III. Grants» State Fund of CR»

FINANCIAL GRANTS AWARDED BY THE STATE FUND OF THE CZECH REPUBLIC FOR THE SUPPORT AND DEVELOPMENT OF CZECH CINEMATOGRAPHY

The State Fund of the Czech Republic for the Support and Development of Czech Cinematography was established by Act no. 241/1992 on the State Fund of the Czech Republic for the Support and Development of Czech Cinematography (hereinafter the Act on the Fund).

The subject of the Fund’s activities is given by section 9 of the Act on the Fund as follows: provision of funds from the Fund's financial resources via special-purpose grants, loans or returnable financial aid for:

a) the creation of Czech film works,

a) the production of Czech film works,

c) the distribution of valued film works,

d) the promotion of Czech films,

e) the technical development and modernisation of Czech cinematography,

f) the production, distribution and promotion of film works of national and ethnical minorities living in the Czech Republic.

According to Czech government resolution from 17 January 1996 no. 73, the Fund is the body relevant for settling requests for a co-production statute pursuant to the European Convention on Film Co-production that was announced under no. 26/2000 Coll. m.s. In 2007 provisional co-production statute was granted to 14 projects and definitive co-production statute following the completion of a work to 5 projects.

Review of grants in 2007

In 2007 the fund received significant support from the state budget in the amount of CZK 100 million via the Czech Ministry of Culture. This grant enabled the Fund Board to announce special deadlines for the technical development and modernisation of Czech cinematography focused only on cinemas, for graduation works of film school students, screenplays focused on works for children and youth and for the technical development and modernisation of studios. A total of 117 projects received state grants. For some projects there occurred savings in total costs and therefore savings in grants, and these amounts were returned to the fund and then returned to the state budget.

Within the framework of submitted applications, financing was approved for 14 projects and 11 projects were approved during the year. A total of 177 grants were acknowledged in 2007. A total of CZK 237,696 thousand was distributed among the grants. Projects supported from a state grant and a part of projects from other Fund resources, which in accordance to concluded agreements satisfied conditions for the payment of the first or multiple instalments, were financed from the aforementioned grants. In addition to paying for new projects, in 2007 obligations from prior grants were paid – for completed projects this meant the final instalment and for other grants the relevant instalment, in accordance with the concluded agreements on their provision.

From the Fund there was a total of CZK 103,935.10 thousand paid, of which CZK 6,330.70 thousand was in the form of non-investment support and CZK 97,604.40 thousand was in the form of investment support. The balance of unpaid, contractually guaranteed financial support as at 31 December 2007 that will be drawn in the ensuing years, is CZK 93,326.70 thousand. For all support provided by the Fund this consisted of other public funds from resources designated to the Fund by Act no. 241/1992 Coll.

The main source of income for the Fund was as usual income from commercial use of films for which the Fund exercises production rights, whose administration is provided for on the basis of an agreement with Ateliéry Bonton Zlín, a. s. Other significant income was contribution from surcharges to cinema tickets. In addition, the Fund had other income from the collective administration of copyrights pursuant to the copyright law, which consists of a share of revenues from previously supported works, income from interest from funds maintained in current or time accounts, income from instalments of returnable financial aid formerly provided to applicants and other insignificant income.