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, 2015 and 2014

Independent Auditors’ Report

The Board of Directors
California Association for Research in Astronomy:

Report on Financial Statements
We have audited the accompanying financial statements of the California Association for Research in
Astronomy, which comprise the statement of financial position as of September 30, 2015, and the related
statements of activities, and cash flows for the year then ended, and the related notes to the financial
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 audit. We
conducted our audit 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 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 2015 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, 2015, andthe changes in its net assets and its cash flows for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Other Matter
Prior Period Financial Statements
The financial statements of the California Association for Research in Astronomy as of and for the year
ended September 30, 2014, were audited by other auditors whose report dated March 20, 2015, expressed
an unmodified opinion on those financial statements.

Honolulu, Hawaii
February 26, 2016

2

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Statements of Financial Position
September 30, 2015 and 2014

AssetsCurrrent assets:
Cash and cash equivalents
Grants and contracts receivable
Prepaid expenses and other assets

2015$

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:
Advances (note 2)

2014

7,744,145
517,146
178,315$

9,178,045
437,056
148,3138,439,606

9,763,414

6,804,129
54,309,469

5,857,216
54,328,833$

69,553,204$

69,949,463$

2,942,004
11,407,045$

2,520,534
12,498,326

Total current liabilities

14,349,049

15,018,860

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

54,121,947
593,634
488,574

54,141,311
354,038
435,254

55,204,155

54,930,603--

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

69,553,204

See accompanying notes to financial statements.
3$

69,949,463

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Statements of Activities
Years Ended September 30, 2015 and 2014

2015
Changes in unrestricted net assets:
Unrestricted operating support and revenues
Contributions
Operating revenues (note 4):
University of California observatory operations
Other
Interest income
Net realized and unrealized gains (losses)
on investments (note 3)
Other income
Net assets released in satisfaction of equipment
acquisition restrictions (note 10)$239,5962014$

161,606

14,002,090
8,116,893
208,072

14,229,688
7,434,348
338,851(59,022)
269,890444,867
145,226

597,606

433,352

23,375,125

23,187,938

16,930,565
3,040,642
49,1572,552,538
581,991

16,862,967
3,286,304
45,496
3,204,811
494,770

23,154,893

23,894,348

Change in unrestricted net assets

220,232(706,410)

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

650,926(597,606)

216,620(433,352)

Change in temporarily restricted net assets

53,320(216,732)

Change in net assets

273,552(923,142)

54,930,603

55,853,745

Total unrestricted revenues
Expenses (notes 5, 7, and 11):
Program services:
Observatory operations
California Institute of Technology asset project
Research
Administration and general
Fund-raising
Total expenses

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

55,204,155

See accompanying notes to financial statements.
4$

54,930,603

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, 2015 and 2014

2015
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 realized and unrealized losses (gains) on investments
Net 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
Contributions receivable, net
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses
Advances$

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

273,552

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

(923,142)

5,962,883
59,022(20,797)

6,177,720(444,867)(45,121)(650,926)(216,620)(80,090)(30,002)-132,242
18,678100,000

421,470(1,091,281)(510,716)(1,350,741)

4,843,831

2,937,433(5,943,519)(1,005,935)
20,797(5,661,740)(5,465,798)
45,121(6,928,657)(11,082,417)

650,926

216,620(1,433,900)(7,928,364)

9,178,045

17,106,409

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

2014

7,744,145

See accompanying notes to financial statements.
5$9,178,045

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2015 and 2014

(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) 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 public benefit corporation and, as such, is qualified as a nonprofit corporationin 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 preoperating 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 2015 and2014, CARA received operating support for Keck I operations of $8,273,160 and $8,138,235,
respectively. For fiscal years 2015 and 2014, CARA received operating support for Keck II
operations of $5,809,126 and $5,585,702, respectively. For fiscal years 2015 and 2014, CARA
recognized operating revenue for Keck I and Keck II operations from UC of $14,002,090 and$14,229,688, respectively.

6

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2015 and 2014(2)

Summary of Significant Accounting Policies
Basis of Presentation
The accompanying financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP).
CARA follows the requirements of Financial Accounting Standards Board (FASB) AccountingStandards 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 tothree 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 and changes 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
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, 2015 and 2014, 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, 2015 and 2014, cash equivalents of $7,603,123 and$8,949,520, respectively, were invested in the University of California Short-term Investment Pool
(UC STIP). Investments included in the UC STIP are highly liquid investments held by the UC andhave original maturities of three months or less. These investments include indirect observable
inputs and therefore are considered to be Level 2 in the fair value hierarchy.

7

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2015 and 2014

Long-term Investments
CARA records its investments at fair value as defined in ASC 820, Fair Value Measurements andDisclosures. Investments are stated at fair value with gains and losses included in the statements ofactivities as an increase or decrease in unrestricted net assets unless their use is temporarily or
permanently restricted by a donor.
CARA follows the measurement provisions of Accounting Standards Update (ASU) No. 2009-12,
Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), tocertain investments in funds that do not have readily determinable fair values including private
investments, hedge funds, real estate, and other funds of funds. This guidance allows for theestimation of the fair value of investments in investment companies for which the investment does
not have a readily determinable fair value using net asset value per share or its equivalent.
CARA’s investments in the University of California's General Endowment Pool (UC GEP) are
reported at net asset value. The UC GEP is a unitized fund whereby CARA participates ininvestment returns and income on an equivalent pro-rated basis with all participants in the pool. For
these investments, CARA has concluded that the net asset value reported by the underlying fund isa practical expedient to estimating fair value. CARA’s investments in the UC GEP are redeemablewith the fund at net asset value under the original terms of the investment agreement with the UC
subject to the restrictions discussed in note 3. Due to the nature of the investments held by thefunds, changes in market conditions and the economic environment may significantly impact the
net asset value of the funds and, consequently, the fair value of CARA’s interests in the funds.
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

Estimated
useful lives

Observatory instrumentation
Observatory facility
Vehicles and equipment

10-20 years
3-15 years
3-20 years

8

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2015 and 2014

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.
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.
A summary of advances at September 30, 2015 and 2014 follows:
2015
University of California:
Observatory operations
Other
W. M. Keck Foundation
Gordon and Betty Moore Foundation
Association for the Universities for Researchin Astronomy
Other
Total advances

$

2014

10,406,026
330,000
433,884
237,135$$

11,407,045

10,325,829
1,174,242
851,374
118,836
28,045$

12,498,326

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.

9

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2015 and 2014

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.
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 Office of Naval Research. Indirect costs recoveredon all other grants and contracts are based on rates negotiated with the respective parties.
Subsequent Events
CARA has evaluated subsequent events from the balance sheet date through February 26, 2016, thedate at which the financial statements were available to be issued. There are no other matters todisclose.

10

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2015 and 2014

(3)

Long-term Investments
CARA's long-term investments are stated at fair value. Investment purchases and sales arerecorded on a trade-date basis. Unrealized appreciation or depreciation on investments is recordedin the statement of activities. Dividend income is recorded on the ex-dividend date. Interest income
is recorded when earned. As of September 30, 2015 and 2014, CARA's long-term investments
consisted of $6,804,129 and $5,857,216, respectively, in the UC GEP.
The UC GEP is valued based on net asset value as discussed in note 2. The pool includes thefollowing at September 30, 2015: 21.3% U.S. equity securities, 20.3% international equity
securities, 9.6% U.S. fixed income securities, 2.4% international fixed income securities, 8.3% U.S.
real estate funds, 9.5% private equity funds, 26.2% absolute return funds, and 2.4% cash. The levelin the fair value hierarchy within which a fair value measurement in its entirety falls is based on thelowest-level input that is significant to the fair value measurement in its entirety. As the poolincludes investments with unobservable inputs, the fair value of the pool is considered to be Level 3
in the fair value hierarchy.
The following is a summary of the inputs used as of September 30, 2015 and 2014 in valuing
CARA’s long term investments carried at fair value:
Fair Value as of September 30, 2015
(Level 2)(Level 3)(Level 1)
University of California
General Endowment Pool

$

-

$

-

$

6,804,129$

Fair Value as of September 30, 2014
(Level 2)(Level 3)(Level 1)
University of California
General Endowment Pool

$

Total

-

$

-

$

5,857,216

6,804,129

Total

$

5,857,216

Under CARA’s investment agreement with the UC, the funds held in the UP GEP are not subject toan initial lockup period, however, fund redemptions are limited to 5% per year unless additional
redemptions are approved by the UC.

11

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2015 and 2014

The following is a reconciliation of investments as of and for the years ended September 30, 2015
and 2014, in which significant unobservable inputs (Level 3) were used in determining fair value:
2015
Balance at beginning of year
Total gains (losses) included in income:
Realized
Unrealized
Purchases, issuance, and settlements (net)$

Balance at end of year

$

2014

5,857,216$(53,087)
1,000,000
6,804,129

441,216
5,416,000$

5,857,216

CARA’s accounting policy is to recognize transfers between levels of the fair value hierarchy on
the date of the event or change in circumstances that caused the transfer. There were no significant
transfers into or out of Level 1, 2, or 3 for the years ended September 30, 2015 and 2014.

(4)

Operating Revenues
A summary of operating revenues for the years ended September 30, 2015 and 2014 follows:
2015
University of California - observatory operations (note 1)
National Aeronautics and Space Administration
W. M. Keck Foundation
National Science Foundation
Gordon and Betty Moore Foundation
Association for Universities for Research in Astronomy
Other
Total operating revenues

12

2014

$

14,002,090
3,847,108
751,304
527,146
620,921318,836
2,051,578$

14,229,688
3,707,620
339,027
729,290
4,976
985,494
1,667,941$

22,118,983$

21,664,036

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2015 and 2014

(5)

Property and Equipment
A summary of property and equipment at September 30, 2015 and 2014 follows:
2015
Observatory instrumentation and adaptive optics:
Property and equipment
Construction in progress$

91,337,462
24,628,054

2014$

92,238,852
22,043,877

115,965,516

114,282,729

Observatory infrastructure:
Property and equipment

4,082,075

3,742,948

Vehicles and equipment

5,259,563

4,960,493

125,307,154(70,997,685)

122,986,170(68,657,337)

Less accumulated depreciation
Total property and equipment, net$

54,309,469$

54,328,833

Depreciation expense amounted to $5,962,883 and $6,177,720 in 2015 and 2014, respectively.

(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, 2015 and2014. CARA is no longer subject to U.S. federal income tax examinations by tax authorities foryears before 2012.

13

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2015 and 2014(7)

Related-Party Transactions
Caltech and UC provide various instrument and adaptive optics development services to CARA.
During fiscal years 2015 and 2014, total expenditures for these services charged to CARA were
$1,863,090 and $2,273,089, respectively, by Caltech, and $487,899 and $384,084, 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, and ongoing installation of a spare secondary mirror. During fiscal years 2015 and 2014,
total expenditures for these projects was $3,040,642 and $3,286,304, respectively.

(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, 2015 follows:
Operations
Instrumentation
Laser guide star and adaptive optics systems
Total commitments(9)$949,855
198,313
109,051$

1,257,219

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 2015 and 2014, CARA received contributions of $239,596 and $161,606,
respectively, which were board-designated for the Director’s Fund. At September 30, 2015 and2014, respectively, the fund totaled $593,634 and $354,038.

14

CALIFORNIA ASSOCIATION FOR RESEARCH IN ASTRONOMY
DBA W. M. KECK OBSERVATORY(A Nonprofit California Public Benefit Corporation)
Notes to Financial Statements
September 30, 2015 and 2014(10) Temporarily Restricted Net Assets
In 2015 and 2014, CARA received restricted contributions for various instrumentation and adaptive
optics technology development and Advancement Office initiatives totaling $650,926 and$216,620, respectively. In 2015 and 2014, $597,606 and $433,352, respectively, of temporarily
restricted net assets were released from restriction in satisfaction of equipment acquisition andprogram restrictions. At September 30, 2015 and 2014, $488,574 and $435,254, respectively, wasavailable for these activities.

(11) Deferred Compensation
403(b)Plan
CARA 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 is defined as an employee regularly scheduled to work at least 20 hours per week
subject to the appropriate waiting period and employment classification as defined in the Plan.
CARA is required to make contributions to the Plan at various percentages of base salarydepending on the participant’s age and grade. Contributions to the Plan amounted to $862,380 and$933,633 for fiscal years 2015 and 2014, 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 withthe employee immediately. CARA makes no contributions to the plan. The 457(b) plan assets andrelated liability obligation to participants of $145,718 and $115,886 as of September 30, 2015 and
September 30, 20l4, respectively, are included within other assets and accounts payable andaccrued expenses in the accompanying statements of financial position.

15