The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:     
       (1) All Other Expenditures--Expenditures of all other funds not reported under the expenditure categories of Business, Nonprofit Organizations, Institutional Funds, State and Local Government or Federal Expenditures, as defined in this section. All Other Expenditures includes funds from foreign universities, foreign governments, portions of gifts designated for research by the donors (including from the reporting institution's 501(c)(3)), and nonfederal and nonstate funds received from other institutions of higher education.      
       (2) Annual Financial Report (AFR)--Institutional financial report for one fiscal year as required by Texas Education Code, §51.005.      
       (3) Areas of Special Interest--Major research topics important to the public, or required by statute, as listed in the Research Expenditure Survey.      
       (4) Board--The governing body of the Texas Higher Education Coordinating Board.      
       (5) Business Expenditures--Expenditures of funds from domestic or foreign for-profit organizations.      
       (6) Coordinating Board--The agency known as the Texas Higher Education Coordinating Board, including agency staff.      
       (7) Coordinating Board Staff or Board Staff--Agency staff acting under the direction of the Board and the Commissioner.      
       (8) Federal Expenditures--Expenditures of funds received by the reporting institution from any agency of the United States government for research and development. These include reimbursements, contracts, grants, and any identifiable amounts spent on research and development from Federal programs including Federal monies passed through state agencies to the reporting institution and federal funds that were passed through to the reporting institution from another institution.      
       (9) General Academic Teaching Institution--Any public general academic teaching institution as defined in Texas Education Code, §61.003(3).      
       (10) Institutional Fund Expenditures--This includes funds expended for R&D that are controlled at the institutional level, such as Available University Fund (AUF) or other funding held locally used for R&D, excluding institution research administration and support. This category includes cost sharing from unrestricted sources (cost sharing from restricted sources should be classified according to the underlying source), unrestricted funds from the reporting institution's 501(c)(3), and unrecovered indirect costs. Unrecovered indirect costs may not exceed the institution's federally negotiated Facilities and Administrative rate.      
       (11) Medical and Dental Unit--Any public health related institution as defined in Texas Education Code, §61.003(5).      
       (12) Nonprofit Organization Expenditures--Expenditures of funds from domestic or foreign non-profit foundations and organizations, except universities and colleges.      
       (13) Other Agency of Higher Education--Any public agency of higher education as defined in Texas Education Code, §61.003(6).      
       (14) Pass-through to Sub-recipient--Sponsored project funds that are passed from one entity to a sub-recipient. The sub-recipient expends the funds to carry out part of the sponsored project on behalf of the pass-through entity.      
       (15) Private Expenditures--Expenditures of funds reported as Business Expenditures, Non-profit Organization Expenditures, and All Other Expenditures. Amounts exclude R&D expenditures that do not meet the narrow definition of R&D expenditures used in the Coordinating Board's Research Expenditure Survey.      
       (16) Research and Development (R&D)--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. R&D does not include public service or outreach programs, curriculum development (unless included as part of an overall research project), or non-research training grants. R&D does not include capital projects (i.e., construction or renovation of research facilities).      
       (17) R&D Training--Activities involving the training of individuals in research techniques are included in R&D, where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function.      
       (18) Research Expenditures or Expenditures--In a specific fiscal year, expenditures of funds paid out by an institution to support institutional Research and Development activities. Expenditures do not include in-kind donations.      
       (19) Research Expenditure Survey--The mandatory survey instrument administered by the Coordinating Board pursuant to Texas Education Code, §61.0662, that establishes total R&D expenditures for each institution by research field and areas of special interest, both accounted by funding source. The survey includes a Research Expenditure Survey, specific definition of R&D, and reporting guidelines for R&D activities. The survey separately accounts for unrecovered indirect costs and pass-through expenditures to other general academic teaching institutions, medical and dental units, or other agencies of higher education, by funding source.      
       (20) Research fields--Subject areas for R&D, as listed in the Research Expenditure Survey.      
       (21) Sources and Uses Template--An annual survey of Texas general academic and health-related institutions to detail financial information and provide specific information about revenues and expenditures.      
       (22) Sponsored Projects--Sponsored projects include grants, contracts, cooperative agreements and other legally binding means of transfer under which an entity provides a return benefit to, or agrees to provide a defined deliverable or complete a specified set of activities for, an external sponsor in exchange for funds. External sponsors are those that are not part of the entity.      
       (23) State and Local Government Expenditures--Expenditures of funds received for R&D via appropriations from the state of Texas, including non-formula support items, and funds received from any state, county, municipality, or other local government entity in the United States, including state health agencies. Expenditures include state funds that support R&D at agricultural and other experiment stations.      
       (24) State Contracts and Grants--A subset of State and Local Government Expenditures that includes only expenditures of interagency contracts, contracts with Texas local governments, and other such state funding sources for R&D.      
       (25) State of Texas Source Expenditures--A subset of State and Local Government Expenditures that includes only expenditures of funds appropriated by the state of Texas for research, including state appropriated research non-formula support items and research formula funding.      
     Source Note:        The provisions of this §13.302 adopted to be effective August 30, 2016, 41 TexReg 6481; amended to be effective February 15, 2024, 49 TexReg 669