State of Alaska Division of Legislative Audit

04-30076-14

October 29, 2014
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SUMMARY OF: A Special Report on the Department of Revenue, Alaska Film Production Incentive Program, July 14, 2014

Purpose of the Report

In accordance with Title 24 of the Alaska Statutes and a special request by the Legislative Budget and Audit Committee, we have conducted a performance audit of the Alaska Film Production Incentive Program (film credit program).

This performance audit evaluates the Alaska Film Office’s (AFO) compliance with statutes and regulations in conducting the activities of the film credit program from July 1, 2013, through June 30, 2014. The audit also provides the current status of recommendations from the prior two performance audits.

Report Conclusions

The audit concludes:

  • Statutory dollar limits for the film credit program were not exceeded.
  • Except for the statutory requirement to obtain names of the proposed cast, applications for qualification were approved or rejected in accordance with statutes. The related internal controls were found to be operating effectively.
  • Final applications for film tax credits subject to the original statutory framework were approved in accordance with applicable statutes and regulations. The related internal controls were found to be operating effectively.
  • Except for the statutory requirement for film productions to include the AFO logo and required verbiage, final applications for film tax credits subject to the new framework were approved in accordance with applicable statutes. The related internal controls were found to be operating effectively.

 

Findings and Recommendations

Recommendation No. 1

The Department of Revenue’s (DOR) AFO executive director should continue efforts to ensure qualification applications contain names of the proposed cast as required by statute.

All 29 qualification applications approved since July 1, 2013, were examined to determine if the applications included names of the producers, directors, and proposed cast. Seven of the 29 qualification applications were incomplete in listing talent or persons highlighted in the film production.

Recommendation No. 2

DOR’s AFO executive director and the film commission should ensure that film credit productions include the AFO logo and the required statutory verbiage.

Film productions related to the two final applications approved after July 1, 2013, and subject to the new statutory framework did not include the AFO logo and the words “Filmed in Alaska with the Support of the State of Alaska” as required by statutes.

DOR Alaska Film Production Incentive Program
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