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The Wingham Advance Times, 1995-07-26, Page 9NE SDA;; JULY 26.1995 • IYINGINADVANCETDOES BwYCA B,e 1A TOB G. AB q0 1pM0 C0 Town of WS.ng13.1tm Publics Utilitioi Co mission'-Wat lrworks riaaacial Stattlutents 3.t9f (1W Reid CHARTERED ACCOUNTANT WINGRAM, ONTARIO TO THE COMMISSIONERS, MEMBERS OF COUNCIL, INHABITANTS AND RATEPAYER$ OF TEE CORPORATION OF THE TOWN OF WINGRAM AUDITOR'S REPORT JO0,PMIN enxer BON KO KOWA MI. W.10?l lBB]BV 1091 I HAVE AUDITED THE BALANCE SHEET OF THE TOWN OF WINGHAM PUBLIC UTILITIES COMNI8820N - WATERWORKS AB AT DECEMBER 31, 1994 AND THE STATEMENT OF OPERATIONS AND EQUITY AND CHANGES IN FINANCIAL POSITION FOR THE YEAR THEN ENDED. THESE FINANCIAL STATEMENTS ARE THE RESPONSIBILITY OF THE COMMISSION'S MANAGEMENT. MY RESPONSIBILITY IS TO EXPRESS AN OPINION ON THESE FINANCIAL STATEMENTS BASED ON MY AUDIT. I CONDUCTED MY AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS. THOSE STANDARDS REQUIRE THAT I PLAN AND PERFORM AN AUDIT TO OBTAIN REASONABLE ASSURANCE WHETHER THE FINANCIAL STATEMENTS ARE FREE OF MATERIAL MISSTATEMENT. AN AUDIT INCLUDES EXAMINING, ON A TEST BASIS, EVIDENCE SUPPORTING THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL STATEMENTS. AN AUDIT ALSO INCLUDES ASSESSING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES MADE BY MANAGEMENT, AS WELL AS EVALUATING THE OVERALL FINANCIAL STATEMENT PRESENTATION.. IN HY OPINION, THESE FINANCIAL STATEMENTS PRESENT FAIRLY IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF THE TOWN OF HINGHAM, PUBLIC UTILITIES COMMISSION - WATERWORKS. AS AT DECEMBER 31, 1994, AND THE RESULTS OF ITS OPERATIONS FOR THE YEAR THEN ENDED IN.ACCORDANCE WITH THE ACCOUNTING PRINCIPLES DISCLOSED IN NOTE 1 TO THE FINANCIAL STATEMENTS. EEE WINGHAM, KWINGHAM, ONTARIO NOG 2W0 APRIL 6. 1994 TOWN OF WINGRAM WINGRAM PUBLIC UTILITIES COMMISSION - WATERWORKS BALANCE SHEET YEAR ENDED DECEMBER 31, 1994 (WITH COMPARATIVE FIGURES FOR 1993) BARRY W. REID CHARTERED ACCOUNTANT ASSETS: UNRESTRICTED CASH ACCOUNTS RECEIVABLE - SALES OF WATER - OTHER a INVENTORIES 1994 ,1993 $ 95,285 $ 34,586 48,235. 49,522 3,608 1,100 48.287 45.580 195,415 130.788 RESTRICTED: CASH 111 375 110,813 $ 306,79$ $ 241.601 LIABILITIES: CURRENT ACCOUNTS PAYABLE AND ACCRUED LIABILITIES PAYABLE TO OWN MUNICIPALITY CUSTOMER DEPOSITS FUND BALANCES AT THE END OF THE YEAR: RESERVE FUNDS (SCHEDULE I) EQUITY: BALANCE DECEMBER 31 $ 1,073 $ 11,818 42,350 40,789 10 10 43.433 52.617 111,376 12_0.813 151.981 78.171 $ 306.79$ $ 241.601 TOWN OF WINGRAM WING8AM PUBLIC UTILITIES COMMI351011 - WATERWORKS STATEMENT OF OPERATIONS AND EQUITY ✓ YEAR ENDED DECEMBER 31, 1994 (WITH COMPARATIVE FIGURES FOR 1993) REVENUE: SALE OF WATER - RESIDENTIAL - NON-RESIDENTIAL INVESTMENT AND MISCELLANECbs INCOME CAPITAL EXPENDITURE CHARGED TO BENEFITING SUBDIVIDERS TRANSFERS FROM RESERVE FUND 1994 omnu'ssw TOWN OF WINGRAM HINGHAM PUBLIC OTILLTIES 00821SSION - WATERWORKS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1994 NOTE (1): ACCOUNTING POLICIES MS/. curel3==i1=4=1.6cagamarzeststsielrA (A) BASIS OP ACCOUNTING (1) REVENUE AND EXPENDITURES ARE REPORTED OH THE ACCRUAL BASIS OF ACCOUNTING WITH TH& EXCEPTION OP PRINCIPAL AND INTEREST CHARGES ON LONG -TERN LIABILITIES WHICH ARE CHARGED AGAINST OPERATIONS IN THE PERIODS IN WH/CH THEY ARE PAID. THE PRINCIPAL AND INTEREST CHARGES ARE'NOT ACCRUED FOR THE'PERIOD 98011 THE DATE QF THE LATEST INSTALLMENT PAYHENT TO THE END OF THE FINANCIAL YEAR. (1i) THE ACCRUAL BASIS OF ACCOUNTING RECOGNIZES REVENUES AE THEY BECOME AVAILABLE AND MEASURABLE; EXPENDITURES ARE RECOGNIZED AS THEY ARE INCURRED AND MEABURABLEAS A RESULT OF RECEIPT OF GOODS OR SERVICES AND THE CREATION OF ALEGAL OBLIGATION TO PAY. (181) CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS THE HISTORICAL COST AND ACCUMULATED DEPRECIATION OP FIXED ASSETS ARE NOT REPORTED FOR MUNICIPAL PURPOSES: INSTEAD ANY ',CAPITAL OUTLAY TO BE RECOVERED IN FUTURE YEARS^, WHICH REPRESENTS THE OUTSTANDING PRINCIPAL PORTION OF UNMATURED LANG -TERN LIABILITIES FOR MUNICIPAL EXPENDITURES IS REPORTED ON THE "BALANCE SHEET". THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS FINANCIAL STATEKENT) W AM FA do w..noCAO.A Town of Winginam Ftslblic Utilities Commission -Electric Financial Statements TO THE COMMISSIONERS, MEM8ER8 OF COUNCIL, INHABITANTS AND RATEPAYERS OP THE CORPORATION OF THE TOWN OF WINGRAM 31„5 LIN, di7eid CHARTERED ACCOUNTANT WINGHAM, ONTARIO . AUDITOR'S REPORT KM 4.X.0.0146 O„m m0 TEL 351.1t17 I HAVE AUDITED THE BALANCE SHEET OF THE TOWN OF WINGRAM PUBLIC m., UTILITIES COMMISSION - ELECTRIC AS AT DECEMBER 31, 1994, AND THE STATEMENT OF OPERATIONS AND EQUITY AND CHANGES IN FINANCIAL POSITION FOR THE YEAR THEN ENDED. THESE FINANCIAL STATEMENTS ARE THE RESPONSIBILITY OF THE COMMISSION'S MANAGEMENT. MY RESPONSIBILITY IS TO EXPRESS AN OPINION ON THESE FINANCIAL STATEMENTS BASED ON MY AUDIT. I CONDUCTED MY AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS. THOSE STANDARDS REQUIRE THAT I PLAN AND PERFORM AN AUDIT TO OBTAIN REASONABLE ASSURANCE WHETHER THE FINANCIAL STATEMENTS ARE FREE OF MATERIAL MISSTATEMENT. AN AUDIT INCLUDES EXAMINING, ON A TEST BASIS, EVIDENCE SUPPORTING, THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL STATEMENTS. AN AUDIT ALSO INCLUDES ASSESSING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES MADE BY MANAGEMENT, As WELL AS EVALUATING THE OVERALL FINANCIAL. STATEMENT PRESENTATION. IN MY OPINION, THOSE FINANCIAL STATEMENTS PRESENT FAIRLY IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF THE TOWN OF WINGRAM PUBLIC UTILITIES COMMISSION - ELECTRIC AS AT DECEMBER 31, 1994, AND THE RESULTS OF ITS OPERATIONS FOR THE YEAR THEN ENDED IN ACCORDANCE WITH THE ACCOUNTING PRINCIPLES DISCLOSED IN NOTE 1 TO THE FINANCIAL STATEMENTS. WINGRAM, ONTARIO NOG 2W0 APRIL 10, 1995 134, BARRY "4R- REID CHARTERED ACCOUNTANT TOWN OF WINGRAM PUBLIC UTILITIES COMMISSION - ELECTRIC BALANCE SHEET YEAR ENDED DECEMBER 31, 1994 (WITH COMPARATIVE FIGURES FOR 1993) ASSETS: CURRENT CASH ACCOUNTS RECEIVABLE UNBa1S.ED REVENUE INVENTORY OTHER. CURRENT ASSETS FIXED LAND 1993 BUILDINGS,' PLANT' AND EQUT'$MENT LESS; • ACCIEIULATED DEPRECIATION $ 148,542 $ 115,448 139,036 138,601 2,565 2,201 TOTAL REVENUE 290.143 EXPENDITURES: POWER AND PUMPING WATER TRANSMISSION AND DISTRIBUTION - MAINS - SERVICES - TRUCE AND TRACTOR ADMINISTRATION: - GENERAL ADMINISTRATION - BILLING AND DATA PROCESSING CAPITAL EXPENDITURES EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES EQUITY AT THE BEGINNING OF THE YEAR EQUITY AT THE END OF THE YEAR 0 150,000 406,250 OTHER OTHER NON-CURRENT ASSETS EQUITY IN ONTARIO HYDRO LIABILITIES: CURRENT ACCOUNTS PAYABLE AND ACCRUEDLIABILITIES CONSUMER DEPOSITS 56,419 85,444 OTHER CURRENT LIABILITIES 25,492 17,929 3,402 68,266 6,017 38.808 216.333 73,810 78.171 10,654 12,771 7,056 70,230 7,080 333,585 526.820 (120,570) 198.741 $ 197,.98I. $ 78.171 TOWN OF WINGRAM WINGHAM PUBLIC UTILITIES COMMISSION - WATERWORKS STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31, 1994 (WITH COMPARATIVE FIGURES FOR 1993) FUNDS WERE PROVIDED FROM: • OPERATIONS - NET INCOME (LOSS) FOR THE YEAR FUNDS WERE APPLIED TO EXCESS (DEFICIENCY) OF FUNDS PROVIDED OVER FUNDS APPLIED WOREING CAPITAL (DEFICIENCY), BEGINNING OF THE YEAR WORKING CAPITAL (DEFICIENCY), END OF THE YEAR REPRESENTED BY: CURRENT ASSETS: LESS: CURRENT LIABILITIE8: 1994 1993, $ 73,810 $ (120,570) 0 —4 73,810 (120,570) 78.171 198.741, $ 151.981 $ 78.171 $ 195,415 $ 130,788 43.433 2.617 $ 151.98E $ 70.171 TOWN OF WINGHA4 WINGRAM PUBLIC UTILITIES COMMI88ION - WATERWORKS ANALYSIS OF RESERVE FUNDS YEAR ENDED DECEMBER 31, 1994 (WITH COMPARATIVE FIGURES FOR 1993) RESERVE FUNDS: (BET ASIDE BY COUNCIL FOR CAPITAL IMPROVEMENT - BYLAW 1881) BALANCE AT THE BEGINNING ON THE YEAR 1,559 SCHEDULE I $ 110.813 $ 250.296 REVENUE: INTEREST EARNED 563 563 EXPENDITURES: TRANSFERS TO OPERATIONS 0 2.517 2-517 150.000 BALANCE AT THE END of THE YEAR 9 111.376,$ 110.813 TOWN OF WINOHAM WINGRAM PUBLIC UTILITIES COMMISSION - WATERWORKS ANALYSIS OP CAPITAL OPERATIONS YEAR ENDED DECEMBER 31, 1994 (WITH COMPARATIVE PIGURES FOR 1993) SOURCE OF FUNDS; CAPITAL CONTRIBUTIONS A2PROERIATIONS FROM CURRENT OPERATIONS EXPENDITURES: ENGINEERING STRUCTURES MACHINERY AND EQUIPMENT UNEXPENDED CAPITAL FINANOING AT THE BEGINNING OF THE YEAR UNE*PENDED CAPITAL. FINANCING AT THE END Or TSE YEAR • Iittz,.fli: SCHEDULE II 1991 0 $ 38.808 38.80$ 30,163 0.645 38.808 Q TBI' F 11111 333.585 33 .585 330,165 3.420 333,505 YEi.. ET . ',JEe. 8299 3993 $ 578,526 $ 487,607 77,836 97,239 406,936 437,648 117,284 112,403 7,422 9,922 1,188.904 1,144,819 21,165 2,429.114 ' 2,45�,279 1.145.410 1.304,869 21,165 2,446.039. 2',467,204', 1.186.490 1,280,714 2,796 1.250 1,357,732 2,257,583 $ 3,853,407 $ 4,684,366 $ 295,749 $ 17,000 49.978 362,727 LONG-TERM CONSUMER DEPOSITS 17.205 DEFERRED CREDITS: (Note le) CONTRIBUTED CAPITAL SUBJECT TO LESS: AMORTIZATION TO DATE EQUITY: EQUITY IN ONTARIO HYDRO UTILITY EQUITY SERVICE REVENUE: RESIDENTIAL GENERAL , STREET LIGHTING AMORTIZATION 299,845 17,000 40:352 357.197 16.910 O 96,211 O 21.452 O 74.759 1,357,732 2,257,583 2,115.737 1.977.917 3,473,469 4.235,500 $ 3.853.403 $ 4,684,366 TOWN OF WINGRAM PUBLIC UTILITIES COMMISSION - ELECTRIC STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1994 (WITH COMPARATIVE FIGURES FOR 1993) SERVICE REVENUE ADJUSTMENT (Note 2) COST OF POWER POWER PURCHASED - ONTARIO HYDRO GROSS MARGIN ON SERVICE REVENUE OTHER REVENUE: RENTAL INCOME INTEREST EARNED LATE PAYMENT CHARGES MISCELLANEOUS LUCIO;OW BILLING SALE OP MATERIAL EXPENSES: OPERATING AND MAINTENANCE BILLING AND COLLECTING GENERAL ADMINISTRATION DEPRECIATION LESS:AMORTIZATION CONTRIBUTED INTEREST LOSS ON DISPOSAL OP FIXED ASSETS ENVIRONMENT CAPITAL (Note le) NET INCOME 1994 $ 1,460,887 $ 1,265,816 26.999 2,753,702 (30.711) 2,722,990 2,373,216 350.774 8,024 21,836 11,886 8,166 6,680 5 191 61.783 56,326 65,536 133,199 80,605' 0 1,144 598 22.099 359.507 1521 1,461,762 1,174,055 26 635 2,662,452 10,328 2,672,780 2.313.594 359.186 $ 53.050 $ TOWN OF WINGHAH PUBLIC UTILITIES COMMI881ON - ELECTRIC STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED DECEMBER 31, 1994 (WITH COMPARATIVE FIGURES FOR 1993) CASH PROVIDED EY (USED IN) 1991 OPERATING ACTIVITIES EARNINGS BEFORE EXT'RAORD8HARY 1TE9I ADD CHARGES TO OPERATIONS NOT REQUIRING: CURRENT CASH PAYMENT DEPRECIATION LESS: A40811ZATION' OP CONTRIBUTED CAPITAL NET CHANGE IN NON-CASH WORKING CAPITAL BALANCES RELATED TO OPERATIONS HET CHANGE IN DEFERRED CHARGES AND OTHER NON -CC RENT BALANCE SHEET ITEMS CASH PROVIDED BY (USED a8) INVESTMENT ACTIVITIES NET ADDITIONS TO FIXED ASSETS CASH PROVIDED BY (USED IN) FINAt5CtNG ACTIVITIES CAPITAL CONTRIBUTIONS RECEIVED CASH pOS 4)11 t� giro NG THE YEAR CASH POSITION AT END or 8*1913 7,991 13,515 10,599 7,156, 5,876 8 430 53.567 TOWP. QP• WINGRAM: 9UBI4IC PTIxiTYEl 0014805,10* - ELE.CTR'1c 4TATEttENT' 01' UTIIATY EQUITX- Yale E6Ll*D 0XOTKMER 31. 1994 (WIr COHPARATIVE 5800905 FOR 1993) BALANCE Al 58019NING 01,"88 1 CAPITAL CONTRIBUTION PRIOR YEARS (Note 1e) CAPITAL CONTRIBUTION CURRENT YEAS (NOTE le) NET INCOME. FOR THE YEAR BALANCE AT END OF YEAR 57,827 46,595 120,727 102,496 (3,762; 872 0 $ 53,050 $ 107,961 598 161,609 48,264 (1.251) 208.622 (117 703) 324.755 87.998 1993 88,001 1994 1293 $ 1,977,917 $ 1,889,919 74,759 0- 10,011 0 53,050 87 990 $ 2.115_737 $_1.977017 TEE ACCO1SPANYING NOTES. ARE AN INTEGRAL PART OF THIS FINANCIAL ETATEiHQn) TOWN OF WINGRAM PUBLIC UTILITIES COMMI891011 - ELECTRIC NOTES TO TBE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1994 NOTE (1) : SIGNIFICANT ACCOUNTING POLICIES THE FINANCIAL STATEMENTS HAVE BEEN PREPARED IN ACCORDANCE WITH ACCOUNTING PRINCIPLES FOR MUNICIPAL. ELECTRICAL UTILITIES'IN ONTARIO AS REQUIRED BY ONTARIO HYDRO UNDER THE AUTHORITY OP SECTION 97 OP THE POWER CORPORATION ACT'AND REFLECT THE FOLLOWING POLICIES AS SET FORTH IN THE•MANUAL ^ACCOUNTING FOR MUNICIPAL ELECTRICAL UTILITIES IN ONTARIO". ALL PRINCIPLES EMPLOYED ARE IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. 102,496 (3.762) 186,735 24,172 5 2E5 216 13Z (77.607) (A) REVENUE RECOGNITION: SERVICE REVENUE IS RECORDED ON THE BASIS OP REGULAR METER READINGS AND ESTIMATES OF CUSTOMER USAGE SINCE THE LAST METER READING DATE TO THE END OF TRE YEAR. •(B) FIXED A5SET3•AN0.029 ECIATION: THE. STRAIGHT-LINE METHOD OF DEPRECIATION SHALL HE USED FOR ALL ASSETS. THE PREVIOUS SINKING -FUND METHOD OF DEPRECIATION FDR GENERAL PLANT ASSETS WAS CONVERTED TO THE STRAIGHT-LINE METHOD JANUARY 1, 1981. • IDENTIFIABLE FIXED -ASSETS (BUILDINGS AND SUBSTATIONS), SHALL BE KEPT ON THE BOORS UNTIL RETIRED OR SOLD. A GAIN OR A LOSS IS BEING RECORDED ONLY IN THE YEAR OF RETIREMENT OR SALE OF THE FIXED ASSET. INDIVIDUAL ASSETS RECORDED ON A GROUP BASIS (OVERHEAD AND UNDERGROUND DISTRIBUTION .SYSTEM, TRANSFORMERS AND METERS), SHALL BE KEPP'O11 THE BOORS UNTIL FULLY DEPRECIATED REGARDLESS OF ACTUAL SERVICE LIFE. (C) INVENTORY: UTILITIES WITH INVENTORY SYSTEMS SHALL CHARGE TO INVENTORY THE COST OF ALL METERS AND TRANSFORMERS PURCHASED FOR STOCK IN THE YEAR. (D) LONG-TERM DEBT: PRINCIPAL PAYMENTS OP DEBENTURES AND OTHER LONG-TERM DEBT SHALL BE TREATED AS A REDUCTION OF DEBT PAYABLE AND SHOWN AS AN APPROPRIATION OF NET INCOME. SINCE. PRINCIPAL PAYMENTS WILL NO LONGER BE TREATED AS EXPENSE, AN ACCRUAL OF PRINCIPAL WILL BE NO LONGER NECESSARY. DISCOUNT AND EXPENSES OR PREMIUM ON DEBENTURES INTEREST EXPENSE IN THE SAME PROPORTION OF PRINCIPAL RETIRED TO OUTSTANDING DEBT IN THE CURRENT FISCAL YEAR FOR EACH DEBENTURE ISSUE. TOWN OF WINGRAM PUBLIC OTILITIE3 CO174ISSI01 - ELECTRIC NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 1994 (E) CONTRIBUTED CAPITAL: ALL NONREFUNDABLE CAPITAL CONTRIBUTIONS RECEIVED AFTER JANUARY 1, 1980, SHALL BE ACCUMULATED IN "CONTRIBUTIONS IN AID OF CONSTRUCTION - AFTER JANUARY 1, 1980". ALL CAPITAL CONTRIBUTIONS ARE BEING CLEARLY IDENTIFIED WITH THE APPROPRIATE ACQUIRED FIXED ASSET - E.G. OVERHEAD DISTRIBUTION SYSTEM; UNDERGROUND DISTRIBUTION SYSTEM: TRANSFORMERS OR METERS. EFFECTIVE FOR THE YEAR ENDED DECEMBER 31, 1994, THE ACCOUNTING FOR CONTRIBUTED CAPITAL HAS CHANGED ACCORDING TO DIRECTIVE FROM ONTARIO HYDRO. CONTRIBUTED CAPITAL IS NOW TREATED AS A PERMANENT COMPONENT OF THE MUNICIPAL EQUITY. IN THE CURRENT YEAR THERE IS NO AMORTIZATION OF CONTRIBUTED CAPITAL. THIS CHANGE IS APPLIED ON -A PROSPECTIVE BASIS IN THE CURRENT YEAR WITH NO RETRO- ACTIVE ADJUSTMENT FOR PAST AMORTIZED CONTRIBUTED CAPITAL. NOTE (2) SERVICE REVENUE ADJUSTMENT ,CUSTOMER USAGE FROM THE LAST BILLING DATE TO THE YEAR END (UNBILLED REVENUE) 85 'INCLUDED IN REVENUE. 1994 1,921 UNBILLED REVENUE, BEGINNING OF YEAR $ 437,648' $' 427,320 UNBILLED REVENUE, END OF YEAR .. 406-,936 437.648 SERVICE REVENUE ADJUSTMENT $ L)0.1171)$ 10.328 THE ADJUSTING POWER BILL RECEIVED FROM ONTARIO HYDRO IS RECORDED IN THE YEAR TO WHICH IT REFERS. 0 1.200 90,919 139,645 487.607 347.961 6. 5755.526 $ 489.607 IN MERLE HAGGARD - MARTY STUART - IAN TYSON - Goods - Gary F)ellgaard - Ron Hynes - Patricia Conroy - Wayne Rostad - August 10-13, Havelock' Country Jamboree. Camping 1-800-539-3353. Tickets. For flyer send. self-addressed stamped envelope to Box 100, Havelock, Ontario KOL 1ZO, c/a Jack Blakely. GOLDEN HORSESHOE STEAM SHOW: Gas Era Village, antique cars, sawmill, threshing, parades, fiddling, crafts; featur- ing'pre-1960's lawn & garden and chain - saws display. Caledonia, August 5-6-7. 905-765-4891. 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