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Further Education Funding
Brief
May 2002
INTRODUCTION
Scotland's Further Education colleges are funded
mainly from the Scottish Further Education Funding Council, which
receives
finance from the Scottish Executive Department of
Enterprise and Lifelong Learning, as part of the Scottish budget.
BACKGROUND
Prior to 1993, Scottish FE Colleges were part of
Local Authority Education Departments and were funded from Council
funds.
The Further and Higher Education (Scotland) Act
1992 provided for Scotland's colleges to become "Incorporated
Bodies". This legislation meant that individual Boards of Management
took on responsibility for the strategic and financial management
of their college. For example, since 1996 Colleges have all negotiated
their own terms and conditions.
The Act provided for a corporate body, the Scottish
Further Education Funding Council, which came into
being in July 1999.
Also created was the Scottish Higher Education
Funding Council, which is a separate body, despite having
close administrative links.
Funding for the SFEFC is allocated from the Scottish
Executive's budget each year and is disbursed to individual colleges
on a formula based on student activity. Since Incorporation there
have been changes in emphasis to the funding methodology from
"indiscriminate competition" to "managed growth". It is claimed
that this greater transparency in funding has given colleges stability
and enabled them to plan ahead.
SCOTTISH FURTHER EDUCATION FUNDING COUNCIL
The SFEFC took up its responsibilities on 1 July
1999 at a time when further education has been placed in the forefront
of delivery for the Scottish Executive's plans for a learning
society.
Its functions include:
- responsibility for funding Scotland's further education
colleges;
- monitoring the financial health of the sector;
- promoting innovation;
- offering guidance to colleges; and
- advising the First Minister on funding matters and efficient
provision of further education in Scotland.
FUNDING FROM SFEFC
Recurrent Grant-in-aid Allocation
This is distributed to the 43 incorporated colleges,
on the basis of their measured share of student activity. Student
Units of Measurement (SUMS) equal approximately 40 hours of study,
weighted to reflect the different costs associated with running
different courses. This funding is calculated using the SUMS for
the year 2 years prior to the current year.
Similar funding is also given to Orkney and Shetlands
Councils for the two non-incorporated colleges there and to the
non-incorporated colleges of Sabhal Mor Ostaig, the Gaelic college
on Skye and Newbattle Abbey College in Dalkeith
Estates & Capital Funding
This is a grant given to each college for routine
maintenance, health and safety improvements, etc., plus colleges
can bid for grants for major upgrading.
National Grid for Learning – ICT
The Comprehensive Spending Review provided an additional
£29m over the three years 1999-2002 for development of the FE
part of the National Grid for Learning. This
Is being used to implement the ICTstrategy.
Strategic Funding
A certain amount is set aside each year for
structural initiatives or special projects. The
Scottish Colleges Biotechnology Consortium involving Falkirk,
Fife, James Watt and Bell Colleges is one example.
Other SFEFCFunding
In addition to the above, there is an amount of
bursary funding for distribution to students and funding towards
students' childcare costs. The Beattie Report "Implementing
Inclusiveness Realising Potential" aimed at improving access
to students with special needs, and the SFEFC receives specific
funding to take forward this agenda.
CURRENT SPENDING LEVELS
Following the Scottish Executive Budget process
in the early part of each year, a funding announcement is made
in April. This sets out the funding for the recurrent grant ,
and the other funds, and details the allocation to each college
for the forthcoming year.
Overall SFEFC Funding for the Academic Year 2001-02
is set out below and the individual amount allocated to each college
is attached as Appendix 1
|
Programme
|
2000/01
£M
|
2001/02
£M
|
|
Recurrent grant-in-aid
|
290
|
315
|
|
Bursaries
|
41
|
47
|
|
Capital
|
15
|
21
|
|
ICT
|
13
|
15
|
|
Strategic
|
3
|
3
|
|
Childcare
|
3
|
3
|
|
Quality Improvement
|
1
|
5
|
|
Beattie
|
0
|
1
|
|
Other
|
2
|
4
|
|
Total
|
368
|
414
|
OTHER SOURCES OF FUNDING
LECs
Colleges can also undertake LEC sponsored activity
and engage in commercial activities to provide an additional source
of income. These activities have to cover their full costs and
are not subsidised by SFEFC funding. They can include consultancy
services and training for certain client groups such as prison
staff and nurse education. Colleges may also receive income from
sales of products such as publications and by-products from tuition
activities.
However, as charities, colleges must use any income
and resources within the framework of charity tax legislation.
European Funding 2000-2006
Historically, FE colleges have received a substantial
amount of European Union (EU) funding, which has been used to
support a wide range of activities. Large capital new build and
ICT projects have been funded from the European Regional Development
Fund (ERDF) and European Social Fund (ESF) funds the training
of unemployed young people and adults.
PROBLEMS
As part of its responsibilities for monitoring the
financial health of colleges, the SFEFC has recently announced
proposals to assist 9 colleges which have had serious financial
or management problems. £7m has been
allocated for the colleges in question, who will
have to produce a "recovery plan" for their future sustainability.
The Council will have to apply tighter financial controls to the
9 colleges, which include Clydebank with £2,565,000 and Inverness
with £1,084,000
LINKS
www.sfefc.ac.uk
www.sfefc.ac.uk/content/library/circs/circs01/fe1501/
MainGrantLetter.html
www.sfefc.ac.uk/content/library/media/2002/prfe0101/htm
www.sfeu.ac.uk
www.sfeu.ac.uk/fe/About%20FE/section1.html
www.hmso.gov.uk/acts/acts1992/Uk
pga_19920037_en_1.htm
www.scotland.gov.uk/library3/lifelong/feis-01.asp
www.ascol.org.uk/european/background.asp
Appendix 1
SCOTTISH FURTHER EDUCATION COLLEGES
COMPARISON OF 2001-02 RECURRENT ALLOCATIONS WITH 2000-01
|
College name
|
2000-01
£
|
2001-02
£
|
Change
%
|
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Aberdeen College
|
17,634,500
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19,144,800
|
8.6%
|
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Angus College
|
4,989,300
|
5,411,500
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9.8%
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Anniesland College
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5,548,400
|
6,305,800
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9.6%
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Ayr College
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6,425,600
|
7,318,200
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12.3%
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Banff & Buchan College of Further
Education
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4,908,500
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5,343,200
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8.9%
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The Barony College
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1,385,400
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1,573,900
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11.9%
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Borders College
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4,694,500
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4,714,700
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0.7%
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Cardonald College
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8,628,200
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9,547,800
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9.7%
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Central College of Commerce
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4,930,100
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5,180,800
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1.3%
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Clackmannan College of Further Education
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2,873,500
|
3,070,500
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8.5%
|
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Clydebank College
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7,135,300
|
7,480,200
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0.8%
|
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Coatbridge College
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4,397,400
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4,865,600
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8.0%
|
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Cumbernauld College
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3,592,100
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3,996,900
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4.2%
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Dumfries and Galloway College
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5,268,700
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5,383,400
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3.5%
|
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Dundee College
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11,644,100
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13,759,000
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14.5%
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Edinburgh's Telford College
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14,455,000
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15,264,200
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3.6%
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Elmwood College
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3,781,300
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4,062,100
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7.9%
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Falkirk College of Further and Higher
Education
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9,782,400
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10,773,500
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7.7%
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Fife College of Further & Higher
Education
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7,869,100
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8,591,700
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10.4%
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Glasgow College of Building and Printing
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7,152,100
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7,696,000
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4.7%
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Glasgow College of Food Technology
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3,431,400
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3,822,500
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12.5%
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Glasgow College of Nautical Studies
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4,304,700
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4,513,600
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5.4%
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Glenrothes College
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5,921,900
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6,319,700
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6.6%
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Inverness College
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7,040,700
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6,026,500
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6.5%
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James Watt College
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15,191,300
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19,741,700
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13.7%
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Jewel and Esk Valley College
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7,932,100
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8,657,800
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7.0%
|
|
John Wheatley College
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4,399,100
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5,157,200
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11.5%
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Kilmarnock College
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6,462,100
|
6,837,800
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3.4%
|
|
Langside College
|
7,200,500
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7,176,000
|
-3.4%
|
|
Lauder College
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6,480,500
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6,879,200
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7.6%
|
|
Lews Castle College
|
2,088,900
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1,640,900
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-5.1%
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Moray College
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5,203,600
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3,941,100
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0.1%
|
|
Motherwell College
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9,373,300
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10,593,600
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14.4%
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|
North Glasgow College
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5,628,600
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6,246,400
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12.6%
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|
Oatridge Agricultural College
|
1,858,700
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1,928,800
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2.9%
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|
Perth College
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6,079,000
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4,796,800
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5.7%
|
|
Reid Kerr College
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9,322,200
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10,393,200
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12.5%
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|
South Lanarkshire College
|
4,378,600
|
4,594,400
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6.2%
|
|
Stevenson College
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11,846,000
|
12,243,200
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-3.2%
|
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Stow College
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5,700,100
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5,959,100
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2.8%
|
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The North Highland College
|
3,010,600
|
2,714,500
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5.7%
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West Lothian College
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4,521,700
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5,954,500
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6.1%
|
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Orkney College
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1,137,500
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1,065,700
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7.0%
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Shetland College of Further Education
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1,366,400
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1,058,800
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-15.3%
|
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Bell College
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6,425,900
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6,843,600
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6.5%
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Newbattle College
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277,400
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295,400
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6.5%
|
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Sabhal Mor Ostaig
|
693,600
|
492,500
|
6.5%
|
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TOTALS
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284,371,900
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305,378,300
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6.9%
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