Entertainment News

Film academy will continue using accounting firm that mixed up Oscar best picture envelopes

(Jay L. Clendenin / Los Angeles Times)

By Tre'vell Anderson

The Academy of Motion Picture Arts and Sciences has officially spoken.

In a letter sent to members on Wednesday, President Cheryl Boone Isaacs announced that the organization will continue to work with PricewaterhouseCoopers, the accounting firm responsible for the now-infamous envelope mishap at this year's Oscars, which resulted in "La La Land" being incorrectly named as best picture, an honor that went to "Moonlight."

"After a thorough review, including an extensive presentation of revised protocols and ambitious controls, the Board has decided to continue working with PwC," the letter reads.

The Board of Governors, the body that oversees the academy, met Tuesday night for the first time since the Feb. 26 ceremony. In addition to discussing the debacle for which PwC has already accepted full responsibility, the letter outlined a number of protocols being established to ensure that the mix-up doesn't happen again.

Also mentioned in Boone Isaacs' letter was the status of the Academy Museum of Motion Pictures, set to open in 2019.

Read the full letter below:

Dear Members,

Last night the Board of Governors met for the first time following what was, in so many ways, the most extraordinary and memorable Oscars ceremony in decades. As you may know, the Board meets approximately six times a year to discuss the business of the Academy.

One of the items on our agenda was to discuss PwC’s Oscar night mistake and review options moving forward that are in the best interest of our organization.  

Heading into our 84th year working with PwC, a partnership that is important to the Academy, we’ve been unsparing in our assessment that the mistake made by representatives of the firm was unacceptable.

Throughout the last month, the Academy team has worked hand-in-hand with PwC to review our wide-ranging relationship – everything from Oscars voting, auditing, and taxes – during which we asked them to lay out for us a path and a process towards ensuring that everything will continue to the high standards the Academy expects and you deserve. From the night of the ceremony through today, PwC has taken full responsibility for the mistake. After a thorough review, including an extensive presentation of revised protocols and ambitious controls, the Board has decided to continue working with PwC.

New protocols include:

• A greater oversight role for PwC US Chairman and Senior Partner, Tim Ryan.
• PwC partner Rick Rosas will return to the Academy account as co-balloting leader, a function Rick performed flawlessly for more than 12 years. We will add additional key balloting partners in the coming months.
• The PwC on-site team at the Oscars will now include a third balloting leader with knowledge of award winners who will sit in the control room with the show’s director throughout the ceremony.
• We’ve developed Oscar night protocols including implementation of partner rehearsals for possible onstage issues, removal of electronic devices from backstage and improvements to onstage envelope category verification.
• Ongoing evaluation of backstage protocols and procedures.

On another note, I also have terrific news to report about progress on a project that excites all of us: the development of the Academy Museum of Motion Pictures, which will open its doors in 2019. The first phase of construction is now complete, which included renovating the historic Wilshire May Company building, and excavating and creating new underground spaces that will house exhibits that will bring our industry to life. During this next and final phase of the project, we will continue the work on the May Company building, and begin building the breathtaking Renzo Piano-designed sphere that will include our 1000-seat David Geffen Theater and the Dolby Terrace. Stay tuned for updates and thank you for your support of this endeavor.

Last night Tom Hanks, who co-chairs the museum’s capital campaign, brought the future Academy Museum to life by presenting a spoken tour of the space. We look forward to sharing these plans as they continue to evolve.

Last of all, just a reminder about one of the very best ways you can keep contributing to the Academy each day of the year: in April, you’ll receive information about running for a seat on the Academy’s Board of Governors and your Branch Executive Committee. Please think about seizing this opportunity to write the Academy’s next great chapter. The more you get involved, the stronger we can be together. Membership has its privileges, but it also has its responsibilities. We need you.