USPTO Performance and Accountability Report - U.S. Patent and ...

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INDEPENDENT AUDITORS’ REPORT
KPMG LLP
Suite 12000
1801 K Street, NW
Washington, DC 20006
Independent Auditors’ Report
Inspector General, U.S. Department of Commerce and
Under Secretary of Commerce for Intellectual Property and
Director of the U.S. Patent and Trademark Office:
We have audited the accompanying consolidated balance sheets of the United States Patent and Trademark
Office (USPTO) as of September 30, 2012 and 2011, and the related consolidated statements of net cost
and changes in net position, and combined statements of budgetary resources for the years then ended
(hereinafter referred to as “consolidated financial statements”). The objective of our audits was to express
an opinion on the fair presentation of these consolidated financial statements. In connection with our fiscal
year 2012 audit, we also considered the USPTO’s internal control over financial reporting and tested the
USPTO’s compliance with certain provisions of applicable laws, regulations, and contracts that could have
a direct and material effect on these consolidated financial statements.
Summary
As stated in our opinion on the consolidated financial statements, we concluded that the USPTO’s
consolidated financial statements referred to above, are presented fairly, in all material respects, in
conformity with U.S. generally accepted accounting principles.
As discussed in Note 1 Reclassifications to the consolidated financial statements, the USPTO changed its
presentation for reporting the combined statement of budgetary resources in fiscal year 2012.
Our consideration of internal control over financial reporting resulted in identifying certain deficiencies
relating to information technology general controls that we consider to be, collectively, a significant
deficiency, as defined in the Internal Control Over Financial Reporting section of this report.
We did not identify any deficiencies in internal control over financial reporting that we consider to be
material weaknesses as defined in the Internal Control Over Financial Reporting section of this report.
The results of our tests of compliance with certain provisions of laws, regulations, and contracts disclosed
no instances of noncompliance or other matters that are required to be reported under Government Auditing
Standards, issued by the Comptroller General of the United States, and Office of Management and Budget
(OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, as amended.
The following sections discuss our opinion on the USPTO’s consolidated financial statements; our
consideration of the USPTO’s internal control over financial reporting; our tests of the USPTO’s
compliance with certain provisions of applicable laws, regulations, and contracts; and management’s and
our responsibilities.
KPMG LLP is a Delaware limited liability partnership,
the U.S. member firm of KPMG International Cooperative
(“KPMG International”), a Swiss entity.
PERFORMANCE AND ACCOUNTABILITY REPORT: FISCAL YEAR 2012