Guide to Appendix 5A: Breakdown of Costs (BOC) - Animation

Canadian Program Certification

1. Completion of the Breakdown of Costs (BOC) form is required whenever non-Canadian services or post-production and laboratory costs are incurred for a production. Refer to B. and C. below for information as to what these costs include.
2. For productions that are not yet fully completed at the time the certification application is filed with the Commission, applicants may use the “committed” budget figures to complete the BOC form.
   • For productions that are fully completed at the time the application is filed with the Commission, applicants must provide the actual production costs.
   • Whether an applicant uses budgeted or actual production costs, the Commission reserves the right to require audited financial statements for the production upon its completion. If any of the information is subsequently found to be inaccurate or incomplete, or if the production evolves to other than what has been presented in the application, the production may require re-evaluation which may affect the continued certification of the production.
3. Complete only the unshaded boxes on the form, as applicable.
4. Production costs are divided into four categories: (a) Producer and Key Creative Personnel; (b) Services; (c) Post-production and Laboratory; and (d) Other. A further division between Canadian and Non-Canadian costs is required for both the Services and Post-production and laboratory categories.

   The allocation of production costs is set out in Broadcasting Regulatory Policy CRTC 2010-905, dated 3 December 2010.

5. Where a production is a series, the BOC is to include the costs of producing the entire series.
6. Where the production is a co-venture or co-production, a BOC reflecting the total production budget must be completed, i.e. Canadian and non-Canadian portions combined.

A. Producer and Key Creative Personnel costs (column (1) on the BOC form):

Producer

Include in column (1), the Producer and Co-producer’s remuneration and fringe benefits, and all of their travel and living expenses.

Include in Services columns (2) and/or (3) as applicable, all remuneration and fringe benefits, and all travel and living expenses, for those persons performing a producer-related function, e.g. line producer, executive producer, associate producer and all other personnel related to the support of the producer function.

Key Creative Personnel

Include in column (1), all remuneration and fringe benefits, and all travel and living expenses, for each of the Key Creative Personnel involved in the production.

Key Creative Personnel are those functions for which points are awarded as set out in Public Notice CRTC 2000-42. They include the Director(s); Screenwriter(s)/Scriptwriter(s) and Storyboard Supervisor(s); first or second Voice or lead performer; Design Supervisor (or in the alternative, the Art Director or Character Designer); Camera Operator; Music Composer(s); and Picture Editor(s) (or Off-Line Editor(s) for videotape productions).

Remuneration and fringe benefits, and all travel and living expenses of all other personnel other than Key Creative Personnel, are to be included in the Services costs or Post-Production & Lab costs categories, as applicable.

B. Services costs (columns (2) and (3) on the BOC form):

The Services category includes all costs (other than excluded costs below) that are incurred for services provided in respect of making the production. This category would include, for example:

• the remuneration (including travel and living expenses and fringe benefits) of persons occupying positions related to the producer function (other than a Canadian producer or co-producer) (e.g. line producer, executive producer, associate producer);
• the remuneration, fringe benefits, and all travel and living expenses, for all other creative and technical personnel other than the key creative personnel;
• royalties paid with respect to the story rights or scripts, music rights, as well as development costs, the rental of vehicles and equipment, location expenses, office expenses, etc.;
• the completion bond.

Excluded costs include:

• costs determined by reference to the amount of income from the production;
• remuneration, fringe benefits, travel and living expenses payable to, or in respect of, the producer(s), co-producer(s) and other key creative personnel eligible for points as set out in A. above;
• insurance, financing, brokerage, legal and accounting fees, indirect expenses such as corporate overhead and interim financing, contingency costs, as well as other costs not directly related to production;
• goods purchased, such as film/videotape supplies; and
• costs relating to the post-production and laboratory stage or other costs set out in sections C. or D. below.
• stock footage acquisition costs are also excluded from service costs.

Canadian versus Non-Canadian Services Costs

As a rule, the determination as to whether the travel and living expenses are in the Canadian or non-Canadian category is based on the nationality of the person in respect of whom they are incurred. If, during a production, expenses are incurred to enable a Canadian to travel on a non-Canadian airline and stay in a hotel abroad, these expenses are deemed to be in the Canadian category, since they are incurred in respect of a Canadian citizen. However, if these same expenses are incurred in respect of a non-Canadian, even if all the amounts are paid to a Canadian airline and to Canadian hotels and restaurants, they are deemed to be in the non-Canadian category, since they are incurred in respect of a non-Canadian.

The Commission considers Canadian a person who is, at all relevant times, a Canadian citizen as defined in the Citizenship Act, a permanent resident as defined in the Immigration and Refugee Protection Act (2001), or a Canadian-controlled corporation, as defined under sections 26 to 28 of the Investment Canada Act.

Canadian at all relevant times means that an individual must be Canadian at the time he or she begins his or her duties in relation to the production and during the entire course of the filming or taping and post-production. An individual cannot acquire permanent resident status in order to qualify as Canadian at any point during a production; such status must be confirmed before the individual begins engaging in any activity related to the production. An individual acquiring permanent resident status after he or she begins engaging in any activity related to the production will be considered a non-Canadian for the entire production. Likewise a corporation must be a Canadian-controlled corporation during the same time period.

In order for the cost to be considered Canadian when provided by a Canadian Production Company, the company must incorporated and carrying on business in Canada, have a Canadian business address, be owned and controlled by Canadians, and have as principal business the production of film, videotape or live programs for distribution on television or in a theatrical, industrial or educational markets.

C. Post-production and laboratory costs: (columns (4) and (5) on the BOC form):

This category includes all costs for the post-production including laboratory work, sound re-recording, sound and picture editing, music scoring, music editing, titles and optical effects, etc.

It does not include:

• any costs determined by reference to the amount of income from the production;
• remuneration, fringe benefits, travel and living expenses payable to, or in respect of, the producer(s), co-producer(s) or other key creative personnel eligible for points as set out in A. above; or
• any costs relating to Services as set out in B. above or Other Costs as set out in D. below.

Canadian versus non-Canadian Post-production and laboratory costs

In order for a post-production or laboratory cost to be considered “Canadian”, it must have been incurred for post-production or laboratory services provided in Canada by Canadians or by a Canadian company(s). All services provided by non-Canadians, including services provided by Canadians outside Canada, are considered “non-Canadian.”

A “Canadian” company for the purpose of post-production and laboratory costs is defined as a company incorporated and carrying on business in Canada, with a Canadian business address, owned and controlled by Canadians, and whose principal business is the production of film, videotape or live programs for distribution on television or in a theatrical, industrial or educational markets.

D. Other costs (columns (6) on the BOC form):

The cost of materials and supplies (such as raw stock, videotape and magnetic tape for the shooting of the principal photography/taping) as well as the depreciation related to the purchase of capital equipment, etc., are to be included in Other Costs column (6). Also included in this category are all expenses excluded from the other categories. This would include costs not directly related to the actual production of the program – such as insurance, legal services, auditing, corporate overhead, interim financing and interest fees.

Completion of the individual line items on the BOC

• The numbers and letters beside the individual line items set out below correspond to the numbers and letters on the BOC form; e.g., expense description for the Scriptwriter/Storyboard 2.0 a) below refers to line 2.0 a) on the BOC form.
• The terms "paid", "incurred", "related to", "deferrals", "payable" and “to be incurred” are all synonymous when used in the various cost item descriptions.
• Production elements acquired at other-than-fair market value (FMV), e.g. non-arm’s-length inter-corporate transactions, are to be reported at FMV.
• Where payment of an item is deferred, in whole or in part, enter the full amount of the deferred expense in the appropriate expense category and indicate the amount of the deferral. As deferred expenses are a source of financing, the amount of the deferral must also be included in the Financing section of the application form and identified as such.

Line items

1.0 Story rights/Acquisitions

Enter, in Services columns (2) and/or (3), as applicable, the total amount paid for story rights or script acquisition fees.

2.0 Scriptwriter/Storyboard

1. Enter, in column (1), Key Creative Personnel, the total remuneration, including fringe benefits, paid to the scriptwriter(s) and/or storyboard supervisor(s).
2. Enter, in column (1), the total production-related travel and living expenses incurred on behalf of the scriptwriter(s) and/or storyboard supervisor(s).
3. Enter, in Services columns (2) and/or (3) as applicable, all other costs related to the development of the scenario (e.g. research, clearances/searches, storyboard, script reproduction, consultant(s), script editor(s) and secretarial services, including the total production-related travel and living expenses incurred on behalf of the individuals included on this line).

3.0 Development costs

Enter, in Services columns (2) and/or (3) as applicable, all costs incurred for the development of the production (e.g. preliminary breakdown, budget preparation, consultants, office expenses, survey/scouting, as well as the total production-related travel and living expenses incurred on behalf of the individuals included on this line).

4.0 Producer

Lines 4.0 and 4.1

1. Enter on lines 4.0 a) and 4.1 a), in column (1), the total remuneration, including fringe benefits, paid to the producer(s) and co-producer(s) respectively
2. Enter on lines 4.0 b) and 4.1 b), in column (1), the total production-related travel and living expenses of the producer(s) and co-producer(s).

Lines 4.2 to 4.5

1. Enter on lines 4.2 a), 4.3 a), 4.4 a) and 4.5 a), in Services columns (2) and/or (3) as applicable, the total remuneration, including fringe benefits, paid to the respective Line Producer(s), Executive Producer(s), Associate Producer(s) as well as all other producer-related personnel (e.g.: Supervising Producer, Production Supervisor, Production Executive, Production Associate, Executive in Charge of Production, Executive Production Consultant, Supervising Executive, etc.).
2. Enter on lines 4.2 b), 4.3 b), 4.4 b) and 4.5 b), in Services columns (2) and/or (3) as applicable, the total production-related travel and living expenses related to the respective producer functions on lines 4.2 a) through 4.5 a) inclusive.

4.6 Other producer-related costs

Enter, in Services columns (2) and/or (3) as applicable, all other producer-related costs related to the production personnel included on lines 4.0 through 4.5 respectively. This would include secretarial and support staff and their related travel and living expenses, public relations, etc.

5.0 Director

1. Enter, in column (1), the total remuneration, including fringe benefits, paid to the Director(s).
2. Enter, in column (1), all production-related travel and living expenses related to the Director(s).
3. Enter, in Services columns (2) and/or (3) as applicable, all costs related to the director function (e.g. 2^nd unit director, dialogue director, permits, secretarial and support staff, including their related travel and living expenses, etc.).

6.0 Voices, Mock Voices, Rotoscope Talent

Lines 6.1 a) and 6.2 a)

Enter in column (1) the total remuneration, including fringe benefits and rights payment, paid to the 1^st or 2^nd Voice (or Lead Performer).

Note: Determination of 1^st and 2^nd Performer will take into account billing, on-screen time (or off-screen time for voices), number of lines and remuneration.

Lines 6.1 b) and 6.2 b)

Enter in column (1), all production-related travel and living expenses related to the 1^st or 2^nd Voices (or Performers) reported on lines 6.1 a) and 6.2 a).

6.3 Other Voices (or Performers)

Enter, in Services columns (2) and/or (3) as applicable, the total remuneration and fringe benefits, and all production-related travel and living expenses of all remaining voices/performers. 

7.0 Production Labour

7.1 Design Supervisor

1. Enter, in column (1), the total remuneration, including fringe benefits, paid to the Design Supervisor(s) or, in the alternative, the Art Director(s) or Character Designer(s).
2. Enter, in column (1), all production-related travel and living expenses related to the Design Supervisor(s)/Art Director(s)/Character Designer(s) position, as applicable.
3. Enter, in Services columns (2) and/or (3), as applicable, the total remuneration, fringe benefits, production-related travel, living expenses, of all other design staff (e.g. assistant designer(s), assistant art director(s), production trainee(s), drafting, graphic artist(s), etc.).

7.2  Storyboard Supervisor

1. Enter, in column (1), the total remuneration, including fringe benefits, paid to the Storyboard Supervisor(s).
2. Enter, in column (1), all production-related travel and living expenses related to the Storyboard Supervisor(s).
3. Enter, in Services columns (2) and/or (3), as applicable, the total remuneration, fringe benefits, production-related travel and living expenses of all other storyboard staff.

7.3 Production labour

Enter, in Services columns (2) and/or (3), as applicable, the total remuneration, fringe benefits, production-related travel and living expenses of the production supervisor, production manager, assistant production manager, unit manager, location manager, production assistant, talent coordinator, production secretary, production accountant, bookkeeper, local contact, technical advisor, interpreter, script, etc.

7.4 Voice Edit labour

Enter, in Post-production and laboratory columns (4) and/or (5), as applicable, the total remuneration, fringe benefits, production-related travel and living expenses of the voice edit labour.

Lines 7.5 to 7.12

Enter on lines 7.5 to 7.12, in Services columns (2) and/or (3, as applicable, the total remuneration, fringe benefits, production-related travel and living expenses incurred on account of all personnel related to each of these functions.

7.13 Camera Operator

1. Enter, in column (1), the total remuneration, including fringe benefits, paid to the Camera Operator(s).
2. Enter, in column (1), the production-related travel and living expenses related to the Camera Operator(s).
3. Enter, in Services columns (2) and/or (3), as applicable, the total remuneration, fringe benefits, production-related travel and living expenses of all other personnel related to the camera department.

7.14 Other production labour

If the amount entered on this line is greater than 5% of the total Services costs entered on line 10.1, attach a separate schedule explaining the reason(s).

Lines 7.15 to 7.18 - Goods Purchased

Enter on lines 7.15 to 7.18, in Services columns (2) and/or (3), as applicable, the costs related to each of these accounts.

Goods Purchased

All costs for goods, other than the cost of goods purchased, should be entered in the applicable Services column, based on whether the supplier of the service is Canadian or non-Canadian.

The full cost of goods purchased that are completely consumed in the making of the production, (e.g. film/videotape supplies, materials, supplies, etc.) is to be entered on line 9.1 in Other Costs column (6).

7.19 Production laboratory

1. Enter in Post-production and laboratory, columns (4) and/or (5), as applicable, all costs related to negative processing, vacuumate, work print, video cassettes (rushes), take selection, magnetic transfer, synchronization, edge coding, etc.
2. Enter in Other Costs column (6), all costs related to the purchase of raw stock, master videotape and magnetic master stock for shooting of principal photography, rushes/dailies screenings and continuity/production stills.

7.20 Film/Videotape stock

Enter in Other Costs column (6), all costs related to materials used to transfer film to video, sub-masters with time code, viewing copies, etc.

7.21 Other production costs

Enter in Services or Other Costs columns, as applicable, all other expenses related to production and not included in any of the above expenses. If the amount is greater than 5% of the total Services on line 10.1, attach a separate schedule explaining why.

8.0 Post-production and Laboratory

8.1 Editorial labour

1. Enter in column (1), the total remuneration, including fringe benefits, related to the Picture Editor(s) or the Off‑line Editor for videotaped productions.
2. Enter in column (1), all production-related travel and living expenses of the Picture Editor(s)/Off-line Editor(s).
3. Enter in Post-production and laboratory columns (4) and/or (5) as applicable, all other costs directly related to editorial labour including the total remuneration and fringe benefits, and travel and living expenses of the on-line editor and of assistants related to picture editing and of the personnel related to sound editing, supervisor(s)/co-ordinator(s), looping supervisor(s), and dialogue transcription.

8.2 Editorial equipment

Enter in Post-production and laboratory columns (4) and/or (5), as applicable all of the costs related to the use of the editing rooms, editing equipment, etc.

Enter in Other Costs column (6), all costs related to purchases of editorial equipment.

8.3 Video post-production (picture)

Enter, in Post-production and laboratory columns (4) and/or (5) as applicable, the cost of equipment rentals, additional machines and materials related to off-line and on-line editing, computer load list, digital optical effects machines, graphics, graphics camera, insert studio, protection copies, distribution copies used by producer, viewing copies, etc.

Enter in Other Costs column (6), all costs of purchases.

8.4 Video post-production (sound)

Enter, in Post-production and laboratory columns (4) and/or (5) as applicable, the cost of labour and rental of materials related to audio master, voice-over recording, pre-mix, sweetening, mix, re-stripe, foley track and the making of the music and effects track (M&E), etc.

Enter in Other Costs column (6), all costs of purchases.

8.5 Special effects/Foley

Enter, in Post-production and laboratory columns (4) and/or (5) as applicable, the costs relating to special effects creation, editing, studio and to the foley track.

Enter in Other Costs column (6), all costs relating to special effects library purchases.

8.6 Film post-production (picture)

Enter in Post-production and laboratory columns (4) and/or (5), as applicable the costs relating to slash print, negative cutting, answer print, fades, interpositive, internegative, colour reversal internegative, check prints, wet gate printing, polishing, release print(s) used by the producer, reduction/blow-up printing, videotapes, storages, etc.

Enter in Other Costs column (6), all costs relating to visual effects library purchases.

8.7 Film post-production (sound)

Enter, in Post-production and laboratory columns (4) and/or (5), as applicable, all costs relating to original effects recording, special sound treatment, narration/voice-over studio, sound transfer, sound slashes/dupes, lip sync band, post-sync recording (A.D.R.), foley track, evaluation screenings, interlock screenings, pre-mix, mix of the original tracks and of the M&E, 3 track master, protection copy, M&E track, optical track, reduction/blow-up optical, Dolby noise reduction, Dolby license, etc.

Enter in Other Costs column (6), all costs relating to sound effects library purchases. 

8.8 Music Composer

1. Enter in column (1), the total remuneration, including fringe benefits, of the Music Composer. The Music Composer is the person who has been commissioned to compose the original music specifically for this production. It does not include the music arranger.
2. Enter in column (1), all production-related travel and living expenses related to the Music Composer.
3. Enter in Post-production and laboratory columns (4) and (5), as applicable, the total remuneration, including fringe benefits, production-related travel and living expenses of the other music personnel such as music director, arranger/orchestrator, conductor, musicians, etc.
4. Enter in Post-production and laboratory columns (4) and/or (5), as applicable, other costs such as pre-recorded guide track, studio fee, mix, materials, etc.

8.9 Music rights

Enter in Services columns (2) and/or (3) as applicable, the total amount paid for music rights. Whether the rights holder is Canadian or non-Canadian will determine the applicable Services column.

8.10 Titles/Optical

Enter in Post-production and laboratory columns (4) and/or (5) as applicable, based on whether the supplier is Canadian or non-Canadian, the total costs related to titles and optical work.

8.11 Stock footage

Enter in Other Costs column (6), the total costs related to purchases of stock footage.

8.12 Final copies

Enter in Post-production and laboratory, columns (4) and/or (5) as applicable, based on whether the supplier is Canadian or non-Canadian, the total costs related to final copies.

8.13 Versioning

Enter in Post-production and laboratory columns (4) and/or (5) as applicable, the total costs related to versioning and closed captioning. Costs generally associated with the distribution of the production are excluded while costs incurred in relation to the production of simultaneous versions in both official languages are included.

8.14 Shipping, customs & communications

Enter in Services columns (2) and/or (3) as applicable, the total costs related to shipping, handling, customs and communications.

8.15 Other post-production costs

Enter in Post-production and laboratory columns (4) and/or (5), and/or Other Costs column (6), as applicable, all other expenses related to post-production and not included in any of the above expenses. If the amount in the Post-production and laboratory column on this line is greater than 5% of the total Post-production and laboratory costs on line 10.3, attach a separate schedule explaining the reason(s).

9.0 Other Expenses

9.1 Amortization/Depreciation

Enter all costs related to the amortization of television series in the appropriate column(s), according to the nature of the expenses.

Enter in Other Costs column (6) the associated depreciation for capital items purchased, (e.g.: vehicles, cameras, etc.).

9.2  Unit publicity

Enter in Services columns (2) and/or (3) as applicable, all costs related to unit publicity, publicity/press expenses, stills/photography, promotion, videotapes, public relations, trailer, etc.

Include in Other Costs column (6), publicity costs associated with the distribution of the production.

9.3 General – insurance, accounting & legal, bank charges, etc.

Enter, in Other Costs column (6), all general expenses related to insurance, legal fees, audit fees, bank charges, etc.

9.4 Indirect costs – interests, corporate overhead, interim financing, etc.

Enter in Other Costs column (6), all costs related to corporate overhead, interim financing, interest fees and other costs.

9.5 Completion guarantee

Enter in Services columns (2) and/or (3) as applicable, all costs related to the completion guarantee (these costs should reflect a no-claims rebate). The applicable column is based on whether the individual who makes the decision whether or not to issue the bond is Canadian or non-Canadian.

Date modified:

2023-03-23