REGISTERED CHARITY NUMBER: 1051909
Report of the Trustees and Audited Financial Statements for the Year Ended 31 December 2022
for
Brown University Charitable Trust
Nielsens Chartered Accountants & Statutory Auditors The Gatehouse 453 Cranbrook Road Ilford Essex IG2 6EW
Brown University Charitable Trust
Contents of the Financial Statements for the Year Ended 31 December 2022
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Report of the Independent Auditors | 4 to 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Cash Flow Statement | 8 |
| Notes to the Cash Flow Statement | 9 |
| Notes to the Financial Statements | 10 to 13 |
| Detailed Statement of Financial Activities | 14 |
Brown University Charitable Trust
Report of the Trustees for the Year Ended 31 December 2022
The trustees present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The funds of the trust and income thereon are held for the purpose of financially supporting educational activities at Brown University, Providence, Rhode Island, USA.
Significant activities
The Brown University Charitable Trust does not routinely raise funds from the general public and as such is not registered with the fundraising regulator. The charity does not engage with professional fundraisers and did not receive any complaints on fundraising practices in the year.
Fund raising income is derived from members of the public and alumina and the charity aims to protect personal data of donors and never sells or swaps personal data with third parties, whilst taking appropriate action to safeguard vulnerable people when undertaking fundraising activities.
Grantmaking
The Brown University Charitable Trust makes all of its grant payments to Brown University for the support of specific funds, such as scholarship and leadership funds and the University’s Annual Fund.
The trustees confirm that they have referred to, and believe that they have followed the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives of furthering higher education and in planning for such future activities.
FINANCIAL REVIEW
Financial review and position
Achievements and performance
In the period under review incoming resources amounted to £3,313,832 (2021: £1,717,814). The charity continued to improve and develop funding for educational establishments and plans to continue in the same vein. Funding is focused towards education, an activity delivering public benefit, and £3,267,396 (2021 - £1,716,093) were expended on this charitable activity by way of grants to Brown University.
Reserves policy
To achieve its objectives, the charity has elected to donate all its incoming resources less administrative expenses, to the designated institutions. Therefore, all funds are designated, and, as a policy, it does not maintain any general reserves, except for £10,000 to meet annual administration costs. Total reserves carried forward at the end of the year were £26,683 (2021 - £25,797).
Investment Powers
In accordance with the charity's Memorandum of Association the Trustees of the charity have the power to invest in such investments, and securities as they seem fit, but only after taking expert advice.
Investment policy
Funds are invested in accordance with the donor's wishes. In the absence of a specific request, funds received are placed on deposit with financial institutions until they are distributed.
Going concern
The Trust has not entered into any arrangement or understanding or assumed any obligation or liability that could reasonably be expected to result in the trust not being able to continue as a going concern.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Brown University Charitable Trust is governed by a trust deed dated 16 November 1995 (as amended 24 April 1996). The charity is registered under the Charities Act 2011, Charity Registration Number 1051909.
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Brown University Charitable Trust
Report of the Trustees for the Year Ended 31 December 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees
On agreeing to become a trustee of the charity, the trustees are thoroughly briefed by their co-trustees on the history of the trust, the day-to-day management, the responsibilities of the trustees, the current objectives and future plans. The trustees are also encouraged to attend any courses which they feel are relevant to the development of their role, and to keep up-to-date on any changes in legislation.
Structure and management reporting
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis comprise the trustees of the charity. The trustees are not remunerated for their role.
The names of the trustees who served as at the date of approval of the financial statements are set out as part of the reference and administrative information on page 1 of these financial statements.
The trustees are ultimately responsible for the policies, activities and assets of the charity. The trustees review the developments with regard to the charity, its grant giving activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers including solicitors and accountants.
Related parties
Brown University of Providence, Rhode Island, USA, being the nominated beneficiary of the Charity is the principal related party.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
In carrying out their duties, the Trustees have conducted their review of the major risks to which the charity is exposed and have concluded that the following systems have been established to provide reasonable assurance that those risks, including
fraud and error, are adequately managed:
(i) The retention of a professional secretary to administrate the trust;
(ii) The retention of a professional accounting firm with experience in the area to conduct an examination; (iii) The requirement that any transfer of funds by the trust be approved by two authorised signatories; and (iv) Final reconciliation by staff of Brown University of Brown's donative and accounting records with the financials of the charity.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1051909
Principal address
19 Norcott Road London N16 7EJ
Trustees
P C Hansen G Conway A Shen L Small J E Taub
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Brown University Charitable Trust
Report of the Trustees for the Year Ended 31 December 2022
REFERENCE AND ADMINISTRATIVE DETAILS Auditors
Nielsens Chartered Accountants & Statutory Auditors The Gatehouse 453 Cranbrook Road Ilford Essex IG2 6EW
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of trustees on 6 October 2023 and signed on its behalf by:
........................................................................ P C Hansen - Trustee
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Report of the Independent Auditors to the Trustees of Brown University Charitable Trust
Opinion
We have audited the financial statements of Brown University Charitable Trust (the 'charity') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
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Report of the Independent Auditors to the Trustees of Brown University Charitable Trust
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Our responsibilities for the audit of the financial statements
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
We obtained an understanding of the legal and regulatory framework applicable to the entity and how it complies with the framework by discussing with management and checking compliance with the regulations. Any fraud or irregularity of a material amount is likely to be detected whilst conducting our routine procedures.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Nielsens Chartered Accountants & Statutory Auditors The Gatehouse 453 Cranbrook Road Ilford Essex IG2 6EW
Date: ....... October 2023
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Brown University Charitable Trust
| Statement of Financial Activities for the Year Ended 31 December 2022 Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 EXPENDITURE ON Charitable activities 3 Grants to Educational Institutions NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
31.12.22 Unrestricted fund £ 3,313,832 3,312,946 886 25,797 26,683 |
31.12.21 Total funds £ 1,717,814 1,726,093 (8,279) 34,076 25,797 |
|---|---|---|
The notes form part of these financial statements
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Brown University Charitable Trust
Balance Sheet
31 December 2022
| 31.12.22 | 31.12.21 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| fund | funds | ||
| Notes | £ | £ | |
| CURRENT ASSETS | |||
| Debtors | 7 | 18,816 | 10,490 |
| Cash at bank | 10,142 | 17,499 | |
| 28,958 | 27,989 | ||
| CREDITORS | |||
| Amounts falling due within one year | 8 | (2,275) | (2,192) |
| NET CURRENT ASSETS | 26,683 | 25,797 | |
| TOTAL ASSETS LESS CURRENT | |||
| LIABILITIES | 26,683 | 25,797 | |
| NET ASSETS | 26,683 | 25,797 | |
| FUNDS | 9 | ||
| Unrestricted funds | 26,683 | 25,797 | |
| TOTAL FUNDS | 26,683 | 25,797 |
The financial statements were approved by the Board of Trustees and authorised for issue on 6 October 2023 and were signed on its behalf by:
............................................. P C Hansen - Trustee
The notes form part of these financial statements
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Brown University Charitable Trust
| Cash Flow Statement | ||||
|---|---|---|---|---|
| for the Year Ended 31 December | 2022 | |||
| 31.12.22 | 31.12.21 | |||
| Notes | £ | £ | ||
| Cash flows from operating activities | ||||
| Cash generated from operations | 1 | 969 | (29,961) | |
| Tax paid | (8,326) | 759 | ||
| Net cash used in operating activities | (7,357) | (29,202) | ||
| Change in cash and cash equivalents | in | |||
| the reporting period | (7,357) | (29,202) | ||
| Cash and cash equivalents at the | ||||
| beginning of the reporting period | 17,499 | 46,701 | ||
| Cash and cash equivalents at the end | of | |||
| the reporting period | 10,142 | 17,499 |
The notes form part of these financial statements
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Brown University Charitable Trust
Notes to the Cash Flow Statement
for the Year Ended 31 December 2022
1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
| OPERATING ACTIVITIES | ||
|---|---|---|
| 31.12.22 | 31.12.21 | |
| £ | £ | |
| Net income/(expenditure) for the reporting period (as per the | ||
| Statement of Financial Activities) | 886 | (8,279) |
| Adjustments for: | ||
| Increase/(decrease) in creditors | 83 | (21,682) |
| Net cash provided by/(used in) operations | 969 | (29,961) |
2. ANALYSIS OF CHANGES IN NET FUNDS
| At 1.1.22 | Cash flow | At 31.12.22 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 17,499 | (7,357) | 10,142 |
| 17,499 | (7,357) | 10,142 | |
| Total | 17,499 | (7,357) | 10,142 |
The notes form part of these financial statements
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Brown University Charitable Trust
Notes to the Financial Statements
for the Year Ended 31 December 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom (FRS 102) (Charities SORP FRS102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
The financial statements are presented in sterling and are rounded to the nearest pound.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Where applicable, further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
continued...
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Brown University Charitable Trust
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
2. DONATIONS AND LEGACIES
| Donations Gift aid 3. CHARITABLE ACTIVITIES COSTS Grant funding of activities (see note 4) £ Grants to Educational Institutions 3,267,396 4. GRANTS PAYABLE Grants to Educational Institutions The total grants paid to institutions during the year was as follows: Grants to Educational Institutions 5. SUPPORT COSTS Management Finance £ £ Grants to Educational Institutions 7,645 35,865 |
31.12.22 £ 2,699,063 614,769 3,313,832 Support costs (see note 5) £ 45,550 31.12.22 £ 3,267,396 31.12.22 £ 3,267,396 Governance costs £ 2,040 |
31.12.21 £ 1,539,857 177,957 1,717,814 Totals £ 3,312,946 31.12.21 £ 1,716,196 31.12.21 £ 1,716,196 Totals £ 45,550 |
|---|---|---|
6. TRUSTEES' REMUNERATION AND BENEFITS
The charity employed no members of staff during the year ended 31 December 2022 (2021 - none).
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprises the trustees. No trustees received any remuneration or expenses in respect of their services as trustees or reimbursed expenses during the year (2021 - none).
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.
continued...
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Brown University Charitable Trust
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
| 7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Gift-aid 8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors 9. MOVEMENT IN FUNDS At 1.1.22 £ Unrestricted funds General fund 25,797 TOTAL FUNDS 25,797 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 3,313,832 TOTAL FUNDS 3,313,832 Comparatives for movement in funds At 1.1.21 £ Unrestricted funds General fund 34,076 TOTAL FUNDS 34,076 |
31.12.22 £ 18,816 31.12.22 £ 2,275 Net movement in funds £ 886 886 Resources expended £ (3,312,946) (3,312,946) Net movement in funds £ (8,279) (8,279) |
31.12.21 £ 10,490 31.12.21 £ 2,192 At 31.12.22 £ 26,683 26,683 Movement in funds £ 886 886 At 31.12.21 £ 25,797 25,797 |
|---|---|---|
continued...
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Brown University Charitable Trust
Notes to the Financial Statements - continued for the Year Ended 31 December 2022
9. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 1,717,814 1,717,814 |
Resources expended £ (1,726,093) (1,726,093) |
Movement in funds £ (8,279) (8,279) |
|---|---|---|---|
10. RELATED PARTY DISCLOSURES
In the year ended 31 December 2022 the charity received Nil donations from the trustees (2021 - Nil).
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Brown University Charitable Trust
Detailed Statement of Financial Activities for the Year Ended 31 December 2022
| INCOME AND ENDOWMENTS Donations and legacies Donations Gift aid Total incoming resources EXPENDITURE Charitable activities Grants to institutions Support costs Management Professional admin fees Professional fees Finance Bank charges Exchange rate differences Governance costs Auditors' remuneration Auditors' remuneration for non audit work Total resources expended Net income/(expenditure) |
31.12.22 £ 2,699,063 614,769 3,313,832 3,313,832 3,267,396 5,545 2,100 7,645 422 35,443 35,865 1,080 960 2,040 3,312,946 886 |
31.12.21 £ 1,539,857 177,957 1,717,814 1,717,814 1,716,196 6,500 - 6,500 424 933 1,357 1,080 960 2,040 1,726,093 (8,279) |
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This page does not form part of the statutory financial statements
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