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Author
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Topic: Ticket audits by distributor?
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Julio Roberto
Jedi Master Film Handler
Posts: 938
From: Madrid, Madrid, Spain
Registered: Oct 2008
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posted 03-11-2010 04:54 AM
Ticket auditing by distributors are common around here (in regular commercial theaters) in spite of the fact that only goverment-approved ticketing software, often tied up to specific hardware, is the only approved method to sell tickets. There is a manual roll of serialized pre-printed tickets issued by the goverment in case the computer systems fails beyond the ability to sell tickets.
The system must include permanent internet connection and the software companies must recover all sales data every night from all theaters using their software and send it to both, the goverment (ministry of arts and education) and the distributors.
Kind of a waste to do "surprise audits" if you ask me, but hey, they also hire "security guards" for the "digital prints" during screenings etc, so who knows what those in charge are thinking, besides the obvious that most/all in the exhibition industry are thieves, of course. And that they don't mind wasting money.
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Frank Angel
Film God
![](http://www.film-tech.com/ubbmembers/248b.jpg)
Posts: 5305
From: Brooklyn NY USA
Registered: Dec 1999
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posted 03-14-2010 08:19 AM
My theatre is a non-profit operation as well, housed within a larger Performing Arts Center. As has been stated, all the distribs master contracts state that stubs must be saved anywhere from 2 to 5 years, whether or not it makes sense in the age of computers. But forget about needing to save stubs for them -- it's your OWN auditing that requires a non-profit to keep detailed and meticulous records of all financial transactions -- invoices, purchase orders, sales slips, etc., and ticket stubs. That's standard non-profit auditing protocol. It varies from state to state, but we keep ours for 5 years.
In fact, independent operations have a lot more leeway than a non-profit; an independent only has to satisfy itself that there is no hanky panky going on. Non-profits have to convince higher authorities.
In most states non-profits need to be audited by accredited 3rd party auditors who will require all stubs be marked, bagged and saved. At the end of the year we set up a table and an ethernet connection for our auditor who plops himself down for a week or more checking our books.
Saving all that stuff may seem a little silly, but it is protecting yourself. It's insurance. To scoff at it means you are betting you will never have a problem, and that's not wise. If you are a non-profit and come up wanting in any of the strict regulations imposed, you can loose your non-profit status, or worse yet, you can get carted off to jail.
Connor, as for distribs sending "checkers," with us, that has only happened a few times very early on. After all, we are running films long pass the break and many classic titles which means we are playing films that anyone can rent on DVD for a dollar. Our overages, if we hit them, our miniscule. Warner and Fox sent checkers years ago, and I think a few times we got checked by Disney (figures). I believe they just wanted to confirm our operation in the beginning and satisfy themselves that we weren't ripping them off. We haven't been checked in the last 15 years. I don't know how much it costs a distrib to hire one of those checkers, but quite frankly, if a studio sent a checker to us, many times I bet it would cost them more than what they would make on our engagement!
BUT, in theory, the distrib has the right to send checkers any time them want and to be able to inspect the box office records without advance notice -- that's in the Master Contracts as well.
And BTW, they have to buy a ticket.
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Frank Angel
Film God
![](http://www.film-tech.com/ubbmembers/248b.jpg)
Posts: 5305
From: Brooklyn NY USA
Registered: Dec 1999
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posted 03-16-2010 09:57 AM
The Warner checker was open as well, although she mentioned it casually, she did make it a point to tell me she was under no obligation to tell me that she was there. In those days we used the old consec numbered ticket rolls and she just checked the last number on each roll, the starting number on the BO sheet and then went into the theatre to do her clicky-click thing. When she came back I approached her and offered her a cup of coffee which she refused -- said she was not allowed to accept anything. I asked if that was a Disney regulation....even she got it.
We chatted a bit. She did say that the head count, as she put it, needed to be "close," not number perfect. Evidently the distribs take in to account human click error. And in our case, just like most of the single screen theatres of days gone by, we don't oust everyone at the end of each show (2400 seats -- what's the point), so we could have a few additional bodies that won't be accounted for number-wise; if someone wants to stay to see the show again, we hope they do and that they are really hungry and thirsty. We've never enforced a "Get your butt out of here and come back in with a new ticket" policy like they are forced to do in smaller multiplexes.
I take it back; there were a few exceptions -- titles that packed the house. Yes, belieive it or not, BV (before video) we did actually have that happen. We came close quite a few times, but two where they actually had to stop selling tickets -- LADIES AND GENTLEMEN THE ROLLING STONES, and, you are not going to believe this, but FELLINI'S SATYRICON, which we played day-and-date with its premiere at the Paris Theatre in Manhattan due to a clerical error....they made a REALLY big mistake; they didn't MEAN for us to get it and since we only played it for two days, by the time they figured it out, we were done!
GOOD TIMES!
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