News Room







SRSPF RELEASES ANNUAL DISTRIBUTION FOR 2006 (SEE DISTRIBUTION LETTER SENT TO PARTICIPANTS BELOW)

08/01/2006, by Fund Administrator,  


Dear Participating Musician/Beneficiary:

Enclosed is your check, representing your portion of the $10,417,000 Sound Recording Special Payments Fund ("Fund") distribution for this year that is based on the Fund's fiscal year ended April 30, 2006. Also enclosed is a statement of your reported scale wages for calendar year 2005, if any, and a direct deposit enrollment form. Please note that the check is only valid for ninety days, until October 29, 2006, and accordingly must be cashed or deposited by that date.


This year's total distribution is about $1.9 million lower than last year. The decrease, as in recent years, is mainly attributable to the continued downtrend in sales of sound recordings worldwide. While the sales of digital downloads has yet to dramatically benefit the Fund (only 2% of contributions this year were generated by downloads), we are hopeful their strong sales growth will continue and begin to produce significant contributions to the Fund.


A large portion of the decline in this year's total distribution can also be attributed to the almost $1 million reduction in musicians' unclaimed distributions this year as compared to last year1. This is due in part to proactive programs instituted at the Fund to locate and pay musicians with unclaimed distributions. These programs included providing AFM Locals with the names and amounts due the musicians in their jurisdiction and listing their names on our website. This year the Fund paid out over $1.4 million in unclaimed distributions.


I am pleased to report that, although the Fund does not control sales of sound recordings and the resulting contributions it receives, we were successful controlling expenses and increasing non-contribution revenue during the year. Tight control over expenses resulted in a 9% decrease in operating expenditures and a 16% decrease in compliance audit expenses. Our diligent efforts resulted in increased collections of compliance audit claims and better performance on our investments. Overall, these items increased the total distribution by almost $1 million.


As a reminder, the Fund's website, www.sound-recording.org enables members to get information and news about the Fund, view their prior years' tax and scale-wage statements and designate a beneficiary. You can also make changes to your address and personal information and sign up for direct deposit. By using these features and the website, you can help to reduce the Fund's administrative expenses. So I encourage you, if you have not already done so, to visit the website and fill out the registration form and return it to the Fund by mail or fax at (212) 310-9481.


Below is a summary comparison of financial information related to the annual distributions for the fiscal years ended April 30, 2006 and 2005:



2006
2005
Contributions
$13,061,000
$14,690,000
Compliance audit collections
1,126,000
726,000
Investment income and interest
310,000
190,000
Insurance proceeds and other income
208,000
425,000
Unclaimed distributions
525,000
1,524,000
Total
15,230,000
17,555,000
Operating expenditures
$2,587,000
$2,853,000
Employer share of payroll taxes
1,285,000
1,240,000
Compliance audit expenses
581,000
694,000
Reserves and capital expenditures
342,000
318,000
Distributions for prior years
18,000
99,000
Total
4,813,000
5,204,000
Total distribution
$10,417,000
$12,351,000
Total participants
22,840
24,850

To better serve you, we have set up a new email address at the Fund named suggestionbox@sound-recording.org. I invite you to send us your suggestions and comments on how we can improve our service to you. You can also find a link to suggestionbox@sound-recording.org at the "Contact Us" section of the Fund's website.


Hoping all is well,

V. Robert DiPaola
Fund Administrator





1Under the Fund Agreement, at the end of the Fund's fiscal year any unclaimed distributions remaining from the third prior distribution year are forfeited and distributed with the next annual distribution.