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Audited Accounts & Audit Report for the year 2012-2013 SSA- Karnataka, Jharkhand & West

Bengal

41st Quarterly Review Meeting of Finance Controllers on 29th May 2014 & 30th May 2014

New Delhi

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Compliance of Audit Observations awaited

S. No.

State/UTCompliance of Audit Observations

awaited

1 A& N Island 2010-2011, 2011-20122 Andhra

Pradesh2005-2006, 2006-2007, 2010-2011

3 Arunachal Pradesh

2005-2006, 2006-2007, 2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012

4Assam 2008-2009, 2009-2010, 2010-2011, 2011-

2012

5 Bihar 2005-2006, 2006-2007, 2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012

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S. No.

State/UTCompliance of Audit Observations

awaited6 Chhattisgarh .2008-2009, 2009-2010, 2010-2011, 2011-

2012

7 Chandigarh 2008-2009, 2009-2010, 2011-2012

8 Delhi 2010-2011, 2011-2012

9 Daman & Diu 2010-2011, 2011-2012

10Dadra & Nagar Haveli

2009-2010, 2011-2012

11 Goa 2008-2009, 2009-2010, 2010-2011, 2011-2012

12 Gujarat 2008-2009, 2009-2010, 2010-2011, 2011-2012

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S. No.

State/UTCompliance of Audit Observations

awaited

13Haryana 2005-2006, 2006-2007, 2007-2008, 2008-

2009, 2009-2010, 2010-2011, 2011-201214 Himachal

Pradesh2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012

15 Jammu & Kashmir

2009-2010,2010-2011, 2011-2012

16 Jharkhand 2009-2010, 2010-2011, 2011-2012

17 Karnataka 2006-2007, 2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012

18 Kerala 2006-2007, 2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012

19 Lakshadweep 2010-2011, 2011-2012

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S. No.

State/UTCompliance of Audit Observations

awaited20 Madhya

Pradesh2006-2007, 2008-2009, 2009-2010, 2010-2011, 2011-2012

21 Maharashtra 2008-2009, 2009-2010, 2010-2011, 2011-2012

22Manipur 2005-2006, 2006-2007, 2008-2009, 2009-

2010, 2010-2011, 2011-201223 Meghalaya 2006-2007, 2007-2008, 2008-2009, 2009-

2010, 2010-2011, 2011-201224 Mizoram 2008-2009, 2009-2010, 2010-2011, 2011-

2012

25Nagaland 2005-2006, 2006-2007, 2007-2008, 2008-

2009, 2009-2010, 2010-2011, 2011-2012

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S. No.

State/UTCompliance of Audit Observations

awaited26 Odisha 2010-2011, 2011-2012

27 Punjab 2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012

28 Puducherry 2009-2010, 2010-2011,

29 Rajasthan 2008-2009, 2009-2010, 2010-2011, 2011-2012

30 Sikkim 2006-2007, 2009-2010, 2010-2011, 2011-2012

31Tamil Nadu 2006-2007, 2007-2008, 2008-2009, 2009-

2010, 2010-2011, 2011-201232 Tripura 2007-2008, 2008-2009, 2009-2010, 2010-

2011, 2011-2012

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S. No.

State/UTCompliance of Audit Observations

awaited33 Uttar Pradesh 2007-2008, 2008-2009, 2009-2010, 2010-

2011, 2011-2012

34 Uttarakhand 2010-2011,2011-2012

35 West Bengal 2009-2010, 2010-2011, 2011-2012

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Audited Accounts & Audit Report for the year 2012-2013-SSA, Karnataka State :

i. Audited Utilization Certificate and Audited FMR-I, II & III not enclosed. Consolidated annual financial statement also not enclosed.

ii. Para on compliance of previous years audit observations pertaining to SPO/DPOs not enclosed.

iii. As per MHRD guidelines uniform is to be supplied to all girl students, SC/ST/BPL boys only. But Rs.1789.46 lakhs were spent on purchase of uniform for non-eligible students, which is yet to be reimbursed by State Govt. Moreover as per SSA guidelines, procurement of uniform is decentralized at SMC level, but SSA/Karnataka during the year 2012-2013 has followed centralized vendor identification process, thus violating SSA framework guidelines.

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iv. 3916 nos. SDMCs which received grant more than Rs. 1 lakh during the year were Audited, but none from district of Mandya as no arrangements were made by DPO. Gist of observations made by the Auditors be sent to us for perusal.

v. In the Books of accounts following appear as outstanding advances as on 31.3.2013 Rs.2752.19 lakhs as DPEP, Salary but DPEP accounts were closed long back in year 2003 Rs.6.80 lakhs as RMSA, which is non SSA activity. These advances be settled early.

vi. Canara Bank-FCRA account, which is a non-operational bank account be closed.

vii. There are few long outstanding statutory dues and long outstanding liabilities. These be settled early.

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viii. Rs.4188.23 lakhs is appearing as outstanding advances as on 31.3.2013, against staff, universities NGOs, Govt. and other agencies. These advances need to be settled promptly.

ix. Rs.357387 were paid to Poornima Gramina Abhuvruddhi. But Utilization Certificate provided is only for Rs.3,15,295. Balance amount of rs.42092 yet to be received by SSA.

x. As per Balance Sheet, total outstanding advances as on 31.3.2013 are Rs.17033.23 lakhs, which include Rs.5637.15 lakhs outstanding advances pertaining to SPO office. Rs.3895.91 lakhs is appearing as Advance to Karnataka Text Book society and Rs.425.62 lakhs as Advance to Rajiv Gandhi Rural Housing Society, Rs. 3 lakh as Advance to Primary School Teachers Association and Rs.266.69 lakhs as Advance Member Secretary General Thammaiah on account of advance. These be settled/adjusted early.

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Auditor has pointed out that:

i. Advances released to District Offices and other implementing office have not been reviewed / monitored and reconciled at periodic internals

ii. Compliance to provision of Income Tax Act relating to TDS and timely filling of ETDS returns is weak.

iii. Internal control measures with regard to transfer of funds, maintenance of accounts & records, periodical reconciliation of funds record and releases, advances outstanding, need to be strengthened.

iv. DIETs are clubbing SSA grants along with other non SSA grants. Non SSA grants are being credited to SSA Bank A/C. Separate Bank accounts be maintained for non SSA funds.

v. DPO accounts are not being incorporated in SPO books of accounts on month to month basis/regular intervals. But at end of financial year.

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vi. Proper control for maintenance of accounts at SDMC level lacking

vii. Receipts & payment A/C at DPO level not prepared on monthly basis but once in a year.

viii. Auditor has provided gist of observations regarding DPO/Sub DPOs offices, at Page 12 to 52 of the Audit Report all of these need to be attended on priority basis. These observations mainly pertain to TDS not deductedNon maintenance proper records/registersRecovery of excess payment madeNon reconciliation of cash book & Bank Account etc.

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KGBV

i. Through accounting software has been installed, but the same is not put to use. But accounts maintained manually.

ii. Monthly district KGBV accounts are not getting incorporated in SPO-KGBV books of accounts on month to month basis Maintenance of accounts at DPO-KGBV level is to be strengthened.

iii. These are few long outstanding advances/liabilities appearing in books of accounts. These be adjusted on priority basis.

iv. Periodical reconciliation of grants released and receipt not done.

v. Auditor at Para-12 of Audit Report (KGBV) have pointed out large number of audit observations, which need to be looked into and necessary improvement carried out.

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Audited Accounts & Audit Report for the year 2012-2013-SSA- West Bengal

1. In FMR-I Expenditure (SSA, NPEGEL, KGBV) has been shown as Rs.443154.35 lakhs. Under Note-1, it is indicated that this expenditure includes advances, both, civil and other paid during the year. This is not in-accordance with FM&P manual. Advances should not be shown as expenditure till end use of funds is known and statement of Expenditure/ Utilization Certificates have been received from spending unit.

Further in Note-2, while calculating Expenditure of SSA, it is indicated that. Advances against Civil Works paid during the year, less refund i.e., Rs. 202613.75 lakhs have been shown as expenditure. This is not in-accordance with FM&P manual. Advances should not be shown as expenditure, till end use is known and UCs have been received.

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2. Utilization Certificate for (DPEP) has been submitted indicating that an expenditure of Rs.127.97 lakhs have incurred. Further it has been certified that this sum has been utilized during FY-2012-2013 for purpose for which it was sanctioned and leaving unutilized balance as on 31.3.2013 of Rs.670.17 lakhs.

The DPEP accounts were closed long back in year 2003-2004 and amount lying unutilized was to be returned back to GOI. Please clarify when amount would be refunded back to GOI.

3. In FMR-III expenditure have been indicated as Rs.437272.97 lakh, which does not match with amount of Expenditure stated in FMR-I. We note that both FMR-I and FMR-III have been audited and signed by the same Auditor.

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4. As per Expenditure Statement of SSA for the year 2012-2013 sum of expenditure incurred in all the District Offices & SPO office is only Rs.233109.82 lakhs.

5. In the consolidated Balance Sheet as on 31.3.2013(Rs. in lakhs)

(i) Advances against Civil Works = 243034.67

(i) Advances against Other Advances = 45495.07

(i) Advances disbursed to District = 1555295.45

(i) Balance at SPO/District cash in Bank/Hand

= 59045.38

(i) Other liabilities = 3015.73

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In the balance sheet huge amount is being shown as advances against Civil Works / Other advances etc. This is viewed with concern by the MHRD. All outstanding advances should be settled promptly.

Further Balance (Cash at Bank/Hand) at SPO/District does not match with the UC, Consolidated Annual financial statement and Receipt and Payment A/C. Please note that UC must be prepared on the basis of Books of Accounts maintained by the Society.

5. Details regarding Audit of Accounts maintained by SMCs which received grant of more than Rs. 1 lakh not furnished. The gist of the observations made by the Auditors may please be sent to MHRD for perusal.

6. Details regarding pending Audit observations and settlement of Audit observations during year not furnished.

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Auditor has pointed out that:

i. Most of the district are not reconciling the bank balance with the balances as per cash book.

ii. District Birbhum:• An amount of Rs.86,350/- issued prior to Rs.01.01.2013 still

remains un-cleared• Advance aggregating to Rs.204,366,016/- disbursed prior to

01.04.2012 are still outstanding.• Utilization Certificate are not properly maintained.

• District Burdwan :• Civil Advance amounting to Rs.42,439,000/- relating to 2010-

2011 is still to be utilized as no Utilization Certificate is received. Utilization Certificate for Civil Advance amounting to Rs.216,507,700/- received in 2011-2012 is still pending till the date of audit.

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iv. District Coochbehar :

• Suspense Account of Rs.4,99,894/- as appearing in Balance Sheet and Receipts and Payments Account represents receipts on various dates during financial year 2012-2013 source of which is not identified and hence credited to suspense account.

• For Grants other than civil an amount of Rs.45,45,67,632/- has been adjusted during the year as being utilized as certified by District Authority.

• Compliance of provisions relating to deduction of TDS payment thereof and submission of quarterly returns needs to be improved.

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• Provision of Rs.44,00,000/- has been made at the end of the year towards interest receivable from Central Bank of India. However no supporting or worksheet for the same was made available.

v. District Dakshin Dinajpur :• The DPO is neither maintaining the ledger books

systematically nor ledgers are authenticated by the concerned person.

• No quotation is being taken for the expenses to be incurred during the training programmes, as it is learnt that providers for such items are not available in sufficient numbers.

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(vi) District Darjeeling:

• Ledger book is not properly maintained in as much as receipts are not recorded therein and opening balances as at 01.02.2012 are not brought forward.

• Stock Register and Bill Register is not maintained• Opening Balance of Rs.58,016,793/- as on 01.04.2012

includes an amount of Rs.5,14,50,000/- being amount defalcated during financial year 2004-2005 for which no provision is held in the books.

• Out of total amount capitalized during the year, amount of RS.24,231,000/- is capitalized only on the basis of certificate received from Public Health Engineering Department.

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vii. District Hooghly :

• It is noticed from B.R.S. as at 31.03.2013 that it includes several debits and credit entries which remain unadjusted for more than three months including unadjusted entries since 2003.

• It is noticed that outstanding advance as on 31.03.2013 includes amount disbursed in financial year 2004-05 but still remain unadjusted.

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viii. District Howrah:• The register for collection of Utilization Certificate was

not updated• During the year the DPO received a total refund of

Rs.4.81 crores out of which details of head wise breakup was not available.

• It was found that a cheque amounting to Rs.950/- bearing ch.no.32028328 issued on 19.09.2012 is still appearing in the BRS as on 31.03.2013

• It was found that a cheque amounting to Rs.13,500/- bearing ch. no. 875864 received on 06.09.2012 is not yet credited in the bank account and is appearing in the BRS as on 31.03.2013.

• Assets /Stock purchased and transferred to the CLRCs,VEC,WEC,SMC are not recorded at any level.

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ix. District Jalpaiguri:

• Amount debited by United Bank of India on various dates during the financial year 2012-2013 aggregating to Rs.1480677 is not recorded in Bank Book.

• Amount credited by United Bank of India on various dates during financial year 2012-2013 aggregating to Rs.1339750 is not recorded in Bank Book.

• Cheque of Rs.599/- for payment of TDS issued on 31.05.2012 is still not cleared.

• The amount of Rs.46,780.00 in Suspense Account as appearing in liabilities side of Balance Sheet as at 31.03.2013 represent amount received in the financial year 2011-2012 source of which is not known.

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• The amount of interest earned on SSA funds at various units including the CLRS’S are not recorded as income in DPOs books of accounts.

• Fund of Rs.1,70,80,000 received from Jalpaiguri Zilla Parishad (TSC Cell) during the year on 28.03.2013 for disbursement on their behalf has not been disbursed till date of our audit.

x. District Kolkata:

• Maintenance of the UC register in both the civil and the non-civil departments is not done systematically/properly.

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• The bank account of DPO, Kolkatta maintained with Bank of India Rash Behari Avenue Branch, S/B A/c No.401510100013775 is not being reconciled inspite of continuous adverse comments in the previous audit reports of the statutory auditors as well as Internal Auditors. There is huge differences of Rs.7,65,42,937.69 between the balances as per bank statement and Books of accounts as on 31.3.2013.

• The DPO is not maintaining the Cash Book and Ledger Book properly.

• TDS not deducted in case of payment made towards consultancy charges.

• Long outstanding balances other then civil advances

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KGBV:1. Birbhum: Utilization Certificate is not maintained

properly.2. Bankura : DPO office has not maintained

the UC register properly for the FY-2012-2013. Recurring expenses advance register have not been maintained properly.

3. Dakshin Dinajpur, Murshidabad: Realization of UC of advances is not at all satisfactory

4. Siliguri : In absence of requisite bills, vouchers & UCs unable to comment on correctness of expenditure of Rs.41,07,068/- incurred during the year.

5. South 24 Parganas: Unadjusted advance against civil work amounting to Rs.3,87,500 are lying in books of accounts from April 1, 2011.

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Audited Accounts & Audit Report for the year 2012-2013, SSA-Jharkhand

1 Loan from DPEP = 17.752. NCERT & Other Suppliers for

Free Text Books= 644.91

3. 12th FC fund of GOJ for Civil Works

= 6808.57

4. Outstanding liabilities = 7001.36 5. Advances from other agencies = 6146.99

1. In the Balance Sheet an amount of Rs.21321.46 lakhs have been shown as current liabilities.

(Rs. in lakhs)

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All these current liabilities need, detailed breakup yearwise and intervention head wise. Please analyses /Review whether these are liabilities to be paid from SSA funds and whether the sanction of PAB has been obtained/exist for the spillover amount for incurring the expenditure.

2. As on 31.3.2013 Outstanding advances for Civil Engg. Work is Rs. 120973.15 lakhs, Outstanding Advances for programme expenditure is Rs.39064.54 lakhs.

• Huge amount is outstanding for Civil Engg. Works & programme expenditure. In fact the position has deteriorated as compared to previous year.

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• Need to have better co-ordination with Civil Engg. Department. Please collect/Adjust the expenditure for all the completed works & where statement of expenditure have been received. Please submit action plan to settle these huge outstanding advances within reasonable time period.

• As per Para-75.1 of FM&P the Utilization Certificate for all advances given for programme implementation should have been received within 1 month of the close of FY i.e., by April 2013.

• The expenditure which have not been incurred, the advances should be refunded and deposited with SPO/DPO bank A/C

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3. Huge amount of balances are lying in the Bank A/C maintained by DPO.

I.Hazaribagh = Rs.1278.16 lakhsII.Gumla = Rs.1090.999 lakhsIII.Palamu = Rs.2745.563 lakhs

Further release of funds to these districts be regulated. If amount is not required to be spent at DPO level, same may be refunded back to SPO.

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4. Review of advances for program expenditure reveal that:I. Advances to NGOs = Rs.1192.49 lakhsII. Advances to NPEGEL = Rs.934.87 lakhsIII. Advances to VEC for Training / Grants = Rs.22791.21

lakhsIV. Advances to VEC for Bridge course = Rs.2243.72 lakhs

All these outstanding advances need to be settled promptly. Huge amount of Rs.22791.21 lakhs lying as outstanding advances with VECs need special attention and prompt action on the part of SSA management to adjust the same by submission of UCs.

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5. An amount Rs.3197.85 lakhs appear as receivable from GOJ for text books (OBC & General). This is in addition to Rs.448.41 lakhs shown as Receivable from State Govt. for APL boys-Uniform.

6. NPEGEL, Expenditure Rs.558.33 lakhs include Management cost = Rs.2600.49 lakhs as credit entry. There is no separate intervention Head approved by AWP&B. Then how expenditure have been shown.

7. Management letter not enclosed. 8. FMR-III is not as per prescribed format. Kindly

resubmit.9. The review of intervention wise expenditure reveal

that approved:

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Activity AWP&B Actual Expenditure

Savings

Uniform 17444.43 4973.50 12470.93

Free Text Books 7542.38 6168.99 1373.39

Huge savings under Uniform / Free Text Books intervention as compared to approved AWP&B is surprising. Whether SSA society has not provided these entitlements to the children in time.

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10. In CAFS: Rs.53290.00 lakhs (31% of total expenditure) during the year have been shown as other expenses.In the AWP&B approved by PAB, there is no such intervention head for expenditure. Apparently the expenditure have not been allocated/booked against the proper intervention..

11. The settlement of previous years, Audit objection, do not mention any details, yearwise regarding the compliance / non compliance of no. of Audit observations made by Statutory Auditors by DPO/SPOs office.

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Auditor in his report has pointed out.

(i) No Internal Audit conducted by SSA during FY-2012-2013. Due to this Internal Audit Reports could not be persued by the Auditor and so unable to comment on the adequacy of the Internal Control System. SSA must introduce the Internal Audit immediately.

(ii) Bank Reconciliation:In Sindega DLO Rs.29,97,154/- is credited in the bank accounts but entry is not made in the books where as a cheque of is Rs.5,56,250/- was issued from SBI but entry was made in BOI.In Pakur DLO there are several Stale cheques which is not reversed during the year. At the BRC level BRS is not being done at the regular interval of time.

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iii. Deposit of Statutory Liability :P.F. Deducted has not been deposited by SPO within the

due date. In Hazaribagh division TDS is not deducted on Hire charges of vehicle. In Sindega, Saraikela tax deducted has not been deposited within the due date.

iv. Adjustment of Advances:Huge amount of Rs.1603 crore unadjusted advances is

lying as on balance sheet date. In DLO simdega, Saraikela, Dhanbad, Bokaro, Lohardaga, Chatra, East Singhbhum, West Singhbhum, Latehar, Ranchi, Jamtara, Giridih, Hazaribagh, Garhwa, Sahibganj, Dumka, Gumla huge Civil Advances are being carried forward from several years.

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In DLO Pakur Advance given to NGO Foundation for Awareness counseling and Education (FACE) Rs.16,34,316/- is adjusted whereas utilization certificate of Rs.9,02,130/- was provided to the society.

v. Adjustment of Outstanding Liability :In DLO Simdega, Dhanbad, Lohardaga, East Singhbhum, Ranchi, Garhwa, Khunti provision for liability was made in earlier years but no payment or adjustment is being made. There liability should be written back if not required. In DLO Ramgarh liability is created without the proper supporting document.

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vi. Expenses Incurred without Budget :In DLO West Singhbhum and Pakur Expenses on

infrastructure for Library Books made without budget. Proper action should be taken.

vii. VEC Audit :6126 nos. of VEC were audited by several district auditors.

The common observation is that the proper Cash book is not being maintained by the VECs and other Records like Fixed Assets register, Ledger, voucher etc. are not being maintained properly. The basic training is required in the VECs for the keeping of Books of Accounts and other records.

viii Compliance of Previous Auditors observations :In DLO some of the audit observation of the previous auditors

are complied and some are in process.

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THANK YOU