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2023-03-31-accounts

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 2023

THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 3
Trustees' Report 4 – 10
Independent Auditors' Report on the Financial Statements 11 – 13
Statement of Financial Activities 15
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 - 29

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023

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

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their annual report together with the audited financial statements of The Careers Research and Advisory Centre Limited (“the Charity” or “CRAC”) for the year 1 April 2022 to 31 March 2023. 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 Charity comply with the current statutory requirements, the requirements of the Charity'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 Charity 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

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, working in partnership with government agencies, education providers, employers and professional bodies.

CRAC’s aim is to encourage and support career learning and active career development for all ages, to help individuals 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 career 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.

Structure, governance and management

a. Constitution

The 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 Charity is governed by a Memorandum and Articles of Association.

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, the Trustees as set out on page 3 are each required to contribute an amount not exceeding £10.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

b. Trustees and management framework

Chair of Trustees David Oswell was appointed in March 2022 with the full support of fellow Trustees and Roger Eccleston and Jan Juillerat were appointed for a second term.

An induction pack for new Trustees has been established for a number of years containing a range of information such as the Memorandum and Articles of Association, latest statutory accounts and the current business plan and financials. On appointment, each new Trustee is given a copy and a series of meetings is also arranged to introduce them into the organisation. Trustees receive relevant training both on joining the Board and on an ongoing basis.

Day to day management of the Charity is delegated to the senior management team, led by the Chief Executive. The Trustees plan to meet at least three times a year as a group with the management team; there were four meetings during the year to 31 March 2023.

c. Remuneration policy for key management personnel

The principles and framework for the remuneration of the senior management team are approved by the Board. The responsibility for determining pay for the Chief Executive is delegated to the Remuneration Committee who set the pay by monitoring performance and assessing remuneration trends across the sector.

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 to those who support career development for people of all ages and in all sectors.

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.

Research, innovation and evaluation activities and services are delivered under the Informing Policy business unit (IP). The Enhancing Provision (EP) and Enabling Individuals (EI) business units broadly cover the Vitae programme including membership and related activities.

Enhancing Provision (EP) and Enabling Individuals (EI) (together “Vitae”)

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; those seeking to enhance the latter bring together wellbeing, ethics and integrity, leadership, and equality, diversity and inclusion to create an environment conducive to successful research.

In collaboration with Trustees and the community we continue to deliver against the agreed 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 are evolving, taking into account changes to career and professional development, and research and funding landscapes. The intention has been informed by the last two years where we have had to pivot our offering (in response to Covid and Brexit) and build on existing strengths, reputation and expertise, and leverage these where they will most usefully be deployed. Our strategic decision-making was underpinned by consultation with the community (including beyond membership) including those with a role or interest in researcher development, and was disseminated widely over social media, through email networks, and personal contacts.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

The diversification of Vitae offerings includes consolidation and development of the existing membership offer; critical to this is a transformation of the digital offering and ongoing development of the Researcher Development Framework (RDF), including several new projects involving contextual adaptations of the framework relating to mental health and wellbeing, equality diversity and inclusion, and open science and digital skills. Further detail and work to implement the strategy is developing at pace and an agreed investment in staff resource and IT has begun.

Work to engage and retain Vitae UK members has been successful and membership subscription renewals remain around 95%. The vast majority of events, training and offering is still online although the Vitae International Researcher Development conference in 2022 (#VitaeCon2022) was a hybrid event; in total, there were 290 participants, an overall increase from 2021.

Vitae continues to influence Government policy development including the People and Culture Strategy, Bureaucracy Review and New Deal for PGRs/Collective Talent offering. With the Researcher Development Concordat Strategy Group (CSG), Vitae has continued to support the CSG researcher development good practice sharing website and engagement activity. The multi-institution CEDARS (Culture, Employment and Development of Academic Researchers) Survey results continue to receive significant interest from the community and policy makers. An Elsevier Foundation restricted grant was received in the year and will enable us to aim to establish the right priorities for support to enhance the progression of black early career researchers.

The accumulation of policy and evidence 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, 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.

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.

Informing Policy (IP)

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. In the past year, specific projects have been undertaken during 2022/23 included:

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

A number of partnerships with European organisations resulted in two successful programmes starting; Open and Universal Science (OPUS) and Sustainable Careers for Researcher Empowerment (SECURE) (we are claiming back funds via the UK’s Horizon Europe Guarantee scheme implemented by UKRI). Both consortia have given us a great opportunity to engage more widely on these issues across Europe and beyond, connecting to existing UK practice and policy.

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 continues to advocate for a ‘Career Guidance Guarantee: (the CDPG believes that England should further develop its career guidance system with everyone able to benefit from a government-backed Career Guidance Guarantee).

b. Plans for future periods

CRAC’s strategic aims for 2023/24 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.

The strategic direction of the research, evaluation and intelligence activity across the organisation has been reviewed, with the CRAC Board and SMT evaluating options and resourcing for this activity. Broadly, we will build on current reputation and expertise of research and innovation work, but with a strategically adjusted scope – the Vitae footprint plus careers of people whose trajectories involve higher education (or have done).

The CRAC Board will continue to monitor progress against Vitae’s strategic direction as well as the highlevel aims for the organisation through to 2025. Vitae will play a continued global role in advocating for a world in which researchers are valued and supported by enhanced research culture 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:

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 by our international reach, enabling all those working in research to benefit from improved career development and in turn building global research capacity. We have also recently secured a further Horizon Europe funded opportunity relating to assessment of research, researchers and research organisations, this plays a crucial role in research environments and effect on research culture.

CRAC will continue to play an active role in the Career Development Policy Group and help to create a coherent voice to articulate and promote the importance of the benefits of professional career guidance. The CDPG will advocate for the Career Guidance Guarantee through which all citizens could have access to career guidance which would support efficient functioning of the labour market, skills alignment and enhanced economic and social benefits.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

Finances and risks

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

During the year, total income was £1,307,000 (2022: £1,166,000) and total expenditure was £1,207,000 (2022: £1,162,000). There was reduction of £37,000 (2022: gain of £39,000) in the investment portfolio, reflecting the difficult market conditions in the year, meaning an overall surplus of £62,000 for the year (2022: 42,000).

Income from the three core areas remained fairly constant in comparison to 2022, with the main increase coming from new work under the Restricted Projects. Direct costs fluctuate in line with project income, but central costs continue to be tightly controlled.

The results of the actuarial valuation of the defined pension scheme operated by the Charity as at 31 March 2022 became available during the year and these showed a deficit at that point of £1,234,000. However subsequent exceptional changes in interest rates and other economic conditions meant that (calculated by the Actuary on an equivalent basis) this had been reduced to only £150,000 by November 2022. As a result the Trustees of the pension scheme agreed that the annual payments due by the Charity to eliminate the deficit were able to be calculated using this as the reference point and hence continue to be £25,000.

These recent changes in market conditions, mean that the defined benefit pension scheme accounting deficit has been reduced to nil. This £743,000 reduction accounts for most of the increase in overall reserves which have increased from £820,000 at 31 March 2022 to £1,620,000 as at this year end.

There were no charitable or political contributions made during the year. The charity does not raise funds directly from the public.

Full details of income and expenditure are set out in the statement of financial activities (SOFA) on page 14.

c. Investment management

The investments of the Charity are the responsibility of the Board after taking appropriate advice and having due regard for charity law. The investment manager Westminster Wealth, manages the funds in a range of asset classes with the overall objective to increase capital value above the rate of inflation. It also aims to achieve positive returns which are significantly greater than the return on cash. The Trustees review performance on a quarterly basis.

There are no specific restrictions as to the nature of the investments of the Charity.

d. 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.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

The Board regularly considers the risks (including financial and reputational risks) which may affect the activities of the organisation, then assesses the impact of those risks and finally, ensures that appropriate controls are in place, including:

The risk register is continually updated and reviewed at each Board meeting. The current risks that the Board currently consider to be significant, together with the actions taken to mitigate them, are as follows:

Risk Mitigation
Commitments in respect of the defined benefit
pension scheme;		 Whilst the scheme is currently in surplus, a
back up recovery plan is in place and agreed
with the pension scheme trustees.
The funding landscape changes such that
government and related bodies do not have
money available for the services the Charity
provides;		 The Charity’s sources of income are varied
in terms of the type of organisation and the
country they are based in. As a result the
Trustees do not believe they have a
significant exposure to any one source.
General inflationary impact on costs including
wages.		 Regulars reviews of all costs are undertaken
to ensure the Charity’s cost base is
appropriate to its levels of income

e. Reserves policy

The Trustees consider that retaining an appropriate level of reserves and/or cash and easily realisable investments, is necessary to ensure the Charity can meet all commitments. These include:

To address the first two of these, the Trustees' policy is to have sufficient cash and easily realisable investments available to cover charitable expenditure for the next four months (which roughly equates to £400,000). Total cash and easily realisable investments at 31 March 2023 were £423,000 (2022: £559,000) and hence this policy was complied with.

With regard to the third, the Trustees seek to ensure the other net assets of the Charity exceed the pension scheme deficit. As at 31 March 2023 these were £1,620,000 and £nil respectively (2022: £1,563,000 and £743,000) and hence this was achieved. The significant reduction in the pension scheme deficit following the recent changes in market conditions has driven the improvement here.

f. Fund allocation

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.

Restricted Funds are exclusively related to grants received for specific purposes. Direct costs, and an allocation of support costs, are allocated to ‘restricted projects’. Any release to General Funds at the coemption of the project of any surplus grant is agreed with the funder.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also the directors of the Charity 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 Charity 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:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity 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:

Approved by order of the members of the board of Trustees and signed on their behalf by:

David Oswell

David Oswell (Sep 25, 2023 10:55 GMT+1)

David Oswell Chair of Trustees

Date: Sep 25, 2023

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

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 2023 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:

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.

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.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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:

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 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:

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

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 susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we;

In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;

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: 25 September 2023

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

STATEMENT OF FINANCIAL
ACTIVITIES
Note
INCOME FROM:
Grants
4
Charitable activities
5
Investments
6
TOTAL INCOME
EXPENDITURE ON:
Managing investments
7
Charitable activities
8
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE NET GAINS ON
INVESTMENTS

Net gains/(losses) 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
2023
£’000
85
-
-		 Unrestricted
funds
2023
£’000

-

1,202

20		 Total
funds
2023
£’000

85

1,202

20
 Total
funds
2022
£’000

10

1,144

12
1,166

17

1,145
1,162

3

39

42

-

42

387
429

391

429
820
85
1,222
1,307

18

1,189
-
43

18

1,146
43
1,164
1,207
42
-

58

(38)


100

(38)
42
-
20

-
62

-
42
-
20

738
62

738
42
758
800
-
42
820

758
820

800
42
1,578
1,620

The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 17 to 29 form part of these financial statements.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

BALANCE SHEET
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
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 reserve
16
Pension reserve
16
Total unrestricted funds
16
TOTAL FUNDS		 2023
£’000



479
377		 2023
£’000
2
1,483
 2022
£’000



273
540		 2022
£’000
6
1,419
1,425




138
1,563
(743)
820
-




820
820
1,485




135
856

(721)		 813
(675)



-

1,578



6
1,557
1,620
-
1,620

42




1,578


1,578

-		 1,563
(743)
1,620

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

David Oswell (Sep 25, 2023 10:55 GMT+1)

David Oswell Chair of Trustees

Date: Sep 25, 2023

The notes on pages 17 to 29 form part of these financial statements.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

STATEMENT OF CASH FLOWS
Note
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash (used in) / provided by operating activities
18
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible fixed assets
Dividends and interest from investments
Purchase of investments
Disposal of investments
NET CASH (USED IN) / 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		 2023
£
(79)
377

The notes on pages 17 - 29 form part of these financial statements

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

1. GENERAL INFORMATION

The Charity is a company 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 current economic environment in which the Charity operates. After making appropriate 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.

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 activity.

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.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

2.4 EXPENDITURE

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives.

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.

Direct costs are allocated to projects on an actual basis. Support costs, being non-project related costs incurred in achieving the Charity's objects, are allocated to the three core areas in proportion to the income received by that area.

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.

2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets costing £1,000 or more are capitalised 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.

Cash held by the investment managers is considered to be part of the long-term investment holding and as such is included as part of fixed asset investments.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

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.

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 defined contribution scheme (a group personal pension plan 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 has a defined benefit scheme which is closed to new members and is accounted for in accordance with section 28 of 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:

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.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

The Charity makes estimates and judgements concerning the future and the resulting accounting estimates may, by definition, not equal the related actual results. 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.

The estimates and assumptions that are deemed to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate to the defined benefit pension scheme.

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 £106,000. The effect of increasing price inflation by 0.25% per annum would be to increase the deficit by £71,000 and the effect of reducing the probability of death each year by 10% would be to increase the deficit by £42,000.

4. INCOME FROM GRANTS, DONATIONS AND LEGACIES

INCOME FROM GRANTS, DONATIONS AND LEGACIES
Grants
Grants
INCOME FROM CHARITABLE ACTIVITIES
Informing policy
Enhancing provision
Enabling individuals
TOTAL 2023
Informing policy
Enhancing provision
Enabling individuals
TOTAL 2022		 Restricted
funds
2023
£’000
85		 Total
funds
2023
£’000

85
Total
funds
2022
£’000

10
Total
funds
2023
£’000

416

429

357

1,202
Total
funds
2022
£’000

360

393

391

1,144
Restricted
funds
2022
£’000
10
Unrestricted
funds
2023
£’000
416
429
357
1,202

Unrestricted
funds
2022
£’000
360
393
391
1,144

5. INCOME FROM CHARITABLE ACTIVITIES

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

6. INVESTMENT INCOME

Dividend income (from UK Listed Investments)
Bank interest
TOTAL 2023
Dividend income (from UK Listed investments)
Bank interest
TOTAL 2022
7.
INVESTMENT MANAGEMENT COSTS
Investment management fees
Investment management fees		 Unrestricted
funds
2023
£’000
20
-		 Total
funds
2023
£’000

20

-

20
Total
funds
2022
£’000

12

-

12
Total
funds
2023
£’000

18
20
Unrestricted
funds
2022
£’000
12
-
12
Unrestricted
funds
2023
£’000
18
Unrestricted
funds
2022
£’000
17		 Total
funds
2022
£’000

17

8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Certain prior year items have been restated between direct and support costs to reflect the current management structure.

Informing
Policy
2023
£’000
Direct costs
267
Support costs
110
377
Informing Policy
2022
£’000
Direct costs
235
Support costs
120
355		 Informing
Policy
2023
£’000
267
110		 Enhancing
Provision
2023
£’000

319

113


432
Enhancing
Provision
2022
£’000

283

133


416		 Enabling
Individuals
2023
£’000
285
95		 Total
2023
£’000

871

318

1,189
Total
2022
£’000

762

383

1,145
377 380
Enabling
Individuals
2022
£’000
244
130
355
374

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES

ANALYSIS OF STAFF COSTS

ANALYSIS OF STAFF COSTS
Informing
policy
2023
Enhancing
provision
2023
£’000 £’000
Direct staff costs
151
239
Other staff costs
35
36
TOTAL 2023
186

275
Informing
policy
2022
Enhancing
provision
2022
£’000 £’000
Direct staff costs
151
222
Other staff costs
37
41
TOTAL 2022
188

263
ANALYSIS OF SUPPORT COSTS
Informing
policy
2023
Enhancing
provision
2023
£’000 £’000
Staff costs
35
36
Governance costs
6
6
Other costs (including premises and pension)
69
72
TOTAL 2023
110

113
Informing
policy
2022
Enhancing
provision
2022
£’000 £’000
Staff costs
37
41
Governance costs
4
6
Other costs (including premises and pension)
79
86
TOTAL 2022
120

133
10.
AUDITORS' REMUNERATION
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of all non-audit services not
included above:		 Informing
policy
2023
£’000
151
35		 Enhancing
provision
2023
£’000

239

36
 Enabling
individuals
2023
£’000

182

30
Total
funds
2023
£’000

572

101

673
Total
funds
2022
£’000

525

118

643
Total
funds
2023
£’000

101

17

200

318
Total
funds
2022
£’000

118

16

249

383
2022
£’000

11

3
186
275		 212
Informing
policy
2022
£’000
151
37		 Enhancing
provision
2022
£’000

222

41
 Enabling
individuals
2022
£’000

152

40
188
263		 192
Informing
policy
2023
£’000
35
6
69		 Enhancing
provision
2023
£’000

36

6

72
 Enabling
individuals
2023
£’000

30

5

60
110
113		 95
Informing
policy
2022
£’000
37
4

79		 Enhancing
provision
2022
£’000

41

6

86
 Enabling
individuals
2022
£’000

40

6

84
120
133		 130
2023
£’000
13
-

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

11. STAFF COSTS, KEY MANAGEMENT PERSONNEL AND TRUSTEES' REMUNERATION/EXPENSES STAFF COSTS, KEY MANAGEMENT PERSONNEL AND TRUSTEES' REMUNERATION/EXPENSES STAFF COSTS, KEY MANAGEMENT PERSONNEL AND TRUSTEES' REMUNERATION/EXPENSES
2023 2022
£’000 £’000
Wages and salaries 565 542
Social security costs 56 53
Pension costs 52 48
673 643
The average number of persons employed by the Charity during the year was as follows:
2023 2022
No. No.
Direct charitable activities 11 11
Support 3 3
14 14

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,000 was:
2023 2022
No. No.
In the band £80,001 - £90,000 1 1
In the band £100,001 - £110,000 - 1
In the band £110,001 - £120,000 1 -

Employer pension costs paid to defined contribution schemes in respect of the above two staff were £18,000 (2022: two employees paid £16,000). The number of employees above that are deferred members and accruing benefits under the defined benefit scheme are Nil (2022: Nil).

The key management personnel of the Charity comprises of the members of the senior team in Director level posts. The total remuneration of the senior team, which includes benefits in kind, pension contributions and employers NI was £239,000 (2022: £198,000).

During the year, no Trustees received any remuneration or benefit in kind (2022: nil) and three Trustees received reimbursement of expenses of £405 (2022: nil).

12. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
COST OR VALUATION
At 1 April 2022
Additions
Disposals
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for the year
Disposals
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 Fixtures and
fittings
Office
equipment
£’000
£’000
42
4
1
-
(36)
-		 Computer
equipment
Total
£’000
£’000
208
254
1
2
(184)
(220)
7
4		 25
36
42
4
-
-
(36)
-		 202
248
6
6
(184)
(220)
6
4		 24
34
1
-		 1
2
-
-		 6
6

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

13.
FIXED ASSET INVESTMENTS
COST OR VALUATION AND NET BOOK VALUE
At 1 April
Additions
Movement in cash
Disposals
Market value movements
At 31 March
Analysed as follows
Listed investments, held in the UK
Cash held by investment managers
14.
DEBTORS
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2023
£’000
1,419
894
28
(820)
(38)		 2022
£’000

1,385

-

(5)

-

39
1,483
1,419
2023
£’000
1,436
47		 2022
£’000

1,400

19
1,483
1,419
2023
£’000
288
35
156		 2022
£’000

237

4

32

273
2022
£’000

57

83

65

470

675
479
2023
£’000
116
53
7
544
721

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

16.
STATEMENT OF FUNDS
At 1 April
2022
£’000
UNRESTRICTED
FUNDS
DESIGNATED
FUNDS (*)
Designated Fund
6
GENERAL FUNDS
General Funds
1,557
Pension reserve
(743)
814
TOTAL
UNRESTRICTED
FUNDS
820
RESTRICTED
FUNDS ()
Grants
-
TOTAL FUNDS
820**
At 1 April
2021
£’000
UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Designated Fund
12
GENERAL FUNDS
General Funds
1,511
Pension reserve
(1,133)
378
TOTAL
UNRESTRICTED
FUNDS
390
RESTRICTED
FUNDS
Grants
-
TOTAL FUNDS
390		 16.
STATEMENT OF FUNDS
At 1 April
2022
£’000
UNRESTRICTED
FUNDS
DESIGNATED
FUNDS (*)
Designated Fund
6
GENERAL FUNDS
General Funds
1,557
Pension reserve
(743)
814
TOTAL
UNRESTRICTED
FUNDS
820
RESTRICTED
FUNDS ()
Grants
-
TOTAL FUNDS
820**
At 1 April
2021
£’000
UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Designated Fund
12
GENERAL FUNDS
General Funds
1,511
Pension reserve
(1,133)
378
TOTAL
UNRESTRICTED
FUNDS
390
RESTRICTED
FUNDS
Grants
-
TOTAL FUNDS
390		 Income
£’000

-		 Expenditure
£’000
-		 Expenditure
£’000
-		 Transfers
in/out
£’000
(6)		 Gains/
(Losses)
£’000

-		 At 31 March
2023
£’000
-

1,578

-

1,578

1,578
42
1,620
At 31 March
2022
£’000
6

1,560

(746)

814

820
-
820
1,557
(743)
1,222

-

1,222

1,222
85



(1,164)
-

1
5

(38)

738



700

700
-


814 (1,164) -
820 (1,164)
-
- (43) **- **
820
At 1 April
2021
£’000
12		 1,307
Income
£’000


-		 -
Transfers
in/out
£’000
(6)		 700
Gains/
(Losses)
£’000

-
1,511
(1,133)		 1,156

-

1,156

1,156
10
(1,162)

-

(1,162)

(1,162)

-

16
-

39

387



426


426
-
378 16
390 10
- (10)
390 1,166 (1,162)
-		 426

Explanations of what the funds are for is set out in accounting policy 2.14 on page 19.

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

** The Restricted Funds are comprised of the following grants both of which started this year:

(i) A number of partnerships with European organisations resulted in two successful programmes; Open and Universal Science (OPUS) and Sustainable Careers for Researcher Empowerment (SECURE). Funds are claimed via the UK’s Horizon Europe Guarantee scheme implemented by UKRI.

(ii) An Elsevier Foundation grant was received in the year to help establish the right priorities for support to enhance the progression of black early career researchers.

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS
Restricted Unrestricted Total
funds funds funds
CURRENT YEAR 2023 2023 2023
£’000 £’000 £’000
Tangible fixed assets - 2 2
Fixed asset investments - 1,483 1,483
Current assets 42 814 856
Creditors due within one year - (721) (712)
TOTAL 42 1,578 1,620
Unrestricted Total
funds funds
PRIOR YEAR 2022 2022
£’000 £’000
Tangible fixed assets 6 6
Fixed asset investments 1,419 1,419
Current assets 813 813
Creditors due within one year (675) (675)
Pension provision (743) (743)
TOTAL 820 820
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING
18. ACTIVITIES
2023 2022
£’000 £’000
Net income for the year (as per Statement of Financial Activities) 62 42
ADJUSTMENTS FOR:
Depreciation 6 7
Income from investments (20) (12)
Decrease/(increase) in debtors (206) (36)
Increase/(decrease) in creditors 46 250
Losses/(gains) on investments 38 (39)
Net finance cost 20 22
Pension deficit contributions (25) (25)
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES (79) 209
19. ANALYSIS OF CASH AND CASH EQUIVALENTS
2023 2022
£’000 £’000
Cash at bank and in hand 377 540
TOTAL CASH AND CASH EQUIVALENTS 377 540

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

20. ANALYSIS OF CHANGES IN NET DEBT

ANALYSIS OF CHANGES IN NET DEBT
Cash at bank and in hand At 1 April
2022
£’000
540
 Cash flows
£’000

(163)		 At 31 March
2023
£’000

377

377
540 (163)

21. PENSION COMMITMENTS

Defined contribution

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 scheme and amounted to £52,000 (2022: £49,000). At the year-end, £Nil (2022: £Nil) was payable to the scheme.

Defined benefit

The Charity also operates a defined benefit pension scheme, This is a UK registered trust-based pension scheme that provides defined benefits linked to the members' final pensionable salaries and service at their retirement (or date of leaving if earlier). It was closed to future accrual in September 2007 and employed members then transferred to the Aviva defined contribution scheme. The level of future contributions are set based on the triennial actuarial valuations.

The Scheme 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:

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 2022. This valuation revealed a funding shortfall of £ of £1,234,000. However subsequent exceptional changes in interest rates and other economic conditions meant that (calculated by the Actuary on an equivalent basis) this had been reduced to only £150,000 by November 2022. The Trustees of the pension scheme have agreed that the Charity can pay annual contributions based on this lower amount, 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 2023 and expects to pay £25,000 to the scheme during the financial year ended 31 March 2024.

The results of the most recent formal actuarial valuation as at 31 March 2022 have been updated to 31 March 2023 by a qualified independent actuary as set out below.

Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages): Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages): Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):
At 31 March At 31 March
2023 2022
% %
Discount rate 4.85 2.80
Future pension increases 2.80 3.00
Proportion of employees opting for early retirement 3.10 3.30
Revaluation of deferred pensions in excess of GMP 2.85 3.15
RPI inflation 3.25 3.55
CPI inflation 2.85 3.15

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

At 31 March
2023
Years
Mortality rates (in years)
- for a male aged 60 now
25.9
- at 60 for a male aged 40 now
27.4
- for a female aged 60 now
28.6
- at 60 for a female aged 40 now
30.1
The Charity had a 100% share of the assets in the scheme as follows:
At 31 March
2023
£’000
Equities and other growth assets
1,960
Cash and other liquid assets
124
Insurance policy
2,579
TOTAL FAIR VALUE OF ASSETS
4,663
The actual return on scheme assets was a negative return of £402,000 (2022: £114,000).
The amounts recognised in the Statement of Financial Activities are as follows:
2023
£’000
Amounts recognised in net income for the year
Finance costs
20
Amounts recognised in other gains and losses
Return on scheme assets less interest income
(550)
Experience gains/(losses) arising on the defined benefit obligation (DBO)
(287)
Changes in actuarial assumptions used calculate the DBO
1,752
Change in the amount of irrecoverable surplus
(177)
TOTAL AMOUNT RECOGNISED IN THE STATEMENT OF FINANCIAL
ACTIVITIES
738
Movements in the present value of the defined benefit obligation were as follows:
2023
£’000
Opening defined benefit obligation
6,234
Interest cost
168
Actuarial (gains)/losses
(1,465)
Benefits paid
(451)
CLOSING DEFINED BENEFIT OBLIGATION
4,486
Movements in the fair value of the Charity's share of scheme assets were as follows:
2023
£’000
Opening fair value of scheme assets
5,491
Interest income on scheme assets
148
Actuarial (losses)/gains
(550)
Contributions by employer
25
Benefits paid
(451)
CLOSING FAIR VALUE OF SCHEME ASSETS
4,663		 At 31 March
2023
Years
25.9
27.4
28.6
30.1		 At 31 March
2022
Years

25.8

27.3

28.5

30.0
At 31 March
2022
£’000

2,233

100

3,158

5,491
2022
£’000

22

(229)

(203)

819

-

387
2022
£’000

6,948

137

(616)

(235)

6,234
2022
£’000

5,815

115

(229)

25

(235)

5,491
At 31 March
2023
£’000
1,960
124
2,579
4,663
4,663

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THE CAREERS RESEARCH AND ADVISORY COUNCIL LIMITED YEAR ENDED 31 MARCH 2023

Reconciliation to the statement of financial position

Reconciliation to the statement of financial position
Closing fair value of scheme assets
Closing defined benefit obligation
Asset not recognised
PENSION SCHEME ASSET/ (DEFICIT)		 2023
£’000
4,663
(4,486)
(177)		 2022
£’000

5,491

(6,234)

-
-
(743)

22. OPERATING LEASES

During the year the Charity incurred £17,000 (2022: £17,000) in operating lease rentals. At 31 March 2023 the Charity had commitments to make future annual minimum lease payments under non-cancellable operating leases as follows:

non-cancellable operating leases as follows:
Expiring:
Not later than 1 year
Later than 1 year and not later than 5 years		 2023
£’000
17
32		 2022
£’000

15

-

15
49

23. MEMBERS' LIABILITY

Each member of the charitable company undertakes to contribute to the assets of the Charity 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 £10 for the debts and liabilities contracted before he/she ceases to be a member.

24. RELATED PARTY TRANSACTIONS

Details of Trustee expenses are disclosed in note 11.

There were no other related party transactions during the year (2022: Nil).

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