In nine months, Film Center Sarajevo has risen from the dead: Instead of a padlock on the door – a successful public company!
The Supervisory Board of public company Film Center Sarajevo evaluated the work of the administration in this period as extremely successful and gave it full support in the further work of this public company of strategic importance for the development of the movie industry in BiH
Financial Operations Film Center Sarajevo, as a strategic public company of interest to the Federation of BiH, was consolidated in the first nine months of this year – the conclusion of the Supervisory Board of this public company after the session at which the management report for this period was adopted.
Namely, at the end of 2017, this public company had extremely bad financial results, blockade of accounts, long-delayed payment of employees’ salaries, locked and blocked business premises (Film studio Jagomir, business buildings in Dženetića Čikme street), tax and VAT liabilities, and a number of other obligations under executive court judgments and debts to the partners. The total debt of the public company was around 300,000 KM, which is evident from the report on the financial operations of this public company, which was also found in the findings of the Audit Office of the Federation of BiH for 2017.
This was the result of the work blockade of Film Center Sarajevo that, in the period of almost three years, did not have the management, the director, nor the person for representation in financial and legal transactions.
Because of this, Film Center Sarajevo entered the income plan of BAM 522,000 in 2018, and it was planned to provide 322,000.00 KM through its own business activities, including projects supported by the Sarajevo Film Academy, while because of the extremely bad financial situation in the past, the amount of 200.000,00 KM was planned as the support of the Government of the Federation of BiH for the financial consolidation of public enterprises in the Federation of BiH.
The report for the first nine months of the work of this public company shows that its own realized income was BAM 433,000.00, which was significantly higher than BAM 322,000.00 plan. Unfortunately, the planned amount of the Government of the Federation of BAM 200.000,00 was not realized in this period, which made it difficult for the operational rehabilitation and financial consolidation of this public company in the first nine months of this year.
Nevertheless, despite the lack of support from the Government of the FBiH, the plan for this year will be fully fulfilled, while the management of Film Center Sarajevo has already arranged a number of other tasks, thus ensuring the normal operation of this public company for the following period.
According to the FCS, the revenue structure shows that BAM 115,000.00 was provided through programs and projects of the Federal Ministry of Culture and Sports to support the development of cinematography in BiH, while all other realized revenues (BAM 318,000.00) were realized through their own commercial business (sale of TV rights of the FCS Film Catalog in the region, revenues from land allocation and other services.)
With this positive development of the events at the Film Center Sarajevo, this public company managed to virtually eliminate almost all liabilities as of December 31st, 2018, as well as the bulk of current liabilities from this year. It is important that all key debts (taxes, arrears, fees to the Audit Committee, major suppliers and third parties) are solved and no longer burdens the current operations of the Film Center Sarajevo.
During the first nine months of the work, Film Center has successfully normalized all work and business processes due to which it exists as a public company, sanitized and adapted its working premises (the archive in the former film studio Jagomir, the business headquarters of the company in Dženetića Čikme street), put into operation its office spaces (furniture, computers, office equipment), equipped space and equipment for the process of storing, dubbing and processing archival material from its film catalog.
In addition, Film Center Sarajevo has launched a number of other program activities: Public action “Save film treasure of BiH” and digitization of its archives, initiative towards the Government of the Federation for the adoption of the Regulation on incentives for foreign producers and investors in the BiH film industry, construction of the museum “Valter brani Sarajevo “, preparations for the opening of drive-in the cinema “Dolly Bell” and “Cinema Garden” in the area of the former film studio Jagomir, promotion activities of BH film on the international plane, screening of films from the catalog of Sarajevo Film Center Sarajevo in the towns of Bosnia and Herzegovina (Sarajevo, Tuzla, Široki Brijeg, Mostar) and on digital platforms, application for the development of movie projects in BiH, and thematic event “Films & Talks”.
The Supervisory Board of Film Center Sarajevo assessed the work of the management during this period as extremely successful and gave it full support in the further work of this public company of strategic importance for the development of the film industry in BiH.