News Room







FUND'S MAIN ANNUAL DISTRIBUTION FOR 2013 IS $6,105,000

08/01/2013, V. Robert DiPaola - Fund Administrator,  



(Below is a copy of this year's main annual distribution letter, which contains details related to the distribution and other information about the Fund.)




August 1, 2013


Dear Participating Musician:

Enclosed is a check that represents your portion of the distribution from the Sound Recording Special Payments Fund (“Fund”) for the fiscal year ended April 30, 2013. You must cash or deposit this check by October 29, 2013, since the Fund’s bank will not honor checks submitted for payment after that date. In addition, enclosed for your reference is a statement of your reported scale wages, if any, for calendar year 2012.

The Fund’s total distribution this year is $6,105,000.* This amount is about 13% less than last year, due primarily to lower contributions on sales of sound recordings from record companies. Contributions were down about $1.0 million each on physical product (e.g. CDs) and digital downloads, or $1.9 million in total. The decline in contributions was partially offset by a $524,000 decrease in compliance audit expenses over the prior year1, a $170,000 increase in compliance audit collections and a $105,000 decrease in general and administrative expenses.

At the Fund, we are dedicated to locating and paying every musician who has an unpaid distribution, so I’m pleased to report that, like last year, over 98% of this year’s total distribution will be paid out to musicians, leaving less than 2% due to musicians whom the Fund is unable to locate. While this is again one of the highest payout percentages in the history of the Fund, there are still over 2,200 musicians that have not claimed money due them for one or more of the past three distribution years. You can help us to locate some of these musicians by reviewing the “Money Owed Musicians” link on the Fund’s website, sound-recording.org, and alerting your fellow musicians to contact us to claim the money due them.

I encourage you to visit sound-recording.org, which is the best place to get useful information and facts about the Fund, as well as answers to your frequently asked questions. At the website you can view your prior years’ tax and scale-wage statements, update changes to your address and other personal information, sign up for direct deposit (available for U.S. banks only) and print a beneficiary designation form. Using the website also helps reduce the Fund’s administrative expenses. So please, take a few moments to explore the site.


Wishing you a prosperous year,

V. Robert DiPaola

V. Robert DiPaola
Fund Administrator





1 The Fund made a special distribution of $7,010,000 on May 15, 2013, based on a settlement agreement with the major record companies in 2012 on all audit claims through 2011. As part the settlement agreement, the parties are working toward developing a new simplified contribution formula. Since the new formula has not yet been determined and it will affect how the 2012 major record company audits will be performed, the Fund has placed these audits on hold and as a result incurred no audit-related expenses.


* Below is a summary comparison of financial information related to the annual distributions for the fiscal years ended April 30, 2013 and 2012:

2013
2012
Contributions
$ 7,012,000
$ 8,997,000
Compliance audit collections
1,705,000
1,535,000
Interest income
47,000
24,000
Other income
48,000
47,000
Unclaimed distributions
143,000
93,000
Total     
8,955,000
10,696,000
General and administrative expenses
2,162,000
2,267,000
Employer share of payroll taxes
659,000
808,000
Compliance audit expenses
21,000
545,000
Reserves and capital expenditures
8,000
46,000
Total     
2,850,000
3,666,000
Total distribution
$ 6,105,000
$ 7,030,000




Total participants

16,100

17,100