Note 15. Liabilities not Covered by Budgetary Resources

Liabilities not Covered by Budgetary Resources
(In Thousands)

	FY 2007	FY 2006
Intragovernmental
Debt to Treasury	$  164,489	$        -
Accrued FECA Liability	32,008	30,954
Other	1,232	2,501
Total Intragovernmental	197,729	33,455
Accrued Payroll	28,896	23,584
Accrued Annual Leave	214,415	201,612
Federal Employee Benefits	625,816	589,964
Environmental and Disposal Liabilities	67,443	74,880
Contingent Liabilities	8,717	13,063
Unearned Revenue	795,468	762,463
ITA Foreign Service Nationals' Voluntary Separation Pay	9,550	9,436
Other	983	1,137
Total	$1,949,017	$1,709,594

Due to USPTO’s funding structure, budgetary resources do not cover a portion of its Unearned Revenue. The Unearned Revenue reported above is the portion of USPTO’s Unearned Revenue that is considered not covered by budgetary resources. USPTO’s Unearned Revenue is a liability for revenue received before the patent or trademark work has been completed. Budgetary resources derived from the current reporting period’s revenue have been partially used to cover the current reporting period’s costs associated with unearned revenue from a prior reporting period. In addition, the current patent fee structure sets low initial application fees that are followed by income from maintenance fees as a supplement in later years to cover the full cost of the patent examination and issuance processes. The combination of these funding circumstances requires USPTO to obtain additional budgetary resources to cover its liability for unearned revenue.