Statute of the Tartu Film Fund

1. General Provisions

1.1. These conditions set out the procedure for the activities of and award of grants by the Tartu Film Fund (hereinafter 'the Fund').

1.2. The objective of the Fund is to promote, by awarding grants, the production of and/or the provision of production and post-production services for professional audio-visual works relating to the Tartu region (hereinafter 'the Film Project') in order to attract investment, create jobs, promote local tourism and the economy in Tartu and to promote Tartu both within Estonia and abroad. In the award of grants, particular consideration shall be given to the locations planned for the Film Project, the share of regional enterprises and local talents used in the Film Project, the content of the Film Project and its future potential for success on the domestic and foreign market.

1.3. The work of the Fund is organised by SA Tartu Loomemajanduskeskus (hereinafter 'Tartu LMK'), where the project manager of the Fund works, who organises the receipt of applications (including publication of information and application materials on the website) and forwarding of applications to the Expert Committee, ensures the work of the Supervisory Board, signs co-financing agreements, checks reports, makes payments from the Fund and markets the Fund in Estonia and abroad.

1.4. Terms used in the procedure for the activities of and award of grants for Film Projects by the Fund:

1.4.1 Applicant for a grant (hereinafter 'the Applicant') is a legal person registered in Estonia who:

1.4.1.1 has previous experience in professional film production;

1.4.1.2 has no tax arrears;

1.4.1.3 is the main producer of a Film Project or has signed a (preliminary) agreement for co-production or the provision of production services with the main producer of the Film Project and intends to produce the Film Project in the Tartu region;

1.4.1.4 intends to implement its Film Project during the same calendar year when the application is submitted;

1.4.2. Film Projects eligible for grants:

1.4.2.1. The types of Film Projects are:

1.4.2.1.1. Production and post-production of feature films with a total length of not less than 60 minutes and a total budget of not less than €400 000;

1.4.2.1.2. Production and post-production of documentary films with a total length of not less than 60 minutes and a total budget of not less than €50,000;

1.4.2.1.3. Production and post-production of short feature films with a budget of not less than €50,000;

1.4.2.1.4. Production and post-production of animation films with a total length of not less than 60 minutes;

1.4.2.1.5. Production and post-production of quality TV series consisting of at least four (4) episodes.

1.4.2.1.6. As an exception, the Supervisory Board may at its own discretion qualify Film Projects differing from the above criteria if according to the assessment of the Supervisory Board, such Film Projects comply with the objectives of the Fund.

1.4.2.2. At the moment of submission of the application, at least 50% of the total costs indicated in the financing plan of the Film Project are covered by agreements.

1.4.2.3. Applications for Film Projects in which the shooting (or another production stage for which a grant is applied for) has been finished by the moment of application are not eligible.

1.4.2.4. Grants are not awarded for Film Projects that in the judgement of the Fund could incite religious hate or racism, present senseless violence or contain propaganda or similar that humiliates human dignity;

1.4.3. Recipient of a grant is a legal person who has submitted an application for a grant to the Fund and complies with the conditions of clause 1.4.1, with whom a co-financing agreement has been signed for the award and use of a grant;

1.4.4. A Fund Grant (hereinafter 'the Grant') for a Film Project constitutes 10–20% of the eligible costs of the Film Project incurred in Tartu, which is paid after the costs have been incurred and a relevant report submitted by the Recipient of the Grant and after the review and approval of the report by the Fund;

1.4.5. Eligible costs – costs subject to partial refinancing according to the conditions of this Statute (see clause 3.1, below);

1.4.6. Non-eligible costs – costs that are not subject to refinancing according to the conditions of this Statute (see clause 3.3, below);

1.4.7. Expert Committee – the body reviewing and assessing the content of applications for Grants which submits the Film Projects qualifying for a Grant to the Supervisory Board for making a funding decision. The Expert Committee consists of up to five members;

1.4.8. Supervisory Board – the body deciding on the award of Grants and on the operating principles of the Fund. The members of the Supervisory Board are appointed by the Tartu City Government. The Supervisory Board approves by its decision a limit to be assigned for each Grant under a co-financing agreement, expressed both as a percentage (10–20% of the costs incurred on the spot) and the maximum amount according to the information presented in the application;

1.4.9. Application round – application rounds are organised for the application for grants twice a year. The Supervisory Board decides the times of the application rounds for each following year.

2. Invitation to apply

2.1. The Tartu LMK, the City of Tartu and the Tartu Film Fund publish information on the application rounds and the awarded Grants via their information channels, the website www.filmestonia.eu, the mailing lists of the Estonian Film Institute and other relevant information channels.

2.2. The application conditions are available on the website of the Fund (www.tartufilmfund.ee).

3. Eligible and non-eligible costs

3.1. Eligible costs are economic transactions that are directly related to the production of the Film Project for which a Grant is awarded, based on accounting source documents, conducted under market conditions and incurred in the city (and region) of Tartu.
The following costs are regarded as costs related to the production of a Film Project:

3.1.1. Hotel and other accommodation related services;

3.1.2. Rental of the equipment necessary for the implementation of the Film Project;

3.1.3. Transport services and other transport related costs;

3.1.4. Catering services (rendered by a service provider);

3.1.5. Construction services necessary for the production and preparation for the production of the Film Project:

3.1.6. Security services;

3.1.7. Public utility costs and public services;

3.1.8. Rental of rooms;

3.1.9. Purchase and rental of various goods necessary for the production of the Film Project (such as props, building materials, etc.);

3.1.10. Creative services (services provided by authors or creative associations);

3.1.11. Other services related to the production of the Film Project (such as translation, photography services, make-up, services relating to stage decorations or costumes, casting, special effects, etc.);

3.1.12. Administrative costs related to the production of the Film Project (office services, legal assistance, accounting, staffing, etc.);

3.1.13. The remuneration of the producer or the provider of the production service up to 7% of the total eligible costs;

3.1.15. Remuneration or other equivalent payments to extras, actors, etc., including taxes;

3.1.16. Remuneration and equivalent payments to the people involved in the film production, including taxes.

3.2. As an exception, the Supervisory Board may at its own discretion accept as eligible also other costs not listed above that are directly related to the production of the Film Project and, according to the assessment of the Supervisory Board, qualify as complying with the objectives of the Fund.

3.3. Non-eligible costs are:

3.3.1. Producer’s remuneration over 7% of the eligible costs of the Grant;

3.3.2. Bank service fees and other banking expenses (contract fee, bank card maintenance fee, etc.);

3.3.3. Purchases of low value (receipts under €10);

3.3.4. Costs not directly related to the production of the Film Project;

3.3.5. Other costs classified by the assessment of the Supervisory Board as non-eligible that are not related to the production of the Film Project.

3.3.6. No Grant shall be awarded if reports show that the purchased goods or services are/were used for personal purposes.

4. Submission of application

4.1. An application shall contain the following:

4.1.1 A signed application corresponding to the application form, and its annexes:

4.1.1.1. A synopsis, logline and short synopsis of the Film Project;

4.1.1.2. In the event of feature films, documentary films, animation films and short feature films, the script of the Film Project; in the event of quality TV series, the script of four (4) episodes and extended treatments of the remaining episodes;

4.1.1.3. Time schedule for the production of the Film Project;

4.1.1.4. List of the production team of the Film Project and CVs of the creative team;

4.1.1.5. Track record of the Applicant and the main producer (i.e. legal persons);

4.1.1.6. Overview and time schedule of the activities performed in the Tartu region;

4.1.1.7. Distribution plan of the Film Project;

4.1.1.8. Budget and financing plan of the Film Project;

4.1.1.9. Copies of letters of interest and funding agreements already secured for the Film Project;

4.1.1.10. Other additional information that could contribute to a positive Grant decision and that the Applicant considers appropriate to add.

4.1.2. An estimated budget of the costs intended to be incurred for the Film Project in Tartu, with references to the eligible costs as specified in these Conditions. The actual costs may vary during the production of the Film Project, but a Grant shall not exceed the amount indicated in the co-financing agreement.

4.2. The application must be signed by a representative of the Applicant who has signatory powers.

4.3. Where business secrets or parts thereof should be kept confidential in relation to the application, the Applicant shall indicate this requirement in the application. In such case, the Fund shall sign a separate agreement with the Applicant stating which information the Fund may publicly use to promote itself and its activities.

5. Assessment of application and publication of results

5.1. The Supervisory Board sets up an Expert Committee of up to five (5) members for the Fund.

5.2. The process of validation of applications and decision-making that begins after the deadline for applications previously approved by the Supervisory Board for this year is organised in three (3) stages:

5.2.1. In the first stage, the project manager of the Fund assesses the compliance of an application to formal requirements; where necessary, the Applicant is proposed to amend or add to the application (within seven (7) calendar days). The project manager forwards the applications that have been received and meet the requirements to the Expert Committee.

5.2.2. In the second stage, the Expert Committee assesses the compliance of the subject of the application to the objectives of the Fund, draws up a summary of the application on the basis of the assessment, and assigns to the Film Project a percentage of co-financing by the Fund and sets the maximum total amount, which the Expert Committee submits for approval to the Supervisory Board.
In the assessment of an application the Expert Committee may:

5.2.2.1. invite the Applicant to defend the application and answer questions;

5.2.2.2. invite, where necessary, other experts or ask other specialists of the area outside the Expert Committee to give an additional expert assessment.

5.2.3. Funding decisions are made by the Supervisory Board of the Fund based on the assessment of the Expert Committee as follows:

5.2.3.1. Decisions are made at meetings of the Supervisory Board by public voting for each application individually.

5.2.3.2. A simple majority of votes of the Supervisory Board is required to grant an application.

5.2.3.3. The Supervisory Board decision granting an application also sets the rate of co-financing by the Fund.

5.2.3.4. Before signing a co-financing agreement, the Supervisory Board may ask for additional information from the Applicant and, if necessary, change the cost estimate presented in the application by changing the qualification of specific cost items as eligible and non-eligible costs.

5.4. The Expert Committee gives its assessment of applications within 30 calendar days of submission of the application.

5.5. A meeting of the Supervisory Board that decides the results of the application round is held no later than 60 days of the end of the respective application round.

5.6. The Applicant is notified of the decision of the Supervisory Board on the granting or rejection of the application within three (3) working days of the decision of the Supervisory Board, after which a co-financing agreement is signed with the Applicant if the decision was positive.

5.7. No co-financing agreement is signed if the Applicant is found, prior to signing, to have knowingly submitted incorrect information in the application or attempted to obtain confidential information during the application assessment process or to influence the decision.

5.8. The Grant decisions of the Fund are published on the website of the Fund.

6. Co-financing agreement

6.1. The Fund signs a written co-financing agreement with the Applicant after all the established requirements have been met. Granting an application is not binding on the Fund before the agreement is signed.

6.2. An affirmative decision on co-financing is valid up for to six (6) months after the decision of the Supervisory Board. A co-financing agreement has to be signed within that period. The period can be extended by a decision of the Supervisory Board if the Applicant has submitted a reasoned application to that effect to the Fund.

6.3. The co-financing agreement sets out the time schedule for implementation of the Film Project that shall not extend beyond 31 December of the current year; the costs intended to be incurred in the Tartu region; the maximum rate of co-financing by the Fund, and other conditions that shall be binding on the implementation of the Film Project.

7. Award of Grants

7.1. A Grant is awarded according to the conditions of the co-financing agreement and provided that the Applicant has submitted the final report of the Film Project and copies of expenditure documents to the Fund in due course (within 40 calendar days of the end of the Film Project as provided in the co-financing agreement).

7.2. The Fund reviews the final report on the implementation of the Film Project within 30 calendar days, involving experts where necessary. The Fund assesses whether the costs of the Film Project meet the co-financing agreement. The Fund then submits the Film Project report for approval to the Supervisory Board. The Supervisory Board decides on the approval of the report within 14 calendar days.

7.3. The Fund may request additional information and documented evidence on the production costs of the Film Project. Documented evidence of costs are accounting source documents certifying business transactions as provided in §7 of the Accounting Act.

7.4. If the Supervisory Board approves the reports, the Fund calculates the amount of Grant for the Applicant according to the co-financing agreement. The Grant is paid within 14 calendar days after the Supervisory Board has made a decision on the compliance of the implementation of the Film Project and the payment of the Grant.

7.5. The Supervisory Board may reduce the amount of a Grant if:

7.5.1. The documented evidence on the costs of the Film Project show that the costs do not meet the requirements for eligibility;

7.5.2. The recipient fails to submit the report on the implementation of the Film Project by the deadline, without providing any reasoning or prior notice.

7.6. The Supervisory Board may decide not to award a Grant if the recipient:

7.6.1. has misled the Fund in any way;

7.6.2. has failed to submit the required documents and/or documented evidence of costs by the deadline;

7.6.3. has used the granted funds for purposes not related to the Film Project rather than the production of the Film Project.

8. Rights and obligations of Applicants for Grants

8.1. An Applicant for a Grant may withdraw their application.

8.2. An Applicant for a Grant must ensure the correctness of the information submitted in the application. In the event of submitting false information, the application shall not be granted or the Fund may reclaim a Grant already paid.

8.3. An Applicant for a Grant must follow the following conditions and the conditions of the co-financing agreement.

9. Control measures

9.1. The Fund may involve experts in relation to the reports of the Film Project in order to assess the compliance of the effective implementation of the Film Project to the information contained in the application, and the correct and fair presentation of eligible costs.

10. Final provisions

10.1. After signing a co-financing agreement, the recipient of a Grant and implementer of a Film Project agrees to include information on the Grant by the Fund and the logos of the Fund and the City of Tartu to the end titles of the finished work and the advertising and promotional material relating to the work.

10.2. The recipient of a Grant must give to the Fund seven digital presentation copies of the work produced as a result of the Film Project.

10.3. In the co-financing agreement, the Applicant grants the Fund, the Tartu LMK and the City of Tartu the right (non-exclusive licence) to use the work for which the Grant was awarded non-commercially in its marketing activities in Estonia and around the world.