NSDS 2005 – 2010 Implementing a Implementing a

Collaborative StrategyCollaborative Strategy

Labour

Dr Florus P. J. Prinsloo

Acting Senior Executive Manager

SETA Coordination

Department of Labour

Department of Labour

DG Dr V. Mkosana

DDG-CSMasodi Xaba

A-DDG-ESDS/HRDSam Morotoba

Finance, ICT, HR,Procurement, Security

Communications

A-SEM SETA CDoc Prinsloo

SEM NSFJeff du Preez

EM NSA SecEM SMU

DDG-LMP/LPLes Kettledas

SEM LMPBotshabelo Maja

A-SEM - LPThembankosi Mkalipi

DDG-SDShakes Mhkonto

10 Branches132 Labour Centres

A-SEM – OHSJakes Malatse

Labour

Minister HonMinister Hon M Mdladlana MPM Mdladlana MP

SETA Coordination

A-SEMDoc

EM SETA SupportLiz

EM INDLELAMosa

Manager : ETQA

Manager : Learnerships& Skills Programmes

Manager : ESDAs

Manager : NationalStandard

Manager : Levies & Grants

Manager : Assessments

Manager : Training

Manager: Admin

A-EM SETA PM Benni

Manager : SETAMonitoring & Reporting

5 x ManagersSector Liaison

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SETA Best Practice Support

EM – Liz Thobejane- S&C Database, NQF

M-ETQA-Tsholofelo: ISOE, ABET

M-L & SP-Liz: OFO, SSP, LearningProgramme Framework, Apprenticeships

M-ESDAs-Isaac: ESDLE Pilot

M-NS-Adri Solomon: National Standard

M-L& G–Linda: Treasury, SARS, AG

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SETA Performance Management

A-EM – Benedict Mogadime-SLA, Scorecard

M-M&E- Lulu: NSDS QMR, NSDS ES

M-C1-Valaine: ETDPSETA, ESETA, ISETTSETA,FASSET,W&RSETA

M-C2-Mlu: BANKSETA, INSETA, SERVICES, TETA, THETA

M-C3-Hannes: CTFLSETA, CHIETA, CETA, MQA, MERSETA

M-C4-Dolly: AgriSETA, FIETA, FOOBEVSETA, MAPPPSETA

M-C5-Lindiwe: PSETA,SASSETA,LGSETA,HWSETA

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National Skills Fund

SEM – Jeff Du Preez

EM-SS- Frans: National guide, Industry Support, Social Development, Informal Sector Support, NVC, SAQA

EM-SS-Eubert: ABET, Critical Skills Support,Strategic Projects

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National Skills Authority

Chairperson- Dr Khotso MkheleEXCO: SC ChairS+Provider+ES

EO-Sam MorotobaA-EM Secretariat– Malesela Mokoele

Sub-Comm: Governance, CapacityBuilding, Research (Labour: Zola)

Sub-Comm: Education, Training &Development (Government: Jeff)

Sub-Comm: NSDS SETAs (Business: Vusi)

Sub-Comm: NSDS NSF & Provinces(Community: Kulu)

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Overview of Skills Framework• Skills Development Act 1998, Amended 2003

• Skills Development Levies Act 1999

• NSDS 2005 - 2010 Document

– Establishes National Objectives & Targets

• Grant Regulations – Gazette 27801 + Amendment 2006

– Establishes Funding Rules for SETAs

• Service Level Agreement Regulations– Gazette 27801

– Governs relations between DoL and SETAs in meeting Objectives &

Targets

• NSF Funding Windows

– Establishes guidelines, criteria and procedures for NSF funded

projects and initiatives.

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Funding Framework 2005 - 2010

21.916.8

5.1

0

5

10

15

20

25R Billion

NSDS

SETAs

NSF

Labour

2520

5

Grant Regulations Framework

NSF/SARS20%

SETA Admin10%

Mandatory Grants

50%

Discretionary Grants

20%

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No NSF Funding Window NSDS Indicators/Mandates

1 Social Development Initiatives (Incl EPWP)

Indicator 3.1 (37%)

2 Adult Basic Education & Training (ABET)

Indicator 3.3 (12%)

3 Critical Skills Support Indicators 1.2 & 4.1(3%)

4 Provisioning Support Indicators 2.4 & 5.3 (SDA Amendment Act) (3,4%)

5 Industry Support Programme Indicator 2.3 & Job Summit Agreement (5%)

6 Informal Sector Support Indicators 3.2; 4.3, 5.2(5%)

7 Constituency Capacity Building & Advocacy

Indicator 5.4 (3%)

8 Special Projects NSDS Principles (4%)

9 Discretionary projects & Innovation SDA (5%)

NSF FUNDING WINDOWSLabour

Str

ateg

ic P

roje

cts

1.1 Sector skills research and planning1.1 Sector skills research and planning

• Discretionary Regulation 7(1)(a)

• 23 SSPs evaluated, S&C List compiled, 23 SSPs evaluated, S&C List compiled,

agreed with Skills Focus Group, DHA, agreed with Skills Focus Group, DHA,

Economic Clusters.Economic Clusters.

• Organising Framework for Occupations Organising Framework for Occupations

developed & being implemented. developed & being implemented.

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NSDS II Objective 1 = What Skills?

1.2 Critical skills information dissemination1.2 Critical skills information dissemination

• Discretionary Regulation 7(1)(b) + NSF W3 Critical Skills Support

• Target = 7,183 SDFs & Sector SpecialistsTarget = 7,183 SDFs & Sector Specialists

• Actual = 8,082 SDFs & Sector SpecialistsActual = 8,082 SDFs & Sector Specialists

• Four sector guides, others on the wayFour sector guides, others on the way

• National guide list completedNational guide list completed

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NSDS II Objective 1 = What Skills?

Under-Employed and

New Entrants

EmployersDoL

PO and LC

Receive Career Guidance

Register Work-Seekers

RegisterOccupational

PlacementOpportunities

Register Employers

Register Occupational Interventions

Register Occupational Placements

Accredit OccupationalProgrammes

AccreditOccupational

Providers

Register ScarceAnd Critical

Skills

SETAs

NSDSObjective 1

NSDSObjective 2

NSDSObjective

3 & 4

NSDSObjective 5

Active Labour System(Employment & Skills

Development Services)ESDS

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2.1 Large/Medium Firms Mandatory Grants2.1 Large/Medium Firms Mandatory Grants

• Mandatory Regulation 6 and 10.

• Target = 3,144 large & 4,709 medium firmsTarget = 3,144 large & 4,709 medium firms

• Actual = 4,866 large & 5,424 medium firmsActual = 4,866 large & 5,424 medium firms

• R 2,3 billion transferred to SETAsR 2,3 billion transferred to SETAs

• R 2,2 billion claimed = 92% successesR 2,2 billion claimed = 92% successes

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NSDS II Objective 2 = Workplace Skills?

2.2 2.2 Small Levy Paying Firms Mandatory GrantsSmall Levy Paying Firms Mandatory Grants

• Mandatory Regulation 6 and 10.

• Target = 27106 SMEs supportedTarget = 27106 SMEs supported

• Actual = 28,532 SME supportedActual = 28,532 SME supported

• Very small number SME levy paying firmsVery small number SME levy paying firms

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NSDS II Objective 2 = Workplace Skills?

2.3 Government Departments 2.3 Government Departments

• SD Act Section 30(a)(ii).

• PSETA coordination + National Treasury.

• PSETA Re-established, Re-ListedPSETA Re-established, Re-Listed

• Target = 1% of Personnel Cost spent on trainingTarget = 1% of Personnel Cost spent on training

• National = 1,87% of Personnel CostsNational = 1,87% of Personnel Costs

• Provincial = No Statistics AvailableProvincial = No Statistics Available

• 1% of Personnel Cost = R 2,7 Billion1% of Personnel Cost = R 2,7 Billion

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NSDS II Objective 2 = Workplace Skills?

2.4 National Standard~People Development. 2.4 National Standard~People Development.

• SD Act Section 30B & Discretionary Regulation 7(1)(n) & NSF W4 Provisioning Support

• Research, policy and advise to MoL

• National Standard being developed with National Standard being developed with South African Bureau of Standards (SABS)South African Bureau of Standards (SABS)

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NSDS II Objective 2 = Workplace Skills?

2.5 Small BEE Firms & BEE Co-ops 2.5 Small BEE Firms & BEE Co-ops

• Discretionary Regulation 7(1)(n)

• Sector baseline research

• Small BEE Firm & BEE Co-ops Baseline Small BEE Firm & BEE Co-ops Baseline

Database and Register Developed by Database and Register Developed by

SETAs during 2005 - 2006SETAs during 2005 - 2006

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NSDS II Objective 2 = Workplace Skills?

2.6 Industry Support Programme2.6 Industry Support Programme

• NSF W5 – Industry Support Programme

• Investments or expansions, DTI linked

• 168 SMEs applied, 93 approved168 SMEs applied, 93 approved

• 1,178 workers trained1,178 workers trained

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NSDS II Objective 2 = Workplace Skills?

NOT APPLICABLE TO SETASNOT APPLICABLE TO SETAS

2.7 ABET for Workers 2.7 ABET for Workers

• Discretionary Regulation 7(1)9c) and optional Mandatory Regulation 6 and 10.

• Target = 41, 588 workers entered ABET Level 4 Target = 41, 588 workers entered ABET Level 4 ProgrammesProgrammes

• Actual = 17,590 workers entered ABET level 4 Actual = 17,590 workers entered ABET level 4 programmesprogrammes

• Serious challenge being addressed through best Serious challenge being addressed through best practice workplace model with DoEpractice workplace model with DoE

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NSDS II Objective 2 = Workplace Skills?

2.8 Workers in Programmes2.8 Workers in Programmes

• Discretionary Regulation 7(1)(d)

• Target = 29,297 workers enteredTarget = 29,297 workers entered

• Actual = 79,198 workers enteredActual = 79,198 workers entered

• Learnerships, apprenticeships, bursaries, Learnerships, apprenticeships, bursaries, internships and skills programmes linked internships and skills programmes linked to registered unit standardsto registered unit standards

• Linked to scarce and critical skillsLinked to scarce and critical skills

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NSDS II Objective 2 = Workplace Skills?

3.1 Social Development & EPWP 3.1 Social Development & EPWP

• NSF W1 Social Development Initiatives

• DoL Provinces (LCs), 25% accredited training, placement categories,

• 90,911 unemployed trained with 54% 90,911 unemployed trained with 54% placement rate placement rate

• Includes EPWPIncludes EPWP

• Accreditation of programmes is a major Accreditation of programmes is a major focusfocus

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NSDS II Objective 3 = Employable skills?

NOT APPLICABLE TO SETASNOT APPLICABLE TO SETAS

3.2 NLPs, NGOs, CBOs, Community Co-ops 3.2 NLPs, NGOs, CBOs, Community Co-ops

• Discretionary Regulation 7(1)(n) and NSF W6

– Informal Sector Support.

• Target = 466 organizations supported Target = 466 organizations supported

• Actual = 829 organizations supportedActual = 829 organizations supported

• Definitions, locations and sectoral Definitions, locations and sectoral

determination are challengesdetermination are challenges

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NSDS II Objective 3 = Employable skills?

3.3 ABET for Unemployed3.3 ABET for Unemployed

• NSF W2 – ABET

• NSF roll out of 20,000 unemployed persons NSF roll out of 20,000 unemployed persons from July 2006 onwards.from July 2006 onwards.

Labour

NSDS II Objective 3 = Employable Skills?

NOT APPLICABLE TO SETASNOT APPLICABLE TO SETAS

4.1 Unemployed in Programmes4.1 Unemployed in Programmes• Discretionary Regulation 7(1)(d) and NSF W3 –

Critical Skills Support

• Target = 29,568 unemployed enteredTarget = 29,568 unemployed entered

• Actual = 37,227 unemployed enteredActual = 37,227 unemployed entered

• Learnerships, apprenticeships, bursaries, Learnerships, apprenticeships, bursaries, internships and skills programmes linked to internships and skills programmes linked to registered unit standardsregistered unit standards

• Linked to scarce and critical skillsLinked to scarce and critical skills

• Key Issue is Impact - PlacementKey Issue is Impact - Placement

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NSDS II Objective 4 = Employable Skills?

4.2 Work Experience 4.2 Work Experience

• Discretionary Regulation 7(1)(e)

• Target = 8,301 learners in workplacesTarget = 8,301 learners in workplaces

• Actual = 3,693 learners in workplacesActual = 3,693 learners in workplaces

• Linked to critical skillsLinked to critical skills

• Key is FET / HET agreements with Key is FET / HET agreements with workplaces.workplaces.

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NSDS II Objective 4 = Employable Skills?

4.3 New Venture Creation – Learners 4.3 New Venture Creation – Learners

• Discretionary Regulation 7(1)(f) and NSF W6

– Informal Sector Support.

• Target = 1,669 young people contractedTarget = 1,669 young people contracted

• Actual = 1,731 young people contractedActual = 1,731 young people contracted

• Challenge is sustainability through Challenge is sustainability through

business mentoring supportbusiness mentoring support

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NSDS II Objective 4 = Employable Skills?

5.1 Institute “S” or “O” Excellence 5.1 Institute “S” or “O” Excellence

• Discretionary Regulation 7(1)(g)

• Target = 55 ISOEsTarget = 55 ISOEs

• Actual = 103 ISOEsActual = 103 ISOEs

• Challenge is completion of framework and Challenge is completion of framework and development of FETs as ISOEsdevelopment of FETs as ISOEs

Labour

NSDS II Objective 5 = Provisioning Skills?

5.2 New Venture Creation – Providers5.2 New Venture Creation – Providers

• Discretionary Regulation 7(1)(h) and NSF W6

– Informal Sector Support.

• Target = 33 providersTarget = 33 providers

• Actual = 58 ProvidersActual = 58 Providers

Labour

NSDS II Objective 5 = Provisioning Skills?

5.3 ETQA / SAQA Services5.3 ETQA / SAQA Services

• Discretionary Regulation 7(1)(i) and NSF W4

– Provisioning Support

• Policy development in progressPolicy development in progress

• Linked to Ministerial Process of NQF Linked to Ministerial Process of NQF ReviewReview

Labour

NSDS II Objective 5 = Provisioning Skills?

5.4 Stakeholder Capacity & Commitment5.4 Stakeholder Capacity & Commitment

• Discretionary Regulation 7(1)(j) and NSF W7 – Constituency capacity building & advocacy

• NSA constituency based

• SETA Board Member Capacity Building; SETA Board Member Capacity Building; NSA Policy in progressNSA Policy in progress

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NSDS II Objective 5 = Provisioning Skills?

NOT APPLICABLE TO SETASNOT APPLICABLE TO SETAS

SETA PERFORMANCE ASSESSMENT SYSTEMOverview

A comprehensive and detailed performance assessment system has been developed and is in the process of being used to assess the performance of the SETAs for the 2005-2006 period. The total system is a fully integrated model that will eventually measure SETAS across three dimensions:

• The Outputs of SETA activities (e.g. number of learners) against annual negotiated targets specified in annual service level agreements.

• The Outcomes or Impact of SETA activities (e.g. number of learners placed in employment) over the medium to long term verified through research process conducted as part of he Departments Research, Monitoring and Evaluation partner

• The accuracy and currency of all SETA data verified on site by the relevant Department personnel through regular and planned quality assurance processes.

SETA PERFORMANCE ASSESSMENT SYSTEMDimensions

• Skills Development Act as amended – Mandate

• National Skills Development Strategy – National Targets

• Service Level Agreement Regulations – Framework for SLA

• Service Level Agreement & Schedules – Operationalise SLA

• Performance Assessment Scorecard – Measurement Methodology

SETA PERFORMANCE ASSESSMENT SYSTEMElements

Performance Assessment scorecard Guideline – detailed explanatory document that strives to remove all ambiguity from the NSDS and allows SETAs to achieve effective results in an effective manner. The guideline also serves as a capacity building and development document for all SETA Stakeholders.

SETA PERFORMANCE ASSESSMENT SYSTEMImplementation

SETA Performance Assessment Scope

• NSA Endorsement KRAs– NSDS 2005 - 2010 Success Indicators– NSDS 2005 - 2010 Equity Principles– NSDS 2005 -2010 Governance– NSDS 2005 - 2010 Funds Management– NSDS 2005 - 2010 Provincial Linkages– Non NSDS 2005 – 2010 Indicators

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SCORECARD CONTENTS 2005 - 2006SCORECARD CONTENTS 2005 - 2006– NSDS 2005 - 2010 Success Indicators

• Total of 16; 9 this year; all next year– NSDS 2005 - 2010 Equity Principles

• Total of 5 Indicators, All Discretionary Funded– NSDS 2005 -2010 Governance

• Based on Official Audits – NSDS 2005 - 2010 Funds Management

• Grant and Admin Management

– NSDS 2005 - 2010 Provincial Linkages• Reporting only this year

– Non NSDS 2005 – 2010 Indicators• None, but can make a come back

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SCORECARD SUMMARY SCORECARD SUMMARY

– Indicator / KRA WeightingIndicator / KRA Weighting

• Fixed 20% for Funds, Other Sector SpecificFixed 20% for Funds, Other Sector Specific

– Data Verification MeasurementData Verification Measurement

• Go : No-GoGo : No-Go

– Impact Assessment MeasurementImpact Assessment Measurement

• Not for 2005 -2007 but 2008 onwardsNot for 2005 -2007 but 2008 onwards

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Development

– Lessons learnt from 2003-2005 Scorecards

• Retain output measurements but improve on

data verification and impact assessment

– Contemporary theory

• Systems Theory & Balanced Scorecard

– Stakeholder input

• SETAs

• Broad DoL Directorates

• NSA

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INPUTSINPUTS OUTPUTSOUTPUTSACTIVITIESACTIVITIES OUTCOMESOUTCOMESTIME

CONSTRAINT

SUSTAINEDSUSTAINEDIMPACTIMPACT

ECONOMIC

GROWTH

FIDUCIARYFIDUCIARYPERSPECTIVEPERSPECTIVE

CUSTOMERCUSTOMERPERSPECTIVEPERSPECTIVE

INTERNAL INTERNAL PERSPECTIVEPERSPECTIVE

LEARNINGLEARNING& GROWTH& GROWTH

PERSPECTIVEPERSPECTIVE

The MISSIONThe MISSION

QuantitativeQuantitativeScore 1- 5Score 1- 5

vs SLA Targetsvs SLA Targets

DataDataVerificationVerification

at SETAat SETA

ImpactImpactAssessmentAssessment

with LMP-RPPwith LMP-RPP

QuantitativeQuantitativeScore 1- 5Score 1- 5

vs SLA Targetsvs SLA Targets

DataDataVerificationVerification

at SETAat SETA

ImpactImpactAssessmentAssessment

with LMP-RPPwith LMP-RPP

OutputsOutputs

InputsInputs& Activities& Activities

OutcomesOutcomesImpactImpact

QuantitativeQuantitativeScore 1- 5Score 1- 5

vs SLA Targetsvs SLA Targets

DataDataVerificationVerification

at SETAat SETA

ImpactImpactAssessmentAssessment

with LMP-RPPwith LMP-RPP

OutputsOutputs

InputsInputs& Activities& Activities

Short TermShort TermFiduciary Fiduciary

& Customer& CustomerPerspectivesPerspectives

Internal + Internal + Learning &Learning &

GrowthGrowthPerspectivesPerspectives

OutcomesOutcomesImpactImpact

Long TermLong TermFiduciary Fiduciary

& Customer& CustomerPerspectivesPerspectives

31 Mar 30 Sep 31 Mar

Previous Year Annual Report & Scorecard

30 Jul 30 Nov

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31 Mar 30 Sep 31 Mar

Previous Year Annual Report & Scorecard

Next Year SLA

30 Jul 30 Nov

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31 Mar 30 Sep 31 Mar

Previous Year Annual Report & Scorecard

Next Year SLA

30 Jul 30 NovConferenceConference

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31 Mar 30 Sep 31 Mar

Previous Year Annual Report & Scorecard

Next Year SLA

30 Jul 30 Nov

SETA Business Processes

ConferenceConference

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31 Mar 30 Sep 31 Mar

Previous Year Annual Report & Scorecard

Next Year SLA

30 Jul 30 Nov

SETA Business Processes

Never ending annual cycle of sector skills planning and forecasting (OFO)

ConferenceConference

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0 – 20% 21 – 40% 41 – 60% 61 – 80% 81 – 100%

1 2 3 4 5

Poor Performance

Under Performance

Average Performance

Over Performance

Excellent Performance

2004 – 2005 Measurement Scale

2005 – 2006 Measurement Scale

Percentage Score 0% - 60% 61% - 80% 81% - 100% 101% - 120% >120%

Rating 1 2 3 4 5

Performance Description

Performance is Poor

Performance is below

Requirements

Performance meets Requirements

Performance is above

Requirements

Performance is Excellent

Provisional Overall SETA Performance ResultsProvisional Overall SETA Performance Results

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

NSDS Equity Governance Funds Overall

2003 - 2004 2004 - 2005 2005 - 2006

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SETA Reserves After Commitments

ETDP SETA 172 16

LGSETA 151 13

ESETA 75 11

SASSETA 75 11

HWSETA 80 9

MAPPP SETA

838

ISETTSETA 120 7

AGRISETA 56 6

MERSETA 242 6

CHIETA 58 4

TETA 85 4

FIETA 12 3

THETA 22 3

W&R SETA

582

FOODBEV 12 1

BANKSETA

131

SERVICES 18 0

INSETA 4 0

MQA 3 0

CTFL SETA

00

PSETA 0 0

FASSET -1 0

CETA -95 -6

TOTALS 1,243 4

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Thank you for your attention.