CHALLENGE MINISTRIES UK (Formerly Challenge Ministries Swaziland UK) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
CHARITY NUMBER 1162211
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the charity, its trustees and advisers | 2 |
| Trustees’ report | 3 - 8 |
| Independent Examiner’s report | 9 |
| Statement of Financial Activities | 10 |
| Balance Sheet | 11 |
| Notes to the financial statements | 12 - 17 |
1
Challenge Ministries UK (Formerly Challenge Ministries Swaziland UK) Reference and administrative details of the charity, its trustees and advisers
| Trustees | Simon Howard, Chair |
|---|---|
| Graham Brewer | |
| Lloyd Cheshire | |
| Tim Collett (appointed 3 July 2024) | |
| Mark Dowding | |
| Mark Herbert (appointed 20 September 2023) | |
| Tim Whan (appointed 7 December 2023) | |
| Glyn Williams | |
| Charity Registered Number | 1162211 |
| Registered Office | Crendon House |
| Westfield Road | |
| Long Crendon | |
| HP18 9EW | |
| Independent Examiner | Gary Brookes FCA BSc |
| Bankers | The Co-operative Bank plc |
| PO Box 50 | |
| Skelmersdale | |
| WN8 6YL | |
| Solicitors | Anthony Collins, Solicitors |
| 134 Edmund Street | |
| Birmingham | |
| B3 2ES |
2
Challenge Ministries UK Trustees’ report for the year ended 31 March 2024
OBJECTIVES AND ACTIVITIES
Summary of the purposes of the charity as set out in the governing document
The objectives of the Charitable Incorporated Organisation, as set out in the Constitution are, in accordance with Christian principles set out in the Statement of Faith:
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i. The prevention and/or relief of poverty and/or financial hardship in Swaziland and such other parts of Africa as the charity trustees may from time to time decide by (but not exclusively) the construction of homes in local communities
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ii. The advancement of education in particular (but not exclusively) for the benefit of children and young people disadvantaged or marginalised by reason of economic, geographic or social circumstances in Swaziland and such other parts of Africa as the charity trustees may from time to time decide by (but not limited to) the provision of schools, educational facilities and apprenticeship training centres
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iii. The advancement of the Christian faith in particular (but not limited to) the provision of, or assistance in the provision of, discipleship and training centres
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iv. To promote and protect the physical and mental health of those infected and affected by HIV/AIDS in Swaziland and such other parts of Africa through the provision of financial assistance, support, education and practical advice
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v. To promote sustainable development for the benefit of the public by (i) the relief of poverty and the improvement of the conditions of life in socially and economically disadvantaged communities in Africa, and (ii) the promotion of sustainable means of achieving economic growth and regeneration.
Summary of the main activities undertaken in relation to these purposes
Our primary purpose is to raise funds to help care for orphans and vulnerable children in Swaziland which is now known as Eswatini.
In particular, we are helping convert Bulembu, a disused mining town, into a community with schools, homes, healthcare facilities and businesses. Bulembu has a dairy, a lodge and conference centre, a bakery, a honey factory and other smaller agricultural initiatives.
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Challenge Ministries UK Trustees’ report for the year ended 31 March 2024 (continued)
Challenge Ministries UK also provides support and raises funds for women’s and men’s centres providing rehabilitation for those living at the centres in a 12-month programme. The people cared for have emotional and behavioural problems. Some have been living on the streets, some have been abused and some have addiction problems. The centres provide vital care for these vulnerable young people.
The third strand of work is rural church planting which we call In Community By Community (ICBC) church plants. Our model is to plant a church and a school in a rural location. The pastor and his wife will care for the spiritual and educational needs of the population they serve. Some of the ICBCs also provide a home for orphans and some have a borehole to provide a much needed source of clean water for the local community. A community nurse makes routine visits to each of the ICBCs in order to run clinics, providing healthcare to people often unable to reach other healthcare facilities.
We raise funds for all these projects in Eswatini through regular giving and child sponsorship, through fundraising events and by making grant applications. Our growth to date has mostly come from churches and private individuals. Our intention for the future is to increase income from the business sector, through increased grant applications and by legacy giving in addition to growing our regular donor base.
ACHIEVEMENTS AND PERFORMANCE
Summary of main achievements during the year
The year has seen significant development of the charity following an increase in the staff team in the previous year. Despite challenging economic circumstances, we have maintained our overall level of donation income and have increased the programme of mission trips with two completed in the financial year and a further three planned during 2024.
Taking people to see the work of Challenge Ministries on a 2-week mission trip remains a key activity as it is when people see the challenges in Eswatini and see the impact that CMS are making that we capture hearts. Most people become donors once they have been on a mission trip. The mission trips also give an opportunity for participants to serve in Eswatini and to create connections with the work carried out there.
We are very grateful for donations from trustees and from MTech Access that significantly contribute to our support and fundraising costs, which enables the charity to transfer most other donations in full to support the work in Eswatini. During the year £300,314 was transferred as grants to Eswatini.
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Challenge Ministries UK Trustees’ report for the year ended 31 March 2024 (continued)
We are extremely grateful to those donors who continued to support the charity on a regular basis, as well as those who gave one-off donations to support our core work of caring for orphans and vulnerable children and other projects to address difficulties faced in Eswatini. In the year we were able to provide financial support to four ICBC projects and to continue supporting young adults through tertiary education. Funds were also raised and transferred to support urgent needs in Eswatini and the Potters Wheel church.
On 13 April 2024 the trustees resolved to change the name of the charity to Challenge Ministries UK.
FINANCIAL REVIEW
Review of the charity’s financial position at the end of the financial year
Total income for the year was £461k, which was an increase from £429k the previous year. Total donation income was similar to the previous year but additional income was received from organising Mission Impact trips. The charity recognised income from contributions of £47,708 (2023: £16,628) against the costs incurred for Mission Impact trips and at the year end held £31,491 (2023: £13,586) towards future trips which is recognised as a creditor.
Support and fundraising costs totalled £142k, which was a significant increase on the previous year total of £98k. This reflects the full year impact of the increased investment in our staff team during the previous financial year.
The charity was able to distribute funds of £300k to Eswatini during the year resulting in an excess of expenditure over income for the year of £26k. At the start of the financial year the reserves held by the charity were in excess of that required under the reserves policy and the trustees decided to reduce the level of reserves held by transferring additional amounts to Eswatini. At the year end, the charity held total funds of £73k.
5
Challenge Ministries UK Trustees’ report for the year ended 31 March 2024 (continued)
RESERVES POLICY
The trustees have reviewed the charity’s reserves policy to assist in achieving long term stability, commensurate with the risks it faces, particularly relating to a significant fall in income and unexpected costs being incurred. The trustees take into account the level of recurring income it expects to receive to meet its operational costs. The trustees seek to hold unrestricted reserves in the range of £50-70k. At the year end unrestricted reserves were £70k.
FUTURE PLANS
The trustees plan to continue to develop and grow the charity, maintaining its focus on making a difference to the lives of vulnerable children in Eswatini.
The charity continues to improve its fundraising activities whilst carefully managing the level of costs incurred. Our donor relationship management system enables us to become more systematic in how we grow our donor pool and the investment in our staff team enables us to develop further our work with our ambassadors, who have a passion for CMS and the people of Eswatini, promoting our work in schools, churches and businesses. We plan to continue development of Mission Impact trips. In this way we will grow a much larger volunteer resource who can promote CMS across the UK.
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Challenge Ministries UK Trustees’ report for the year ended 31 March 2024 (continued)
STRUCTURE, GOVERNANCE AND MANAGEMENT
Constitution
The organisation is a charitable incorporated organisation, incorporated on 15 June 2015. The organisation was established under a constitution which outlines the objects and powers of the organisation and is a registered charity (charity number 1162211).
In common with Christian based organisations across the nation the trustees have had to be mindful of the needs to consider the Charity Commission’s guidance of assessing all activities in the light of public benefit so that they are open to all people regardless of personal circumstances and backgrounds.
Methods used to recruit and appoint new charity trustees
New trustees are appointed by a resolution passed at a properly convened meeting of the charity trustees.
In selecting individuals for appointment as charity trustees, the contribution to the skills mix and balance within the board is considered. Trustees that are appointed would be expected to support the values of the organisation.
RISK POLICY
The biggest financial risks to achieving the charity’s objectives is the impact of exchange rates and protection of funds held. Money raised in the UK would buy less in Eswatini if the sterling exchange rate falls. All funds of the charity are held with its main bankers. The trustees do not consider it appropriate to sell forward any sterling currency as future donation income cannot be guaranteed.
As a charity which supports those helping children and other vulnerable people overseas, the trustees are very mindful of their responsibilities for safeguarding and protecting from harm those who come into contact with the charity. There are child protection policies in place, ensuring that their wellbeing and safety is ensured at all times. All trustees and staff of the charity have received training on the importance of safeguarding and in the charity’s policies and procedures.
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Challenge Ministries UK Trustees, report for the year ended 31 March 2024 (continued) STATEMEIYT OF TRUSTEES, RESPONSIBLITIES The trustees are required undcr tharity law to prepare fuwicial statements for each financial period which ve a trne and fair vivw of the state of affairs of the CIO and its results for that period. In preparing those fmancial statements. the trustees are required kn: Select suitable a¢untIng wjlicies and apply thcm Consistently Make judgements and estima that are reOle and pNdent Prepare the finawial ststcmcnts on a going concern b&sis unlc5S it is inappropriate to assume that the clwity will conttnue in bleSS. The trustces are responsible for th¢ keeping of proper accountin8 records which disclose with reasonable accuracy al any time the financial wsilion of the Charity. They arr also responsible for th¢ safeguarding of the asscts of the charity and hence for tskin8 reasonablc stq)s for thc prcvcntion and detcction of fraud and other irregularitics. APPROVAL This rer was approved by the trustees on 8 January 2025 ond signed on their behalf Simon Howar4 Chair
Challenge Ministries UK for the year ended 31 March 2024 Independent Examiner's Report to the Trustees of Cballenge Ministries UK I report to the charity trustees on my examination of the accounts of the CIO for the year ende(131 March 2024 which is set out on pages 10 to 17. Responslbllltles und ba5 olreport A5 the charity trustees of the company you are responslble for the preparatlon of the accounts in accordance wlth the requirements of the Charitles Att 2011 (The Act,) I report in respect of my examinatlon of the charity's accounts as carried out under section 145 of the Act and in carrylng out my examlnation I have followed all the applicable Dlrectlons glven by the Charity Commission under sertion 1451$) Ibl of the Act Independent Exomlner's Stlytement Since the charity's gross income exceeded £250,(KX) your examiner must be a member of a body Ilsted In sectlon 145 of the Act. I confirm that l am qualified to undertake the examination because l am a member of the Instltute of Chartered Accountants of En8land and Wales. which Is one of the Ilsted bodies. I have completed my examlnation, I confirm that material matters have come to my attentlon In connectlon wlth the examlnatlon 8lvln8 me cause to be15eve thal in any materlal respect: {ii the accountln8 records We not kept In respect of the company as requlred by section 130 of the Art. or the accounts do not accord wlth those records; or the accounts do not comply wlth the applicable requlrements concernlng the form and content of accounts set out in the Charitles (Accounts and Report5) Regulations 2CM)8 other than any requirement that the accounts give a 'true and fair view, which15 not a matter considered as part of an independent examination {21 {31 I have no concerns and have come acro55 no other matters In connectlon with the examination to whlch attention should be drawn in thi5 report in order to enable a proper understanding of the accounts to be reached. Slgned Gary Peter 8rookes Fellow ofThe Instltute of Chartered Accountants of En8land and Wales 130 Wombourne Park Womboume South Staffs WV5 OLY
Challenge Ministries UK Statement of Financial Activities for the year ended 31 March 2024
| Notes Income from: Donations 4 Charitable Activities 5 Total Income Expenditure on: Charitable Activities 6 Raising funds 7 Total Expenditure Net (Expenditure) /Income Reconciliation of funds Total funds brought forward 1 April Total funds carried forward 31 March |
Restricted Funds 2024 £ 51,444 - 51,444 57,050 - 57,050 (5,606) 8,681 3,075 |
Unrestricted Funds 2024 £ 362,118 47,708 409,826 374,641 55,477 430,118 (20,292) 89,887 69,595 |
Total Funds 2024 £ 413,562 47,708 461,270 431,691 55,477 487,168 (25,898) 98,568 72,670 |
Total Funds 2023 £ 411,886 16,628 |
|---|---|---|---|---|
| 428,514 | ||||
| 380,444 57,174 |
||||
| 437,618 | ||||
| (9,104) | ||||
| 107,672 | ||||
| 98,568 |
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Challerye Mnlstrles UK 94Ce Sheet As31 mh2O14 Note Z024 2023 Current Assets Cash at bank and in hand Debtors 107.385 114,362 107,386 114,362 Credltor&" •nountsl4llrydue *lthlft one yew 134,7161 115,7941 14et Awts 72,670 98,568 Ch•rlty Funds Rertrlcted Funds Unrertrlcted Funds io io 3,075 69,595 8,681 89.887 Total Funds 71.670 98,568 Theflnanclal statemtMtswere apprr)¥ed bytheTrusteeson 8January 2025 and sl8ned on thelr behalf by: Trustee Mr Slmon Howard. Chair
Challenge Ministries UK for the year ended 31 March 2024 Notes to the accounts
Note 1 Basis of preparation
The charity is a Charitable Incorporated Organisation and constitutes a public benefit entity as defined by FRS102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) second edition published October 2019, the Charities Act 2011 the and UK Generally Accepted Practice.
The financial statements have been prepared on a going concern basis under the historical cost convention modified to include certain items at fair value.
Note 2 Accounting policies
Recognition of income Income is included in the Statement of Financial Activities (SoFA) when: · the charity becomes entitled to the resources; · it is more likely than not that the trustees will receive the resources; and · the monetary value can be measured with sufficient reliability. Grants and donations Grants and donations are only included in the SoFA when the general income recognition criteria are met. In the case of performance related grants, income is only recognised to the extent that the charity has provided the specified goods or services as entitlement to the grant only occurs when the performance related conditions are met.
Legacies Legacies are included in the SOFA when receipt is probable, that is, when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met. Tax reclaims on donations Gift Aid receivable is included in income when there is a valid declaration from the donor. and gifts Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise. Donated goods Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so. The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt and they are recognised on receipt. In the reporting period in which the stocks are distributed, they are recognised as an expense at the carrying amount of the stocks at distribution. Gifts in kind for use by the charity are included in the SoFA as income from donations when receivable.
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Challenge Ministries UK for the year ended 31 March 2024 Notes to the accounts (continued)
Note 2 (continued)
Accounting policies
Donated services and facilities Donated services and facilities are included in the SOFA when received at the value of the gift to the charity provided the value of the gift can be measured reliably. Support costs The charity has incurred expenditure on support costs. Support costs have been allocated between governance costs and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice. Volunteer help The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report. Liability recognition Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.
The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report.
Grants with performance conditions Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SoFA once the recipient of the grant has provided the specified service or output.
Note 3 Key judgements and assumptions concerning the future in applying the accounting policies
Donations received relating to Mission Impact trips planned for after the year end have not been recognised as income to the extent of contributions received in excess of costs incurred up to the year end, as these amounts may need to be repaid after the year end if for any reason a planned trip did not go ahead.
The trustees consider there are no material uncertainties about the charity's ability to continue as a going concern.
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Challenge Ministries UK Notes to the accounts for the year ended 31 March 2024
Note 4 Donations
| Child Sponsorship Donations and gifts Gift Aid TOTAL |
Restricted Funds Unrestricted Funds Total Restricted Funds Unrestricted Funds Total 2024 2024 2024 2023 2023 2023 £ £ £ £ £ £ - 96,977 96,977 - 99,198 99,198 49,957 249,854 299,811 69,203 200,728 269,930 1,487 15,287 16,774 3,275 39,482 42,756 51,444 362,118 413,562 72,478 339,408 411,886 |
|---|---|
Note 5 Charitable Activities
| Events Mission Impact |
Unrestricted Funds 2024 £ 3,987 43,721 47,708 |
Unrestricted Funds 2023 £ 16,628 |
|---|---|---|
| 16,628 |
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Challenge Ministries UK
Notes to the accounts for the year ended 31 March 2024
Note 6 Charitable Activities
| Funds transferred to Swaziland Education fees paid Mission Impact Shipping costs Support Costs (Note 8) TOTAL |
Restricted Funds Unrestricted Funds Total 2024 2024 2024 £ £ £ 55,215 245,099 300,314 - 220 220 - 36,640 36,640 - 7,917 7,917 1,835 84,765 86,600 57,050 374,641 431,691 |
Restricted Funds Unrestricted Funds Total 2023 2023 2023 £ £ £ 76,795 243,434 320,229 310 - 310 - 14,645 14,645 - 4,550 4,550 5,201 35,509 40,710 |
|---|---|---|
| 82,306 298,138 380,444 |
Note 7 Expenditure on raising funds
| Note 7 Expenditure on raising | funds | |
|---|---|---|
| Staff costs Marketing and event costs TOTAL |
Restricted Funds Unrestricted Funds Total 2024 2024 2024 £ £ £ - 47,211 47,211 - 8,266 8,266 - 55,477 55,477 |
Restricted Funds Unrestricted Funds Total 2023 2023 2023 £ £ £ - 34,984 34,984 - 22,190 22,190 |
| - 57,174 57,174 |
Note 8 Support Costs
| Staff costs Office costs Travel and accommodation costs IT Consultancy IT costs Governance costs TOTAL |
2024 £ 67,251 4,590 4,712 2,850 6,251 945 86,600 |
2023 £ 30,938 1,852 2,099 2,050 1,466 2,305 |
|---|---|---|
| 40,710 |
Governance costs includes £945 paid to the independent examiner for the independent examination (2023- £845). During the year the average number of staff employed by the charity was 3 (2023 - 3). No employee received employee benefits of more than £60,000 (2023 - None).
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Challenge Ministries UK Notes to the accounts for the year ended 31 March 2024
Note 9 Creditors: amounts falling due within one year
| 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| £ | £ | ||||||||||
| Deferred income | 31,491 | 13,586 | |||||||||
| Taxation and social security | 2,192 | 671 | |||||||||
| Other creditors | 1,033 | 1,537 | |||||||||
| 34,716 | 15,794 | ||||||||||
| Deferred income relates to amounts received in relation | to Mission Impact | trips planned for after | the year end. | ||||||||
| Note 10 Funds | |||||||||||
| Balance at | Balance at | ||||||||||
| 1 April | Transfers to | Allocated | 31 March | ||||||||
| 2023 | Income | Eswatini | costs | 2024 | |||||||
| £ | £ | £ | £ | £ | |||||||
| Restricted funds | |||||||||||
| ICBC Kincesi | - | 3,085 | (950) | 2,135 | |||||||
| ICBC Gbeni and Ingwempisi | - | 3,000 | (3,000) | - | |||||||
| ICBC Mpolonjenni | - | 4,000 | (4,000) | - | |||||||
| ICBC Mshaweni | 2,000 | (2,000) | - | ||||||||
| Hardship | 189 | (189) | - | ||||||||
| Emergency relief | 5,000 | (5,000) | - | ||||||||
| Clothing Drive | - | 282 | (216) | (66) | - | ||||||
| Hawane boys | - | 15,000 | (15,000) | - | |||||||
| Potters Wheel | 1,000 | 9,900 | (10,500) | (300) | 100 | ||||||
| Adoption fund | 160 | (144) | (16) | - | |||||||
| Solar lighting | - | 8 | (8) | - | |||||||
| Mens Life Group | 150 | 650 | (735) | (15) | 50 | ||||||
| Women Set free | 850 | 1,807 | (2,251) | (242) | 164 | ||||||
| Tertiary education | 4,839 | 6,260 | (9,710) | (983) | 406 | ||||||
| Presents | - | 333 | (103) | (10) | 220 | ||||||
| Medical emergency fund | 1,289 | 112 | (1,194) | (207) | - | ||||||
| Shoes for Orphans | 204 | 7 | (214) | 3 | - | ||||||
| Total restricted funds | 8,681 | 51,444 | (55,214) | (1,836) | 3,075 | ||||||
| Unrestricted funds | 89,887 | 373,185 | (245,100) | (148,377) | 69,595 | ||||||
| Total funds | 98,568 | 424,629 | (300,314) | (150,213) | 72,670 |
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Challenge Ministries UK
Notes to the accounts for the year ended 31 March 2024
Note 11 Analysis of net assets between funds
| Debtors Cash Liabilities Net assets Cash Liabilities Net assets |
Restricted Funds Unrestricted Funds Total 2024 £ £ £ - 1 1 3,075 104,309 107,385 - (34,716) (34,716) |
|---|---|
| 3,075 69,594 72,670 |
|
| Restricted Funds Unrestricted Funds Total 2023 £ £ £ 8,681 105,681 114,362 - (15,794) (15,794) 8,681 89,887 98,568 |
Note 12 Trustee donations, expenses and related party disclosures
None of the trustees were paid any remuneration or received any other benefits as a trustee or from an employment in the charity (2023 - None) .
No expenses were reimbursed to trustees during the year (2023 - None).
Donations from trustees during the year totalled £56,464 (2023 - £46,659)
There were no other related party transactions during the year (2023 - None) requiring disclosure.
Note 13 Previous year's Statement of Financial Activities
| Notes Income from: Donations 4 Charitable Activities 6 Total income Expenditure on: Charitable Activities 5 Raising funds 7 Total Expenditure Net income/(expenditure) Reconciliation of funds Total funds brought forward 1 April Total funds carried forward 31 March |
Restricted Funds Unrestricted Funds Total 2023 2023 2023 £ £ £ 72,478 339,408 411,886 - 16,628 16,628 |
|---|---|
| 72,478 356,036 428,514 |
|
| 82,306 298,138 380,444 - 57,174 57,174 |
|
| 82,306 355,312 437,618 |
|
| (9,828) 724 (9,104) 18,509 89,163 107,672 |
|
| 8,681 89,887 98,568 |
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