Corrective Action Plans

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FINDING 2023-005 Finding Subject: COVID-19 - Education Stabilization Fund - Reporting Summary of Finding: Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be e...
FINDING 2023-005 Finding Subject: COVID-19 - Education Stabilization Fund - Reporting Summary of Finding: Condition and Context The School Corporation had not properly designed or implemented a system of internal controls, which would include appropriate segregation of duties, that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation was required to submit an annual data report to the Indiana Department of Education (IDOE) via JotForm, a form/report builder. Data to be submitted included, but was not limited to, current period expenditures, prior period expenditures, and expenditures per activity. During the audit period the School Corporation submitted two ESSER I reports, two ESSER II reports and two ESSER III reports, for a total of six reports. The annual data reports were to be prepared and submitted by the School Principal and reviewed by the Executive Business Director; however, no evidence of this review or oversight process could be provided. As such the annual data reports were prepared and submitted to IDOE without an oversight or review process to prevent or detect and correct errors. In addition, five of the six reports submitted during the audit period were not supported by the School Corporation’s records. The following errors were identified:  The ESSER I, Year 2 report, which had an applicable reporting period of October 1, 2020 through June 30, 201, reported $534,761 in expenditures. However, actual expenditures for the applicable reporting period totaled $478,883.  The ESSER 1, Year 3 report which had an applicable reporting period of July 1, 2021 to June 30, 2022, reported $0 in expenditures. However, actual expenditures for the applicable reporting period totaled $243,814.67.  The ESSER II, Year 1 report, which had an applicable reporting period of July 1, 2020 to June 30, 2021, reported $733 in expenditures. However, actual expenditures for the applicable reporting period totaled $322,539.  The ESSER II, Year 2 report, which had an applicable reporting period of July 1, 2021 to June 30, 2022, reported $0 in expenditures. However, actual expenditures for the applicable reporting period totaled $276,642.  The ESSER III, Year 2 report, which had an applicable reporting period of July 1, 2021 to June 30, 2022, reported $0 in expenditures. However, actual expenditures for the applicable reporting period totaled $1,315,208. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The school corporation will revise job descriptions to clearly identify segregation of duties for Federal Fund Coordinators, employees responsible for calculating accurate disbursement reports and reimbursement requests. Detailed expenditure reports will be generated for end of year reporting with the Accounting Specialist, Accounts Payable Coordinator and the Executive Director of Business Services completing a final review process providing signatures indicating review and accuracy before filing. Anticipated Completion Date: March 1, 2024.
Reporting for Head Start Criteria: When the finance staff completes a SF-425, Federal Financial Report to request grant funds, it must verify the accuracy and completeness of the reports and that they agree with the underlying accounting records. Condition: SF-425, Federal Financial Reports submitte...
Reporting for Head Start Criteria: When the finance staff completes a SF-425, Federal Financial Report to request grant funds, it must verify the accuracy and completeness of the reports and that they agree with the underlying accounting records. Condition: SF-425, Federal Financial Reports submitted did not agree to the underlying accounting records. Management Response and Planned Corrective Actions: Management agrees with this finding and will utilize existing control procedures to reconcile annual financial reports to the underlying accounting data. Responsibility for Corrective Action: Elaine Hayden, Interim Business Manager Anticipated Completion Date: Summer 2024.
Finding 2023 - 002 Reporting - Native Hawaiian Education – Assistance Listing 84.362A KA concurs with the Recommendation. In conjunction with the search and seating of a permanent School Director (in progress), the Reconstituted Governing Board (“RGB”) as a whole, intends to prioritize the: A) Updat...
Finding 2023 - 002 Reporting - Native Hawaiian Education – Assistance Listing 84.362A KA concurs with the Recommendation. In conjunction with the search and seating of a permanent School Director (in progress), the Reconstituted Governing Board (“RGB”) as a whole, intends to prioritize the: A) Updating and/or creation of policies (that either don’t exist or aren’t documented); B) Cascading policies to related processes and procedures; and C) Training appropriate staff; and D) Monitoring the practices, to ensure the day to day practices are consistent with and aligned to the policies, processes and procedures. Policy Focus: Grant Management (e.g., accounting, reporting, budgeting, compliance, authorized procurement, inventory, federal draws, federal progress report, communication with federal program office, utilization of curriculum, supplies, equipment in compliance with the specific grant). Any questions regarding this response may be directed to Aumoana Kanakaole-Lato, Reconstituted Governing Board Chair at aumoana.kanakaole@kamalaniacademy.org.
This issue has already been addressed and remedied. The institution has updated procedures to send automatic email Exit notification to the student at any change of status, other than from full-time to half-time. This email notification is recorded in the student's activity feed, and a screen shot o...
This issue has already been addressed and remedied. The institution has updated procedures to send automatic email Exit notification to the student at any change of status, other than from full-time to half-time. This email notification is recorded in the student's activity feed, and a screen shot of the activity feed noting the date the exit notification was sent will be placed in the student's financial aid file.
Finding 2023.002 Response: The information reported on filing for Period 6 will be reviewed internally by others in the Finance department to ensure the expenses are reported accurately. Responsible Party: Terry Lutz, CFO at Scheurer Hospital Estimated Completion: 03/31/2024
Finding 2023.002 Response: The information reported on filing for Period 6 will be reviewed internally by others in the Finance department to ensure the expenses are reported accurately. Responsible Party: Terry Lutz, CFO at Scheurer Hospital Estimated Completion: 03/31/2024
Finding 2023.001 Response: Scheurer Hospital plans to save the documentation noting the overstated expenses along with the unused lost revenue in the audit file. In the event of a further audit, Scheurer Hospital will have the documentation to support the federal awards expended. Responsible Party...
Finding 2023.001 Response: Scheurer Hospital plans to save the documentation noting the overstated expenses along with the unused lost revenue in the audit file. In the event of a further audit, Scheurer Hospital will have the documentation to support the federal awards expended. Responsible Party: Terry Lutz, CFO at Scheurer Hospital Estimated Completion: 02/21/2024
Reporting for Education Stabilization Fund Federal program: ALN 84.425U&D Education Stabilization Fund Federal agency: U.S. Department of Education Pass-through entity: Colorado Department of Education Criteria: As an LEA, the LEA is required to submit certain annual financial reports...
Reporting for Education Stabilization Fund Federal program: ALN 84.425U&D Education Stabilization Fund Federal agency: U.S. Department of Education Pass-through entity: Colorado Department of Education Criteria: As an LEA, the LEA is required to submit certain annual financial reports to the SEA on an annual basis. Condition: While the Organization submitted the required annual financial reports, these reports did not tie back to the accounting records in a material amount. Management Response and Planned Corrective Actions Criteria: Management agrees with this finding and is working on implementing an annual financial report reconciliation process as staffing allows. Responsibility for Corrective Action: Christina Vetromile, Business Manager Anticipated Completion Date: Unknown
Activities Allowed or Unallowed, and Allowable Costs and Cost Principles for Education Stabilization Fund Federal program: ALN 84.425U&D Education Stabilization Fund Federal agency: U.S. Department of Education Pass-through entity: Colorado Department of Education Criteria: A non-fede...
Activities Allowed or Unallowed, and Allowable Costs and Cost Principles for Education Stabilization Fund Federal program: ALN 84.425U&D Education Stabilization Fund Federal agency: U.S. Department of Education Pass-through entity: Colorado Department of Education Criteria: A non-federal grant recipient should set reasonable budgets for programs to minimize incentives to miscode expenses. The recipient should compare budgeted and actual allowable costs and investigate variances where applicable. Condition: While the Organization created a budget for overall activities, they did not input the budget into their accounting system or create an outside tool to track actual grant expenditures with the budget. Management Response and Planned Corrective Actions Criteria: Management agrees with this finding and is working on implementing a budget to actual reporting process as staffing allows. Responsibility for Corrective Action: Christina Vetromile, Business Manager Anticipated Completion Date: Unknown
Recommendation: We recommend the University review its policies and procedures for the filing of the HEERF to ensure that there is sufficient time in the process to meet the due date in accordance with the stated criteria. The evidence of submission should include the original supporting documentati...
Recommendation: We recommend the University review its policies and procedures for the filing of the HEERF to ensure that there is sufficient time in the process to meet the due date in accordance with the stated criteria. The evidence of submission should include the original supporting documentation for the information published. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University will review its policies and procedures for the filing of HEERF required reports to ensure that that there is sufficient time in the process to meet the due date in accordance with the stated criteria. Name(s) of the contact person(s) responsible for corrective action: Michael Moos, Controller Planned completion date for corrective action plan: Completed in January 2024
Recommendation: We recommend that the University review its processes and internal controls to includes a review of all manual adjustment made within NSLDS. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The err...
Recommendation: We recommend that the University review its processes and internal controls to includes a review of all manual adjustment made within NSLDS. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The error was made while making manual corrections to prior year posting. The University formally document a policy and procedure that will require the review all manual edits made to NSLDS. Name(s) of the contact person(s) responsible for corrective action: Mark Quistorf and Registrar’s office. Planned completion date for corrective action plan: March 31, 2024
Management will establish more oversight on the deposits to replacement reserve account
Management will establish more oversight on the deposits to replacement reserve account
Since the late submissions in November 2022, DRNY has ensured that the SF425s were submitted in accordance with the due dates per the Grant Award notices (GANs). Further DRNY has now calendared within outlook all the grant reporting required for awards for the next year and created an excel tracking...
Since the late submissions in November 2022, DRNY has ensured that the SF425s were submitted in accordance with the due dates per the Grant Award notices (GANs). Further DRNY has now calendared within outlook all the grant reporting required for awards for the next year and created an excel tracking sheet of all the remaining reporting required for current grants. Both the Executive Director and the CFO have access to this excel tracking and the calendar invites. As new GANs are received, the CFO will calendar in the tracking document all reporting requirements and within outlook send out invites each calendar year and copy the Executive Director on those calendar invites. CFO will confirm to Executive Director as these reports are complete and document in the excel tracker. Danielle Myers, CFO, is responsible for the resolution of this corrective action plan by 3/1/2024.
Recommendation: We recommend the College review its reporting procedures surrounding their third party servicer to ensure reporting is accurate and complete. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Link t...
Recommendation: We recommend the College review its reporting procedures surrounding their third party servicer to ensure reporting is accurate and complete. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Link to third party servicer has been updated in the appropriate places. Instructions related to updating third party servicer information has been included in the Bursar desk manual. Name(s) of the contact person(s) responsible for corrective action: Michele Peterson Planned completion date for corrective action plan: 12/31/23
Federal Agency: U.S. Department of Housing and Urban Development Program/Cluster: Section 8 Housing Choice Voucher Cluster Federal Assistance Listing Number: 14.871 Pass‐through: N/A Award No. and Year: CA065‐2023 Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Contr...
Federal Agency: U.S. Department of Housing and Urban Development Program/Cluster: Section 8 Housing Choice Voucher Cluster Federal Assistance Listing Number: 14.871 Pass‐through: N/A Award No. and Year: CA065‐2023 Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance Views of Responsible Officials: We concur. The Housing Authority addressed this issue when the City was informed in March 2023 there was not enough documentation prior to online grant reporting for the auditors to verify grant reports were reviewed prior to submission on other grants being audited. The Housing Authority has continuously maintained a check and balance approach for preparing and reviewing VMS reports before HUD submission. All reports are prepared by the Housing Authority and finance staff, then reviewed by either the Housing Authority Manager or the Deputy Executive Director before submission to HUD. The reviewer is now documenting their review prior to submitting the VMS reports. Responsible Individual(s): Tanya Tran, Housing Division Manager Anticipated Completion Date: June 30, 2023
Federal Agency: U.S. Department of Homeland Security Program/Cluster: Staffing for Adequate Fire & Emergency Response Federal Assistance Listing Number: 97.083 Pass‐through: N/A Award No. and Year: EMW‐2020‐FF‐00816, 2020 Compliance Requirement: Reporting Type of Finding: Material Weakness in Intern...
Federal Agency: U.S. Department of Homeland Security Program/Cluster: Staffing for Adequate Fire & Emergency Response Federal Assistance Listing Number: 97.083 Pass‐through: N/A Award No. and Year: EMW‐2020‐FF‐00816, 2020 Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance Views of Responsible Officials and Corrective Action Plan: The Fire Department has addressed this issue when the City was informed in March 2023 there was not enough documentation prior to online grant reporting for the auditors to verify grant reports were reviewed prior to submission on other grants being audited. The two (2) submissions in question were reviewed and verified by management but were not documented for the auditors to verify when the review was completed, prior to the City being notified in March 2023 to further document the review process. The City has implemented this recommendation. Responsible Individual(s): Taylor Armour, Administration Division Manager Anticipated Completion Date: June 30, 2023
Finding 2023-002: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: September 30, 2024 Recommendation: It was recommended management of Sessions Village 202 review their internal controls over the cash...
Finding 2023-002: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: September 30, 2024 Recommendation: It was recommended management of Sessions Village 202 review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the implementation of general ledger account coding on cash disbursements is consistently performed going forward. Action Taken: The Executive Director and A/P Clerk agreed upon using certain general ledger account codes consistently for similar purchases from the same vendor. In Sessions Village 202’s accounting system, these agreed upon general ledger account codes have been pre-set as a default for certain vendors. When invoices are received that should be appropriately coded to this default general ledger account code, errors of not documenting the general ledger account code on the invoice are periodically made. Sessions Village 202 will consistently perform the general ledger account coding internal control procedures on invoices going forward.
Finding 2023-001: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: September 30, 2024 Recommendation: It was recommended Sessions Village 202 obtain the missing signed documents if the tenant still re...
Finding 2023-001: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: September 30, 2024 Recommendation: It was recommended Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, it was recommended Sessions Village 202 review all tenant files to ensure all other records are complete. Also, it was recommended staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process. Action Taken: The first tenant listed above no longer resides at the project and a signed HUD model lease cannot be obtained. On November 7, 2023, the Property Manager at Sessions Village 202 obtained the missing signed documents for the second tenant listed above. The Property Manager at Sessions Village 202 will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.
Finding 2023-003: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: December 31, 2023 Recommendation: It was recommended management of Cheney Care Community review ...
Finding 2023-003: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: December 31, 2023 Recommendation: It was recommended management of Cheney Care Community review their internal controls over the cash and implement a policy to monitor the bank ratings quarterly for the financial institutions the project holds funds at. Action Taken: Cheney Care Community will review and update their policies and procedures to ensure the bank ratings for the financial institutions are monitored on a quarterly basis and the documentation is maintained.
Finding 2023-002: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: September 30, 2024 Recommendation: It was recommended management of Cheney Care Community review...
Finding 2023-002: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: September 30, 2024 Recommendation: It was recommended management of Cheney Care Community review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the implementation of general ledger account coding on cash disbursements is consistently performed going forward. Action Taken: The Executive Director and A/P Clerk agreed upon using certain general ledger account codes consistently for similar purchases from the same vendor. In Cheney Care Community’s accounting system, these agreed upon general ledger account codes have been pre-set as a default for certain vendors. When invoices are received that should be appropriately coded to this default general ledger account code, errors of not documenting the general ledger account code on the invoice are periodically made. Cheney Care Community will consistently perform the general ledger account coding internal control procedures on invoices going forward.
Finding 2023-001: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: September 30, 2024 Recommendation: It was recommended management of Cheney Care Community review...
Finding 2023-001: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: September 30, 2024 Recommendation: It was recommended management of Cheney Care Community review their internal controls over the financial reporting and close processes to determine whether additional controls over the preparation of the final trial balances and related schedules can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Action Taken: Cheney Care Community will review their internal controls over the financial reporting and close processes to determine whether additional controls need to be implemented going forward.
Condition: For the annual report covering January 1, 2022 through December 31, 2022, the indirect cost recovery/facility and administrative costs charged on the grants of the section (a)(1) institutional portion were incorrect based on supporting documentation provided by the University. In addition...
Condition: For the annual report covering January 1, 2022 through December 31, 2022, the indirect cost recovery/facility and administrative costs charged on the grants of the section (a)(1) institutional portion were incorrect based on supporting documentation provided by the University. In addition, for the fourth quarter 2022 (quarter ending December 31, 2022) and the first quarter 2023 (quarter ending March 31, 2023) institutional portion reports, the University reported the full amount of section (a)(1) student portion of HEERF awarded to the University on the section (a)(3) line instead of the section (a)(1) student funds awarded line, when the amount on the section (a)(3) line should have been the total Fund for the Improvement of Postsecondary Education (FIPSE) funding awarded to the University. Also, the first quarter 2023 (quarter ending March 31, 2023) institutional portion report was submitted to the Department of Education and uploaded to the University's website more than 10 days after the end of the quarter. Corrective Action: The University has updated their procedure for preparing and reviewing the required reports and has established a team from the finance department to discuss issues that arise. The team will handle the identified discrepancies through their resolution. The team will meet at least monthly, and as requested by the Senior Accountant of Grants or the Director of Finance and Accounting (DFA). The team is receiving training on procedures, guidelines, and terminology to ensure accuracy on completed reports to ensure compliance. The updated procedure is that the Senior Accountant of Grants will prepare the quarterly and annual reports based on data provided in the accounting system and from the Office of Financial Aid and assure that the reported data ties to the University’s records. The completed reports will be reviewed by the Director of Finance and Accounting. When needed, the finance team will meet to handle apparent discrepancies. Approved reports will be returned by the DFA to the Senior Accountant who will then post the reports for public viewing and submit a copy to the funder. Person Responsible For Corrective Action: Cedric Lewis, Director of Finance & Accounting Anticipated Completion Date: March 31, 2024
Corrective Action Plan Finding: Finding 2023-003-Section III Summary Report Not on File-Reporting Condition: Federal regulations require that the Authority update its inventory of equipment and Office Equipment at least every two years. Corrective Action Planned We will comply with the audito...
Corrective Action Plan Finding: Finding 2023-003-Section III Summary Report Not on File-Reporting Condition: Federal regulations require that the Authority update its inventory of equipment and Office Equipment at least every two years. Corrective Action Planned We will comply with the auditor’s recommendation. Person responsible for corrective action: Skipton Evans, Executive Director Telephone: (918) 423-3345 McAlester Housing Authority Fax: (918) 426-3064 520 W. Kiowa McAlester, OK 74501 Anticipated Completion Date- June 30, 2024
Due to turnover of the Organization's Finance and Administration manager, the Organization was unable to have the annual audit completed within the required timeframe, and subsequently were also late in submission of the FAC report. The Organization has internally hired a Staff Accountant and an Ac...
Due to turnover of the Organization's Finance and Administration manager, the Organization was unable to have the annual audit completed within the required timeframe, and subsequently were also late in submission of the FAC report. The Organization has internally hired a Staff Accountant and an Accounts Payable to assist with audit preparation. The Organization has externally contracted an accounting firm that has provide the Organization with a CPA to conduct audit preparation and other financial services, as requested. We can confirm that this is not a repeat finding but an isolated instance. The Organization will work on getting financial information timelier (i.e. submit the reporting package with the guidelines of Uniform Guidance).
FINDING 2023-005 Finding Subject: Education Stabilization Fund - Reporting Summary of Finding: The School Corporation had not properly designed or implemented a system of internal controls that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporatio...
FINDING 2023-005 Finding Subject: Education Stabilization Fund - Reporting Summary of Finding: The School Corporation had not properly designed or implemented a system of internal controls that would likely be effective in preventing, or detecting and correcting, noncompliance. The School Corporation was required to submit annual data reports to the Indiana Department of Education (IDOE) via JotForm, a form/report builder. Data to be submitted included, but was not limited to, current period expenditures, prior period expenditures, and expenditures per activity. During the audit period the School Corporation submitted two ESSER I reports, two ESSER II reports and two ESSER III reports, for a total of six reports. The annual data reports were complied, prepared and submitted by the Assistant Superintendent and reviewed by the Treasurer prior to submission. However, this review process was not effective and did not detect and allow correction of errors prior to submission. All six of the submitted reports were selected for testing. Four of the reports were not supported by the unit's records. The financial information provided did not agree to the data submitted in the reports; therefore, we could not determine the accuracy of the reports. The lack of controls was systematic throughout the audit period. The noncompliance was isolated to the four reports identified above. The auditors recommended that management of the School Corporation establish a proper system of internal controls and develop policies and procedures to ensure reports are supported by the ledgers or reports used to complete the report Contact Person Responsible for Corrective Action: Rolland Abraham Contact Phone Number and Email Address: 765-584-1401, rabraham@randolphcentral.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The School Corporation is required to submit annual data reports to the Indiana Department of Education (IDOE) via JotForm, a form/report builder. Data to be submitted includes, but is not limited to, current period expenditures, prior period expenditures, and expenditures per activity. The annual data reports will be complied/prepared by the Treasurer and the Assistant Superintendent to ensure the reports are supported by the corporation’s financial data. The JotForm will be reviewed by the Superintendent prior to submission. Anticipated Completion Date: 2/21/2024
Management Response: Management will ensure an individual who does not perform the adjudication will review and document whether information was entered correctly and whether the adjudications are proper and documented prior to a member’s start date. Responsible Person: Lisa Moore, Executive Direc...
Management Response: Management will ensure an individual who does not perform the adjudication will review and document whether information was entered correctly and whether the adjudications are proper and documented prior to a member’s start date. Responsible Person: Lisa Moore, Executive Director Anticipated Remediation Date: Fiscal year ended August 31, 2024
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