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Note 14. Earmarked Funds

Earmarked funds are financed by specifically identified revenues, which remain available over time. These specifically identified revenues are required by statute to be used for designated activities, benefits, or purposes, and must be accounted for separately from the government’s general revenues. At the USPTO, earmarked funds include the salaries and expenses fund and the special fund receipts. Non-entity funds, as disclosed in Note 7, are not earmarked funds and are therefore excluded from the below amounts.

The following tables provide the status of the USPTO’s earmarked funds as of and for the years ended September 30, 2011 and 2010.

Earmarked Funds for FY 2011
(Dollars in Thousands)
  Salaries and
Expenses Fund
Surcharge Fund Total Earmarked
Funds
Balance Sheet as of September 30, 2011      
Fund Balance with Treasury $1,292,820 $233,529 $1,526,349
Cash 2,364 2,364
Accounts Receivable, Net 434 434
Other Assets 218,766 218,766
Total Assets $1,514,384 $233,529 $1,747,913
Total Liabilities $1,145,653 $— $1,145,653
Cumulative Results of Operations 368,731 233,529 602,260
Total Liabilities and Net Position $1,514,384 $233,529 $1,747,913

Statement of Net Cost For the Year Ended September 30, 2011
     
Total Program Cost $2,148,097 $— $2,148,097
Less Earned Revenue (2,236,374) (2,236,374)
Net Income from Operations $(88,277) $— $(88,277)

Statement of Changes in Net Position For the Year Ended September 30, 2011
     
Net Position, Beginning of Year $258,776 $233,529 $492,305
Other Financing Sources:      
Imputed Financing 21,678 21,678
Net Income from Operations 88,277 88,277
Change in Net Position 109,955 109,955
Net Position, End of Year $368,731 $233,529 $602,260


Earmarked Funds for FY 2010
(Dollars in Thousands)
  Salaries and
Expenses Fund
Surcharge Fund Total Earmarked
Funds
Balance Sheet as of September 30, 2010      
Fund Balance with Treasury $1,101,228 $233,529 $1,334,757
Cash 2,570 2,570
Accounts Receivable, Net 758 758
Other Assets 187,564 187,564
Total Assets $1,292,120 $233,529 $1,525,649
Total Liabilities $1,033,344 $— $1,033,344
Cumulative Results of Operations 258,776 233,529 492,305
Total Liabilities and Net Position $1,292,120 $233,529 $1,525,649

Statement of Net Cost For the Year Ended September 30, 2010
     
Total Program Cost $2,006,938 $— $2,006,938
Less Earned Revenue (2,101,682) (2,101,682)
Net Income from Operations $(94,744) $— $(94,744)

Statement of Changes in Net Position For the Year Ended September 30, 2010
     
Net Position, Beginning of Year $142,265 $233,529 $375,794
Other Financing Sources:      
Imputed Financing 21,767 21,767
Net Income from Operations 94,744 94,744
Change in Net Position 116,511 116,511
Net Position, End of Year $258,776 $233,529 $492,305

The Salaries and Expenses Fund contains moneys used for the administering of the laws relevant to patents and trademarks and advising the Secretary of Commerce, the President of the United States, and the Administration on patent, trademark, and copyright protection, and trade-related aspects of intellectual property. This fund is used for the USPTO’s three core business activities – granting patents, registering trademarks, and intellectual property policy, protection, and enforcement – that promote the use of intellectual property rights as a means of achieving economic prosperity. These activities give innovators, businesses, and entrepreneurs the protection and encouragement they need to turn their creative ideas into tangible products, and also provide protection for their inventions and trademarks. The USPTO may use moneys from this account only as authorized by Congress via appropriations.

The Surcharge Fund was created through the Patent and Trademark Office Surcharge provision in the Omnibus Budget Reconciliation Act (OBRA) of 1990 (Section 10101, Pub. L. No. 101-508). This required that the USPTO impose a surcharge on certain patent fees and set in statute the amounts of money that the USPTO should deposit in a special fund receipt account at the U.S. Department of the Treasury. This surcharge expired at the end of FY 1998. The USPTO may use moneys from this account only as authorized by Congress, and only as made available by the issuance of a Treasury warrant.

United States Patent and Trademark Office
Last Modified: 01/03/2012 14:04:40