The INCAA Increased Its Earnings, but Did Not Provide More Subsidies
<p style="text-align:justify">This occurred between January 2005 and February 2007. According to the AGN, it was amended because its share of a tax applied to the former COMFER, but a decree fixed the maximum amount of financial support. No documents validate the money delivered or monitored compliance with the number of Argentine films shown in theaters.</p>
According to a report by the General Audit Office (AGN, for its acronym in Spanish), the National Institute of Cinema and Audiovisual Arts (INCAA, for its acronym in Spanish) increased its revenue during the January 2005-February 2007 but the increase did not translate into more subsidies for films.
The auditors explained that INCAA is financed by the film promotion fund. One component of this fund is part of the broadcasting tax (applied by the former COMFER). In 2001, by decree, the portion of the tax that corresponded to INCAA increased from 25% to 40%. But another decree, in this case from 2004 established the maximum amounts to be granted to the filmmakers. The problem was that these amounts were not updated until after the period examined by the AGN. Therefore, the report concludes that while the Institute expanded its collection, the money "could not be used in more subsidies because it was limited by another decree."
Another fault detected by the auditors was that the INCAA "does not have the supporting documentation" to validate the amounts awarded in grants. Also, when a credit is transacted, the Institute "does not apply the criterion of market value for budgeted cost analysis by the director of the film."
Furthermore, the report marks that the INCAA did not apply actions to control the amounts that are transferred to the AFIP, under Article 21 of Law No. 17,741 credits received by film production. The auditors identified differences between tax revenues reported by the AFIP and those sent by the Institute, for a total of more than 7 million belonging to INCAA.
Finally, in the film industry, the Institute does not verify compliance with the minimum amount of national films to be displayed in each of the theaters that are in the registry. That amount, called "share of the screen" amounts to one national film per calendar quarter.
The INCAA, that on December 28 officially launched its TV channel, is under the purview of the Ministry of Culture of the Office of the President and is responsible for the promotion and regulation of the film industry. The Audit, meanwhile, noted that during the period audited the entity's organizational structure "was modified five times."