VMN Production Accounting Manual For in-house studio shows using PSL

5/16/2016 INTRODUCTION

Comedy Central, TV Land, Spike, and MTV are part of Viacom Media Networks (VMN). As such, we follow the policies of VMN. This manual also includes some procedures that are specific to studio shows using PSL production accounting software.

Employees are expected to transact business to the best advantage of VMN, exercising good judgment and acting prudently when incurring and managing costs. Therefore, VMN requires that you observe both the spirit and the letter of its policies. All productions are subject to review by Viacom Audit at any time.

This manual is the property of VMN and contains privileged and confidential information intended for VMN employees only. Any dissemination or copying of the manual to outside parties is prohibited. However, you may distribute this manual or a summary of key points to your staff and crew as necessary. Please make sure your producer, staff, and crew are aware of any and all policies and procedures within this manual that they will need to follow. A separate Production Manual may also be given to your producer.

QUICK START You need to read and understand this entire manual. However, there are a few procedures specific to VMN studio shows using production accounting software that you will need to know right away to get your show started off properly:

 CHECK TESTING: If this is the first time you’re cutting checks on a JP Morgan Chase account, or if you’re using a new computer/MICR printer set up, please refer to CDA Syracuse Spec Sheet to learn how to get your checks tested to make sure they will clear.

 CHECK CUTTING PROCESS: You will need to submit a “Check Run Approval Request” form and a detailed check register for approval each time you cut a batch of checks. You may not release any checks until you receive approval to do so. Please read the “Banking Information” section.

 CHECK CASHING: There’s a form you need to fill out before the bank will allow you to cash checks. It will take some time to process after you’ve turned it in. See “Check Cashing” under Banking Information.

 PETTY CASH LIMITS: Please read the “Petty Cash” section before handing out any petty cash and note the petty cash limits.

 INDEPENDENT CONTRACTOR APPROVAL PROCESS: Refer to the “Independent Contractor” section as VMN has specific rules about how and when people/entities may be paid through AP. There is a pre-approval process that involves filling out forms and takes some time.

 PAYROLL & CONTRACTUAL PAYMENTS: Please make sure you read the “Payroll” and “Contractual Payments” sections before processing any payroll or contractual payments.

 JOURNAL ENTRIES & TRIAL BALANCE ACCOUNT SET UP: Please read the “Journal Entry and Trial Balance account set up” section before setting up any trial balance accounts.

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INTRODUCTION ...... 1 QUICK START ...... 1 ACCOUNTS PAYABLE ...... 4

PURCHASE ORDERS ...... 4 ACCOUNTS PAYABLE (AP) PROCEDURES ...... 4 EQUIPMENT RENTALS ...... 4 FOREIGN VENDORS ...... 4 VENDOR SET-UP ...... 5 REQUIRED INVOICE APPROVALS ...... 5 VENDOR DEPOSITS ...... 5 STALE DATED CHECKS ...... 6 DESCRIPTIONS ...... 6 1099’S ...... 6 WIRE TRANSFERS ...... 6 ASSET LOG ...... 7 BANKING INFORMATION ...... 7

JP MORGAN CHASE ACCOUNTS ...... 7 THE CHECK CUTTING PROCESS: ...... 8 BANK WEBSITE INFORMATION ...... 8 BANK SET UP IN ACCOUNTING SOFTWARE ...... 9 CHECK CASHING ...... 9 DEPOSITS ...... 9 BANK RECONCILIATIONS ...... 10 BILLING OUTSIDE PARTIES ...... 11 BUDGETING & COST REPORTS ...... 11 BUDGETING ...... 11 COST REPORTS ...... 11 HOT COSTS ...... 12 BUSINESS CONDUCT ...... 12 COMPETETIVE BIDDING ...... 12 CLOSE THE PERIOD MONTHLY ...... 13 CONTRACTUAL PAYMENTS ...... 13 EQUIPMENT RENTALS ...... 14 FOREIGN VENDORS ...... 14 GIFTS AND DONATIONS ...... 14

GIFT POLICY ...... 14 GIFT TAX REPORTING ...... 15 RECEIVING GIFTS ...... 15 DONATIONS ...... 15 GENERAL LEDGER RECONCILIATIONS ...... 15 INDEPENDENT CONTRACTORS ...... 16

INDEPENDENT CONTRACTOR OVERVIEW ...... 16 HOW TO GET A VENDOR APPROVED AS AN INDEPENDENT CONTRACTOR ...... 17 ADDITIONAL INFORMATION ABOUT INDEPENDENT CONTRACTORS ...... 17 2 CALIFORNIA REPORTING OF INDEPENDENT CONTRACTORS ...... 18 INSURANCE: LOST OR STOLEN PROPERTY ...... 18 INTERNATIONAL SHOOTS ...... 18 JOURNAL ENTRY & TRIAL BALANCE SET UP ...... 19

TRIAL BALANCE ACCOUNTS ...... 19 SOURCE CODES ...... 20 JOURNAL ENTRY NUMBERS ...... 20 JOURNAL ENTRY DATES...... 21 JOURNAL ENTRY DOCUMENTATION ...... 21 JE APPROVALS ...... 21 JOURNAL ENTRY LOG ...... 21 HOW TO RECORD MISC JOURNAL ENTRIES ...... 22 HOW TO RECORD MONTHLY GL RECONCILIATON JOURNAL ENTRIES ...... 22 KIT RENTALS ...... 24 MINORS (CHILD PERFORMERS) ...... 24 PAYROLL ...... 25

PAYROLL ENTITIES ...... 25 PAYROLL PAPERWORK ...... 26 INDEPENDENT CONTRACTORS ...... 27 ON-SITE PAYROLL CHECK PRINTING ...... 27 EXTRAS PAYROLL ...... 27 SENSITIVE PERSONALLY IDENTIFIABLE INFORMATION: ...... 27 CALIFORNIA TERMINATIONS ...... 28 P-CARDS ...... 28

REQUESTING NEW PSL P-CARDS ...... 28 PAYMENTS ...... 29 CARDHOLDER ...... 29 ONLINE ACCESS- STATEMENTS ...... 30 CARD CHANGES ...... 30 CLOSING CARDS & INACTIVITY ...... 30 RECONCILING CARDS ...... 31 P-CARD POLICIES ...... 31 PER DIEM ...... 34 PETTY CASH ...... 34 PRIZES ...... 37 RESIDUALS ...... 37 RIGHTS AND CLEARANCES ...... 38 TAX CREDITS ...... 39 TRAVEL & EXPENSE POLICIES ...... 39 UNIONS ...... 41 VACATION & HOLIDAY PAY ...... 42 WRAP & POST PRODUCTION ACCOUNTING ...... 42

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ACCOUNTS PAYABLE

PURCHASE ORDERS

All purchases are to be made with a purchase order whenever possible. All PO’s must be tracked by the Production Accountant. You are responsible for making sure your key staff and crew are turning in PO’s. You may wish to use a PO sign out log and limit the number of Purchase Orders signed out at a time, however this is at your discretion.

ACCOUNTS PAYABLE (AP) PROCEDURES

Please encourage your staff and crew to have accounts set up at the beginning of the show with any vendors they think they might need.

The VMN order of preference for making payments is as follows:

1st choice: Set up an account- purchase order followed by an invoice from the vendor 2nd choice: Check requests with original backup provided as soon as possible. You are responsible for either making sure the requestor obtains proper backup for all check requests or obtaining it yourself. 3rd choice: P-card 4th choice: Petty cash only when all other methods above are not possible

Personal credit cards may be used only if absolutely necessary.

When setting up accounts, do not fill out vendor credit applications unless it is necessary. Request a credit letter from your finance point person. Always try to open accounts using only this credit letter. You may fill out the vendor’s credit application only if they insist that their credit application must be completed. A Letter of Guarantee is available from your production finance point person in situations where it is the only way to get an account opened with a particular vendor.

Make sure every staff and crew member who sets up accounts with new vendors knows the proper addresses and phone numbers to give out. Vendors should be given the production company address as the billing address, not the VMN corporate offices in NY or LA. Vendors should always be given the name of the channel and show as well as the production company name. If an invoice gets lost and the vendor calls the network at a later date, it will be difficult to help them if they don’t have a channel and show name.

EQUIPMENT RENTALS

Crew members may not invoice and be paid via Accounts Payable (AP) for rentals. All rentals provided by crew members must go through payroll as kit rentals.

An approved independent contractor may rent equipment to VMN and be paid via AP. Please see the “Independent Contractor” sections for information regarding the VMN Independent Contractor approval process.

FOREIGN VENDORS

You may never pay any vendor with a foreign address yourself. Contact your production finance point person if a payment needs to be made to any foreign vendor. Please note that foreign vendor payments will be made at the VMN level and that the procedure is time consuming. Please alert your production finance point person as soon as you are aware that a payment to a foreign vendor needs to be made.

4 VENDOR SET-UP

 Make sure all vendor information is entered correctly in PSL including the vendor name, address, and correct tax ID number.  You must have a completed W-9 form on file. (Staff & Crew set up as “vendors” for petty cash purposes are an automatic exception.)  Instruct vendors to include the address where payments should be sent on the W-9 (not necessarily the primary place of business). All W-9’s must list the address where payment is to be mailed. This is also the address that must be entered into the production accounting system.  The address on the invoice, on the corresponding check, and on the vendor’s W-9 must all be the same.  VMN approval is required if the vendor being set up is an independent contractor. See “Independent Contractor” section.

REQUIRED INVOICE APPROVALS

The Line Producer (or other appropriate producer) and the Production Accountant must approve each invoice. Department heads/purchasers should also approve whenever appropriate and feasible. Original signatures should be obtained when possible. E-mail approvals are acceptable when necessary and must be filed with the invoice.

In wrap, once there is no longer a Line Producer working on the show, invoices may be signed by only the Production Accountant if there is a matching signed PO. If there is no PO then VMN Production Management must sign.

Print or stamp the name or title below each signature approval.

All invoices must be properly coded. You must always use the most appropriate account code available. You MAY NOT choose to code a cost to an account simply because there’s money left in that account.

Confirm that the “Bill To” section of the invoice names the appropriate production entity. If the vendor did not bill the appropriate production entity (for example if the bill is to “Comedy Central” instead of “Central Productions”) please return the invoice to the vendor where feasible, or contact the vendor immediately and request that all future bills list the correct billing entity.

“Remit To” should include vendor’s full company name and address which must match the name and “remit to” address on the W9 form, contract (where applicable), and the name in your production accounting system.

Do not pay off statements. An invoice is required.

Adhere to the terms on the invoice (i.e., net 30, discount if paid by a particular date).

Please note that agency package fee invoices require BALA approval, and generally should not be paid until the show airs.

VENDOR DEPOSITS

All refundable deposits should be coded to your trial balance. Vendors should be discouraged from deducting invoices off a deposit, and should be made aware that they always need to send invoices to the show for payment. If a deposit is not refundable, but is instead a cost to your show, it should be coded to your expenses not to your trial balance. Review your trial balance periodically and follow up on any refundable deposits that are outstanding. It is your responsibility to make sure refundable deposits are returned in a timely manner.

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STALE DATED CHECKS Our checks become stale dated in 6 months. VMN cash management requires that stale dated checks be handled in a timely manner. It is your responsibility to either void or re-issue stale-dated checks quickly after they become stale-dated. Please complete the following steps once a check is 6 months old:

1) Determine whether the check is still currently outstanding or whether it recently cleared the bank. 2) If the check is stale dated but has not yet cleared, place a stop payment on the check with the bank as needed and then also complete steps 3-4. 3) Void (or void and re-issue) the check in your production accounting software 4) Send in a check run for the void check(s) – do not skip this step

DESCRIPTIONS It is very important that you enter in useful descriptions when entering invoices. Thorough descriptions will substantially increase the value of reports you produce. Include dates for rentals or payment number (example: pmt 2 of 3) whenever applicable.

1099’s

 You must obtain W-9’s on all vendors (except employees who are set up as petty cash “vendors”) throughout the year before you make payments.

 Please make sure you are entering all vendor information into the production accounting software including the correct tax ID number.

 Flag all 1099-able items, even if they are under $600. 1099’s will be issued at the Viacom level and all show payments will be combined into one 1099 per vendor.

 Do not flag items that are not 1099-able.

 1099 rules are set by the IRS. The most common 1099-able items on shows are rents, services (including parts and materials), prizes and awards, medical payments, payments to attorneys. Corporations are generally exempt from being 1099’d unless the payment is for medical or attorney fees. Complete IRS rules can be found on the IRS website: http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

You must audit your 1099 reports and make any adjustments necessary before finishing work on your show. 1099 information will need to be provided VMN as 1099’s will be issued at the corporate level. The information provided must be correct and complete.

1099 information is generally due to VMN corporate each year in early January for the prior year.

WIRE TRANSFERS

Please contact your production finance point person if you need a wire transfer done. Please note that the wire transfer process involves many steps and a check is always preferable whenever possible.

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ASSET LOG

Production assets are defined as all items purchased, manufactured, or acquired for a specific show or use which may have future use to productions including, but not limited to props, wardrobe, set elements, stanchions, furniture, cameras, and other technical equipment.

 All assets that cost $100 or more must be tracked.  Like assets with a per item cost less than $100, but an aggregate cost of over $100 must be tracked if the assets have a future use (e.g., headphones).  Assets under $100 that could be used on other productions (coffee makers, coolers, etc) should also be tracked.

You must flag assets in your production accounting system. Each production is required to maintain an Asset Log. The “VMN Asset Log” form may be used, or you may upload your asset data from your accounting system into Excel and build on that to create your asset log. The log must include a description of the asset, purchase price, serial number if applicable, business related purpose, disposition of the asset at the end of production (sold, in storage, destroyed, transferred to another production, etc.).

Once completed, you and your line producer must sign the log and forward a copy to your production finance representative and your production point person. The asset log, along with any documentation supporting the disposal of assets, should be filed in the production files. The accounting files must also have a copy of the asset log.

It is VMN’s decision to determine what is to happen to assets at the end of the production. The equipment may be sold, reassigned to another production, or put into storage. If the equipment is sold, the best possible price should be obtained. All sales must be internally sourced (i.e., assets cannot be sold on the internet, E-bay, or outside of VMN). All sales are subject to final approval by VMN. There is a list of approved companies to whom you may donate items, please check with your production finance person to get the list.

BANKING INFORMATION

JP MORGAN CHASE ACCOUNTS

All shows will be assigned a JP Morgan bank account and a starting check number. You may not choose your own starting check number. Show bank accounts are zero balance controlled disbursement accounts with “positive pay” files fed automatically from your PSL database to JPMC four times per day: 7AM, 12PM, 2PM, 6PM. Times are Pacific Time.

JP Morgan Chase set up information:

JPMorgan Chase ABA number: 50-937 / 213 1 Chase Manhattan Plaza Routing number: 021309379 New York, NY 10005

If this is the first time you’re cutting checks on a JP Morgan Chase account, or if you’re using a new computer/printer set up, please refer to the “CDA Syracuse Spec Sheet” document to learn how to get your checks tested to make sure they will clear properly.

7 THE CHECK CUTTING PROCESS:

1. You will need to e-mail a completed “Check Run Approval Request” form to VMN after each batch of checks you cut. Your production finance point person will send you a Check Run Approval Request form to use. It is specific to your show and changes every season. Do not try to create your own form by copying an old form from another show or from an old season.

2. Send one e-mail to [email protected] including two documents: 1) Completed check run form and 2) Detailed Check Register History as backup. Per Viacom, whenever possible we need to have all checks approved in the same month they are cut so please send this e-mail right after you upload your checks to the bank website, especially if it is near the end of the month.

3. Hold the checks until you get an e-mail approval. You may not release checks until you receive the email approval.

4. Release your checks when you have received an e-mail approval from your production finance point person. Approval e-mails will be sent daily by 1PM PT each day (unless your point person gives you a different deadline). The e-mails will include approvals for all checks sent in the prior day up to 10AM the current day. For example: if you send a check run in at 2PM on Monday you should expect it to be reviewed at 10AM on Tuesday, and to receive an e-mail approval by 1PM on Tuesday.

5. If you have a rush and need a particular check more quickly than normal timeline allows, note “RUSH” in your e-mail subject header and copy your finance point person.

Do not release checks without the e-mail authorization. Reach out to your production finance point person if you have an emergency. Please ask your point person for additional contacts that may need to be included on the rush e-mails, as well as alternate contacts to reach out to in case you have an emergency and can’t reach your normal point person quickly enough.

If an error occurs, for example if a check is released and then accidentally voided, DO NOT attempt to fix it on your own. Do not create a manual check. Contact your production finance point person to discuss. Errors do occur from time to time but need to be fixed with our knowledge. Fixes attempted without our knowledge usually make the situation worse.

BANK WEBSITE INFORMATION

JP Morgan Chase: https://access.jpmorgan.com/appmanager/jpmalogonportal/jpmalogonhome

The following information will be sent to our Viacom treasury contact to get you setup with access. A JPMorgan Chase token, login and bank instructions will then be sent to you.

1.) FULL NAME 2.) EMAIL ADDRESS 3.) PHYSICAL ADDRESS 4.) PHONE NUMBER 5.) BANK ACCOUNT

For Technical Support, you can contact the Technical Solutions Group at 1-866-872-3321 and follow these prompts:

• Select “1” for English, “2” for Spanish • Spell your JPMorgan ACCESS User ID • Select “4” for Specialty Services • Select “2” for Payables Web Services 8

BANK SET UP IN ACCOUNTING SOFTWARE

In PSL, go to Setup and choose Banks. Enter the bank information, including the account number. Also, choose LASER3 as the Check Format and POSPAY –CHASE as the pospay format.

CHECK CASHING

The bank will not cash checks for you until Viacom gives the bank permission. In order to be able to cash checks at a local branch, you will need to fill out the “Check Cashing Facility” form and e-mail it back to production finance. Please fill out this form completely. $5K is the maximum limit that you may fill in for the amount. On the form, the "duration" means the length of time you'll be cashing checks, "3/1/16 – 10/31/16" for example. You can list more than one person to cash checks, such as a PA you might send to the bank, or the office coordinator. For each person, list their title and the company they work for. Also please note that the “name of production” must match the show name listed on your checks.

Once this form is received by production finance, it will be forwarded to Viacom Treasury. Viacom will arrange for you to have check cashing privileges with your local branch. This sometimes takes more than one week- please send in this form as soon as possible at the beginning of a new show.

Once your check cashing privileges have been set up, you will be given a contact at your local branch. You should give that person a call to confirm that there won’t be any problems before you need to cash your first check. If you will be cashing a lot of checks you should give your contact an estimate of the size and frequency of checks you will generally be cashing, so the bank can make sure to have enough cash on hand to meet your needs.

Staff and crew members will need to cash AP checks at their own bank.

Call the bank if you need to obtain a cashier’s check.

DEPOSITS

Due to the nature of the show bank accounts you will not be able to deposit checks into your checking account. You need to send them to VMN to deposit. If you need to deposit cash you will have to take it to your local branch and convert it into a cashier's check or something similar that can be sent to VMN for deposit.

Here's the procedure, please note these instructions must be followed exactly for every deposit:

1) Write your show's “Show WBS”, “GL account” and “company code” neatly and correctly on the front of EACH check you want to deposit.

This information can be found at the top of your Check Run Approval Request form. It looks like this:

GL ACCT COMP CO SHOW WBS / GL / COMP CO: LO-1234567.01.9520 50120000 1234

In this example you need to write the following numbers on the front of every check:

LO-1234567.01.9520 50120000 1234 9

2) Create a memo (plain paper is fine if you don’t have letterhead) as follows:

TO: Lockbox

CHECKS ENCLOSED: Vendor name $100 Check date 1/1/15

Vendor name $250 Check date 2/10/15

PLEASE CONTACT THE FOLLOWING IF YOU HAVE ANY QUESTIONS OR PROBLEMS: [List your current information here] Your name Phone number Email address

ADDITIONAL CONTACTS: [note the finance manager for your show]

3) Review the checks you are sending in. If you ever have a check that does not clearly show the vendor or individual’s name and address, include that information in your memo to the lockbox. The lockbox will not credit the check to your show until they get this information.

4) ALWAYS keep a copy of the check- never skip this step! When something goes wrong with the deposit process the accountant will be required to provide a copy of the check.

5) Send the check to VMN for deposit, using one of the following addresses. For checks that are closing out petty cash, express mail requiring a signature on delivery must be used. Lost checks can be very difficult to get replaced.

US Mail Express Mail Viacom Media Networks JP MORGAN CHASE - R1 LOCKBOX PROCESSING P.O. BOX 13801 ATTN: VIACOM MEDIA NETWORKS LOCKBOX #13801 NEWARK, NJ 07188-0801 4 CHASE METROTECH CENTER 7th FLOOR WEST BROOKLYN, NY 11245

The telephone number to use is: 718-242-0716

5) Do a journal entry to record the deposit. Refer to the JOURNAL ENTRY section for specific instructions.

VMN will receive the check and credit it to your show by using the show ledger code you provided on the check. Monthly General Ledger reconciliations will be completed by your finance point person, so if a deposit you've posted in your accounting software doesn’t get credited to your show, it will become apparent and someone will follow up with you.

BANK RECONCILIATIONS

VMN cash management completes reconciliations of your bank accounts at the corporate level.

10 BILLING OUTSIDE PARTIES

In the unlikely event that you need to send an invoice another entity (for example if you are splitting office space expenses with another production company) the invoice must be processed through VMN’s Billing Department. You may not create your own invoice. Instead you must complete the VMN Ancillary Invoice Request Form. Follow the instructions on the form carefully. E-mail the invoice request form to your production finance point person, and send any applicable backup.

All new companies that are not currently set up in the VMN billing system will go through a credit check for approval. In this case, there will be additional time needed to process the request.

If you need to make an adjustment to a previously completed invoice request form, contact your production finance point person.

BUDGETING & COST REPORTS

BUDGETING

MTV shows: Please check with your production finance point person regarding the approved chart of accounts.

Please always carefully review fringes and accounting weeks when you first get a budget, even if it is already locked. Please communicate any issues to your production finance point person.

Production budgets are confidential and are not intended to be disclosed to outside parties. It is your responsibility to properly protect the confidentiality of the Company’s records. Any questions about the appropriate distribution of budgets for the show should be addressed to Production Finance/Management. A Budget Approval form will be circulated.

COST REPORTS

The Production and Finance Departments rely on accurate and timely cost reports. It is the joint responsibility of the Line Producer and the Production Accountant to carefully review all the costs and ensure that the estimate to complete is as accurate as possible for each account.

Unless otherwise discussed you need to submit a cost report every two weeks, starting at the end of prep/beginning of shoot. During prep and wrap, unless there are large variances expected, cost reports may be done once per month or quarterly. Some shows may require more (or less) frequent cost reports.

Unless told otherwise, e-mail the following documents to your production finance point person to submit a cost report:

Non-episodic shows:  Summary & detailed cost report  EFC explanation report (Variance by account, explaining the changes between the current report and the previous report).  Trial balance

Episodic shows:  Consolidated cost report and/or individual episodic reports  Excel spreadsheet summarizing by episode the EFC, budget, and total amount (over)/under.  EFC explanation report for each episode (Variance by account, explaining the changes between the current report and the previous report)  Trial balance 11

Cost reports must be submitted with the overages in parenthesis: (over)/under. The variance report must compare the current EFC’s to the prior EFC’s. (For the first cost report compare the current EFC’s to the budget). The EFC explanation report must list each account with a variance, the amount of the variance and the reason for the variance.

You should make sure your cost report is correct and complete before sending it. Unless otherwise discussed you do not need to ask permission to close the period after issuing a cost report. Make a backup of each cost report before you close the period. You may need this for historical reference or if changes are needed.

MTV shows must also turn in a detailed bible for the dates covered in the cost report period.

HOT COSTS

Daily hot costs may be required on your show. Please check with your production finance manager.

BUSINESS CONDUCT

You have a primary business responsibility to your Company. A conflict of interest or even the appearance of a conflict of interest may interfere with this primary responsibility and cause the propriety of your acts to be questioned. A conflict of interest exists when your outside business or personal interests adversely affect or have the potential to adversely affect your judgment or performance. You are required to disclose, in writing, all conflicts or potential conflicts.

COMPETETIVE BIDDING

Competitive bids are estimates obtained from vendors for purchases or rentals in advance of the actual transaction and should recognize all of the following factors:

Price performance—Net price, including shipping cost, less cash discount

Quality performance—The quality of goods and services provided by the vendor

Delivery performance—The number of previous late shipments and tax (if applicable)

The Competitive Bidding Worksheet or other similar documentation (emails are okay) must be approved by the Producer. Copies of all bidding documentation must be maintained in the accounting files- in the vendor file along with the paid invoices.

Bids are required from three vendors whenever more than $5,000 will be paid to a single vendor over the run of a project, as per the chart below:

Project Dollar Bidding Requirements Volume (Per Vendor, Per Project) Under $5,000 Bidding not required* $5,000 to $15,000 At least three telephone bids documented on a Competitive Bidding Worksheet or other similar documentation (emails ok) Over $15,000 At least three formal bids (i.e., written on vendor letterhead)

* Competitive bids are required for all transactions that involve an employee of the Company and a “related party” (i.e., relative by blood or marriage), regardless of the dollar amount of the expenditure. Related party transactions must be approved in advance by BALA.

12 CLOSE THE PERIOD MONTHLY

Close the period in PSL at the end of your last working day of each month.

This will prevent journal entries from accidentally being backdated to a previous month which is important for the General Ledger Reconciliation process.

If you have any unposted transactions at the end of the month you will need to either change the effective date or post the transactions before closing.

You may still close the period after issuing each cost report. The monthly closing is in addition to the cost report closings.

Cost reports will be unaffected by the additional monthly closing since cost reports in PSL are run by date.

CONTRACTUAL PAYMENTS

Some key terms:

 BALA= Business and Legal Affairs, each show has a BALA point person  COA= Certificate of Authorship - a form that can sometimes be used in lieu of a Longform contract  Longform= Contract

If there is any uncertainty regarding whether a contract needs to be done for any specific employee or vendor, please contact your production finance point person or BALA.

Releases can sometimes be used in lieu of a contract. Please see the Music and Media Licensing section.

You may not pay anyone who needs a contract until it is fully executed (signed by both parties), unless you have been provided with a completed Contract Exception Form. This form will be completed at the VMN level and will have a signature from BALA, CC Production, and CC finance.

When making the first contractual payment, carefully review the entire contract for the payment address. Do not assume that the address listed at the top of the contract is the address where payments should be sent. Sometimes there is a paragraph later in the contract that states where checks should be sent.

You must always get approval on all timecards before making making payroll payments.

If there is any person or entity on your show that you are not able to pay due to a lack of contract generated by BALA, please notify your production finance point person. You may also notify your production point person and your show’s BALA point person as appropriate. This will ensure that everyone is aware that payment is being withheld due to the lack of a contract.

Executive Producer payments: You must obtain approval from VMN before releasing final Executive Producer payments. E-mail your Production Finance point person when you are getting ready to release the final Executive Producer payment. Finance will obtain approval from Production to ensure that the show has been completely delivered and/or that all Executive Producer services have been completed and then e-mail you the OK to release the final check.

Contracts drafted by an outside party: You may pay off a contract drafted by an outside party (anyone other than the CC BALA department) only after BALA has reviewed the contract and given their approval.

Locations: Need a location agreement

Rentals that may be hazardous: production should consult with BALA (animals, aircraft, watercraft, etc)

13 EQUIPMENT RENTALS

Equipment rented from crew members must be processed on timecards. See the “kit rentals” section for more information.

Equipment rented from VMN approved independent contractors may be paid through accounts payable. See the “Independent Contractor” section for more information.

FOREIGN VENDORS

You may never pay any vendor with a foreign address yourself. Contact your production finance point person if a payment needs to be made to any foreign vendor. Please note that foreign vendor payments will be made at the VMN level and that the procedure is time consuming. Please alert your production finance point person as soon as you are aware that a payment to a foreign vendor may need to be made.

GIFTS AND DONATIONS

GIFT POLICY

Gifts can be any tangible item, service, form of entertainment, mode of transportation, favor, gratuity, or other purchase at a lower price other than that which is usually charged; non-monetary favors that enhances an individual materially, any benefit or other thing of value, including cash, that is given without adequate consideration.

Shows are prohibited from giving or offering gifts to any person or firm with whom the company does business, except as noted in the Acceptable Forms of Gift Giving section below.

You may not pay or reimburse anyone for gifts given to other employees, except as noted in the Acceptable Forms of Gift Giving section below.

The company strictly prohibits the giving or acceptance of bribes in any form.

Gifts of any value cannot be made or offered to any elected official or employee of a governmental entity.

Acceptable Forms of Gift Giving:

 Wrap gifts that are of nominal value may be given if approved in advance at the VMN level.  Gift certificates, gift cards may only be given with advance approval from VMN.  Gifts, primarily in the form of flowers, that recognize significant life events - such as births, the passing away of a loved one, and major surgery - that impact an employee's work life are permissible.

o The amount must not exceed $200. o Gifts purchased for reasons above should be paid for by an employee and submitted for reimbursement with an approval from a Vice President or above (producer should contract Production point person to obtain approval).

 Gifts may be given to talent at the discretion of the production and should be included as part of the show budget. Gifts include any items bought specifically as a “thank you” as well as any items used on the production (e.g., wardrobe, props, etc.) subsequently given to talent. Gift certificates, gift cards and/or cash are strictly prohibited. Any exceptions to this restriction must be pre-approved on a case- by-case basis by the Viacom Tax Department. Contact your Production or Production Finance point person to obtain this approval. 14

GIFT TAX REPORTING

VMN has no income or payroll tax withholding and reporting obligations with respect to any gift awarded to a corporation (generally talent that are incorporated).

The fair market value of any gift awarded to an independent contractor equal to or greater than $600 must be reported on Form 1099.

The fair market value of any gift awarded to an employee is subject to income and payroll tax withholding on Form W-2. Contact the payroll company regarding processing.

The Tax Compliance & Reporting Department must be notified of any gift valued at $600 or more that is given to any non-incorporated entity. You must flag for 1099 and notify your production finance point person so they can report. Make sure you have the following information on file:

 A completed W-9 Form  Reason for gift (e.g., gifts to hosts of awards show) and contact name and number of employee responsible (should further information be required)  Fair market value of the gift

RECEIVING GIFTS

Employees of VMN (including at the show level) are prohibited from soliciting or accepting any gift over a nominal value ($150 for any show level person) which directly or indirectly benefits them, from any person or firm that has or seeks a business relationship with the Company. See also Business Conduct section.

DONATIONS

Donations of any kind must first be approved by the Corporate Responsibility Department. Please contact your production finance point person.

The following info will need to be provided:

Organization: legal IRS name, tax ID, Mission Statement, type (arts, children, diversity, environment, etc)

Donation: type (location fee, in-kind/goods, amount, reason for donation)

GENERAL LEDGER RECONCILIATIONS

VMN uses a corporate software called SAP. Any show related costs that hit SAP must be recorded via journal entry in your production accounting software. An example of costs that hit SAP is travel booked through the VMN travel company and paid by VMN.

Your production finance point person will complete a monthly GL (General Ledger) Reconciliation between SAP and your show’s database. You will be responsible for verifying and booking any items on the GL Rec as instructed by your production finance contact in a timely manner. See the “Journal Entry & Trial Balance Set Up” section for specific instructions on how to book GL Rec entries.

15

INDEPENDENT CONTRACTORS

INDEPENDENT CONTRACTOR OVERVIEW

Please make sure your Line Producer is aware of the VMN Independent Contractor policy below.

Payroll is the default method of payment for services. Any person or entity that is providing a service and is not incorporated (individuals, LLCs, Sole Proprietors, Partnerships, etc.) must be approved as an Independent Contractor by the VMN GBS team before being paid via AP instead of payroll.

The following require independent contractor review if services are provided:

 Individuals using their social security number for payment. Please note that individuals are rarely approved as Independent Contractors.  Entities other than Corporations and S Corporations  Any former or current Viacom employee.  Do not meet the criteria listed on the IC exception guidelines list.

The following do NOT require independent contractor review even if services are provided:

 Corporations and S Corporations  Car Service  Catering/Craft Services  Florists  Doctors/Medical Facilities  Equipment/Facility Rentals  Large, well-known entities (e.g. Universal Studios, PriceWaterhouseCoopers, etc.)  License rights, reuse, use fees, reality show participant agreement, contests/sweepstakes winners, guest appearances (require some form of agreement as backup documentation).  Foreign Vendors  Government Agencies  Housing/Apartment rentals or Hotel Fees  Settlement/kill fees  Subscriptions (magazines, newspapers, database, etc)  Purchases  Freight or Shipping charges  Location/Venue fees (requires agreement)  Employment/Staffing agencies

For those requiring review the VMN GBS (Global Business Services) team will use criteria assigned by the federal government to determine whether to approve IC status. VMN GBS will look for the following items:

 Should be engaged in projects of limited duration. For individuals this means 30 days or less.  Should possess unique skills or expertise that is not available internally.  Should not be used to perform work on an on-going basis that would normally be performed by an employee.

16  Should provide a list of clients, other than Viacom (all entities), to whom they’re providing similar services.  Have letterhead, business cards, invoice forms and any other material that would indicate they’re an established business (i.e. website).  Cannot have an employment agreement or any other type of contract/agreement that contains employment language.  Have an established business presences (i.e., Inc., LLC, LLP, etc.).  Must have completed the independent contractor questionnaire in its entirety, where applicable, and should be done prior to the start of the project.

HOW TO GET A VENDOR APPROVED AS AN INDEPENDENT CONTRACTOR

Please reach out to your production finance point person for a list of Independent Contractors that have already been approved by VMN GBS.

If someone providing services is not incorporated, wishes to be paid through AP, and is not on this list you must do the following:

 Have them complete the “2015 IC QUESTIONNAIRE” form.  E-mail the completed form to Vendor Setup ([email protected]) and copy your production finance point person.  Use this exact subject line in your e-mail: “PAS REVIEW.” (PAS = Production Accounting Software)  Vendor Setup will let you know when they are approved as a vendor and thus an Independent Contractor, or not.

When a new Independent Contractor is approved please forward a copy of the approval e-mail to your finance point person.

ADDITIONAL INFORMATION ABOUT INDEPENDENT CONTRACTORS

Independent contractors are not employees and should not be treated as such. They are independent agents who retain the right to control the manner and means by which they perform services and who are not subject to VMN’s control except as to the final result to be accomplished.

If a person has been given independent contractor status by the Independent Contractor Specialist, their responsibilities can not include any of the following:

 Using petty cash  Approving invoices  Hiring or supervising VMN employees (staff or freelance)  Enter into any agreement on behalf of VMN of any of its companies  Their contract must address if business-related expenses will be reimbursed and who will make and manage any travel arrangements. See Contracts section for further information.  They may not receive per diem through petty cash. All contractual business-related expenses must be invoiced by the independent contractor, paid through accounts payable (with the exception of airfare and direct billed hotel).  Airfare may be booked directly by VMN using Carlson Wagonlit Travel. The individual’s independent contractor status must be noted on the production Travel Grid (to be maintained in the Production Files).  If you pay the hotel bills, the production must indicate on the Travel Grid (to be maintained in the Production Files) if an individual is an independent contractor.  It is preferable that the independent contractor uses their own outside office space. However, temporary office space may be provided by VMN.

17  The independent contractor should obtain their own workman’s compensation insurance. If the independent contractor has their own workers comp, you must obtain a copy of their certificate. If the independent contractor does not have workers comp your production point person should be contacted. They will contract the Risk Management Department to ensure that the independent contractor is properly covered.

Independent Contractors may invoice for equipment rentals.

CALIFORNIA REPORTING OF INDEPENDENT CONTRACTORS

California companies who are required to file Form 1099-MISC for services must notify the state when doing $600 or more in business transactions with independent contractors. The information is provided to the EDD and will increase child support collections by helping to locate parents who are delinquent in their child support obligations.

If the show enters into a contract for $600 or more with an independent contractor, the state's Employment Development Department (EDD) must be notified within 20 days after the contract has been made. If there is no contract, you must notify the state within 20 days after aggregate payments of $600 have been made to the person. There is a penalty for not reporting this information within the allotted time.

It is your responsibility to notify the state. You can get a supply of the required forms (DE 542) by calling 916/657-0529 for 25 or less forms or 916/322-2835 for 25 or more forms. Additional information is available on the EDD web-site at www.edd.ca.gov/taxrep/txicr.htm or by calling 916/657-0529. The Central Productions LLC Employer ID number is 27077486.

INSURANCE: LOST OR STOLEN PROPERTY

Each individual is responsible for safeguarding their belongings while working on a production. The production will not reimburse crew members for any personal property or cash advances that are lost or stolen while working. This policy includes items such as coats, bags, glasses, cameras, etc., which may be lost or stolen.

If VMN property is lost or stolen, the individual who had the property assigned to him/her must document the loss or theft, and your production point person must be contacted.

INTERNATIONAL SHOOTS

There are many considerations to be taken into account when producing a show outside of the US. Your show’s production point person, the BALA representative, and the payroll company will need to be consulted in advance of any international shoots.

18 JOURNAL ENTRY & TRIAL BALANCE SET UP

TRIAL BALANCE ACCOUNTS

Set up the following trial balance accounts at the beginning of your show.

If your COA is more than four digits you may add zeros in front of the numbers below (ex 0001-01 may be used instead of 01-01).

ASSETS

01-00 BANK 01-01 JPMC CHECKING ACCOUNT

02-00 PETTY CASH As petty cash is distributed set up a separate account for each person including their name and title.

02-01 PC CUSTODIAN: JOHN SMITH 02-02 PC: JOAN ARC - POC 02-03 PC: JACK BLACK – WARDROBE SUP

03-00 P-CARDS As p-cards are distributed set up a separate account for each person including their name and title.

03-01 PCARD: JERRY SMITH – EP 03-02 PCARD: JOAN ARC – POC 03-03 PCARD: JACK BLACK – WARDROBE SUP

04-00 VENDOR DEPOSITS

Set up a separate account for each vendor as refundable vendors deposits are paid out.

04-01 AR: HOLLYWOOD CENTER STUDIOS 04-02 AR: HAPPY LOCATIONS INC

05-00 VMN OFFSETS

SET UP THESE VMN OFFSET ACCOUNTS AT THE BEGINNING OF YOUR SHOW:

05-05 VMN LOCKBOX DEPOSITS

Offset account for deposits sent to the VMN lockbox. See “Deposits” section for instructions on making deposits.

05-10 PAID BY VMN

Offset account for all costs paid by VMN on behalf of your show.

SET UP THESE VMN OFFSET ACCOUNTS ON AN AS-NEEDED BASIS:

19 05-10 TRANSFER OFFICE DEPOSIT TO S2 (example only)

Use accounts starting with 05-10 for transfers to/from other seasons. These should be kept to a minimum.

05-20 AR: PROMOS - PB-1234567.01.1234 (example only)

Use accounts starting with 05-20 for expenses you pay on behalf of another VMN department (such as promos). These are often referred to as “chargebacks”.

You and your producer are jointly responsible for obtaining a VMN code from the applicable department who requested the work if they agreed to cover the cost. This can be either a “Cost Center” a “WBS element” or a “Project code”. You must include this code in your trial balance account description. In the example above “PB-1234567.01.1234” is the “WBS element” that was provided by the Promos department. When you pay out these items code them to the account you created.

You are responsible for letting your production finance point person know when all the costs for a specific chargeback account are finalized so that your production finance point person can process a credit for your show. Review your trial balance periodically and take action as appropriate. If you wait too long or if there is a dispute with the other department your show may end up having to absorb the cost.

LIABILITIES

06-00 CLEARING ACCOUNTS

06-01 AP CLEARING 06-02 NEW REMOTE CLEARING (if applicable) 06-03 HUDSON STREET CLEARING (if applicable) 06-04 CENTRAL PRODS CLEARING (if applicable) 06-05 ON-SITE CLEARING (if applicable) 06-06 KING STREET CLEARING (if applicable) 06-07 CRANETOWN CLEARING (if applicable) 06-08 TRANA STAD CLEARING (if applicable) 06-20 FRB CLEARING (if applicable) 06-21 LRF CLEARING (if applicable) 06-30 VACATION & HOLIDAY ACCRUAL (if applicable) 06-40 PC CLEARING 06-41 PCARD CLEARING

SOURCE CODES

Use source code JE for all journal entries that you enter manually.

JOURNAL ENTRY NUMBERS

You must enter a number for each journal entry.

Your starting number should be: 0001 20 Subsequent entries must be in numerical order (0002, 0003, etc).

JOURNAL ENTRY DATES Journal entries should be posted using the current date. Never backdate your entries.

JOURNAL ENTRY DOCUMENTATION You must print out each journal entry after it is posted and attach any applicable backup. Include any explanations on the print out or backup that may be helpful for the wrap accountant or an auditor.

JE APPROVALS All journal entries that have a cost effect must be approved by the Line Producer. For example, entries applying a vendor deposit to a cost account.

JOURNAL ENTRY LOG

As part of your wrap requirements you must print a journal entry log and file it in a “Journal Entry Log” file. Make sure that every journal entry has proper documentation.

How to print the journal entry log in PSL:

1. Access Bible report module 2. Blank out start date & end date (to capture all) 3. In the “Source” field, press F2 for picklist and select “JE” only

4. Click spreadsheet button 5. Choose “No” for including formatting and totals 6. In excel: a. Sort by JE number b. Format as needed c. Print

21

HOW TO RECORD MISC JOURNAL ENTRIES

VMN Lockbox Deposits

To record checks you send to the VMN Lockbox for deposit. You must also carefully follow the instructions for making deposits in the “Deposits” section of the Production Accounting manual.

Debit (+) Credit (-) 05 -05 VMN LOCKBOX DEPOSITS 100 Varies - PC account, AR account, cost account, etc 100

LRF payroll

You will not receive PSL payroll upload files for LRF payroll. Therefore you must record LRF payroll via manual journal entry as follows.

Debit (+) Credit (-) Applicable labor and fringe account(s) 100 06-21 LRF CLEARING 100

HOW TO RECORD MONTHLY GL RECONCILIATON JOURNAL ENTRIES

VMN uses a corporate software called SAP. Your production finance point person will complete a monthly GL Rec (General Ledger Reconciliation) between SAP and your show’s PSL database.

You are responsible for booking entries on the GL Rec as instructed by your production finance contact in a timely manner. See below for instructions on how to book common entries found on the GL recs.

Chargebacks per the monthly GL recs

To record a credit received on your monthly general ledger reconciliation for chargebacks. This will clear your 05-2X AR account.

Debit (+) Credit (-) 05 -10 PAID BY VMN 100 05-2X AR: PROMOS - PB-1234567.01.1234 100

22 Paid by VMN per the monthly GL recs

If someone on your show orders something through VMN or uses a VMN internally provided service (such as travel, shipping, music licenses) they will need to provide your show’s budget code, called a “WBS element” or “project”. Your show’s budget code is the portion of the ledger code is listed at the top of your check run approval request form. The entire ledger code is listed in this format: LO-1000000.01.1234. Please make sure your Coordinator, Line Producer, etc give out the proper code for your show when they are asked for it. Please note that this code changes each season. Please give your staff and crew are the new code at the start of each new season.

These charges will appear on your monthly General Ledger Reconciliation. To record costs paid by VMN on behalf of your show do the following entry:

Debit (+) Credit (-) Applicable cost account (i.e. shipping) 100 05-10 PAID BY VMN 100

Internal Support per the monthly GL recs

To record MTV internal support costs paid by VMN on behalf of your show as noted on your monthly General Ledger Reconciliation.

Debit (+) Credit (-) Internal Support account 100 05-10 PAID BY VMN 100

FRB/LRF per the monthly GL recs

Debit (+) Credit (-) Applicable clearing acct (i.e. 06-20 FRB CLEARING) 100 05-10 PAID BY VMN 100

New Remote, Hudson Street per the monthly GL recs

These costs will appear on the GL Rec as “Labor for Smith, J. w/e 8/22/15”. The JE should be entered like this:

Debit (+) Credit (-) Applicable clearing acct i.e. 06-02 NEW REMOTE CLEARI 100 05-10 PAID BY VMN 100

Please see the payroll section for information regarding the various VMN payroll entities.

23

KIT RENTALS

Kit rentals are fees paid to hair, make-up and other freelance crew members for the use of vehicles, tools, machinery, and similar equipment while performing a service for VMN

Kit rental fees must be submitted on a timecard during the week of service and use of item. A detailed description of the kit rental must be documented on a payroll company kit rental form. If an itemized kit rental form is submitted the kit rental does not need be taxed. If no itemized form is submitted then the payroll company needs to tax the kit rental.

Crew members may not invoice and be paid via AP for rentals. All rentals provided by crew members must go through payroll.

Please see the “Equipment Rentals” and “Independent Contractor” sections for information regarding rentals from Independent Contractors.

MINORS (CHILD PERFORMERS)

Minors are individuals under the age of 18. It is important to realize the risks associated with hiring minors. If the production is considering hiring a minor, they should consult with BALA or your production point person. There are laws in place to protect the welfare of the child performer when they are employed in the entertainment industry. These laws specifically safeguard wages, education, and the welfare of the child performers.

It is important to realize that a child performer cannot be employed until they have submitted the appropriate permits/paperwork to VMN. There are stiff penalties for any infringement, including preventing VMN from renewing their Certificate to Employ Minors (i.e., ability to employ any child performers).

When processing minor payments through payroll, the following guidelines must be followed:

 All minor work permits must be obtained prior to the minor working on a project.  Minor work permits should be kept in the show files. Do not send Minor work permits to Cast and Crew.  Minors may be set up on contractual deal memos only which must be sent to Cast and Crew. The Parent/Guardian of the minor employee must sign the deal memo on behalf of the minor in order for the minor employee to be paid.  The printed name and signature of the Parent/Guardian of the minor employee is required on all trust account forms. This form is used to set up the electronic payment for the 15% that must go to the minor's trust account.

If minors will be hired on your show, you may ask your production finance point person for the supplement to this manual that covers minors.

24 PAYROLL

PAYROLL ENTITIES

Here is some general information regarding the different signatories. Please contact your Finance Manager to confirm which payroll entities your show will be using.

Cranetown Media is a Teamster and IATSE signatory. Cranetown is the production company that should be written on all timecards. The invoices should be processed in the same manner as regular payroll invoices: download payroll file and cut check to Cast & Crew. The only difference will be that “Cranetown” will be listed as the name of the production company on the C&C invoices. When downloading your payroll file offset using 06-07 CRANETOWN CLEARING.

Trana Stad is a WGA signatory. Trana Stad is the production company that should be written on all timecards. The invoices should be processed in the same manner as regular payroll invoices: upload payroll file and cut check to Cast & Crew. The only difference will be that “Trana Stad” will be listed as the name of the production company on the invoices. When downloading your payroll file offset using 06-08 TRANA STAD CLEARING.

FRB is the Teamster and IATSE signatory on all MTV union shows. Please use your show’s COA for coding invoices as you normally would. You will not pay the Cast & Crew FRB invoices. The C&C FRB invoices will be paid by VMN and you will receive entries to do to record the payments on your monthly GL rec. When downloading payroll, please offset using 06-20 FRB CLEARING.

LRF is the WGA signatory on all MTV shows. You will not be able to download the payroll invoices into PSL directly. All invoices need to be manually journaled into PSL (offsetting account 06-21 LRF CLEARING - see “How to Record Journal Entries” for procedure). Use your show’s COA when coding timecards. You will not pay the payroll company LRF invoices. These will be paid by VMN and you will receive entries to do to record the payments on your monthly GL rec.

On Site is the DGA/AFTRA signatory on all MTV shows. Please use the show COA for coding. When downloading payroll, please offset using 06-05 ON-SITE CLEARING. NOTE: accountants are responsible for paying the C&C invoice for all On Site payroll. Please make sure all invoices are paid on time. If you have any questions or issues, please contact your Finance Manager.

King Street is the DGA/AFTRA/WGA signatory on all TVL shows. Please use the show COA for coding. When downloading payroll, please offset using 06-06 KING STREET CLEARING . You are responsible for paying the C&C King Street invoices.

Central Productions is used for AFTRA, DGA, WGA, and non-union payroll on Comedy Central. Standard payroll process: download payroll file and cut check to Cast & Crew.

25 New Remote is the MTV non-union entity, Hudson Street is the TVL non-union entity, and New 38th Floor is the Spike TVL non-union entity. Timecards are processed by the show accountants through C&C. However when coding the timecards please use the SAP chart of accounts (contact your Finance Manager for this information).

Oftentimes, when you download the payroll detail file from Cast & Crew, you will see errors on the payroll report. You will have to recode the employee to appropriate categories using your show’s COA.

For example, the SAP coding that you put on your timecards may look like this:

LO-1009999.01.2138

But before posting your payroll you will recode to your COA which (if 4 digits) may look like this:

21-25

Please offset the payroll invoice to the proper clearing account when downloading:

06-02 NEW REMOTE CLEARING 06-03 HUDSON STREET CLEARING

You will not pay the Cast & Crew New Remote, Hudson Street, or New 38th Floor payroll invoices. These will be paid by VMN and you will receive entries to do to record the payments on your monthly GL rec.

PAYROLL PAPERWORK

Please see “Contractual Payments” section for contract policies. In addition to a contract or COA, if necessary, you will need to have all the following paperwork on file:

 Any paperwork required by the specific payroll company, such as start/close forms.

 Deal memos provided by Viacom where available. If not available standard payroll paperwork may be used. Do not re-purpose Viacom deal memos by changing the company name at the top. Many issues can come up as a result of this, including a conflict between union and non-union policies.

 Please ensure that e-mail addresses are filled out legibly in the appropriate box on all start paperwork. E-mail addresses are sometimes used for important communications from the payroll company or VMN HR.

 W-4 (not needed for loan-outs)

 Completed and signed I-9 (please give out the most current I-9 form available).

All payroll company deal memos/start close forms and all timecards must be signed by both the production accountant and the line producer.

Hours should be filled in on all non-exempt employee timecards. Hours should not be filled in on timecards for exempt employees.

We are depending on you to pay everyone, including talent, extras, and Executive Producers in a timely manner.

26 Please be proactive about obtaining necessary payroll paperwork from talent and Executive Producers so that they may be paid timely per their contract.

If any staff or crew members want their payroll checks cashed, they will need to handle the check cashing at their own bank.

INDEPENDENT CONTRACTORS

Independent contractors are considered vendors and may be paid through Accounts Payable as opposed to employees who must be paid through payroll. Familiarize yourself with the Independent Contractors section as Independent Contractor issues come up on almost every show.

ON-SITE PAYROLL CHECK PRINTING

Please contact your production finance point person if you would like to request on-site payroll check printing.

EXTRAS PAYROLL

Shows must notify the production or production finance point person before contracting with an extras payroll company as not all extras payroll companies are approved vendors.

SENSITIVE PERSONALLY IDENTIFIABLE INFORMATION: You must safeguard and maintain the confidentiality of Sensitive Personally Identifiable Information. Sensitive Personally Identifiable Information includes:

 Social Security number ("SSN") or any information derived from the SSN  Driver’s license number;  Home address or telephone number;  Passport number or other government issued identification number;  Salary information

Do not keep unattended files containing Sensitive Personally Identifiable Information open on your desk.

All unattended Sensitive Personally Identifiable Information in hard or paper copy must be kept in locked filing cabinets, desks and other secured storage containers and should be accessible only to those Users who require access to perform their jobs.

Users should not include Sensitive Personally Identifiable Information in the body of e-mails or other electronic communications.

Avoid transmitting Sensitive Personally Identifiable Information wherever possible. If you are sending a document electronically that may contain such information, confirm there is no Sensitive Personally Identifiable Information hidden within the body of the document, for example in hidden columns in a spreadsheet.

If a situation arises where there is a need to transmit Sensitive Personally Identifiable Information, take the following steps:

 Protect the Sensitive Personally Identifiable Information contained in the electronic document by, for example, encrypting in before sending it over any public network or transmitting it wirelessly. Acceptable encryption processes are: RSA (Rivest-Shamir-Adleman), AES (the most current Advanced Encryption Standard) and RC-2 or RC-4. (Note: in Excel, go to tools/options/security, and click “Advanced” to encrypt).

27  Password protect the document before sending it to a recipient authorized to receive it;  Separately communicate, preferably via telephone or some method other than e-mail, any password required to access an electronic document containing Sensitive Personally Identifiable Information; and  Verify the recipient's e-mail address prior to sending.

If a document containing Sensitive Personally Identifiable Information must be compiled and it is reasonably practicable to do so, you should:

 Redact Sensitive Personally Identifiable Information; and  Avoid including multiple types of Sensitive Personally Identifiable Information in the same document.

You must immediately report to production finance any actual or suspected unauthorized access to Sensitive Information.

CALIFORNIA TERMINATIONS

If a California freelance employee is terminated for any reason other than the end of assignment, you must immediately contact Payroll before the last day of employment. Per California state labor law, the employee must be paid immediately upon termination. In addition, if the terminated employee applies for unemployment and meets the state requirements, Payroll will file the Unemployment Insurance Form once it is received from California EDD (i.e., the terminated employees is responsible for initiating this process). For questions contact your payroll coordinator. P-CARDS

REQUESTING NEW PSL P-CARDS

Please discuss your shows P-card needs with your Production Finance point person as soon as possible. Your point person will need the following information to order cards for you:

Cardholder Name: This person will be listed in Citi as the primary contact/decision maker for the card. This does not need to be the person actually using the card to make purchases. Generally the accountant should be the cardholder. Please see the “Cardholder” section for more information.

Name on Card: Optional. Person actually using the card to make purchases. This will be embossed on the actual card and should match the person’s identification.

Show/Production Name to emboss on card: Optional. Will be embossed on the actual card. Maximum 24 characters including spaces. Examples: Happy Show Props Card 1, Happy Show S5.

Production Name: Production name this card will be linked to (example: Happy Show Season 5). This will be used to like to the correct “Level 6 Hierarchy” with Citi and determines statement grouping.

Identifying # : VIN (production finance can get your VIN number if you don’t know it).

Requested Card Limit: Note that limits over $20K require additional VMN approval

Cardholder Complete Business Mailing Address: Address must include floor, suite, or building number for delivery purposes along with City, State and zip. If the cards are delivered straight to you from the bank you will need to send your production finance point person a list of the card numbers before the cards can be used (more information below).

Phone Number: Phone number of the cardholder listed in Citi. This will be the primary number for Citi to contact if there are problems with the account.

28 Email Address: Email of cardholder listed in Citi. Citi will use this email address to send important information or fraud documentation.

If new cards go straight to you, e-mail your production finance point person a list of the card numbers before giving out the cards. This is critical as your production finance point person will need to send your card numbers to PSL support. PSL support needs the card numbers to feed the card transactions into your PSL show database.

PAYMENTS

Payments for all VMN P-cards with a PSL feed must be made by the accountant. You must ensure that all payments are received by Citi by the 21st each month. The due date is also shown on the statement.

Make checks payable to: Citibank Commercial Card

Send payments to: PO Box 183173 ATTN: 5405 9800 0710 8254 Columbus, OH 43218-3173

The number in the ATTN line is the main billing account number. This must be on the face of the check in order for Citi to apply your payments to the correct account. Citi will not apply payments to individual p-cards.

CARDHOLDER

There can only be one cardholder per card. Per Citibank’s terminology the Cardholder is the person responsible for the account and also the card user. Generally the accountant be the cardholder for Citi’s purposes - even though it’s often a staff or crew member actually using the card.

The Cardholder can:

 Receive/dispute fraud transactions. Citi will only contact the cardholder regarding fraudulent transactions.

 Request replacement cards if lost/stolen. Replacement cards will be mailed to the cardholder’s attention.

 Ask Citi to close cards.

 Authorized to call Citi 24 hour automated number for balance inquiries and transaction history or speak directly with Citi Customer Service.

 When requesting new cards the cardholder’s name, address, phone number, and identifying # must be given to the card team who must give this information to Citi before the cardholder can speak with a Citi representative.

 The cardholder will need to provide their identifying # to Citi as verification. The identifying # will be your VIN number. You must know your VIN number before reaching out to Citi. If you do not know your VIN number please get if from your production finance point person before you call the bank.

29

ONLINE ACCESS- STATEMENTS

You will not receive a hard copy of your statement from the bank. You must go onto the Citi website to view your statements.

As the Accountant/Cardholder, follow the instructions below to get Citi website statement access for all cards associated to you.

1. Access Citi www.citimanager.com/login 2. Click on “Self-Registration for Cardholders” under “First Time Users” 3. Select the registration option that applies to you:  Select option 1 if you have received an email with your registration ID and passcode after your first transaction.  Select option 2 if you have not received a registration ID and passcode. When prompted, you will need to enter your name, address (business address linked to the card), and account number EXACTLY as it appears on the card. 4. Once the registration process is complete, you will be prompted to log onto the system using your newly created user ID and Password. 5. Account access will be available immediately following the authentication process to ensure your access is secure going forward.

If you encounter any difficulties with website registration or need navigation assistance, call the number on back of the PCard (Citi helpdesk 888-247-2650) and follow the prompts to reach the Citi Manager Helpdesk for assistance. You will need to provide your identifying # which will be your VIN number (see the cardholder section). The reporting access link included and the PDF “Citi Online Banking” instructions are below. Please read carefully. Citi reports may crash if too many filter links are used. The report you will generally use is:

 VMN PSL Statement and Spend Report o Gives you the ability to pull statement data by Show/Production and also doubles as a spend report. o It’s best to download the data into Excel prior to removing columns to fit your needs. www.citimanager.com/login

Citi Online Banking.pdf

You may ask your production finance point person to obtain online access for additional people (for an assistant, for example). Allow a few days for the request to be processed.

CARD CHANGES

Please reach out to your production finance point person to request any of the following changes. Allow a few days for any changes to take effect:  Change the credit limit  Change the cardholder

You must request new cards for each new season.

CLOSING CARDS & INACTIVITY

Let your production finance point person know when cards can be closed at the end of production. 30 Cards are automatically reduced to a 0 limit after 3 months of inactivity. Cardholders are notified prior to the reduction and have 5 business days to respond to [email protected] if the cards should remain active. If you need to reinstate a card that has been reduced please contact your production finance point person and include the PCard name and last 6 of the card number. When requesting that a card be reinstated check the card expiration date to make sure the card has not expired. If the card has expired and a new one was never received, the cardholder must contact Citi 800-248-4553 for a replacement.

RECONCILING CARDS

You VMN Citibank P-card transactions will feed directly into PSL. You may reconcile them in PSL following PSL’s usual process. Reach out to PSL support if you have any problems or questions.

P-CARD POLICIES

Each person must sign a Viacom Media Networks Production P-Card Acknowledgement Form before using a P-card. Original receipts are required.

The P-Card program does not provide liability insurance to cover any unauthorized usage. Therefore, P-Card numbers and physical cards must be secured and access restricted to those individuals whose job responsibilities necessitate use of the card, as the risk of fraudulent activity going undetected is increased when multiple individuals know the same card number.

Using a P-Card

It is your responsibility to communicate the P-card policy to all users.

If individual names are not stamped on the cards a P-Card Sign-Out Sheet should be used to assign responsibility and liability for any unauthorized charges to the individual using the P-Card.

P-Cards function like regular credit cards and can be used worldwide at any location that accepts MasterCard. The individual using the P-Card must sign their name on the merchant receipt.

P-Card - Required Documentation

Original receipts must be obtained for all P-Card purchases and must be submitted as part of the P- Card reconciliation. All receipts must include a detailed explanation as follows:

• First and last name and title of the employee who is incurring the expense • Date/time of the expense • Name of the vendor/restaurant where the expense took place • Detailed purpose of the expense (i.e., what was purchased and why)

Car Rentals

Receipt and booking confirmation from CWT must be submitted. Rental vehicles should be refueled before returning to the agency. Make sure you don’t select the Fuel Purchase Option.

31 Car Service

Receipt and booking confirmation from CWT must be submitted.

Hotels

A hotel folio/ invoice and the room booking confirmation from CWT must be submitted.

Meals

An itemized meal receipt must be submitted with the reconciliation, including the names of all attendees present (full name & title). The per person charge must be reasonable. Reasonable means meals that are similar in cost and nature to what an employee might ordinarily eat if they were paying for it themselves. Meal expenses that are considered excessive may be considered personal expenses and require reimbursement to the company.

Taxis

P-Cards may be used for taxi rides on production runs when the production employee is carrying large amounts of petty cash, equipment, props, tapes, or if the production employee is working before 6:30 am or past 9 pm.

In addition to the standard documentation required for all P-Card receipts, the following information must be documented:

• Point of origin

• Destination

• Employee(s) taking the trip

Tip Guidelines

• Tips are valid business expenses within the following guidelines: • Skycap: $2-3 per bag • Parking Valet: $2-5 • Porters/bellperson, etc.: $2-3 per bag upon check-in/check-out • Maid service: $2-3 per day • Meals: 20% (be sure tip has not already been included on the bill) • Taxi: 20% (if not included in the charge).

Tips in excess of the amounts above are considered personal.

P-Card - Card Exception Form

A Card Exception Form must be completed when:

• A vendor cannot provide a receipt • Generic tape run is the only support provided by the vendor • The dollar amount of the receipt is hand written 32 • A receipt is missing • Important information is missing from the receipt (i.e. Vendor name is not present on receipt)

In addition to the standard documentation required for all P-Card receipts, a Card Exception Form must include the following:

• A clearly documented explanation of why the exception form is being used • Vendor Name • Amount • Date of Expense • Card Name • Last 6 Digits of Card • Cost Center/ WBS Element • Expense Category • Signature of the employee • Signature of the budget owner • Signature of VP (if expense is over $250) • Attach any available supporting documentation

The completed and approved Card Exception Form must be submitted as an attachment along with the employee’s expense report.

P-Card - Prohibited Usage

Employees must never use the P-Card for personal expenses. Using P-Cards for personal expenses will result in disciplinary action up to and including termination of employment.

P-Cards may not be used for:

• AIRFARE - these charges must be done through CWT.

• ALCOHOL – unless required for the production

• MILEAGE - should go through payroll.

• GAS – for employee personal vehicles may not be paid – pay as mileage through payroll.

• LABOR/SERVICES – should go through payroll or AP.

• PER DIEM - Expensing meals during a Per Diem period will not be reimbursed. Per Diem includes meals and incidental expenses.

• PERSONAL EXPENSES – Our policy strictly prohibits the use of Viacom P-Cards for personal expenses. Also, employees must never use a personal credit or debit card to pay for approved business expenses. Such use will result in additional audit scrutiny and may not be reimbursed by the company.

• RECURRING CHARGES – No types of subscriptions should ever be on auto pay.

Rentals should go through AP when possible but may be charged to a P-card.

33 On rare occasions policy exceptions may be allowed. In these instances the exception must be approved in advance by VMN. Please contact your production finance point person to discuss exceptions.

In situations where the production could not comply with certain P-Card policies due to situations beyond their control, a Card Exception Form detailing what happened must be completed.

See Card Exception Form section for further detail.

Exceptions will be evaluated on a case-by-case basis and acceptance should not be assumed. Viacom may request more documentation from the production to substantiate these charges. Viacom reserves the right to cancel P-Cards at any time for unusual or excessive charge.

PER DIEM

Per diem can only go through payroll- no cash is allowed.

Per diem payments are paid to employees to cover the daily cost of meals, room service, laundry, dry cleaning, personal phone calls, and tips for personal services (e.g., housekeeping, food servers, luggage handlers) while an employee is on location.

Per diem payments are paid to employees only, and may not be made to any entities who are paid by Accounts Payable. See Independent Contractor section on how to pay travel and business expenses to Independent Contractors.

If an employee receives a per diem and the length of stay is subsequently reduced, he/she is responsible for reimbursing the show for the “leftover” allowance.

The non-taxable per diem rate varies by city and state. Note that rates are set by the IRS and change yearly (on October 1). The IRS website with per diem info is: http://www.gsa.gov/portal/content/104877

Rates provided by the IRS represent the maximum non-taxable amount allowable per day. Any individual receiving an amount exceeding the IRS limit must be taxed on the additional amount through payroll.

Your files must include the following information about per diem paid:

 Number of days and specific dates  Total amount per day (to be filled in by the Production Accountant/Finance Manager)  Total extended amount (number of days x amount per day)  Location  Production name

Producers may not approve their own per diem. Producer per diem must be approved by VMN production management.

PETTY CASH

Inform your staff & crew that accounts should be opened with vendors whenever possible. Petty cash is used for production expenses only when all other forms of payment have been exhausted (e.g., vendor will not invoice, a check cannot be cut, P-cards not available or accepted). In situations where a vendor will not accept a check, but the purchase will exceed the petty cash limit set forth below, a staff or crew credit card may be used if absolutely necessary and submitted for reimbursement via AP.

34 All staff and crew must sign a petty cash advance form in order to receive cash. Petty cash floats are not to exceed one week’s gross pay, with a cap of $3,000. No employee may receive a float higher than $3,000 without production management approval, even if their weekly pay exceeds this amount.

Individual petty cash purchases may not exceed $250. Only original receipts are accepted. Petty cash receipts must be turned in within 30 days.

All petty cash envelopes/receipts must include:

 First and last name and title of the employee who is incurring the expense  Show name  Date of the expense  Name of the vendor  Detailed purpose of the expense (i.e., what was purchased and why)  Signature of the employee  Signature of the Accountant  Signature of Line Producer or above. If the individual spending the petty cash is the Line Producer or Executive Producer, a scan of the front of the petty cash envelope must be e- mailed to production finance for approval by your CC production point person. You may assume there are no problems with the reimbursement unless we tell you otherwise.

Accountants should code petty cash. It may be necessary for a staff or crew member to note applicable episode or set numbers.

In addition to the above, certain expenses require additional documentation (e.g., meals require a complete list of all employees attending, including title). These additional requirements are detailed, by type of expense, in the Acceptable Usage - Petty Cash section.

Producer business meals must be submitted on a check request form (see travel section) and reimbursed via check. They may not be put through petty cash.

A Petty Cash Exception Form must be completed when:

 A vendor cannot provide a receipt  Generic tape run is the only support provided by the vendor and the amount is over $50  The dollar amount of the receipt is hand written (including chits) and exceeds $50  The receipt is over $250 due to extenuating circumstances.

In addition to the standard documentation required for all petty cash receipts (mentioned above), a Petty Cash Exception Form must include the following:

 A clearly documented explanation of why the exception form is being used  Signature of the employee  Approval by the Line Producer or above  Signature of the Production Accountant  Attach any available supporting documentation (e.g., chits)

Also note:

 Crew meals are an automatic exception to the $250 cash limit.  Lost receipts are not reimbursable, even with an exception form.  Parking meter costs may be recorded on a petty cash exception form.  Receipts should not be “split” to stay under the $250 limit.  When a vendor will not accept a check and an account may not be set up (please set up accounts when possible at vendors such as Costco), petty cash may be used for the purchase of craft service items. A petty cash exception form must be used for all craft service receipts over $250.

35 Petty cash must be carefully guarded at all times. If an individual responsible for petty cash loses cash they must pay back VMN.

TIPS

• Tips are valid business expenses within the following guidelines: • Skycap: $2-3 per bag • Parking Valet: $2-5 • Porters/bellperson, etc.: $2-3 per bag upon check-in/check-out • Maid service: $2-3 per day • Meals: 20% (be sure tip has not already been included on the bill) • Taxi: 20% (if not included in the charge).

Tips in excess of the amounts above are considered personal. The employee will not be reimbursed (if the expense was paid in cash) and may be required to reimburse the company if necessary.

LOCATION FEES

Emergency location fees under $250 may be paid with petty cash. Obtain a W-9, and a location agreement is always required.

GUEST/PERFORMER RELEASES

Petty cash may never be used for extras, talent, or any other individuals whose services the production is directing. Performers who are taking direction must always be paid through payroll. “Man on the street” appearances may be paid by petty cash when necessary, if the individual will be paid a one-time payment of $250 or less. A copy of a fully executed Guest/Performer Release must be submitted as support through petty cash. See Music and Media Licensing section.

TAXIS & MASS TRANSIT

Petty cash may be used for taxi rides on production runs when the production employee is carrying large amounts of petty cash, equipment, props, tapes, or if the production employee is working before 6:30 am or past 9 pm.

For both taxi rides and mass transit rides, in addition to the standard documentation required for all petty cash receipts, the following information must be documented:

· Point of origin

· Destination

· Employee(s) taking the trip

PROHIBITED USAGE- PETTY CASH MAY NOT BE USED FOR THE FOLLOWING:

HOTELS- billing should be set up. If this is not possible a personal credit card may be used. AIRFARE- Carlson Wagonlit Travel should be used (see travel section) CAR RENTAL- billing should be set up. If not possible, a personal credit card may used. MILEAGE- should go through payroll. GAS- for employee personal vehicles may not be paid- pay as mileage through payroll. PER DIEM- pay through payroll. TELEPHONES/CELL PHONES/ETC- pay through AP 36 KIT RENTALS- pay through payroll WRAP PARTIES CREW/STAFF LABOR- pay through payroll only, unless approved as an independent contractor in which case they may be paid through AP. No one may be paid through petty cash. This includes people who “are doing us a favor” or “just a PA working for one day”.

SAFE HANDLING OF PETTY CASH

Common sense, care, and caution must be exercised when carrying money and/or receipts. An employee who is advanced the petty cash will be financially liable for any missing petty cash or receipts. If a signed petty cash chit is used, the liability transfers to the person who signed the petty cash chit.

Every effort must be made to safeguard petty cash and receipts at all times. Accountants are required to keep cash in a safe, preferably fireproof. Be aware that keeping cash and receipts in a locked drawer is not sufficient, as there have been incidences of theft from office drawers.

Under no circumstances may a show absorb the cost of any missing petty cash. The employee must reimburse VMN for any missing petty cash.

RECONCILING PETTY CASH

It is your responsibility to monitor your staff and crew and make sure they reconcile their petty cash properly and timely. This is an extremely important part of your job. You need to diligently follow up on petty cash advances, especially at wrap. Make sure you quickly deposit any personal checks written by staff and crew members closing out their petty cash. These checks must be sent to the lockbox using Express mail that requires a signature on delivery.

PRIZES

Please contact your production finance point person if prizes will be awarded. The appropriate BALA Representative must be consulted to discuss necessary contracts and releases when a production involves contestants, prize winners, or sweepstakes.

By law, winnings of $600 or more are considered taxable income and VMN is required to report each individual being awarded $600 or more (by VMN) to the IRS. You will need to obtain W-9’s and flag payments appropriately in the system.

Be aware of tax implications to the contestant while establishing contests and prizes. For example, if VMN charters a plane for $30,000 to send a contestant somewhere, that contestant will be taxed on $30,000.

RESIDUALS

You are required to turn information and copies of contracts, timecards, etc over to the residuals administrator so that residuals can be paid in a timely and accurate manner. See the Residual Checklist for instructions.

Information must be submitted within one month of completion of post production or one month prior to the initial airing of an episode and/or series, whichever occurs first. Some productions are required to submit WGA and DGA residuals documents quarterly. Please confirm the specific requirements on your show with your production finance point person.

If you don’t have all the necessary information by your last day you may turn the residuals information over to the Post Production Accountant to complete. However please note that you are responsible for completing most of the information before turning it over to the Post Production Accountant. You will likely need to work on collecting information and scanning documents throughout the show as talent is being paid in order to accomplish this. Originals should be kept in the general production accounting files. 37

If your show is episodic you will need to know which actors appeared in each episode. If this information is not available when you are completing the AFTRA timecards, your producer and/or post producer will need to give you a list detailing this information once the shows are edited together. Confirm with your producer at the beginning of the show that there is a system in place to keep track of this information.

RIGHTS AND CLEARANCES

Rights and clearances are managed through the VMN Music & Media Licensing department (MML).

There is a MML kick off call at the start of each show that includes the Line Producer. During this call it will be clarified whether the show will pay music licensing invoices, or whether all the music payments will get paid through the corporate MML department (in which case the charges will appear on your month-end GL recs). Please consult with your Line Producer or production finance point person if you have any questions about whether you will be paying MML invoices.

Your Line Producer should refer to the production manual and contact their production point person with any questions regarding obtaining releases. There may be some situations where the show may need to pay someone off a release.

GUEST/PERFORMER RELEASES

Signed Guest/Performer Releases are essential for anyone appearing recognizably before the VMN cameras, including performers, interviewees, and individuals on the street who are stating their opinions. Guest/Performer Releases are legally binding documents that grant VMN certain rights.

PAYING GUESTS/PERFORMERS TO APPEAR IN A PRODUCTION

If a guest/performer is to be paid, Guest/Performer Releases must be customized. Your producer should contact your BALA Representative.

MINORS GUEST/PERFORMER RELEASES

Anyone under the age of 18 appearing in front of VMN cameras is required to have a parent or guardian co-sign for the release to be legally binding. Your producer should contact their production point person and/or BALA Representative whenever the production is planning on using a Minor.

UNCOOPERATIVE GUESTS

Occasionally, a guest/performer may refuse to sign a release or insist on making changes to the release. In these instances, your producer should contact BALA immediately to respond to any issues of the guest/performer. If a guest refuses to sign, the release should have the top box completed and the words “GUEST WOULD NOT SIGN” written across the bottom.

TALENT AGREEMENTS

Sometimes a guest release does not satisfy the agreement between VMN and talent/performer (e.g., certain artist appearances/performances, show hosts, or when VMN is paying for travel) and a more detailed talent agreement is required. Your producer should contact their BALA representative to determine if a talent agreement is necessary for your show.

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38

TAX CREDITS

If your show is eligible for a state or local tax credit you will need to track qualified expenses and produce reports as needed. Exact needs will vary based on the state. Please check with your Line Producer and Finance Manager to find out what you will need to do to ensure your show gets any applicable tax credits.

TRAVEL & EXPENSE POLICIES

All travel related expenses and producer business meals must be submitted for reimbursement on a check request and reimbursed via accounts payable. Petty cash is not acceptable for these expenses. All requests for reimbursement should be submitted no later than 90 days from the date of the invoice or receipt. (See Reporting Procedures for additional reporting instructions and requirements.)

All expenses submitted for reimbursement by a Line Producer or Executive Producer must be approved by your show’s production point person. This approval should be readily available in your files

AIR TRAVEL

Carlson Wagonlit Travel must be used on all studio shows. The person booking travel must do a purchase order. CWT will bill VMN directly and the charges will appear as adjustments on your month end “G/L reconciliations”. If anyone on your shows purchases a ticket at an airport or through an unauthorized travel agency without prior approval from your show’s production point person, do not reimburse them. Contact your production finance point person.

CLASS OF SERVICE

All employees should travel in the least expensive available seat in coach class unless a higher class of service is included in a contract, required by a union, or if prior approval has been received by the show’s production point person.

TRAVEL INSURANCE

Your Line Producer should contact your show’s production point person if they have any questions regarding travel insurance.

PRIVATE CHARTER FLIGHTS

Your Line Producer should contact your show’s production point person if a charter flight is needed for your show.

CAR RENTAL

Shows are required to book all rental cars through Carlson Wagonlit Travel when appropriate (this does not apply to specialty vehicles such as cube trucks, SUV’s, and minivans).

Car rentals should be returned with a full tank to avoid expensive gas prices charged by the rental car companies.

INSURANCE

39 Your Line Producer should consult the production manual and contact their production point person regarding car rental insurance.

HOTEL

Central Productions shows are required to book all hotels through Carlson Wagonlit Travel. You should set up an account directly with the hotel so that you can receive and pay the bills.

An account should be set up with the hotel whenever possible. If an account cannot be set up, you may reimburse hotel fees placed on a credit card. A check request form must be filled out, and an itemized hotel invoice (with a “zero” balance, verifying payment) must be provided.

Per diem covers the cost of things such as in-room movies and mini-bar costs. These items should not be reimbursed.

PERSONAL AUTOMOBILE USAGE

Gas may not be reimbursed for personal vehicles. Mileage should be reimbursed at the current IRS rate which may be found here: http://www.irs.gov/Credits-&-Deductions/Individuals/Standard-Mileage-Rates-Glance

The employee being reimbursed must fill out a Mileage Form. All mileage should be paid through payroll. AP is acceptable only if there are unusual circumstances.

Costs associated with personal automobile damage is the sole responsibility of the car owner. Employees are responsible for being covered by insurance that meets the minimum requirements of the state or county in which they will be driving. You are not required to keep a copy of the employee’s insurance on file, however.

TRAFFIC VIOLATIONS ON PERSONAL CARS

Parking tickets received by production employees while performing VMN functions may be reimbursed, within reason.

You may reimburse the individual through AP with the Line Producer’s approval provided you obtain a copy of the Parking Ticking Form, a copy of the ticket, and proof of payment (e.g., cancelled check). You may not reimburse for any late fees.

Fines for traffic violations (red light violations, speeding, etc) are not reimbursable.

MEALS

In addition to the standard documentation required for all receipts, the names of all employees who participated in the meal (as well as titles and affiliations) must be documented.

The most senior person in attendance must always pay for and report the meal and entertainment expenses. Under no circumstances may anyone in attendance approve meal and entertainment expenses, where necessary the reimbursement must be submitted to CC Production for approval.

Employees receiving a per diem may not be reimbursed for meals. Per diem covers the daily cost of meals.

Meals can never be delivered to a personal residence.

Receipts for meals cannot be coded to craft service.

BUSINESS MEALS

Business meals submitted by Producers on a check request form are reimbursable within reason. If you have any questions regarding specific meals, contact your production finance point person. 40 • Original credit card receipts are required for all expenditures. Tear chits (bottom of a restaurant bill) are not acceptable as documentation for meal expenses. If the establishment does not accept credit cards, a tear chit will be accepted with the approval of the show’s Production point person.

• The date, place, person(s) present, business reason for the expense and total costs (including tips and taxes) must be documented on the check request.

EDIT MEALS

An edit meal may be reimbursed when an individual is in an edit facility and unable to stop work, per diem is not received, and only if the edit facility does not allow food to be charged to the project invoices.

WALK-AWAY MEALS

On smaller location shoots, when per diem is not received and catering is not provided, Production Management may elect to provide crew members with a nominal amount of petty cash ($15 or less) for a meal to be taken at that time.

Production Management must document the names, titles, date, amount, and reason for the walk away meal on the Walk Away Meal Form. This form must be signed by each employee, approved by the Line Producer and signed off by the Production Accountant.

UNION RULES

Applicable union rules supersede any meal policies in this manual.

BIRTHDAY PARTIES

Per Viacom policy you may not reimburse for the cost of birthday parties (e.g., cakes, champagne).

CHARITABLE CONTRIBUTIONS

Contributions to charitable organizations must be pre-approved by VMN.

TIPPING

Employees receiving per diem will not be reimbursed for tips of a personal nature (e.g., maid, bellman).

UNIONS

Union agreements vary from show to show. Please make sure you understand which union agreements are applicable to your show. Contact your Production Finance Point person and your Line Producer as appropriate.

It is part of your job to check to make sure the payroll company is billing fringe correctly, and bring it to your finance manager’s attention if fringes are not budgeted properly.

Your show’s production, production finance, or BALA point person should be contacted if any communication with a union is necessary.

41 VACATION & HOLIDAY PAY

Please note that vacation & holiday is a union requirement on some shows. Vacation and holiday pay must be tracked and paid out/reconciled appropriately at the end of your show. Please check with your payroll company and/or your production finance manager if you have any questions.

Holiday Pay:

For all eligible employees, holiday pay will be accrued weekly in a liability account. When a Holiday is paid, the cost must be charged directly against the accrual. For projects of a short-term nature which will not be affected by an IATSE holiday, the holiday pay can be paid currently.

Holiday Accrual Pay:

Prior to wrapping the show, you should coordinate with the payroll service to pay-off of the holiday pay for all terminated crew. Any remaining crew (editorial staff) should be separately noted, and the final accrual account balance should equal the outstanding amounts for these remaining employees. The post accountant will then complete the holiday pay-off for those few remaining employees.

Vacation Pay:

Where applicable for union employees, vacation pay should be paid weekly by the payroll company.

WRAP & POST PRODUCTION ACCOUNTING

You must complete the VMN in-house studio show checklist and a wrap memo to hand over to the Post Production Accountant. Please allow time to discuss your show with the Post Production Accountant and answer any questions they may have.

Before handing over your show, you must complete as many of the following items as possible. If anything on this list is not completed, or there are any other issues, you must include them in your wrap memo.

-All payroll payments made, especially to talent -Close out staff and crew petty cash -Complete a Journal Entry Log per the instructions in the journal entry section -Contact vendors to get all remaining bills sent asap -Arrange with post office to have mail forwarded to the Post Production Accountant, and contact vendors to notify them when the production office will be closed and how to reach the Post Accountant. -Recoup all refundable deposits -Close or put vendor accounts on hold -If VMN issued a guarantee letter to get an account opened, send written notification to the vendor via certified mail that the account is to be closed and the guaranty revoked. -Complete and review asset lists, provide a copy to your production department. -Collect and submit residual information -Review and complete 1099 information -Clear all outstanding items (non-show costs, etc) off your trial balance -Do a cost report before handing over the show, explain the ETC’s to the Post Accountant -Make sure all information that will be needed for the next season (if applicable) of the show is easily accessible. This includes copies of all union agreements and contracts that include options for future seasons.

POST PRODUCTION ACCOUNTING

If you are taking a show over as the post production accountant, it is your responsibility to make sure you understand all the unresolved issues on the show. You need to take the opportunity when the show is initially 42 handed to thoroughly discuss the show with the Production Accountant. Don’t forget to confirm that the mail has been forwarded to you and that any vendors who are likely to have questions have been notified how to contact you. Once the show is yours, you need to actively work on closing it out: clearing off the trial balance, getting the final bills in, etc. Please don’t assume that any new bill you receive is correct and should be paid. If there is no PO for a bill, you should review the payment history, research the files, and call the vendor and the Line Producer or other contact from the show as necessary before processing the payment.

CLOSING OUT A SHOW

Before a show can be considered completely closed out, the following items must be completed:

 The “closing show checklist” must be completed and sent to production finance.  All purchase orders must be closed out.  The trial balance must be “clean”.  All checks must have cleared the bank.  The final bank reconciliation must be completed.  A final cost report, with nothing left in the ETC, must be issued.  The residual checklist, along with all necessary copies, must be completed.  All 1099 info must be completed (all items flagged in software, all W-9’s obtained).  Any unresolved issues must be documented and discussed with production finance.  A final copy of the show data must be sent to production finance.  The accounting boxes should be properly stored and logged.

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