Report of Independent Auditors
To the Office of Inspector General,
Department of Commerce, and
Under Secretary of Commerce for Intellectual Property and Director of
the United States
Patent and Trademark Office
We have audited the consolidated balance sheets of the U.S. Patent and Trademark
Office (USPTO), an Agency of the United States with the Department of
Commerce as of September 30, 2001 and 2000, and the related consolidating
statements of net cost and changes in net position and consolidated statements
of budgetary resources, financing, and cash flows for the fiscal years
then ended. These financial statements are the responsibility of the USPTO’s
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits for the years ended September 30, 2001 and 2000 in accordance
with auditing standards generally accepted in the United States; the standards
applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and Office of
Management and Budget (OMB) Bulletin 01-02, Audit Requirements for
Federal Financial Statements. These standards and requirements require
that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of the USPTO as of September
30, 2001 and 2000, and its net costs, changes in net position, budgetary
resources, reconciliation of net costs to budgetary obligations, and cash
flows for the fiscal years then ended, in conformity with accounting principles
generally accepted in the United States.
Our audits were conducted for the purpose of expressing an opinion on the financial
statements referred to in the first paragraph. The information in the
Management’s Discussion and Analysis (MD&A) and the Supplemental
Information is not a required part of the USPTO’s financial statements,
but is considered supplementary information required by OMB Bulletins
97-01, as amended, and 01-09 as applicable, Form and Content of Agency
Financial Statements. Such information has not been subjected to the
auditing procedures applied in the audits of the financial statements,
and accordingly, we express no opinion on it.
However, we were unable to assess the control risk relevant to USPTO’s
intra-governmental transactions and balances with non-Department of Commerce
trading partners, as required by OMB Bulletin 01-02, because these procedures
were to be performed at the Department level. The Department of Commerce
was unable to perform most of the reconciliations with its federal trading
partners as required by the January 7, 2000 technical amendments to OMB
Bulletin 97-01.
In accordance with Government Auditing Standards, we have also issued
our reports as of and for the year ended September 30, 2001, dated December
28, 2001, on our consideration of the USPTO’s internal control over
financial reporting and on our tests of its compliance with certain provisions
of laws and regulations. Those reports are an integral part of an audit
performed in accordance with Government Auditing Standards and
should be read in conjunction with this report in considering the results
of our audits.
December 28, 2001
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