Multiple Inaccuracies in Milwaukee Magazine Story

An Open Letter to Bruce Murphy

May 01, 2008

midnight

Mr. Murphy,

As one of the “bold names” in your blurb about the MilwaukeeInternational Film Festival, I feel that I have no choice but to point out themultiple inaccuracies in the story.

I’ll start at the beginning- with your title: “Film Festivalin Danger?” At no point in your articledo you maintain that the Film Festival is actually in danger of beingsuspended. And rightly so

there willabsolutely be a 2008 Milwaukee International Film Festival, and 2009, 2010,2011

you get the idea. You do a greatdisservice to the tens of thousands of Festival attendees when you suggest thatthe Festival will not take place. Milwaukee’s Future Foundation has not “shut off funding” of the Festival,and there will always be plenty of funding for such a great event- and one soimportant to Milwaukee’s stature as a city with offerings every bit as diverseas Chicago or Minneapolis.

You mention that the Festival benefited greatly from ChrisAbele’s donations through his Argosy Foundation. No one has made comments to the contrary, andto imply that anyone did is to fan the imagined flames around this great Milwaukee institution.

At no point did Louis Fortisdemand that the Milwaukee International Film Festival repay $250,000 indebt. The Shepherd Express has loanedover $438,000 (all verified by third parties) to the Film Festival, and $106,000of that amount is yet to be repaid. There is as much as $250,000 outstanding when one includes contributionsfrom the Shepherd Express to the film festival in categories such as paying fortheir telephone service, internet service, rent, office supplies, and timespent by Shepherd Express employees on Festival projects. Mr. Fortis has NEVER asked for repayment ofany of these in-kind contributions. Toimply that he did is to slander the one person who has spent more on thefestival than anyone else

both in time and money. All of this information was known by allinvolved parties, and available to you for the asking.

Your article contains several more false implications andinaccuracies which I’ll cover briefly:

All tax returns through 2006 related to the film festival have been filed properly and within the time allotted for filing. The 2007 books have been audited by an outside auditor and the tax return is being completed now.
You imply that over $90,000 was spent on advertising with the Shepherd Express. That sum was spent on advertising in the Milwaukee Journal, the Isthmus, and the Chicago Reader, among other media outlets. Less than 28% of the advertising expenditures of the film festival went to the Shepherd Express- arguably the publication best aligned with the film festival’s target demographic. All the other publications were paid, only the balance due the Shepherd Express remains outstanding.
You neglect to mention that Mr. Fortis has unconditionally agreed to all audit requests, and that the requested audit is already in motion.

Finally, to the most important part as far as I’m concerned

your misrepresentation of my involvement with the Milwaukee International FilmFestival. You imply wrongdoing when youstate: “But it gets worse. In 2005, thenonprofit’s books were in the care of Matthew Astbury, who is thefinance manager for the Shepherd.” You point out no evidence of wrongdoing of any kind, nor was there any wrongdoing on my part oron anyone else’s part. Moreover, yourdates are incorrect. I had noinvolvement with the Film Festival until the 2^nd quarter of2006. Since that time, I have merelyhelped the Milwaukee International Film Festival keep books that adhere togenerally accepted accounting principles, as the festival does not employ anin-house accountant.

I am sure you will issue a prompt apology for yourmischaracterization of my unpaid, uncredited volunteer work with the MilwaukeeInternational Film Festival.

Thank you,

Matthew Astbury

Operations and Finance Manager

Shepherd Express/ExpressMilwaukee.com

Some additional information:

The Shepherd Express has never taken a donation write-offbased on its contributions

either allocated expenses or direct payments

tothe Milwaukee International Film Festival. Expenses incurred in the process of growing the Film Festival to itscurrent level of success have always been booked as a loan payable to theShepherd Express on the Film Festival books, and as a loan receivable from theFilm Festival on the books of the Shepherd Express. These facts are clear in the federal taxreturn filings of both entities.

The “consulting fee” referred to in your story simplyrepresents combined expenses for box office services and theater rentals forthe first year of the Festival. Subsequent years’ tax returns have these expenses better defined andbroken out into separate line items. Atno point did Mr. Fortis benefit personally from his involvement with theFestival. Indeed, Mr. Fortis has spentmuch time and money to advance the Festival as a cultural institution in Milwaukee.

Shepherd Express Story "The Future of the Milwaukee International Film Festival"

Milwaukee International Film Festival