California Association for Research in Astronomy
dba W. M. Keck Observatory(A Nonprofit California Public Benefit Corporation)
Financial Statements(With Independent Auditors’ Report Thereon)
September 30, 2017 and 2016

Independent Auditors’ Report

The Board of Directors
California Association for Research in Astronomy:

Report on the Financial Statements
We have audited the accompanying financial statements of the California Association for Research in
Astronomy, which comprise the statements of financial position as of September 30, 2017 and 2016, andthe related statements of activities, and cash flows for the years then ended, and the related notes tofinancial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fairpresentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
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 and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparationand fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.
1

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the California Association for Research in Astronomy as of September 30, 2017 and2016, and the changes in its net assets and its cash flows for the years then ended in accordance withaccounting principles generally accepted in the United States of America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 16,
2018 on our consideration of the California Association for Research in Astronomy’s internal control overfinancial reporting and on our tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements and other matters. The purpose of that report is solely to describe thescope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the California Association for Research in
Astronomy’s internal control over financial reporting or on compliance. That report is an integral part ofan audit performed in accordance with Government Auditing Standards in considering the California
Association for Research in Astronomy’s internal control over financial reporting and compliance.

Honolulu, Hawaii
February 16, 2018

2

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Statements of Financial Position
September 30, 2017 and 2016

AssetsCurrent assets:
Cash and cash equivalents (notes 2 and 3)
Grants and contracts receivable
Prepaid expenses and other assets (note 11)

2017$

Total current assets
Noncurrent assets:Long-term investments (note 3)
Property and equipment, net (notes 5 and 7)
Total assets

Liabilities and Net Assets
Current liabilities:
Accounts payable and accrued expenses (note 11):
Advances (note 2)

2016

8,958,030
735,752
496,623$

11,944,040
530,743
342,040

10,190,405

12,816,823

12,342,389
47,940,808

7,190,938
49,872,715$

70,473,602$

69,880,476$

3,212,218
18,130,230$

3,239,559
15,670,340

Total current liabilities

21,342,448

18,909,899

Net assets:
Unrestricted
Unrestricted - board-designated (note 9)
Temporarily restricted (note 10)

47,753,287
804,560
573,307

49,685,193
698,323
587,061

49,131,154

50,970,577--

Total net assets
Commitments (notes 8 and 11)
Total liabilities and net assets$

70,473,602

See accompanying notes to financial statements.
3$

69,880,476

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Statements of Activities
Years Ended September 30, 2017 and 2016

2017
Changes in unrestricted net assets:
Unrestricted operating support and revenues:
Operating revenues (notes 1 and 4):
University of California observatory operations
Other
Net unrealized gains on investments (note 3)
Interest income (note 3)
Contributions (note 9)
Net gain (loss) on disposal of assets (note 5)
Other income
Net assets released in satisfaction of equipment
acquisition restrictions (note 10)$

11,142,331
9,889,334
1,151,451
222,766
195,384657
135,091

2016$

11,694,637
8,039,268
386,809
183,034
125,563(991,180)
122,815

991,799

511,100

23,728,813

20,072,046

Expenses (notes 5, 7, and 11):
Program services:
Observatory operations
Related party asset projects
Research
Administration and general
Fund-raising

18,101,578
3,512,084
38,054
3,382,765
520,001

18,243,797
3,122,348
11,3562,643,151
383,459

Total expenses

25,554,482

24,404,111

Change in unrestricted net assets(1,825,669)(4,332,065)

Change in temporary restricted net assets (note 10):Contributions
Net assets released from restrictions

978,045(991,799)

609,587(511,100)

Change in temporarily restricted net assets(13,754)

98,487(1,839,423)(4,233,578)

50,970,577

55,204,155

Total unrestricted revenues

Change in net assets
Net assets at beginning of year
Net assets at end of year$

49,131,154

See accompanying notes to financial statements.
4$50,970,577

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Statements of Cash Flows
Years Ended September 30, 2017 and 20162017
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 unrealized gains on investments
Net loss (gain) on disposal of property and equipment
Contributions restricted for investment in property
and equipment
Decrease (increase) in operating assets:
Grants and contracts receivable, net
Prepaid expenses and other assets
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses
Advances$(1,839,423)

Net cash used in investing activities

Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

(4,233,578)

6,350,096(386,809)
991,180(648,099)(609,587)(205,009)(154,583)(13,597)(163,725)(27,341)2,459,890

297,555
4,263,295

5,557,861

6,494,830(5,217,470)
25,500(4,000,000)(2,951,416)
46,894-(9,191,970)(2,904,522)

648,099609,587(2,986,010)

4,199,895

11,944,040

7,744,145

Cash flows provided by financing activities:
Contributions restricted for investment inproperty and equipment
Net increase (decrease) in cash and cash equivalents$

7,124,534(1,151,451)(657)

Net cash provided by operating activities
Cash flows from investing activities:
Purchases of property and equipment
Proceeds on sale of property and equipment
Purchases of investments

2016

$

See accompanying notes to financial statements.
58,958,030$

11,944,040

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Schedule of Findings and Questioned Costs
Year Ended September 30, 2017

(1)

Organization and Operations
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 build and operate the W. M. Keck Observatory (the Observatory) near the summit of
Mauna Kea in Hawaii. Tax exempt under Section 501(c)(3) of the Internal Revenue Code, CARA
is a nonprofit California public benefit 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 the development and operation of astronomical facilities on the island of Hawaii, principally onland 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 anopportunity to use the Observatory and related facilities and improvements. The astronomical
facilities include two 10-meter telescopes (Keck I and Keck II), related instrumentation, adaptive
optics technology, support facilities, and required infrastructure improvements.
The costs of development of the Observatory and the development of adaptive optics technology
were borne by Caltech, the majority of which were funded by grants from the W. M. Keck
Foundation (the Foundation). Caltech's funding for Keck I and Keck II development costs was$75,222,000 and $78,600,000, respectively. Keck I development was completed in 1996; Keck II
was largely completed in 1998 with the remaining development costs completely expended by
2005.
UC provided financial support to CARA for pre-operating costs during the Observatory’s
development periods, acquisition of focal plane instrumentation, and observatory operations. UC
provides 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. UC provides support for Keck II operations in theamount of $2,105,000 per year, which continues through fiscal year 2017, and $1,052,500 for thesix-month period ending March 31, 2018, all measured in 1990 dollars. For fiscal years 2017 and2016, CARA received operating support for Keck I operations of $8,391,250 and $8,270,186,
respectively. For fiscal years 2017 and 2016, CARA received operating support for Keck II
operations of $6,283,150 and $6,041,498, respectively. For fiscal years 2017 and 2016, CARA
recognized operating revenue for Keck I and Keck II operations from UC of $11,142,331 and$11,694,637 respectively.

6

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Schedule of Findings and Questioned Costs
Year Ended September 30, 2017(2)

Summary of Significant Accounting Policies
Basis of Presentation
The accompanying financial statements have been prepared using the accrual basis of accounting
and accounting principles generally accepted in the United States of America (GAAP).
Net Assets
The financial statements report net assets and changes in net assets based upon the existence orabsence of restrictions on use that are placed by its donors, 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
or will 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 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, 2017 and 2016, CARA had
no permanently restricted net assets.
Cash and Cash Equivalents
CARA considers all highly liquid instruments with original maturities of three months or less to be
cash equivalents. As of September 30, 2017 and 2016, cash equivalents of $8,863,094 and$11,635,844, respectively, were invested in the University of California Short-term Investment
Pool (UC STIP), and reported at fair value in the accompanying financial statements. See Note 3
for further discussion and disclosures related to fair value measurements.
Long-term Investments
CARA’s investments in the University of California General Endowment Pool (UC GEP) are stated
at fair value. Fair value is defined as the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date(an exit price). See Note 3 for further discussion and disclosures related to fair value
measurements.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on
the accrual basis. Dividends are recorded on the ex-dividend date.

7

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Schedule of Findings and Questioned Costs
Year Ended September 30, 2017

Realized and unrealized gains (losses) on investments are based on the difference between the fairvalue of assets at the beginning of the year, or at the time of purchase for assets purchased during
the year, and the related fair value on the day investments are sold with respect to realized gains(losses), or on the last day of the year for unrealized gains (losses).
Property and Equipment
Expenditures incurred by CARA for observatory instrumentation and facilities, operating
equipment, and vehicles are capitalized at cost, except for donated property that is valued at fairmarket value at the date of the gift, and depreciated when placed in service. Depreciation isprovided over the estimated useful lives of the respective assets using the straight-line method. The
estimated useful lives are as follows:

Class of assets
Observatory instrumentation
Observatory facility
Vehicles and equipment

Estimated
useful lives
5-20 years
3-15 years
3-20 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 for construction in progress when costs are
incurred.
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) and other foundation
grants for the purpose of developing certain instruments for the Keck telescopes or adaptive optics
development are recorded as advances until expended for their stated purpose.

8

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Schedule of Findings and Questioned Costs
Year Ended September 30, 2017

A summary of advances at September 30, 2017 and 2016 follows:

2017
University of California:
Observatory operations
Other
Heising-Simons Foundation
W. M. Keck Foundation
Gordon and Betty Moore Foundation
Other
Total advances

2016

$

16,555,142
101,3021,470,583
3,203$

13,023,073
335,386
2,004,594
129,049
77,204
101,034$

18,130,230$

15,670,340

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 andreported in the statements of activities as net assets released from restrictions.
As described in note 1, 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 assignablevalue, it is impractical to determine a fair rental value to be reported as contribution revenue in theaccompanying statements of activities.
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
and liabilities and the disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period.
Significant items subject to such estimates and assumptions include the carrying amount of property
and equipment and the valuation of receivables and investments. Actual results could differ fromthose estimates.

9

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Schedule of Findings and Questioned Costs
Year Ended September 30, 2017

Long-Lived Assets
Long-lived assets, such as property and equipment, are reviewed for impairment whenever eventsor changes in circumstances 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 of the long-lived asset is not recoverable on an undiscounted cash flow basis, animpairment is recognized to the extent that the carrying value exceeds its fair value. Fair value isdetermined through various valuation techniques, including discounted cash flow models, quoted
market values, and third-party independent appraisals, as necessary.
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 National Aeronautics and Space Administration(NASA). Indirect costs recovered on all other grants and contracts are based on rates negotiatedwith the respective parties.
Subsequent Events
CARA has evaluated subsequent events from the balance sheet date through February 16, 2018 thedate at which the financial statements were available to be issued. There are no other matters todisclose.

(3)

Fair Value Measurements
The fair value of CARA’s investments have been estimated using the net asset value per share as apractical expedient, and in accordance with Accounting Standards Codification Subtopic 820-10,
Fair Value Measurement and Disclosures, are not required to be presented in a fair value hierarchy.
There have been no changes in the methodologies used at September 30, 2017 and 2016.

10

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Schedule of Findings and Questioned Costs
Year Ended September 30, 2017

The following table summarizes CARA’s investments for which fair value is measured using the
net asset value per share practical expedient as of September 30, 2017 and 2016:
Fair Value as of September:
2017

Redemption
Frequency

Redemption
Notice Period

11,635,844

Daily

Trade date

7,190,938

Monthly

30 days2016

Cash and cash equivalents:
University of California
Short-Term Investment Pool$

8,863,094$

Long-term investments:
University of California
General Endowment Pool

12,342,389$

21,205,483$

18,826,782

The following is a description of CARA’s investments:
UC STIP – is a highly liquid investment fund held by UC. Shares of the UC STIP arepurchased and redeemed at a constant value of $1 per share.
UC GEP – it is a unitized fund whereby CARA participates in investment returns and incomeon an equivalent pro-rated basis with all participants in the pool. The UC GEP consists of thefollowing investments at September 30, 2017: 23.1% U.S. equity securities, 17.9% absolute
return funds, 16.5% international equity securities, 10.8% private equity funds, 9.0% U.S. fixedincome securities, 8.7% cash, 5.2% emerging market securities, 4.4% U.S. real estate funds,
2.4% international fixed income securities, and 2.0% real asset funds. Under CARA’s
investment agreements with UC, investments in the UC GEP are redeemable at net asset value.
The funds held in the UC GEP are not subject to an initial lockup period, however, fundredemptions are limited to 5% per year unless additional redemptions are approved by the UC.
As of September 30, 2017, the UC GEP amounted to approximately $11.0 billion, withunfunded commitments amounting to $460.1 million.
Due to the nature of the investments held by the funds, changes in market conditions and theeconomic environment may significantly impact the net asset value of the fund and,
consequently, the fair value of CARA’s interests in the UC GEP.

11

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Schedule of Findings and Questioned Costs
Year Ended September 30, 2017(4)

Operating Revenues
A summary of operating revenues for the years ended September 30, 2017 and 2016 follows:

University of California - observatory operations (note 1)
National Aeronautics and Space Administration
Heising-Simons Foundation
National Science Foundation
W. M. Keck Foundation
Association for Universities for Research in Astronomy
Gordon and Betty Moore Foundation
Other
Total operating revenues

(5)

2017

2016

$ 11,142,331
3,905,508
1,234,012
1,220,679
129,049
100,000
77,204
3,222,882$ 11,694,637
3,923,028
464,268
307,410
162,018
10,405
3,172,139$ 21,031,665$ 19,733,905

Property and Equipment
A summary of property and equipment at September 30, 2017 and 2016 follows:

Observatory instrumentation and adaptive optics:
Property and equipment
Construction in progress

2017

2016

$ 113,771,399
4,830,734$ 100,786,161
13,192,936

118,602,133

113,979,097

Observatory infrastructure:
Property and equipment

4,700,611

4,466,132

Vehicles and equipment

5,081,780

5,265,866

128,384,524(80,443,716)

123,711,095(73,838,380)

Less accumulated depreciation
Total property and equipment, net$

47,940,808$

49,872,715

Depreciation expense amounted to $7,124,534 and $6,350,096 for the years ended September 30,
2017 and 2016, respectively.

12

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Schedule of Findings and Questioned Costs
Year Ended September 30, 2017

In 2016, CARA replaced the dye laser in the Keck 2 telescope with an upgraded solid state laser,
resulting in a net loss on disposal of $802,478 for the year ended September 30, 2016.

(6)

Income Taxes
CARA has received a determination from taxing authorities that it is an organization exempt fromtaxation 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 been recorded as the net income, if any from any unrelated trade orbusiness, in the opinion of management, is not material to the financial statements taken as a whole.
CARA applies the provisions of ASC Topic 740, Income Taxes, which prescribes a recognition
threshold and measurement attribute for the financial statement recognition and measurement of atax position taken or expected to be taken in a tax return, and provides guidance on derecognition,
classification, interest, and penalties, disclosure, and transition. Management believes that no such
uncertain tax position exists for CARA requiring accrual or disclosure at September 30, 2017 and2016. CARA is no longer subject to U.S. federal income tax examinations by tax authorities foryears before 2014.

(7)

Related-Party Transactions
Caltech and UC provide various instrument and adaptive optics development services to CARA.
During fiscal years 2017 and 2016, total expenditures for these services charged to CARA were$535,629 and $601,662, respectively, by Caltech, and $1,332,718 and $215,369, respectively, by
UC.
CARA provided services for projects on Caltech’s observatory assets located in Hawaii including:ongoing repair of the telescope mirror segments, telescope control system upgrades, dome shutter
improvements, installation of two photo-voltaic systems on Caltech’s Waimea headquarters
buildings, a fiber interface, and ongoing installation of a spare secondary mirror. During fiscal
years 2017 and 2016, total expenditures for these projects was $3,116,292 and $3,122,348,
respectively.
CARA provided services for projects as a subawardee to UC including development of a tertiary
mirror and development of a spectrograph. During fiscal year 2017, total expenditures for theseprojects was $395,792.

13

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Schedule of Findings and Questioned Costs
Year Ended September 30, 2017(8)Commitments
CARA entered into various contractual agreements for operations, laser guide star and adaptive
optics systems, observatory construction and development of instrumentation and interferometry
systems. A summary of commitments at September 30, 2017 follows:

Operations
Instrumentation
Laser guide star and adaptive optics systems
Total commitments(9)$

1,902,412
1,341,343
182,341$

3,426,096

Board-Designated Net Assets
CARA established a board-designated Director’s Fund separate from its unrestricted, undesignatednet assets to be spent at the Observatory Director’s discretion, except that there is a ceiling of$100,000 for each activity unless Board approval is obtained. The Director will report annually to
the Board on the use of this fund. In 2017 and 2016, CARA received contributions of $195,384
and $125,563, respectively, which were board-designated for the Director’s Fund. At September
30, 2017 and 2016, respectively, the board-designated net assets amounted to $804,560 and$698,323.

(10) Temporarily Restricted Net Assets
In 2017 and 2016, CARA received restricted contributions for various instrumentation and adaptive
optics technology development and Development Office initiatives totaling $978,045 and $609,587,
respectively. In 2017 and 2016, $991,799 and $511,100, respectively, of temporarily restricted net
assets were released from restriction in satisfaction of equipment acquisition and program
restrictions. At September 30, 2017 and 2016, $573,307 and $587,061, respectively, was available
for these activities.

14

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Schedule of Findings and Questioned Costs
Year Ended September 30, 2017(11) Deferred Compensation
403(b)Plan
CARA sponsors a defined contribution retirement plan (the Plan), which was established under
Section 403(b) of the U.S. Internal Revenue Code. The Plan provides for CARA to makecontributions at various percentages of base salary depending on the participant’s age and grade.
Eligible employees, as defined in the Plan, may make contributions not to exceed amounts
allowable under the U.S. Internal Revenue Code. Contributions to the Plan amounted to $921,578
and $922,291 for fiscal years 2017 and 2016, respectively.
457(b) Plan
In 2014, CARA established a voluntary deferred compensation plan for a specific group of
management designed in accordance with the provisions of Section 457 of the Internal Revenue
Code. The plan allows participants to defer a portion of their compensation until after employment
termination. Assets in the plan are held by CARA on a non-trust basis and are subject to the claimsof its creditors. The plan is funded entirely from the compensation of the participants and vests
with the employee immediately. CARA makes no contributions to the plan. The 457(b) plan assets
and related liability obligation to participants of $298,802 and $208,219 as of September 30, 2017
and September 30, 20l6, respectively, are included within other assets and accounts payable andaccrued expenses in the accompanying statements of financial position.

15