Report of Independent Auditors - Cover Letter
MEMORANDUM FOR:
James E. Rogan
Under Secretary of Commerce for Intellectual Property and
Director of the U.S. Patent and Trademark Office
FROM:
Johnnie E. Frazier 
SUBJECT:
USPTO's FY 2003 Financial Statements
Audit Report No FSD-16075-4-0001
I am pleased to provide you with the attached audit report which presents an unqualified opinion on the U.S. Patent and Trademark Office's FY 2003 financial statements. The audit results indicate that the USPTO has established an internal control structure that facilitates the preparation of reliable financial and performance information. We commend the USPTO for the noteworthy accomplishment of attaining an unqualified opinion for the 11th consecutive year.
My office contracted with the independent certified public accounting firm of KPMG LLP (KPMG) to perform the audit of the USPTO's financial statements as of and for the year ended September 30, 2003. The contract required that the audit be done in accordance with U.S. generally accepted government auditing standards and OMB Bulletin 01-02, Audit Requirements for Federal Financial Statements.
In its audit of the USPTO, KPMG found that:
- the financial statements were fairly presented, in all material respects and in conformity to U.S. generally accepted accounting principles;
- there were no material weaknesses in internal control, as defined on page 2 of the audit report;
- there were no instances in which the USPTO's financial management systems did not comply with the requirements of the Federal Financial Management Improvement Act of 1996, and no reportable noncompliance with other laws and regulations tested.
My office defined the audit's scope and oversaw its performance and delivery. We reviewed KPMG's report and related documentation, and inquired of its representatives. Our review, as differentiated from an audit in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express, and we do not express, an opinion on the USPTO's financial statements, conclusions about the effectiveness of internal control, or conclusions on compliance with laws and regulations. KPMG is responsible for the attached auditor's report dated November 14, 2003, and the conclusions expressed in the report. However, our review disclosed no instances where KPMG did not comply, in all material respects, with Government Auditing Standards.
If you wish to discuss the contents of this report, please call me on (202) 482-4661, or Michael Sears, Assistant Inspector General for Auditing, on (202) 482-1934. We appreciated the cooperation and courtesies the USPTO extended to KPMG and my staff during the audit.
Attachments
cc:
Jo-Anne Barnard
Chief Financial Officer and Chief Administrative Officer
U.S. Patent and Trademark Office
Otto J. Wolff
Chief Financial Officer and Assistant Secretary for Administration
Department of Commerce
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