Over six years ago, the Film Musicians Secondary Markets Fund began a multi-year process of transformation — starting with an in-depth review of every internal business process; to an exhaustive study of our existing technology systems; to identifying, selecting, and designing a new comprehensive data system and bringing that new system online; to ultimately reorganizing the Fund’s internal departments to capitalize on efficiencies, enhanced analysis, reporting and outreach capabilities made possible by the new system. As reported last year, we elevated a new generation of department leaders on staff to expedite the Fund’s transformation. While the Fund still delivered residuals to musicians on time — even through the turbulence of the pandemic — the complex work required for this transformation was behind the scenes and invisible to participants. To the outside world, not much had changed. However, behind the curtain, by the end of 2023, FMSMF was transformed. As the curtain is raised on 2024, the Fund will debut some new features for participants and outreach to contributing companies.

Upgraded Website: It may look the same as the old website on the surface, but www.fmsmf.org has been upgraded with enhanced security and new features to make it easier for participants to navigate and use. Some of the new features include a user-friendly mobile and tablet interface, streamlined navigation and menu structures, refined search features for new paid films and unclaimed residuals. Two key improvements officially debut this month: First, participants can now download their residual statements as printable PDFs. In addition, starting with the 2023 tax statements that will be issued on January 31, 2024, participants enrolled in Account Access can access their tax forms online — no need to call or write the office asking for a replacement W2 or 1099 when trying to find a lost or misplaced copy at tax time.

Faster Turnaround on Unclaimed Residuals: Due to the limitations of the Fund’s old systems, if a participant needed a stale check or unclaimed residuals re-issued, they may have waited several months for the reissue to be processed in a “batch” because those batches could only be processed two to three times per year. With FMSMF’s new, updated system, reissues of outstanding unclaimed residuals will be processed within two weeks after confirmation, meaning participants get their money in hand sooner.

Outreach to Contributing Companies: The new system is capable of uploading documents and data with more speed and accuracy — thereby eliminating much of the tedious manual data entry. Fund staff can now spend more time focusing on analysis, quality control, and equally important, education and communication with contributing companies (studios, indie producers, etc.,) to encourage more accurate and timely reporting and payment of residuals. The Fund is initiating a new quarterly notification system in 2024 designed to alert companies of new AFM-covered titles that need to be set up for residual reporting and to follow up on possible missing or lapsed contributions. In addition, the new Industry Relations Department is rolling out a new contributor ‘onboarding’ program, to assist and educate smaller indie companies that often do not have large residuals departments about how musicians’ residuals work and how to report those residuals.

Enhanced Support for Collections: The new system provides enhanced tools for the Fund’s team of analysts to review, at a more granular level, the backup reports that accompany residuals remitted by contributing companies. This allows Fund staff to identify errors and missed or underreported residuals earlier in the collections process. The additional detail accessible through the new system also provides more support to the Fund’s audit program through which the Fund’s outside auditors review companies’ books and records to ensure compliance with the AFM Theatrical and TV Film Agreement and the Television/Videotape Agreement.

Looking to the future: No project of this kind is ever finished. As FMSMF moves forward, our staff will discover new opportunities to leverage the features of our new data system, continue refining processes for the benefit of participants, and adapt to changes in the industry including the new streaming business models. All FMSMF staff, whether newly hired or long-tenured, understand how important secondary market residuals are to the lives and livelihoods of working musicians and their families; as such, every member of the Fund staff makes serving participants their number one priority. In the months and years ahead, the FMSMF team will continue enhancing the Fund’s ability to collect and distribute this vital income to Musicians in a changing environment, as this next generation of Fund staff builds on the work of the past several years to fulfill that ongoing mission.

Over the past several years, Fund staff could not have moved this work forward without the support of the AFM’s Liaisons to the FMSMF — past Liaisons Phil Ayling, Rick Baptist and Ray Hair, and current Liaisons Pete Anthony, Tom Calderaro, and now Tino Gagliardi. I am truly grateful and thank them for supporting our team’s efforts.

On behalf of all the staff of FMSMF, I thank you for the honor of serving the community of professional musicians and wish you and yours a prosperous 2024.

Kim Roberts Hedgpeth is the executive director of Film Musicians Secondary Markets Fund.