo, ViceChairnon
Carey Jones
James L.F. Smith
William Vassar
6121159:31 AM Wilmington Regional Film Commission, Inc.
Proposed Budget for 2015 - 2016
Jul '15 - Jun '16
Income
4010 - City of Wilmington 119,500.00
4011 • New Hanover County 119,190.00
4023 - New Hanover County Marketing 25,000.00
4012 - Memberships 65,000.00
4016 • Interest Income 50.00
Reserve 0.00
Total Income 328,740.00
Expense
5010 • Salaries
135,562.00
5011 • Payroll Taxes
, 12,201.00
5012 - Car Rental Expense
4,500.00
5013 - Retirement
13,556.00
5014 • Insurance - Employee
18,750.00
5015 • Insurance -Workman's Comp
1,100.00
6016 - Insurance -Auto
1,500.00
5017 - Insurance - Liability
1,900.00
5021 • Membership Drive
8,000.00
6022 - Communications /Postage
1,500.00
5023 - PromotionlTravel /Conference
8,903.00
5024 • Copier Rental
2,500.00
5025. On -line services
1,500.00
5028 - Equipment
500.00
6029. Office Supplies
1,300.00
5031 - Rent
15,468.00
6032 • Marketing
40,000.00
6033 • Property Insurance
900.00
6034 • Location Scouting
3,000.00
6035 • Policy Board
3,000.00
6036 . Accounting
4,000.00
6037 . Bank Fees
100.00
5039 - Income Taxes
0.00
5043 - Reel -Scout Lease
14,000.00
6048 - Consulting Services
25,000.00
5050 • Contingency
10,000.00
Reserve
0.00
Total Expense
328,740.00
Page 1 of 1
WILMINGTON
REGIONAL FILM COMMISSION, INC.
1223 NORTH 23rd STREET • WILMINGTON, NC 28405
www.wilmington-Pilm.com • commish @wilmington•film.eom
Attachment "D"
Member of
n ASSOCIATION OF
aft FILM COMMISSIONERS
INTERNATIONAL
BOARD OF DIRECTORS
Honorable Beth Dawson, Chairman
Honorable Bill Salle, Vice-Chairman
CoroyJones
James L.F. Sm1h
William Vassar
Goodson & Taylor CFAs
Clement Goodson, CPA
Lynn Taylor, CPA
May 28, 2015
Mr. Johnny Griffin
Wilmington Regional Film Commission
1223 North 23rd Street
Wilmington, NC 28405
Dear Mr. Griffin:
'.. _
—.11-1-I
� .r_. "s -
We are pleased to confirm our Understanding of the services we will be providing for the
Wilmington Regional Film Commission, for the year ended June 30, 2015.
771 S. Kerr Ave.
Wilmington, NC 28403
Voice 910.392.4850
Fax 910.392.3240
We will audit the statement of financial position of Wilmington Regional Fihn Commission, as of
June 30, 2015, and the related statements of activities, functional expenses, and cash flows for the
year then ended.
The objective of our audit is the expression of an opinion about whether your financial statements
are fairly presented, in all material respects, in conformity with U.S, generally accepted accounting
principles and to report on the fairness of the additional information referred to in the first paragraph
when considered in relation to the financial statements taken as a whole.
We will conduct our audit in accordance with U.S. generally accepted auditing standards and will
include tests of the accounting records of Wilmington Regional Film Commission and other
procedures we consider necessary to enable us to express an opinion that the financial statements are
fairly presented, in all material respects, in conformity with U.S. generally accepted accounting
principles. If our opinion is other than unqualified, we will fully discuss the reasons with you in
advance. It for any reason, we are unable to complete the audit engagement, we will not issue a
report as a result of this engagement.
As part of our audit, we will obtain an understanding of the organization's internal control to plan
the audit and to determine the nature, timing, and extent of auditing procedures necessary for
expressing our opinion concerning the financial 'statements. Our audit is not designed to provide
assurance on internal control or to identify reportable conditions. However, we will inform the Board
or the Audit Committee of any matters involving internal control and its operation that we consider
reportable conditions under standards established by the American institute of Certified Public
Accountants. The management of Wilmington Regional Film Commission is responsible for
establishing and maintaining effective internal control over financial reporting. In fulfilling this
responsibility, estimates and judgments by the management are required to assess the expected
benefits and related costs of internal control policies and procedures. The objectives of internal
control are to provide management with reasonable, but not absolute, assurances that assets are
safeguarded against loss from unauthorized use or disposition, that transactions are executed in
accordance with management's authorizations and recorded properly to permit the preparation of
financial statements in accordance with U.S. generally accepted accounting principles.
Management's responsibility includes the establishment and maintenance of adequate records and
effective internal controls over financial reporting and compliance, the selection and application of
accounting principles, and the safeguarding of assets. Management is responsible for adjusting the
financial statements to correct material misstatements and for confirming to us in the management
representation letter that the effects of any uncorrected misstatements aggregated by us during the
current engagement and pertaining to the latest period presented are immaterial, both individually
and in the aggregate, to the financial statements taken as a whole.
We understand that you will provide us with the basic information required for our audit and that
you are responsible for the accuracy and completeness of that information. We will advise you about
appropriate accounting principles and their application and will assist in the preparation of your
financial statements, but the responsibility for the financial statements remains with you. This
responsibility includes maintaining adequate records and related internal control policies and
procedures, selecting and applying accounting principles, accepting actuarial methods and
assumptions used by the actuary, and safeguarding assets. Management is also responsible for
identifying and ensuring the organization complies with applicable laws and regulations.
As part of our engagement, we may also propose standard, adjusting, or correcting journal entries to
your financial statements. Management, however, has final responsibility for reviewing the proposed
entries and understanding the nature and impact of the proposed entries to the financial statements. It
is our understanding that management has designated qualified individuals with the necessary
expertise to be responsible and accountable for overseeing the services performed as part of this
engagement.
Our procedure will include tests of documentary evidence supporting the transactions recorded in the
accounts, may include tests of the physical existence of inventories, and will include direct
confirmation of receivables and certain other assets and liabilities by correspondence with selected
finding sources, creditors, and financial institutions. We will request written representations from
your attorneys as part of the engagement, and they may bill you for responding to the inquiry. At the
conclusion of our audit, we will also request certain written representation from you about the
financial statements and related matters.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to
be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether from
errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or
governmental regulations that are attributable to Wilmington Regional Film Commission or to acts
by management or employees acting on behalf of Wilmington Regional Film Commission.
However, because of the concept of reasonable assurance and because we will not perform a detailed
examination of all transactions, there is a risk that material errors, irregularities, or illegal acts,
including fraud or defalcations, may exist and not be detected by us. In addition, an audit is not
designed to detect immaterial misstatements or violations of laws or governmental regulations that
do not have a direct and material effect on the financial statements_ We will inform you, however, of
any matters of that nature of which we become aware during our engagement.
Our responsibility as auditors, is limited to the period covered by our audit and does not extend to
matters that might arise during any later periods for which we are not engaged as auditors.
We expect to begin our audit on any time after that would be convenient for you after July 20, 2015
and to issue our report no later than September 15, 2015.
Our fee for these services will be at our standard hourly rates plus out -of- pocket costs (such as report
reproduction, typing, postage, copies, or telephone calls), except that we agree that our gross fee,
including expenses, will not exceed $1,100-00. Our invoices for these fees will be due upon
completion and are payable on presentation. In accordance with our firm policies, work may be
suspended if your account becomes 30 days or more overdue and may not be resumed until your
account is paid in full. The above fee is based on anticipated cooperation from your personnel and
the assumption that unexpected circumstances will not be encountered during the audit. If significant
additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we
incur the additional costs. In addition, Clement Goodson will be your contact person and the primary
person who will perform the audit.
We appreciate the opportunity to be of service to Wilmington Regional Film Commission and
believe this letter accurately Summarizes the significant terms of our engagement. If you have any
questions, please let us know. If you agree with the terms of our engagement as described in this
letter, please sign the enclosed copy and return it to us.
Sincerely,
CIement E. Goodson, CPA
APPROVED:
Title Date