Note 10. 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 3, 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, 2010 and 2009.
| 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 Cost of 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 |
| Salaries and Expenses Fund |
Surcharge Fund | Total Earmarked Funds |
|
|---|---|---|---|
| Balance Sheet as of September 30, 2009 | |||
| Fund Balance with Treasury | $979,154 | $233,529 | $1,212,683 |
| Cash | 2,277 | — | 2,277 |
| Accounts Receivable, Net | 438 | — | 438 |
| Other Assets | 218,864 | — | 218,864 |
| Total Assets | $1,200,733 | $233,529 | $1,434,262 |
| Total Liabilities | $1,058,468 | $— | $1,058,468 |
| Cumulative Results of Operations | 142,265 | 233,529 | 375,794 |
| Total Liabilities and Net Position | $1,200,733 | $233,529 | $1,434,262 |
Statement of Net Cost For the Year Ended September 30, 2009 |
|||
| Total Program Cost | $1,981,940 | $— | $1,981,940 |
| Less Earned Revenue | (1,927,130) | — | (1,927,130) |
| Net Cost of Operations | $54,810 | $— | $54,810 |
Statement of Changes in Net Position For the Year Ended September 30, 2009 |
|||
| Net Position, Beginning of Year | $199,075 | $233,529 | $432,604 |
| Budgetary Financing Sources | $(2,000) | $— | $(2,000) |
| Net Cost of Operations | (54,810) | — | (54,810) |
| Change in Net Position | $(56,810) | $— | $(56,810) |
| Net Position, End of Year | $142,265 | $233,529 | $375,794 |
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 in FY 1992 through the Patent and Trademark Office Surcharge provision in the OBRA of 1990 (Section 10101, Public Law 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 was eliminated in FY 1999. 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.
