Note 20. Earmarked Funds

The following tables depict major earmarked funds separately chosen based on their significant financial activity and importance to taxpayers. All other earmarked funds not shown are aggregated as “Other Earmarked Funds.”

United States Department of Commerce Consolidated Balance Sheet
As of September 30, 2007 (In Thousands)

Major Earmarked Funds — Consolidated Balance Sheet
As of September 30, 2007
(In Thousands)

	USPTO Earmarked Funds	NTIA Digital Television Transition and Public Safety Fund	Coastal Zone Management Fund	NTIS Revolving Fund	Damage Assessment and Restoration Revolving Fund	Other Earmarked Funds	Total Earmarked Funds
ASSETS
Fund Balance with Treasury	$1,302,303	$104,505	$27,742	$26,856	$33,392	$50,494	$1,545,292
Cash	5,990	-	-	-	-	-	5,990
Accounts Receivable, Net	422	-	-	1,321	36	2	1,781
Loans Receivable and Related Foreclosed Property, Net	-	-	8,731	-	-	-	8,731
Inventory, Materials, and Supplies, Net	-	-	-	207	-	-	207
General Property, Plant, and Equipment, Net	204,577	-	-	212	-	-	204,789
Other	6,133	17,467	-	5,635	349	349	29,933
TOTAL ASSETS	$1,519,425	$121,972	$36,473	$34,231	$33,777	$50,845	$1,796,723
LIABILITIES
Accounts Payable	$   95,419	$  2,854	$    12	$ 7,754	$   695	$   213	$  106,947
Debt to Treasury	-	164,489	-	-	-	-	164,489
Federal Employee Benefits	7,929	-	-	571	-	-	8,500
Other
Accrued Payroll and Annual Leave	113,481	104	-	1,367	32	102	115,086
Accrued Grants	-	914	-	-	-	852	1,766
Unearned Revenue	828,070	-	-	8,828	-	-	836,898
Other	10,506	-	-	176	8	-	10,690
TOTAL LIABILITIES	$1,055,405	$168,361	$    12	$18,696	$   735	$ 1,167	$1,244,376
NET POSITION
Unexpended Appropriations	$        -	$      -	$     -	$     -	$     -	$     -	$        -
Cumulative Results of Operations	464,020	(46,389)	36,461	15,535	33,042	49,678	552,347
TOTAL NET POSITION	$  464,020	$(46,389)	$36,461	$15,535	$33,042	$49,678	$  552,347
TOTAL LIABILITIES AND NET POSITION	$1,519,425	$121,972	$36,473	$34,231	$33,777	$50,845	$1,796,723

United States Department of Commerce Consolidated Balance Sheet
As of September 30, 2006 (In Thousands)

Major Earmarked Funds — Consolidated Balance Sheet
As of September 30, 2006
(In Thousands)

	USPTO Earmarked Funds	Coastal Zone Management Fund	NTIS Revolving Fund	Damage Assessment and Restoration Revolving Fund	Other Earmarked Funds	Total Earmarked Funds
ASSETS
Fund Balance with Treasury	$1,310,612	$29,083	$21,917	$28,438	$44,805	$1,434,855
Cash	6,248	80	-	-	-	6,328
Accounts Receivable, Net	1,752	-	1,772	20	5	3,549
Loans Receivable and Related Foreclosed Property, Net	-	5,426	-	-	-	5,426
Inventory, Materials, and Supplies, Net	-	-	200	-	-	200
General Property, Plant, and Equipment, Net	164,538	-	252	-	-	164,790
Other	4,315	-	5,635	-	480	10,430
TOTAL ASSETS	$1,487,465	$34,589	$29,776	$28,458	$45,290	$1,625,578
LIABILITIES
Accounts Payable	$  101,902	$    12	$ 7,841	$   736	$    45	$  110,536
Federal Employee Benefits	7,471	-	572	-	-	8,043
Other						-
Accrued Payroll and Annual Leave	95,194	-	1,273	38	80	96,585
Accrued Grants	-	-	-	-	744	744
Unearned Revenue	774,425	-	3,508	-	-	777,933
Other	10,474	-	198	58	-	10,730
TOTAL LIABILITIES	$  989,466	$    12	$13,392	$   832	$   869	$1,004,571
NET POSITION
Unexpended Appropriations	$       27	$     -	$     -	$     -	$     -	$       27
Cumulative Results of Operations	497,972	34,577	16,384	27,626	44,421	620,980
TOTAL NET POSITION	$  497,999	$34,577	$16,384	$27,626	$44,421	$  621,007
TOTAL LIABILITIES AND NET POSITION	$1,487,465	$34,589	$29,776	$28,458	$45,290	$1,625,578

United States Department of Commerce Consolidated Statement of Net Cost
For the Year Ended September 30, 2007 (In Thousands)

Major Earmarked Funds — Consolidated Statement of Net Cost
For the Year Ended September 30, 2007
(In Thousands)

	USPTO Earmarked Funds	NTIA Digital Television Transition and Public Safety Fund	Coastal Zone Management Fund	NTIS Revolving Fund	Damage Assessment and Restoration Revolving Fund	Other Earmarked Funds	Total Earmarked Funds
Strategic Goal 1: Provide the Information and Tools to Maximize U.S. Competitiveness and Enable Economic Growth for American Industries, Workers, and Consumers
Gross Costs	$        -	$     -	$     -	$     -	$     -	$ 5,332	$    5,332
Less: Earned Revenue	-	-	-	-	-	-	-
Net Program Costs	-	-	-	-	-	5,332	5,332
Strategic Goal 2: Foster Science and Technological Leadership by Protecting Intellectual Property, Enhancing Technical Standards, and Advancing Measurement Science
Gross Costs	1,769,658	$46,389	-	24,518	-	-	1,840,565
Less: Earned Revenue	(1,735,706)	-	-	(22,625)	-	-	(1,758,331)
Net Program Costs	33,952	$46,389	-	1,893	-	-	82,234
Strategic Goal 3: Observe, Protect, and Manage the Earth’s Resources to Promote Environmental Stewardship
Gross Costs	-	-	(3,657)	-	19,744	15,189	31,276
Less: Earned Revenue	-	-	(1,227)	-	-	-	(1,227)
Net Program Costs	-	-	(4,884)	-	19,744	15,189	30,049
NET COST OF OPERATIONS	$   33,952	$46,389	$(4,884)	$ 1,893	$19,744	$20,521	$  117,615

United States Department of Commerce Consolidated Statement of Net Cost
For the Year Ended September 30, 2006 (In Thousands)

Major Earmarked Funds — Consolidated Statement of Net Cost
For the Year Ended September 30, 2006
(In Thousands)

	USPTO Earmarked Funds	Coastal Zone Management Fund	NTIS Revolving Fund	Damage Assessment and Restoration Revolving Fund	Other Earmarked Funds	Total Earmarked Funds
Strategic Goal 1: Provide the Information and Tools to Maximize U.S. Competitiveness and Enable Economic Growth for American Industries, Workers, and Consumers
Gross Costs	$        -	$   -	$     -	$    -	$10,664	$   10,664
Less: Earned Revenue	-	-	-	-	-	-
Net Program Costs	-	-	-	-	10,664	10,664
Strategic Goal 2: Foster Science and Technological Leadership by Protecting Intellectual Property, Enhancing Technical Standards, and Advancing Measurement Science
Gross Costs	1,514,169	-	26,419	-	-	1,540,588
Less: Earned Revenue	(1,594,437)	-	(25,554)	-	-	(1,619,991)
Net Program Costs	(80,268)	-	865	-	-	(79,403)
Strategic Goal 3: Observe, Protect, and Manage the Earth’s Resources to Promote Environmental Stewardship
Gross Costs	-	139	-	8,674	21,360	30,173
Less: Earned Revenue	-	(956)	-	-	-	(956)
Net Program Costs	-	(817)	-	8,674	21,360	29,217
NET COST OF OPERATIONS	$  (80,268)	$(817)	$   865	$8,674	$32,024	$  (39,522)

United States Department of Commerce Consolidated Statement of Changes in Net Position
For the Year Ended September 30, 2007 (In Thousands)

Major Earmarked Funds — Consolidated Statement of Changes in Net Position
For the Year Ended September 30, 2007
(In Thousands)

	USPTO Earmarked Funds	NTIA Digital Television Transition and Public Safety Fund	Coastal Zone Management Fund	NTIS Revolving Fund	Damage Assessment and Restoration Revolving Fund	Other Earmarked Funds	Total Earmarked Funds
Cumulative Results of Operations:
Beginning Balance	$497,972	$      -	$34,577	$16,384	$27,626	$44,421	$620,980
Budgetary Financing Sources:
Non-exchange Revenue	-	-	-	-	7,133	9,722	16,855
Transfers In/(Out) Without Reimbursement, Net	-	-	(3,000)	-	18,027	9,149	24,176
Other Financing Sources (Non-exchange):
Imputed Financing Sources from Cost Absorbed by Others	-	-	-	1,044	-	-	1,044
Other Financing Sources/(Uses), Net	-	-	-	-	-	6,907	6,907
Total Financing Sources	-	-	(3,000)	1,044	25,160	25,778	48,982
Net Cost of Operations	(33,952)	(46,389)	4,884	(1,893)	(19,744)	(20,521)	(117,615)
Net Change	(33,952)	(46,389)	1,884	(849)	5,416	5,257	(68,633)
Cumulative Results of Operations	464,020	(46,389)	36,461	15,535	33,042	49,678	552,347
Unexpended Appropriations:
Beginning Balance	27	-	-	-	-	-	27
Budgetary Financing Sources	(27)	-	-	-	-	-	(27)
Unexpended Appropriations	-	-	-	-	-	-	-
NET POSITION	$464,020	$(46,389)	$36,461	$15,535	$33,042	$49,678	$552,347

United States Department of Commerce Consolidated Statement of Changes in Net Position
For the Year Ended September 30, 2006 (In Thousands)

Major Earmarked Funds — Consolidated Statement of Changes in Net Position
For the Year Ended September 30, 2006
(In Thousands)

	USPTO Earmarked Funds	Coastal Zone Management Fund	NTIS Revolving Fund	Damage Assessment and Restoration Revolving Fund	Other Earmarked Funds	Total Earmarked Funds
Cumulative Results of Operations:
Beginning Balance	$417,804	$36,760	$16,094	$24,136	$42,963	$537,757
Budgetary Financing Sources:
Non-exchange Revenue	-	-	-	7,590	7,931	15,521
Transfers In/(Out) Without Reimbursement, Net	(100)	(3,000)	-	4,924	17,616	19,440
Other Financing Sources (Non-exchange):
Transfers In/(Out) Without Reimbursement, Net	-	-	-	(350)	-	(350)
Imputed Financing Sources from Cost Absorbed by Others	-	-	1,155	-	-	1,155
Other Financing Sources/(Uses), Net	-	-	-	-	7,935	7,935
Total Financing Sources	(100)	(3,000)	1,155	12,164	33,482	43,701
Net Cost of Operations	80,268	817	(865)	(8,674)	(32,024)	39,522
Net Change	80,168	(2,183)	290	3,490	1,458	83,223
Cumulative Results of Operations	497,972	34,577	16,384	27,626	44,421	620,980
Unexpended Appropriations:
Beginning Balance	27	-	-	-	-	27
Budgetary Financing Sources	-	-	-	-	-	-
Unexpended Appropriations	27	-	-	-	-	27
NET POSITION	$497,999	$34,577	$16,384	$27,626	$44,421	$621,007

Below is a description of major earmarked funds shown in the above tables.

The USPTO Earmarked Funds consist of its Salaries and Expenses Fund, and the Patent and Trademark Surcharge Fund.

The Salaries and Expenses Fund contains monies used for the administering of the laws relevant to patents and trademarks and advising the Secretary of Commerce, the President of the United States, and the Administration on patent, trademark, and copyright protection, and trade-related aspects of intellectual property. This fund is used for USPTO’s two core business activities – granting patents and registering trademarks – that promote the use of intellectual property rights as a means of achieving economic prosperity. These activities give innovators, businesses, and entrepreneurs the protection and encouragement they need to turn their creative ideas into tangible products, and also provide protection for their inventions and trademarks. Since FY 1993, the Salaries and Expenses Fund has been funded primarily by the collection of fees for patent and trademark services. The USPTO may use monies from this fund only as authorized by Congress via appropriations.

The Patent and Trademark Surcharge Fund, a Special Fund Receipt Account at Treasury, is discussed in Note 18, Combined Statements of Budgetary Resources. USPTO may use monies from this account only as authorized by Congress and made available by the issuance of a Treasury warrant. As of September 30, 2007, $233.5 million is held in this fund.

The NTIA Digital Television Transition and Public Safety Fund makes digital television available to every home in America, improves communications between local, State, and federal agencies, assists in moving satellites that were once on the World Trade Centers, allows smaller television stations to broadcast digital television, and improves how warnings are received when disasters occur. NTIA receives funding from borrowings from the Bureau of Public Debt, and will repay the Bureau of Public Debt through the sale of Analog Spectrum which will be auctioned. The additional funds from the auction will be used to reduce the National Deficit. The law establishing this program can be found in Deficit Reduction Act of 2005, P.L. 109-171 Section 3001-3014.

The Coastal Zone Management Fund is primarily used for interstate projects, demonstration projects for improving coastal zone management, and emergency grants to State coastal zone management agencies to address unforeseen or disaster-related circumstances. The law establishing the Coastal Zone Management Fund can be found in 16 USC Section 1456a.

The NTIS Revolving Fund is used to collect, process, market, and disseminate government-sponsored and foreign scientific, technical, and business information; and, to assist other agencies with their information programs. Activities funded by the NTIS Revolving Fund allow customers, both public and private, access to scientific and technical information produced by and for the federal government. All receipts from the sale of products and services are deposited in this fund, and all expenses, including capital expenditures, are paid from it.

The Damage Assessment and Restoration Revolving Fund is established by the reimbursement of expenses related to oil or hazardous substance spill response activities, or natural resource damages assessment, restoration, rehabilitation, replacement, or acquisition activities conducted by NOAA. The recovered sums by a federal, state, indian, or foreign trustee for natural resource damages is retained by the trustee and is only used to reimburse or pay costs incurred by the trustee for the damaged natural resources. The law establishing the Damage Assessment and Restoration Revolving Fund can be found in 33 USC Section 2706. Natural Resources.