**Registered number: 00825036 Charity number: 313164**
# **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2022**
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and Administrative Details of the Company, its Trustees and Advisers**|1 - 2|
|**Trustees' Report**|3 - 11|
|**Independent Auditors' Report on the Financial Statements**|12 - 15|
|**Statement of Financial Activities**|16|
|**Balance Sheet**|17 - 18|
|**Statement of Cash Flows**|19|
|**Notes to the Financial Statements**|20 - 42|
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022**
|**Trustees**|David Bogle, Trustee|
|---|---|
||Roger Eccleston, Trustee|
||Susan Fleet, Trustee|
||Janet Juillerat, Trustee|
||David Oswell, Chair|
||Gabriel Silberman, Trustee|
||Astrid Wissenburg, Trustee|
|**Company registered**
**number**
00825036
**Charity registered**
**number**
313164
**Registered office**
22 Signet Court
Swan Road
Cambridge
CB5 8LA
**Chief executive officer**
Clare Viney
**Independent auditors**
Peters Elworthy & Moore
Chartered Accountants
Salisbury House
Station Road
Cambridge
CB1 2LA
**Bankers**
HSBC Bank Plc
St Johns Innovation Park
Cambridge
CB4 0DS
**Solicitors**
Farrer & Co
66 Lincoln's Inn Fields
London
WC2A 3LH
**Legal advisors**
Greenwoods
Compass House
Vision Park
Histon
Cambridge
CB24 9AD
**Investment managers**
Westminster Wealth Management
3rd Floor Reception
Chronical House
72-78 Fleet Street
London
EC4Y 1HY||
Page 1
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED**
**(A Company Limited by Guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Actuary**
H&C Consulting Actuaries LLP Bolan House 19 Front Street Acomb York YO24 3BW
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
The Trustees present their annual report together with the audited financial statements of the Company for the year 1 April 2021 to 31 March 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **OBJECTIVES AND ACTIVITIES**
## **a. Policies and objectives**
CRAC provides research, intelligence and innovation services for all those who support the career development of people of all ages and in all sectors.
We work in partnership with government agencies, education providers and organisations, employers and professional bodies.
CRAC’s aim is to encourage and support career learning and active career development at all ages, to help people make well-informed career decisions and manage their careers positively.
The Trustees confirm that they have complied with the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the Charity.
The Charity Commission in its ‘Charities and Public Benefit’ Guidance states that there are two key principles to be met in order to show that an organisation’s aims are for the public benefit: first, there must be an identifiable benefit and, secondly, that the benefit must be to the public or a section of the public. The Trustees are satisfied that the aims and objectives of the charity, and the activities reported on to achieve those aims, meet these principles.
CRAC exists to support individuals in their career development and care related learning. Our activities contribute to public benefit by helping individuals to achieve and realise their full potential, which impacts positively on their personal economic and social health and wellbeing which, in turn, contributes to wider societal and economic benefit. Our recent activities and achievements are summarised in the review of activities below. We also set out our plans for next year explaining how we aim to further develop our services and continue to deliver the public benefit we provide.
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance**
## **a. Review of activities**
CRAC has delivered a range of activities to support its high level objectives providing research, intelligence and innovation for all those who support career development for people of all ages and in all sectors. COVID-19 and Brexit continued to bring lots of uncertainty, but CRAC reassured clients and the community by focusing on priorities and providing a space for knowledge exchange and practice sharing online. The CRAC/Vitae offices were open to staff for essential purposes (as per Government guidance), all staff worked in a hybrid way throughout the whole year with seamless access to our secure and confidential remote working infrastructure. Trustees and Senior Leadership Team monitored the situation via regular meetings and communication to staff, and engagement with clients, stakeholders and the wider community.
This year we worked in partnership with government agencies, education organisations and providers, and employers, academies and professional bodies. We continue to develop and deliver activities and programmes for researchers (who are in higher education and public research institutes) under the Vitae name in addition to certain activities under the CRAC brand itself.
Vitae is the global leader in supporting the professional development of researchers, experienced in working with higher education institutions as they strive for research excellence, innovation and impact. Vitae membership enables over 200 organisations with a stake in realising the potential of researchers to build capacity in developing excellent researchers, bringing benefits to research outputs, innovation, society and the economy. Researcher development is at the heart of improving research culture; bringing together wellbeing, ethics and integrity, leadership, and equality, diversity and inclusion to create an environment conducive to successful research.
In response to discussions at the CRAC Board and Senior Management Team (SMT), and the impact of the COVID-19 pandemic and Brexit, during 2021/22 we have been assessing the longer-term strategic direction of the organisation. Broadly, the values and direction of the organisation will not change markedly but the balance and range of activity should evolve, taking into account changes to career and professional development, and research and funding landscapes. The intention has been informed by the last 18 months where we have had to pivot our offering and build on existing strengths, reputation and expertise, and leverage these where they will most usefully be deployed.
Strategic work was underpinned by the Vitae researcher development strategy, provision and profession survey; a consultation with the community, including beyond membership and all those with a role or interest in researcher development, and was disseminated widely over social media, through email networks, and personal contacts.
The diversification of Vitae offerings include; consolidation and development of the existing Membership offer to form a number of differentiated offerings and the development of a new capacity building programme based on the current offer. Further detail and work will be needed to implement the strategy and agreed to investment in staff resource and IT. Work to engage and retain Vitae UK members has been successful and membership subscription renewals remain ~95% despite the significant impact of the last 18 months to the higher education sector. The vast majority of events, training and offering is still online, although we have seen an increase in requests for in-person training.
Activities around the evolution of the Researcher Development Framework (RDF) have progressed, with several projects involving contextual adaptations of the framework, this is important to enable the development of the researchers of the future and the interconnectedness of research and innovation systems.
The 2021 Vitae Connections online event was incredibly successful with a slight increase in registrations compared with the previous year.
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance (CONTINUED)**
Vitae continues to influence Government policy development including the People and Culture Strategy, Bureaucracy Review and New Deal for Post Graduate Researchers. With the Researcher Development Concordat Strategy Group (CSG), Vitae launched the researcher development good practice sharing website and engagement activity. CEDARS (Culture, Employment and Development of Academic Researchers) Survey results received significant interest from the community and policy makers and our first international survey in Australia was launched in November.
The accumulation of research and intelligence continues to underpin much of the work that informs Vitae’s programme of activities, the advancement of which has often positioned Vitae at the forefront in realising and informing trends in the sector.
We continue to build on our international reputation and work to develop and train researchers; providing expertise, research and consultancy in this area, across a growing international footprint. Outside the UK, we continued to work with partners in Australia, New Zealand, Ireland, Japan, Poland and Spain on a range of projects to develop and deliver high impact professional development interventions to support researcher careers and build research capacity. A number of partnerships with European institutions were developed in order to submit bids for funding from the European Commission, embedding researcher development in research training schemes or for discrete career or development related activity.
We are at the heart of a community of 40,000 researchers who access our expert resources including programmes for researchers and research leaders and have added to the extensive information and resources that are available online to those with Vitae membership.
In addition, CRAC research and evaluation activity has continued to be focused on a range of themes which relate to our strategic interests, for a wide range of clients who support career development. Our areas of specialism include career progression and transitions, career tracking, diversity and inclusion, and STEM and research careers. Many of our evaluation and impact studies relate to Vitae’s sphere of interest, i.e. researchers and the research environment and add to the growing evidence base on research careers. Specific projects have been undertaken during 2021/22 included:
- Doctoral provision – a substantial engagement project to help the Arts and Humanities Research Council (AHRC) consider future options for its support of doctoral education.
- Evaluation of fellowship programmes - evaluations ranging in level from engineering undergraduates to the Royal Society’s Research Professorships.
- Longer-term evaluation of funding programmes for the Office for Students (improving outcomes for local graduates; development of conversion MSc courses in data science and artificial intelligence; HE short course trials) and BEIS (COVID-19 response programmes).
- Thematic studies – insights into career issues for young barristers; showcasing approaches to development of data skills.
- Studies using systematic and administrative data – establishing diversity profiles for key groups (such as those eligible for fellowship programmes); outcomes for doctoral graduates.
- Development of content for a new STEM research careers resource for the Royal Society.
CRAC continues to play a leading role in the Career Development Policy Group (CDPG) which brings together a range of organisations which all believe it is essential that citizens have an opportunity to access support in their careers. CRAC was involved in launching a ‘Career Guidance Guarantee’ in October 2021. The CDPG believes that England should further develop its career guidance system with everyone able to benefit from a government-backed Career Guidance Guarantee. The CPDG have published a summary of the three virtual roundtables recently hosted, discussing the career guidance system in England.
All staff continue to work in a hybrid way, attending the Cambridge office on a COVID-19 secure basis and as per Government guidance. The Senior Leadership Team are monitoring and reviewing this position closely.
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Achievements and performance (CONTINUED)**
## **Financial review**
## **a. Going concern**
The Charity closely monitors its contracts and produces regular forecasts of income and expenditure to ensure that costs are maintained in line with income. Regular reviews are carried out by the Trustees, and they have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **b. Financial review**
Full details of income and expenditure are set out in the statement of financial activities (SOFA) on page 16.
During the year, total incoming resources were £1,166,202 compared with £1,152,309 in the year ended 31 March 2021. The income profile has been changing in recent years due to the transition from much of CRAC’s researcher development work being funded by a single Research Councils UK contract to more diversified income streams to secure long term financial stability. These include a membership scheme for institutions, contract work in the UK for a variety of research funders and substantial growth of delivery of training, research and consultancy in Europe and the rest of the world. Vitae membership was launched in January 2015; by March 2022 165 organisations had committed to membership for a period of one to three years.
The total resources expended were £1,162,792 (£1,191,022 in 2021). The expenditure in part relates to contracts and therefore fluctuates in line with the income from projects and reflect the changes in the nature in delivery of our products and services eg virtual/hybrid/physical.
The level of total reserves for the Charity on 31 March 2022 was £819,865 (2021: £390,385) and free reserves, being the total unrestricted funds less net book value of tangible fixed assets, were £814,136 (2021: £377,739). One additional payment of £25k has been made to CRAC’s defined benefit Pension Scheme this year, as recorded in note 21. The current valuation for the Scheme is a deficit of £743,000 (2021: £1,133,000), despite the Scheme being fully funded following the triennial valuation in March 2019. The reduction in the pension accounting deficit of £390,000 accounts for most of the £429,480 increase in reserves.
In April 2014 the Pension Scheme secured a ‘buyin’ insurance policy which delivers income to the Scheme guaranteed to correspond to the level of benefit payments required for its pensioner members, which reduces the total level of liability in the Scheme.
The Charity and Pension Scheme Trustees will review the Scheme’s funding position once the next triennial valuation is available in October 2022.
There were no charitable or political contributions made during the year.
The charity does not raise funds directly from the public.
## **c. Risk management and principal risks**
Major risks to which the Charity is exposed have been reviewed and systems established to mitigate those risks. Responsibility for management of risk is overseen by the Trustees at their Board meetings. The Board regularly considers the risks (including financial and reputational risks) which may affect the activities of the organisation,
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
assesses the impact of those risks and ensures that appropriate controls are in place, including:
- comprehensive strategic planning, budgeting and management accounting
- detailed review by the Board (or those delegated by the Board) of significant capital projects or new ventures before they are approved. Internal approval by senior management of all new projects irrespective of size
- clear authorisation approval levels and segregation of duties
- appropriate contractual arrangements for all work undertaken
The Board, like many charities, is concerned about the effects of COVID-19 and BREXIT, in terms of policy changes and the effect an economic downturn may have on CRAC’s ability to obtain funding. It continues to monitor CRAC’s finances and CRAC’s contingent strategic plan closely. The risk register is continually updated and presented at each Board meeting.
A number of key current risks are below:
|**Risk**|**Impact**|**Mitigation**|
|---|---|---|
|Government and other
stakeholders shift priorities
resulting in weakened support
for careers work|CRAC struggles to
maintain activity, or
ceases it|Monitor funding and government priorities
closely especially post-pandemic and in
light of economy and political changes in
UK. Review regularly CRAC's ability to
deliver its charitable remit. Continue to
expand funding base beyond government
funding to other non-government funders
and organisations globally. Keep in close
touch with key clients and gauge likely
impact early|
|Competitor organisations offer
a more compelling package of
services/products to
universities, or European
initiatives offer 'free at point of
use' services to institutions|CRAC's Vitae
Programme loses
buy-in; reduction of
demand for products
and services|Agreed revised strategic direction and
diversification of Vitae programme and
offerings. Monitor competitor products and
emerging offers. Continue to innovate and
review products to ensure relevance and
needs of offering|
|Lack of resources, capability,
speed or agility to capitalise
on potential future business
opportunities and at the
required levels to cover staff
costs and other overheads|CRAC is not able to
secure a sustainable
stream of business
and is therefore not
able to meet its
charitable objectives
and/or financial
overheads|The Executive Team focus continues to be
on business development and staff
responsiveness. Forward planning sets
clarity about direction to ensure we have
appropriate resource and capacity to meet
demand. Closely monitoring staff retention
and proactive talent management|
## **d. Investment policy and performance**
The investments of the Charity are the responsibility of the Board after taking appropriate advice, having due regard for charity law. Investment manager Westminster Wealth, manages the funds in a range of asset classes, with the aim to minimise market volatility and to preserve capital. The overall objective is to achieve capital preservation while producing a tangible dividend yield. It also aims to achieve positive returns which are significantly greater than the return on cash. There are no specific restrictions as to the nature of the investments of the Charity. The Board reviews the investment performance on a quarterly basis. In the year ended 31 March 2022, investments made a gain of £39,070 compared with a gain of £238,878 in 2021.
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **e. Reserves policy**
The Trustees have reviewed the reserves policy in the light of their consideration of any major risks to the organisation. The Trustees consider that free reserves are necessary to meet current commitments when income streams are unpredictable. These commitments could include committed direct programme expenditure, staff costs and other essential overheads such as premises. The Trustees also need to ensure that as a result of sudden loss of income or exceptional expenditure there are sufficient funds for an orderly winding up in the event that the charity ceases operations.
The total reserves for the Charity at 31 March 2022 were £819,865 (2021: £390,385), including free reserves of £814,136 (2021: £377,739); this excludes assets tied up as fixed assets, designated funds and after FRS 102 pension liability calculation but includes investments. The Trustees' policy is to have sufficient reserves to cover charitable expenditure for four months (which roughly equates to between £350,000 and £400,000). The current level of free reserves is above this range due to a significant reduction in the pension liability of £390,000 during the year. In the last three years the pension liability changed significantly (2020: £874,000, 2021: £1,133,000 and 2022: £743,000). Therefore the trustees consider the current level of reserves to be appropriate.
## **f. Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the objectives of the Charity and which have not been designated for other purposes.
Designated funds have been established to represent the monies invested in tangible fixed assets net of depreciation.
Restricted funds are exclusively related to the grants received from the European Commission Horizon 2020 Research and Innovation Framework Programme for a specific agreed programme of work. The project finished March 2021 (namely the Responsible Research and Innovation Networked Globally (RRING)).
## **Structure, governance and management**
## **a. Constitution**
Careers Research and Advisory Centre Limited (known as CRAC) is a private company limited by guarantee incorporated in the UK on 29th October 1964. It is a Charity registered in England and Wales. The company is governed by a Memorandum and Articles of Association. This was amended in April 2009 to remove the requirement to hold future Annual General Meetings. The Trustees took the view that as the main business of the AGM was to approve the accounts, the accounts could equally be placed before the Trustees at an appropriate Board meeting.
Trustees are Directors for the purpose of company law and Trustees for the purpose of charity law. In the event of the Charity being wound up, Trustees as set out on page 1 are required to contribute an amount not exceeding £10.
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Structure, governance and management (CONTINUED)**
## **b. Methods of appointment or election of Trustees**
As the previous Chair had indicated her intent to step down but remain on the Board until the end of her term of office, a Board skills audit was undertaken, and a role description devised for the role of Chair. David Oswell was appointed in March 2022 with the full support of fellow Trustees.
An induction pack for new Trustees has been established for a number of years. On appointment each new member is given an induction pack containing a range of information such as the Memorandum and Articles of Association, statutory accounts and key meeting dates. A series of meetings is also arranged to introduce them into the organisation. The Trustees meet at least three times a year. Detailed financial and management matters and day to day management of the Charity are delegated to the Chief Executive and staff.
Trustees receive relevant training both on joining the Board and on an ongoing basis.
## **c. Remuneration policy for key management personnel**
The principles and framework for the key management personnel disclosure of the Executive team were approved by the Board, which includes the base salary and benefits which form part of the remuneration package. The responsibility for determining pay for the Director and the CEO of the Charity is delegated to the Remuneration Committee who set the pay by monitoring performance and assessing remuneration trends across the sector.
## **Plans for future periods**
CRAC’s strategic aims for 2022/23 and beyond continue to focus on supporting the career development of individuals, principally through provision of innovation, expertise and research to those with whom they interact in relation to career learning during their education and employment.
Internal work is underway to review the strategic direction of the research, evaluation and intelligence activity across the organisation. This will be completed in early 2023.
In March 2022 the CRAC Board agreed a revised proposed Vitae strategic direction and aims for the organisation to 2025, Vitae will play a continued global role in advocating for a world in which researchers are valued and supported to realise their potential. This matters because when researchers realise their potential, individuals grow, universities thrive, employers prosper and society benefits. There will be a specific focus on:
- Redefining what makes a successful researcher
- Championing a healthy research environment and culture
- Promoting the value of researchers including understanding more about the careers of those with research qualifications
- Greater focus on researcher developers
- Maintain Vitae’s UK position while expanding impact internationally through diversification of Vitae offers
- Further develop RDF-related partnerships and projects in the UK and internationally
In 2022/23 we will begin two Horizon Europe funded projects; Open and Universal Science (OPUS) and Sustainable Careers for Researcher Empowerment (SECURE) (we will claim back funds via the UK Government Guarantee scheme implemented by UKRI). Both consortia will give Vitae a great opportunity to engage more widely on these issues across Europe and beyond, connecting to existing UK good practice and policy. Through the Vitae Programme we will continue to work collaboratively with higher education institutions, research funders and other key organisations, and in other formal or informal partnerships, working with institutions as they strive for research excellence, innovation and impact. Work in the UK will be complemented
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
## **Plans for future periods (CONTINUED)**
by our international reach, enabling all those working in research to benefit from improved career development and in turn building global research capacity.
In other career sectors, CRAC will continue to provide research, evaluation, intelligence and innovation services on themes of strategic interest and continue an active role in the Career Development Policy Group.
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
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**THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022**
Approved by order of the members of the board of Trustees and signed on their behalf by:
## **David Oswell Chair of Trustees**
31 October 2022 Date:
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED**
## **Opinion**
We have audited the financial statements of The Careers Research and Advisory Centre (CRAC) Limited (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (CONTINUED)**
## **Other information**
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
## **Responsibilities of trustees**
As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
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## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (CONTINUED)**
concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditors' responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence,
- capabilities and skills to identify or recognise non compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the charitable company through discussions with trustees and other management, and from our knowledge of charity and company law and experience;
- • we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Companies Act 2006, Charities Act 2011 and taxation legislation;
- in addition, we considered provisions of other laws and regulations which do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity's ability to operate
- or to avoid material penalties;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management reviewing the minutes of trustees’ meetings and inspecting legal correspondence.
We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we;
- performed analytical procedures to identify any unusual or unexpected relationships;
- we designed procedures to identify unexpected and unusual journal entries and performed testing to confirm the validity of such postings;
- we evaluated the assumptions and judgements used by management within significant accounting estimates and assessed whether these indicated evidence of management bias.
In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but were not limited to:
Page 14
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (CONTINUED)**
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing any correspondence with relevant regulators such as the Charity Commission.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non compliance. Auditing standards also limit the audit procedures required to identify non compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
**Nikki Loan (Senior Statutory Auditor)** for and on behalf of
## **Peters Elworthy & Moore**
Chartered Accountants Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA
Date: 1 November 2022
Page 15
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED**
## **(A Company Limited by Guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022**
|**Note**
**INCOME FROM:**
Donations and legacies
4
Charitable activities
5
Investments
6
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds
7
Charitable activities
8
**TOTAL EXPENDITURE**
**NET INCOME/(EXPENDITURE)**
**BEFORE NET GAINS ON**
**INVESTMENTS**
Net gains on investments
13
**NET INCOME**
Transfers between funds
16
**NET MOVEMENT IN FUNDS BEFORE**
**OTHER RECOGNISED**
**GAINS/(LOSSES)**
**OTHER RECOGNISED**
**GAINS/(LOSSES):**
Actuarial gains/(losses) on defined
benefit pension schemes
21
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
Total funds brought forward
Net movement in funds
**TOTAL FUNDS CARRIED FORWARD**|**Restricted**
**funds**
**2022**
**£**
**9,835**
**-**
**-**
**9,835**
**-**
**-**
**-**
**9,835**
**-**
**9,835**
**(9,835)**
**-**
**-**
**-**
**-**
**-**
**-**|**Unrestricted**
**funds**
**2022**
**£**
**-**
**1,144,316**
**12,051**
**1,156,367**
**17,408**
**1,145,384**
**1,162,792**
**(6,425)**
**39,070**
**32,645**
**9,835**
**42,480**
**387,000**
**429,480**
**390,385**
**429,480**
**819,865**|**Total**
**funds**
**2022**
**£**
**9,835**
**1,144,316**
**12,051**
**1,166,202**
**17,408**
**1,145,384**
**1,162,792**
**3,410**
**39,070**
**42,480**
**-**
**42,480**
**387,000**
**429,480**
**390,385**
**429,480**
**819,865**|Total
funds
2021
£
10,591
1,128,106
13,612
1,152,309
15,609
1,175,413
1,191,022
(38,713)
238,878
200,165
-
200,165
(265,000)
(64,835)
455,220
(64,835)
390,385|
|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 20 to 42 form part of these financial statements.
Page 16
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00825036**
## **BALANCE SHEET AS AT 31 MARCH 2022**
|**Note**
**FIXED ASSETS**
Tangible assets
12
Investments
13
**CURRENT ASSETS**
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS EXCLUDING PENSION**
**LIABILITY**
Defined benefit pension scheme liability
21
**TOTAL NET ASSETS**
**CHARITY FUNDS**
Restricted funds
16
**Unrestricted funds:**
Designated funds
16
General funds
16
Unrestricted funds excluding pension liability
16
Pension reserve
16
Total unrestricted funds
16
**TOTAL FUNDS**|**2022**
**£**
**273,112**
**539,754**
**812,866**
**(674,740)**
**5,729**
**1,557,136**
**1,562,865**
**(743,000)**|**2022**
**£**
**5,729**
**1,419,010**
**1,424,739**
**138,126**
**1,562,865**
**1,562,865**
**(743,000)**
**819,865**
**-**
**819,865**
**819,865**|2021
£
236,440
313,693
550,133
(424,357)
12,646
1,510,739
1,523,385
(1,133,000)|2021
£
12,646
1,384,963
1,397,609
125,776
1,523,385
1,523,385
(1,133,000)
390,385
-
390,385
390,385|
|---|---|---|---|---|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
Page 17
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED**
**(A Company Limited by Guarantee) REGISTERED NUMBER: 00825036**
**BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022**
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
**David Oswell Chair of Trustees**
Date: 31 October 2022
The notes on pages 20 to 42 form part of these financial statements.
Page 18
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED**
## **(A Company Limited by Guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022**
|**Note**
**CASH FLOWS FROM OPERATING ACTIVITIES**
Net cash used in operating activities
18
**CASH FLOWS FROM INVESTING ACTIVITIES**
Dividends, interests and rents from investments
Purchase of Investments
Disposal of Investments
**NET CASH PROVIDED BY INVESTING ACTIVITIES**
**CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR**
Cash and cash equivalents at the beginning of the year
**CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR**
19|**2022**
**£**
**208,987**
**12,051**
**(373)**
**5,396**
**17,074**
**226,061**
**313,693**
**539,754**|2021
£
(24,156)
13,612
(353)
102,469
**115,728**
**91,572**
222,121
313,693|
|---|---|---|
The notes on pages 20 to 42 form part of these financial statements
Page 19
**THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **1. GENERAL INFORMATION**
The Charity is a copmany limited by guarantee, incorporated in England and Wales (company number 825036) and a charity registered in England and Wales (charity number 313164). The Charity's registered office address is 22 Signet Court, Swanns Road, Cambridge, CB5 8LA.
## **2. ACCOUNTING POLICIES**
## **2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Careers Research and Advisory Centre (CRAC) Limited meets the definition of a public benefit entity under FRS 102.
## **2.2 GOING CONCERN**
The Trustees have considered the Charity's forecasts and projections and have taken account of pressures on income in light of the stuggling economy. After making enquiries the Trustees have concluded that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Therefore, these accounts have been prepared on the going concern basis.
The Trustees consider there are no material uncertainties about the Charity's ability to continue as a going concern.
Page 20
**THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. ACCOUNTING POLICIES (CONTINUED)**
## **2.3 INCOME**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The Charity's policy is to recognise contract funding for activities which fall within its charitable objects as unrestricted, even though in certain circumstances minor restrictions exist, due to the complexity of the conditions and the delivery of the projects. This income is treated as unrestricted and the balances received in advance for the following period are treated as deferred income as it is used to match the project costs.
Income received in advance of the provisions of a specified service or activity is deferred until the criteria for income recognition is met.
Subscriptions are accounted for on an accruals basis. Subscriptions relating to a later period are therefore carried forward to that period and treated as deferred income in the balance sheet.
Investment income is recognised on a receivable basis once the amounts can be measured reliably.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
## **2.4 EXPENDITURE**
Expenditure is accounted for on an accruals basis where there is a legal and constructive obligation to make a payment to a third party and the amount of the obligation can be measured reliably. Expenditure is allocated to the appropriate headings relevant to the charitable activities. Direct charitable expenditure includes all expenditure related to the objects of the Charity. Support costs are separately identified under note 9 and are also costs incurred in acheiving the Charity's objects. Direct costs are allocated to the programmes on an actual basis. Overhead and support costs such as premises and related staff costs are allocated on the basis of income received.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
## **2.5 FOREIGN CURRENCIES**
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.
Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the Statement of Financial Activities.
Page 21
**THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. ACCOUNTING POLICIES (CONTINUED)**
## **2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION**
Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
|Fixtures and fittings|-|20% Straight line|
|---|---|---|
|Office equipment|-|33% Straight line|
|Computer equipment|-|25% Straight line|
## **2.7 INVESTMENTS**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.
## **2.8 DEBTORS**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.9 CASH AT BANK AND IN HAND**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.10 LIABILITIES**
Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
Page 22
**THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. ACCOUNTING POLICIES (CONTINUED)**
## **2.11 FINANCIAL INSTRUMENTS**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.12 OPERATING LEASES**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.
## **2.13 PENSIONS**
The Charity operates a group personal pension scheme (defined contribution) managed by Aviva. The costs are charged to the SOFA as they become payable. Details of the scheme are set out in note 21 to the accounts.
The Charity also operates a defined benefit scheme which was closed to future accrual in September 2007 and staff in that scheme then transferred to the Aviva scheme. The scheme is currently fully paid on an actuarial basis where CRAC with agreement with the pension scheme Trustees made a payment in 2014 to eliminate the deficit. The level of future contributions will change based on the triennial actuarial valuations. CRAC contributed an additional £25,000 during the year ended 31 March 2022 (2021: £25,000). The scheme is a defined benefit scheme in accordance with section 28 of the FRS 102. Service costs, curtailments, settlement gains and losses, net financial returns and remeasurement gains and loss are included in the Statement of Financial Activities in the year to which they relate.
Changes in assets and liabilities of the scheme in the year are disclosed and allocated as follows:
Changes relating to current or past service costs and gains and losses on settlements and curtailments and pension finance costs arising from changes in the net of the interest costs and expected return on assets, are allocated to the relevant activity heading based on staff costs of employees within the scheme.
Pension finance charges arising from similar changes are recognised as outgoing resources.
Remeasurement gains and losses arising are recognised as other recognised gains and losses.
Page 23
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. ACCOUNTING POLICIES (CONTINUED)**
## **2.14 FUND ACCOUNTING**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Critical areas of judgment:
## _Pensions:_
The principal assumptions used to calculate the liabilities in the defined benefit pension scheme are those as set out in note 21. The assumptions are sensitive to changes in market conditions. For example, a reduction in the discount rate by 0.25% per annum would increase the deficit by £181,000. The effect of increasing price inflation by 0.25% per annum would be to increase the deficit by £147,000 and the effect of reducing the probability of death each year by 10% would be to increase the deficit by £79,000.
Page 24
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **4. INCOME FROM DONATIONS AND LEGACIES**
|**Restricted**
**funds**
**2022**
**£**
Grants
9,835
Restricted
funds
2021
£
Grants
10,591
**5.**
**INCOME FROM CHARITABLE ACTIVITIES**
**Unrestricted**
**funds**
**2022**
**£**
Informing policy
359,568
Enhancing provision
393,146
Enabling individuals
391,602
**TOTAL 2022**
1,144,316
Unrestricted
funds
2021
£
Informing policy
312,353
Enhancing provision
349,296
Enabling individuals
466,457
TOTAL 2021
1,128,106|**Total**
**funds**
**2022**
**£**
**9,835**|
|---|---|
||Total
funds
2021
£
10,591|
||**Total**
**funds**
**2022**
**£**
**359,568**
**393,146**
**391,602**|
||**1,144,316**|
||Total
funds
2021
£
312,353
349,296
466,457|
||1,128,106|
Page 25
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **6. INVESTMENT INCOME**
|**Unrestricted**
**funds**
**2022**
**£**
Dividend income (from UK Listed Investments)
12,013
Bank interest
38
**TOTAL 2022**
12,051
Unrestricted
funds
2021
£
Dividend income (from UK Listed investments)
13,493
Bank interest
119
TOTAL 2021
13,612|**Total**
**funds**
**2022**
**£**
**12,013**
**38**|
|---|---|
||**12,051**|
||Total
funds
2021
£
13,493
119|
||13,612|
Page 26
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **7. INVESTMENT MANAGEMENT COSTS**
|**Unrestricted**
**funds**
**2022**
**£**
Investment management fees
17,408
**TOTAL 2022**
17,408
Unrestricted
funds
2021
£
Investment management fees
15,609
TOTAL 2021
15,609|**Total**
**funds**
**2022**
**£**
**17,408**|
|---|---|
||**17,408**|
||Total
funds
2021
£
15,609|
||15,609|
## **8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES**
## **Summary by fund type**
|**Unrestricted**
**funds**
**2022**
**£**
Informing policy
346,438
Enhancing provision
441,634
Enabling individuals
357,312
1,145,384|**Total**
**2022**
**£**
**346,438**
**441,634**
**357,312**|
|---|---|
||**1,145,384**|
Page 27
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES (CONTINUED)**
## **Summary by fund type (continued)**
|Informing policy
Enhancing provision
Enabling individuals|Restricted
funds
2021
£
-
50,098
-
50,098|Unrestricted
funds
2021
£
293,954
357,477
473,884
1,125,315|Total
2021
£
293,954
407,575
473,884|
|---|---|---|---|
||||1,175,413|
## **9. ANALYSIS OF EXPENDITURE BY ACTIVITIES**
|Informing policy
Enhancing provision
Enabling individuals
**TOTAL 2022**
Informing policy
Enhancing provision
Enabling individuals
TOTAL 2021|**Activities**
**undertaken**
**directly**
**2022**
**Support and**
**governance**
**costs**
**2022**
**£**
**£**
242,876
103,562
324,708
116,926
243,727
113,585
811,311
334,073
Activities
undertaken
directly
2021
Support and
governance
costs
2021
£
£
210,868
83,086
315,587
91,988
352,222
121,662
878,677
296,736|**Total**
**funds**
**2022**
**£**
**346,438**
**441,634**
**357,312**|
|---|---|---|
|||**1,145,384**|
|||Total
funds
2021
£
293,954
407,575
473,884|
|||1,175,413|
Page 28
**THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)**
## **ANALYSIS OF DIRECT COSTS**
|Direct staff costs
Direct costs
**TOTAL 2022**
Direct staff costs
Direct costs
TOTAL 2021
**ANALYSIS OF SUPPORT COSTS**
Pension finance costs
Staff costs
Premises and other costs
Governance costs
**TOTAL 2022**|**Informing**
**policy**
**2022**
**£**
150,992
91,884
242,876
Informing
policy
2021
£
165,159
45,709
210,868
**Informing**
**policy**
**2022**
**£**
6,820
36,654
55,113
4,975
103,562|**Enhancing**
**provision**
**2022**
**£**
252,442
72,266
324,708
Enhancing
provision
2021
£
248,531
67,056
315,587
**Enhancing**
**provision**
**2022**
**£**
7,700
41,384
62,224
5,618
116,926|**Enabling**
**individuals**
**2022**
**£**
152,476
91,251
243,727
Enabling
individuals
2021
£
164,381
187,841
352,222
**Enabling**
**individuals**
**2022**
**£**
7,480
40,202
60,446
5,457
113,585|**Total**
**funds**
**2022**
**£**
**555,910**
**255,401**|
|---|---|---|---|---|
|||||**811,311**|
|||||Total
funds
2021
£
578,071
300,606|
|||||878,677|
|||||**Total**
**funds**
**2022**
**£**
**22,000**
**118,240**
**177,783**
**16,050**|
|||||**334,073**|
Page 29
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)**
## **ANALYSIS OF SUPPORT COSTS (continued)**
|Informing
policy
2021
Enhancing
provision
2021
Enabling
individuals
2021
£
£
£
Pension finance costs
5,320
5,890
7,790
Staff costs
36,861
40,810
53,974
Premises and other costs
38,375
42,486
56,192
Governance costs
2,530
2,802
3,706
TOTAL 2021
83,086
91,988
121,662
**10.**
**AUDITORS' REMUNERATION**
**2022**
**£**
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
**11,000**
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above
**2,650**
**11.**
**STAFF COSTS, KEY MANAGEMENT PERSONNEL AND TRUSTEES' REMUNERATION**
**EXPENSES**|Total
funds
2021
£
19,000
131,645
137,053
9,038|
|---|---|
||296,736|
||2021
£
11,500
2,175|
||**AND**|
|Wages and salaries
Social security costs
Pension costs|**2022**
**£**
**541,526**
**52,653**
**79,971**
**674,150**|2021
£
574,920
63,660
71,136|
|---|---|---|
||||
|||709,716|
Page 30
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **11. STAFF COSTS, KEY MANAGEMENT PERSONNEL AND TRUSTEES' REMUNERATION AND EXPENSES (CONTINUED)**
The average number of persons employed by the Company during the year was as follows:
|Direct charitable activities
Support|**2022**
**No.**
**11**
**3**
**14**|2021
No.
11
3|
|---|---|---|
||||
|||14|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**2022**|2021|
|---|---|---|---|
|||**No.**|No.|
|In the band £80,001|- £90,000|**2**|1|
|In the band £90,001|- £100,000|**-**|1|
Employer pension costs paid to defined contribution schemes in respect of the above 2 staff were £15,839 (2021: 2 staff paid £18,100). The number of staff above that are deferred members and accruing benefits under the defined benefit scheme are Nil (2021: £nil).
The key management personnel of CRAC comprises of the members of the senior team in Director level posts. The total remuneration of the senior team, which includes benefits in kind was £198,063 (2021: £226,980).
During the year, no Trustees received any remuneration or benefit in kind (2021: £nil).
During the year, no Trustees received reimbursement of expenses or had expenses paid directly to a third party on their behalf (2021: nil).
Page 31
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **12. TANGIBLE FIXED ASSETS**
|**COST OR VALUATION**
At 1 April 2021
At 31 March 2022
**DEPRECIATION**
At 1 April 2021
Charge for the year
At 31 March 2022
**NET BOOK VALUE**
At 31 March 2022
At 31 March 2021|**Fixtures and**
**fittings**
**£**
**41,929**
**41,929**
**41,009**
**920**
**41,929**
**-**
920|**Office**
**equipment**
**£**
**4,242**
**4,242**
**4,242**
**-**
**4,242**
**-**
-|**Computer**
**equipment**
**£**
**208,376**
**208,376**
**196,650**
**5,997**
**202,647**
**5,729**
11,726|**Total**
**£**
**254,547**|
|---|---|---|---|---|
|||||**254,547**|
|||||**241,901**
**6,917**|
|||||**248,818**|
||||||
|||||**5,729**|
|||||12,646|
## **13. FIXED ASSET INVESTMENTS**
|**COST OR VALUATION**
At 1 April 2021
Additions
Revaluations
Movement in cash
AT 31 MARCH 2022|**Listed**
**investments**
**£**
**1,384,963**
**373**
**39,070**
**(5,396)**|
|---|---|
||**1,419,010**|
Page 32
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **13. FIXED ASSET INVESTMENTS (CONTINUED)**
All the fixed investments are held in the UK.
The investments of the Charity are the responsibility of the Board after taking appropriate advice, having due regard for charity law. Westminster Wealth managed the funds in a range of asset classes, with the aim to minimise market volatility and to preserve capital. The overall objective is to achieve capital preservation and produce a dividend yield. It also aims to achieve positive returns which are significantly greater than the return on cash. There are no specific restrictions as to the nature of the investments of the Charity.
## **14. DEBTORS**
|**DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Prepayments and accrued income|**2022**
**£**
**236,812**
**4,250**
**32,050**
**273,112**|2021
£
211,145
4,250
21,045|
|---|---|---|
||||
|||236,440|
## **15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income|**2022**
**£**
**56,300**
**82,838**
**65,344**
**470,258**
**674,740**|2021
£
68,888
84,048
28,611
242,810|
|---|---|---|
||||
|||424,357|
Page 33
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
|Deferred income at 1 April 2021
Resources deferred during the year
Amounts released from previous periods|**2022**
**£**
**196,287**
**340,251**
**(160,716)**
**375,822**|2021
£
255,757
196,287
(255,757)
196,287|
|---|---|---|
Deferred income comprises membership income of £267,270 (2021 - £133,513), conference income £25,424 (£20,975) and subscription income £83,128 (2021 - £41,799)
Page 34
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **16. STATEMENT OF FUNDS**
## **STATEMENT OF FUNDS - CURRENT YEAR**
|
**UNRESTRICTED**
**FUNDS**
**DESIGNATED**
**FUNDS**
Designated Funds -
all funds
**GENERAL FUNDS**
General Funds - all
funds
Pension reserve
**TOTAL**
**UNRESTRICTED**
**FUNDS**
**RESTRICTED**
**FUNDS**
RRING Project
**TOTAL OF FUNDS**|**Balance at 1**
**April 2021**
**£**
**12,646**
**1,510,739**
**(1,133,000)**
**377,739**
**390,385**
**-**
**390,385**|**Income**
**£**
**-**
**1,156,367**
**-**
**1,156,367**
**1,156,367**
**9,835**
**1,166,202**|**Expenditure**
**£**
**-**
**(1,140,792)**
**(22,000)**
**(1,162,792)**
**(1,162,792)**
**-**
**(1,162,792)**|**Transfers**
**in/out**
**£**
**(6,917)**
**(8,248)**
**25,000**
**16,752**
**9,835**
**(9,835)**
**-**|**Gains/**
**(Losses)**
**£**
**-**
**39,070**
**387,000**
**426,070**
**426,070**
**-**
**426,070**|**Balance at**
**31 March**
**2022**
**£**
**5,729**
**1,557,136**
**(743,000)**
**814,136**
**819,865**
**-**
**819,865**|
|---|---|---|---|---|---|---|
Designated funds have been established to represent the monies invested in tangible fixed assets net of depreciation.
The Responsible Research and Innovation Networked Globally (RRING) fund is in relation to a grant received for a project which finished in 2021. RRING project costs charged to general funds in previous years were reallocated to restricted funds via a transfer in 2021.
In 2022, the final release of project funds was received and this was transferred to general funds to match the previously recognised costs.
Page 35
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **16. STATEMENT OF FUNDS (CONTINUED)**
## **STATEMENT OF FUNDS - PRIOR YEAR**
|**UNRESTRICTED**
**FUNDS**
**DESIGNATED**
**FUNDS**
Designated Funds
**GENERAL FUNDS**
General Funds
Pension reserve
**TOTAL**
**UNRESTRICTED**
**FUNDS**
**RESTRICTED**
**FUNDS**
RRING project
**TOTAL OF FUNDS**|Balance at
1 April 2020
£
20,330
1,244,158
(874,000)
370,158
390,488
64,732
455,220|Income
£
-
1,141,718
-
1,141,718
1,141,718
10,591
1,152,309|Expenditure
£
-
(1,121,924)
(19,000)
(1,140,924)
(1,140,924)
(50,098)
(1,191,022)|Transfers
in/out
£
(7,684)
7,909
25,000
32,909
25,225
(25,225)
-|Gains/
(Losses)
£
-
238,878
(265,000)
(26,122)
(26,122)
-
(26,122)|Balance at
31 March
2021
£
12,646|
|---|---|---|---|---|---|---|
|||||||1,510,739
(1,133,000)
377,739
390,385
-
390,385|
Page 36
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **17. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR**
|**Unrestricted**
**funds**
**2022**
**£**
Tangible fixed assets
5,729
Fixed asset investments
1,419,010
Current assets
812,866
Creditors due within one year
(674,740)
Provisions for liabilities and charges
(743,000)
**TOTAL**
819,865|**Total**
**funds**
**2022**
**£**
**5,729**
**1,419,010**
**812,866**
**(674,740)**
**(743,000)**
**819,865**|
|---|---|
|**ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR**
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Pension provision
**TOTAL**|Unrestricted
funds
2021
£
12,646
1,384,963
550,133
(424,357)
(1,133,000)
390,385|Total
funds
2021
£
12,646
1,384,963
550,133
(424,357)
(1,133,000)
390,385|
|---|---|---|
Page 37
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 18. ACTIVITIES**
|Net income for the year (as per Statement of Financial Activities)
**ADJUSTMENTS FOR:**
Depreciation charges
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Losses/(gains) on investments
Net finance cost (DB pension scheme)
Pension deficit contributions
**NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES**
**19.**
**ANALYSIS OF CASH AND CASH EQUIVALENTS**
Cash in hand
**TOTAL CASH AND CASH EQUIVALENTS**
**20.**
**ANALYSIS OF CHANGES IN NET DEBT**
**At 1 April**
**2021**
**£**
Cash at bank and in hand
**313,693**
**313,693**|**2022**
**£**
**42,480**
**6,917**
**(12,051)**
**(36,672)**
**250,383**
**(39,070)**
**22,000**
**(25,000)**
**208,987**
**2022**
**£**
**539,754**
**539,754**
**Cash flows**
**£**
**226,061**
**226,061**|2021
£
200,165
7,684
(13,612)
176,118
(149,633)
(238,878)
19,000
(25,000)
(24,156)
2021
£
313,693
313,693
**At 31 March**
**2022**
**£**
**539,754**
**539,754**|
|---|---|---|
Page 38
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **21. PENSION COMMITMENTS**
The Charity operates a defined contribution pension scheme that staff members are entitled to join once they have passed their probationary period. The scheme is managed by Aviva and contributions are paid over as they become due. CRAC contributes 10% to the scheme and staff contribute a minimum of 5%. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £49,296 (2021 - £48,065). At the year-end, £Nil (2021 - £6,142) was payable to the fund.
The Company operates a defined benefit pension scheme.
The pension scheme is a UK registered trust based pension scheme that provides defined benefits. Pension benefits are linked to the members' final pensionable salaries and service at their retirement (or date of leaving if earlier). The Trustees are responsible for running the scheme in accordance with the scheme's Trust Deed and Rules, which sets out their powers. The Trustees of the scheme are required to act in the best interests of the beneficiaries of the scheme.
There are two categories of pension scheme members:
- Deferred members: former active members of the scheme and not yet in receipt of a pension.
- • Pensioner members: in receipt of a pension.
The Trustees are required to carry out an actuarial valuation every 3 years.
The last finalised actuarial valuation of the scheme was performed by the scheme actuary for the Trustees as at 31 March 2019. This valuation revealed a funding shortfall of £299,000. The Charity has agreed to pay annual shortfall contributions of £25,000 to remove the shortfall by 31 October 2029.
The Charity paid contributions of £25,000 to the scheme during the year ended 31 March 2022 and expects to pay £25,000 to the scheme during the financial year ended 31 March 2023.
The results of the most recent formal actuarial valuation as at 31 March 2019 have been updated to 31 March 2022 by a qualified independent actuary.
Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):
||**At 31 March**|At 31 March|
|---|---|---|
||**2022**|2021|
||**%**|%|
|Discount rate|**2.8**|2|
|Future pension increases|**3**|2.7|
|Proportion of employees opting for early retirement|**3.3**|-|
|Revaluation of deferred pensons in excess of GMP|**3.15**|2.7|
|RPI inflation|**3.55**|3.2|
|CPI inflation|**3.15**|2.7|
Page 39
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **21. PENSION COMMITMENTS (CONTINUED)**
||**At 31 March**|At 31 March|
|---|---|---|
||**2022**|2021|
||**Years**|Years|
|MORTALITY RATES (IN YEARS)|||
|- for a male aged 60 now|**25.8**|27.2|
|- at 60 for a male aged 40 now|**27.3**|28.7|
|- for a female aged 60 now|**28.5**|29.2|
|- at 60 for a female aged 40 now|**30.0**|30.6|
The Company's share of the assets in the scheme was:
|Equities and other growth assets
Cash and other liquid assets
Insurance policy
**TOTAL FAIR VALUE OF ASSETS**|**At 31 March**
**2022**
**£**
**2,233,000**
**100,000**
**3,158,000**
**5,491,000**|At 31 March
2021
£
2,269,000
29,000
3,517,000
5,815,000|
|---|---|---|
The actual return on scheme assets was £-114,000 (2021 - £812,000).
The amounts recognised in the Statement of Financial Activities are as follows:
|Interest income
Interest cost
**TOTAL AMOUNT RECOGNISED IN THE STATEMENT OF FINANCIAL**
**ACTIVITIES**|**2022**
**£**
**(115,000)**
**137,000**
**22,000**|2021
£
(118,000)
137,000
19,000|
|---|---|---|
Page 40
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **21. PENSION COMMITMENTS (CONTINUED)**
Movements in the present value of the defined benefit obligation were as follows:
|**2022**
**£**
Opening defined benefit obligation
**6,948,000**
Interest cost
**137,000**
Actuarial (gains)/losses
**(616,000)**
Pensions paid
**(235,000)**
**CLOSING DEFINED BENEFIT OBLIGATION**
**6,234,000**
Movements in the fair value of the Company's share of scheme assets were as follows:
**2022**
**£**
Opening fair value of scheme assets
**5,815,000**
Interest income on scheme assets
**115,000**
Actuarial (losses)/gains
**(229,000)**
Contributions by employer
**25,000**
Pensions paid
**(235,000)**
**CLOSING FAIR VALUE OF SCHEME ASSETS**
**5,491,000**
Reconciliation to the statement of financial position
**2022**
**£**
Closing fair value of scheme assets
**5,491,000**
Closing defined benefit obligation
**(6,234,000)**
**PENSION SCHEME (DEFICIT)**
**(743,000)**|2021
£
6,096,000
137,000
959,000
(244,000)
6,948,000
2021
£
5,222,000
118,000
694,000
25,000
(244,000)
5,815,000
2021
£
5,815,000
(6,948,000)
(1,133,000)|
|---|---|
Page 41
## **THE CAREERS RESEARCH AND ADVISORY CENTRE (CRAC) LIMITED (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **22. OPERATING LEASE COMMITMENTS**
At 31 March 2022 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**2022**
**£**
**14,671**
**-**
**14,671**|2021
£
17,000
14,671|
|---|---|---|
||||
|||31,671|
## **23. MEMBERS' LIABILITY**
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £NIL for the debts and liabilities contracted before he/she ceases to be a member.
## **24. RELATED PARTY TRANSACTIONS**
There were no related party transactions during the year (2021: NIL).
Page 42