www.usmint.gov

TREASURY

U N ITE D STATES MI N T

TREASURY

U N ITE D STATES MI N T

09-286 annual report_Cover.indd 1 
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TREASURY

U N ITE D STATES MI N T

TREASURY

U N ITE D STATES MI N T
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Table of Contents
 

Financial Highlights 2
 

Director’s Letter 3
 

Organizational Profile 7
 

Our Goals


 Exclusive Brand Identity 9


 Effective Coin and Medal Portfolio 12


 Excellence in Coin Design 16


 Operational Efficiency and Highest Quality Standards 19


 Optimal Workforce and Workplace Culture 22
 

Management’s Discussion and Analysis
 

Operating Results by Segment
 

Message from the Chief Financial Officer 26
 

Circulating 28
 

Bullion 33
 

Numismatic 36
 

Transfer to the Treasury General Fund 41
 

Performance Goals, Objectives and Results 42
 

Analysis of Systems, Controls and Legal Compliance 46
 

Limitations of the Financial Statements 48
 

Independent Auditors’ Report 49
 

Financial Statements 50
 

Notes to the Financial Statements 54
 

Required Supplementary Information 70
 

Independent Auditors’ Report on Internal Controls 71
 

Exhibit I Status of Prior Year Significant Deficiencies 73
 

Independent Auditors’ Report on Compliance and Other Matters 74
 

Appendix I: FY 2009 Coin and Medal Products 75
 

1
 
(dollars in millions) 

Value of United States Mint Sales

 Circulating

 Numismatic Sale of Circulating Coins

 Bullion Program

 Numismatic Program 

Gross Cost

 Circulating

 Numismatic Sale of Circulating Coins

 Bullion Program

 Numismatic Program 

Seigniorage1

 and Program Net Income2

 Circulating Seigniorage

 Numismatic Seigniorage

 Bullion Program Net Income

 Numismatic Program Net Income

 2009 

$ 777.6 

$ 25.4 

$ 1,694.8 

$ 414.6 

$ 349.8 

$ 6.1 

$ 1,662.1 

$ 392.8 

$ 427.8 

$ 19.3 

$ 32.7 

$ 21.8

 2008 

$ 1,294.5 

$ 29.6 

$ 948.8 

$ 527.6 

$ 588.3 

$ 7.1 

$ 931.0 

$ 467.7 

$ 706.2 

$ 22.5 

$ 17.8 

$ 59.9

 2007 

$ 1,727.8 

$ 36.1 

$ 356.1 

$ 515.4 

$ 722.6 

$ 9.0

$ 351.6 

$ 466.6 

$ 1,005.2 

$ 27.1 

$ 4.5 

$ 48.8

 2006 2005 

$ 1,271.9

$ 24.4 

$ 536.6 

$ 490.5 

$ 603.4 

$ 10.5 

$ 524.4 

$ 417.2 

$ 668.5 

$ 13.9 

$ 12.2 

$ 73.3

$ 1,144.8 

$ 37.9 

$ 270.7 

$ 317.5 

$ 445.4 

$ 14.6 

$ 265.2 

$ 244.3 

$ 699.4 

$ 23.3 

$ 5.5 

$ 73.2 

 (39.9%)

 (14.2%)

 78.6% 

(21.4%)

 (40.5%)

 (14.1%)

 78.5% 

(16.0%)

 (39.4%)

 (14.2%)

 83.7% 

(63.6%) 

% Change 

2008 to 2009

09-286 annual report.P5.indd 2 12/10/09 

Financial Highlights
 

2,912.4 

2,800.5 

Total Dollar Value of Sales 

(dollars in millions) 

1,085.6 2,635.4 

Total Seigniorage and Net Income 

(before Protection Cost, dollars in millions) 

825.0

2,323.4 775.0 750.0 750.0 

801.4 806.4 767.9

1,770.9 

501.6 

Transfer to the Treasury General Fund 

(dollars in millions) 

2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 

11.4 11.1 10.7 27.6 

16.1 9.5 

Shipments to the Federal Reserve Banks 

(coins in billions) 

8.0 14.0 14.0 

18.4 10.0 

11.9 

5.2 9.0 8.3 

Bullion Sales 

(ounces of bullion sold in millions) 

Numismatic Sales 

(net units shipped in millions) 

2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009

1 Seigniorage is the face value of circulating coins sold to the Federal Reserve Banks or the public less the total cost of production. 

2 Net Income is the sales revenue of numismatic or bullion coin products less the total cost of production. 

2
 

475.0 
09-286 annual report.P5.indd 3 12/1

Edmund C. Moy 

United States Mint Director 

To the American People, Members of the United States Congress, 

the United States Department of Treasury, Our Customers, 

and Our Employees, 

Coin talk is part of the American lexicon: A penny for your thoughts. Two sides of the same coin. 

Stop on a dime. Let me put my two cents in. Coin a phrase. Not worth a plugged nickel. A penny 

saved is a penny earned. Don’t take any wooden nickels. 

Why do Americans care so much about coins? I often ask myself this question as I meet excited 

children at a coin launch, talk with impassioned collectors who want to tell me how we are doing 

or watch a cashier carefully count out the change from my purchase at the convenience store. 

At the United States Mint, we believe the answer is that we are integral to the fabric of our Nation. 

Coins are part of the common language of America and lifeblood of commerce, connecting us all. 

Coins bridge generations and bring people together. 

• To encourage an understanding of American history, geography and culture, a couple helps 

their three children search change and collect the 50 State Quarters®, then the District 

of Columbia and U.S. Territories Quarters. The whole family looks forward to the United 

States Mint America the Beautiful QuartersTM Program. 

• To teach counting, an elementary teacher starts with pennies and then graduates to nickels, 

dimes and quarters to teach simple arithmetic. 

• A blind child reads Braille on an American coin for the first time—the 2009 Louise Braille 

Bicentennial Silver Dollar. 

• A collector who has always admired the golden age of coin-making and coveted the unobtainable 

1907 Double Eagle, gets the opportunity to buy a 2009 Ultra High Relief Double Eagle Gold 

Coin, a dream come true. 

Through these common and special moments in our lives, United States Mint coins connect us 

with the core values of America. From the great promise of the banner of liberty on the obverse 

to e pluribus unum on the reverse, a coin is a small piece of the ongoing American experience, 

linking us in an unbroken line to our country’s—and the United States Mint’s—origins in 

the Constitution. 

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When you hold a well-traveled or brightly gleaming United States Mint coin in your hand, you 

connect directly to the wellspring of our Nation’s greatness, its future hope and all the stories— 

yours and mine included—that unite us. 

Last year, we introduced a new annual report format that looked more like a publicly traded 

company’s. Our goal was to be more transparent so that our stakeholders could hold us more 

accountable. Many of you liked the format, and this year we’ve tried to provide an even clearer 

view of our results for 2009. This year’s report also features pictures of our employees, coins and 

medals and facilities. 

The big story in Fiscal Year (FY) 2009 was the recession. The United States Mint is no stranger 

to recessions, as we’ve survived and thrived through 33 of them since 1854. But the severity and 

rapidity of this recession challenged us and affected all three lines of our coining operations. 

CIRCULATING COINS Our circulating coin production was at a 45-year low with fewer cash 

transactions because of the slow economy and Americans cashing in coins they’d been saving. 

We were able to keep our seigniorage margins up through lower metal costs and improvements 

in the market share of $1 coins among the denominations, but the total amount of seigniorage is 

the lowest we’ve seen in 12 years. The Federal Reserve Bank and the United States Mint forecast 

continued low circulating coin demand for FY 2010. 

BULLION COINS Our bullion sales approached $1.7 billion, our highest total ever and nearly 

80 percent above last year’s sales revenue. In FY 2008, bullion accounted for 34 percent of our 

total sales revenue. In FY 2009, it was 58 percent. We were able to meet demand for 22-karat 

gold and silver one-ounce bullion coins by the third quarter of FY 2009. Our West Point facility 

increased its output by 50 percent from last year, adding one bullion coining press but no 

additional personnel, while also achieving an improved safety record. By law, the purpose of 

the bullion coin program is to make precious metal coins available at minimal cost to investors; we manage to just under a two-percent margin, so our record bullion sales did not have a 

substantial impact on net income. 

NUMISMATIC PRODUCTS Our numismatic business held its own in very tough retail conditions, helped by the success of our new product, the 2009 Ultra High Relief Double Eagle Gold 

Coin. Sales of other precious metal numismatic products were significantly hurt by the high 

demand for bullion. By law, we must meet the public’s demand for our gold and silver bullion 

coins before we can offer our signature numismatic gold and silver proof coins. We have worked 

to stay ahead of bullion demand and hope to resume some American Eagle and American Buffalo 

numismatic product sales in FY 2010. 

The bottom line is that, even though the United States Mint grew top line revenue to a recent high 

of $2.9 billion, our transfer to the Treasury General Fund is small compared to recent years. 

We made progress on our five strategic goals: branding; product portfolio; coin and medal design; 

operational efficiency; and developing an optimal workforce and workplace culture. There are 

several things I want to highlight. 

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BRANDING After much research and feedback, our brand promise became clear: Connecting 

America through Coins. With our brand platform established, we are in the process of developing 

a consistent visual style, voice, and experience that we want our stakeholders to see, hear and 

feel. We are excited about launching our branding initiative because it will define who we are and 

the role we play in serving the more than 300 million citizens who depend on us. 

PRODUCT PORTFOLIO We conducted a thorough assessment of the 550 products in our product portfolio. As a result of that assessment, we stopped producing products our customers were 

not buying. This will allow us to focus efforts on providing products with the broadest appeal 

and invest in new products like the 2009 Ultra High Relief Double Eagle Gold Coin. We offered 

the discontinued inventory in a limited-time public sale, which generated $2.7 million in revenue. 

COIN AND MEDAL DESIGN We created a white paper defining what artistic excellence means 

to the United States Mint and developed a tactical plan that moves us in the direction of creating 

better-looking coins. The United States Mint’s coins won awards in three of ten categories in last 

year’s Coin of the Year Awards. 

OPERATIONAL EFFICIENCY Low coin demand allowed us to implement much needed 

equipment maintenance, capital investments and employee training that should result in long-term 

efficiency gains. From measuring equipment efficiency to refining our quality measures, we established baselines we are committed to exceed. 

OPTIMAL WORKFORCE AND WORKPLACE One key element of success for optimizing 

our workforce and workplace culture is to improve employee safety. This year, we reduced our 

already very small accident rate from 4.10 to 2.50 recordable incidents per 100 full-time workers, 

which places us among the elite in American manufacturing. Additionally, the Voluntary Protection Program at the United States Mint at Philadelphia won recertification from the Occupational 

Safety and Health Administration. I’m proud to say that we had a very safe year. 

I went into some detail about our strategic realignment last year. This year, we expanded strategic 

planning from senior executives and union leadership to departmental managers and supervisors. 

Ultimately, it’s our goal to have every employee at the United States Mint participate in various 

stages of our strategic planning process; know what their roles, responsibilities and performance 

metrics are; and be held accountable and rewarded for their contributions to accomplish the 

strategic plan. 

We do have some challenges facing us for FY 2010. 

DESIGN CAPACITY Our design capacity is stretched quite thin, and we must develop new ways 

to design our coins and medals on a timely basis, yet create them with greater artistic excellence. 

New designs upcoming in FY 2010 are as follows: the fourth Lincoln Bicentennial One-Cent 

Coin, the 2010 Lincoln One-Cent Coin reverse, the final commemorative quarter-dollar coin in 

the 2009 District of Columbia and U.S. Territories Quarters Program, four United States Mint 

America the Beautiful QuartersTM, four Presidential $1 Coins, one Native American $1 Coin, four 

First Spouse Gold Coins, the Boy Scouts of America Centennial Commemorative Coin, the American Veterans Disabled for Life Commemorative Coin and several Congressional Gold Medals. 

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Front Row Left to Right: Cliff Northup, Director of Legislative Affairs; Dennis O’Connor, Chief of Protection;
 

Richard Peterson, Associate Director of Manufacturing; Edmund C. Moy, Director; David L. Kim, Chief 


of Staff; B. B. Craig, Associate Director of Sales and Marketing; Marc Landry, Philadelphia Plant Manager
 

Back Row Left to Right: Patrick M. McAfee, Director of $1 Coin Programs; Patricia M. Greiner, Chief
 

Financial Officer; Larry Eckerman, San Francisco Plant Manager; Eric Anderson, Executive Secretary; 


Mike Stojsavljevich, Chief Strategy Officer; Tom Jurkowsky, Director of Public Affairs; Andrew D. Brunhart, 


Deputy Director; David M. Croft, Denver Plant Manager; Daniel P. Shaver, Chief Counsel; Debra Tomchek, 


Associate Director of Workforce Solutions; Ellen McCullom, West Point Plant Manager
 

CIRCULATING COIN METAL CONTENT While metal prices fell during the global recession, 

thus reducing our losses on pennies and nickels, base metal prices have begun to rise as the world 

economy begins to recover. Higher metal prices will result in reduced seigniorage that ultimately 

negatively affects the taxpayer. 

RECORD LOW PRODUCTION The current circulating coin demand forecast from the Federal 

Reserve Bank projects similar orders for FY 2010 as in FY 2009. This means operating another 

year at a historic production low. We do, however, expect high gold and silver bullion coin 

demand to continue. 

WORKPLACE CULTURE Our workplace culture must improve. For the second time in four 

years, the United States Mint ranked near the bottom of the Federal Human Capital Survey. 

While we’ve made progress on some internal measures, such as our Goalsharing report card, we 

must do better to be one of the Federal Government’s best places to work. 

Changing the United States Mint from “business-as-usual” to an organization that is forward 

leaning and world class requires hard work and perseverance over the long term. Our efforts 

are made more complicated by the difficult economic environment. But we are determined to do 

what is right for the American people, and that is our greatest motivation. It is times like these 

that separate good organizations from the best. We are committed to becoming world class in all 

measures, and today, we are firmly on that path. 

Sincerely, 

Edmund C. Moy 

Director 

United States Mint 

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Organizational Profile
 

Established in 1792, the United States Mint is the world’s largest coin manufacturer. Our vision 

is to embody the American spirit through the creation of our Nation’s coins and medals. The 

men and women of the United States Mint serve the Nation by exclusively and efficiently creating 

the highest quality, most beautiful and inspiring coins and medals that enable commerce; reflect 

American values; advance artistic excellence; educate the public by commemorating people, places 

and events; and fulfill retail demand for coins. 

The United States Mint is committed to achieving efficient operations and providing value to the 

American people. Since Fiscal Year (FY) 1996, the United States Mint has operated under the 

United States Mint’s Public Enterprise Fund (PEF). As authorized by Public Law 104-52 (codified 

at 31 U.S.C. § 5136), the PEF enables the United States Mint to operate without an appropriation. 

We generate revenue through the sale of circulating coins to the Federal Reserve Banks (FRB), 

numismatic products to the public and bullion coins to authorized purchasers. Moneys in excess 

of anticipated needs of the PEF are transferred to the United States Treasury General Fund. 

The United States Mint operates six facilities and employs approximately 1,900 employees across 

the United States. Each facility performs unique functions critical to our overall operations. 

Administrative and oversight functions are performed at our Headquarters in Washington, D.C. 

Manufacturing facilities in Philadelphia, Pennsylvania, and Denver, Colorado, produce coins of all 

denominations for circulation. Both facilities also produce dies for striking coins. All sculpting 

and engraving of circulating and numismatic coin and medal designs is performed in Philadelphia. 

Production of numismatic and bullion products is primarily performed at facilities in San Francisco, 

California, and West Point, New York. All four plants produce commemorative coins as authorized 

by laws passed by Congress and approved by the President. The United States Bullion Depository 

at Fort Knox, Kentucky, stores and safeguards United States gold and silver bullion reserves. 

PRIMARY RESPONSIBILITIES 

The United States Mint’s primary responsibilities include the following: 

CIRCULATING The United States Mint is responsible for enabling commerce by minting and 

issuing circulating coins in amounts necessary to meet the needs of the United States. We mint 

and issue circulating coins to the FRB for distribution to the Nation’s depository institutions. 

Commercial banks and other financial institutions then place coins into circulation to meet the 

demand of retailers and the public. Depository institutions can return coins to the FRB when they 

have more than necessary to meet demand. The United States Mint issues circulating coins to the 

FRB at face value. The net return, known as seigniorage, is the difference between the face value 

and the cost of producing circulating coinage. Seigniorage is transferred to the Treasury General 

Fund to help finance the national debt. 

BULLION The United States Mint manufactures and issues gold, silver and platinum bullion 

coins through a network of authorized purchasers, which include precious metal and coin dealers, brokerage companies and participating banks. Bullion coins provide investors a simple and 

tangible means to own coins whose weight, content and purity are guaranteed by the United 

States Government. Coins are available to the general public through authorized purchasers. 

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The United States Mint 

at Philadelphia strikes 

bronze duplicates 

of many Congressional 

Gold Medals that 

are available for 

sale to the public. 

VISION: To embody 

the American Spirit 

through the creation 

of our Nation’s 

coins and medals. 

MISSION: The men 

and women 

of the United States Mint 

serve the Nation 

by exclusively 

and efficiently creating 

the highest quality, 

most beautiful 

and inspiring coins 

and medals that enable 

commerce, reflect 

American values, advance 

artistic excellence, 

educate the public 

by commemorating 

people, places and events, 

and fulfill retail 

demand for coins. 

NUMISMATIC The United States Mint prepares and distributes numismatic items, including proof and uncirculated 

coins, coin sets, commemorative coins and medal products. 

These products are manufactured and specially packaged for 

collectors and other members of the public who desire highquality versions of the Nation’s coinage as gifts or mementos. 

Through commemorative coin programs passed by Congress 

and approved by the President, the United States officially 

honors people, places, and events. By law, such programs 

include a surcharge in the price of the commemorative coin 

that is authorized to be paid to recipient organizations for 

worthy causes with evident public support. Customers can 

purchase numismatic coin and medal products through the 

United States Mint website, by phone order, or by mail order. 

Public points of sale are also available at the United States 

Mint facilities at Philadelphia, Denver and Washington D.C. 

and a United States Mint kiosk in Union Station in Washington D.C. The objective of the United States Mint numismatic 

program is to make numismatic products accessible, available, 

and affordable to the American public. We make every effort 

to control costs and keep the prices of numismatic items as 

low as practicable. Any net proceeds from the sales of numismatic products are transferred to the Treasury General Fund 

to help reduce the deficit or fund current Federal Government 

programs or operations. 

MEDALS As part of the numismatic program, the United 

States Mint prepares and strikes National and other medals. Congressional Gold Medals are selective awards authorized by Congress and approved by the President to honor 

specific individuals in recognition of their achievements and 

contributions. The Congressional Gold Medal is widely 

considered the highest honor the Nation can bestow. The 

United States Mint also strikes, and makes available for sale 

to the public, bronze duplicates of these medals, as well as 

“list” medals, which are often a part of continuing medal 

series, such as the Presidents of the United States and Historic 

Buildings of the United States. 

PROTECTION The United States Mint is responsible for 

protecting over $240 billion in United States assets stored in 

our facilities. The Protection Department safeguards non-United States Mint assets in our custody, including gold and silver 

bullion reserves held at the United States Bullion Depository 

at Fort Knox, Kentucky, as well as United States Mint assets, 

such as our products, employees, facilities and equipment. 

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GOAL 1: EXCLUSIVE BRAND IDENTITY
 

The United States Mint is a well-established brand within both 

the national and international numismatic community. 

The United States Mint believes building a trusted, highly-recognized brand is vital to expanding 

our customer base, ensuring continued success of numismatic and bullion programs and positively 

affecting the workforce culture. 

THE UNITED STATES MINT BRAND In FY 2009, we conducted a research initiative to 

evaluate our current brand’s strengths and weaknesses. The results highlighted the following 

organizational strengths that our brand should encompass. The United States Mint is a symbol 

of our Nation, whose authority is founded along with the United States by the Constitution. We 

contribute to the well-being of our economy by providing coins necessary to conduct trade and 

commerce. Our products unlock history and inspire discovery. Coins and medals remind us 

of where we come from as well as what is important today. We protect our Nation’s assets, 

particularly safeguarding America’s gold reserves. Finally, our organization is committed to 

public service and the constant pursuit of excellence. Based on the research initiative’s results and 

conclusions, we set out to establish a new branding platform, the foundation upon which all our 

future decisions, both strategic and creative, will be made. 

Our new branding platform centers around one promise: Connecting America through Coins. 

The United States Mint enables experiences that bring people together, starting with everyday 

commerce and extending beyond. Our coins and medals connect people to American history and 

values. Each coin we mint is a small share in the ongoing American experience, linking us in 

an unbroken line to our country’s origins. The promise also highlights our business, increasing 

the public’s recognition of the United States Mint as the exclusive origin of the Nation’s coins 

and medals. In FY 2010, we plan to begin structuring all facets of our organization around this 

branding platform, including all communications and product packaging. 

The foundation of a trusted, highly recognized brand is high quality products and services. 

Maintaining product quality and customer service is critical to attracting new customers, fostering the United States Mint brand and expanding our customer base into underserved segments 

of the population. 

TRANSITION TO NEW CALL AND FULFILLMENT CENTER The United States Mint transitioned to a new call and order fulfilling system on January 3, 2009. In the first few months following this transition, we experienced some missteps. We did not ensure that initial staffing levels 

for the new call center and warehouse facility were adequate. Speed to answer customer calls, 

call length and order fulfillment all suffered. Customer satisfaction survey respondents reported 

wait times were longest among those who called in January and February of 2009. Satisfaction 

with phone interaction and representatives’ overall knowledge, helpfulness and ability to answer 

questions were also lowest during this time period. Some customers waited more than five weeks to 

receive in-stock products, well over the normal one- to two-week order fulfillment time. 

The United States Mint initiated a rigorous action plan to correct these initial issues. We worked 

to increase staffing levels and improve customer service representative training at the call center. 

We implemented numerous process improvements, such as adjusting the system menu options 

to give call center management more efficient controls. Warehouse processes were streamlined 

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Most coin 

production 

starts with 

coil — rolled-up 

strips of flat 

metal. Operators 

transport and load 

coil onto a wheel 

that feeds into 

a blanking press. 

From the sheet, 

the blanking press 

punches out round, 

plain-surfaced 

disks called 

cut blanks. 

according to product demand and availability. Nearly all elements of the action plan were 

implemented by the beginning of the third quarter of FY 2009. As a result, wait times, call length 

and order fulfillment time began to return to acceptable levels. At the close of FY 2009, more 

than 80 percent of calls to the call center were answered within 20 seconds or less. All orders 

of in-stock items were fulfilled within four days of receipt. Maintaining and further enhancing 

customer service in this area will be a priority in FY 2010. 

2009 ULTRA HIGH RELIEF DOUBLE EAGLE GOLD COIN We launched the 2009 Ultra 

High Relief Double Eagle Gold Coin for sale to the public on January 22, 2009. First day sales 

alone generated approximately $33.7 million in revenue. Unfortunately, we encountered some 

problems delivering finished products to these initial customers in a timely manner. Because of 

the unavailability of gold planchets, quality issues with the 2009 Ultra High Relief Double Eagle 

Gold Coin companion book and incorrect shipping procedures, we suspended shipments of the 

product for various intervals to allow for corrective action. Uninterrupted product shipments 

resumed in March 2009. 

The United States Mint conducted a survey of initial 2009 Ultra High Relief Double Eagle Gold 

Coin customers in March and April of 2009. We asked a sample of customers who ordered the 

coin on the launch date to complete a questionnaire on their experience. The survey allowed us to 

identify and correct problems with call center and order fulfillment systems. It also provided these 

valued customers the opportunity to evaluate our performance in supplying this unique product. 

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WEB INTEGRATION The United States Mint currently maintains two Web sites: the United 

States Mint’s public information site (www.usmint.gov) and our e-commerce catalog site 

(http://catalog.usmint.gov). In the first quarter of FY 2007, we conducted usability studies to evaluate the utility and convenience of these sites. Studies indicated confusion among some visitors 

to the two sites. Many accessed the sites to obtain general information on the United States Mint 

as well as purchase numismatic products online. Visitors reported difficulty navigating between 

the sites to obtain desired information. Subsequent ongoing surveys conducted on our Web sites 

further supported these initial findings. 

In response, we launched the Web Site Integration Project to integrate and consolidate the United 

States Mint’s public information and e-commerce catalog sites to create a single, holistic online 

Web presence. This two-year initiative will integrate all existing content and functions. It will also 

consolidate the technical environments for back-end maintenance and development. An integrated 

United States Mint Web site will allow for a coherent Internet presence to visitors; a seamless 

browsing experience; and a comprehensive and comparative collection of Web statistics. Utilizing 

a common platform, hardware, software and information technology support will reduce operating 

costs and increase Web site management efficiency. In FY 2009, we began the project by drafting 

all content requirements and initiating the site’s design phase. We plan to continue integration 

and development tasks in 2010. 

American Eagle 

Silver Bullion coins 

are minted at the 

United States Mint 

at West Point. 

The force of each 

stamping press 

is adjusted 

according to 

the blank’s size, 

hardness, design 

intricacy and relief. 

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GOAL 2: EFFECTIVE COIN AND MEDAL PORTFOLIO 

Our goal is to develop the optimal product portfolio to 

maximize our customer base and units sold while minimizing 

customer acquisition costs. 

The enactment of various legislation has allowed us to expand product lines in both numismatic 

and circulating coin programs. While sales of both new and core recurring products have been 

strong, we recognize the need to continually make improvements in the portfolio of products 

we offer. 

2009 PRODUCT PORTFOLIO ASSESSMENT In November 2008, we conducted a thorough 

assessment of our numismatic coin and medal product portfolio. At the time, our portfolio 

included more than 550 individual coin and medal products with approximately 10 intersecting 

product lines. The assessment was intended to prioritize current product offerings as well as new 

product investments. 

We evaluated each discretionary product based on its contribution to sales volume. All products 

that consisted of at least one percent of total unit sales were retained for the 2009 product portfolio. 

Of the 550 individual products assessed, 186 products (156 coin and 30 medal offerings) were 

retained in the new portfolio. These retained products made up over 80 percent of the United States 

Mint’s total numismatic revenue and over 95 percent of total numismatic units sold in FY 2008. 

Inventory of all discontinued products was offered to our customers in a special “Last Chance 

Sale.” From November 15, 2008 to December 19, 2008, the United States Mint used this noorder-limit sale to deplete inventory of discontinued products. Through the Last Chance Sale, 

we sold about 67,600 units of excess or discontinued inventory, generating approximately $2.7 

million in numismatic revenue. Sales of 2007 annual sets alone generated half of the units sold 

and about 37 percent of the revenue. We will analyze our portfolio annually to ensure that we 

continue to offer products with the broadest appeal to Americans and the numismatic community. 

CONCLUSION OF THE 50 STATE QUARTERS® PROGRAM The United States Mint issued 

the final coin of the 50 State Quarters Program, commemorating Hawaii, in November 2008. 

This unprecedented ten-year initiative honoring the Nation’s states has been hailed as the most 

successful coin program in the Nation’s history. We were proud to spearhead a program with so 

many benefits for the United States. The 50 State Quarters Program met the financial expectations 

of its authorizing legislation. The United States Mint issued 34.3 billion quarters for circulation, 

generating $8.6 billion in revenue and $6.3 billion in seigniorage. We estimate that the program 

generated $4.1 billion in revenue and $3.0 billion in seigniorage that we would not have achieved 

without the program. The sale of 50 State Quarters numismatic products generated another 

$485.4 million in revenue and $137.7 million in earnings and seigniorage through FY 2009. 

Congress envisioned each state’s commemorative quarter design would increase knowledge of 

its history, geography, and culture. We worked with state officials, government representatives, 

citizens groups, historical societies, educators, numismatists and many others to achieve this goal. 

An estimated 3.5 million people participated in the design process for their state’s quarter, either 

through concept submission or voting. About 147 million people collected the commemorative 

quarters. The popularity of the 50 State Quarters Program also afforded us further opportunity 

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09-286 annual report.P5.indd 13 12/10/09 

Bags and Rolls Quarter Proof Set 

$196.8 $144.5 

Other Silver Quarter $17.0 Proof Set First Day Coin $72.2 Covers 

$42.9 

Maps 

$12.0 

Bags and Rolls Quarter Proof Set 

$65.8 $41.0 

Other Silver Quarter 

$2.5 Maps 

$2.3 

First Day Coin 

Covers 

Proof Set 

$15.1 

$11.0 

13
 

50 State Quarters Numismatic Revenue 

(dollars in millions) 

50 State Quarters Numismatic Net Income and Seigniorage 

(dollars in millions) 

to educate the Nation’s youth. We provided nearly 6.6 million electronic and hardcopy 50 State 

Quarters lesson plans for teachers and students to explore each state’s quarter design, history, 

people and natural resources. 

Along the way, we endeavored to enhance the program by modernizing coin production to achieve 

necessary capacities; enriching artistic contributions to coin designs; and improving the processes 

for design creation, selection and approval. Several commemorative quarter designs received the 

numismatic world’s most prestigious awards for coin artistry. The 50 State Quarters Program’s 

success opened the door for a new generation of circulating commemorative coin programs, 

including the Westward Journey Nickel SeriesTM, the 2009 District of Columbia and U.S. Territories Quarters Program, the 2009 Lincoln Bicentennial One-Cent Coin Program, the Presidential 

$1 Coin Program, the Native American $1 Coin Program and the United States Mint America 

the Beautiful QuartersTM Program. 

2009 DISTRICT OF COLUMBIA AND U.S. TERRITORIES QUARTERS PROGRAM 

In January 2009, the United States Mint introduced the 2009 District of Columbia and U.S. 

Territories Quarters Program, a one-year initiative to honor the District of Columbia and the 

five U.S. Territories. In FY 2009, we minted and issued the first five coins with reverse designs 

emblematic of the District of Columbia, the Commonwealth of Puerto Rico, Guam, American 

Samoa and the United States Virgin Islands. 

The United States Mint issued 432.5 million quarters in the 2009 District of Columbia and U.S. 

Territories Quarters Program for circulation in FY 2009, generating $108.1 million in revenue 

and $48.2 million in seigniorage. The sale of 2009 District of Columbia and U.S. Territories 

Quarters numismatic products generated another $11.3 million in revenue and $6.0 million 

in earnings and seigniorage. The United States Mint will release the final quarter, honoring the 

Commonwealth of the Northern Mariana Islands, in November 2009. 

2009 LINCOLN BICENTENNIAL ONE-CENT COIN PROGRAM In FY 2009, we issued the 

first three of four one-cent coins in recognition of the bicentennial of President Abraham Lincoln’s 

birth and the 100th anniversary of the first issuance of the Lincoln Cent. The four coins’ reverse 

designs each represent a major aspect of President Lincoln’s life. 

The new one-cent coins were issued at approximately three-month intervals starting with the first 

coin in January 2009. The United States Mint issued 1.9 billion Lincoln Bicentennial One-Cent 

Coins for circulation in FY 2009, generating $19.2 million in revenue. We also minted and issued 

numismatic one-cent coins in the exact metallic content contained in the 1909 one-cent coin. 
09-286 annual report.P5.indd 14 12/10/09 

An operator 

at the United 

States Mint 

at Denver feeds 

$1 coin blanks 

into a weigh 

belt that feeds 

the annealing 

furnace, which 

softens blanks 

prior to stamping. 

These numismatic versions were included in the United States Mint’s annual set product offerings 

and a special Lincoln Coin and Chronicles Set. We also offered specially packaged two-role sets 

of the circulating coins for sale directly to the public. The sale of these two-roll sets generated 

$5.5 million in revenue and $1.2 million in earnings and seigniorage in FY 2009. A 2009 Lincoln 

Bicentennial One-Cent Proof Set is scheduled for release in FY 2010. 

$1 COIN PROGRAMS The United States Mint continued America’s tribute to the Nation’s Presidents in FY 2009, issuing four Presidential $1 Coins featuring Presidents Van Buren, Harrison, 

Tyler and Polk. We also issued the 2009 Native American $1 Coin, the first in a series of coins with 

reverse designs honoring the important contributions made by Indian tribes and individual Native 

Americans to the history and development of the United States. The 2009 coin commemorates 

the Native American contribution to agriculture. The central figure of “Sacagawea” remains on 

the obverse, but reverse designs will change each year to recognize a different contribution. 

The Presidential $1 Coin Act (Public Law 109-145) mandates that the United States Mint identify, 

analyze and overcome barriers to the robust circulation of $1 coins. Likewise, the Native American 

$1 Coin Act (Public Law 110-82) requires the United States Mint to carry out an aggressive, 

cost-effective, continuing campaign to encourage commercial enterprises to accept and dispense 

Native American $1 coins. Promoting circulation and sustained usage of $1 coins also affords 

potential cost-savings for the Federal Government and taxpayers because the coins can be minted 

and issued at higher seigniorage per dollar than any other denomination. 

FOUR CITY PILOT The United States Mint developed a three-pronged pilot program to promote 

circulation of the $1 coins in FY 2008. The pilot focused on recruiting retailers to accept and 

dispense $1 coins in small cash transactions and facilitating their ordering of $1 coins through 

banks. Print and television advertising and public relations initiatives supported the retailer 

recruitment and activation. The marketing campaign centered on the durability and longevity of 

the coins; the 100 percent recyclable materials used to produce coinage; and the billions of dollars 

the Nation could save over time by using the $1 coins. 

From August through November 2008, we launched the pilot in four markets across the United 

States to evaluate each strategy and its effectiveness in increasing $1 coin usage. We selected the 

following four cities: Grand Rapids, Michigan; Portland, Oregon; Charlotte, North Carolina; and 

Austin, Texas. These mid-sized markets not only were easier and more cost effective to manage, 

but also were demographically representative of the United States as a whole. We wanted to 

introduce and test each strategy on a small scale that, if successful, could be implemented at the 

national level. 

14
 
09-286 annual report.P5.indd 15 12/10/09 

Prior to the pilot, the number of coins the Federal Reserve Banks (FRB) paid out to commercial 

banks had been declining. Nationally, FRB $1 coin payments to banks fell 3 percent from the 

release of the John Quincy Adams Presidential $1 Coin prior to the pilot to the Martin Van Buren 

Presidential $1 Coin release during the pilot. We were able to reverse this trend within each pilot 

market and make notable gains. Overall, within the pilot markets, reported $1 coin payments to 

commercial banks for the same period increased an estimated 24 percent or 1.8 million coins. While 

our investment in the pilot was greater than this return, much of the gain was realized in the later 

weeks of the pilot when all stores of the participating retailers had fully converted to $1 coins. 

We conducted a national survey to measure transactional usage of $1 coins prior and subsequent 

to the pilot. Adults were asked if they had used a $1 coin to pay for something or make a purchase 

in the past 12 months. The survey also measured rates of $1 coin possession and awareness. The 

baseline survey was conducted in late July before launching any communications. The second 

survey was conducted in late November and early December following the pilot’s completion. 

Nationally, the percentage of respondents reporting they had used a $1 coin in a transaction declined slightly from 25 percent to 23 percent. Within the four markets, conversely, there was a statistically significant increase in the usage rate from 29 percent in the baseline survey to 33 percent 

following the pilot. This is a considerable achievement given that past campaigns for the Susan B. 

Anthony $1 Coin or the Sacagawea $1 Coin were unsuccessful at increasing usage of those coins. 

The key lessons we learned from the pilot experience are that retail activation is a driver of $1 

coin usage and focusing on large, national chains is essential to establishing robust $1 coin circulation. Six major retailers participated in the pilot. These retailers switched to the $1 coin to 

reinforce consumer perceptions of their goodwill, sustainability or “green” efforts. This was the 

first time the United States Mint achieved sustained, voluntary corporate commitments to distribute $1 coins. Working collaboratively with the headquarters staff of a national chain can yield 

thousands of outlets across the country accepting and dispensing $1 coins in everyday transactions. In addition to the pilot, we implemented new and enhanced existing efforts to increase $1 

coin usage this year. 

DIRECT SHIP We continued the Circulating $1 Coin Direct Ship Program throughout FY 2009. 

Initiated in June 2008, the Direct Ship Program provides $1 coins for sale directly to banks, small 

retailers, and the public in smaller volumes than available through traditional FRB distribution. 

In FY 2009, we distributed 85.2 million $1 coins through the Direct Ship Program (62.6 million 

Native American $1 Coins and 22.6 million Presidential $1 Coins). 

BULK SHIP The United States Mint initiated a Bulk Ship Program in August FY 2009 to offer 

an additional mechanism for interested customers to order $1 coins in larger quantities. This 

program provides banks and larger retailers the opportunity to purchase a minimum of $140,000 

in $1 coins directly from the United States Mint. In the initial two months of the program, we 

shipped 1.8 million Presidential $1 Coins through the Bulk Ship Program. 

FEDERAL ENTITIES We also continued efforts to assist Federal and other entities in complying 

with the requirements of the Presidential $1 Coin Act and the Native American $1 Coin Act. In 

late 2008, we worked with the Washington Metro Area Transit Authority (WMATA) to convert 

ticket machines at stations throughout Washington, DC and surrounding areas. All WMATA 

ticket machines began accepting and dispensing $1 coins in January 2009. 

15
 
09-286 annual report.P5.indd 16 12/10/09 

GOAL 3: EXCELLENCE IN COIN DESIGN 

Our products are exceptional artistic media for expressing 

our national character, memorializing our past and embodying 

our future. 

The United States Mint recognizes and embraces its responsibility to do more than merely craft 

coins and medals. Coins are one of the most visible and tangible representations of a country. 

Likewise, art is not a mere facet of society, but an embodiment and extension of it. American 

numismatic art should express the national character, memorialize the past, manifest the country’s 

aspirations and embody the future. 

WHAT IS ARTISTIC EXCELLENCE While prior successes in coin and medal design are 

noteworthy, the United States Mint strives to achieve new levels in American numismatic art. Our 

designs have tended to focus on literalism, functionality and the limitations of prescribed design elements. Too often, designs lacked a unifying balance or transcendent quality that clearly links them 

together as part of the body of American coinage. Ultimately, the United States Mint should produce 

art that serves as the highest aspiration of who we are as a country or what we seek to become. 

In 2009, the United States Mint produced a white paper establishing a philosophic path for 

achieving artistic excellence in the future. This document expressed the United States Mint’s 

genuine desire to regain its place in American art and prioritize art as central to our craft. It established the following five core principles of American numismatic design by which the United 

States Mint will judge our artistic output: 

UNIQUELY AMERICAN While bridging various styles, media and compositions, great American 

art commonly expresses the same intrinsically American themes. Likewise, American coinage 

should manifest a democratic character; liberty and freedom; the American landscape and a 

preference for simplicity; an enterprising spirit; and a struggle to be as great as our principles. 

EXEMPLIFIES THE CURRENT ERA OF CREATION Coin designs should appear distinctly 

modern and of the 21st century by embodying the prevailing artistic notions and conventions of 

the time. 

TELLS A GREAT STORY A great story gives meaning and purpose to a design. Art should 

make a statement whether evoking patriotism, describing Americans’ views of their country or 

memorializing important historic moments. 

ADVANCES THE CRAFT The United States Mint should advance the craft of coin and medal 

design both philosophically and practically. While greater emphasis is typically placed on new 

techniques and emerging technologies, equal weight should be placed on developing a design’s 

intellectual and philosophical context. 

AESTHETICALLY BEAUTIFUL The Nation’s coins and medals should be artistic masterpieces 

rather than mere tokens or representational items. Our works must be of such quality that they 

resonate broadly, providing Americans the opportunity to admire and appreciate the artistry of 

the United States Mint. 

By consistently adhering to these five principles, the United States Mint plans to engender a 21st 

century neo-renaissance in American coin and medal design. Our goal is for American coins and 

16
 
09-286 annual report.P5.indd 17 12/14/09 

Once the Secretary 

of the Treasury 

approves a coin 

or medal design, 

sculptor-engravers 

create threedimensional 

models digitally 

or by traditional 

sculpting. 

Sculptor-engravers 

manually sculpt 

drawings into clay 

with traditional 

tools and refine 

them using plaster 

or digitally sculpt 

and refine designs 

with innovative 

software tools. 

medals to be favorably compared with those of the Italian Renaissance, bearing designs 

that were considered the pinnacle of medallic art. 

In March 2009, we invited members of the Citizens Coinage Advisory Commission (CCAC) 

to evaluate and score designs of all coins issued in FY 2007 and FY 2008 on the five principles. Members scored each design based on how well it embodies each principle on a scale 

from zero to ten. This artistic review scoring process provides an instructive assessment of 

the artistic quality of our final products. It also provides a means to measure year-to-year 

improvement in artistic excellence, enabling the United States Mint to progress toward 

superior designs. 

Scores of FY 2007 and FY 2008 designs served as a baseline for subsequent years. Results 

clearly indicate our strengths in certain areas and need for improvement in others. Designs 

scored highest for being uniquely American but much lower for advancing the craft and 

exemplifying 21st century design. Scores held above the mid-point for telling a great 

story and being aesthetically beautiful. The average annual score for all designs declined 

slightly from 6.1 for FY 2007 designs to 5.9 for FY 2008 designs. 

In September 2009, CCAC members scored designs for all coins issued in FY 2009. Unfortunately, scores decreased in all categories from the prior two fiscal years. The largest 

declines occurred in uniquely American and aesthetically beautiful categories. The average 

annual score fell to 5.0 in FY 2009. We plan to further examine the reasons underlying 

this decline and implement several initiatives to enhance performance in FY 2010. 

Artistic Review Scores of Coin and Medal Designs 

7.8 

8.2 

6.7 

5.4 4.9 4.5 

6.5 

5.8 

5.1 4.6 4.4 

3.6 

6.0 

6.4 

5.1 

6.1 5.9 

5.0 

2007 2008 2009 

Uniquely 21st Century Tells a Great Advances the Aesthetically Annual 

American Design Story Craft of Coin/ Beautiful Average 

Metal Design 

17 
09-286 annual report.P5.indd 18 12/10/09 

RECREATING A MASTERPIECE The 2009 Ultra High Relief Double Eagle Coin is a uniquely 

American artistic expression – created by an American sculptor and crafted by an iconic American 

institution. In the early 1900s, President Theodore Roosevelt called for a “renaissance” in American coinage. He believed that the coins of the era needed to be more attractive and better embody 

America’s national identity and growing preeminence on the world stage. President Roosevelt 

appointed Augustus Saint-Gaudens, a renowned sculptor and artist, to redesign the Nation’s 

coins. Sharing President Roosevelt’s vision, Saint-Gaudens designed what has been called the 

most beautiful coin ever minted in the United States, the 1907 $20 Double Eagle Gold Coin. 

Saint-Gaudens and Roosevelt originally desired a high relief version of the 1907 Double Eagle. 

Unfortunately, the existing minting process was inadequate, and only a reduced relief coin was 

developed and mass produced. Saint-Gaudens’ full vision for the production of an ultra high 

relief coin was not realized until 2009. 

Through the advent of modern technology, the United States Mint was able to mass produce a contemporary, but faithful rendition of Augustus Saint-Gaudens’ original 1907 Double Eagle design. 

Employing digital scanning techniques, we captured Saint-Gaudens’ original coin plasters as digital 

data. The artwork was then digitally imposed on a spherical basin where cracks and imperfections 

were digitally repaired; relief heights were measured and analyzed; and designs were compared to 

originals from photographs and specimens held by the Smithsonian Institution. Once obverse and 

reverse designs were complete, a computer numerically controlled (CNC) machine using digitally 

controlled lasers accurately reproduced the designs on duplicate sets of master tooling. 

On November 24, 2008, at the United States Mint at West Point, Director Edmund C. Moy 

minted the historic first production strike of the 2009 Ultra High Relief Double Eagle Gold Coin. 

The first strike coin was later transferred to the Smithsonian Institution’s National Museum of 

American History. With the 2009 Ultra High Relief Double Eagle Gold Coin, the United States 

Mint closes one era and opens a new one. This new era is one in which American coins and 

medals not only continue to embody America’s unique spirit and identity, but also advance the 

craft and signal to the world that we are a country of artists, sculptors and innovators. 

COIN AWARDS Three United States Mint coins took top honors at the 2009 Coin of the Year 

(COTY) Awards at the World’s Money Fair in Berlin, Germany in February 2009. The COTY 

Awards recognize the work of mints worldwide. An international panel of professional numismatists and experts appraise coin submissions on the basis of excellence in artisanship, practicality 

and general appeal. Entries span a two-year production period, and finalists are chosen in 10 

categories. At the 2009 COTY Awards, the panel of judges designated the 2007 Jamestown 

400th Anniversary Commemorative Silver Dollar the “Most Historically Significant Coin.” The 

2007 Little Rock Central High School Desegregation 50th Anniversary Silver Dollar received the 

COTY Award for the “Best Contemporary Event Coin.” Finally, the George Washington Presidential $1 Coin was honored as the “Most Popular Coin.” 

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09-286 annual report.P5.indd 19 12/10/09 

GOAL 4: OPERATIONAL EFFICIENCY AND HIGHEST 

QUALITY STANDARDS 

We continually strive for efficient coin manufacturing and sales 

operations. Greater efficiency benefits the American people 

as well as our customers. 

The United States Mint is responsible for enabling commerce by minting and issuing circulating coins in amounts necessary to meet the needs of the United States. By reducing production 

and administrative costs, the United States Mint is able to transfer larger sums to the Treasury 

General Fund. Greater productivity and efficiency also allow us to keep the sale price of our 

numismatic products as low as practicable for our customers. 

EFFICIENT OPERATIONS IN CURRENT ECONOMIC ENVIRONMENT In FY 2009, the 

worsening economic environment challenged our ability to maintain efficient manufacturing 

operations but also presented opportunities for long-term efficiency gains. Poor economic conditions, uncertainty regarding traditional investments and concerns about future inflation evidently 

drove investor demand for bullion coins to unprecedented highs in FY 2009. We sold 27.6 million 

ounces of precious metal bullion coins in FY 2009, more than in any other year since the bullion 

program began in 1986. These unprecedented volumes stressed our suppliers, and we temporarily 

limited our bullion coin offerings. We set standard allocation and ordering limits so these scarce 

products were equitably distributed among authorized purchasers. We continued our efforts to 

increase the capacity of our supply chain while also increasing bullion production capacity. Our 

West Point facility acquired an additional press to increase minting capacity and achieved higher 

employee productivity. While demand remained strong, we were able to lift allocation and ordering limits to satisfy all investor demand for 22-karat gold and silver one-ounce bullion coins in 

June 2009. 

In contrast, low economic activity diminished demands on our circulating operations by reducing the need for coin used in commerce. Individuals and businesses returned more coins to the 

banking system, thus reducing the need for newly minted coin. Accordingly, our circulating coin 

production fell to a historic 45-year low. We instituted an organization-wide hiring freeze and 

implemented a comprehensive plan to take advantage of this period of low production by performing overdue maintenance. We completed certain 

Total Circulating Coin Production (coins in millions) capital improvements that are only possible when 

circulating production lines are idle. Low production 30,000 

volumes also afforded time to provide skill and 

25,000 safety awareness training to our employees. 

20,000 

15,000 

10,000 

5,000 

1969 1979 1989 1999 2009 

19
 

0 
09-286 annual report.P5.indd 20 12/10/09 

The physical 

vapor deposition 

coating system 

deposits a hard 

protective 

coating onto the 

surface of dies 

to extend die life 

and improve coin 

appearance. 

CAPITAL INVESTMENTS Each year, we plan capital improvements based on the individual 

needs of our facilities. We place highest priority on capital investments that ensure employee 

safety, as well as compliance with environmental and regulatory standards. Our Denver facility, 

which dates back to 1904, requires significant long-term infrastructure improvements. In FY 

2009, we delivered two major initiatives to replace the fire sprinkler system and upgrade the electrical switchgear in Denver. Each multi-million dollar project involved extensive work to bring 

the historic building up to modern standards, enhance employee safety and ensure reliable longterm operations. In FY 2009, we also initiated design and construction work for entry and exit 

infrastructure improvements at the United States Bullion Depository at Fort Knox. 

New coin legislation mandates a significant portion of our capital spending priorities. In FY 2009, 

we purchased a new coining press and edge-lettering tooling for our Philadelphia facility to produce 

coins required by the America’s Beautiful National Parks Quarter Dollar Coin Act (Act) (Public 

Law 110-456). The Act requires the United States Mint to mint and issue larger five-ounce silver 

bullion coins with the same designs as the America the Beautiful QuartersTM coins starting in 

2010. Finally, capital investments that enhance productivity ensure more efficient manufacturing 

operations in the long term. In FY 2009, we deployed physical vapor deposition (PVD) coating 

systems at Philadelphia and San Francisco to deposit chrome onto the surface of dies. Chrome is 

required to extend production life and improve coin appearance. This new surface coating process 

replaces older chrome electroplating techniques that are not as environmentally and worker 

friendly. The new PVD coating system eliminates these concerns and should extend die production 

life and improve stamping productivity. We will start up a third PVD coating system at our West 

Point facility in FY 2010. 

20
 
09-286 annual report.P5.indd 21 12/10/09 

Quality checks 

are conducted 

on the 2009 

United States Mint 

Uncirculated Coin 

Set automated 

packaging line 

at the United 

States Mint 

at Philadelphia. 

Each 2009 set 

contains two 

folders of 18 

coins, one folder 

from the United 

States Mint 

at Philadelphia 

and one from 

the United States 

Mint at Denver. 

HIGHEST QUALITY STANDARDS Product quality is a top priority for the United States Mint. 

To produce coins befitting the “Mint Condition” standard, we continually monitor and enhance 

our production processes. As a case in point, the 2009 Lincoln Bicentennial One-Cent Coin 

Program required the United States Mint to offer numismatic pennies in proof and uncirculated 

quality in the exact metallic content as the 1909 penny (an alloy containing 95 percent copper, 

3 percent zinc and 2 percent tin). Unfortunately, this metallic composition proved highly susceptible to tarnishing. In response, a team of quality, engineering and internal control employees 

established a control plan to reduce tarnishing in the copper alloy blanks and improve quality 

controls over blank supply. We conducted repeated experiments to improve control of the burnishing process (the cleaning and chemical treating of blanks). We subjected blanks to enhanced 

quality checks, particularly steam tests that accelerate aging and indicate the effectiveness of each 

change in the burnishing process. After the two month effort, our team significantly reduced the 

tarnishing in the copper alloy blanks. Even with this effort, we know that we are fighting the laws 

of chemistry and that, over time, the pennies using this composition will tarnish in much the same 

way as the coins did in 1909. 

Moving forward, we plan to further strengthen the quality controls in place for our current 

products. We will work with the entire supply chain to proactively identify potential sources of 

quality problems so that appropriate controls are in place to ensure problems are quickly identified and corrected. 

21
 
09-286 annual report.P5.indd 22 12/10/09 

GOAL 5: OPTIMAL WORKFORCE AND WORKPLACE CULTURE 

We are committed to providing our employees a fair, safe 

and rewarding workplace. 

15 

12 

9 

6 

3 

0 

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 

Rate of Injury and Illness Cases per 100 Full-Time Workers 

The United States Mint strives to develop our workforce to ensure that each employee has the necessary 

knowledge, skills and qualities to effectively and 

meaningfully contribute to our mission. 

EMPLOYEE SAFETY The United States Mint 

placed renewed emphasis on improving employee 

safety in FY 2009. From 2005 through 2008, our 

recordable case rate increased each year. To reverse 

this upward trend, we began emphasizing safety performance at the highest levels and communicating 

preventative information throughout each facility. We also initiated processes to control exposure 

to severe hazards and conducted extensive safety compliance audits. 

SENIOR LEVEL FOCUS ON SAFETY Heightened safety awareness began with our executives 

and union leaders. On a monthly basis, executives were briefed on injury and illness rates, any incidents that had occurred and the corrective action taken. Executives also discussed the progress 

of initiatives to reduce risk and prevent future incidents. The focus on safety spread from the 

senior level throughout the organization. We launched a monthly safety topic program to educate 

employees on subjects such as reporting unsafe working conditions, handling hazardous materials and maintaining clean workspace. Safety topics were presented each month at the Director’s 

staff meeting. Management then disseminated the information on these topics to all employees. 

ROOT CAUSE ACCIDENT INVESTIGATION When injuries did occur, we identified root 

causes and implemented corrective action to prevent recurrence. Often improper training, inadequate supervision, defective tools or dangerous equipment result in employee injury or illness. 

Root cause investigation identifies such systematic deficiencies as the source of accidents rather 

than blaming individual error. After each investigation, we recorded and monitored the contributing systematic causes to implement corrective action throughout all facilities. 

SAFETY AUDITS We audited all facilities for regulatory compliance with occupational health 

and safety standards in FY 2009. Minor deficiencies were corrected within 30 days. Action plans 

were developed and implemented for deficiencies requiring more extensive corrective action. In 

FY 2010, we will expand audits to address safety and health systems and practices. Our overall 

goal is a safety management system focused on proactive evaluation of safety efforts rather than 

reacting to incidents when they occur. Audits will evaluate management systems including training 

and education, communication, documentation, emergency preparedness and monitoring. Such 

audits target systematic deficiencies likely to result in unsafe working conditions, injuries or illness. 

22
 
09-286 annual report.P5.indd 23 12/10/09 

Cone-ended 

durable steel 

blank dies are 

inspected before 

the coin designs 

are hubbed 

(mechanically 

pressed) into 

the dies. 

As a result of these efforts, we experienced a record safety year. Our total recordable case 

rate fell to 2.50 recordable injuries and illnesses per 100 full-time workers, the lowest 

rate since we began reporting the figure in FY 1996. Only 40 injuries and illnesses 

occurred in FY 2009, down 43.7 percent from the 71 injuries and illnesses that occurred 

last year. The United States Mint also significantly reduced the number of work-related 

injuries or illnesses resulting in lost workdays. Lost time accidents fell to 13 in FY 2009 

from 20 in FY 2008. 

EMPLOYEE SATISFACTION On a biennial basis, the United States Office of Personnel Management (OPM) administers the Federal Human Capital Survey (FHCS) to 

all full-time, permanent employees of the Federal Government. The survey measures 

employees’ perceptions regarding how effectively their agency manages its workforce. 

FHCS results are used to develop the Best Places to Work in the Federal Government 

rankings. The United States Mint has performed poorly relative to other Federal agencies 

in recent years. In rankings based on the 2008 FHCS, the United States Mint ranked 

201 out of 216 Federal agencies surveyed. We ranked even lower in the subcategories of 

23
 
09-286 annual report.P5.indd 24 12/10/09 

2007 2008 2009 

Pulse-Check Pulse-Check Pulse-Check 

Percentage of Employees Reporting 

Recommend United States Mint 

74 effective leadership and employee skills and misJob Satisfaction 

68 

62 66 sion match. Declining employee satisfaction affects 60 60 61 57 55 our overall productivity and efficiency. Dissatisfied 

employees typically are less motivated, have higher 

absentee and accident rates and limit themselves 

to fewer duties. 

The United States Mint uses a semi-annual Employee Pulse-Check Survey (Pulse-Check) to obtain 2006 2008 

FHCS FHCS current feedback on employee satisfaction. This Note: Reccommend United States Mint data not available in 2007 Pulse-Check survey contains several questions based on the 

FHCS and the Best Places to Work in the Federal 

Government drivers. It is administered to all employees and often indicates higher employee satisfaction compared to the biennial FHCS that is administered to only a sample of employees. 

FY 2009 Pulse-Check results indicate some improvement in employee satisfaction from the 

2008 FHCS results. A majority of employees, 74 percent, expressed satisfaction with their jobs, 

significantly higher than the 62 percent of employees expressing job satisfaction in the 2008 

FHCS. Nearly seven out of ten, 66 percent, employees reported they would recommend the 

United States Mint as a good place to work, a significant improvement from the 57 percent of 

employees recommending the bureau in the 2008 FHCS. 

While Pulse-Check results suggest some improvement, the 2008 FHCS results indicate that our 

employees continued to perceive significant deficiencies in the United States Mint’s work environment and leadership. We are developing new approaches and strategies to address these concerns 

and cultivate an engaged and committed organization. 

IMPROVING EFFECTIVE LEADERSHIP The United States Mint initiated the second phase of 

the Leadership Development Program (LDP II) in FY 2009. LDP is a three-phase training program 

designed to provide managers with the knowledge, skills and ability they need to more effectively 

lead employees. The initial phase of LDP received the prestigious Leadership Development Award 

for outstanding work in leadership from the Training Officers’ Consortium in June 2009. 

All supervisors, managers and executives were required to attend LDP II in FY 2009. This second phase focused on systems thinking, coaching for accountability and performance, leading 

in complex situations, internal controls and fraud awareness, labor relations and values-based 

leadership. The United States Mint plans to implement the third phase of LDP in FY 2010. This 

phase will reinforce previous training and provide more in-depth tools and techniques for leaders 

to successfully meet future challenges. 

IMPROVING EMPLOYEE SKILLS AND MISSION MATCH The United States Mint conducted 

an assessment survey to identify skill and competency gaps for all job series in late 2008. Based 

on the results, our executives are examining new training and improvement opportunities to close 

identified gaps. 

24
 
09-286 annual report.P5.indd 25 12/10/09 

Nearly half of the current United States Mint workforce will be eligible for retirement in the 

next five years. Loss of key personnel may affect some of the agency’s most critical occupational categories. We are addressing these concerns through the Manufacturer Certification and 

Apprenticeship Program (MCAP). The MCAP is an on-the-job training and certification program 

for wage grade employees in the coin and die divisions of our Philadelphia and Denver facilities. 

This program is intended to create a highly skilled and flexible manufacturing workforce. As the 

MCAP progresses, all currently specialized, lower grade jobs will be combined into two higher 

grade positions which incorporate all functions necessary to produce either coins or dies. Employees advance gradually through the MCAP by completing classroom and on-the-job training 

in each production skill requirement. Employees must demonstrate proficiency in operations to 

achieve certification and advance to the next program level. At the top level, employees will be 

qualified to perform any job in the entire coin or die production process. As of the close of FY 

2009, over 40 percent of eligible die division employees and approximately 14 percent of eligible 

coin division employees had applied for the MCAP. 

In FY 2010, we will start developing the Employee Development Program. This program will 

focus on developing knowledgeable and effective employees. The United States Mint also continually provides various training and development opportunities for our employees, including 

on-the-job-training, apprenticeships, self-study programs, Treasury Learning Management System courses and professional certification programs. 

IMPROVING OUR GOALSHARING PROGRAM Every employee at the United States Mint 

can contribute to improved performance. The United States Mint’s Goalsharing Program recognizes and rewards the achievement of employees working collectively to meet our strategic goals. 

The program awards non-executive employees under acceptable performance standing for achieving certain safety, quality and customer service performance milestones. At the end of FY 2008, 

there was a perception that the Goalsharing Program was not effectively rewarding the agency’s 

successes. This negatively affected workforce morale. Several elements seemed to reflect only 

external forces, and employees did not feel empowered to achieve desired performance results. 

This year, we improved the Goalsharing Program by working with employees to attain greater 

transparency and more direct links between employee efforts and performance results. We formed 

a committee of managers and employees from every facility and all organizational departments 

to develop and champion the Goalsharing Program throughout the year. The committee met to 

define the program objectives and review performance regularly. Monthly executive meetings 

to review our progress towards meeting strategic goals included specific briefings on the Goalsharing Program. The Goalsharing committee and union representatives were all encouraged to 

review the drivers of performance and implement strategies or initiatives to improve results. Our 

senior executives urged all managers and supervisors to meet with employees regularly to discuss 

ways to exceed our performance goals. 

25
 
09-286 annual report.P5.indd 26 12/10/09 

Patricia M. Greiner 

United States Mint Chief Financial Officer 

MANAGEMENT’S DISCUSSION AND ANALYSIS 

Message from the Chief Financial Officer: 

I am pleased to present the United States Mint’s financial statements as an integral part of the FY 

2009 Annual Report. As an organization, our priority is to report accurate financial data while 

objectively and consistently executing our fiscal responsibilities. For FY 2009, our independent 

auditors rendered an unqualified opinion. The United States Mint remains committed to 

accountability and integrity in our financial and management responsibilities. 

The United States Mint faced a challenging environment in FY 2009. As a result of the economic 

environment, the cash generated from the operation of the United States Mint Public Enterprise 

Fund declined from prior years. We transferred only $475 million to the Treasury General Fund 

this year, about 37 percent less than our FY 2008 transfer. 

Shipments of circulating coin to the Federal Reserve Banks (FRB) decreased 40 percent from 

last year, generating considerably lower seigniorage from circulating operations. Sales of bullion coins soared beyond last year’s record high. Initially, we had difficulty acquiring sufficient 

precious metal planchets from our suppliers to meet bullion coin demand. To address supply 

constraints, the United States Mint allocated all available planchet supply to the bullion programs, for which we are legislatively mandated to fulfill public demand. We also worked with 

suppliers to increase the amount of planchets available for purchase. Consequently, the United 

States Mint expanded production from previous levels of eight to ten million ounces annually to 

over 27 million ounces in FY 2009. While demand remained strong throughout the year, we were 

able to lift allocation and ordering limits and satisfy all investor demand for 22-karat gold and 

silver bullion one-ounce coins by the third quarter of FY 2009. 

In prior years, volatility in precious metal markets forced the United States Mint to remove 

products from sale and perform irregular re-pricing, resulting in lost sales and dissatisfied 

customers. Starting on January 12, 2009, the United States Mint implemented a new pricing 

policy for numismatic products containing gold and platinum. The policy applies a standard 

methodology for adjusting product prices on a weekly basis. The new strategy is more transparent for our customers and ensures that product prices better reflect the current market values 

of gold and platinum. 

26
 
09-286 annual report.P5.indd 27 12/10/09 

Strong financial management and internal controls are the foundation of an efficient and effective 

organization. In FY 2009, we conducted a comprehensive assessment of the effectiveness of internal controls over financial reporting. Based on the results, we can provide unqualified assurance 

that internal controls over financial reporting are operating effectively and there are no material 

weaknesses in the design or operation of financial reporting and inventory management. 

Last year, the United States Mint reported one material weakness related to inventory management. We developed a comprehensive Corrective Action Plan to strengthen internal controls and, 

as a result, made considerable improvements in inventory accuracy. Over the past two years, 

total inventory accuracy at the United States Mints at Philadelphia and Denver improved from 69 

percent and 94 percent, respectively, to over 99 percent at each facility. While no material weaknesses were found this year, we reported four significant deficiencies. 

We remained committed to improving the United States Mint’s internal controls in FY 2009. I, 

along with my Deputy Chief Financial Officer, personally conducted mandatory internal control 

and fraud awareness training for all supervisors and managers. We also continue to monitor and 

close all internal and external audit findings and corrective actions. 

The United States Mint prepared its financial statements in compliance with accounting standards 

issued by the Federal Accounting Standards Advisory Board (FASAB). The FASAB is designated 

by the American Institute of Certified Public Accountants as the standard-setting body for the 

financial statements of Federal government entities, with respect to establishment of the United 

States Generally Accepted Accounting Principles. 

We close FY 2009 continuing to provide the American people high-quality products and good 

financial results given our current operating environment. We are committed to presenting our 

results in a complete and understandable manner to our stakeholders, the American public. We 

hope you find our annual report useful and transparent. We look forward to maintaining our 217 

year-old tradition of service to the American public and our collectors in FY 2010. 

Sincerely, 

Patricia M. Greiner 

Chief Financial Officer 

27
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

09-286 annual report.P5.indd 28 12/10/09 

Circulating Coinage
 

Circulating coins are shipped to the Federal Reserve Banks (FRB) as needed to replenish inventory and fulfill commercial demand. Revenue from the sale of circulating coins is recognized at 

face value when coins are shipped. Earned revenue equals the gross costs incurred to make and 

distribute coins. Seigniorage is the difference between the face value and the gross costs of coins 

shipped. Seigniorage adds to the Federal Government’s cash balance, but unlike the payment of 

taxes or other receipts, seigniorage does not involve a transfer of financial assets from the public. 

Instead, it arises from the exercise of the Federal Government’s sovereign power to create money 

and the public’s desire to hold financial assets in the form of coins. The President’s Budget excludes 

seigniorage from receipts and treats it as a means of financing the national debt. 

FY 2009 RESULTS Total circulating coins shipped to the FRB decreased 47.8 percent to 5,207 

million pieces in FY 2009 from 9,974 million pieces in FY 2008. The total dollar value of 

circulating shipments to the FRB fell to $777.6 million from $1,294.5 million last year. Declining 

economic conditions drove much of the declines in shipments and revenue. Demand for circulating coins for use in cash transactions fell as retail activity weakened further in FY 2009. 

Commercial banks and other financial institutions curtailed orders for coins and returned excess 

coins to the FRB. In response to these conditions, the FRB decreased orders for newly minted 

coins. The FRB also began targeting lower inventory levels, further reducing their need for circulating coinage from the United States Mint. 

Shipments of one-cent and $1 coins fell to a lesser extent because of collector interest in rotating 

coin designs. While shipments of five-cent and dime coins declined 68.0 percent and 66.5 percent, 

respectively, one-cent shipments fell only 39.0 percent from FY 2008. 

Shipments of $1 coins declined only 3.4 percent from last year. Shipments were augmented by 

the Circulating $1 Coin Direct Ship Program, which contributed 18.6 percent of total $1 coin 

shipments in FY 2009. The strength of the $1 coin relative to other denominations lessened the 

impact of lower volumes on the total dollar value of shipments. The $1 coin alone made up 58.9 

percent of the total value of coins shipped to the FRB in FY 2009, compared to 36.7 percent 

last year. 

Rotating designs among other factors did not, however, thwart declining demand for quarterdollar coins. Shipments of quarter-dollar coins to the FRB fell 61.6 percent from last year. Low 

demand for newly minted quarter-dollar coins is, in part, due to the FRB’s accumulation of the 

coins. Quarter-dollar coins are the most prevalent denomination in FRB inventory, consisting of 

approximately 39.6 percent (about 3.7 billion coins) of total monthly ending inventory in September 2009. Shipments of quarter-dollar coins are expected to remain low until the FRB inventory 

of the coins is depleted to levels that more reflect requirements for enabling commerce. 

CIRCULATING (dollars in millions except seigniorage per $1 issued) % Change 

Value of Shipments 

Gross Cost

Cost of Goods Sold

Sales, General & Administrative 

Seigniorage 

Seigniorage per $1 Issued

2009 

$ 777.6 

$ 349.8 

$ 251.7 

$ 98.1 

$ 427.8 

$ 0.55

2008 

$ 1,294.5 

$ 588.3 

$ 491.3 

$ 97.0 

$ 706.2 

$ 0.55

2007 

$ 1,727.8 

$ 722.6 

$ 629.1 

$ 93.5 

$ 1,005.2 

$ 0.58

2006 

$ 1,271.9 

$ 603.4 

$ 508.8 

$ 94.6 

$ 668.5 

$ 0.53

2005 

$ 1,144.8 

$ 445.4 

$ 359.5 

$ 85.9 

$ 699.4 

$ 0.61 

2008 to 2009

(39.9%)

(40.5%)

(48.8%)

1.1%

(39.4%) 

28
 
09-286 annual report.P5.indd 29 12/10/09 

Price per metric tonne 

Value of Shipments by Denomination (dollars in millions) 2009 Value of Shipments by Denomination 

$ 800 

2007 2008 2009 

$1 $ 700 One-Cent 

4.2% 

58.9% 

$ 600 


Five-Cent 


$ 500 
 1.3% 

Dime $ 400 4.6% 


$ 300 


$ 200 


$ 100 
 Quarter-Dollar 

31.0% 

$ 0 

One-Cent Five-Cent Dime Quarter-Dollar $1 

Base Metal Daily Official Spot Price (prices per metric tonne in dollars) 

Copper Zinc Nickel

10,000 5,000 60,000

4,000 8,000

Price per metric tonne

50,000

6,000

4,000

Price per metric tonne

3,000

2,000

40,000

30,000

20,000

1,000 10,000

2,000 0 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 0 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-05 Sep-06 Sep-07 Sep-08 Sep-0

Weakened demand reduced both the gross cost and seigniorage from circulating operations. 

Circulating gross costs fell to $349.8 million in FY 2009 from $588.3 million in FY 2008. Lower 

volumes reduced circulating cost of goods sold (COGS) by 48.8 percent to only $251.7 million 

in FY 2009. COGS made up a smaller portion of the total value of shipments because of reduced 

metal expenses. Market prices of copper, nickel and zinc fell to five-year lows in the beginning 

of FY 2009. The average daily spot price for copper and zinc decreased 42.5 percent and 37.4 

percent, respectively, from FY 2008 to FY 2009. The average daily spot price for nickel declined 

49.3 percent over the same time period. Selling, general and administrative (SG&A) expenses 

increased slightly from $97.0 million in FY 2008 to $98.1 million in FY 2009. 

Seigniorage declined 39.4 percent to $427.8 million in FY 2009 from $706.2 million last year. 

Strong relative demand for the $1 coin supplemented the return from circulating operations. The 

$1 coin generated the vast majority, approximately 74.5 percent, of total seigniorage in FY 2009. 

While SG&A increased only slightly from FY 2008, it made up a greater portion of the total 

value of coin shipped. This offset the reduction in COGS relative to the total value of shipments, 

and seigniorage per dollar issued remained at $0.55 in FY 2009. 

29
 
09-286 annual report.P5.indd 30 12/10/09 

Seigniorage per Dollar Issued by Denomination 

$1.00 

$0.80 

$0.60 

$0.40 

$0.20 

$0.00 

($0.20) 

($0.40) 

($0.60) 

($0.80) 

($1.00) 

2007 2008 2009 

One-Cent Five-Cent Dime Quarter-Dollar $1 

CIRCULATING UNIT COSTS While per-unit metal costs decreased in FY 2009, the total unit cost 

of all denominations except the five-cent coin increased from last year. When production volumes 

decline because of low demand, production costs are spread over fewer units. In FY 2009, this 

offset the per-unit gains from lower base metal expenses. The dime coin unit cost increased about 

1.3 cents in FY 2009 largely because the 1.8 cent increase in per-unit production cost offset the 

1.0 cent reduction in per-unit metal cost. Higher per-unit SG&A cost also drove up the total unit 

cost for the dime, quarter-dollar and $1 coin denominations in FY 2009. 

Slight increases in per-unit production and SG&A costs did not offset the 3.1 cent decline in the 

five-cent coin’s per-unit metal cost. Accordingly, the five-cent coin’s total unit cost declined 2.8 

cents from FY 2008. Despite this, the unit cost for both one-cent and five-cent denominations 

remained above face value for the fourth consecutive fiscal year. Low demand for the five-cent 

coin largely reduced the overall loss the United States Mint incurred from producing these 

denominations in FY 2009. One-cent and five-cent coins were produced at a loss of $22.0 million, 

down 53.2 percent from the FY 2008 loss of about $47.0 million. 

While metal prices fell from prior peaks in FY 2009, base metal expenses continue to make up the 

largest portion of circulating production cost. Toward the end of FY 2009, market prices for copper, 

nickel and zinc all started to increase to FY 2007 levels. The Secretary of the Treasury currently 

has the authority to select the metal composition of the $1 coin, as well as alter the percentage 

of copper and zinc in the one-cent coin. The compositions of five-cent, dime, quarter-dollar 

and half-dollar coins are codified by statute. Any authority to change the metal composition of 

these denominations requires legislative action. 

30
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

09-286 annual report.P5.indd 31 12/10/09 

$1 coin blanks 

are fed into 

a stamping press 

where two dies 

(obverse and 

reverse) strike 

both sides 

of the planchet 

at the same 

time, impressing 

the design into 

the planchet and 

creating a coin. 

SHIPMENTS TO FEDERAL RESERVE BANKS, COSTS AND SEIGNIORAGE BY DENOMINATION 

(coins and dollars in millions except seigniorage per $1 issued) 

FY 2009 

Coins Shipped to the FRB 

Value of Shipments 

Gross Cost

Cost of Goods Sold

Sales, General & Administrative 

Seigniorage 

Seigniorage per $1 Issued 

One-Cent

3,218 

$ 32.2 

$ 52.0 

$ 52.0 

$ – 

$ (19.8) 

$ (0.61) 

Five-Cent

207 

$ 10.3 

$ 12.5 

$ 12.2 

$ 0.3 

$ (2.2) 

$ (0.21)

Dime

358 

$ 35.7 

$ 20.2 

$ 16.6 

$ 3.6 

$ 15.5 

$ 0.43 

Quarter-Dollar

965 

$ 241.3 

$ 109.1 

$ 80.3 

$ 28.8 

$ 132.2 

$ 0.55 

Half-Dollar

– 

$ – 

$ (0.1) 

$ (0.2) 

$ 0.1 

$ 0.1 

$ – 

Mutilated

 & Other

– 

$ – 

$ 16.7 

$ 16.7 

$ – 

$ (16.7) 

$ –

 Total

5,207 

$ 777.6 

$ 349.8 

$ 251.7 

$ 98.1 

$ 427.8 

$ 0.55

$1

459 

$ 458.1 

$ 139.4 

$ 74.1 

$ 65.3 

$ 318.7 

$ 0.70 

FY 2008 

Coins Shipped to the FRB 

Value of Shipments 

Gross Cost

Cost of Goods Sold

Sales, General & Administrative 

Seigniorage 

Seigniorage per $1 Issued 

One-Cent

5,272 

$ 52.7 

$ 74.9 

$ 74.7 

$ 0.2 

$ (22.2) 

$ (0.42) 

Five-Cent

647 

$ 32.3 

$ 57.1 

$ 57.1 

$ – 

$ (24.8) 

$ (0.77)

Dime

1,070 

$ 107.1 

$ 46.6 

$ 40.3 

$ 6.3 

$ 60.5 

$ 0.56 

Quarter-Dollar

2,510 

$ 627.6 

$ 273.5 

$ 235.2 

$ 38.3 

$ 354.1 

$ 0.56 

Half-Dollar

– 

$ – 

$ – 

$ – 

$ – 

$ – 

$ – 

Mutilated

 & Other

– 

$ – 

$ 10.8 

$ 10.8 

$ – 

$ (10.8) 

$ –

 Total

9,974 

$ 1,294.5 

$ 588.3 

$ 491.3 

$ 97.0 

$ 706.2 

$ 0.55

$1

475 

$ 474.8 

$ 125.4 

$ 73.2 

$ 52.2 

$ 349.4 

$ 0.74 

FY 2007 

Coins Shipped to the FRB 

Value of Shipments 

Gross Cost

Cost of Goods Sold

Sales, General & Administrative 

Seigniorage 

Seigniorage per $1 Issued 

One-Cent

7,084 

$ 78.1 

$ 118.2 

$ 118.2 

$ – 

$ (40.1) 

$ (0.51) 

Five-Cent

1,289 

$ 64.4 

$ 122.9 

$ 122.9 

$ – 

$ (58.5) 

$ (0.91)

Dime

2,247 

$ 224.8 

$ 92.1 

$ 81.2 

$ 10.9 

$ 132.7 

$ 0.59 

Quarter-Dollar

2,711 

$ 677.8 

$ 265.3 

$ 231.3 

$ 34.0 

$ 412.5 

$ 0.61 

Half-Dollar

– 

$ – 

$ – 

$ – 

$ – 

$ – 

$ – 

Mutilated 

& Other

– 

$ – 

$ 15.6 

$ 15.6 

$ – 

$ (15.6) 

$ –

 Total

14,021 

$ 1,727.8 

$ 722.6 

$ 629.1 

$ 93.5 

$ 1,005.2 

$ 0.58

$1

690 

$ 682.7 

$ 108.5 

$ 59.9 

$ 48.6 

$ 574.2 

$ 0.84 

31
 
 

 

 

 

 

One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 

Cost of Goods Sold $ 0.0139 $ 0.0877 $ 0.0371 $ 0.0925 $ – $ 0.1517

Sales, General & Administrative $ – $ – $ 0.0059 $ 0.0153 $ – $ 0.1098

Distribution to FRB 

Total Expenses 

$ 0.0003 

$ 0.0142 

$ 0.0006 

$ 0.0883

$ 0.0006 

$ 0.0436 

$ 0.0012 

$ 0.1090 

$ – 

$ –

$ 0.0026 

$ 0.2641 

One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 

Cost of Goods Sold $ 0.0165 $ 0.0949 $ 0.0357 $ 0.0841 $ – $ 0.0835

Sales, General & Administrative $ – $ – $ 0.0048 $ 0.0125 $ – $ 0.0705

Distribution to FRB 

Total Expenses 

$ 0.0002 

$ 0.0167 

$ 0.0004 

$ 0.0953

$ 0.0004 

$ 0.0409 

$ 0.0012 

$ 0.0978 

$ – 

$ –

$ 0.0033 

$ 0.1573 

09-286 annual report.P5.indd 32 12/14/09 

Dies for proof 

quality coins are 

hand polished 

at the United States 

Mint at Denver 

to improve coin 

appearance. 

UNIT COST OF PRODUCING AND DISTRIBUTING COINS BY DENOMINATION 

FY 2009 One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 

Cost of Goods Sold $ 0.0159 $ 0.0579 $ 0.0456 $ 0.0816 $ – $ 0.1599

Sales, General & Administrative $ – $ 0.0014 $ 0.0101 $ 0.0298 $ – $ 0.1424

Distribution to FRB 

Total Expenses 

$ 0.0003 

$ 0.0162 

$ 0.0010 

$ 0.0603

$ 0.0008

$ 0.0565 

$ 0.0017

$ 0.1131 

$ – 

$ –

$ 0.0017 

$ 0.3040 

32
 

FY 2008 

FY 2007 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

09-286 annual report.P5.indd 33 12/10/09 

Bullion Products
 

The United States Mint mints and issues gold, silver and platinum bullion coins to authorized 

purchasers through the American Eagle Bullion Coin and American Buffalo Bullion Coin Programs. 

The bureau purchases precious metal on the open market at the time of an order. Coins are sold 

to authorized purchasers at the same market price paid for the metal plus a premium to cover bullion program operating costs. Authorized purchasers agree to maintain an open, two-way market 

for these coins, assuring their liquidity. This allows the public to purchase and sell coins at the 

prevailing market price, adjusting for any premium the authorized purchaser applies. The purpose 

of the bullion program is to make precious metal coins available at minimal cost to investors. 

Consequently, the United States Mint manages the bullion program to a nominal net margin. 

FY 2009 RESULTS Uncertainty surrounding traditional investments and concerns about future 

inflation drove investor demand for bullion coins to exceptional highs in FY 2009. After declining at the close of FY 2008, precious metal market prices rose steadily during FY 2009. As of 

September 30, the market price of gold, silver and platinum increased 12.6 percent, 26.9 percent 

and 28.2 percent, respectively, from 2008 to 2009. 

The United States Mint sold 27.6 million ounces of gold, silver and platinum bullion coins in FY 

2009, up 9.2 million ounces from FY 2008 and a 132.3 percent increase over average annual 

bullion sales since FY 2005. Accordingly, total bullion revenue reached a record high of $1,694.8 

million in FY 2009, up 78.6 percent from $948.8 million in FY 2008. 

The volume of precious metal planchets the United States Mint’s suppliers can timely provide 

limits the number of bullion products the bureau can produce and sell. In FY 2009, the United 

States Mint was initially unable to acquire sufficient planchets to satisfy the unprecedented 

investor demand for bullion coins. Standard allocation and ordering limits were set so that scarce 

products were equitably distributed among authorized purchasers. To address supply constraints, 

the United States Mint allocated all available planchet supply to production of 22-karat gold and 

silver one-ounce bullion coins. The United States Mint also diverted planchets from discretionary 

numismatic and bullion programs, increased production capacity and worked with suppliers to 

expand planchet supply. Consequently, the bureau expanded bullion planchet supply from previous levels of eight to ten million ounces annually to over 27 million ounces in FY 2009. While 

demand remained strong, the United States Mint was able to lift allocation and ordering limits 

and satisfy all investor demand for 22-karat gold and silver one-ounce bullion coins in June 2009. 

BULLION (dollars in millions) % Change 

Sales Revenue 

Gross Cost

Cost of Goods Sold

Sales, General & Administrative 

Net Income 

Bullion Net Margin

2009 

$ 1,694.8 

$ 1,662.1 

$ 1,650.0 

$ 12.1 

$ 32.7

1.9%

2008 

$ 948.8 

$ 931.0 

$ 922.6 

$ 8.4 

$ 17.8

1.9%

2007 

$ 356.1 

$ 351.6 

$ 350.0 

$ 1.6 

$ 4.5

1.3%

2006 

$ 536.6 

$ 524.4 

$ 523.0 

$ 1.4 

$ 12.2

2.3%

2005 

$ 270.7 

$ 265.2 

$ 264.4 

$ 0.8 

$ 5.5

2.0% 

2008 to 2009

78.6%

78.5%

78.8%

44.0%

83.7% 

33
 
09-286 annual report.P5.indd 34 12/10/09 

Revenue by Bullion Program (dollars in millions) 2009 Revenue by Bullion Program 

$1,400 

2007 2008 2009 American Eagle Gold 

$1,200 75.4% American Eagle Platinum 

1.4% 

American Buffalo Gold $1,000 1.2% 

$800 

$600 American Eagle Silver 


22.0% 


$400
 

$200 

$0 American American American Eagle American 


Eagle Gold Eagle Silver Platinum Buffalo Gold

High sales volumes drove gross cost up to $1,662.1 million in FY 2009 from $931.0 million in FY 

2008. Cost of goods sold (COGS) increased to $1,650.0 million in FY 2009 from $922.6 million 

last year but made up the same portion of total sales revenue. Bullion sales generated a larger portion 

of the United States Mint’s total earnings. Consequently, a greater portion of sales, general and 

administrative (SG&A) expenses was allocated to the bullion program in FY 2009. Bullion SG&A 

increased to $12.1 million in FY 2009 from $8.4 million last year. Bullion net income increased 

83.7 percent to $32.7 million in FY 2009 from $17.8 million in FY 2008. The bullion program 

was successfully managed to just below the standard net margin of two percent. 

AMERICAN EAGLE PROGRAM The United States Mint devoted precious metal planchet 

supply to production of American Eagle 22-karat gold and silver one-ounce coins in FY 2009. 

Consequently, sales of these coins drove most of the revenue growth in FY 2009. American Eagle 

22-karat gold bullion sales revenue increased 184.3 percent to $1,278.2 million from $449.6 million 

in FY 2008. Revenue from the sale of all American Eagle 22-karat gold products alone made up 

75.4 percent of total bullion sales revenue in FY 2009. 

Starting in calendar year 2009, the United States Mint suspended production of American Eagle 

22-karat gold fractional denominations (one-half, one-fourth or one-tenth ounces) and all American Eagle platinum coins. The burreau placed priority on production of one-ounce American 

Eagle gold coins to maximize planchet supply. The United States Mint began fully satisfying demand for the one-ounce coin in June 2009. The bureau began offering American Eagle 22-karat 

gold fractional denominations for sale in October 2009. There is no statutory requirement for the 

United States Mint to mint or issue platinum bullion coins. 

Precious Metal Daily Spot Price (prices per troy ounce in dollars)
 

Silver Gold Platinum

25 1,200 2,500

1,000 2,000 20

800

1,500

600

15

10 1,000 400

5 200 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 500 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09

34
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

09-286 annual report.P5.indd 35 12/10/09 

American Eagle silver bullion sales revenue rose 21.4 percent to $372.0 million from $306.4 million 

last year. Net income from American Eagle gold increased from $10.2 million in FY 2008 to 

$25.5 million in FY 2009. American Eagle silver net income increased to $6.1 million from $5.0 

million last year. 

All American Eagle platinum revenue recorded in FY 2009 resulted from the sale of calendar year 

2008 coin inventory in the first quarter. American Eagle platinum sales revenue still increased 5.8 

percent to $23.7 million in FY 2009 from $22.4 million in FY 2008. Net income for American 

Eagle platinum coins increased slightly from $0.9 million to $1.0 million. 

AMERICAN BUFFALO PROGRAM American Buffalo 24-karat gold bullion sales revenue declined considerably in FY 2009 because planchet supply was diverted to the American Eagle gold 

program. Revenue from the sale of American Buffalo gold coins decreased 87.7 percent to $20.9 

million from $170.4 million in FY 2008. American Buffalo gold net income fell from $1.7 million 

to $0.1 million. 

After fully satisfying demand for American Eagle 22-karat gold one-ounce coins, the United 

States Mint began acquiring planchets for the American Buffalo program in the fourth quarter of FY 2009. The bureau resumed American Buffalo 24-karate gold one-ounce coin sales in 

October 2009. 

BULLION REVENUE, COST AND NET INCOME OR SEIGNIORAGE BY PROGRAM 

(dollars in millions) 

FY 2009 

Sales Revenue 

Gross Cost

 Cost of Goods Sold

 Sales, General & Administrative 

Net Income 

Bullion Net Margin 

American 

Eagle Gold

$ 1,278.2 

$ 1,252.7 

$ 1,245.0 

$ 7.7 

$ 25.5

2.0% 

American 

Eagle Silver

$ 372.0 

$ 365.9 

$ 361.9 

$ 4.0 

$ 6.1

1.6% 

American 

Eagle Platinum 

$ 23.7 

$ 22.7 

$ 22.4 

$ 0.3 

$ 1.0

4.2% 

American 

Buffalo Gold 

$ 20.9 

$ 20.8 

$ 20.7 

$ 0.1 

$ 0.1

0.5%

 Total 

$ 1,694.8 

$ 1,662.1 

$ 1,650.0 

$ 12.1 

$ 32.7

1.9% 

FY 2008 

Sales Revenue 

Gross Cost

Cost of Goods Sold

 Sales, General & Administrative

Net Income 

Bullion Net Margin 

American 

Eagle Gold 

$ 449.6 

$ 439.4 

$ 435.3 

$ 4.1 

$ 10.2

2.3% 

American 

Eagle Silver 

$ 306.4 

$ 301.4 

$ 299.3 

$ 2.1 

$ 5.0

1.6%

American 

Eagle Platinum 

$ 22.4 

$ 21.5 

$ 21.2 

$ 0.3 

$ 0.9

4.0%

American 

Buffalo Gold 

$ 170.4 

$ 168.7 

$ 166.8 

$ 1.9 

$ 1.7

1.0%

 Total 

$ 948.8 

$ 931.0 

$ 922.6 

$ 8.4 

$ 17.8

1.9%

FY 2007 

Sales Revenue 

Gross Cost

Cost of Goods Sold

 Sales, General & Administrative

Net Income 

Bullion Net Margin 

American 

Eagle Gold 

$ 110.3 

$ 109.1 

$ 108.7 

$ 0.4 

$ 1.2

1.1%

American 

Eagle Silver 

$ 110.2 

$ 109.0 

$ 108.6 

$ 0.4 

$ 1.2

1.1%

American 

Eagle Platinum 

$ 18.1 

$ 17.7 

$ 17.5 

$ 0.2 

$ 0.4

2.2%

American 

Buffalo Gold 

$ 117.5 

$ 115.8 

$ 115.2 

$ 0.6 

$ 1.7

1.4%

 Total 

$ 356.1 

$ 351.6 

$ 350.0 

$ 1.6 

$ 4.5

1.3%

35
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

09-286 annual report.P5.indd 36 12/10/09 

Numismatic Products
 

The United States Mint prepares and distributes a variety of numismatic products directly to the 

public. The value of sales of numismatic products is considered earned revenue in the financial 

statements. The net return from numismatic operations is calculated by subtracting the program’s 

gross costs from sales revenue. A main objective of numismatic operations is to keep the sale price 

of products as low as practicable for customers. The program is managed to a 15 percent net 

margin overall to ensure sale prices are as low as practicable and returns are sufficient to fund 

numismatic operating costs. 

FY 2009 RESULTS Retail sales of numismatic versions of the United States Mint’s circulating and 

commemorative coins and medals weakened in FY 2009. Numismatic sales revenue plus earned 

revenue from the sale of circulating coins fell 21.0 percent to $440.0 million from $557.2 million 

last year. The United States Mint offered fewer numismatic products in FY 2009 because precious 

metal planchets were diverted to the bullion program. Quality issues also delayed or prevented 

the release of certain annual sets in FY 2009. Additionally, poor economic conditions may have 

suppressed consumer spending on collectibles as sales of available recurring products declined 

from prior years. 

Lower sales volumes reduced numismatics gross costs 16.0 percent to $398.9 million from 

$474.8 million in FY 2008. Cost of goods sold (COGS) decreased to $329.7 million but made 

up a greater portion of numismatic sales revenue. Numismatic sales, general and administrative 

(SG&A) expenses declined 20.2 percent to $69.2 million but remained fairly consistent relative 

to revenue. Weakened demand reduced numismatic program net income and seigniorage to $41.1 

million in FY 2009 from $82.4 million in FY 2008. 

Gross cost made up a greater portion of numismatic sales revenue, reducing the net margin to 

9.3 percent in FY 2009 from 14.8 percent in FY 2008. A lower net margin is not directly adverse 

to the United States Mint’s numismatic operations. The reduced margin means that the United 

States Mint offered numismatic products to customers at lower sales prices than sufficient to 

achieve the standard 15 percent margin. Prices were set for products assuming a sales revenue 

distribution comparable to prior fiscal years. However, product unavailability and weakened 

demand challenged pricing assumptions. Sales volumes shifted in favor of lower margin recurring 

products and against higher margin precious metal products. Also, fewer products available for 

sale requires the products that did contribute to the FY 2009 numismatic results to bear more 

allocated costs and assume more numismatic administrative expenses. 

NUMISMATIC (dollars in millions) 

Sales Revenue 

Gross Cost

Cost of Goods Sold

 Sales, General & Administrative 

Net Income & Seigniorage 

Numismatic Net Margin 

Seigniorage Portion

2009 

$ 440.0 

$ 398.9 

$ 329.7 

$ 69.2 

$ 41.1

9.3% 

$ 19.3

2008 

$ 557.2 

$ 474.8 

$ 388.1 

$ 86.7 

$ 82.4

14.8%

$ 22.5

2007 

$ 551.5 

$ 475.6 

$ 396.7 

$ 78.9 

$ 75.9

13.8% 

$ 27.1

2006 

$ 514.9 

$ 427.7 

$ 346.2 

$ 81.5 

$ 87.2

16.9%

$ 13.9

2005 

$ 355.4 

$ 258.9 

$ 180.1 

$ 78.8 

$ 96.5

27.2%

$ 23.3 

2008 to 2009

(21.0%)

(16.0%)

(15.0%)

(20.2%)

(50.1%)

(14.2%)

% Change 

36
 
09-286 annual report.P5.indd 37 12/10/09 

Automated laser 

engraving machines 

cut edge lettering into 

tooling, which is later 

used to press lettering 

onto the edge of coins. 

GOLD AND PLATINUM PRODUCT PRICING In January 2009, the United States Mint implemented a new strategy for pricing numismatic products containing gold and platinum. Previously, 

volatile precious metal markets forced the bureau to haphazardly suspend sales and re-price 

products whenever a product price diverged significantly from the market price. The new strategy 

includes an itemized pricing structure for gold and platinum numismatic products. The structure 

indicates prices for each product based on a range of the average weekly market price for gold 

and platinum. If the market value moves to a higher or lower range, product prices will increase 

or decrease in corresponding increments. The new strategy is more transparent and responsive to 

changes in market prices. 

RECURRING PROGRAMS Recurring programs include high quality, specially presented products 

based on the Nation’s circulating coinage. These products include the United States Mint Proof 

SetTM, the United States Mint Silver Proof SetTM, the United States Mint Uncirculated Coin SetTM 

and the United States Mint Presidential $1 Coin Proof Set. Revenue from recurring programs 

decreased 18.6 percent to $199.8 million in FY 2009 from $245.5 million in FY 2008. Lower 

sales volumes reduced net income 49.0 percent from $19.4 million in FY 2008 to $9.9 million 

in FY 2009. 

Sales revenue from recurring programs declined, in part, because of quality issues the United 

States Mint encountered with the 2009 Lincoln Bicentennial One-Cent Coin Program. In compliance with the program’s authorizing legislation, the bureau included numismatic one-cent coins 

with the exact metallic content of the 1909 penny in the United States Mint 2009 Proof Set and 

37
 
09-286 annual report.P5.indd 38 12/10/09 

 

Revenue by Numismatic Program (dollars in millions) 2009 Revenue by Numismatic Program 

2007 2008 2009 $250 

$200 

$150 

$100 

$ 50 

$ 0 

American Eagle 

12.6% 

American Buffalo 

5.8% 

Commemorative 

4.9% 

Recurring 

45.4% 

Ultra High Relief 

25.5% 

Sale of Circulating 

5.8% 

Ultra High American American Commem- Sale of Recurring Relief Eagle Buffalo orative Circulating 

2009 United States Mint Uncirculated Coin Set. The 95 percent copper alloy one-cent coins were 

highly susceptible to tarnishing. The United States Mint delayed release of the annual sets to address the quality defects. The United States Mint 2009 Uncirculated Coin Set was not released 

for sale until FY 2010. Consequently, revenue from uncirculated set sales alone fell 76.9 percent 

from $30.3 million in FY 2008 to approximately $7.0 million in FY 2009. 

2009 ULTRA HIGH RELIEF DOUBLE EAGLE GOLD COIN Sales of the 2009 Ultra High 

Relief Double Eagle Gold Coin began on January 22, 2009, and generated $112.4 million in 

revenue in FY 2009. The 2009, Ultra High Relief Double Eagle Gold Coin was the highest 

revenue generating numismatic product, contributing 25.5 percent of total sales revenue in FY 

2009. The product’s sales helped offset declining revenue in other collectible precious metal 

programs because of product unavailability. Net income from the sale of the 2009 Ultra High 

Relief Double Eagle Gold Coin totaled $6.4 million in FY 2009. 

Minor costs incurred for the 2009 Ultra High Relief Double Eagle Gold Coin in FY 2008 were 

grouped with the American Buffalo program in the FY 2008 annual report. FY 2008 American 

Buffalo program costs and earnings are restated net of 2009 Ultra High Relief Double Eagle Gold 

Coin costs in this report. 

AMERICAN EAGLE PROGRAM American Eagle gold, silver and platinum coins are offered in 

proof and uncirculated quality as part of the numismatic program. In FY 2009, the United States 

Mint suspended production of American Eagle numismatic products to divert precious metal 

planchet supply to bullion coin production. Because of product unavailability, revenue from 

the sale of American Eagle products fell 66.8 percent to $55.1 million in FY 2009 from $166.0 

million in FY 2008. All revenue recorded in FY 2009 resulted from the sale of calendar year 2008 

American Eagle numismatic products in the initial two quarters of FY 2009. American Eagle 

program net income fell from $28.6 million to $5.2 million in FY 2009. 

AMERICAN BUFFALO PROGRAM As with the American Eagle program, the United States 

Mint temporarily ceased production of American Buffalo gold numismatic products in FY 2009. 

As a result of product unavailability, revenue from American Buffalo products sales fell 67.4 

percent to $25.7 million in FY 2009 from $78.8 million in FY 2008. American Buffalo program 

net income fell to $1.5 million in FY 2009 from $7.8 million last year. 

38
 
09-286 annual report.P5.indd 39 12/14/09 

Once proof set 

lenses are assembled, 

a case packer 

automatically inserts 

them into 2009 

United States Mint 

Proof Set boxes. 

The United States Mint began acquiring planchets for the numismatic program in the fourth 

quarter of FY 2009. The bureau resumed sales of the American Buffalo gold proof one-ounce 

coin and the American Eagle platinum proof one-ounce coin in October 2009. 

COMMEMORATIVE COIN PROGRAMS Revenue from the sale of commemorative coins, less 

surcharges paid to recipient organizations, fell to $21.6 million in FY 2009 from $37.3 million 

in FY 2008. Two commemorative programs were launched in FY 2009. The Abraham Lincoln 

Commemorative Silver Dollar Program generated $16.5 million in revenue and $4.5 million in 

eligible surcharges for the recipient organization. The Louis Braille Bicentennial–Braille Literacy 

Silver Dollar Program generated $6.8 million in revenue and $1.9 million in eligible surcharges 

for the recipient organization. 

Commemorative coins programs are managed on a calendar year basis. FY 2009 figures include 

results from the American Bald Eagle Recovery and National Emblem Commemorative Coin 

Program, initiated in calendar year 2008. Truncating program results to fiscal years can result in 

negative net income even though no single commemorative coin program generated a loss. 

NUMISMATIC SALES OF CIRCULATING COINAGE The United States Mint sells certain 

circulating coins through numismatic channels. Revenue from these sales is recognized as the face 

value of circulating coin sold in the same way as circulating sales to the FRB. The total face value 

from the sale of circulating coinage fell 14.2 percent to $25.4 million in FY 2009 from $29.6 

million in FY 2008. Seigniorage from the numismatic sale of circulating coins is transferred to 

the Treasury General Fund as off-budget receipts. Seigniorage decreased to $19.3 million in FY 

2009 from $22.5 million last year. 

39
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

09-286 annual report.P5.indd 40 12/10/09 

$1 coin blanks 

are inspected 

and then 

transported 

to the next 

step in the 

Manufacturing 

process — 

Annealing — 

which uses 

heat to 

soften blanks. 

NUMISMATIC REVENUE, COST AND NET INCOME OR SEIGNIORAGE BY PROGRAM 

(dollars in millions) 

FY 2009 

Sales Revenue 

Gross Cost

Cost of Goods Sold

 Sales, General & Administrative

Net Income/Seigniorage 

Numismatic Net Margin 

Ultra High 

Relief 

$ 112.4 

$ 106.0 

$ 88.9 

$ 17.1 

$ 6.4

 5.7%

American 

Eagle 

$ 55.1 

$ 49.9 

$ 43.6 

$ 6.3 

$ 5.2

 9.4%

American 

Buffalo 

$ 25.7 

$ 24.2 

$ 21.9 

$ 2.3 

$ 1.5

 5.8%

Commemorative 

$ 21.6 

$ 22.8 

$ 19.1 

$ 3.7 

$ (1.2)

 (5.6%)

Recurring 

$ 199.8 

$ 189.9 

$ 152.9 

$ 37.0 

$ 9.9

 5.0%

 Total 

$ 440.0 

$ 398.9 

$ 329.7 

$ 69.2 

$ 41.1

 9.3%

Numismatic Sale 

of Circulating 

$ 25.4 

$ 6.1 

$ 3.3 

$ 2.8 

$ 19.3

 76.0%

FY 2008 

Sales Revenue 

Gross Cost

 Cost of Goods Sold

 Sales, General & Administrative

Net Income/Seigniorage

Numismatic Net Margin 

Ultra High 

Relief 

$ 0.0 

$ 0.3 

$ 0.1 

$ 0.2 

$ (0.3)

 – 

American 

Eagle 

$ 166.0 

$ 137.4 

$ 117.1 

$ 20.3 

$ 28.6

 17.2% 

American 

Buffalo 

$ 78.8 

$ 71.0 

$ 64.7 

$ 6.3 

$ 7.8

 9.9% 

Commemorative 

$ 37.3 

$ 32.9 

$ 27.6 

$ 5.3 

$ 4.4

 11.8% 

Recurring 

$ 245.5 

$ 226.1 

$ 174.8 

$ 51.3 

$ 19.4

 7.9%

 Total 

$ 557.2 

$ 474.8 

$ 388.1 

$ 86.7 

$ 82.4

 14.8%

Numismatic Sale 

of Circulating 

$ 29.6 

$ 7.1 

$ 3.8 

$ 3.3 

$ 22.5

 76.0% 

FY 2007 

Sales Revenue 

Gross Cost

Cost of Goods Sold

 Sales, General & Administrative 

Net Income/Seigniorage 

Numismatic Net Margin 

Ultra High 

Relief 

$ – 

$ – 

$ – 

$ – 

$ –

 – 

American 

Eagle 

$ 220.1 

$ 190.5 

$ 171.0 

$ 19.5 

$ 29.6

 13.4% 

American 

Buffalo 

$ 59.9 

$ 54.3 

$ 50.3 

$ 4.0 

$ 5.6

 9.3% 

Commemorative 

$ 45.6 

$ 40.3 

$ 35.8 

$ 4.5 

$ 5.3

 11.6% 

Recurring 

$ 189.8 

$ 181.5 

$ 134.6 

$ 46.9 

$ 8.3

 4.4%

 Total 

$ 551.5 

$ 475.6 

$ 396.7 

$ 78.9 

$ 75.9

 13.8%

Numismatic Sale 

of Circulating 

$ 36.1 

$ 9.0 

$ 5.0 

$ 4.0 

$ 27.1

 75.1%

40
 
On-Budget 

Off-Budget 

Total Transfer

 2009 

$ 35.0 

$ 440.0 

$ 475.0

 2008 

$ 15.0 

$ 735.0 

$ 750.0

 2007 

$ 43.0 

$ 782.0

$ 825.0

 2006 

$ 84.0 

$ 666.0 

$ 750.0

09-286 annual report.P5.indd 41 12/10/09 

 

Transfer to the Treasury General Fund
 

As required by Public Law 104-52, the United States Mint deposits all receipts from operations 

and programs into the United States Mint Public Enterprise Fund (PEF). Periodically throughout 

the year, the bureau transfers amounts in the PEF determined to be in excess of required financing 

sources to the Treasury General Fund. The PEF retains amounts required to support ongoing 

United States Mint operations and programs. 

The United States Mint’s operations yielded considerably lower returns in FY 2009 compared to 

prior fiscal years. Circulating receipts historically generate the vast majority of the PEF’s transfer to 

the Treasury General Fund. Low demand for newly minted circulating coins in FY 2009 generated 

significantly lower seigniorage amounts for the PEF. Consequently, the United States Mint PEF 

generated a $475.0 million return to the Treasury General Fund, a 36.7 percent decrease from 

the $750.0 million return transferred in FY 2008. 

OFF-BUDGET TRANSFER The off-budget transfer is seigniorage, the financing source resulting from the sale of circulating coins. Seigniorage arises from the Federal Government exercising 

its sovereign power to create money. The President’s Budget excludes the off-budget transfer from 

receipts and treats it as a means of financing the national debt. The comparatively low level of 

seigniorage generated in FY 2009 reduced the off-budget transfer 40.1 percent to $440.0 million 

from $735.0 million in FY 2008. 

ON-BUDGET TRANSFER The on-budget transfer consists of the prior fiscal year net revenue 

from operations (excluding seigniorage). This represents numismatic (including bullion) net program revenues less the net cost of protection of assets. The United States Mint retains the net 

revenue from the prior fiscal year operations pending the completion of the financial statements 

audit. Until that time, the amount is considered permanently not available as a funding source for 

PEF operations. The on-budget transfer is treated as receipts and available to reduce the deficit or 

fund current Federal Government operations or programs. Resulting from FY 2008 net revenue 

from operations, the FY 2009 on-budget transfer totaled $35.0 million. The FY 2008 on-budget 

transfer from FY 2007 net revenue from operations totaled $15.0 million. 

Off-Budget Transfer (dollars in millions) On-Budget Transfer (dollars in millions) 

782 

730 

666 

735 

440 

45 

84 

43 

15 

35 

2005 

TRANSFERS TO THE TREASURY GENERAL FUND (dollars in millions)

2006 2007 2008 2009 2005 2006 2007 2008 2009 

41
 

% Change 

2008 to 2009

(36.7%)

 (40.1%)

 133.3%

$ 775.0 

$ 730.0 

$ 45.0 

 2005 
09-286 annual report.P5.indd 42 12/10/09 

Performance Goals, Objectives and Results
 

As mandated by the Government Performance & Results Act (GPRA) of 1993, agencies are to 

identify critical activities, devise pertinent performance measures, and report on these activities 

to the President and Congress. In FY 2008, the United States Mint developed new strategic goals 

focused on brand identity, product portfolio, artistic excellence, improving efficiency, and developing an optimal workforce. The organization’s progress in achieving each of these goals was 

presented in earlier sections in this report. To assess performance on primary budget activities, 

the United States Mint monitors seven key performance measures. 

CUSTOMER SATISFACTION INDEX (CSI) The United States Mint conducts a quarterly 

Customer Satisfaction Measure Tracking Survey among a random sample of active customers. 

The survey is intended to capture customer satisfaction with the United States Mint’s performance 

as a coin supplier and the quality of specific numismatic products. CSI is a single quantitative 

score of survey results. 

CSI was 88.3 percent in FY 2009, exceeding the target of 88.0 percent and increasing slightly 

from the FY 2008 result of 87.5 percent. Customer satisfaction with product quality remained 

strong with 96.1 percent of respondents highly satisfied with the quality of products. About 80.5 

percent of respondents reported high overall satisfaction with the United States Mint’s performance as a coin supplier, up somewhat from 79.5 percent in FY 2008. 

The United States Mint expects to improve upon customer service in FY 2010 by continuing to 

monitor the bureau’s call center and order fulfillment system to maintain and exceed standards 

of service. The bureau is also implementing an initiative to integrate and consolidate the United 

States Mint’s public information and e-commerce catalog sites. The improved single Web site will 

be easier for customers to navigate and obtain desired information. 

NUMISMATIC CUSTOMER BASE The numismatic customer base consists of the total number 

of unique purchasers within a fiscal year. A unique purchaser consists of an account number and 

address and name combination without a prior purchase in the fiscal year. 

The numismatic customer based totaled 1.06 million in FY 2009, below the target of 1.40 million. 

The United States Mint customer retention and acquisition performance declined because the bureau was unable to offer several core numismatic products for sale after January 2009. Economic 

conditions may have also curtailed customer spending on collectibles from prior years. 

The United States Mint began to fully satisfy bullion demand in the later months of the fiscal year. 

Consequently, the bureau hopes to offer some numismatic products for sale in FY 2010 that were 

unavailable in FY 2009. The United States Mint is also planning a national advertising campaign 

and outreach related to the upcoming America the Beautiful QuartersTM Program and America the 

Beautiful Silver Bullion CoinsTM Program in FY 2010. 

42
 
09-286 annual report.P5.indd 43 12/14/09 

Circulating 

coins are stored 

in bulk bags prior 

to and during 

shipment to the 

Federal Reserve 

Banks. The United 

States Mint 

Police safeguards 

coins and all 

other assets held 

at the facilities. 

NUMISMATIC NET MARGIN Numismatic net margin is the return to numismatic operations, 

calculated as program net income divided by total program sales revenue. The general statutory 

framework for the sale of United States Mint numismatic items provides for cost recovery (i.e., 

avoiding any indirect taxpayer burden on these programs). Therefore, the numismatic program 

is managed to a 15 percent net margin to ensure sale prices are as low as practicable and returns 

are sufficient to fund numismatic operating costs. 

43
 
09-286 annual report.P5.indd 44 12/15/09 

Administrative 

and oversight 

functions are 

performed at the 

United States Mint 

Headquarters in 

Washington, D.C. 

Numismatic net margin was 9.3 percent in FY 2009, below the target of 15 percent. Precious metal 

supply constraints prevented the United States Mint from selling some of its core numismatic 

products in FY 2009, significantly inhibiting the bureau’s ability to meet the net margin target. A 

reduced margin means that the bureau offered numismatic products to customers at lower sales 

prices than sufficient to achieve the 15 percent margin. This is not an unfavorable result for the 

United States Mint’s numismatic operations. The United States Mint will review pricing practices 

in FY 2010 to ensure that numismatic sales revenue is sufficient to fund long-term operations 

while also maintaining reasonable prices for customers. 

SEIGNIORAGE PER DOLLAR ISSUED Seigniorage per dollar issued is the return to circulating 

operations, calculated as seigniorage divided by the total face value of circulated coinage shipped 

to Federal Reserve Banks (FRB). 

Seigniorage per dollar issued was $0.55 in FY 2009, above the target of $0.54. Weakened demand 

reduced the United States Mint’s return from circulating operations in FY 2009. Base metal 

expenses and the mix of circulating coin ordered by the FRB largely determine seigniorage per 

dollar issued performance. Toward the end of FY 2009, market prices for copper, nickel and zinc 

all started to increase to FY 2007 levels. The United States Mint expects production volumes to 

remain low in FY 2010. 

PRODUCTION PERCENT DEVIATION FROM NET PAY Production percent deviation from 

net pay is the absolute value of the percent fiscal year total circulating coin production varies 

from the total net pay less any FRB inventory adjustment. The United States Mint is responsible 

for providing the Nation’s coinage in sufficient quantity to meet the needs of commerce. The 

FRB is responsible for distributing coinage to the commercial banking sector. To accomplish its 

mission, the FRB maintains coin inventories, which commercial banks can withdraw from or 

deposit into. The difference between coins withdrawn and coins deposited is referred to as 

net-pay and represents the demand for coinage. To ensure inventories are adequate to meet 

demand, the United States Mint produces coinage in sufficient quantities to replenish the system. 

The deviation of circulating coin production from net pay indicates how well the United States 

Mint fulfills its core mission of minting and issuing coins to enable commerce. 

44
 
09-286 annual report.P5.indd 45 12/10/09 

BUDGET PERFORMANCE MEASURES 

2009 Result

 88.3% 

1.06 million

9% 

$ 0.55

6.5% 

$ 31.57

 81% 

Customer Satisfaction Index (CSI) 

Numismatic Customer Base 

Numismatic Net Margin 

Seigniorage per Dollar Issued 

Production Percent Deviation from Net Pay 

Protection Cost per Square Foot 

Employee Confidence in Protection 

2009 Target

 88.0% 

1.40 million

15% 

$ 0.54

Baseline 

$ 31.75

 83% 

2008

 87.5% 

1.27 million

15% 

$ 0.55

n/a 

$ 31.76

 81% 

2007

 90.5% 

0.97 million

14% 

$ 	 0.58

n/a

31.29

 81% 

2006

 90.5%

 n/a

 17%

$ 0.53

n/a

32.49

 82% 

2005

 n/a

 n/a

 27% 

$ 0.61

n/a

32.43

 84% 

Total production deviated 6.5 percent from net pay in FY 2009. This was a baseline year for the 

performance measure so no target was set. Monthly net-pay figures remained at 30-year lows for 

nearly all denominations. In the first quarter of FY 2009, the FRB significantly reduced forecasted 

orders for the remainder of the fiscal year. The United States Mint cut production accordingly. 

PROTECTION COST PER SQUARE FOOT Protection cost per square foot is the Protection 

Department’s total operating cost divided by the area of usable space of the United States Mint. 

Usable space is defined as 90% of total square footage. Operating costs exclude depreciation. 

Total square footage of usable space is relatively constant and only changes because of major 

events such as the addition or removal of a facility. The measure indicates the Protection Department’s cost efficiency in safeguarding United States Mint facilities, employees and assets. 

Protection cost per square foot decreased to $31.57 in FY 2009 from $31.76 last year. The FY 

2009 result was $0.18 below the target of $31.75. The Protection Department reduced total 

operating cost by approximately $250,000 (0.6 percent) from FY 2008 by curtailing expenses 

for other services and supplies and materials. The Protection Department will continue efforts to 

contain costs while fulfilling protection responsibilities in FY 2010. 

EMPLOYEE CONFIDENCE IN PROTECTION The Protection Department is responsible for 

providing a safe and secure workplace for United States Mint employees. The Employee Confidence in Protection measure indicates how well the Protection Department is achieving this 

objective. It is the percentage of United States Mint employees reporting a favorable response to 

their confidence in the Protection Department’s performance in safeguarding United States Mint 

assets and assets in the custody of the United States Mint. 

Survey results indicated that 81 percent of employees reported confidence in the Protection Department’s ability to safeguard the United States Mint in FY 2009. This was consistent with FY 

2008 performance but below the 83 percent target. 

The Protection Department is working to automate employee entry and exit at all United States 

Mint facilities. This is the most visible role that police officers play in the typical workday of most 

employees. The Protection Department plans to increase communication about these and other 

efforts that the police officers undertake to serve and protect employees while safeguarding assets 

under United States Mint control. 

45
 
09-286 annual report.P5.indd 46 12/10/09 

Analysis of Systems, Controls and Legal Compliance
 

The United States Mint is responsible for establishing and maintaining effective internal control 


over financial reporting, which includes safeguarding of assets and compliance with laws and 


regulations. The United States Mint has made a conscious effort to meet the internal control 


requirements of the Federal Manager’s Financial Integrity Act (FMFIA), the Federal Financial 


Management Improvement Act (FFMIA), the Office of Management and Budget (OMB) Circular 


A-123, and the Reports Consolidation Act of 2000. The organizations under the United States 


Mint’s purview are operating in accordance with the procedures and standards prescribed by the 


Comptroller General and OMB guidelines.
 

The systems of management controls for the United States Mint are designed to ensure that:
 

a) programs achieve their intended results;
 

b) resources are used consistent with overall mission;
 

c) programs and resources are free from waste, fraud and mismanagement;
 

d) laws and regulations are followed;
 

e) controls are sufficient to minimize any improper or erroneous payments;
 

f) performance information is reliable;
 

g) systems security is in substantial compliance with all relevant requirements;
 

h) continuity of operations planning in critical areas is sufficient to reduce risk to reasonable 


levels; and 

i) financial management systems are in compliance with Federal financial systems standards, i.e., 

FMFIA Section 4 and FFMIA. 

For all United States Mint responsibilities, we provide herein unqualified assurance that the above 

listed management control objectives, taken as a whole, were achieved by our organization during 

FY 2009. Specifically, this assurance is provided relative to Sections 2 and 4 of the FMFIA. We further assure that our financial management systems are in substantial compliance with requirements 

imposed by the FFMIA. 

In 2009, we conducted the mandatory Department of the Treasury evaluation of the effectiveness 

of the United States Mint’s internal controls over financial reporting in accordance with OMB 

Circular A-123, Management’s Responsibility for Internal Control, Appendix A. Based on the 

results of this evaluation, the United States Mint can provide unqualified assurance that internal 

control over financial reporting as of June 30, 2009, is operating effectively and no material 

weaknesses were found in the design or operation of the internal controls over financial reporting. 

46
 
In addition, the United States Mint has committed to maintaining effective internal control as 

demonstrated by the following actions: 

• Annual audits of the United States Mint's financial statements pursuant to the Chief Financial 

Officers Act, as amended, including a) information revealed in preparing the financial statements; 

b) auditor's reports on the financial statements; c) internal controls and compliance with laws 

and regulations and other materials related to preparing financial statements. 

• Tracking and closure of corrective actions identified in the Financial Statement Audit and 

A-123 Assessment. 

• Annual mandatory internal control training for all executives, managers and supervisors as part 

of the United States Mint Leadership Development Program. 

• Internal management and program reviews conducted for the purpose of assessing 

management controls. 

• Annual Action Items developed by the United States Mint's executive team to implement 

organization-wide initiatives and promote internal efficiencies, cultural accountability and 

greater public awareness. 

• Reviews of financial systems for requirements compliance in conjunction with OMB Circular 

A-127 and FFMIA. 

• Reviews of systems, applications and contingency plans conducted pursuant to the Computer 

Security Act of 1987 (40 U.S.C. § 759 note) and OMB Circular A-130, Management of Federal 

Information Resources. 

• Annual assessments, reviews and reporting performed in compliance with the Improper Payment 

Information Act (IPIA). 

• Reviews and reporting in compliance with the Federal Information Security Management Act 

(FISMA). 

The United States Mint has made significant improvement in implementing internal control over 

financial reporting. Last year we reported one material weakness surrounding "Inventory and 

Related Property." This year, because of the implementation of comprehensive corrective actions 

and the enforcement of internal controls by management, the United States Mint downgraded 

the classification of Inventory and Related Property to a significant deficiency based on FY 2009 

testing. The United States Mint is committed to continue to monitor and improve its internal 

controls throughout the entire organization. 
09-286 annual report.P5.indd 48 12/10/09 

Limitations of the Financial Statements
 

The principal financial statements have been prepared to report the financial position and results 

of operations of the United States Mint, pursuant to the requirements of 31 U.S.C. § 3515(b). 

The statements have been prepared from the books and records of the United States Mint 

in accordance with generally accepted accounting principles for Federal entities and the formats 

prescribe by the OMB. The statements are in addition to the financial reports used to monitor 

and control budgetary resources which are prepared from the same books and records. 

The statements should be read with the realization that they are for a component of the United 

States Government. 

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09-286 annual report.P5.indd 49 12/10/09 

Independent Auditors’ Report 

Inspector General
 

United States Department of the Treasury
 

Director
 

United States Mint:
 

We have audited the accompanying balance sheets of the United States Mint as of September 30, 2009 and 2008, and 

the related statements of net cost, changes in net position, and combined statements of budgetary resources (hereinafter referred to as “financial statements”) for the years then ended. These financial statements are the responsibility 

of the United States Mint’s management. Our responsibility is to express an opinion on these financial statements 

based on our audits. 

We conducted our audits in accordance with auditing standards generally accepted in the United States of America; 

the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller 

General of the United States; and Office of Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements 

for Federal Financial Statements, as amended. Those standards and OMB Bulletin No. 07-04 require that we plan 

and perform the audits to obtain reasonable assurance about whether the financial statements are free of material 

misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing 

audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the 

effectiveness of the United States Mint’s internal control over financial reporting. Accordingly, we express no such 

opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the 

financial statements, assessing the accounting principles used and significant estimates made by management, as well 

as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for 

our opinion. 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position 

of the United States Mint as of September 30, 2009 and 2008, and its net costs, changes in net position, and budgetary 

resources for the years then ended in conformity with U.S. generally accepted accounting principles. 

The information in the Management’s Discussion and Analysis, and Required Supplementary Information, is not 

a required part of the financial statements, but is supplementary information required by U.S. generally accepted 

accounting principles. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of this information. However, we did not audit this 

information and, accordingly, we express no opinion on it. 

In accordance with Government Auditing Standards, we have also issued our reports dated November 24, 2009, on 

our consideration of the United States Mint’s internal control over financial reporting and our tests of its compliance 

with certain provisions of laws, regulations, and contracts and other matters. The purpose of those reports is to 

describe the scope of our testing of internal control over financial reporting and compliance and the results of that 

testing, and not to provide an opinion on the internal control over financial reporting or on compliance. Those 

reports are an integral part of an audit performed in accordance with Government Auditing Standards and should be 

read in conjunction with this report in assessing the results of our audits. 

49


November 24, 2009 
 

 

 

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DEPARTMENT OF THE TREASURY UNITED STATES MINT 

BALANCE SHEETS 

(dollars in thousands) 

As of September 30, 

2009 2008 

Assets 

Intragovernmental:

 Fund Balance with Treasury (Note 3) $ 429,476 $ 303,386

Accounts Receivable, Net (Note 4) 406 399

 Advances and Prepayments (Note 5) 2,877 4,292

Total Intragovernmental Assets 432,759 308,077

 Custodial Gold and Silver Reserves (Notes 2 and 6) 10,493,740 10,493,740

 Accounts Receivable, Net (Note 4) 6,890 23,411

 Inventory (Notes 7 and 20) 354,900 470,957

 Supplies 16,815 16,206

 Property, Plant and Equipment, Net (Note 8) 200,148 207,634

 Advances and Prepayments (Note 5) 2 4,656 

Total Non-Intragovernmental Assets $ 11,072,495 $ 11,216,604

Total Assets (Notes 2 and 14) $ 11,505,254 $ 11,524,681 

Heritage Assets (Note 9) 

Liabilities 

Intragovernmental:

Accounts Payable $ 5,597 $ 6,425

 Accrued Workers’ Compensation and Benefits 7,831 7,259 

Total Intragovernmental Liabilities 13,428 13,684

 Custodial Liability to Treasury (Notes 2 and 6) 10,493,740 10,493,740

 Accounts Payable 41,697 42,562

 Surcharges Payable (Note 3) 7,330 11,314

 Accrued Payroll and Benefits 17,409 16,635

 Other Actuarial Liabilities 25,380 29,349

 Unearned Revenue 1,710 11,023

Deposit Fund Liability 25 – 

Total Non-Intragovernmental Liabilities $ 10,587,291 $ 10,604,623 

Total Liabilities (Notes 10 and 14) $ 10,600,719 $ 10,618,307 

Commitments and Contingencies (Notes 12 and 13) 

Net Position 

Cumulative Results of Operations - Earmarked Funds (Note 14) 904,535 906,374 

Total Liabilities and Net Position $ 11,505,254 $ 11,524,681 

The accompanying notes are an integral part of these financial statements. 

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DEPARTMENT OF THE TREASURY UNITED STATES MINT 

STATEMENTS OF NET COST 

(dollars in thousands) 

For the years ended September 30, 

2009 2008 

Numismatic Production and Sales

 Gross Cost $ 2,054,905 $ 1,398,624

 Less Earned Revenue (2,109,436) (1,476,433) 

Net Program Revenue (54,531) (77,809) 

Numismatic Production and Sales of Circulating Coins

 Gross Cost 6,145 7,128

 Less Earned Revenue (6,145) (7,128)

Net Program Revenue – – 

Circulating Production and Sales

 Gross Cost 349,843 588,308

 Less Earned Revenue (349,843) (588,308)

Net Program Revenue – – 

Net Revenue Before Protection of Assets (54,531) (77,809) 

Protection of Assets

 Protection Costs 41,102 41,000 

Net Cost of Protection Assets 41,102 41,000 

Net Revenue from Operations (Notes 14 and 15) $ (13,429) $ (36,809) 

The accompanying notes are an integral part of these financial statements. 

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DEPARTMENT OF THE TREASURY UNITED STATES MINT 

STATEMENTS OF CHANGES IN NET POSITION 

(dollars in thousands) 

For the years ended September 30, 

2009 2008 

Cumulative Results of Operations 

Net Position, Beginning of Year - Earmarked Funds (Note 14) $ 906,374 $ 877,506 

Financing Sources:

 Transfers to the Treasury General Fund On-Budget (Note 19) (35,000) (15,000)

 Transfers to the Treasury General Fund Off-Budget (Note 19) (440,000) (735,000)

 Other Financing Sources (Seigniorage) (Note 16) 447,068 728,638

 Imputed Financing Sources (Note 11) 11,834 13,421

 Transfers in Without Reimbursement 830 – 

Total Financing Sources (15,268) (7,941) 

Net Revenue from Operations 13,429 36,809 

Net Position, End of Year - Earmarked Funds (Note 14) $ 904,535 $ 906,374 

The accompanying notes are an integral part of these financial statements. 

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DEPARTMENT OF THE TREASURY UNITED STATES MINT 

STATEMENTS OF BUDGETARY RESOURCES 

(dollars in thousands) 

For the years ended September 30, 

2009 2008 

Budgetary Resources 

Unobligated balance, brought forward October 1 $ 50,858 $ 53,088 

Recoveries of prior-year unpaid obligations 54,939 26,759 

Budget authority

 Spending authority from offsetting collections

 Earned

 Collected 2,467,058 2,066,420

 Change in receivable from federal sources 7 476

 Change in unfilled customer orders

 Advance received (9,313) 8,976

 Without advance from federal sources (369) 741

 Subtotal 2,457,383 2,076,613 

Permanently not available (35,000) (15,000) 

Total Budgetary Resources $ 2,528,180 $ 2,141,460 

Status of Budgetary Resources 

Obligations incurred

 Reimbursable (Note 17) $ 2,282,497 $ 2,090,602 

Unobligated balances

Apportioned 245,683 50,858 

Total Status of Budgetary Resources $ 2,528,180 $ 2,141,460 

Change in Obligated Balances 

Obligated balance, net

 Unpaid obligations, brought forward, October 1 $ 259,645 $ 208,543

Less: Uncollected customer payments from federal sources, 

brought forward, October 1 (7,117) (5,900)

 Total unpaid obligated balance, net 252,528 202,643 

Obligations incurred, net (Note 17) 2,282,497 2,090,602 

Gross outlays (2,296,680) (2,012,741) 

Recoveries of prior-year unpaid obligations, actual (54,939) (26,759) 

Change in uncollected customer payments from federal sources 362 (1,217) 

Obligated balance, net, end of the period

 Unpaid obligations 190,523 259,645

 Uncollected customer payments from federal sources (6,755) (7,117)

 Total unpaid obligated balance, net, end of period 183,768 252,528 

Net Outlays 

Net outlays

 Gross outlays 2,296,680 2,012,741

 Collections (2,457,745) (2,075,396) 

Total Outlays $ (161,065) $ (62,655) 

The accompanying notes are an integral part of these financial statements. 

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09-286 annual report.P5.indd 54 12/10/09 

Notes to the Financial Statements 

For the Years Ended September 30, 2009 and 2008 

(dollars are in thousands except Fine Troy Ounce information) 

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

REPORTING ENTITY Established in 1792, the United States Mint is a bureau of the Department 

of the Treasury (Treasury). The mission of the United States Mint is as follows: The men and 

women of the United States Mint serve the Nation by exclusively and efficiently creating the highest 

quality, most beautiful and inspiring coins and medals that: enable commerce; reflect American 

values; advance artistic excellence; educate the public by commemorating people, places and 

events; and fulfill retail demand for coins. Numismatic products include medals; proof coins; 

uncirculated coins; platinum, gold, and silver bullion coins; and commemorative coins. Custodial 

assets consist of the Treasury-owned gold and silver bullion reserves. These custodial reserves are 

often referred to as “deep storage” and “working stock,” and are reported on the Balance Sheet. 

The production of numismatic products is financed through sales to the public. The production 

of circulating coinage is financed through sales of coins at face value to the Federal Reserve Banks 

(FRB). Additionally, the United States Mint sells certain circulating products directly to the public as numismatic items. Activities related to protection of Treasury-owned custodial assets are 

funded by the United States Mint Public Enterprise Fund (PEF). 

Pursuant to Public Law (P.L.) 104-52, Treasury, Postal Service, and General Government 

Appropriation Act for FY 1996, as codified at 31 U.S.C. § 5136, the PEF was established to 

account for all receipts and expenses related to production and sale of numismatic items and 

circulating coinage, as well as protection activities. Expenses accounted for in the PEF include the 

entire cost of operating the United States Mint, from the purchase of raw materials to the salaries 

of personnel. Any amount in the PEF that is determined to be in excess of the amount required 

by the PEF shall be transferred to the Treasury General Fund. 

Treasury’s Bullion Fund (Bullion Fund) is used to account for Treasury-owned gold and silver 

reserves. A separate Schedule of Custodial Deep Storage Gold and Silver Reserves has been prepared for the deep storage portion of the Treasury-owned gold and silver reserves for which the 

United States Mint acts as custodian. 

BASIS OF ACCOUNTING AND PRESENTATION The accompanying financial statements 

were prepared based on the reporting format promulgated by the Office of Management and 

Budget (OMB) Circular A-136, Financial Reporting Requirements, and in accordance with 

accounting standards issued by the Federal Accounting Standards Advisory Board (FASAB). The 

United States Mint’s financial statements have been prepared to report the financial position, net 

cost of operations, changes in net position, and budgetary resources, as required by 31 U.S.C. § 5136. 

Management uses estimates and assumptions in preparing financial statements. Those estimates 

and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent 

assets and liabilities, and the reported revenues and expenses. Actual results could differ from 

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those estimates. Accounts subject to estimates include, but are not limited to, depreciation, imputed costs, payroll and benefits, accrued worker’s compensation, allowance for uncollectible 

accounts receivable, and unemployment benefits. 

The accompanying financial statements have been prepared on the accrual basis of accounting. 

Under the accrual method, revenues and other financing sources are recognized when earned and 

expenses are recognized when a liability is incurred, without regard to receipt or payment of cash. 

EARNED REVENUES AND OTHER FINANCING SOURCES (SEIGNIORAGE) 

Numismatic Sales: Revenue from numismatic sales to the public is recognized when products 

are shipped to customers. Prices for numismatic products are based on the product cost plus a 

reasonable net margin. Bullion coins are priced based on the market price of the precious metals 

plus a premium to cover manufacturing, marketing and distribution costs. 

Numismatic Sales of Circulating Coins: Specially packaged products containing circulating coins 

are sold directly to the public without first being sold to the FRB. These products are treated as a 

circulating and numismatic hybrid product. 

Circulating Sales: The PEF provides for the sale of circulating coinage at face value to the FRB. 

Revenue from the sale of circulating coins is recognized when the product is shipped to the FRB. 

Revenue from the sale of circulating coins to the FRB and numismatic sales of circulating coins to 

the public is limited to the recovery of the cost of manufacturing and distributing those coins. 

Other Financing Source (Seigniorage): Seigniorage equals the face value of newly minted coins 

less the cost of production (which includes the cost of metal, manufacturing, and transportation). 

Seigniorage adds to the government’s cash balance, but unlike the payment of taxes or other 

receipts, it does not involve a transfer of financial assets from the public. Instead, it arises from 

the exercise of the government’s sovereign power to create money and the public’s desire to hold 

financial assets in the form of coins. Therefore, the President’s Budget excludes seigniorage from 

receipts and treats it as a means of financing. Seigniorage is recognized when coins are shipped to 

the FRB in return for deposits to the PEF. 

Rental Revenue: The United States Mint sublets office space at cost to other Federal entities in 

the two leased buildings in Washington, DC. In FY 2009, a lease was signed with a commercial 

vendor for a portion of the first floor space of the building at 801 9th Street, NW. 

FUND BALANCE WITH TREASURY All cash is maintained at the Treasury. Fund Balance with 

Treasury is the aggregate amount of the United States Mint’s cash accounts with the U.S. Government’s central accounts and from which the United States Mint is authorized to make expenditures. 

It is an asset because it represents the United States Mint’s claim to U.S. Government resources. 

ACCOUNTS RECEIVABLE Accounts receivable are amounts due to the United States Mint 

from the public and other Federal entities. An allowance for uncollectible accounts receivable is 

established for all accounts that are more than 180 days past due. However, the United States 

Mint will continue collection action on those accounts that are more than 180 days past due, as 

specified by the Debt Collection Improvement Act of 1996. 

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INVENTORIES Inventories of circulating and numismatic coinage that do not contain either 

gold or silver are valued at the lower of cost or market. Costs of the metal and fabrication 

components of the inventories are determined using a weighted average inventory methodology. 

Conversion costs (i.e., the cost to convert the fabricated blank into a finished coin) are valued using a standard cost methodology. The United States Mint uses three classifications for inventory: 

Raw material (either raw metal or unprocessed coil and blanks); work in process (WIP – material 

being transformed to finished coins), and finished goods (coins that are packaged or bagged and 

ready for sale or shipment to the public or the FRB). 

TREASURY-OWNED CUSTODIAL GOLD AND SILVER BULLION RESERVES Treasuryowned gold and silver reserves consist of both “deep storage” and “working stock” gold and silver. 

Deep Storage is defined as that portion of the Treasury-owned Gold and Silver Bullion Reserve 

which the United States Mint secures in sealed vaults. Deep storage gold comprises the vast 

majority of the Bullion Reserve and consists primarily of gold bars. Deep storage silver is also 

primarily in bar form. 

Working Stock is defined as that portion of the Treasury-owned Gold and Silver Bullion Reserve 

which the United States Mint can use as the raw material for minting coins. Working stock gold 

comprises only about one percent of the Gold Bullion Reserve and consists of bars, blanks, unsold 

coins, and condemned coins. Similarly, working stock silver consists of bars, blanks, unsold coins, 

or condemned coins. 

Treasury allows the United States Mint to use some of its gold and silver as working stock. Generally, 

the United States Mint does not deplete the working stock when used in production. Instead, the 

United States Mint will purchase a like amount of gold and silver on the open market to replace 

the working stock used. In those rare cases in which the gold or silver is depleted, the United 

States Mint reimburses Treasury the current market value of the depleted gold or silver. 

SUPPLIES Supplies are items that are not considered inventory and are not a part of the finished 

product. These items include plant engineering and maintenance supplies, as well as die steel and 

coin dies. Supplies are accounted for using the consumption method, in which supplies are recognized 

as assets upon acquisition and expensed as they are consumed. 

ADVANCES AND PREPAYMENTS Payments in advance of the receipt of goods and services are 

recorded as advances and prepaid expenses at the time of prepayment, and are expensed when 

related goods and services are received. 

PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are valued at cost less 

accumulated depreciation. The United States Mint’s threshold for capitalizing new property, plant 

and equipment is $25,000 for single purchases and $500,000 for bulk purchases. Depreciation 

is computed on a straight-line basis over the estimated useful lives of the related assets as follows: 

Computer Equipment 3 to 5 years

Software 2 to 10 years

Machinery and Equipment 7 to 20 years 

Structures, Facilities and Leasehold Improvements 10 to 30 years 

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Major alterations and renovations are capitalized over the shorter of a 20-year period or the 

remaining useful life of the asset and depreciated using the straight-line method, while maintenance and repair costs are charged to expense as incurred. There are no restrictions on the use or 

convertibility of general property, plant and equipment. 

HERITAGE ASSETS Heritage assets are items that are unique because of their historical, cultural, 

educational, or artistic importance. These items are collection type assets that are maintained for 

exhibition and are preserved indefinitely. 

LIABILITIES Liabilities represent actual and estimated amounts likely to be paid as a result of 

transactions or events that have already occurred. All liabilities covered by budgetary resources 

can be paid from revenues received by the PEF. 

SURCHARGESLegislation authorizing commemorative coin programs often requires that the sales 

price of each coin includes an amount, called a surcharge, that is authorized to provide funds to a 

qualifying organization or group of organizations for the purposes specified. A surcharges payable 

account is established for surcharges collected but not yet paid to designated recipient organizations. 

Recipient organizations cannot receive surcharge payments unless all of the United States Mint’s 

operating costs for the coin program are fully recovered. The United States Mint may make interim 

surcharge payments during a commemorative program if the recipient organization meets the 

eligibility criteria in the Act, if the recovery of all costs of the program is determinable, and if the 

United States Mint is assured it is not at risk of a loss. Additionally, recipient organizations must 

demonstrate that they have raised from private sources an amount equal to or greater than the 

surcharges collected based on sales. A recipient organization has two years from the end of the 

program to meet this requirement. 

EARMARKED FUNDS Pursuant to P.L. 104-52, the PEF was established as the sole funding 

source for United States Mint activities. The PEF meets the requirements of an earmarked fund 

as defined in Statement of Federal Financial Accounting Standard (SFFAS) 27, Identifying and 

Reporting Earmarked Funds. As non-entity and non-PEF assets, the Treasury-owned gold and 

silver bullion reserves are not considered to be earmarked funds. 

UNEARNED REVENUES These are amounts received for numismatic orders which have not yet 

been shipped to the customer. 

RETURN POLICY If for any reason a numismatic customer is dissatisfied, the entire product must 

be returned within seven days of receiving the order to receive a refund or replacement. Shipping 

charges are not refunded. Further, the United States Mint will not accept partial returns or issue 

partial refunds. Historically, the United States Mint receives few returns, which are immaterial. 

Therefore, no reserve for returns is considered necessary. 

SHIPPING AND HANDLING The United States Mint reports shipping and handling costs of 

circulating coins and numismatic products as a cost of goods sold. General postage costs for 

handling administrative mailings are reported as part of the United States Mint’s general and 

administrative expenses. 

ANNUAL, SICK AND OTHER LEAVE Annual leave is accrued when earned and reduced as 

leave is taken. The balance in the accrued leave account is calculated using current pay rates. Sick 

leave and other types of non-vested leave are charged to operating costs as they are used. 

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ACCRUED WORKERS’ COMPENSATION AND OTHER ACTUARIAL LIABILITIES The 

Federal Employees’ Compensation Act (FECA) provides income and medical cost protection to 

cover Federal civilian employees injured on the job, employees who have incurred a work-related 

injury or occupational disease, and to pay beneficiaries of employees whose deaths are attributable 

to job-related injuries or occupational disease. The FECA program is administered by the United 

States Department of Labor (DOL), which pays valid claims and subsequently seeks reimbursement from the United States Mint for these paid claims. 

The FECA liability is based on two components. The first component is based on actual claims paid 

by DOL but not yet reimbursed by the United States Mint. There is generally a two-to-three-year 

time period between payment by DOL and DOL requesting payment from the United States Mint. 

The second component is the actuarial liability, which estimates the liability for future payments 

as a result of past events. The actuarial liability includes the expected liability for death, disability, 

medical, and miscellaneous costs for approved compensation cases. 

PROTECTION COSTS Treasury-owned gold and silver reserves are in the custody of the United 

States Mint, which is responsible for safeguarding the reserves. These costs are borne by the United States Mint, but are not directly related to the circulating or numismatic coining operations 

of the United States Mint. The Protection Department, which is responsible for safeguarding the 

reserves, is a separate function from coining operations. 

OTHER COST AND EXPENSES (MUTILATED AND UNCURRENT) Other costs and expenses 

consist primarily of returns of mutilated or uncurrent coins to the United States Mint. Coins that 

are chipped, fused, and/or not machine-countable are considered mutilated. The United States 

Mint reimburses the entity that sent in the mutilated coins using weight formulas that estimate 

the face value of these coins. Uncurrent coins are worn, but machine-countable, and their genuineness and denominations are still recognizable. Uncurrent coins are replaced with new coins of 

the same denomination by the FRB. The FRB then seeks replacement coins from the United States 

Mint. All mutilated or uncurrent coins received by the United States Mint are sold to its fabrication 

contractors to be processed into coils or blanks to be used in future coin production. 

TAX EXEMPT STATUS As an agency of the Federal Government, the United States Mint is 

exempt from all taxes imposed by any governing body, whether it is a Federal, state, commonwealth, local, or foreign government. 

CONCENTRATIONS The United States Mint purchases the coil and blanks used in the production of circulating coins from three vendors at competitive market prices. The United States Mint 

also purchases precious metal blanks from three different suppliers. 

CONTINGENT LIABILITIES Certain conditions exist as of the date of the financial statements, 

which may result in a loss to the government, but which will only be resolved when one or more 

future events occur or fail to occur. The Mint recognizes a loss contingency when the future 

outflow or other sacrifice of resources is probable and reasonably estimable. Loss contingencies 

that are determined by management to have a reasonably possible chance of occurring or that 

cannot be estimated are included as a footnote to the financial statements. Contingent liabilities 

considered remote are generally not disclosed unless they involve guarantees, in which case the 

nature of the guarantee is disclosed. 

TRANSFERS TO THE TREASURY GENERAL FUND The United States Mint transfers to the 

Treasury General Fund amounts determined to be in excess of the amounts required for United 

States Mint’s PEF operations and programs. These amounts are generated from the seigniorage 

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derived from the sale of circulating coins and from net revenues generated from the sale of 

numismatic products. 

Seigniorage is an off-budget receipt to the Treasury General Fund. Off-budget means that these 

funds cannot be used to reduce the annual budget deficit. Instead, they are used as a financing 

source (i.e., they reduce the amount of cash that Treasury has to borrow to pay interest on the 

national debt). 

Net revenues generated from the sale of numismatic products are transferred to the Treasury 

General Fund as an on-budget receipt. Unlike seigniorage, the numismatic transfer amount is 

available to the Federal government as current operating revenue or it can be used to reduce the 

annual budget deficit. 

BUDGETARY RESOURCES The United States Mint does not receive an appropriation from the 

Congress. Instead, the United States Mint receives all financing from the public, including the 

FRB, and receives an apportionment of those funds from OMB. This apportionment is considered 

a budgetary authority, which allows the United States Mint to spend the funds. The United States 

Mint’s budgetary resources consist of unobligated balances, transfers, and spending authority from 

offsetting collections, which is net of amounts that are permanently not available. “Permanently 

not available” funds are on-budget transfers to the General Fund. 

HEDGING The United States Mint engages in a hedging program to avoid fluctuation in silver 

costs as a result of the changes in market prices. The United States Mint purchases silver in large 

quantities and sells an interest in that silver to a trading partner, while maintaining physical custody 

and title to the silver. Sales of silver to the trading partner are made at the same spot price that the 

United States Mint paid to obtain the silver on the open market. The partner’s interest in United 

States Mint silver is reduced as finished silver bullion coins are sold to authorized purchasers 

(APs). Repurchases of the trading partner’s interest in the silver occurs upon sale of coins by the 

United States Mint. Repurchases are made on the same day as sales, in the same quantity sold, 

and using the same spot price as was used for the sale to the AP. Each sale to and from the trading 

partner carries a small transaction fee, the selling and buying fees net to a cost of one half cent per 

ounce. The United States Mint incurred $121 thousand in hedging fees in FY 2009, compared to 

$90 thousand incurred in FY 2008. Additionally, the United States Mint incurred interest costs of 

$509 thousand in FY 2009. Interest costs were not incurred previously because the market was 

functioning “normally.” In FY 2009, the market was in what is referred to as “backwardation,” 

which means that the difference between the future contract price of silver and the current spot 

price is less than the carrying cost of the silver. 

RECLASSIFICATIONS Certain amounts included in the reconciliation of net costs of operations 

to budget as of September 30, 2008 have been reclassified to conform to the September 30, 2009 

presentation. 

2. NON-ENTITY ASSETS 

Components of Non-entity Assets at September 30 are as follows: 

2009 2008 

Custodial Gold Reserves (Deep Storage) $ 10,355,539 $ 10,355,539 

Custodial Silver Reserves (Deep Storage) 9,148 9,148 

Custodial Gold Reserves (Working Stock) 117,514 117,514 

Custodial Silver Reserves (Working Stock) 11,539 11,539 

Total Non-entity Assets 10,493,740 10,493,740 

Total Entity Assets 1,011,514 1,030,941 

Total Assets $ 11,505,254 $ 11,524,681

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Entity assets are assets that the reporting entity has authority to use in its operations. United States Mint management has legal authority to use entity assets to meet entity obligations. 

Treasury-owned gold and silver bullion reserves, for which the United States Mint is custodian, 

are non-entity assets. 

3. FUND BALANCE WITH TREASURY 

Fund Balance with Treasury at September 30 consists of the following: 

2009 2008 

Revolving Fund $ 429,451 $ 303,386 

Other 25 – 

Total Fund Balance with Treasury $ 429,476 $ 303,386 

Status of Fund Balance with Treasury 

Unobligated Balance $ 245,683 $ 50,858 

Obligated Balance, Not Yet Disbursed 183,768 252,528 

Non-Budgetary FBWT 25 – 

Total $ 429,476 $ 303,386 

The United States Mint does not receive appropriated budget authority. The Fund Balance with 

Treasury is entirely available for use to support United States Mint operations. At September 30, 

2009 and 2008, the revolving fund balance included $7.3 million and $11.3 million, respectively, 

in restricted amounts for possible payment of surcharges to recipient organizations. 

4. ACCOUNTS RECEIVABLE, NET 

Components of accounts receivable are as follows:

 September 30, 2009

 Gross Receivables Allowance Net Receivables 

Intragovernmental $ 6,352 $ (5,946) $ 406 

With the Public 8,427 (1,537) 6,890 

Total Accounts Receivable $ 14,779 $ (7,483) $ 7,296

 September 30, 2008 

Gross Receivables Allowance Net Receivables 

Intragovernmental $ 6,345 $ (5,946) $ 399 

With the Public 24,254 (843) 23,411 

Total Accounts Receivable $ 30,599 $ (6,789) $ 23,810 

At September 30, 2009, there were approximately $6.4 million in intragovernmental accounts 

receivable, compared to $6.3 million at September 30, 2008. This largely represents amounts due 

to the United States Mint for a joint numismatic product with another Federal entity. Management 

determined that the collection of $5.9 million related to the program was in doubt and has included 

that amount in the Allowance for Doubtful Accounts. Receivables with the public at September 

30, 2009, are $8.4 million, of which $1.6 million is owed by fabricators for scrap and webbing, 

in addition to amounts owed by the public for numismatic products. This compares to receivables 

with the public at September 30, 2008, of $24.3 million, which consists primarily of amounts 

owed by metal fabricators for scrap and webbing. The remainder of the accounts receivable 

represents outstanding balances on numismatic orders. The allowance for doubtful accounts is the 

balance of the accounts receivable with the public that is past due by 180 days or more. Collection 

action continues on these accounts, but an allowance is recorded. 

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2009 2008 

Gold - Deep Storage:

 Inventories (FTO) 245,262,897 245,262,897

 Market Value ($ per FTO) $ 995.75 $ 884.50

 Market Value ($ in thousands) $ 244,220,530 $ 216,935,032

 Statutory Value ($ in thousands) $ 10,355,539 $ 10,355,539 

Gold - Working Stock:

 Inventories (FTO) 2,783,219 2,783,219

 Market Value ($ per FTO) $ 995.75 $ 884.50

 Market Value ($ in thousands) $ 2,771,390 $ 2,461,757

 Statutory Value ($ in thousands) $ 117,514 $ 117,514 

Silver - Deep Storage:

 Inventories (FTO) 7,075,171 7,075,171

 Market Value ($ per FTO) $ 16.45 $ 12.96

 Market Value ($ in thousands) $ 116,387 $ 91,694

 Statutory Value ($ in thousands) $ 9,148 $ 9,148 

Silver - Working Stock:

 Inventories (FTO) 8,924,829 8,924,829

 Market Value ($ per FTO) $ 16.45 $ 12.96 

Market Value ($ in thousands) $ 146,813 $ 115,666 

Statutory Value ($ in thousands) $ 11,539 $ 11,539 

Total Market Value of Custodial Gold 

and Silver Reserves ($ in thousands) $ 247,255,119 $ 219,604,149 

Total Statutory Value of Custodial Gold 

and Silver Reserves ($ in thousands) $ 10,493,740 $ 10,493,740 

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5. ADVANCES AND PREPAYMENTS 

The components of advances and prepayments at September 30 are as follows: 

2009 2008 

Intragovernmental $ 2,877 $ 4,292

With the Public 2 4,656 

Total Advances and Prepayments $ 2,879 $ 8,948 

Intragovernmental advances and prepayments at September 30, 2009 and 2008, include $2.1 million 

and $2.5 million, respectively, that the United States Mint paid the Treasury Working Capital 

Fund for a variety of centralized services. The remaining balance of approximately $700 thousand 

represents payments made to the United States Postal Service for product delivery services at 

September 30, 2009, compared to approximately $1.8 million paid at September 30, 2008. 

Advances and Prepayments with the public for FY 2008 consist primarily of advances for freight 

forwarding. The United States Mint had no advances for freight forwarding outstanding at the 

end of FY 2009. 

6. CUSTODIAL GOLD AND SILVER BULLION RESERVES 

As custodian, the United States Mint is responsible for safeguarding much of the Treasury-owned 

gold and silver bullion reserves, which include deep storage and working stock. The asset and the 

custodial liability to Treasury are reported on the Balance Sheet at statutory rates. In accordance 

with 31 U.S.C. § 5117(b) and 31 U.S.C. § 5116(b)(2), statutory rates of $42.2222 per fine troy 

ounce (FTO) of gold and no less than $1.292929292 per FTO of silver are used to value the 

entire custodial reserves held by the United States Mint. Accordingly, the United States Mint values 

the silver at $1.292929292 per FTO. 

The market value for gold and silver at September 30 is determined by the London Gold Fixing 

(PM) rate. Amounts and values of custodial gold and silver in custody of the United States Mint 

at September 30 are as follows: 

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7. INVENTORY AND RELATED PROPERTY 

The components of inventories and related property at September 30 are summarized below: 

2009 2008 

Raw Materials $ 191,320 $ 313,186

Work-In-Process 68,364 49,481 

Inventory held for current sale 95,216 108,290 

Total Inventory and Related Property $ 354,900 $ 470,957 

Raw materials consist of unprocessed materials and by-products of the manufacturing process 

and the metal value of unusable inventory such as scrap or condemned coins that will be recycled 

into a usable raw material. In addition, as of September 30, 2009 and 2008, the raw material 

inventory includes $88.0 million and $32.0 million, respectively, in fair value silver hedge activity 

of which additional information can be found in note 20. Work-in-process consists of semi-finished materials. 

8. PROPERTY, PLANT AND EQUIPMENT, NET 

Components of property, plant and equipment are as follows: 

September 30, 2009 

Asset Cost Accumulated Depreciation Total Property, Plant

 and Amortization and Equipment, Net 

Land $ 2,529 $ – $ 2,529 

Structures, Facilities and

 Leasehold Improvements 203,374 (132,661) 70,713 

Computer Equipment 29,352 (27,703) 1,649 

ADP Software 57,099 (55,305) 1,794 

Construction-In-Progress 17,125 – 17,125 

Machinery and Equipment 265,843 (159,505) 106,338 

Total Property, Plant

 and Equipment, Net $ 575,322 $ ($375,174) $ 200,148 

September 30, 2008 

Asset Cost Accumulated Depreciation Total Property, Plant

 and Amortization and Equipment, Net 

Land $ 2,529 $ – $ 2,529 

Structures, Facilities and

 Leasehold Improvements 192,499 (122,640) 69,859 

Computer Equipment 30,990 (28,082) 2,908 

Software 57,255 (54,735) 2,520 

Construction-In-Progress 26,296 – 26,296 

Machinery and Equipment 244,207 (140,685) 103,522 

Total Property, Plant and

 Equipment, Net $ 553,776 $ (346,142) $ 207,634 

The land and buildings used to manufacture circulating coinage and numismatic products are 

owned by the United States Mint and located in Philadelphia, Pennsylvania; Denver, Colorado; 

San Francisco, California and West Point, New York. In addition, the United States Mint 

owns the land and buildings at the United States Bullion Depository at Fort Knox, Kentucky. 

Construction-in-process (CIP) represents assets that are underway, such as in the process of being 

readied for use, or which are being tested for acceptability, but which are not yet being fully utilized 

by the United States Mint. 

Depreciation and amortization expenses charged to operations during the years ended September 

30, 2009 and 2008, were $34.2 million and $34.3 million, respectively. 

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9. HERITAGE ASSETS 

The United States Mint maintains collections of heritage assets which are any property, plant, or 

equipment that is retained by the United States Mint for its historic, natural, cultural, educational, 

or artistic value or significant architectural characteristics. For example, the United States Mint’s 

heritage assets contain, among other things, examples of furniture and equipment used in the 

United States Mint facilities over the years, as well as examples of the coin manufacturing process, 

such as plasters, galvanos, dies, punches, and actual finished coins. The coin collections include 

examples of the various coins produced by the United States Mint over the years, separated into 

collections of pattern pieces/prototypes, coin specimens, quality samples, and exotic metal coin 

samples. The building housing the United States Mint in Denver, Colorado, is considered a multi-use 

heritage asset. The United States Mint generally does not place a value on heritage assets, even 

though some of the coins and artifacts are priceless. However, the assets are accounted for and 

controlled for protection and conservation purposes. Heritage assets held by the United States 

Mint are generally in acceptable physical condition. The following chart represents the new terminology the United States Mint applied to the various collections. The quantity of heritage assets 

remained the same. The assets were simply reclassified. 

Coin Collections Quantity of Collections Held September 30,

2009 2008 

Pattern Pieces/Prototypes 1 (new category 2009) 

Coin Specimens 1 3 

Quality Samples 1 (new category 2009) 

Exotic Metal Coin Samples 1 (new category 2009) 

Total 4 3 

Historical Artifacts Quantity of Collections Held September 30,

2009 2008 

Antiques/Artifacts 1 3 

Plasters 1 (new category 2009) 

Galvanos 1 (new category 2009) 

Dies 1 (new category 2009) 

Punches 1 (new category 2009) 

Historical Documents 1 (new category 2009) 

Multi-use heritage asset 

(United States Mint at Denver, CO) 1 (new category 2009) 

Total 7 3 

10. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

Components of Liabilities Not Covered by Budgetary Resources at September 30 are as follows: 

2009 2008 

Custodial Gold Reserves (Deep Storage) $ 10,355,539 $ 10,355,539 

Custodial Silver Reserves (Deep Storage) 9,148 9,148 

Working Stock Inventory - Gold 117,514 117,514 

Working Stock Inventory - Silver 11,539 11,539 

Other 25 – 

Total Liabilities Not Covered by Budgetary Resources $ 10,493,765 $ 10,493,740 

Total Liabilities Covered by Budgetary Resources 106,954 124,567 

Total Liabilities $ 10,600,719 $ 10,618,307 

Liabilities not covered by budgetary resources represent the United States Mint’s custodial liabilities 

to the Treasury that are entirely offset by Treasury-owned gold and silver bullion reserves held by 

the United States Mint on behalf of the Federal Government. The new category “Other” represents 

the refundable security deposit received from the commercial tenant in the headquarters building. 

63
 
 

 

 

 

2008

Social Security System $ 6,866 $ 7,047 

Civil Service Retirement System 1,864 1,674 

Federal Employees Retirement System

 (Retirement and Thrift Savings Plan) 11,593 11,502 

Total Retirement Plans and Other Post-employment Cost $ 20,323 $ 20,223 

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11. RETIREMENT PLANS, OTHER POST-EMPLOYMENT COSTS AND OTHER

IMPUTED COSTS

The United States Mint contributes seven percent of basic pay for employees participating in the

Civil Service Retirement System (CSRS). Most employees hired after December 31, 1983, are

automatically covered by the Federal Employees’ Retirement System (FERS) and Social Security.

A primary feature of FERS is that it offers a savings plan to which the United States Mint automatically contributes one percent of basic pay and matches employee contributions up to an

additional four percent of basic pay. Employees can contribute a specific dollar amount or a percentage of their basic pay as long as the annual dollar total does not exceed the Internal Revenue

Code limit of $16,500 for calendar year 2009. Employees participating in FERS are covered by

the Federal Insurance Contribution Act (FICA) for which the United States Mint contributes a

matching amount to the Social Security Administration.

Although the United States Mint contributes a portion for pension benefits and makes the necessary payroll deductions, it is not responsible for administering either CSRS or FERS. Administering and reporting on pension benefit programs is the responsibility of the Office of Personnel 

Management (OPM). OPM has provided the United States Mint with certain cost factors that 

estimate the cost of providing the pension benefit to current employees. The cost factors of 25.8 

percent of basic pay for CSRS-covered employees and 12.3 percent of basic pay for FERS-covered 

employees were in use for FY 2009. The CSRS factor increased .6 percent over FY 2008, and the 

FERS factor increased .3 percent over FY 2008. 

The amounts that the United States Mint contributed to the retirement plans and social security 

for the year ended September 30 are as follows: 

The United States Mint also recognizes its share of the future cost of pension payments and 

post-retirement health and life insurance benefits for employees while they are still working with 

an offset classified as imputed financing. OPM continues to report the overall liability of the 

Federal Government and make direct recipient payments. OPM has provided certain cost factors 

that estimate the true cost of providing the post-retirement benefit to current employees. The cost 

factors relating to health benefits are $5,756 and $5,220 per employee enrolled in the Federal 

Employees Health Benefits Program in FY 2009 and FY 2008, respectively. The cost factor relating to life insurance is two-one hundredths percent (.02%) of basic pay for employees enrolled in 

the Federal Employees Group Life Insurance Program for both FY 2009 and FY 2008. 

The amount of imputed cost related to retirement plans and other post-employment costs incurred by the United States Mint for the year ended September 30 is as follows (before the offset 

for imputing financing): 

2009 2008

Health Benefits $ 8,738 $ 7,953 

Life Insurance 24 23 

Pension Expense 3,072 2,655 

Total Imputed Retirement and Postemployment Costs $ 11,834 $ 10,631 

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In addition to the pension and retirement benefits described above, the United States Mint records 

imputed costs and financing for Treasury Judgment Fund payments made on behalf of the agency. 

For FY 2009, there were no payments by the Judgment Fund on behalf of the United States 

Mint which were classified as imputed costs. For FY 2008, entries for Judgment Fund payments 

totaled $2.8 million (Other Funds). 

12. LEASE COMMITMENTS 

THE UNITED STATES MINT AS LESSEE: The United States Mint leases office and warehouse 

space from commercial vendors, the General Services Administration (GSA), and the Bureau of 

Engraving and Printing. In addition, the agency leases copier and other office equipment from commercial vendors and vehicles from GSA. With the exception of the commercial leases on two office 

buildings in Washington, DC, all leases are one-year, or one-year with renewable option years. 

The two building leases in Washington, DC have terms of 20 and 10 years. Because all of the 

United States Mint’s leases are considered cancelable, there are no minimum lease payments due. 

THE UNITED STATES MINT AS LESSOR: The United States Mint sublets office space at cost 

to several other Federal entities in the two leased buildings in Washington, DC. These sub-leases 

vary from one year with option years to multiple year terms. As of September 30, 2009, the 

United States Mint sublet in excess of 209,000 square feet in the two leased buildings. As of 

September 30, 2009, tenants include the Internal Revenue Service, the Treasury Executive Institute, the Bureau of the Public Debt, U.S. Customs and Border Protection, and the U.S. Marshals 

Service. All of the subleases are operating leases and subject to annual availability of funding. 

The United States Mint has also entered into an agreement to sublet space on the first floor of the 

headquarters building to a commercial tenant. The commercial lease offers substantial discounts 

in the first two years of the lease term. Years three through nine are at the full rental amount. 

Future Projected Receipts Building Sub-lease 

Year 1 $ 37,800 

Year 2 302,400 

Year 3 378,000 

Year 4 378,000 

Year 5 378,000 

Years 6-10 1,512,000 

Total Future Operating Lease Receipts $ 2,986,200 

13. CONTINGENCIES 

The United States Mint is subject to legal proceedings and claims which arise in the ordinary 

course of its business. Judgments, if any, resulting from pending litigation against the United States 

Mint generally would be satisfied from the PEF. Likewise, under the Notification and Federal 

Employee Antidiscrimination and Retaliation Act of 2002 (No FEAR Act, P. L. 107-174), settlements and judgments related to acts of discrimination and retaliation for whistleblowing will be 

paid from the PEF. In the opinion of management, the ultimate resolution of these actions will 

not materially affect the United States Mint’s financial position or the results of its operations. 

Asserted and pending legal claims for which loss is reasonably possible were estimated to range 

from zero to $0.6 million as of September 30, 2009. In FY 2009, a pending legal claim for $7 

million was settled for $1.5 million. The $1.5 million was included as an accounts payable as of 

September 30, 2009. In management’s opinion, the ultimate resolution of these claims will not 

materially affect the United States Mint’s financial position or net cost. 

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14. EARMARKED FUNDS
 

Pursuant to 31 U.S.C. § 5136, “all receipts from United States Mint operations and programs, 

including the production and sale of numismatic items, the production and sale of circulating coinage 

at face value to the FRB, the protection of government assets, and gifts and bequests of property, 

real or personal shall be deposited into the PEF and shall be available to fund its operations 

without fiscal year limitations.” The PEF meets the requirements of an earmarked fund as defined 

in SFFAS 27, Identifying and Reporting Earmarked Funds. As non-entity and non-PEF assets, 

the Treasury-owned gold and silver bullion reserves are not included in the earmarked funds. 

15. INTRAGOVERNMENTAL COSTS AND EARNED REVENUE 

Intragovernmental costs and earned revenue reflect transactions in which both the buyer and 

seller are Federal entities. Revenue with the public reflects transactions for goods or services with 

a non-Federal entity. The purpose for this classification is to enable the Federal Government to 

prepare consolidated financial statements. The following table provides earned revenues, gross 

cost, and net program revenue. 

2009 2008 

Numismatic Production and Sales 

Cost:

 Intragovernmental:

 Selling, General and Administrative $ 18,599 $ 16,170

Imputed Costs 2,367 4,916

 Total Intragovernmental Costs 20,966 21,086

 Public:

 Cost of Goods Sold 1,974,075 1,301,887

 Selling, General and Administrative 59,864 75,651

 Total Public Cost 2,033,939 1,377,538 

Gross Cost 2,054,905 1,398,624 

Revenue:

 Intragovernmental:

 Rent Revenues 10,068 9,071

 Other Intragovernmental Revenues 146 734

 Total Intragovernmental Revenues 10,214 9,805

 Public 2,099,222 1,466,628 

Total Earned Revenue 2,109,436 1,476,433 

Net Program Revenue $ (54,531) $ (77,809) 

Numismatic Production and Sales of Circulating Coins 

Cost:

 Intragovernmental:

 Selling, General and Administrative $ 684 $ 578

 Total Intragovernmental Costs 684 578

 Public:

 Cost of Goods Sold 3,258 3,847

 Selling, General and Administrative 2,203 2,703

 Total Public Cost 5,461 6,550 

Gross Cost 6,145 7,128 

Revenue:

 Public 6,145 7,128 

Total Earned Revenue 6,145 7,128 

Net Program Revenue $ – $ – 

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2009 2008

Circulating Production and Sales 

Cost:

 Intragovernmental:

 Selling, General and Administrative $ 15,043 $ 13,510

 Imputed Costs 9,466 8,505

 Total Intragovernmental Costs 24,509 22,015

 Public:

 Cost of Goods Sold 225,556 472,080

 Selling, General and Administrative 83,078 83,450

 Other Costs and Expenses (Mutilated and Uncurrent) 16,700 10,763

 Total Public Cost 325,334 566,293 

Gross Cost 349,843 588,308 

Revenue:

 Public 349,843 588,308 

Total Earned Revenue 349,843 588,308 

Net Program Revenue $ – $ – 

Net Revenue Before Protection of Assets $ (54,531) $ (77,809) 

Protection of Assets

 Public:

 Protection Cost $ 41,102 $ 41,000

 Net Cost of Protection of Assets $ 41,102 $ 41,000

 Net Revenue from Operations $ (13,429) $ (36,809) 

16. EARNED REVENUE AND OTHER FINANCING SOURCE (SEIGNIORAGE) 

The Statement of Net Cost reflects the earned revenue and corresponding gross costs for Circulating 

Production and Sales and for Numismatic Production and Sales of Circulating Coins. Circulating 

Production and Sales represents coin sales to the FRB and Numismatic Production and Sales of 

Circulating Coins represents sales of circulating coins to the public (i.e., numismatic customers). 

SFFAS Number 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting, limits the amount of net program revenue from 

production of circulating coins to the cost of metal, manufacturing, and transportation. OMB 

Circular A-136 defines the treatment of other financing sources on the Statement of Changes 

in Net Position, particularly as it relates to the US Standard General Ledger treatment of the 

account utilized for seigniorage. Therefore, on the Statement of Net Cost, earned revenue is recognized only to the extent of the gross cost of production. The difference between those costs and 

the face value of the coin is an “Other Financing Source” referred to as seigniorage. Any revenue 

over face value for circulating coins sold as numismatic items is considered earned revenue and 

included in the category Numismatic Production and Sales on the Statement of Net Cost. 

The following chart reflects the two components of the receipts from the sale of circulating 

coin – the earned revenue from the Statement of Net Costs and Seigniorage from the Statement 

of Changes in Net position as of September 30: 

2009 2008 

Revenue-FRB $ 349,843 $ 588,308 

Seigniorage-FRB 427,768 706,212 

Total Circulating Coins $ 777,611 $ 1,294,520 

Revenue-with the public $ 6,145 $ 7,128 

Seigniorage-with the public 19,300 22,426 

Total Numismatic Sales of Circulating Coins $ 25,445 $ 29,554 

Total Seigniorage $ 447,068 $ 728,638 

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17. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

The United States Mint receives apportionments of its resources from OMB. An apportionment 

is a plan approved by OMB to spend funds as directed by law. All United States Mint obligations 

are classified as reimbursable, as they are financed by offsetting collections received in return for 

goods and services provided. OMB usually uses one of two categories to distribute budgetary 

resources. Category A apportionments distribute budgetary resources by fiscal quarters. Category 

B apportionments typically distribute budgetary resources by activities, projects, objects, or a 

combination of these categories. The United States Mint has only category B apportionments. 

18. EXPLANATION OF DIFFERENCES BETWEEN THE STATEMENT OF BUDGETARY 

RESOURCES AND THE BUDGET OF THE UNITED STATES GOVERNMENT 

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling 

Budgetary and Financial Accounting, requires an explanation of material differences between the 

Statement of Budgetary Resources (SBR) and the related actual balances published in the Budget 

of the United States Government (President’s Budget). The President’s Budget for fiscal year 2009 

is expected to be published in February 2010 and made available through OMB. Therefore, the 

analysis presented here is for the prior year (FY 2008) “actual” figures published in the President’s budget in February 2009. The following chart displays the comparison of the FY 2008 

SBR and the actual FY 2008 balances included in the FY 2010 President’s Budget. 

September 30, 2008

 Statement of Budgetary President’s 

Resources Budget 

United States Mint Public Enterprise Fund 

Total Budgetary Resources 2,141,460 2,141,460 

Status of Budgetary Resources:

 Obligations Incurred 2,090,602 2,090,602

 Unobligated Balances-available 50,858 50,858 

Total Status of Budgetary Resources 2,141,460 2,141,460 

Net Outlays 62,655 62,655 

19. LEGAL ARRANGEMENTS AFFECTING USE OF UNOBLIGATED BALANCES 

The United States Mint PEF establishes that all receipts from United States Mint operations and 

programs, including the production and sale of numismatic items, the production and sale of 

circulating coinage, the protection of government assets, and gifts and bequests of property, real 

or personal, shall be deposited into the United States Mint PEF and shall be available without 

fiscal year limitations. Any amount that is in excess of the amount required by the United States 

Mint to cover obligations of the PEF shall be transferred to the Treasury for deposit as miscellaneous receipts. At September 30, 2009 and 2008, the United States Mint transferred excess 

receipts to the Treasury General Fund of $475 million and $750 million, respectively. 

20. HEDGING PROGRAM 

At September 30, 2009 and 2008, hedging activity of $88.0 million and $32.0 million included 

in inventory represents the value of the silver sold to the trading partner and not yet sold by the 

United States Mint and, therefore, not repurchased from the trading partner. In FY 2009, the 

United States Mint recorded an unrealized gain from hedging activity of $43 thousand, compared with $932 thousand in FY 2008. 

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 2009 2008 

Resources Used to Finance Activities:

 Budgetary Resources Obligated

 Obligations Incurred $ 2,282,497 $ 2,090,602

 Less: Spending Authority from

 Offsetting Collections and Recoveries 2,512,322 2,103,372

 Net Obligations (229,825) (12,770)

 Other Resources

 Transfers to the Treasury General Fund On-Budget (35,000) (15,000)

 Transfers to the Treasury General Fund Off-Budget (440,000) (735,000)

 Imputed Financing from Costs Absorbed by Others 11,834 13,421

 Other Financing Sources (Seigniorage) 447,068 728,638

 Transfers in without reimbursement 830 –

 Net Other Resources Used to Finance Activities (15,268) (7,941) 

Total Resources Used to Finance Activities (245,093) (20,711) 

Resources Used to Finance Items Not Part 

of the Net Cost of Operations:

 Change in Budgetary Resources Obligated for Goods, 

 Services and Benefits Ordered but Not Yet Provided (61,195) 63,435

 Resources Fund Expenses Recognized in Prior Periods (2,287) –

 Resources that Finance the Acquisition

 of Assets or Liquidation of Liabilities 468,837 601,181

 Other (35,118) (77,815)

 Total Resources Used to Finance Items

 Not Part of the Net Cost of Operations 370,237 586,801 

Total Resources Used to Finance the Net Cost of Operations (615,330) (607,512) 

Components not Requiring or Generating

 Resources in the Current Period

 Depreciation and Amortization 34,226 34,292

 Revaluation of Assets 623 7,046

 Other 567,052 529,365

 Total Components of Net Revenue from Operations

 that will not Require or Generate Resources 601,901 570,703 

Total Components of Net Revenue from Operations

 that will not Require or Generate Resources

 in the Current Period 601,901 570,703 

Net Revenue from Operations $ (13,429) $ (36,809) 

21. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET
 

For The Years Ended September 30,

22. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

Budgetary resources obligated for undelivered orders as of September 30, 2009 and 2008 were 

$95,487 and $166,363, respectively. 

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Required Supplementary Information (Unaudited) 

For the Years Ended September 30, 2009 and 2008 

INTRODUCTION This section provides the Required Supplemental Information as prescribed 

by the Office of Management and Budget (OMB) Circular A-136, “Financial Reporting Requirements” And Statement of Federal Financial Accounting Standards (SFFAS) #29 Heritage Assets 

and Stewardship Land. 

HERITAGE ASSETS The United States Mint is steward of a large, unique, and diversified body 

of heritage assets that demonstrate the social, educational, and cultural heritage of the United 

States Mint. These items include a variety of rare and semi-precious coin collections and historical artifacts, and are held at various United States Mint locations. Some of these items are placed 

in locked vaults within the United States Mint where access is limited to only special authorized 

personnel. Other items are on full display to the public requiring little if any authorization to 

view. Included in the heritage assets is the multi-use heritage asset of the building housing the 

United States Mint at Denver. The United States Mint generally does not place a value on heritage assets, even though some of the coins and artifacts are priceless. However, the assets are 

accounted for and controlled for protection and conservation purposes. Heritage assets held by 

the United States Mint are generally in acceptable physical condition and there is no deferred 

maintenance on the United States Mint at Denver. 

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Independent Auditors’ Report on Internal Control Over Financial Reporting 

Inspector General 


United States Department of the Treasury
 

Director
 

United States Mint:
 

We have audited the balance sheets of the United States Mint as of September 30, 2009 and 2008 and the related 

statements of net cost, changes in net position, and combined statements of budgetary resources (hereinafter referred 

to as “financial statements”) for the years then ended, and have issued our report thereon dated November 24, 2009. 

We conducted our audits in accordance with auditing standards generally accepted in the United States of America; the 

standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General 

of the United States; and Office of Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal 

Financial Statements, as amended. Those standards and OMB Bulletin No. 07-04 require that we plan and perform 

the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. 

The management of the United States Mint is responsible for establishing and maintaining effective internal control. 

In planning and performing our fiscal year 2009 audit, we considered the United States Mint’s internal control over 

financial reporting by obtaining an understanding of the design effectiveness of the United States Mint’s internal control, determining whether internal controls had been placed in operation, assessing control risk, and performing tests 

of controls as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial 

statements. To achieve this purpose, we did not test all internal controls relevant to operating objectives as broadly 

defined by the Federal Managers’ Financial Integrity Act of 1982. The objective of our audit was not to express an 

opinion on the effectiveness of the United States Mint’s internal control over financial reporting. Accordingly, we do 

not express an opinion on the effectiveness of the United States Mint’s internal control over financial reporting. 

Our consideration of internal control over financial reporting was for the limited purpose described in the preceding 

paragraph and was not designed to identify all deficiencies in the internal control over financial reporting that might 

be deficiencies, significant deficiencies, or material weaknesses. 

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements 

on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is 

less severe than a material weakness, yet important enough to merit attention by those charged with governance. A 

material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable 

possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. 

In our fiscal year 2009 audit, we did not identify any deficiencies in internal control over financial reporting that we 

consider to be material weaknesses, as defined above. Exhibit I presents the status of prior year significant deficiencies. 

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We noted certain additional matters that we have reported to management of the United States Mint in a separate 

letter dated November 24, 2009. 

This report is intended solely for the information and use of the United States Mint’s management, the Department of 

the Treasury’s Office of Inspector General, OMB, the U.S. Government Accountability Office, and the U.S. Congress 

and is not intended to be and should not be used by anyone other than these specified parties. 

November 24, 2009 

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 Exhibit I 

THE UNITED STATES MINT 

Status of Prior Year Significant Deficiencies 

September 30, 2009 

Prior Year Condition Prior Year Recommendations Status as of 

 September 30, 2009 

Improvements Needed Over Inventory Tracking 

Inventory Recommendation #1: Enforce and Closed 

follow the inventory procedures related 

to the recording and tracking of inventory 

movements in the accounting system to 

ensure the subsidiary ledger agrees to the 

inventory physically located at the facilities. 

Recommendation #2: Enforce and follow the Closed 

inventory procedures, specifically related to 

properly receiving and classifying inventory 

between raw materials and work-in-process. 

Improvement Needed in Review of Open Obligations 

Open Obligations Recommendation #1: Update the standard 

operating procedures (SOP) to include a 

reconciliation of open obligations population 

to the general ledger.

Closed 

 Recommendation #2: Enforce the SOP Closed 

procedures for de-obligating closed 

obligations and ensure staff is provided 

with the updated SOP. 

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Independent Auditors’ Report on Compliance and Other Matters 

Inspector General
 

United States Department of the Treasury
 

Director
 

United States Mint:
 

We have audited the balance sheets of the United States Mint as of September 30, 2009 and 2008, and the related 

statements of net cost, changes in net position, and combined statements of budgetary resources (hereinafter referred 

to as “financial statements”) for the years then ended, and have issued our report thereon dated November 24, 2009. 

We conducted our audits in accordance with auditing standards generally accepted in the United States of America; the 

standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General 

of the United States; and Office of Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal 

Financial Statements, as amended. Those standards and OMB Bulletin No. 07-04 require that we plan and perform the 

audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 

The management of the United States Mint is responsible for complying with laws, regulations, and contracts 

applicable to the United States Mint. As part of obtaining reasonable assurance about whether the United States 

Mint’s financial statements are free of material misstatement, we performed tests of the United States Mint’s compliance with certain provisions of laws, regulations, and contracts, noncompliance with which could have a direct and 

material effect on the determination of the financial statement amounts, and certain provisions of other laws and 

regulations specified in OMB Bulletin No. 07-04, including the provisions referred to in Section 803(a) of the Federal 

Financial Management Improvement Act of 1996 (FFMIA). We limited our tests of compliance to the provisions 

described in the preceding sentence, and we did not test compliance with all laws, regulations, and contracts 

applicable to the United States Mint. However, providing an opinion on compliance with those provisions was not 

an objective of our audit, and accordingly, we do not express such an opinion. 

The results of our tests of compliance described in the preceding paragraph of this report, exclusive of those referred 

to in FFMIA, disclosed no instances of noncompliance or other matters that are required to be reported herein under 

Government Auditing Standards or OMB Bulletin No. 07-04. 

The results of our tests of FFMIA disclosed no instances in which the United States Mint’s financial management systems 

did not substantially comply with the (1) Federal financial management systems requirements, (2) applicable Federal 

accounting standards, and (3) the United States Government Standard General Ledger at the transaction level. 

We noted certain additional matters that we have reported to management of the United States Mint in a separate 

letter dated November 24, 2009. 

This report is intended solely for the information and use of the United States Mint’s management, the Department of 

the Treasury’s Office of Inspector General, OMB, the U.S. Government Accountability Office, and the U.S. Congress 

and is not intended to be and should not be used by anyone other than these specified parties. 

November 24, 2009 

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Appendix I: FY 2009 Coin and Medal Products
 

2009 ULTRA HIGH RELIEF DOUBLE EAGLE GOLD COIN 

Coin Release: January 22, 2009 

Design: The 2009 Ultra High Relief Double Eagle Gold Coin is an exquisite synthesis of art and pure 24-karat 

gold. This one-ounce coin is a triumph in coin design representing the culmination – more than a century in the 

making – of a partnership between a renowned artist, Augustus Saint-Gaudens, and a visionary leader, President 

Theodore Roosevelt. The coin is a digitally reproduced version of Saint-Gaudens’ original ultra high relief 1907 

Double Eagle gold piece, which was never released into circulation. The artist’s original design was updated to 

include four additional stars to represent the current 50 states, the inscription “In God We Trust,” which was 

not on the 1907 version, and 2009 in Roman numerals. 

2009 ABRAHAM LINCOLN COMMEMORATIVE 

SILVER DOLLAR 

Coin Release: February 12, 2009 

Mintage Limit: 500,000 (across all product options) 

Design: Abraham Lincoln, the 16th President of the 

United States, was one of America’s greatest leaders 

and demonstrated uncommon courage during a critical 

period in the Nation’s history. The year 2009 marks the 

bicentennial of Lincoln’s birth. Public Law 109-285, 

the “Abraham Lincoln Commemorative Coin Act,” 

requires the Secretary of the Treasury to mint and issue 

$1 silver coins in commemoration of this milestone 

anniversary. The obverse of the 2009 Abraham 

Lincoln Commemorative Silver Dollar features an 

image inspired by Daniel Chester French’s famous 

sculpture of the President and denotes his strength and 

resolve. The coin’s reverse features those immortal 

words Lincoln spoke at Gettysburg – the last 43 of 

his most famous speech – encircled in a laurel wreath. 

Under the wreath is a curling banner with Lincoln’s 

signature incused in the center. 

2009 LOUIS BRAILLE BICENTENNIAL 

SILVER DOLLAR 

Coin Release: March 26, 2009 

Mintage Limit: 400,000 (across all product options) 

Design: The 2009 Louis Braille Bicentennial Silver 

Dollar commemorates the 200th anniversary of 

the birth of Louis Braille, inventor of the Braille 

system, which is still used by the blind to read and 

write. The obverse features a portrait of Louis 

Braille. The reverse portrays a young child reading 

a book in Braille. The word “Braille” (abbreviated 

Brl in Braille code) is depicted in readable Braille in 

the upper field. 

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HAWAII 

Coin Release: November 3, 2008 

Mintage for Circulation: 517,600,000 

Design: The reverse of Hawaii’s quarter features 

Hawaiian monarch King Kamehameha I 

stretching his hand toward the eight major 

Hawaiian Islands. The coin bears an inscription of the state motto “UA MAU KE EA O 

KA ‘AINA I KA PONO,” (“The life of the 

land is perpetuated in righteousness”). 

GUAM 

Coin Release: May 26, 2009 

Mintage for Circulation: 87,600,000 

Design: The Guam quarter depicts the island’s 

outline; a flying proa, a seagoing craft built by 

the Chamorro people; and a latte stone, an architectural element used as the base of homes. 

It also features the inscription “Guahan I 

Tanó ManChamorro” (“Guam – Land of 

the Chamorro”). 

BIRTH AND EARLY CHILDHOOD 

IN KENTUCKY 

Coin Release: February 12, 2009 

Mintage for Circulation: 634,800,000 

Design: Lincoln’s birth and early childhood 

(1809-1816) is symbolized on the first 2009 

one-cent coin by a log cabin representing his 

humble beginnings in Kentucky. 

DISTRICT OF COLUMBIA 

Coin Release: January 26, 2009 

Mintage for Circulation: 172,400,000 

Design: The District of Columbia quarter 

features native son Duke Ellington, the internationally renowned composer and musician, 

seated at a grand piano with the inscription 

“Justice for All,” the District’s motto. 

AMERICAN SAMOA 

Coin Release: July 27, 2009 

Mintage for Circulation: 82,200,00 

Design: The American Samoa quarter depicts 

symbols of the ava ceremony, a significant 

traditional event in Samoan culture. The design 

features an ava bowl “tanoa,” used to make 

the special ceremonial drink for island chiefs, 

and a whisk and staff, symbolizing the rank of 

the Samoan orator. The coin also features a coconut tree on the shore in the background and 

an inscription of the territory’s motto “Samoa 

Muamua Le Atua” (“Samoa, God is First”). 

FORMATIVE YEARS IN INDIANA 

Coin Release: May 14, 2009 

Mintage for Circulation: 739,600,000 

Design: The second 2009 one-cent coin’s 

reverse design features a young Lincoln 

reading while taking a break from working 

as a rail splitter and commemorates his 

formative years in Indiana (1816-1830). 

PUERTO RICO 

Coin Release: March 30, 2009 

Mintage for Circulation: 139,200,000 

Design: The Puerto Rico quarter features 

a sentry box and the Spanish-built walls 

of San Juan and represents the territory’s 

rich history, geographical location and 

defensive role. The coin also features a 

hibiscus flower with the inscription “Isla 

del Encanto,” (“Isle of Enchantment”). 

U.S. VIRGIN ISLANDS 

Coin Release: September 28, 2009 

Mintage for Circulation: 82,000,000 

Design: The U.S. Virgin Islands quarter 

features an outline of the three major 

islands; a Tyre Palm Tree; the territory’s 

official bird, the yellow breast or banana 

quit; and the official flower, the yellow 

cedar or yellow elder. It also features an 

inscription of the territory’s official motto 

“United in Pride and Hope.” 

PROFESSIONAL LIFE IN ILLINOIS 

Coin Release: , August 13, 2009 

Mintage for Circulation: 652,000,000 

Design: In honor of President Lincoln’s 

professional life in Illinois (1830-1861), 

the third 2009 one-cent coin depicts him 

as a young professional standing in front 

of the state capitol building in Springfield. 

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MARTIN VAN BUREN 

Coin Release: November 13, 2008 

Mintage for Circulation: 102,480,000 

Description: Martin Van Buren was the first 

President to be born an American citizen. 

As president, Van Buren initiated an independent federal Treasury system to take the 

place of state banks handling 

federal monies and peacefully settled disputes with Great Britain that were threatening to take the country to war. 

MARTIN VAN BUREN’S LIBERTY 

Description: Martin Van Buren’s wife, 

Hannah, died in 1819, 18 years before he 

became president. The gold coin issued to 

accompany any president who served 

without a spouse features a design 

emblematic of Liberty on its obverse. 

Van Buren’s Liberty coin features the 

image appeared on the Liberty Seated 

Dime coin from 1837-1891. 

WILLIAM HENRY HARRISON 

Coin Release: February 19, 2009 

Mintage for Circulation: 98,420,000 

Description: The fifth President to hail 

from Virginia, William Henry Harrison 

was elected on his famous campaign slogan 

“Tippecanoe and Tyler Too.” In a bracing rainstorm, Harrison gave the longest 

inaugural speech in United States history. 

Shortly thereafter, he developed pneumonia. He died exactly one month after his 

inauguration, becoming the first President 

to die in office. 

ANNA HARRISON FIRST SPOUSE 

Description: Although born in relatively 

prosperity in New Jersey, Anna Harrison 

lived most of her life as a pioneer in the 

Ohio and Indiana frontier, following her 

husband, William Henry Harrison, during 

his long military and political career. She 

was the first presidential spouse with a 

documented formal education and had a 

lifelong love of learning. 

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JOHN TYLER 

Coin Release: May 21, 2009 

Mintage for Circulation: 87,080,000 

Description: John Tyler was the first Vice President 

to take office upon the death of the sitting President. 

At the time, the U.S. Constitution was not clear on 

succession, and his entire presidency was dominated 

by questions on the scope of his presidential powers, 

earning him the nickname “His Accidency.” As President, he championed the cause of Texas statehood. 

JULIA TYLER FIRST SPOUSE JULIA TYLER FIRST SPO 

Description: Julia Tyler married widower President 


John Tyler on June 26, 1844. 


Although she was First Lady for only eight months, 


she quickly made her mark. Julia Tyler was the first 


presidential spouse to request that James Sanderson’s 


song “Hail to the Chief” be played specifically to 


announce the President’s arrival on official occasions. 


The tradition continues to this day.
 

JAMES K. POLK MES K POLK

Coin Release: August 20, 2009 

Mintage for Circulation: 88,340,000 

Description: James K. Polk was a strong proponent 

of “Manifest Destiny,” the belief that the United 

States had the right to expand across the entire 

continent. He oversaw the growth of the country by 

more than one million square miles during his time 

in office, including the annexation of present day Oregon and Washington and the addition of California 

and New Mexico. 

LETITIA TYLER FIRST SPOUSE 

Description: Although Letitia Tyler was never able 

to assume the normal social duties of a First Lady 

because of her poor health, behind the scenes, she 

directed the entertaining and household management 

of the White House. She died in September 1842. 

2009 NATIVE AMERICAN 

Coin Release: January 2, 2009 

Design: The 2009 Native American $1 Coin commemorates the Native American contributions to 

agriculture and features a Native American woman 

planting seeds in a field of corn, beans and squash. 

SARAH POLK FIRST SPOUSE 

Description: Sarah Polk devoted her married life to 

husband James K. Polk’s political career, organizing 

his campaigns, writing speeches, handling his correspondence and developing a network of valuable 

political friendships. As First Lady, Sarah Polk opened 

the White House twice a week to all visitors for 

evening receptions and personally greeted those who 

attended. She also oversaw the refurbishment of the 

White House, including installation of gas lighting. 

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