# Presentation: 923881

## Office of Chief Financial Officer ReportUSPTO Trademark Public Advisory CommitteeFebruary 19-20, 2009

## Outline

- Status Report on the Trademark Fee Cost Analysis
- CFO and CAO Cost Allocated to the Trademark Organization
- Status of the FY 2010 President’s Budget
- Timeline for the FY 2011 Budget formulation process

## Trademark Fee Cost Analysis

- Reasons for Conducting a Trademark Fee Cost Analysis:
- OMB Circular A-25 Requirements – Internal Audit Review recommended, “The USPTO should conduct a biennial fee study of costs related to user fees in accordance with A-25 requirements.”
- Good Business Sense – Knowing the cost to perform the work for a specific fee, helps to inform better decisions for any new fee strategy.
- TPAC Request – Requested by TPAC during last session.

## Trademark Fee Cost Analysis Project Team

**Trademarks:** Karen Strohecker, Nabil Chbouki, Alexis Hirsch, Robert Allen
**Finance:** Steve Porter, Shiva Verma, Carrie Chang, Carla Deo, Safana Ahmed, Rajeev Vadgama, and Zhang Zhuoyun
**Corporate Planning:** Dianne Woods, Gerard Torres** **

## Trademark Fee Cost Analysis Phase 1 – Develop Cost Basis

- Draft

## Trademark Fee Cost Analysis Phase 2 – Link Costs to Fees

- Notes:
-  The two phases overlap. The total projected duration for the analysis is 26 weeks.
-  Trademarks has responded with suggestions for changes to this plan but these changes have not yet been discussed by the working group.

- Draft

## Slide 7

## CFO and CAO Cost Allocated to the Trademarks Organization

- The overall USPTO Patent/Trademark cost ratio changed from 88%/12% in FY07 to 89%/11% in FY08.
- The overall Trademark share of USPTO costs decreased by 5.2% ($11M) and the Trademark share of support costs decreased by 11.9% ($13M) from FY07 to FY08.
- In FY08, 91% of budgeted CFO dollars and 94% of CAO budget dollars were spent.
- In FY08, USPTO migrated to the Program-Project-Activity (PPA) code structure enabling the CFO and CAO organizations to, in more cases than in prior years, directly charge the benefiting business lines.

## CFO and CAO Cost Allocated to the Trademarks Organization

- Since Policy costs were ultimately allocated to Patents and Trademarks, an increase in the Policy share further increased the Trademark share of CFO and CAO costs.
- The Trademark share of some workload drivers increased as compared to FY07, increasing its share of the cost of the activities that use those drivers.

## Status of FY 2010 President’s Budget

- The FY 2010 budget level and offsetting fee collections with supporting documentation will be briefed to USPTO management.
- Approved FY 2010 budget level with supporting documentation will be sent to OMB on Thursday, February 19th.
- Budget submission to Congress in late March

## FY 2011 Budget Process

- Partner with Trademarks to produce fee/workload estimates – March
- Provide update of Zero Base approach to all Business Units – April
- Provide guidance of the FY 2011 process to all Business Units – April
- Business Units submit FY 2011 Initiatives requests – June
- Brief TPAC on the status of FY 2011 Budget Request – July
- USPTO executives and TPAC provide input to OCFO – Late July
- Submit a draft of the FY 2011 Budget Request to all Business Units for review – August
- Submit USPTO FY 2011 Budget Request  to OMB – September