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| ### ![](media/image1.wmf)UNITED STATES MINT                           |
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| # Report to Congress on Operations                                    |
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| ## For the Period From July 1 through September 30, 2002              |
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| 4^TH^ Quarter FY 2002                                                 |
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**Summary**

![](media/image2.wmf){width="2.7263888888888888in"
height="2.3069444444444445in"}

####### **State Of The Mint**

######## 

The United States Mint's main responsibilities are:

-   Producing an adequate volume of circulating coins for the Nation to
    conduct its trade and commerce, and distributing these coins to the
    Federal Reserve.

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-   Manufacturing, marketing and selling proof and uncirculated coins,
    commemorative coins and medals to the general public. These products
    are known as numismatic products.

-   Manufacturing, marketing and selling gold, silver and platinum
    bullion coins through the American Eagle Bullion Program. The value
    of American Eagle Bullion Coins generally depends upon their weight
    in specific precious metals. (By contrast, the numismatic value of
    other types of coins generally depends upon factors such as mintage,
    rarity, condition and age.) American Eagle Bullion Coins provide
    investors with a simple and tangible means to own precious metals.
    Not sold directly to the general public by the United States Mint,
    these products are available through precious metal dealers, coin
    dealers, brokerage companies and participating banks.

-   Safeguarding United States Mint assets and non-Mint assets that are
    in the Mint's custody, including bullion reserves at the Fort Knox
    Bullion Depository and elsewhere.

[Status Of The Public Enterprise Fund]{.underline}

The United States Mint's Public Enterprise Fund is financed by the sale
of circulating coins to the Federal Reserve and the sale of numismatic
and bullion coins and other products to customers worldwide.

+-------------------+---------------+-----------------+---------------+
| Table #1          |               |                 |               |
|                   |               |                 |               |
| QUARTERLY         |               |                 |               |
| COMPARISON OF     |               |                 |               |
| REVOLVING FUND    |               |                 |               |
| REVENUE           |               |                 |               |
|                   |               |                 |               |
| (Millions of      |               |                 |               |
| Dollars)          |               |                 |               |
+-------------------+---------------+-----------------+---------------+
| Product           | FY 2002       | FY 2002         | Change        |
|                   |               |                 |               |
| Category          | 4^TH^ Qtr     | 3^RD^ Qtr       |               |
+-------------------+---------------+-----------------+---------------+
| Circulating       | \$408         | \$376           | +9%           |
+-------------------+---------------+-----------------+---------------+
| Numismatics       | \$85          | \$89            | -5%           |
+-------------------+---------------+-----------------+---------------+
| Bullion^\*^       | \$63          | \$23            | +174%         |
+-------------------+---------------+-----------------+---------------+
| TOTAL             | \$556         | \$488           | +14%          |
+-------------------+---------------+-----------------+---------------+

+--------------------+---------------+-----------------+---------------+
| Table #2           |               |                 |               |
|                    |               |                 |               |
| FISCAL YEAR        |               |                 |               |
| COMPARISON OF      |               |                 |               |
| REVOLVING FUND     |               |                 |               |
| REVENUE            |               |                 |               |
|                    |               |                 |               |
| (Millions of       |               |                 |               |
| Dollars)           |               |                 |               |
+--------------------+---------------+-----------------+---------------+
| Product            | FY 2002       | FY 2001         | Change        |
|                    |               |                 |               |
| Category           | 4^TH^ Qtr     | 4^th^ Qtr       |               |
+--------------------+---------------+-----------------+---------------+
| Circulating        | \$408         | \$395           | +3%           |
+--------------------+---------------+-----------------+---------------+
| Numismatics        | \$85          | \$64            | +34%          |
+--------------------+---------------+-----------------+---------------+
| Bullion^\*^        | \$63          | \$37            | +70%          |
+--------------------+---------------+-----------------+---------------+
| TOTAL              | \$556         | \$496           | +12%          |
+--------------------+---------------+-----------------+---------------+

\* Investment versions, proof versions will be included in numismatic
sales when offered.

**Circulating Coins:** The demand for circulating coins by commercial
establishments and the general public fluctuates with the United States'
ever-changing economy. To accommodate this variability, the United
States Mint and Federal Reserve continually assess their inventories and
the demand for circulating coins, and adjust their production, ordering
and delivery plans accordingly.

During the fourth quarter of FY 2002, the United States Mint shipped
about 4.9 billion circulating coins to the Federal Reserve \-- up by
about 9% from the Mint's shipment of about 4.5 billion circulating coins
during the previous quarter. This increase in shipments was associated
with a comparable increase in circulating revenues; during the fourth
quarter of FY 2002, the United States Mint's circulating revenues
totaled about \$408 million \-- up by about 9% from circulating revenues
of \$376 million during the previous quarter. (See Table #1.)
Circulating revenues for the fourth quarter of FY 2002 were about 3%
higher than those for the same quarter of the previous fiscal year,
which totaled about \$395 million. (See Table #2.)

Because the Federal Reserve is receiving a higher than usual flowback of
circulating coins from its customers, the United States Mint does not
expect shipments of circulating coins and associated revenues to
continue increasing during the first quarter of FY 2003. This flowback
is boosting inventories throughout the Federal Reserve system. As a
result, the Federal Reserve has reduced its orders for circulating coins
from the United States Mint, which will result in decreased shipments
and revenues from circulating coins during the first quarter of FY 2003.

**Numismatic Products:** During the fourth quarter of FY 2002,
numismatic revenues totaled about \$85 million \-- down by about 5% from
numismatic revenues during the previous quarter, which totaled about
\$89 million. (See Table #1.) This decrease is the net result of a \$13
million decrease in revenues from Recurring Programs and a \$9 million
increase in revenues from the Proof Program.

Numismatic revenues from the fourth quarter of FY 2002 were about 34%
higher than numismatic revenues from the fourth quarter of FY 2001,
which totaled about \$63 million. (See Table #2.) This increase is the
net result of a \$12.3 million increase in revenues from the Proof
Program, a \$14.6 million increase in revenues from Recurring Programs,
the sale for almost \$7.6 million of a one-of-a-kind 1933 Double Eagle,
and a \$12.7 million decrease in revenues from Commemorative Programs.

During the first quarter of FY 2003, numismatic revenues will probably
range between \$30 million and \$40 million. This projection is based
upon the likelihood that sales will remain strong through December 2002
but will not be augmented by any launches of major products.

**Bullion Coins:** During the fourth quarter of FY 2002, bullion
revenues totaled about \$63 million \-- up by about 174% from bullion
revenues from the previous quarter, which totaled about \$23 million.
(See Table #1.) This increase may be attributable to various factors,
including reduced investor confidence in the stock market, increased
concerns over tensions between Iraq and the United States and the entry
of a new silver bullion distributor into the market. In addition, the
third quarter of the fiscal year typically yields the lowest bullion
revenues for the entire fiscal year, and so fourth quarter revenues are
usually higher by comparison.

Bullion revenues for the fourth quarter of FY 2002 were about 70% higher
than bullion revenues from the same quarter last year, which totaled
about \$37 million. (See Table #2.) This revenue increase reflects
recent increases in gold and platinum prices as well as the various
factors mentioned above.

During the first quarter of FY 2003, bullion revenues are estimated to
increase to between \$65 million and \$85 million. This projection is
based upon our expectation that the December 2002 release of coins dated
for 2003 will boost sales and the likelihood that current market
conditions will continue into next quarter.

[Transfer To The General Fund]{.underline}

![](media/image3.wmf)

During FY 2002, the United States Mint transferred \$1.03 billion in
profits excess to operating requirements to the Treasury General Fund.
\$990 million of the \$1.03 billion was attributable to circulating
coins, which enabled the Government to reduce the debt it issued, and
\$40 million of the \$1.03 billion was attributable to numismatic and
bullion operations, which was available to fund other Government
operations.

####### **Update on Mint Activities**

**[Safety]{.underline}**

The United States Mint's Lost Time Accident (LTA) rate[^1] has generally
trended downwards since the mid-1990s. Through increased focus on safety
in FY 2002, the United States Mint's LTA rate declined by 43 percent
from 3.9 in FY 2001 to 2.2 in FY 2002. (See chart on front page.)

The United States Mint's reduced LTA rate reflects a reduction in the
LTA rates for all but one of the United States Mint's facilities, and a
73 percent reduction in the LTA rate of the United States Mint's
Protection Strategic Business Unit (the Mint Police) from 4.5 in 2001 to
1.2 in 2002. It should be noted that the Mint Police improved its safety
record despite the special safety challenges posed during the
post-September 11^th^ period.

Furthermore, none of the United States Mint's five field facilities
experienced a single LTA during the entire month of July 2002. This was
the first month that these field facilities remained LTA-free during the
five years for which detailed monthly records are available.

Also noteworthy is improved safety at the United States Mint's
Philadelphia facility \-- as reflected by a 63 percent decline in its
LTA rate from 5.2 in FY 2001 to 1.9 in FY 2002. This trend has resulted
from an aggressive safety overhaul that included extensive equipment
repairs, improved health and safety training and upgraded housekeeping
following this facility's suspension of minting operations. (As
discussed in previous PEF reports, the suspension of minting operations
at the United States Mint's Philadelphia facility was from March 4, 2002
to April 18, 2002.)

The United States Mint is committed to further improving its safety
record. During the fourth quarter of FY 2002, the United States Mint
retained the services of DuPont Safety Resources. This firm will conduct
a benchmarking assessment of each United States Mint field facility, and
then submit recommended safety improvements to the United States Mint
during the first quarter of FY 2003.

**[50 State Quarters Program]{.underline}**

**Launches:** On August 8, 2002, United States Mint Director Henrietta
Holsman Fore, joined by Indiana Governor O'Bannon, unveiled the new
Indiana State Quarter at the International Motor Speedway near
Indianapolis. The coin, which showcases the image of an "Indy" car and
an outline of the state of Indiana, was the fourth State Quarter
released in 2002 and the 19^th^ State Quarter released since the 50
State Quarters^^ Program began in 1999. The launch event for the
Indiana State Quarter was attended by almost 3,000 people who exchanged
a total of about \$70,000 worth of paper money for Indiana Quarters. In
addition, the event drew positive media attention from outlets across
the nation. Indiana State Quarters, which are packaged in two-roll sets
(40 coins per roll) and in bags of 100 and 1,000 coins, are available
through the United States Mint's popular subscription program. (To view
the United States Mint's subscription page, click on the "Subscriptions"
button on the lower left corner at http://catalog.usmint.gov.)

On October 15, 2002, the Mississippi State Quarter will be released.
Hosted by Director Fore and Mississippi Governor Musgrove, the launch
event will be held on October 22 in Jackson, Mississippi.

**Quarter Designs:** By November 2002, the Secretary of the Treasury
will have returned to the state Governors all of the final designs for
the five State Quarters (Illinois, Alabama, Maine, Missouri and
Arkansas) that are scheduled for release in 2003.

The current status of designs for the five 2003 State Quarters are as
follows: Final designs for the Illinois, Alabama, Maine and Arkansas
Quarters have been approved by the Secretary of the Treasury. The
Secretary of the Treasury approved five candidate designs for the
Missouri State Quarter on September 27, 2002.

In August/September 2002, each of the five states that will be honored
by the release of State Quarters in 2004 (Michigan, Florida, Texas, Iowa
and Wisconsin) submitted candidate designs to the United States Mint.

**[Historic Settlement of Case Against Washington Mint,
LLC]{.underline}**

On August 5, 2002, the United States Mint reached an unprecedented \$2.1
million settlement with the Washington Mint, LLC, marking an end to
three years of litigation and all pending copyright, trademark and false
advertising claims. The Consent Decree also requires the Washington
Mint, LLC to serve a consumer awareness notice to its customers of U.S.
coins or U.S. coin replicas since January 1, 2000, in an effort to
eliminate existing confusion over the Washington Mint's status as a
private business and to educate consumers on replica coin products. The
Washington Mint, LLC remains subject to a permanent injunction, which
prohibits it from producing and marketing replicas of the Golden Dollar
coin, and requires it to use a court-ordered disclaimer in all
advertisements and marketing materials featuring United States
Mint-related products.

This historic settlement affirms the United States Mint's commitment to
protect and educate consumers across the nation and to safeguard its
reputation for producing the highest quality coins and products.

**[New Partnerships]{.underline}**

The United States Mint recently developed new partnerships with the
United States Bureau of Engraving and Printing (BEP) and the United
States Postal Service (USPS) that will help increase the visibility of
Mint products and expand the Mint's product offerings.

**United States Postal Service:** The United States Mint and USPS are
currently jointly developing three new products that will be available
in the Fall of 2002. Each of these products features one or more State
Quarters from the United States Mint's 50 State Quarters Program
together with products from the USPS's Greetings From America series,
which honors each of the 50 states with its own postcard and stamp.

The new joint United States Mint/USPS products will be sold via the
United States Mint and USPS websites, selected post offices, USPS
product catalog and Mint retail locations. These products are:

1.  The Priority Proof Gift Set, which will package a 50 State Quarters
    Proof Set together with a set of the Greetings From America
    postcards and stamps from the same states. The Priority Proof Gift
    Set will be distributed in ready-to-mail priority mailers.

2.  The Collectors' Cards, which will package a 50 State Quarters coin
    and a Greetings from America stamp from the same state. Collectors'
    Cards will be sold individually and in packs of five.

3.  The 50 State Quarters/Greetings Stamp Portfolios, which will package
    a set of all five 50 State Quarters released during a single year
    together with Greetings From America stamps from the same year. A
    different 50 State Quarters/Greetings Stamp Portfolio will be
    assembled to represent each year since 1999, when the 50 State
    Quarters began.

**Bureau of Engraving and Printing:** Under a new agreement between the
United States Mint and the BEP, the United States Mint is purchasing
selected BEP products at bulk rates and then selling these products to
the public via the Mint's print and electronic catalogs. The United
States Mint is providing customer service to purchasers of its BEP
products and processing returns of them. The new agreement also obliges
BEP to replace its damaged products and accept returns of unsold or
damaged BEP products from the United States Mint, as necessary.

The first products sold under the new United States Mint/BEP partnership
are uncut sheets of crisp, new \$1.00, \$2.00, and \$5.00 bills. These
products are featured in the United States Mint's annual catalog, which
was released on September 25, 2002.

**[Coin Redesign]{.underline}**

Some members of the American public, Congress, and the coin collecting
community have expressed interest in redesigning all of the Nation's
circulating coinage. The United States Mint recognizes that that any
large-scale coin redesign effort would involve intensive collaboration
with Congress, the American public and various experts. Should Congress
endorse such an initiative, the United States Mint would be poised to
facilitate its implementation. The United States Mint would look forward
to coordinating the many processes that would be needed to select new
designs for circulating coins, if Congress should approve such an
initiative. In addition, the United States Mint is working with Congress
on nickel redesign legislation.

During the fourth quarter of FY 2002, the House passed H.R. 4903, which
is also known as "The Keep Monticello on the Nickel Act."

[Improvements In Coin Inventory Management]{.underline}

The Coin Efficiencies Workgroup, which is composed of members of the
United States Mint and Federal Reserve, recently developed a new
inventory management and forecasting tool. During the fourth quarter of
2002, this tool was used for the first time by the Federal Reserve to
generate the monthly coin order that it submits to the United States
Mint.

The new inventory management and forecasting tool works by synthesizing
information on current Federal Reserve inventories, inventory targets
and econometric forecasts of coin demand to generate a recommended
monthly coin order for each Federal Reserve Bank and Branch Office. Each
office reviews and adjusts the recommended order as needed based upon
additional business information not available in the tool. These
adjusted Bank and Branch orders are then aggregated to yield a total
order for the Federal Reserve.

This new inventory management and forecasting tool also supports
short-term coin demand forecasting by the Federal Reserve and production
planning by the United States Mint. During FY 2003, the Coin
Efficiencies Workgroup will monitor and further refine this tool's
accuracy.

During the fourth quarter of FY 2002, the Coin Efficiencies Workgroup
began testing a new Extranet application that will give Federal Reserve
offices access to real-time information on coin shipments scheduled by
the United States Mint. This testing should be completed during the
first quarter of FY 2003. Then, the application will be made available
to all Federal Reserve offices.

[Supply Chain Management]{.underline}

In July 2002, the United States Mint established a Supply Chain
Management Workgroup to coordinate various initiatives aimed at
developing a fully integrated supply chain for the Mint that
incorporates best-in-business practices. All segments of the Mint's
supply chain \-- from materials supply to coin distribution \-- will be
addressed. During FY 2003, the Supply Chain Management Workgroup will
establish an Extranet application that will allow the United States Mint
and its key suppliers to share information. The workgroup will also
pursue initiatives to improve supplier partnerships, benchmark against
industry leaders, streamline production planning for circulating coins,
improve numismatic forecasting and production, and implement and improve
software solutions. These projects will involve collaboration with the
United States Mint's supply partners, manufacturing facilities, and the
Coin Efficiencies Workgroup.

**[E-Business Solution Project]{.underline}**

The staff of the United States Mint's e-Business Solution Project (eSP)
is working to implement cutting-edge technologies that are enhancing the
ability of the United States Mint \-- which is already one of the
nation's largest online retailers \-- to act as a customer-centered,
market-responsive organization. During the fourth quarter of 2001, as
part of its eSP efforts, the United States Mint launched a new online
catalog, outsourced deliveries to a new pick-and-pack product
distribution facility and implemented a new customer relationship
management system that is integrated with order entry, order processing
and inventory management systems. Since then, the United States Mint has
shipped 7.7 million items to over 6 million customer orders and signed
up over 56,000 customers for new subscriptions.

The United States Mint's recent eSP upgrades have improved its customer
service by reducing the Mint's typical order fulfillment time from up to
eight weeks to less than one week. These eSP upgrades are also enabling
the Mint to automatically consolidate multiple orders from a single
customer into a single package, supporting the Mint's streamlined return
procedures and supporting the establishment of an order status
self-check function on the Mint's online catalog. In addition, according
to the results of a recent customer satisfaction survey conducted by
Schulman, Ronca and Bucuvalas, Inc., 72 percent of the United States
Mint's customers believe that the Mint's new online catalog is
"somewhat" or "much better" than the online catalog that it replaced.

**[Auction of 1933 Double Eagle Gold Coin]{.underline}**

On July 30, 2002, the United States Mint sold a much-publicized 1933
Double Eagle gold coin that will generate more than \$3 million for the
United States Treasury. The coin, auctioned by Sotheby's in New York
City during the American Numismatic Association's annual convention,
sold for \$6.6 million to an anonymous bidder. An additional 15 percent
auction fee brought the sales price to \$7.59 million and an additional
\$20 was needed to "monetize" the face value of the coin so that it
would be legal to own, bringing the final sales price to \$7,590,020. It
is believed to be the most ever paid for a coin at auction.

The United States Mint's Public Enterprise Fund (PEF) received the
entire amount. The PEF will disburse a portion to Sotheby's to pay for
the services it rendered to the United States Mint in marketing and
auctioning the coin. In addition, the PEF will deduct the United States
Mint's expenses in administering the contract and protecting the coin.
The PEF will then retain half the proceeds under an out-of-court
settlement \-- expected to be slightly more than \$3 million, which will
be transferred to the United States Treasury as a miscellaneous receipt.

**[Fourth Quarter Audits]{.underline}**

During the fourth quarter of FY 2002, the U.S. General Accounting Office
(GAO) issued *New Dollar Coin: Marketing Campaign Raised Public
Awareness But Not Widespread Use (Report GAO-02-896).* This report
advised the United States Mint to suspend marketing and promotion of the
Golden Dollar until the United States Mint completes further research
into barriers to the Golden Dollar circulation and provides evidence
that additional marketing and promotion efforts will increase Golden
Dollar circulation. The United States Mint generally concurs with these
recommendations. As explained in this PEF's 'Golden Dollar Activities"
section, the United States Mint is currently researching barriers to
Golden Dollar circulation, and plans to incorporate the results of its
research into its revised Golden Dollar marketing plan.

During the fourth quarter of FY 2002, GAO also released one draft report
covering United States Mint activities: *Human Capital: Effective Use of
Flexibilities Can Assist Agencies in Managing Their Workforces* *(Draft
Report GAO-03-2).* This draft report recognized the United States Mint's
implementation of effective human capital flexibilities, such as
alternative work schedules, monetary and non-monetary incentive awards,
the creation of a "human resources flexibilities team," actively seeking
employee input, and the revision of personnel-related policies and
procedures, among others.

During the fourth quarter of FY 2002, GAO initiated the following
studies covering United States Mint activities:

1.  A review of whether security at the United States Mint and the
    Bureau of Engraving & Printing, which each currently have their own
    security forces, should be handled by the same federal law
    enforcement agencies that currently handle security at other
    Treasury Department bureaus.

2.  An audit of the recruitment and retention procedures of the Federal
    Uniformed Police of the United States Mint, the Bureau of Engraving
    & Printing, and the United States Secret Service.

3.  An analysis of whether the United States Mint should purchase
    planchets of blanks for coin denominations besides the penny, rather
    than produce these planchets itself, as it currently does. This
    analysis will consider the cost and security implications of both
    alternatives.

4.  An analysis of the differences between the budgetary, accounting and
    oversight costs involved in the production of paper currency and
    coins, and the historical reasons for these differences.

In addition, the Treasury Office of the Inspector General (OIG) recently
announced plans to initiate a *Review Of The United States Mint's Use of
Government Purchase Cards.* Through this analysis, the OIG will
determine whether the United States Mint's existing controls on
government purchase cards are adequate to ensure that they are used for
their intended purposes.

**[Golden Dollar Activities]{.underline}**

During the fourth quarter of FY 2002, the United States Mint launched
the Golden Dollar Research Program. Through this Research Program, the
United States Mint will identify ways to overcome barriers to the
distribution and use of Golden Dollar coins in everyday business
transactions, such as coin operated industries, transit and retail
operations. It will also measure consumer behavior and attitudes towards
the Golden Dollar. Research results will become available during the
first quarter of FY 2003.

###### Other Highlights

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

**2003 First Flight Centennial Commemorative Coins:** This series of
gold, silver and clad coins will mark the 100^th^ anniversary of the
Wright Brothers' historic flight at Kitty Hawk, North Carolina. Some of
the proceeds from sales of these coins will help pay for the upkeep of
the Wright Brothers Monument in North Carolina.

Prepared by the United States Mint, candidate designs for the First
Flight Commemorative Coins were presented to the Citizens Commemorative
Coin Advisory Committee on August 2, 2002, and then reviewed by the
Commission of Fine Arts on September 19, 2002.

**2004 Lewis and Clark Commemorative Coin:** This coin will mark the
200^th^ anniversary of the Lewis and Clark expedition. Prepared by the
United States Mint, candidate designs for the Lewis and Clark
Commemorative Coin were reviewed by the Citizens Commemorative Coin
Advisory Committee on September 29, 2002. These candidate designs are
tentatively scheduled to be presented to the Commission of Fine Arts in
October 2002.

**2004 Thomas A. Edison Silver Dollar:** This coin will mark the 125^th^
anniversary of Thomas Edison's invention of the light bulb. The United
States Mint is currently preparing preliminary design candidates for
this coin.

**[Customer Care Center Relocation]{.underline}**

To improve customer service and reduce costs, the United States Mint has
reorganized its customer care activities. As part of this
reorganization, in August 2002, the United States Mint moved its
Customer Care Center (CCC) from Lanham, Maryland to the Mint's
Headquarters at 801 9^th^ Street in Washington DC. This move will save
the United States Mint about \$576,000 annually (about \$48,000 monthly)
in rent.

According to a preliminary analysis, the total cost of moving the CCC
from Lanham, Maryland, to Washington, DC, was about \$460,000 \-- only
about 26 percent of the projected cost of about \$1,737,000, which had
been calculated using typical government costing procedures. The United
States Mint achieved these savings by negotiating firm fixed-price
contracts with movers, and by using other innovative project management
techniques.

**[ANA Convention]{.underline}**

The United States Mint played a prominent role at the American
Numismatic Association's annual convention, which was held in New York
City from July 31 to August 4, 2002. Director Fore helped open the
convention, which drew more than 11,000 attendees. She also participated
in her first meetings of the Mint Directors Conference (MDC) as this
organization's Vice President, and led several MDC meetings, including a
general assembly. (The MDC is an international body that exchanges
manufacturing, technical and financial information of common interests
among its membership of 42 national Mints.) Attendees at the MDC
meetings discussed various research issues, planned for the XXIII
biennial MDC convention, which will be hosted by the United States Mint
in San Francisco from March 20 to 23, 2004, and voted on issues
concerning the Coin Registrar Office. (The Coin Registrar Office houses
data on the coin specifications of member nations.)

Director Fore also attended meetings of the International Mint Market
Development Council (IMMDC). (The IMMDC is a group of national mints
that promote international interest and education in numismatics.)
Discussions at the IMMDC meetings focused on strategies for marketing
coins on the Internet, manufacturing innovations and administrative
options facing the IMMDC.

#  Director Fore also conducted a forum to gather input from coin collectors and eight of the largest international dealers from six countries on how to better serve their needs, prospects for developing future partnerships and trends in sales of United States Mint products. In addition, throngs of coin collectors flocked to the United States Mint's conference booth, where they met Director Fore and purchased a total of \$70,000 worth of United States Mint products.

# 

# [Biennial Convention of the International Mint Directors' Conference]{.underline}

# 

According to the rules of the Mint Directors Conference (MDC), the
director of the mint hosting the MDC's biennial convention automatically
assumes the position of Vice President of the MDC. As Vice President of
the MDC, Director Fore's responsibilities include helping the MDC
President direct the MDC, reviewing and approving all correspondence
between the MDC Council and MDC Members, and organizing the biennial
convention, which is expected to draw 500 to 600 individuals, including
representatives of national Mints, dealers and industrial and marketing
observers.

# 

Preparations for the MDC's XXIII Convention are progressing via weekly
meetings of the United States Mint's planning team. The United States
Mint is also working closely with the event planning staff of the
Department of Justice's Mail, Multimedia & Publications Services, which
has been contracted to provide services to organize the Conference.

**[Citizen Commemorative Coin Advisory Committee]{.underline}**

In August 2002, Treasury Secretary Paul O'Neill appointed two new
members to the Citizens Commemorative Coin Advisory Committee (CCCAC),
an organization that reviews proposed coin designs and identifies
people, places or events that should be honored by Congress with
commemorative coins. One new CCCAC members is Ms. Ute Wartenberg \--
Executive Director of the American Numismatic Society, former Assistant
Director of the American Numismatic Society and Assistant Keeper of the
British Museum (Curator of Greek Coins). Another new CCCAC member is Ms.
Connie Matsui \-- National President of the Girl Scouts of the United
States of America and Senior Vice President of the IDEC Pharmaceuticals
Corporation. In September 2002, Ms. Wartenberg and Ms. Matsui attended
the CCCAC business meeting in Washington, DC.

**[50 State Quarters & Euro Collection]{.underline}**

On June 12, 2002, the United States Mint released the 50 State Quarters
& Euro Collection, which will be limited to 100,000 sets. Each set
includes each of the five State Quarters released in 2002 and one euro
from each of the 12 European Union nations that adopted the euro in
2002. When the 50 State Quarters & Euro Coin Collection was released,
the United States Mint limited each order to 20 sets per order to ensure
that the United States Mint's inventory would be sufficient to allow all
interested consumers to purchase sets. The United States Mint recently
lifted that limit in order to allow consumers to order unlimited numbers
of remaining sets

**[Strengthened Policy on Use of Government Travel Cards]{.underline}**

The United States Mint has continued to strengthen its policies on
non-payment and misuse of credit cards for government travel issued
under the Government Travel Card Program contract by Citibank. Every
month, the Mint's Travel Manager reviews all Mint employees' Citibank
statements for delinquencies and misuses. Whenever a delinquency or
misuse is identified through these reviews, the violating employee is
sent a memo informing him or her of the violation; a copy of each memo
is also sent to the violating employee's supervisors.

Within ten days of an employee's receipt of a memo identifying a credit
card violation, corrective action must be taken. If this ten-day
deadline is missed, the Mint's Chief Financial Officer may take
disciplinary action against the violating employee's supervisor and
against the violating employee.

**[New Section in Annual Report]{.underline}**

** **

The United States Mint added a new section to its FY 2001 Annual Report.
This new section features photographs of all circulating coins,
numismatic products and American Eagle Bullion Coins that were produced,
marketed or sold by the United States Mint during FY 2001. It also
includes coin specifications for numismatic products and American Eagle
Bullion Coins, as well as tables of the numbers of circulating coins,
numismatic products and American Eagle Bullion Coins issued and minted
during FY 2000 and FY 2001.

**[Medals]{.underline}**

On September 19, 2002, in the Capitol Rotunda, Speaker of the House
Dennis Hastert presented General Henry H. Shelton with the Congressional
Gold Medal.

**[New Chief Information Officer]{.underline}**

In August 2002, Mr. Jerry Horton joined the United States Mint as Chief
Information Officer. Mr. Horton has over 15 years of Information
Technology experience, and his previous positions include Vice President
and Director of several "eBusiness," manufacturing startups and large
corporations.

**[Tours in Philadelphia and Denver]{.underline}**

**[\
]{.underline}**On September 6, 2002, the Philadelphia Mint resumed
public tours for school and youth groups, military and veterans groups
and Congressionally sponsored groups of six or fewer people. The Denver
Mint had resumed tours on the same limited basis in June, 2002. Tours of
the Denver and Philadelphia Mints were suspended following the attacks
of September 11, 2001.

**[Competitive Sourcing]{.underline}**

A key component of President George W. Bush's Management Agenda is a
competitive sourcing initiative that requires federal agencies to
compare their in-house costs of performing non-inherently governmental
functions against private sector costs of performing the same functions.
The United States Mint is complying with this initiative by conducting
two studies of complex and operationally critical functions; one study
focuses on selected Office of Human Resource functions and the other
focuses on Customer Care Center functions. In 2003, the United States
Mint will begin additional studies.

**[Educational Web Site]{.underline}**

The United States Mint's educational web site \-- which is called the
History In Your Pocket (H.I.P.) Pocket Change \-- broadcasts games,
stories and other engaging activities that are designed to inspire an
interest in coin collecting among children. The site also broadcasts
lesson plans and other educational resources for teachers. Since its
launch in July 1999, the site has drawn increasingly heavier traffic.
For example, while the site received 373,909 hits during the second half
of FY 2001, it received 433,523 hits during the second half of FY 2002
\-- an increase of 16%.

**[The United States Mint Museum and Visitor Center]{.underline}**

Washington, DC's Downtown Development District requires commercial real
estate properties to devote at least 50 percent of their street-level
space to preferred retail and art uses. The United States Mint remains
committed to satisfying this requirement by opening a United States Mint
Museum and Visitor Center on the street level of its Headquarters at 801
9^th^ Street in Washington, DC. However, except for a possible project
that would provide access from the area to restrooms already located on
the same floor, construction on the Mint Museum and Visitor Center
currently remains suspended, pending Congressional approval of
additional work.

In addition, the United States Mint is currently seeking a vendor to
create a street-level window display at Headquarters that would market
the Mint's web site and commemorative coins. The United States Mint is
also considering installing cabinets displaying current Mint products in
the lobby and rotunda of the Headquarters building.

**A Look Ahead**

**[New Mint Deputy Director]{.underline}**

David A. Lebryk, Deputy Assistant Secretary for Fiscal Operations and
Policy at the Treasury Department, joined the United States Mint as
Deputy Director on October 6.

Before joining Fiscal Operations and Policy at the Treasury Department
in 1997, Mr. Lebryk served as Acting Deputy Assistant Secretary for
Human Resources. Between 1995 and 1996, he was responsible for a public
education campaign introducing the newly designed Series 1996 currency.
He also previously served as a Special Assistant to the Deputy Secretary
and the Under Secretary for Domestic Finance. He joined the Treasury
Department in 1989 as a Presidential Management Intern in the Office of
the Assistant Secretary for Policy Management and Counselor to the
Secretary.

Mr. Lebryk holds a Master of Public Administration from the John F.
Kennedy School of Government, and a Bachelor of Arts degree in Economics
from Harvard College.

[^1]: ^?^ LTA rates are based upon the number of **lost time** accidents
    occurring per 200,000 work hours. All LTA rates cited in this report
    were based upon the actual number of hours worked by employees.
    (This method for calculating LTA rates is consistent with that used
    by all other Treasury bureaus.) By contrast, LTA rates cited in the
    United States Mint's previous PEF reports were based upon the number
    of accidents that occurred per 200,000 hours of employment payment.
    Any discrepancy between LTA rates cited in this report and LTA rates
    cited in previous PEF reports is due to differing methods used for
    calculating work hours.