Charity number: 1181449
Paper Cup Project
INDEPENDENTLY EXAMINED ACCOUNTS FOR THE YEAR ENDED 31/03/2023
Prepared By: Harvey Guinan LLP Chartered Certified Accountants Unit 17 Mersey House Matchworks Estate, 140 Speke Road Liverpool Merseyside L19 2PH
Paper Cup Project
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/03/2023
TRUSTEES
Patrick Smith Adam Boaks (resigned) Paul Polhill Patrick Hurley Michael Rick (appointed 23 November 2022) Adam Settle (appointed 16 September 2022) Jane Logan (resigned)
REGISTERED OFFICE
Paper Cup Coffee Queen Square Liverpool Merseyside L1 1RH
CHARITY NUMBER
1181449
BANKERS
Santander
INDEPENDENT EXAMINER - Julie Guinan FCCA
Harvey Guinan LLP Chartered Certified Accountants Unit 17 Mersey House Matchworks Estate, 140 Speke Road Liverpool Merseyside L19 2PH
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Paper Cup Project
ACCOUNTS FOR THE YEAR ENDED 31/03/2023
CONTENTS
| Page | |
|---|---|
| Report of the Trustees | 3 |
| Independent Examiner's Statement | 7 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Notes to the Accounts | 11 to 17 |
| Detailed Statement of Financial Activities | 18 |
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Paper Cup Project
TRUSTEES' REPORT
FOR THE YEAR ENDED 31/03/2023
The trustees present their report and accounts for the period ended 31/03/2023 .
PRINCIPAL ACTIVITIES
The principal activity of the charity in the year under review was the relief of poverty amongst those who are homeless, facing homelessness or rough sleepers.
STRUCTURE GOVERNANCE AND MANAGEMENT
Paper Cup Project is a Charitable Incorporated Organisation (CIO) which was registered as a charity (1181449) on 7 January 2019.
The financial statements have been prepared in accordance with the charity's Constitution, the Charities Act 2011, and 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 (FRS 102).
The charity was established under a Constitution which governs the charity and sets out the objects and powers of the charity.
The Trustees set and approve the policy for the charity which is then implemented by the Chief Executive. The Trustees meet regularly throughout the year with scheduled meetings and in between as required.
No remuneration is paid to any Trustee for their services as a Trustee.
Appointment of Trustees:
The board members are Adam Boaks (resigned), Paul Polhill, Patrick Hurley, Patrick Smith, Michael Rick (appointed 23.11.2022), Adam Settle (appointed 16.9.22) and Jane Logan (resigned). All trustees are eligible for reelection at the end of their initial term of appointment.
The Charity seeks to have a wide range of skills and experience on its Board, contained within a small number of individuals. The board are seeking to add more diversity to its trustees, particularly welcoming those with lived experience of homelessness.
Skills audits of trustees are conducted and any identified training needs provided. All new Trustees are given a detailed introduction to the Charity and provided with key important documents including the Constitution and latest Financial Statements.
OBJECTIVES OF THE CHARITY
The objectives of the CIO are :
For the public benefit, the relief of poverty amongst those who are homeless, facing homelessness or rough sleepers who are in need, hardship and distress on account of their social and economic circumstances, in particular, but not exclusively, by the provision of outreach services including the provision of clothing, bedding, food and drinks, information, advice, guidance and signposting to statutory and other voluntary agencies so that each person can find a route out of homelessness.
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Paper Cup Project
TRUSTEES' REPORT
FOR THE YEAR ENDED 31/03/2023
ACHIEVEMENTS AND PERFORMANCE
This has been an incredible period of growth for the charity, with the opening and trading of our coffee shop Paper Cup Coffee across this year. As well as offering locally sourced and produced products, we are the only place in Liverpool where people experiencing homelessness can come and enjoy a hot drink and food, in a safe and welcome environment. Customers support this via a pay it forward scheme, which can then be redeemed by our homeless customers. Through this, we have been able to assist 20-30 people per day. We also have a basket in the shop, where our homeless customers can find items such as clean socks and underwear and sanitary products, which they can help themselves to.
Across this period we had some great support, which was invaluable for us to stay afloat in our first year of trading. We were delighted to be chosen as one of the charities of the year for Merseyrail. Not only did it raise the profile of our charity, but staff also raised funds for us. We were also the chosen charity of Formby Hall golf club's captain, Simon Chung. Simon organised several charity events for us, and raised several thousands of pounds for the charity, which was greatly appreciated.
Along with our partner, The Learning Foundry, we held three courses in hospitality in the shop. The courses are open to people who have experienced homeless, or young people who have found it difficult to find employment. As well as accredited hospitality qualifications, the participants were also given barista training, and lunch was provided each day by us.
We were joined by a new patron, Frank Cottrell Boyce, and gained support from Susan Hill, the writer of The Woman in Black, and Tim Burgess, singer with the band The Charlatans. Tim promoted our coffee shop via his social media and in December, he joined us in the shop for a stint as a celebrity barista, which gained a lot of publicity and increased the amount of customers who visited the shop that day. The shop was featured across both local and National media channels.
The shop has been successful in the mission of supporting people with homelessness, and we really feel that having a physical space has been beneficial to the charity to raise awareness of the work we do. However, it hadn't been without challenges. The cost of living crisis has impacted on us, and the utility bills for the shop increased threefold from January 2023. Thankfully, our landlords Promenade, support us with a peppercorn rent, so rental is not affected. The cost of our supplies has also increased across the period. Due to these unforeseen increases, it has been a difficult time financially, but we managed, thanks to customers and supporters. We also suffered three break ins across this period, which took a toll on us financially and emotionally. However, we made it through our first year, and we continue to build on the work we are doing to support people experiencing homelessness, and to challenge the stigmas around homelessness. This is only possible with the support of our staff, board, and supporters. We are absolutely needed in Liverpool, we see that every day, and we hope to continue the good work that is being done.
PUBLIC BENEFIT
How our activities deliver public benefit:
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Paper Cup Project
TRUSTEES' REPORT
FOR THE YEAR ENDED 31/03/2023
Our work is accessible to all in the area we serve who are in need of our assistance. We believe that the services we provide are crucial to homeless people's lives, supporting them by providing food and drink and access to support to find their way out of homelessness, thereby making a contribution to society and benefiting all.
FINANCIAL REVIEW
The results for the period and the charity's position at 31 March 2023 are shown in the attached financial statements. Total incoming resources were £126,191 (2022 £86,693) and total resources expended were £158,892 (2022 £81,757) resulting in net outgoing resources for the period of £32,701 (2022 net incoming resources £4,936) - net outgoing resources on the unrestricted funds of £23,837 (2022 net incoming resources £2,753) and net outgoing resources on the restricted funds of £8,864 (2022 net incoming resources of £2,183). At 31 March 2023 the balance on the unrestricted funds was £20,468 (2022 £44,305) and the balance on the restricted fund £nil (2022 £8,864) giving total funds of £20,468 (2022 £53,169).
RISK MANAGEMENT
The Trustees confirm that the day-to-day controls are designed to mitigate the identified risks faced by the charity.
RESERVES POLICY
The reserves policy of the charity reflects the organisation's wish to strike a balance between two financial objectives. Firstly, the need for financial stability and secondly to expand the volume and range of services offered to the homeless people that we work with.
At 31 March 2023 our reserves stood at £20,468 of which £20,468 represented free reserves not invested in fixed assets or restricted in their use. The trustees feel that this level of reserves is adequate to meet both financial objectives for the foreseeable future.
FUTURE PLANS
The Charity is committed to developing services to help homeless people or people facing homelessness.
VOLUNTEERS
Volunteers are a valuable resource for the charity. Our volunteers come from a wide range of backgrounds, and we encourage diversity.
STATEMENT OF TRUSTEES RESPONSIBILITIES
The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Charity Law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and Applicable Law).
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Paper Cup Project
TRUSTEES' REPORT
FOR THE YEAR ENDED 31/03/2023
Under Charity Law the trustees must not approve the financial statements until they are satisfied that they give a true and fair view of the state of affairs of the charity and of the net incoming or outgoing resources of the charity for that period.
In preparing the financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the charities SORP;
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make judgments and estimates that are reasonable and prudent;
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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 adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.
The names of the Trustees who held office during the year are noted on page 1.
APPROVAL
The report was prepared in accordance with the Charities Act 2011 and Statement of Recommended Practice FRS102 Accounting and Reporting by Charities.
This report was approved by the Board of Trustees on 30/01/2024 .
Adam Settle (appointed 16 September 2022) Trustee
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Paper Cup Project
INDEPENDENT EXAMINER'S STATEMENT
FOR THE YEAR ENDED 31/03/2023
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PAPER CUP PROJECT
I report on the accounts of the charity for the period ended 31/03/2023 .
RESPONSIBILITIES AND BASIS OF REPORT
As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act).
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
INDEPENDENT EXAMINER'S STATEMENT
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
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the accounting records were not kept in accordance with section 130 of the Charities Act; or
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the accounts did not accord with the accounting records; or
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the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
................................................... Julie Guinan FCCA Independent Examiner
Date: 30/01/2024
Harvey Guinan LLP Chartered Certified Accountants Unit 17 Mersey House Matchworks Estate, 140 Speke Road
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Paper Cup Project
INDEPENDENT EXAMINER'S STATEMENT FOR THE YEAR ENDED 31/03/2023
Liverpool Merseyside L19 2PH 0151 709 7797
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Paper Cup Project
Statement of Financial Activities for the year ended 31/03/2023
| Income Income from generated funds Income from charitable activities Total Income Expenses Costs of generating funds Expenditure on Charitable activities Total Expenses Net Income Net movement in funds: Net income for the year Total funds brought forward Net funds carried forward |
Unrestricted funds £ 119,891 119,891 143,728 143,728 (23,837) (23,837) 44,305 20,468 |
Restricted funds £ 6,300 6,300 15,164 15,164 (8,864) (8,864) 8,864 - |
2023 Total £ 126,191 126,191 158,892 158,892 (32,701) (32,701) 53,169 20,468 |
2022 Total £ 86,693 |
|---|---|---|---|---|
| 86,693 | ||||
| 81,757 | ||||
| 81,757 | ||||
| 4,936 | ||||
| 4,936 48,233 |
||||
| 53,169 |
This statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities
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| Paper Cup Project | 2022 £ 433 52,736 |
|||
|---|---|---|---|---|
| BALANCE SHEET AT 31/03/2023 Notes FIXED ASSETS Tangible assets 3 CURRENT ASSETS Debtors (amounts falling due within one year) 4 Cash at bank and in hand CREDITORS: Amounts falling due within one year 5 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES RESERVES Unrestricted funds 6 General fund Restricted funds 7 |
3,926 24,141 28,067 7,599 |
2023 £ - 20,468 20,468 20,468 - 20,468 |
1,556 57,888 59,444 6,708 |
|
| 53,169 | ||||
| 44,305 8,864 |
||||
| 53,169 |
Approved by the board of trustees on 30/01/2024 and signed on their behalf by
.............................
Adam Settle (appointed 16 September 2022) Trustee
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Paper Cup Project
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31/03/2023
1. ACCOUNTING POLICIES
1o. Basis Of Accounting
The accounts have been prepared under the historical cost convention.
The accounts have been prepared in accordance with FRS102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.
1b. Incoming Resources
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
1c. Resources Expended
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.
1d. Allocation And Apportionment Of Costs
All costs relate to the single activity of the charitable company and are recognised accordingly.
1e. 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.
Designated funds are funds set aside by the trustees out of unrestricted general funds for the specific future purposes or projects.
1f. Depreciation
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.
Equipment
straight line 33.33%
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Paper Cup Project
1g. Pension Costs
The company operates a defined contribution pension scheme. The pension charge represents the amounts payable by the company to the fund in respect of the year.
1h. Turnover
Turnover represents the invoiced value of goods and services supplied by the company, net of value added tax and trade discounts.
1i. Income Recognition
Items of income are recognised and included in the accounts when all of the following are met: (1) The charity has entitlement to the funds; (2) Any performance conditions attached to the income have been met or are fully within the control of the charity; (3) There is sufficient certainty that receipt of the income is considered probable and (4) The amount can be measured reliably.
1j. Cash At Bank And In Hand Policy
Cash at bank and in hand includes cash and short term liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1k. Creditors And Provisions Policy
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement value amount after allowing for any discount due.
1l. Financial Instruments Policy
The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
1m. Basis Of Preparing Accounts
At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. They also confirm that the period considered in making this assessment was at least 12 months from the date of approval of these accounts. Hence the trustees continue to adopt the going concern basis of accounting in preparing the accounts.
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1n. Basis Of Accounting
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015) and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.
2. PENSION CONTRIBUTIONS
| 2. PENSION CONTRIBUTIONS | ||
|---|---|---|
| Pension contributions | 2023 £ 1,513 1,513 |
2022 £ 1,077 |
| 1,077 |
3. TANGIBLE FIXED ASSETS
| Cost At 01/04/2022 At 31/03/2023 Depreciation At 01/04/2022 For the year At 31/03/2023 Net Book Amounts At 31/03/2023 At 31/03/2022 4. DEBTORS Amounts falling due within one year: Other debtors |
Equipment £ 1,299 1,299 866 433 1,299 - 433 2023 £ 3,926 3,926 |
Total £ 1,299 |
|---|---|---|
| 1,299 | ||
| 866 433 |
||
| 1,299 | ||
| - | ||
| 433 | ||
| 2022 £ 1,556 |
||
| 1,556 |
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5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
|---|---|---|
| Taxation and social security Other creditors |
2023 £ 462 7,137 7,599 |
2022 £ 636 6,072 |
| 6,708 |
6. UNRESTRICTED FUNDS
| General fund | Brought forward £ 44,305 44,305 |
Incoming resources £ 119,891 119,891 |
Outgoing resources £ (143,728) (143,728) |
Transfers £ - - |
Carried forward £ 20,468 |
|---|---|---|---|---|---|
| 20,468 |
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Paper Cup Project
7. RESTRICTED FUNDS
| Enterprise Development Programme Crowdfunder Ltd The SpeedoMick Foundation Charities Aid Foundation America Liverpool Charity and Voluntary Services Liverpool City Council Condition Improvement Fund (CIF) Citizens Advice Community Foundation |
Brought forward £ 833 2,248 2,000 300 1,913 1,570 - - - 8,864 |
Incoming resources £ - - 1,600 - - - 2,000 200 2,500 6,300 |
Outgoing resources £ (833) (2,248) (3,600) (300) (1,913) (1,570) (2,000) (200) (2,500) (15,164) |
Transfers £ - - - - - - - - - - |
Carried forward £ - - - - - - - - - |
|---|---|---|---|---|---|
| - |
Enterprise Development Programme
Funding for salaries
Crowdfunder Ltd
Funding for setting up and running a coffee shop
The SpeedoMick Foundation
Funds for equipment
Charities Aid Foundation America
Funds for refurbishment of coffee shop
Liverpool Charity and Voluntary Services
Funds for supporting people experiencing homelessness
Liverpool City Council
Funding for alarm and electrical work of refurbishment
Condition Improvement Fund (CIF)
Funding for salaries
Citizens Advice
Funding for outdoor planters
Community Foundation
Funding for kitchen equipment
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Paper Cup Project
8. INCOMING RESOURCES
| Restricted Funds Restricted Project Grants Liverpool City Council Community Foundation for Merseyside Enterprise Development Programme Crowdfunder Ltd General Unrestricted Funds Donations Merseyrail Cafe Sales Venue Hire Total Incoming Resources |
2023 3,800 - 2,500 - - 6,300 38,089 5,250 74,707 1,845 119,891 126,191 |
2022 24,490 1,570 - 32,250 - 58,310 20,307 2,500 5,576 - 28,383 86,693 |
|---|---|---|
9. RESOURCES EXPENDED
| Salaries Accommodation and Other Beneficiary Costs Storage Independent Examination Accountancy Legal Fees Professional Fees and Consultancy Consumable Supplies and Provisions Subscriptions IT and Website Health, Safety and Sanitation Advertising Depreciation Refurbishment and Repairs Premises and Administration Costs |
2023 98,223 233 1,573 700 770 - - 25,950 396 1,030 4,308 250 433 5,063 19,963 158,892 |
2022 51,671 123 509 700 770 2,522 2,500 4,245 109 1,812 480 311 433 10,877 4,695 81,757 |
|---|---|---|
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10. GENERAL INFORMATION
Paper Cup Project (Charity Number 1181449) is a Charitable Incorporated Organisation that registered as a Charity 7 January 2019. Its registered office is Paper Cup Coffee, Queen Square, Liverpool, Merseyside, L1 1RH. The accounts are stated in sterling the functional currency of the Charity.
11. TAXATION
The Charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
12. NET ASSETS BY FUND
Net Assets by Fund
| Tangible Fixed Assets Net Current Assets |
Unrestricted Funds - 20,468 20,468 |
Restricted Funds - - - |
Total Funds - 20,468 20,468 |
|---|---|---|---|
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Incoming Resources for the year ended 31/03/2023
| Incoming resources Incoming resources from generated funds Charitable Activity Liverpool City Council Donations Community Foundation for Merseyside Other Income Enterprise Development Programme The SpeedoMick Foundation Charities Aid Foundation America Liverpool Charity and Voluntary Services The Albert Hunt Trust Rise Construction Skelton Charity Cargill Global Funding Merseyrail Cafe Sales Condition Improvement Fund (CIF) Citizens Advice |
- 38,089 2,500 1,845 - 1,600 - - - - - - 5,250 74,707 2,000 200 |
2023 £ 126,191 126,191 126,191 |
1,570 20,857 - 450 32,250 2,000 5,085 4,405 5,000 500 1,500 5,000 2,500 5,576 - - |
2022 £ 86,693 86,693 86,693 |
|---|---|---|---|---|
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Expenses for the year ended 31/03/2023
| Expenses Costs of generating funds Charitable Activities Accommodation Rates Service charge Heat and light Repairs and renewals Fundraising Costs Consumable Supplies & Provision Refurbishment expenses Consumable items and merchandise Pest control Salaries NIC employer (wages and salaries) Pension contributions Staff welfare Accountancy fees Consultancy fees Legal costs (revenue) Travel and parking Insurance Health and Safety, PPE Postage, printing and stationery Telephone IT & Website Costs Subscriptions Storage Costs Bank charges Sundry expenses Depreciation of equipment |
2023 £ - 857 6,753 8,055 5,063 250 21,073 - 4,877 1,020 94,504 2,206 1,513 233 1,470 - - 630 1,131 3,288 1,613 434 1,030 396 1,573 - 490 433 158,892 158,892 |
2022 £ 123 - 1,394 1,098 200 311 3,813 10,677 432 - 50,347 247 1,077 - 1,470 2,500 2,522 576 201 480 22 51 1,812 109 509 198 1,155 433 |
|---|---|---|
| 81,757 | ||
| 81,757 |
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