Capital Expenditures Exploratory Questions

Background and Definitions
The National Center for Science and Engineering Statistics (NCSES) within the National Science
Foundation is interested in deriving an annual estimate of R&D capital expenditures in the higher
education sector. NCSES is developing a model using data currently collected on the Higher
Education Research and Development Survey (HERD) and the Survey of Science and Engineering
Research Facilities (Facilities). HERD asks about capitalized equipment and software, but large
capital projects are excluded. Those projects are reported on Facilities, but not all capital project
costs are captured.
To develop and validate a model, NCSES would like to conduct a one-time collection of R&D capital
expenditures from a sample of universities and colleges. Below we present some definitions and
questions we are considering including on the survey.
Research and Development
R&D activity is creative and systematic work undertaken in order to increase the stock of knowledge
— including knowledge of humankind, culture, and society — and to devise new applications of
available knowledge. R&D covers three activities — basic research, applied research, and
experimental development.
Capital Expenditures
These expenditures include spending on both R&D facilities and major equipment for R&D as
defined in Office of Management and Budget (OMB) Circular A-11 Section 84 (Schedule C).
Examples include physical assets such as land, structures, equipment, and intellectual property (e.g.,
software or applications) that have an estimated useful life of two years or more.
Reporting Units
Include expenditures from all units of your institution included in your financial statement. Other
campuses headed by their own president, chancellor, or equivalent within your university system
should NOT be included. Each campus is asked to respond separately.

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Capital Expenditures
1. What were your total expenditures in fiscal year (FY) 2021 for capital assets used, or
expected to be used, for R&D?
• Estimates are permissible.
• If an asset is only partially used for R&D, estimate expenditures based on portion of
space or time that the asset will be used for R&D.
R&D capital expenditures

$_______________.00

2. How much of your FY 2021 R&D capital expenditures were funded by the following
sources?
Source of funds

Capital expenditures

a. Institutional funds
Includes 501(c)3 foundations that
exclusively support the university

$_______________.00

b. U.S. federal government

$_______________.00

c. All other sources

$_______________.00

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3. Which of the following types of costs were included in the expenditures reported in
question 1? If they were not included, indicate why.
Included

Type of cost

Not included
No assets of
this type were
purchased

Assets will not
be used for
R&D

Land acquisition
Land acquired for R&D use, including land
purchased for building construction.

⃝

⃝

⃝

Buildings and land improvement
Buildings constructed or purchased for R&D use.

⃝

⃝

⃝

Major moveable equipment
Major (capitalized) machinery and equipment
acquired for use in the performance of R&D.

⃝

⃝

⃝

Capitalized software
Computer software that is used in the
performance of R&D for more than one year.
Include long-term licenses and the acquisition of
computer software, as well as production costs
for internally produced software.

⃝

⃝

⃝

Capital expenditures for intangible assets.
Includes patents, long-term licenses, or other
intangible assets used in R&D and that are in use
for more than two years.

⃝

⃝

⃝

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Depreciation
4. What fiscal year was the base year on your last F&A proposal?
Fiscal Year _____________
5. On you last F&A proposal, what were the following depreciation rates for on-campus
organized research?
a. Building depreciation as percent of direct cost.

________.____%

b. Equipment depreciation as percent of direct cost.

________.____%

c. Building and equipment depreciation combined as percent
of direct cost.

________.____%

6. For your FY 2021, what were the following depreciation rates for on-campus organized
research?
a. Building depreciation as percent of direct cost.

________.____%

b. Equipment depreciation as percent of direct cost

________.____%

c. Building and equipment depreciation combined as percent
of direct cost.

________.____%

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