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  United States Mint

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***Commemorative Coin***

***FY 2003 1st Quarter Update***

***(For the quarter ending December 31, 2002)***

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***[PROGRAM-WIDE SUMMARY]{.underline}***

Modern commemorative coins authorized by Congress and produced by the
United States Mint date from the introduction of the George Washington
250th Anniversary Half Dollar in 1982. Congress authorized a total of 41
commemorative coin programs between 1982 and 2002, honoring American
people, places, events, and institutions. Surcharges from the sales of
these coins help fund a variety of organizations and projects that
benefit the community at large. United States Mint commemorative coin
programs have collected approximately \$426 million in surcharges over
the past 20 years for many worthy recipient organizations.

The Commemorative Coin Reform Act of 1996 requires the commemorative
coin program to link public funding of special projects to demonstrated
private support by requiring recipient organizations to show receipts of
donations from private sources that are equal to or greater than the
potential proceeds of coin surcharges. It also makes coin program
beneficiaries partners in bearing the risks of commemorative coin
programs, and it assures that the United States Mint recovers its costs
of operating coin programs. Commemorative coins are a benefit, not only
to numismatic enthusiasts and the recipient organizations, but also by
reaffirming our history to the Nation as a whole. While the
commemorative coin programs currently are increasing in their popularity
following the 1996 reforms, some programs are flourishing while others
stagnate. To ensure that commemorative coin programs continue to reap
the benefits of the reforms, the United States Mint must continue to
execute and oversee these coin programs in a conscientious, prudent and
businesslike manner. This underscores the necessity of maintaining and
complying with the 1996 Commemorative Coin Reform Act.

First quarter sales for the 2002 Winter Olympic Games and the U.S.
Military Academy (USMA) Bicentennial commemorative coin programs total
\$1.0 million. Surcharge revenue was transferred to recipient
organizations during the first quarter, with \$460,239 forwarded to both
the Salt Lake Organizing Committee for the Olympic Winter Games of 2002
and the United States Olympic Committee (USOC) from sales of the 2002
Winter Olympic Games commemorative coins. A payment of \$1.8 million was
made to the Association of Graduates, USMA, from sales of the Military
Academy Bicentennial commemorative coins. Authorized for 2001, the
Capitol Visitor Center Commemorative Coin program has closed. On
December 6, 2002, the U.S. Capitol Preservation Commission was sent the
final surcharge payment of \$102,405 for sales of the Capitol Visitor
Center commemorative coins.

***[FINANCIAL REPORTING]{.underline}***

The attached financial statements provide quarterly and cumulative
active program data.

***[2002 WINTER OLYMPIC GAMES]{.underline}***

***Program Highlights***

The 2002 Winter Olympic Commemorative Coin Act, P.L. 106-435, authorizes
the production of 400,000 silver dollar coins and 80,000 gold
five-dollar coins. In the spirit of the 1996 commemorative coin reform
legislation to curb proliferation of commemorative coin programs, the
USOC has been very responsive to past concerns, and the 2002 Games
feature a single coin design for the obverse and reverse of each silver
dollar and gold five-dollar coins.

Congress directed the United States Mint to divide the surcharges from
the sale of the coins equally between the Salt Lake Organizing Committee
for the Olympic Winter Games of 2002 and USOC. The United States Mint
has received audited statements from the Salt Lake Organizing Committee
and, as of this report, has received the audited statements from USOC.
Previous United States Mint commemorative coin programs honoring the
Olympics have raised over \$130 million for our Olympic athletes and
programs.

***Marketing Activities***

The United States Mint continued to promote and sell the 2002 Winter
Olympic Games Commemorative Coin Program on its commemorative coin
website. Last-chance print advertisements were prepared and placed in
*Numismatic News* and *Coin World* to announce the impending end of this
program. The program officially ends on December 31, 2002.

### Analysis of Financial Position 

As of December 31, 2002, the United States Mint shipped over 250,000
coins, generating total program revenues of \$14.9 million, including
surcharges of \$3.6 million. Estimated profits of \$3.2 million covered
the potential unrecovered expenses of \$72,473.00. Cost of goods sold
totaled \$5.1 million and selling, general and administrative expenses
are \$2.9 million. First quarter program activity resulted in a profit
of \$252,314.00. Two recipient organizations share in the surcharges for
the Winter Olympics program -- the Salt Lake Organizing Committee and
USOC. Both the Salt Lake Organizing Committee and USOC have satisfied
the private-source fundraising requirement; they are now qualified to
receive surcharge payments from the United States Mint. Surcharges
collected for sales through the first quarter total \$3.6 million. Total
surcharges paid through December 31, 2002 were over \$2.6 million.

***[UNITED STATES MILITARY ACADEMY BICENTENNIAL]{.underline}***

## 

## Program Highlights

The U.S. Military Academy Bicentennial Commemorative Coin Act, P.L.
103-328, authorizes the production of 500,000 silver dollar coins.
Surcharges from the sale of the coins will go to the Association of
Graduates, USMA, to assist efforts to provide direct support to the
academic, military, physical, moral, and ethical development programs of
the Corps of Cadets, USMA, West Point, New York. As authorized by the
enabling legislation, this will be the last modern commemorative
comprising silver from the Nation's Strategic and Critical Materials
Stockpile, as the inventory in that stockpile has reached a level that
will preclude its use in future Mint commemorative coin programs. The
Secretary of the Treasury approved final designs for the USMA
Bicentennial Commemorative Coin program on May 30, 2001. The West Point
Mint is the minting facility where production began in the last weeks of
the first quarter of 2002, and issuance of the coin began on March 16,
2002. Consistent with the enabling legislation, the coins are being
struck at the West Point Mint because it is located on the USMA's
grounds.

## Marketing Activities

The United States Mint continued to promote and sell the 2002 West Point
Silver Dollars on its commemorative coin website. A United States
Military Academy commemorative coin print advertisement was prepared and
placed in the program of the annual Army-Navy game. Black and white
print advertisements were prepared and placed in the *Military Times*
newspaper.

## Analysis of Financial Position 

As of December 31, 2002, the United States Mint shipped over 383,000
coins, generating total program revenues of \$12.5 million, including
\$3.8 million in surcharges. Estimated program profits of \$1.7 million
cover the potential unrecovered expenses of \$601,226.00. Cost of goods
sold total \$3.1 million and selling, general and administrative
expenses were \$3.9 million. First quarter revenues posted a profit of
\$109,310.00 for the quarter. The Association of Graduates, USMA,
submitted its private fundraising statement and auditor's attestation on
April 25, 2002. The documentation is satisfactory, and the organization
is qualified to receive surcharge payments from the United States Mint.
On December 6, 2002, a payment of \$1.8 million was made to the
Association of Graduates, USMA, from sales of the Military Academy
Bicentennial commemorative coins.

***[Future Commemorative Coin Programs]{.underline}***

**2003 First Flight Centennial Commemorative Coins Program (Gold,
Silver, Clad)**

***Program Highlights***

This gold, silver and clad coin series will commemorate the 100^th^
anniversary of the Wright brothers' first flight on December 17, 1903 in
Kitty Hawk, North Carolina. United States Mint engravers were provided
with source materials and began the initial design process in December
2001. The current legislation states that the Mint may issue coins
beginning August 2003.

Program surcharges are authorized to be paid to the First Flight
Foundation for the purposes of repairing, refurbishing, and maintaining
the Wright Brothers Monument on the Outer Banks of North Carolina and
expanding or, if necessary, replacing and maintaining the visitor center
and other facilities at the Wright Brothers National Memorial Park.

***Marketing Activities***

The United States Mint's engraving staff at the Philadelphia Mint
finalized the candidate designs for the First Flight Commemorative Coin
Program. The Citizens Commemorative Coin Advisory Committee and the
Commission of Fine Arts reviewed the designs. Upon final consultation
with the First Flight Centennial Foundation, recommended designs were
submitted to the Secretary of the Treasury for approval.

The United States Mint sent a representative to the First Flight
Centennial kick-off event at Kill Devil Hills, North Carolina.
Four-color program flyers were produced and distributed to the event's
attendees and names captured of those wishing to receive the First
Flight Centennial Commemorative Coin offering.

**There is currently no second commemorative coin program authorized for
issuance in 2003.**

**2004 Thomas Alva Edison Commemorative Coins Program (Silver)**

***Program Highlights***

This commemorative silver dollar will commemorate the 125^th^
anniversary of the invention of the light bulb by Thomas A. Edison.
Design concepts for this coin will be provided at a later date.

Program surcharges are authorized to be shared as follows:

1.  MUSEUM OF ARTS AND HISTORY- Up to 1/8 to the Museum of Arts and
    History, in the city of Port Huron, Michigan, for the endowment and
    construction of a special museum on the life of Thomas A. Edison in
    Port Huron.

2.  EDISON BIRTHPLACE ASSOCIATION- Up to 1/8 to the Edison Birthplace
    Association, Incorporated, in Milan, Ohio, to assist in the efforts
    of the association to raise an endowment as a permanent source of
    support for the repair and maintenance of the Thomas A. Edison
    birthplace, a national historic landmark.

3.  NATIONAL PARK SERVICE- Up to 1/8 to the National Park Service, for
    use in protecting, restoring, and cataloguing historic documents and
    objects at the \`invention factory\' of Thomas A. Edison in West
    Orange, New Jersey.

4.  EDISON PLAZA MUSEUM- Up to 1/8 to the Edison Plaza Museum in
    Beaumont, Texas, for expanding educational programs on Thomas A.
    Edison and for the repair and maintenance of the museum.

5.  EDISON WINTER HOME AND MUSEUM- Up to 1/8 to the Edison Winter Home
    and Museum in Fort Myers, Florida, for historic preservation,
    restoration, and maintenance of the historic home and chemical
    laboratory of Thomas A. Edison.

6.  EDISON INSTITUTE- Up to 1/8 to the Edison Institute, otherwise known
    as \`Greenfield Village,\' in Dearborn, Michigan, for use in
    maintaining and expanding displays and educational programs
    associated with Thomas A. Edison.

7.  EDISON MEMORIAL TOWER- Up to 1/8 to the Edison Memorial Tower in
    Edison, New Jersey, for the preservation, restoration, and expansion
    of the tower and museum.

8.  HALL OF ELECTRICAL HISTORY- Up to 1/8 to the Schenectady Museum
    Association in Schenectady, New York, for the historic preservation
    of materials of Thomas A. Edison and for the development of
    educational programs associated with Thomas A. Edison.

***Marketing Activities***

The United States Mint's engraving staff in Philadelphia prepared first
round candidate designs. The designs are being prepared for review by
the Citizens Commemorative Coin Advisory Committee.

**2004 Lewis and Clark Commemorative Coins Program (Silver)**

***Program Highlights***

The commemorative silver dollar will commemorate the bicentennial of the
historic expedition conducted by the Corps of Discovery. The expedition
departed St. Louis, Missouri on May 14, 1804. United States Mint
engravers were provided with source materials and began the initial
design process in December 2001.

Program surcharges are authorized to be paid to the Lewis and Clark
Bicentennial Council (2/3), and the National Park Service (1/3), for
activities associated with commemorating the bicentennial of the Lewis
and Clark Expedition.

***Marketing Activities***

Candidate coin designs were prepared by the United States Mint's
engraving staff and reviewed by the Citizens Commemorative Coin Advisory
Committee and the Commission of Fine Arts. The candidate designs were
subsequently presented to the Secretary of the Treasury where they were
recently approved.

***[CONCLUSION]{.underline}***

Authorized for 2001, the Capitol Visitor Center Commemorative Coin
program has closed. On December 6, 2002, the U.S. Capitol Preservation
Commission was sent the final surcharge payment of \$102,405 for sales
of the Capitol Visitor Center commemorative coins.

Both the Salt Lake Organizing Committee and USOC have met the matching
funds requirements and are eligible to receive surcharge payments from
the United States Mint. As of December 31, 2002, surcharge revenue of
more than \$2.6 million has been sent to each of the recipient
organizations, the Salt Lake Organizing Committee and USOC from sales of
the 2002 Winter Olympic Games commemorative coins.

The Association of Graduates, USMA, has met the matching funds
requirements, and the organization is qualified to receive surcharge
payments from the United States Mint. On December 6, 2002, a payment of
\$1.8 million was made to the Association of Graduates, USMA, from sales
of the Military Academy Bicentennial commemorative coins.