CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Financial Statements
September 30, 2009 and 2008
(With Independent Auditors’ Report Thereon)

KPMG LLPPO Box 4150
Honolulu, HI 96812-4150

Independent Auditors’ Report

The Board of Directors
California Association for Research in Astronomy:
We have audited the accompanying statements of financial position of California Association for Researchin Astronomy (CARA) as of September 30, 2009 and 2008, and the related statements of activities andcash flows for the years then ended. These financial statements are the responsibility of CARA’s
management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States ofAmerica. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes consideration ofinternal control over financial reporting as a basis for designing audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of CARA’s internal
control over financial reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonablebasis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of California Association for Research in Astronomy as of September 30, 2009 and2008, and the changes in its net assets and its cash flows for the years then ended in conformity with
U.S. generally accepted accounting principles.

February 11, 2010

KPMG LLP, a U.S. limited liability partnership, is the U.S.
member firm of KPMG International, a Swiss cooperative.

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Statements of Financial Position
September 30, 2009 and 2008
AssetsCurrent assets:
Cash and cash equivalents
Receivables, net:
Jet Propulsion Laboratory (note 4)
National Science Foundation (note 6)
National Aeronautics and Space Administration (note 3)
Center for Adaptive Optics
University of California
Department of Homeland Security – FEMA (note 7)
Contributions receivable, net (note 8)
Other
Prepaid expenses

$

2008

12,565,090

13,057,437

444,840
49,38028,725
11,777—    —    
50,00047,192
68,327

Total current assets

55,21642,242
15,353
26,97518,982
12,823
278,675
20,033
105,288

13,265,331

13,633,024

87,947,663

84,058,286$

101,212,994

97,691,310$

249,117500,980
2,527,149

341,054
382,455
1,997,441

7,475,580
1,232,607—    

7,167,235
1,296,969
12,64011,985,433

11,197,794

87,964,242
68,8981,194,421

84,074,935
229,832
2,188,749

89,227,561

86,493,516

101,212,994

97,691,310

Property and equipment, at cost less accumulated depreciation(notes 9 and 12)
Total assets

2009

Liabilities and Net Assets
Current liabilities:
Accounts payable and accrued expenses:
University of California
California Institute of Technology
Other
Advances (note 2):
University of California:
Observatory operations
Association of Universities for Research in Astronomy (note 5)
Other
Total current liabilities
Net assets:
Unrestricted:
UndesignatedBoard designated (note 13)
Temporarily restricted (note 14)
Total net assets
Commitments (notes 12 and 15)
Total liabilities and net assets$

See accompanying notes to financial statements.
2

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Statements of Activities
Years ended September 30, 2009 and 2008
2009

2008

172,066

177,646

11,886,872—    

12,422,921
119,661

3,183,653
2,616,458
2,133,272
692,982
41,887—    —    
13,6403,083,669
1,815,321
2,147,950
633,526
124,888
100,212(2,219)35,250293,739

394,869

1,223,562

2,763,492

22,258,131

23,817,186

15,410,625
262,2102,377,645
479,278

17,522,167
230,405
3,323,622
385,716

Total expenditures

18,529,758

21,461,910

Change in unrestricted net assets

3,728,373

2,355,276

189,551
39,683(1,223,562)

31,435
114,838(2,763,492)

Change in temporarily restricted net assets(994,328)(2,617,219)

Change in net assets

2,734,045(261,943)

86,493,516

86,755,459

89,227,561

86,493,516

Changes in unrestricted net assets (notes 1 and 2):
Unrestricted operating support and revenues:
Contributions (note 13)
Operating revenue:
University of California:
Observatory operations
Observatory instrumentation
National Aeronautics and Space Administration (note 3):
Observatory operations
Association of Universities for Research in Astronomy (note 5)
Jet Propulsion Laboratory (note 4)
National Science Foundation (note 6)
Center for Adaptive Optics
Change Happens Foundation
Department of Homeland Security – FEMA (note 7)
Other
Interest income:Operations
Net assets released from restriction:
Satisfaction of equipment acquisition restrictions (note 14)$

Total unrestricted operating support and revenues
Expenditures (notes 11 and 15):
Program services:
Observatory operations, including loss from transfer to Caltech
of $0 in 2009 and $2,958,960 in 2008 (note 9)
Research
Administrative and general
Fund-raising

Change in temporarily restricted net assets (note 14):
Contributions, net
Interest earned
Net assets released from restriction

Net assets at beginning of year
Net assets at end of year$

See accompanying notes to financial statements.

3

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Statements of Cash Flows
Years ended September 30, 2009 and 2008

Cash flows from operating activities:
Change in net assets
Adjustments to reconcile change in net assets to net
cash provided by operating activities:
Depreciation
Net (gain) loss on disposal of property andequipment (note 9)
Decrease (increase) in assets:
Receivables, net
Prepaid expenses
Increase (decrease) in liabilities:
Accounts payable and accrued expenses
Advances$

Net cash provided by operating activities
Cash flows from investing activities:
Purchases of property and equipment
Proceeds on sale of property and equipment
Net cash used in investing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year$

See accompanying notes to financial statements.

4

2009

2008

2,734,045(261,943)

4,975,188

4,764,968(17,851)

3,462,762(161,615)
36,961

2,149,698
23,785556,296
231,343(234,914)(499,122)

8,354,367

9,405,234(8,870,175)
23,461(10,539,890)
59,200(8,846,714)(10,480,690)(492,347)(1,075,456)

13,057,437

14,132,893

12,565,090

13,057,437

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2009 and 2008

(1)

Description of Reporting Entity
California Association for Research in Astronomy (CARA) is a nonprofit corporation formed by the
California Institute of Technology (Caltech) and the University of California (UC) in January 1985 to buildand operate the W.M. Keck Observatory (Observatory) on the summit of Mauna Kea in Hawaii. Tax
exempt under Section 501(c)(3) of the Internal Revenue Code, CARA is a nonprofit California publicbenefit corporation and, as such, is qualified as a nonprofit corporation in the state of Hawaii.
The principal purpose of CARA is to foster astronomical research and to provide technical direction for thedevelopment and operation of astronomical facilities on the island of Hawaii, principally on land owned by
the state of Hawaii, leased to the University of Hawaii, and subleased to Caltech. The Observatory is
owned by Caltech and is leased to CARA for $1 per year. In consideration for subleasing the land to
Caltech for $1 per year through 2033, the University of Hawaii receives an opportunity to use theObservatory and related facilities and improvements. The astronomical facilities include two 10-metertelescopes (Keck I and Keck II), related instrumentation, adaptive optics technology, support facilities, andrequired infrastructure improvements.
The costs of development of the Observatory and the development of adaptive optics technology wereborne by Caltech, the majority of which were funded by grants from the W.M. Keck Foundation(the Foundation). Caltech’s maximum liability for Keck I and Keck II development costs was $75,222,000,
measured in 1984 dollars, and $78,600,000, measured in 1990 dollars, respectively. The Foundation’s
grant to Caltech for adaptive optics technology was $6,300,000.
UC provided financial support to CARA for pre-operating costs during the Observatory’s development
periods, acquisition of focal plane instrumentation, and observatory operations. For fiscal years 2009 and2008, UC provided continuing operating support for Keck I operations in the amount of $3,500,000 per
year, which continues through fiscal year 2017, and $1,750,000 for the six-month period ending March 31,
2018, all measured in 1984 dollars. For fiscal years 2009 and 2008, UC provided support for Keck II
operations in the amount of $2,105,000 per year, which continues through fiscal year 2017, and $1,052,500
for the six-month period ending March 31, 2018, all measured in 1990 dollars.
During 1993, Caltech and UC modified their original funding and governance agreement. Certain
modifications provided for third-party participation by the National Aeronautics and Space Administration(NASA) in the funding of the costs of the Observatory. In a cooperative agreement between Caltech andNASA, NASA contributed $44,005,000 to Caltech through fiscal year 2000 in return for collaboration in
the project.

5(Continued)

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2009 and 2008(2)

Summary of Significant Accounting Policies(a)Recent Accounting Pronouncements
On July 1, 2009, the Financial Accounting Standards Board (FASB) Accounting Standards
Codification™ (the Codification) became the authoritative source of accounting principles to be
applied to financial statements prepared in accordance with generally accepted accounting principles(GAAP). In accordance with the Codification, citations to accounting literature in this report are to
the relevant Topic of the Codification or are presented in plain English.

(b)

Financial Statement Presentation
The accompanying financial statements have been prepared on the accrual basis of accounting inaccordance with GAAP.
CARA follows the requirements of FASB Accounting Standards Codification (ASC)Section 958-205-45-2, Not-for-Profit Entities – Presentation of Financial Statement – Other
Presentation Matters. Under FASB ASC Section 958-205-45-2, CARA is required to report
information regarding its financial position and activities according to three classes of net assets:
unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets based
upon the existence or absence of donor-imposed stipulations. Accordingly, net assets of CARA andchanges therein are classified and reported as follows:
Unrestricted Net Assets – net assets that are not subject to donor-imposed stipulations and that may
be expended for any purpose in performing the objectives of CARA.
Temporarily Restricted Net Assets – net assets subject to donor-imposed stipulations that may orwill be met either by actions and/or the passage of time. As the restrictions are satisfied, temporarily
restricted net assets are reclassified and reported in the accompanying financial statements as net
assets are released from restrictions.
Permanently Restricted Net Assets – net assets subject to donor-imposed stipulations that
resources must be maintained in perpetuity. As of September 30, 2009 and 2008, CARA had nopermanently restricted net assets.

(c)

Cash Equivalents
For purposes of the statements of cash flows, CARA considers all highly liquid instruments withoriginal maturities of three months or less to be cash equivalents.

6(Continued)

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2009 and 2008(d)

Property and Equipment
Expenditures incurred by CARA for observatory instrumentation and facilities, operating equipment,
and vehicles are capitalized at cost, and depreciated when placed in service. Depreciation is provided
over the estimated useful lives of the respective assets using the straight-line method. The estimateduseful lives are as follows:
Class of assets

Estimated
useful lives

Observatory instrumentation
Observatory facility
Vehicles and equipment

10 – 20 years
3 – 15 years
3 – 25 years

CARA reports contributions designated by donors to acquire long-lived assets as restricted support.
Absent explicit donor stipulations about how long those long-lived assets must be maintained,
CARA reports expirations of donor restrictions when the acquired long-lived assets are placed inservice.
(e)Advances
Operating and instrumentation funds received from UC are recorded as advances until expended for
operating expenditures, observatory instrumentation, or vehicles and equipment. Funds received
from the Association of Universities for Research in Astronomy (AURA) for the purpose ofdeveloping certain instruments for the Keck II telescope or adaptive optics development are recorded
as advances until expended for their stated purpose.

(f)Contributions
Contributions are recorded in the period received. CARA reports gifts as restricted support if they
are received with donor-imposed stipulations that limit the use of the donated assets. When a donor
restriction expires, that is, when a stipulated time restriction ends or purpose restriction isaccomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported
in the statements of activities as net assets released from restrictions.
As described in note 1 to the financial statements, CARA leases the observatory and related facilities
and improvements from Caltech for $1 per year. As the use of the Observatory is so specific that
there is no assignable value, it is impractical to determine a fair rental value to be reported ascontribution revenue in the accompanying statements of activities.

7(Continued)

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2009 and 2008(g)

Use of Estimates
The preparation of the financial statements in accordance with GAAP requires management of
CARA to make a number of estimates and assumptions relating to the reported amounts of assets andliabilities and the disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenditures during the reporting period. Significant items
subject to such estimates and assumptions include the carrying amount of property and equipment
and valuation allowances for receivables. Actual results could differ from those estimates.

(h)Impairment of Long-Lived Assets
In accordance with FASB ASC Section 360-10-35, Property, Plant, and Equipment – Overall –Subsequent Measurement, long-lived assets, such as property and equipment, and purchased
intangibles subject to amortization, are reviewed for impairment whenever events or changes incircumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances
require a long-lived asset be tested for possible impairment, CARA first compares undiscounted cash
flows expected to be generated by an asset to the carrying value of the asset. If the carrying value ofthe long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment isrecognized to the extent that the carrying value exceeds its fair value. Fair value is determinedthrough various valuation techniques, including discounted cash flow models, quoted market values,
and third-party independent appraisals, as necessary.

(i)

Sponsored Programs, Grants, and Contracts
Governmental and private grants and contracts normally provide for the recovery of direct andindirect costs, subject to audit. CARA recognizes revenues associated with direct costs as incurred.
Indirect costs recovered on federally sponsored programs are based on cost reimbursement rates
negotiated with CARA’s cognizant agency, the Office of Naval Research. Indirect costs recoveredon all other grants and contracts are based on rates negotiated with the respective parties.

(j)Subsequent Events
In May 2009, FASB issued FASB Statement No. 165, Subsequent Events (Statement 165), also
referenced as FASB ASC Section 855-10, Subsequent Events – Overall. Statement 165 establishes
general standards of accounting for and disclosure of events that occur after the balance sheet datebut before financial statements are issued or are available to be issued. Statement 165 is effective for
periods ending after June 15, 2009. The Company has adopted Statement 165 for the year ended
September 30, 2009.
CARA has evaluated subsequent events from the balance sheet date through March 17, 2010, thedate at which the financial statements were available to be issued. There are no other matters todisclose.

8(Continued)

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2009 and 2008(k)

Reclassifications
Certain reclassifications have been made to the 2008 financial statements to conform to the 2009presentation. Such reclassifications had no effect on previously reported change in net assets.

(3)

National Aeronautics and Space Administration (NASA) Funding Agreements
In 2005, NASA awarded CARA a three-year cooperative agreement for telescope viewing time and thedevelopment of an archived database. Revenues under the cooperative agreements were $0 and $1,077,187
in 2009 and 2008, respectively.
In 2008, NASA awarded CARA a new five-year cooperative agreement for telescope viewing time,
infrastructure renewal, and the development of an archived database. Revenues under the cooperative
agreement were $3,183,653 and $2,006,482 in 2009 and 2008, respectively.

(4)

Jet Propulsion Laboratory (JPL) Agreements
In 2005, CARA entered into a $7,284,011 cost-reimbursement subcontract with JPL for the Keck
Interferometer project. In 2007, JPL renewed the contract for an additional $5,142,000 throughSeptember 30, 2008. In 2009, JPL extended the subcontract for an additional $2,114,000 throughDecember 30, 2010. During 2009 and 2008, $1,601,463 and $2,575,746, respectively, was received under
the subcontract.
Revenues under the cost-reimbursement subcontract were $2,133,272 and $2,147,950 in 2009 and 2008,
respectively. Amounts due to CARA under the cost-reimbursement subcontract of $444,840 and $55,216
as of September 30, 2009 and 2008, respectively, are included as receivables in the accompanying
statements of financial position.

(5)

Association of Universities for Research in Astronomy Agreements
In 2004, CARA entered into a fixed price contract with AURA for adaptive optics development. CARA
was awarded and advanced $1,080,981 for the development of the next generation of optical wavefront
sensor detectors.
In 2005, CARA entered into a fixed price contract with AURA for Keck I instrumentation development. In
2005, CARA was awarded $2,452,629 for the design of MOSFIRE, a Multi-Object Spectrograph for
Infra-Red Exploration. In 2007, the fixed price contract was revised to provide additional funding of$4,913,664 for the MOSFIRE project.
In 2008, CARA entered into a fixed price sub-award with AURA for next-generation adaptive optics
development. CARA was awarded $2,047,360 for the development of the next generation of optical
wavefront sensor detectors.
In 2009, CARA entered into a fixed price contract with AURA for a sodium-wavelength development
program. CARA was awarded $300,000 to procure three sodium-wavelength design studies.
9(Continued)

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2009 and 2008

Revenues recognized under these contracts with AURA amounted to $2,616,458 and $1,815,321 in 2009
and 2008, respectively. As of September 30, 2009 and 2008, unspent receipts under the AURA contracts
amounted to $1,232,607 and $1,296,969, respectively, and are included as advances in the accompanying
statements of financial position.
(6)

National Science Foundation (NSF) Award
In 2004, NSF awarded CARA a three-year research grant that was subsequently extended for two
additional years. As of September 30, 2009, the total award was $539,968, of which $0 and $136,364,
respectively, was received in 2009 and 2008.
In 2006, NSF awarded CARA a two-year $1,958,000 grant to upgrade the Interferometer instrument of
which $685,843 and $539,193, respectively, was received in 2009 and 2008.
Revenues recognized under these contracts with NSF amounted to $692,982 and $633,526 in 2009 and2008, respectively.

(7)

Department of Homeland Security – Federal Emergency Management Agency (FEMA)
During 2008, CARA had expenditures totaling $418,683 to be reimbursed by FEMA related to repairs fortelescope and headquarters damage sustained from the two Kiholo Bay earthquakes on October 15, 2006.
As of September 30, 2009, the full reimbursement was received.

(8)

Contributions Receivable
Contributions receivable represent unconditional promises to give by donors. In accordance withFASB ASC Section 958-605-25, Not-for-Profit Entities – Recognition – Promises to Give, contributions
receivable are recorded at their estimated fair value. Amounts due more than one year later are recorded at
the present value of the estimated future cash flows, discounted at a risk-free rate ranging from 4.3% to3.1% applicable to the year in which the promise was received. Contributions receivable expected to bereceived at September 30, 2009 and 2008 are as follows:2009
Amounts due in:
One year or less$

Gross contributions receivable
Less discount to present value

2008

50,000281,458

50,000281,458—    Contributions receivable, net$

1050,000(2,783)
278,675(Continued)

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2009 and 2008

(9)

Property and Equipment
A summary of property and equipment at September 30, 2009 and 2008 follows:

Instrumentation:
Property and equipment
Construction in progress$

Adaptive optics:
Property and equipment
Construction in progress
Infrastructure:
Property and equipment
Construction in progress
Vehicles and equipment
Less accumulated depreciation
$

2009

2008

54,789,211
48,534,582

50,732,901
47,680,800

103,323,793

98,413,701

11,244,207
6,660,630

9,083,608
6,247,301

17,904,837

15,330,909

2,276,498
1,835,604

700,557
2,249,965

4,112,102

2,950,522

3,755,866

3,616,780(41,148,935)(36,253,626)

87,947,663

84,058,286

Depreciation expense amounted to $4,975,188 in 2009 and $4,764,968 in 2008.
As described in note 1, CARA leases the observatory and related facilities and improvements from Caltech
for $1 per year. In 2008, CARA recorded a $2,958,960 loss from the transfer to Caltech of capital asset
improvements to Observatory facilities that were expended by CARA and recorded on CARA’s financial
statements. The losses are included in observatory operations expenditures in the accompanying statementsof activities.
(10) Income Taxes
CARA has received a determination from taxing authorities that it is an organization exempt from taxation
under Section 501(c)(3) of the U.S. Internal Revenue Code and Section 23701d of the California Revenue
and Taxation Code and is generally not subject to federal or state income taxes. However, CARA is subject
to income taxes on any net income derived from a trade or business, regularly carried on, and not in
furtherance of the purposes for which it was granted exemption. No income tax provision has beenrecorded as the net income, if any from any unrelated trade or business, in the opinion of management, is
not material to the financial statements taken as a whole.
11(Continued)

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2009 and 2008(11) Related-Party Transactions
Caltech and UC provide various instrument and adaptive optics development services to CARA. During
fiscal years 2009 and 2008, total expenditures for these services charged to CARA were $1,010,449 and$1,919,182, respectively, by Caltech, and $1,466,262 and $2,054,183, respectively, by UC.
(12) Commitments
CARA entered into various contractual agreements for observatory construction and development of
instrumentation, laser guide star and adaptive optics systems, operations, and interferometry systems. A
summary of commitments at September 30, 2009 follows:

Operations
Instrumentation
Laser Guide Star and Adaptive
Optics Systems
Interferometry

$

Total

$

1,785,668
727,881
628,491
556,5023,698,542(13) Board-Designated Net Assets
In 2006, CARA established a board designated Director’s Fund separate from its unrestricted,
undesignated net assets for receipt of all unrestricted contributions and their subsequent expenditures. In
2009 and 2008, CARA received contributions of $87,066 and $102,316, respectively, which were board
designated for the Director’s Fund. At September 30, 2009 and 2008, $68,898 and $229,832, respectively,
was available in the fund.
(14) Temporarily Restricted Net Assets
In 2004, the W. M. Keck Foundation made a contribution of $2,000,000 to CARA for the purpose of
upgrading and optimizing the existing adaptive optics system. In 2009 and 2008, $3,031 and $248,046,
respectively, of temporarily restricted net assets were released from restriction in satisfaction of equipment
acquisition restrictions. At September 30, 2009 and 2008, $0 and $20,365, respectively, was available forthe purpose of upgrading and optimizing the existing adaptive optics system.
In December 2005, CARA received a restricted contribution pledge of $4,899,875 for Keck I
instrumentation development of MOSFIRE. In 2009 and 2008, $1,067,789 and $2,412,066, respectively, of
temporarily restricted net assets were released from restriction in satisfaction of equipment acquisition
restrictions. At September 30, 2009 and 2008, after discounting the pledge and receipt of interest earned
and pledge payments, $1,136,786 and $2,162,300, respectively, was available for instrument development.

12(Continued)

CALIFORNIA ASSOCIATIONFOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2009 and 2008

In 2006, CARA established a Rising Stars fund to accept contributions in support of the Observatory’s
sponsored education programs. At September 30, 2009 and 2008, $7,635 and $6,084, respectively, wasavailable in this program.
CARA received various restricted contributions for instrument development and advancement activities
totaling $202,742 and $3,380, respectively, in 2009 and 2008. In 2009 and 2008, $152,742 and $103,380,
respectively, of temporarily restricted net assets were released from restriction in satisfaction of equipment
acquisition and advancement activity restrictions.
(15) Deferred Compensation 403(b) PlanCARA has a defined contribution retirement plan (the Plan), which was established under Section 403(b)of the U.S. Internal Revenue Code. All eligible employees participate in the Plan. An eligible employee isdefined as an employee regularly scheduled to work at least 20 hours per week subject to the appropriate
waiting period as defined in the Plan. CARA is required to make contributions to the Plan at various
percentages of base salary depending on the participant’s age and grade. Contributions to the Plan
amounted to $787,054 and $788,610 for fiscal years 2009 and 2008, respectively.

13