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

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MANAGEMENT’S DISCUSSION AND ANALYSIS
The Inspector General’s Statement of Management
Challenges for the DOC (in the Other Accompanying
Information section of this report) identifies IT
security as a cause for concern Department-wide,
to include the USPTO. While the OIG continues to
report IT security as a Commerce-wide concern,
USPTO management has concluded that IT security
issues within the agency have been sufficiently
resolved beginning in FY 2009 to remove the material
weakness.
The USPTO continues to coordinate closely with the
OIG throughout the year, as well as review annual
assessments with the OIG, to gain additional insight
and ensure compliance with requirements.
Agency’s Financial Management Systems
Strategy
The USPTO’s Consolidated Financial System (CFS)
provides support for financial management, fee
collections, procurement, and travel management
functions to the USPTO. CFS leverages several
Commercial-off-the-shelf (COTS)/Government-offthe-shelf
(GOTS) products, including a core financial
and acquisition system (Momentum Financials), an
eTravel system (FedTraveler), a budget execution
and compensation projection system (Corporate
Planning Tool using the Cognos Planning tool), a
cost accounting system (Activity Based Information
System built using the Profitability and Cost Management
tool), and a data warehouse (Enterprise Data
Warehouse accessed using the Business Objects
tool). Additionally, CFS includes an internally developed
fee collection system (Revenue Accounting
and Management (RAM)), an imaging system
(Office of Finance Imaging System built using the
Documentum tool), and an internally developed
application to automate the transit subsidy program
(Transit Subsidy System).
The FPNG investment replaces RAM, the USPTO’s
legacy fee collection system. FPNG will use a combination
COTS, GOTS, and open source code, as well
as a custom user interface that has the same lookand-feel
as other USPTO websites. Developing and
implementing FPNG supports USPTO’s Strategic
PERFORMANCE AND ACCOUNTABILITY REPORT: FISCAL YEAR 2012
Priority, “Improve IT Infrastructure and Tools”, and will
replace legacy RAM with modern 21st Century technology
that has more automated internal controls,
electronic commerce capabilities, and will be able
to meet the Patent and Trademark fee collection
needs of the future. As the USPTO progresses with its
Patent and Trademark IT strategies (Patents
End-to-End and Trademarks Next Generation), the
fee processing system also needs to progress to the
next generation. The lack of modern technology in
legacy RAM hinders the USPTO from taking full
advantage of the potential benefits from Patents
End-to-End and Trademarks Next Generation
initiatives.
Inspector General Act Amendments
The Inspector General Act, as amended, requires
semi-annual reporting on IG audits and related
activities, as well as any requisite agency follow-up.
The report is required to provide information on the
overall progress on audit follow-up and internal
management controls, statistics on audit reports
with disallowed costs, and statistics on audit reports
with funds put to better use. The USPTO did not have
audit reports with disallowed costs or funds put to
better use in FY 2012.
The USPTO’s follow-up actions on audit findings and
recommendations are essential to improving the
effectiveness and efficiency of our programs and
operations. As of September 30, 2012, management
had resolved two recommendations outstanding
from a report issued in FY 2011 (OIG-11-033-A:
“Patent End-to-End Planning and Oversight Need to
Be Strengthened to Reduce Development Risk”).
One recommendation was outstanding as of
September 30, 2012.
Two new audit reports were issued during FY 2012
(OIG-12-018-A: “The Patent Hoteling Program is
Succeeding as a Business Strategy” and OIG-12-
032-A: “USPTO Other Backlog: Past Problems and
Risks Ahead for the Board of Patent Appeals and
Interferences”). For details on these audits, refer to
page 60. Seven recommendations were outstanding
as of September 30, 2012.