United States Mint

2001 Annual Report
United States Mint

2001 Annual Report
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

United States Mint Team Vision

The United States Mint will:

Provide Value to the American people;

Ensure Integrity in our commitments and communications

Achieve world-class Performance.

Priorities

Business Results: We all will achieve excellent business results. We will continuously improve

our business, measuring ourselves against world-class organizations. Our investments in the

United States Mint will be prudent and thoughtful to provide the best return on investment to the

American people.

Stakeholders: We value and are inclusive of our stakeholders and hold ourselves accountable

for ensuring honest, open and timely communications. We will meet or exceed their expectations

in achieving world class performance.

P ro d u c t s : We are our products. We will meet the highest levels of quality, innovation, and eff i c i e n c y.

Involved People: We value all our people. We will provide them a safe workplace and the

tools and training they need. We will offer an innovative and flexible working environment

where everyone can make a contribution each day.

For further information, contact us at: 

United States Mint, 801 Ninth Street, N.W. Washington D.C. 20220 

(202) 354.7200

Visit us at www.usmint.gov

Founded in 1792, the

United States Mint

became a bureau 

of the Treasury

Department in 1873

and today is the

world’s largest coin

manufacturer, with

operations in

California, Kentucky,

Maryland, New York,

Pennsylvania and

Washington D.C.

2001
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Contents

Letter from the Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Business Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Circulating Business Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Protection Business Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Numismatic Business Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Corporate Administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Office of the Chief Information Officer . . . . . . . . . . . . . . . . . . . . . . . . . 10

Office of the Chief Financial Official. . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Management’s Discussion and Analysis of Program Performance . . . . . . . . . . . . . . . . . 12

FMFIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Reports of Independent Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Supplemental Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Glossary of Terms and Acronyms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Schedule of Custodial Gold and Silver Reserves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Auditors Report on Custodial Gold and Silver Reserves. . . . . . . . . . . . . . . . . . . . . . . . 60

United States Mint Products of 2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Coin Specifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Coins Minted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Coins Issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

The Mission of the

United States Mint

is to manufacture

the highest quality

circulating, numismatic, and bullion coins

at the lowest possible

cost and to deliver

them in a timely 

manner...to expand

our markets through

exceptional customer

service, product 

development, and

innovative marketing...

to sell numismatic and

bullion products at a

reasonable price and

profit...and to provide

security over assets

entrusted to us.
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Dear Customers and Colleagues:

As Fiscal Year 2001 was winding its way to a close, I had the honor of being sworn-in as 

the 37th Director of the United States Mint. It is a privilege to be a part of an agency with

such a rich history and important role in commerce. In FY 2001, we manufactured 23.6 billion

coins and contributed $1.38 billion to the Treasury General Fund. However, a changing

economy required the United States Mint to shift its priorities as it faces new challenges and

embraces new opportunities.

The demand for circulating coins is directly related to the economy. Since mid-2000, when

the U.S. economy began to slow, demand for coins decreased. Our numismatic business also

has been affected by the economic slow down. To meet the challenges that lie ahead, we

have set priorities for the organization to help us capitalize on opportunities, reduce expenses,

and measure our progress both internally and against world-class organizations in an effort to

continuously improve business operations.

We have defined a clear vision and outlined strong, focused priorities to become more 

efficient and add more value to the work we do while meeting or exceeding the expectations of

those who work with us. We continue to foster a culture based on strong values: accountability,

leadership, trust, respect, integrity, and teamwork. We are working to create clear, simple

processes, provide a safe working environment, and the training and resources people need to

get their jobs done.

To accomplish these goals, we have set a number of plans in motion. We have realigned 

and streamlined our business lines. The Circulating Strategic Business Unit (SBU) is now

Manufacturing. It is responsible for producing all circulating and numismatic coinage at each

of our facilities as well as orchestrating the wholesale distribution of those coins to the Federal

R e s e rve Banks and its branches; to the United States M i n t ’s distribution center; and to authorized

purchasers of gold, silver, and platinum bullion.

“We have defined a

clear vision and outlined strong,

focused priorities to

become more 

efficient and add

more value to the

work we do while

meeting or 

exceeding the

expectations of

those who work

with us.”

Henrietta HolsmanFore

Director

2001
The Numismatics SBU is now Sales and Marketing. This business line is responsible for all 

customer service, customer relationship management, and business development for the U n i t e d

States Mint. This includes brand and product management, the promotion of the 50 State

Quarters® and Golden Dollar programs, and all other numismatic products.

We are implementing Total Productive Manufacturing — a new process to enable continuous

and rapid improvement in manufacturing. It focuses on maintaining safe and clean working

environments, upgrading and standardizing equipment and processes, and encouraging

employee involvement through training and team-based problem solving. The United States

Mint also is working with the Federal Reserve Banks (FRBs) to better anticipate coin demand by

studying the distribution process and developing a single econometric model that both entities

can use to forecast consumers’ need for circulating coinage.

To measure our success, we are establishing new performance measures that are more relevant

to our operations. Among our goals: to further reduce Lost Time Accidents; to maximize value of

employees’ work to reduce the cost and time to manufacture and deliver circulating coinage to

the American people; and to increase customer satisfaction with our products and our services.

Lastly, we are assembling a blue ribbon panel to study the issue of circulating coin redesign.

We should assess our coin designs and what they represent about our country’s past, present,

and future. I look forward to working with this panel and receiving its recommendations.

Since 1792, the United States Mint and its employees have been dedicated to providing the

American people with the highest quality products and services. I know the United States Mint

is ready to meet these challenges and achieve the goals we have set for ourselves to become

the world-class operation we aspire to be.

Sincerely,

Henrietta Holsman Fore

Director

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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Circulating Business Unit

Even with coin demand slowing during much of the year, the United States Mint produced its

second-highest number of circulating coins in fiscal year 2001 -- 23.6 billion. However, as

the year came to a close, the Mint began to make adjustments to its production schedules.

The Circulating Business Unit also looked at ways to reduce coin inventories, eliminate excess

materials, and make processes more efficient through capital investment projects. For example,

18 new bulk bag filling stations were developed in Denver and Philadelphia. These bags 

contain the same volume of coins as were shipped on a pallet with several smaller bags. 

As of September 30, 2001, the United States Mint is shipping 100 percent of its one-cent coins

and nickels in bulk bags and nearly 35 percent of its dimes. This represents approximately 

55 percent of all circulating coin shipments. The goal is to have 100 percent of the dimes,

half-dollars, and dollars shipped in bulk bags by January 2002. All quarters will be shipped

in bulk bags by March 2002. Not only are these stations more efficient, they are safer for

employees because they do not require manual handling.

Employee health and safety, as well as environmental and energy projects, were at the forefront

during FY 2001. The Mint began the year with a Lost Time Accident (LTA) rate of 4.2. By fiscal

y e a r ’s end, the LTA rate dropped to 3.25 -- a 23 percent reduction (see chart below). Although

significant, the reduction is short of the goal of zero LTAs. The drop was the result of safety

awareness campaigns at each of the United States Mint’s facilities. This includes the implementation of the Safety Incident Reporting System (SIRS), a tracking program that reports and

records safety incidents daily. Another initiative undertaken is regular safety walks where a

plant manager reviews the entire facility and shares his/her findings with senior management. 

Business

Highlights

2001
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

In addition, several improvements were made to the physical plants including: 

• Upgrading of the fire detection system throughout the Denver Mint (a similar project is

underway in Philadelphia); 

• Upgrading the domestic water system in Denver;

• Initiating an emissions control and safety project to reduce carbon monoxide emissions

from annealing furnace gas generators.

Circulating also re-instituted and strengthened internal procedures with regard to quality 

assurance to ensure that customers received products of the highest quality. And, providing

world-class products to our customers is a top priority.

Protection Business Unit

For generations, Americans have used the phrase “as safe as the gold in Fort Knox” to indicate

something is indisputably secure and protected. Much has changed over the years, but those

words still ring true today -- due to the men and women of the United States Mint Police force.

The role of the United States Mint Police was never more clearly defined than on September 11,

2 0 0 1 . On that tragic day as the World Trade Center in New York and the Pentagon were

attacked and a high-jacked plane crashed into a Pennsylvania field, the Mint Police were true

to their core mission: to protect the United States Mint, its assets, its people, and its propert y.

Extraordinary security measures were enforced to secure Mint facilities and assets and assure

the safety of United States Mint employees.

The United States Mint Police were able to provide this level of protection because they are

provided with the most advanced training and equipment. In fiscal year 2001, all supervisors

completed training courses at the federal law enforcement training center at Glynco, Georgia.

All officers have completed refresher training courses over the past two years. In addition, they

have invested in new equipment, including upgrading their control centers, to maximize safety

and security.

Knowing the importance of sharing information to anticipate and counter terrorism and security

risks, the United States Mint Police are working with other law enforcement agencies, both

domestic and i n t e rnational, to share intelligence and foster cooperation. An example of this

cooperative eff o rt is the United States Mint Police involvement in security for the Presidential

Inauguration in January 2001. Seventy United States Mint Police officers from the six U n i t e d

States Mint facilities worked with other law enforcement officers and the Washington, D.C. force

to police the crowds, manage protesters, and conduct surveillance during Inaugural activities. 
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

As the nation becomes more reliant on e-business, the Mint Police are becoming ever vigilant

for cyber-crimes. An Economic Crimes Unit was established to monitor and investigate risks in

new markets: on-line auction houses, the Internet, and mail order business. By proactively

adjusting to the changing nature of threats by integrating intelligence, countermeasures, and

sophisticated defenses into its arsenal, the United States Mint Police continue to be recognized

as a world leader in high security protection.

Numismatics Business Unit

The 50 State Quarters®Program continued to be at the Numismatic forefront in FY 2001. In

calendar year 2001, designs featuring New York, North Carolina, Rhode Island, Ve rmont, and

Kentucky were placed into circulation. The United States M i n t ’s annual coin sets — Uncirculated

Sets, Proof Sets, Silver Proof Sets, 50 State Quart e r s®Proof Sets — are the backbone of our

n u m i s m a t i c line of products. These sets accounted for virtually all of the $166.6 million of

recurring program revenues. 

Commemorative Programs

Collectors were presented with two commemorative coin programs in 2001: The U.S. Capitol

Visitor Center (CVC) and the American Buffalo.

The CVC program commemorated the first convening of Congress in the Capitol building.

Surcharges from CVC coin sales will go to the Capitol Preservation Fund to support the 

construction and maintenance of the U.S. Capitol Visitor Center. As of September 30, 2001,

sales of gold, silver, and clad CVC coins generated total program revenues, since inception,

of approximately $18 million, including surcharges of nearly $8 million.

The American Buffalo Program commemorates the opening of the Smithsonian Institution’s

National Museum of the American Indian in Washington, D.C. The coin features a reproduction

of James Earle Fraser’s Buffalo nickel design. Surcharges from sales will go to the American

Indian Museum to support its endowment and educational outreach funds. Congress authorized

the production of 500,000 silver dollar coins. The program sold out within two weeks.

Customer Service

In Fiscal Year 2001, Numismatics and the Office of the Chief Information Officer joined forces

to launch the eBusiness Solutions Program, an initiative offering United States Mint customers

new services to make shopping for coins easier.
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

The new system includes:

• A reliable on-line catalog enabling customers to easily purchase United States Mint products.

• On-line customer self-service allowing customers to manage their accounts, review 

order histories, check order status and product availability, or make inquiries via e-mail.

• A distribution center that ships in-stock products within 24 hours and a centralized 

fulfillment center to process all returns.

• New order processing systems allowing customers to pay for products when they are

shipped, and sign-up in advance to buy coin sets and other products automatically

through the United States Mint’s on-line catalog.

While providing improved service to our customers, the new business practices and systems

also will increase the United States Mint’s operating efficiency. The centralized fulfillment center

will improve inventory management and control, reducing stock-outs while also reducing excess

inventory carrying costs. At the same time, the centralized fulfillment center will enable the

United States Mint to ship customer orders in a single shipment, reducing shipping costs.

A popular new 50 State Quarters

®

item was the Formation of the Union Set. The set was a partnership product with

the National Archives and Records Administration. More than 80 percent of the 50,000 limited-edition map and

coin sets were sold by the end of the fiscal year. In addition to featuring state quarters of the original 13 colonies,

the set includes a personal message to collectors from President George W. Bush.
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Corporate Administration

The Corporate offices direct policy, coordinate Mintwide eff o rts, and oversee finance, inform a t i o n

technology, logistics, procurement, and human resources. 

Office of the Chief Information Officer

In addition to its partnership with Numismatics on the eBusiness Solution Program, the Office of

the Chief Information Officer (OCIO) worked to streamline processes and to make the United

States Mint’s e - G o v e rnment eff o rts more efficient. Among its undertakings was an upgrade and

i m p l e m e n t a t i o n of the United States Mint’s Enterprise Resources Planning (ERP) applications. 

COINS II is designed to enhance and improve the United States Mint’s COnsolidated

INformation System (COINS) that was brought on-line in 1998 and integrated several software

applications supporting major finance, manufacturing, and marketing business processes and

related functionality to provide timely information to make cost-effective business decisions.

On the United States Mint’s web site — www.USMINT.gov — in addition to its catalog, the

United States Mint hosts an interactive educational site: H.I.P. (History in your Pocket) Pocket

Change.TM First launched in 1999, H.I.P. Pocket ChangeTM featured articles, virtual tours, 

and games. In FY 2001, the United States Mint transformed it into a dynamic teaching and

learning site. Visitor traffic comparisons reveal new and sustainable increases in site traffic since

H . I . P. Pocket ChangeTM was re-launched in February.

• HPC Visitors in July 2000 — 19,555

• HPC Visitors in July 2001 — 58,505

The redesigned site also sponsors a Teachers’ Network that offers downloadable lesson plans

for free, e-mail notifications of new lesson plans posted to the site that target specific grade 

levels and content areas, and quarterly newsletters with supplemental teaching materials.

Customers looking for information about the United States Mint can visit its “Electronic Reading

Room” that offers frequently requested documents, including reports to Congress about

Commemorative Coin Programs and the Public Enterprise Fund as well as the United States

Mint telephone directory; its Strategic Plan; Annual Reports; and press releases.

For all its efforts, the United States Mint’s web site was recognized by CIO Magazine with its

“Web Business 50/50” Award for being a site “that delivers exceptional business value.”
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Office of the Chief financial Officer

One of the major responsibilities of the Office of the Chief Financial Officer (OCFO) is 

managing and reporting financial data. Therefore, it is a considerable accomplishment to

have earned an eighth consecutive clean opinion from independent auditors.

A number of programs were implemented in FY 2001 that will increase efficiencies and make

record keeping easier. They included: 

Cycle Counting — This program will replace annual physical inventory in one-to-two years

and is expected to improve accounting accuracy.

Three Day Close — OCFO is effectively working toward closing its quarterly books within

three business days. In 1997, it took 70 calendar days to close the books at the end of each

fiscal quart e r. The implementation of COINS has made the task easier. In April 2001, closing

took 18 business days; by September closing took four business days. 

Five-Year Capital Plan — OCFO developed and presented a Five-Year Capital Investment Plan

in support of the Tr e a s u ry Capital Investment Review Board requirement. The plan communicates

to the Department and the Office of Management and Budget the investment portfolio the

United States Mint requires to manage its business. Approval of the plan provided the U n i t e d

States Mint with the means to secure the necessary funding for capital acquisitions. Review

board members noted that the United States Mint’s document was “a model for other bureaus

to follow in presenting the portfolio of capital projects necessary to achieve business goals.” 

Human Resource Flexibilities — The United States Mint is the first federal agency to obtain

O ffice of Personnel Management approval to implement the wage grade competency-based

qualification standard for coin manufacturers. The program is crucial to the success of production

process improvement projects.

Employee Development — In FY 2001, a new management development program was introduced.

The Council of Government Fellows Program was made available to employees at the GS-11 

to Senior Executive Service levels. Three United States Mint employees were accepted into this

y e ar -long program.

Gainsharing — In April 2001, the United States Mint implemented its Gainsharing program to

reward employees for their role in reducing controllable costs and improving customer satisfaction.

Its implementation is the culmination of a three-year effort between management and the union.

In addition to its other objectives, OCFO has continued to promote a family-friendly workplace

by providing a large menu of options such as a childcare subsidy; LifeCare.com resource 

assistance; alternative work schedules; the Employee Assistance Program; telecommuting

options; and Family and Medical Leave. 
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Management’s Discussion and Analysis of 

Program Performance

The Chief Financial Officer’s (CFO) Act of 1990 requires a variety of Government financial

management improvements. The Act requires federal agencies to issue annual accountability

r e p o rts that include annual financial statements reflecting the results of operations and 

management’s analysis and explanation of program performance. The Act also requires 

agencies to develop integrated accounting and financial systems that provide for the systematic

measurement of performance and timely performance reports.

An uncertain economy has a significant effect on all businesses. The United States Mint, too,

has been affected. The demand for circulating coins is directly related to the economy. A

strong economy generally means a strong demand from the commercial sector for coins, while

a weaker economy generally means fewer coins are needed. 

Coin order and production plans were not immediately adjusted for the economic slowdown,

and as a result, too many coins were produced. The lower demand from the weaker national

economy, combined with production levels that were higher than demand, led to a significant

buildup of coin inventory in the United States Mint and Federal Reserve vaults. The U n i t e d

States Mint experienced nearly the same situation in 1997, and the system eventually corrected

itself in following years.

Not surprisingly, the Numismatic business has also been affected by the economic slowdown.

While sales were still stronger than they were before the 50 State Quarters Program, there 

was a decline in the demand for Numismatic collectibles. In addition, the United States Mint

experienced strong demand for gold bullion coins just prior to the Y2K date change as people

looked for secure, more traditional investments. With the date changes safely passed, this

“extra” demand for gold bullion went away entirely.

American Buffalo

Commemorative Coins,

presented here in proof

and uncirculated versions,

were the fastest-selling

commemorative coins in

United States Mint history,

selling out in only 

two weeks.
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Results of Operations

Overall Operations

Performance Measures Highlights

Under the Government Performance Results Act (GPRA), agencies must develop performance

measures and plans to gauge the success of programs and missions against those measures.

The United States Mint began to implement these requirements into its financial planning and

reporting responsibilities in FY 1994. Performance measures identified in the United States

M i n t ’s Strategic Plan are reported upon as part of this annual report. Although core missions do

not change dramatically from year to year, the United States Mint continues to refine perf o rm a n c e

objectives and appropriate performance outcome measures that better gauge the results of its

business and activities. Within the context of this report, the United States Mint is presenting 

its most critical performance measures. The United States Mint’s performance measures are

linked to outcomes, capture significant variables, and address the multiple priorities involved 

in completing its mission. During FY 2002 the United States Mint will be implementing a new 

set of performance measures that are even more relevant to its manufacturing operations.

Mint-wide Revenues and Expenses

Overall revenues for the United States Mint decreased to $2.4 billion in FY 2001 from $3.7

billion in FY 2000, a decrease of 35.1 percent. The $1.3 billion decrease consists of a

decrease of $1.2 billion in Circulating coinage revenues and a decrease of $77.7 million in

Numismatic product revenues.

Overall expenses for the United States Mint decreased to $958.0 million in FY 2001 from

$1.1 billion in FY 2000. Expenses incurred by Circulating operations decreased to $564.0

million in FY 2001 from $697.2 million in FY 2000. Overall expenses incurred by

Numismatic decreased to $359.1 million in FY 2001 from $392.5 million in FY 2000.

Details of the changes in revenues and expenses follow in the individual sections below.
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Transfer of Profits to the Treasury General Fund

In FY 2001 contributions to the Treasury General Fund decreased by 39.4 percent from those

of the prior year to a total of $1.383 billion. This total was comprised of $1.283 billion 

o ff -budget (from Circulating operations), and $100 million on-budget (from Numismatic operations)

for FY 2001 as compared to $2.281 billion off-budget for FY 2000.

Transfers to the General Fund: FY 1996-2001

Circulating Strategic Business Unit

The demand for Circulating coinage is largely dependent on the condition of the U.S. economy.

During economic downturns, as in FY 2001, demand for Circulating coinage invariably decreases.

Accordingly, total coin production fell to 23.6 billion in FY 2001 from an all time high of 27.1

billion in FY 2000.

The above data reflects fiscal year production and should not be interpreted as mintage levels of coins for a calendar year.

Pennies vs. Non- Pennies Circulating Production: FY 1991-2001

Fiscal Year

Year

Pennies

Non-Pennies
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Financial Performance

Revenues

Circulating revenues decreased to $2.0 billion in FY 2001 from $3.2 billion in FY 2000.

This represents a 37.3 percent decrease in revenues. The U.S. economy has a significant

effect on Circulating coinage. The slowing economy and a fall-off in the demand for dollar

coins caused Circulating revenue to decline in FY 2001. 

Circulating SBU Revenues for FY 2000 and FY 2001 (In Millions)

Denomination FY 2000 Revenues FY 2001 Revenues Difference Percentage Change

Penny, Nickel, Dime $646.1 $523.5 $(122.6) (19.0)

Quarter $1,541.9 $1,382.2 $(159.7) (10.4)

Half $13.5 $13.5 $0.0 (0.0)

Dollar $1,019.4 $102.2 $(917.2) (90.0)

Circulating Coinage Subtotal $3,220.9 $2,021.4 $(1,199.5) (37.2)

Other $0.6 $0.0 $(0.6) N/A

Total $3,221.5 $2,021.4 $(1,200.1) (37.3)

Circulating Coinage Shipments, FY 1991-FY 2001 (in millions of pieces)

1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1

P e n n y 9 , 9 1 4 9 , 0 07 1 1 , 2 82 1 3 , 4 5 9 1 3 , 4 1 9 1 3 , 6 6 9 8, 6 4 2 1 0 , 7 4 4 1 1 , 6 0 1 1 3 , 6 6 8 1 2 , 7 7 3

N i c k e l 1 , 0 9 6 9 0 3 6 5 5 1 , 4 5 1 1 , 6 2 3 1 , 7 4 0 9 4 4 1 , 5 4 4 2 , 0 3 7 2 , 4 2 1 1 , 6 6 8

D i m e 1 , 6 3 3 1 , 2 9 4 1 , 1 7 7 2 , 5 2 1 2 , 3 6 5 2 , 8 0 1 1 , 9 3 0 2 , 6 5 8 3 , 1 9 7 3 , 8 8 4 3 , 1 2 3

Q u a rt e r 1 , 3 2 2 8 0 6 1 , 0 0 9 1 , 7 5 2 2 , 0 7 0 1 , 9 5 5 1 , 2 0 0 1 , 6 7 7 3 , 4 7 4 6 , 1 6 8 5 , 5 3 1

H a l f - D o l l a r 4 0 3 5 3 0 3 8 4 2 7 0 2 9 2 2 3 2 2 7 2 7

D o l l a r - - - - - - - - 3 3 1 , 0 1 9 1 0 2

To t a l 1 4 , 0 0 5 1 2 , 0 4 5 1 4 , 1 5 3 1 9 , 2 2 1 1 9 , 5 1 9 2 0 , 2 3 5 1 2 , 7 4 5 1 6 , 6 4 5 2 0 , 3 7 4 2 7 , 1 8 7 2 3 , 2 2 4

The above data reflects fiscal year shipments and should not be interpreted as mintage levels of coins for a calendar year.

Prior to the establishment of the Public Enterprise Fund (PEF), revenue from circulating coinage was recognized when the coinage

was turned over to the cashier. Since the establishment of the PEF, revenue from circulating coinage is recognized when coins

are shipped.
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Expenses

Circulating coinage expenses decreased to $564.0 million in FY 2001 from $697.2 million

in FY 2000. Expenses decreased due to the decreased production levels in FY 2001. The

decreased production of the Golden Dollar contributed heavily to the decrease. 

Circulating SBU Expenses for FY 2000 and FY 2001 (In Millions)

Denomination FY 2000 Expenses FY 2001 Expenses Difference Percentage Change

Penny, Nickel, Dime $263.2 $230.3 $(32.9) (12.5)

Quarter $275.4 $301.8 $26.4 9.6

Half $2.7 $2.4 $(0.3) (11.1)

Dollar $147.6 $20.5 $(127.1) (86.1)

Circulating Coinage Subtotal $688.9 $555.0 $(133.9) (19.4)

Mutilated and Other $8.3 $9.0 $0.7 8.4 

Total $697.2 $564.0 $(133.2) (19.1)

Profits

Circulating profits decreased to $1.5 billion in FY 2001 from $2.5 billion in FY 2000. Seventy

percent of the $1.0 billion decrease in profits can be attributed to lower shipments of Golden

Dollars. Shipments of dollars were high in FY 2000 due to the initial introduction of the Golden

Dollar. The remaining 30 percent decrease can be attributed to changes in economic factors. 

Circulating SBU Profit and Loss for FY 2000 and FY 2001 (In Millions)

Denomination FY 2000 Profit/(Loss) FY 2001 Profit/(Loss) Difference Percentage Change

Penny, Nickel, Dime $382.9 $293.2 $(89.7) (23.4)

Quarter $1,266.5 $1,080.4 $(186.1) (14.7)

Half $10.8 $11.1 $0.3 2.8 

Dollar $871.8 $81.7 $(790.1) (90.6)

Circulating Coinage Subtotal $2,532.0 $1,466.4 $(1,065.6) (42.1)

Mutilated and Other $(7.7) $(9.0) $(1.3) 16.9

Total $2,524.3 $1,457.4 $(1,066.9) (42.3)
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Performance Measures Highlights

Goal: 

By 2005, reduce the controllable cost of Circulating coinage by 15 percent (excluding metal costs).

Performance Measures: 

The performance measure used to gauge progress towards this goal is conversion cost per

1000 coin equivalents.

The goals for our performance measures are set intentionally high. In our private sector- like

Mint culture, these goals are known as “stretch goals” which are designed to raise the 

performance standards of the United States Mint to the highest levels possible. 

Conversion cost per 1,000 coin equivalents

Fiscal Year Cost/Thousand Units

FY 2001 Plan $9.22

FY 2001 Year End Result $8.33

FY 2000 Result N/A

This measure was introduced in FY 2001 and replaces the following measures from the prior year:

Average cost per 1,000 units of circulating pennies (including metal)

Average cost per 1,000 units of circulating clad and nickel coinage (including metal)

Numismatic Strategic Business Unit

Revenues

Numismatic revenues are generated through sales of investment (bullion) and collectible 

(non-bullion) products to the public. Bullion products refer to gold, silver, and platinum A m e r i c a n

Eagle Uncirculated coins that are sold to Authorized Purchasers who in turn offer them for 

sale to the general public. Non-Bullion products include American Eagle Proof Programs,

Commemorative Programs, and Recurring Programs that the United States Mint sells directly to

the public.

Numismatic revenues, including surcharges, were $410.7 million in FY 2001 compared to

$488.4 million in FY 2000. As explained in greater detail below, the major contributors to

the overall revenue shortfall from FY 2000’s year-end result are lesser demands for the

American Eagle Uncirculated (bullion) and Recurring (non-bullion) programs.
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Revenues Related to Numismatic Performance for FY 2000 and FY 2001 (In Millions)

Numismatic Programs FY 2000 Revenues FY 2001 Revenues Difference Percentage Change

American Eagle Uncirculated (Bullion) $182.5 $148.1 $(34.4) (18.8)

American Eagle Proof $66.4 $63.5 $(2.9) (4.4)

Commemoratives before Surcharges $34.1 $32.5 $(1.6) (4.7)

Recurring $205.4 $166.6 $(38.8) (18.9)

Subtotal $488.4 $410.7 $(77.7) (15.9)

Less Surcharges $6.9 $8.7 $(1.8) 26.1

Net Revenue $481.5 $402.0 $(79.5) (16.5)

Bullion Products

Bullion product revenue decreased to $148.1 million in FY 2001 from $182.5 million in FY

2000. This is largely due to a decrease in demand for Gold Eagle Uncirculated coins after

the Y2K concerns did not materialize.

Non-Bullion Products

American Eagle Proof Program

American Eagle Proof [the collector version of the Bullion program coins] revenues decreased

to $63.5 million in FY 2001 from $66.4 million in FY 2000, a decrease of 4.4 percent.

Commemorative Coins

Commemorative coin revenues decreased to $32.5 million in FY 2001 from $34.1 million in

FY 2000, a decrease of 4.7 percent. 

Recurring Programs

Recurring program [primarily circulating derived products that are produced annually by

Numismatics for collectors/numismatists] revenues decreased to $166.6 million in FY 2001

from $205.4 million in FY 2000, a decrease of 18.9 percent. Part of the revenues for

Recurring programs in FY 2000 reflect a backlog of orders from FY 1999 that were shipped

in FY 2000. Taking this in conjunction with a decrease in sales due to a slowing economy

accounts for the decrease in revenues in FY 2001. However, the FY 2001 revenues are more

indicative of historical revenue streams than was FY 2000.
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Expenses

Numismatic expenses decreased to $359.1 million in FY 2001 from $392.5 million in FY

2000. Expenses for the Bullion program decreased to $148.8 million in FY 2001 from

$179.5 million in FY 2000. Expenses for the Non-Bullion programs decreased slightly to

$210.3 million in FY 2001 from $213.0 million in FY 2000. The decrease in expenses was

attributable primarily to the decrease in Bullion product expenses. Most of the expenses incurred

by Bullion programs consisted of metal e x p e n s e s. The decreased sales caused the United

States Mint to spend less making the products as a result of decreased metal purchases. The

decrease in sales revenues is largely due to a decrease in demand for Bullion coins after the

Y2K concerns did not materialize. The Recurring programs also contributed to the decrease in

expenses. The decrease in recurring sales was due to a slowing economy. This accounts for

the decrease in Recurring program expenses in FY 2001.

Expenses Related to Numismatic Performance for FY 2000 and FY 2001 (In Millions)

Numismatic Programs FY 2000 Expenses FY 2001Expenses Difference Percentage Change

American Eagle Uncirculated (Bullion) $179.5 $148.8 $(30.7) (17.1)

American Eagle Proof $42.3 $52.9 $10.6 25.1

Commemoratives $19.0 $22.0 $3.0 15.8

Recurring $151.7 $135.4 $(16.3) (10.7)

Total $392.5 $359.1 $(33.4) (8.5)

Profits

Overall profits for the numismatic operations decreased to $42.9 million in FY 2001 from

$89.0 million in FY 2000. The profits from the Non-Bullion programs (including the

Commemorative Coin Program) were $43.6 million in FY 2001 compared to $86.0 million in

FY 2000. The profits/(losses) from the Bullion program decreased to $(0.7) million in FY

2001 from $3.0 million in FY 2000 (see Performance Measure: Numismatic contribution for

bullion for detail).

Numismatic Programs Profit and Loss for FY 2000 and FY 2001 (In Millions)

Numismatic Programs FY 2000 Profit/(Loss) FY 2001 Profit/(Loss) Difference Percentage Change

American Eagle Uncirculated (Bullion) $3.0 $(0.7) $(3.7) (123.3)

American Eagle Proof $24.1 $10.6 $(13.5) (56.0)

Commemoratives $8.2 $1.8 $(6.4) (78.0)

Recurring $53.7 $31.2 $(22.5) (41.9)

Total $89.0 $42.9 $(46.1) (51.8)
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Performance Measures Highlights

Goal: 

Match the best in business in the delivery of product and customer services.

Performance Measures: 

1. Percentage of commemorative coins shipped within standard (four weeks)

Fiscal Year Percentage

FY 2001 Final Plan 98

FY 2001 Year End Result 89

FY 2000 Result 87

The Mint went to a new system in FY 2001 for shipment of Numismatic products. This result

includes orders placed and filled under the old system as well as orders placed and filled with

the new eSP system. Orders received in the old system and shipped via eSP are not included

due to difficulty in accurately measuring the results for that time period (approximately the month of

August, 2001). The Capitol Visitor Center program experienced start-up production problems

resulting in a delay in shipment. Also, the Buffalo Commemorative coin was fully subscribed

(500,000 coins) within two weeks from drop date. The overwhelming demand for the program

within such a short period created a situation where some products were on back-order. The

eSP system will address these issues. Order fulfillment time will be reduced via the centralized

pick and pack operation. Also, on-line subscription programs will provide the United States

Mint with more information and will lead to better inventory planning and management.

2. Percentage of recurring coin products shipped within standard (three weeks)

Fiscal Year Percentage

FY 2001 Final Plan 98

FY 2001 Year End Result 85 

FY 2000 Result 90

In addition to the Mint implementing a new system in FY 2001 for shipment of Numismatic

products, legislation was necessary in order to include the Golden Dollar in the year 2000 

silver proof set. This requirement resulted in delays early in FY 2001, and caused silver proof

set fulfillment within standard to be only 52 percent. The eSP system will improve performance

to this target.
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Goal:

To increase the contribution margin of the numismatic/bullion operation by aggressively pursuing

new customers, new market channels and new product lines.

Performance Measures:

1. Numismatic contribution margin for bullion

Fiscal Year Percentage

FY 2001 Final Plan 2.0

FY 2001 Year End Result (0.2)

FY 2000 Result 1.9

This goal is measured by taking the bullion profit (before corporate expense allocations) as a

percent of the bullion revenues. The United States Mint did not meet the Numismatic profit

margin for bullion in FY 2001 for a number of reasons. There was decreased demand for the

most profitable of the Uncirculated Programs (Gold Eagle Uncirculated). In FY 2001, bullion

revenues decreased from the prior year. As with most commodity products, the revenues for

bullion products is determined by the daily market price for gold, platinum or silver, with minimal

coverage above the cost of the commodity to cover other operating costs. The inability to rapidly

react to the downturn in market demand provided less of a margin, or total revenues less cost

of metal, to cover operating and other costs. These costs were affected by one-time write-offs,

which were incurred to revalue inventory due to lowering manufacturing standards as well as

to charge the program for costs associated with the refining and fabrication of coins with prior

year dates for which there is no market demand. These charges to the program for the inventory

revalue and coin refining negatively impacted the program by approximately $2.9 million or

1.9 percent of revenues.

2. Numismatic contribution for non-bullion

Fiscal Year Percentage

FY 2001 Final Plan 15.0

FY 2001 Year End Result 23.8

FY 2000 Result 32.3

This goal is measured by taking the non-bullion profit (before corporate expense allocations) as a

percent of the non-bullion revenues. The United States Mint successfully exceeded the goal of

15 percent.
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Protection Strategic Business Unit

The United States Mint’s police force conducts business each year without publicity and headlines

in a quiet, extremely efficient and professional manner. The United States Mint secures

approximately $72 billion (Market value as of September 30, 2001) of the Nation’s gold and

silver reserves. In FY 2001, the United States Mint shipped 23.2 billion pieces of circulating

coinage. United States Mint Police protect these assets while safeguarding approximately

2,800 United States Mint employees against potential threats at six facilities.

Goal: 

To provide a level of security commensurate with changing threats.

Performance Measure: 

Dollar losses per billion dollars of Reserve Value

Fiscal Year Actual Losses

FY 2001 Final Plan $0.0

FY 2001 Year End Result $0.0

FY 2000 Result $0.0

The United States Mint had no dollar losses per billion dollars of reserve value. The Protection

Business Unit secures the Nation’s precious metal reserves as well as the facilities and employees

of the United States Mint. This stellar performance continues to highlight the efficiency and

effectiveness of the Protection Business Unit.

Other Issues

Prompt Payment Act (PPA) 

The Prompt Payment Act (PPA), enacted on May 21, 1982, and amended on October 17, 1988,

requires Federal agencies to pay commercial obligations within discrete time periods and to

pay interest penalties when those time constraints are not met. During FY 2001, the United

States Mint continued its progress in strengthening its invoice payment process. The overall

percentage of late payments for FY 2001 was 2.5 percent.

Electronic Funds Transfer (EFT)

The Debt Collection Act of 1996 was signed by the President of the United States on April 26,

1996. This legislation requires that all federal payments be made through the use of electronic

funds transfer (EFT), with the exception of tax refunds. The United States Mint recognizes the
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

efficiencies and cost savings to the government of using EFT for its financial transactions.

Therefore, the United States Mint encourages its employees and business partners to conduct

business electronically. During FY 2001, 100 percent of the United States Mint’s travel 

reimbursements to employees, 99.9 percent of salary payments to employees, and 95.1 

percent of vendors were paid by EFT.

The classic American Eagle Silver Proof Coin, issued annually, is

presented in a white satin and blue velvet presentation case.

American Eagle Gold Proof Coins, issued annually, are 

packaged in rich blue velvet and white satin presentation cases. 

Pictured here are the four-coin set and the one-ounce coin.

Dramatic black velvet and white satin presentation cases highlight the 

United States Mint’s premier annual product, American Eagle Platinum 

Proof Coins (pictured here) in the four-coin set and one-ounce coin.
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FMFIA / FFMIA Compliance Annual Assurance Statement for

Fiscal Year 2001

The United States Mint has evaluated its systems of management control for the fiscal year

ending September 30, 2001, in accordance with procedures and standards prescribed

by the Office of Management and Budget and the General Accounting Office. 

The United States Mint provides reasonable assurance that the objectives of Section 2 of

the FMFIA were achieved during FY 2001. 

For fiscal year (FY) 2001, the United States Mint also provides reasonable assurance that

the objectives of Section 4 of the FMFIA were met with the exception of two material

weakness related to controls over automated systems. The United States Mint’s entity-wide

security program did not meet the requirements of OMB Circular A-130. In addition, 

general controls at the application level lacked adequate systems policy implementation

and development, logical access controls, software development and change control 

procedures, segregation of duties, service continuity and controls establishing access levels

and preventing concentrated system privileges. 

The United States Mint is unable to give assurance that all of the provisions of the Federal

Financial Management Improvement Act of 1996 were achieved in FY 2001. 

With regard to other issues, prior audit reports have criticized the United States M i n t ’s continuity

of operations planning process. The United States Mint is in the process of developing

adequate continuity of operations plans. The United States Mint’s performance information

is reliable as most of it comes directly from the enterprise resource planning system.

Henrietta Holsman Fore

Director

United States Mint

2001
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Department of the Treasury

United States Mint

Statements of Financial Position (in thousands)

Years Ended September 30,

2001 2000

Assets

Current assets

Fund balances with Treasury and cash (Note 3) $278,180 $339,408

Accounts receivable, net (Note 4) $7,508 $2,531

Operating inventories, net (Note 5) $465,804 $445,541

Advances and prepayments (Note 6) $6,712 $2,346

Total current assets $758,204 $789,826

Non-current assets

Property, plant and equipment, net (Note 7) $326,548 $224,635

Other assets (Note 8) $5,146 $28,205

Total non-current assets $331,694 $252,840

Total assets $1,089,898 $1,042,666

Liabilities and Net Position

Liabilities

Current liabilities

Accounts payable - Federal (Note 9) $5,216 $9,662

Accounts payable - Non-Federal $30,758 $49,479

Surcharges payable $10,816 $6,388

Unearned revenue $2,730 $14,415

Accrued salaries and benefits/unemployment insurance $9,751 $10,460

Total current liabilities $59,271 $90,404

Non-current liabilities

Accounts payable - Federal (Note 9) $154,585 $165,083

Accrued workers' compensation benefits $34,635 $29,401

Accrued annual leave $9,106 $8,333

Other liabilities $0 $54

Total non-current liabilities $198,326 $202,871

Total liabilities $257,597 $293,275

Net Position

Fund balance $832,301 $749,391

Total liabilities and net position $1,089,898 $1,042,666

Custodial Gold and Silver Reserves

United States' gold and silver reserves (Note 10) $10,364,687 $10,364,687

Custodial liability to Treasury (Note 10) $10,364,687 $10,364,687

Net custodial position $0 $0

The accompanying notes are an integral part of these statements.
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Department of the Treasury

United States Mint

Statements of Operation and Changes in Net Position (in Thousands)

Years Ended September 30,

2001 2000

Revenues

Circulating coinage revenue $2,021,344 $3,221,488

Sales to the public (numismatic sales) 410,679 488,433

Surcharges collected for beneficiary organizations (Note 11) (8,653) (6,907)

Other revenue (Note 12) 46 195

Total revenues $2,423,416 $3,703,209

Costs and expenses

Cost of goods sold (Note 13) $710,421 $843,039

Selling, general and administrative expenses (Note 14) 203,751 238,139

Other costs and expenses (Note 15) 9,009 8,508

Total costs and expenses $923,181 $1,089,686

Financing sources and costs not assigned to programs

Imputed financing (Note 16) $9,139 $8,093

Less: Additional employee benefit expenses (Note 16) (9,139) (8,093)

Total financing sources and costs not assigned to programs $0 $0

Excess of revenues over total costs and expenses

and financing sources, before protection costs $1,500,235 $2,613,523

Protection costs ($34,325) ($29,952)

Excess of revenues over total costs and expenses and financing sourc e s $ 1 , 4 6 5 , 9 1 0 $ 2 , 5 8 3 , 5 7 1

Net position, beginning of year $749,391 $446,820

Transfers to Treasury's General Fund ($1,383,000) ($2,281,000)

Net position, end of year $832,301 $749,391

The accompanying notes are an integral part of these statements.
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D e p a rtment of the Tr e a s u ry

United States Mint

Statements of Cash Flows (in Thousands)

Years Ended September 30,

2001 2000

Cash flows from operating activities:

Excess of revenues over total costs and expenses and financing sourc e s $ 1 , 4 6 5 , 9 1 0 $ 2 , 5 8 3 , 5 7 1

Adjustments affecting operating cash flows:

Decrease (Increase) in accounts receivable ($4,977) $1,168

Decrease (Increase) in other assets (1,570) (189,557)

Increase (Decrease) in accounts payable (33,665) 80,672

Increase (Decrease) in other liabilities (2,013) 17,080

Depreciation and amortization 13,759 15,295

Total adjustments ($28,466) ($75,342)

Net cash provided by operating activities $1,437,444 $2,508,229

Cash flows from investing activities:

Purchase of property, plant and equipment ($115,672) ($70,953)

Net cash used by investing activities ($115,672) ($70,953)

Cash flows from financing activities:

Funds transferred to Treasury ($1,383,000) ($2,281,000)

Net cash used by financing activities ($1,383,000) ($2,281,000)

Net cash provided (used) by operating, investing and financing activities ( $ 6 1 , 2 2 8 ) $ 1 5 6 , 2 7 6

Fund balances with Treasury and cash at beginning of year $339,408 $183,132

Fund balances with Treasury and cash at end of year $278,180 $339,408

The accompanying notes are an integral part of these statements.
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D e p a rtment of the Tr e a s u ry

United States Mint

Notes to the Financial Statements for 

Fiscal Year ended September 30, 2001

(Dollars are in thousands except Fine Troy Ounce information)

Note 1 Reporting Entity

Established in 1792, the United States Mint is an integral part of the Department of the

Treasury. The mission of the United States Mint is to manufacture coins for general circulation,

to manufacture and sell numismatic products for the benefit of the federal government and various

beneficiary organizations, and to protect certain federal assets in its custody. Numismatic

products include medals, proof coins, uncirculated coins, platinum, gold, and silver bullion

coins, and commemorative coins. Custodial assets consist primarily of the United States’ gold

and silver metal reserves. These custodial reserves are often referred to as “deep storage” and

are reported in the custodial segment of the Statement of Financial Position.

Manufacture of numismatic products is financed principally through sales to the public.

Manufacture of circulating coinage is financed through sales of coins at face value to the

Federal Reserve System. Activities related to protection of federal custodial assets are funded

by revenues of the United States Mint’s Public Enterprise Fund (PEF).

Pursuant to Public Law 104-52, the PEF was established to account for all revenues and

expenses related to production and sale of numismatic products and circulating coinage and

protection activities. Expenses accounted for in this fund include the cost of metals used in 

circulating coin production, the cost of metals (gold, silver, platinum, cupro-nickel, and zinc)

used in numismatic coin production, fabrication and transportation costs for metals used in 

circulating coinage and numismatic products, and costs of transporting circulating coinage

between United States Mint production facilities and Federal Reserve banks. Other

costs/expenses accounted for in this fund include costs related to research and development

and purchases of equipment, as well as capital improvements. P.L. 104-52 states that 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.

Treasury’s Bullion Fund (Bullion Fund) is used to account for United States gold and silver

reserves. A separate Schedule of Custodial Gold and Silver Reserves has been prepared for

Treasury gold and silver reserves for which the United States Mint acts as custodian.

2001
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Note 2 Summary of Significant Accounting Policies

Basis of Presentation

The United States Mint has historically prepared its financial statements in accordance with 

generally accepted accounting principles, based on accounting standards issued by the

Financial Accounting Standards Board (FASB), the private-sector standards-setting body. In

October 1999, the Federal Accounting Standards Advisory Board (FASAB) was designated by

the American Institute of Certified Public Accountants (AICPA) as the standards-setting body for

financial statements of federal government entities, with respect to the establishment of generally

accepted accounting principles. FASAB has indicated, however, that financial statements 

prepared based upon accounting standards published by the FASB may also be regarded as

in accordance with generally accepted accounting principles for those federal entities, such 

as the United States Mint, that have issued financial statements based upon FASB accounting

standards in the past. Accordingly, consistent with historical reporting, the United States Mint’s

financial statements are presented in accordance with accounting standards promulgated by

the FASB.

Basis of Accounting

The accompanying financial statements have been prepared on the accrual basis of accounting.

Under the accrual method, revenues are recognized when earned and expenses are recognized

when a liability is incurred, without regard to receipt or payment of cash. This basis conforms

with generally accepted accounting principles. All intra-Mint transactions and balances have

been eliminated.

Revenues

Circulating Coinage: P.L. 104-52, establishing the PEF, provides for the sale of circulating

coinage at face value to the Federal Reserve System. Revenue from circulating coinage is 

recognized when the product is shipped to the Federal Reserve Banks.

Numismatic Sales: Revenue is recognized when products are shipped to customers. Prices for

numismatic products are based on the product cost plus a reasonable profit. Bullion products

are priced based on the market price of the precious metals plus a small market premium.

Unearned Revenues: These are amounts received from customers for which the numismatic

products have not been shipped.

Other Revenues: These are amounts received principally from reimbursable agreements with

other agencies.
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Fund Balances with Treasury

Except for an imprest fund of $4,000, all cash is maintained at the Treasury.

Operating Inventories

Inventories of circulating coinage and numismatic products are valued at the lower of cost or

market value, with cost being determined by the average cost method. Absent historical cost

records to determine acquisition cost of the gold and silver over the decades, the statutory rates

of $42.2222 per fine troy ounce (FTO) of gold and $1.292929292 per FTO of silver are

used. All work-in-process gold and silver inventories have been included in the United States

Mint's financial statements.

At the inception of the Platinum Program, the Defense Logistics Agency (DLA) loaned the United

States Mint 143,711.1 ounces of platinum. The United States Mint returned or purchased all

but 68,711.1 ounces which is still owed DLA as of 9/30/01. This platinum is not carried in

the accounts of the United States Mint; r a t h e r, DLA maintains accountability. Only United States

Mint owned platinum is reported in these statements.

Advances

Payments in advance of the receipt of goods and services are recorded as 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 remains $25,000.

Depreciation is computed on a straight-line basis over the estimated useful lives of related

assets as follows:

ADP Software 2 to 10 years

Machinery and Equipment 7 to 20 years

Structures, Facilities, and Leasehold Improvements 10 to 20 years

Depreciation of plant and equipment assets used jointly in numismatic and circulating coinage

production is allocated to each activity based on usage percentages.

Major alterations and renovations are capitalized over the shorter of a 20-year period or the

remaining useful life of the asset and depreciated on the straight-line method, while maintenance

and repair costs are charged to expense as incurred.
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Surcharges

Legislation authorizing commemorative programs often requires that the PEF remit a portion of

the sales proceeds to beneficiary organizations. These amounts are defined as “surcharges.”

A surcharges payable is established for surcharges received but not yet paid to the beneficiary.

P.L. 104-208, Omnibus Consolidated Appropriations for Fiscal Year 1997 (the Act), was passed

on September 28, 1996, changing the requirements of paying surcharges for commemorative

coin programs. Prior to the Act, any surcharges received were to be restricted to the benefiting

organization. However, the Act made the benefiting organizations full partners in bearing costs,

risks, and marketplace realities of selling coins. Benefiting organizations cannot receive surcharge

payments unless all of the United States Mint’s operating costs of the coin program are fully

recovered. The United States Mint may make interim surcharge payments during a commemorative

program if the benefiting organization meets the eligibility criteria in the Act, if the profitability of the

program is determ i n a b l e , and if the United States Mint is assured it is not at risk of a loss.

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.

Accrued Workers Compensation

A liability is recorded for estimated future payments to be made for workers compensation 

pursuant to the Federal Employees' Compensation Act (FECA). The liability is based on the 

net present value of estimated future payments. Estimated future payments to be made by the

Treasury are calculated by the Department of Labor, which tracks and pays the claims and is

subsequently reimbursed by the Treasury. A portion of Treasury's liability is allocated to the

United States Mint based on prior claims payment experience. 

Other Liabilities

Other Liabilities consist of Other Accrued Liabilities-Federal and Other Accrued Liabilities-Tr e a s u ry.

Displays and Archives

The United States Mint has a display area at each of its facilities and maintains archives at its

headquarters in Washington, D.C. The displays and archives include valuable coins and 

commemoratives minted domestically and internationally and other artifacts related to minting

operations. These items are not included in balances reported in these financial statements.

Records are maintained of all coins, commemoratives, and valuable artifacts. Physical inspections

are performed to assure accountability.
32

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Protection Costs

Virtually all of the Treasury’s gold and silver reserves are held by the United States Mint, which

is responsible for safeguarding the reserves in its custody. 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. Organizationally, the Protection Strategic Business Unit is a separate line

of business from coining operations.

Reclassification

Certain FY 2000 balances have been reclassified to conform to the presentation in FY 2001.

Hedging

In August 1999 the United States Mint began the process of hedging the purchases of base

metals used to manufacture United States coinage. Base metals (zinc, copper, and nickel) account

for 30 percent of the cost of manufacturing coins. Metal prices are subject to significant variation

as a result of market price volatility. The objective of the United States Mint’s base metals risk

management program is to reduce the variation in metal costs resulting from market price

swings. To accomplish the risk management objectives, swap hedges are utilized to lock in

metal prices on physical purchase commitments made but not yet delivered.

In FY 2000, The United States Mint adopted and is in compliance with Statement of Financial

Accounting Standards No. 133, as amended and follows the accounting guidelines for “cash

flow” hedging. Cash flows (gains or losses) generated from the United States Mint’s hedging

activities are accounted for in the Statement of Operations during the accounting period in

which the hedges are resolved. Gains and losses generated from hedging activities in FY

2001 are not material. At the beginning of FY 2002, the United States Mint has purchase

commitments and hedges in place for 25 percent of the forecasted base metal requirements.

All of these hedges are expected to be resolved during the first quarter of the new fiscal year.

The United States Mint estimates that gains and losses resulting from resolving these hedges will

not be material.

Note 3 Fund Balances with Treasury and Cash

Components of Fund Balances with Treasury and Cash at September 30 are as follows:

2001 2000

Revolving Fund $278,176 $339,388

Imprest Fund $4 $20

Total fund balance with Treasury and cash $278,180 $339,408
33

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

At September 30, 2001 and 2000, revolving fund balances included $10.82 million and

$6.39 million, respectively, in restricted amounts for possible payment of surcharges to beneficiary

organizations. Revolving fund balances also include amounts in budgetary clearing accounts.

Note 4 Accounts Receivable

Components of accounts receivable at September 30 are as follows:

2001 2000

Accounts receiveable, Federal $192 $111

Accounts receiveable, Non -- Federal $7,742 $2,778

Less allowances for doubtful accounts ($426) ($358)

Total Accounts Receivable $7,508 $2,531

Accounts receivable consist primarily of amounts due from shipments to Federal Reserve 

Board near year-end for which deposit tickets have not been received. These amounts were

subsequently received in early FY 2002 and FY 2001, respectively.

Beginning in FY 1997, an allowance for uncollectible customer accounts receivable was

established for all accounts that are delinquent more than 90 days. However, the United

States Mint will continue collection action as specified by the Debt Collection Improvement 

Act of 1996.

Note 5 Operating Inventories

The components of operating inventories at September 30 are summarized below:

2001 2000

Operating components $451,380 $429,985

Supplies $24,531 $20,257

Allowance for program closeout ($10,107) ($4,701)

Total Operating Inventories $465,804 $445,541

Operating components of inventories include direct materials, direct labor, and overhead for

work-in-process and finished goods inventories. Direct materials consist of metals, fabrication costs,

and transportation-in costs (costs related to the shipment of metals from fabricators and between

United States Mint facilities). Direct labor consists of direct factory labor costs, and overhead

consists of indirect labor costs, indirect materials (including dies), utilities, and depreciation. 
34

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Costs of precious metals (without fabrication and transportation) in the operating components at

September 30 are as follows:

2001 2000

Gold $121,065 $121,544

Silver $32,139 $31,699

Platinum $48,907 $43,864

Total cost of precious metals in operating component $202,111 $197,107

Note 6 Advances and Prepayments

The components of Advances and Prepayments at September 30 are summarized below:

2001 2000

Advances

Federal $6,553 $2,258

Non-Federal $159 $88

Total Advances $6,712 $2,346

Advances-Federal is the amount the United States Mint pays into the Tr e a s u ry Working Capital

Fund (the Fund), a revolving fund that operates as an accounting entity. In the Fund, the assets

are capitalized and all income is in the form of offsetting collections derived from each of the

Tr e a s u ry bureaus and available to finance the Fund’s operations. Advances-Non-Federal consists

primarily of advances to employees such as travel.

Note 7 Property, Plant and Equipment

The components of Property, Plant and Equipment at September 30 are as follows:

2001 2000

Land $2,529 $2,529

Structure, Facilities, and Leasehold Improvements $154,753 $118,004

Computer Equipment $17,572 $17,963

ADP Software $74,259 $39,835

Machinery and Equipment $224,372 $179,432

Assets Under Capitol Lease 0 $50

$473,485 $357, 813

Less Accumulated Depreciation and Amortization (146,937) (133,178)

Total Property, Plant and Equipment, Net $326,548 $224,635
35

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

United States Mint facilities used to manufacture circulating coinage and numismatic products

are owned by the United States Mint and located in San Francisco, California; Philadelphia,

Pennsylvania; Denver, Colorado; and West Point, New York. In addition, the United States

Mint owns the land and buildings at the Fort Knox Bullion Depository in Kentucky.

Depreciation and amortization expense charged to operations for FY 2001 and FY 2000 were

$29.5 million and $19.11 million, respectively.

Note 8 Other Assets

Included in other assets are progress payments (advances) for equipment and building improvements

under construction. The United States Mint has initiated a Mint-wide security upgrade, which

requires progress payments be made to the construction contractors. As of September 30, 2001,

the cumulative balance for such payments is $1.71 million which represents the outstanding 

balance remaining.

Note 9 Accounts Payable – Federal

E ffective FY 2000, Tr e a s u ry ’s working stock of gold and silver used in numismatic coin production

is recorded in the accounts of the Public Enterprise Fund and is not included in the Schedule of

Custodial Gold and Silver Reserves. The major portion of the non-current Accounts PayableFederal is the non-custodial gold and silver used as working stock for numismatic coin production.

A summary of Accounts Payable-Federal at September 30 are as follows:

2001 2000

Current

Funds to be transferred to others $5,216 $9,662

$5,216 $9,662

Non-Current 

Metal used as working stock inventory $154,585 $150,662

Metal at DLA for future working stock 0 $14,421

$154,585 $165,083

Total Accounts Payable-Federal $159,801 $174,745

The funds to be transferred to others resulted from the sale of metal used in United States Mint

products and other amounts owed to Federal entities, primarily the Treasury and DLA.
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Note 10 Custodial Gold and Silver Reserves

The United States Mint is responsible for safeguarding much of the nation’s precious metals and

strategic stockpiles and is the custodian of virtually all of the United States' gold and silver

reserves. These resources are reported in the custodial segment of the Statement of Financial

Position at the lower of cost or market value. Absent historical cost records to determine the

acquisition cost of the gold and silver over the decades, statutory rates of $42.2222 per FTO

of gold and $1.292929292 per FTO of silver are used to value the entire custodial reserves

held by the United States Mint. An offsetting custodial liability is also reported for these assets.

For purposes of comparison, the market value of these assets is disclosed in this note.

Amounts and values of custodial gold and silver in the custody of the Mint at September 30

are as follows:

2001 2000

Gold

Inventories (FTO) 245,262,897 245,262,897

Market Value ($ per FTO) $293.10 $273.65

Market Value ($ in thousands) $71,886,555 $67,116,192

Statutory Value ($ in thousands) $10,355,539 $10,355,539

Silver

Inventories (FTO) 7,075,171 7,075,171

Market Value ($ per FTO) $4.5825 $4.8875

Market Value ($ in thousands) $32,422 $34,580 

Statutory Value ($ in thousands) $9,148 $9,148

Total M a r k e t Value of Custodial Gold and Silver Reserves ($ in thousands) $71,918,977 $67,150,772

Total S t a t u t o ryValue of Custodial Gold and Silver Reserves ($ in thousands) $10,364,687 $10,364,687

Note 11 Surcharges Collected

Following are components of surcharges collected by product and beneficiary organization 

for FY 2001 and FY 2000. The surcharge recipients of programs subject to the provisions of

P.L. 104-208 must meet certain requirements before the Mint can make surcharge payments.

These requirements include raising matching funds and providing audited financial statements.
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Commemorative Pro g r a m B e n e f i c i a ry Org a n i z a t i o n 2 0 0 1 2 0 0 0 Sales Period

Capitol Visitors Center Capitol Pre s e rvation Fund $ 2 , 9 8 2 $ 0 2 0 0 1

American Buffalo Coin National Museum of the American Indian $ 4 , 9 6 2 $ 0 2 0 0 1

Dolley Madison National Trust For Historic Pre s e rv a t i o n $ 0 $ 3 3 2 1 9 9 9 - 2 0 0 0

G e o rge Wa s h i n g t o n Mount Ve rnon Ladies Association $ 0 $ 3 2 1 1 9 9 9 - 2 0 0 0

Ye l l o w s t o n e National Park Foundation, $ 0 $ 1 , 2 1 7 1 9 9 9 - 2 0 0 0

Yellowstone National Park

L i b r a ry of Congre s s L i b r a ry of Congre s s $ 2 4 6 $ 2 , 7 4 8 2 0 0 0 - 2 0 0 1

Yosemite Medal National Park Foundation $ 0 $ 2 1 9 9 9 - 2 0 0 0

Leif Ericson Leif Ericson Foundation $ 4 6 3 $ 2 , 2 8 7 2 0 0 0 - 2 0 0 1

Total Surc h a rges Collected $ 8 , 6 5 3 $ 6 , 9 0 7

Note 12 Other Revenue

Components of Other Revenue at September 30 are as follows:

2001 2000

Federal

Revenue/Services, Federal $44 $0

$44 $0

Non-Federal

Miscellaneous Revenue, Non-Federal $2 $195

$2 $195

Total Other Revenue $46 $195

Note 13 Cost of Goods Sold 

Components of Cost of Goods Sold at September 30 are as follows:

2001 2000

Finished Goods, Beginning $61,601 $35,665

Cost of Goods Manufactured:

Work-in-Process, Beginning $247,835 $58,441

Direct Labor $19,134 $22,738

Manufacturing Overhead $847,655 $1,035,631

Work-In-Process, Ending (390,924) (247,835)

Total Cost of Goods Manufactured $723,700 $868,975

Cost of Goods Available for Sale $785,301 $904,640

Finished Goods, Ending (74,880) (61,601)

Total Cost of Goods Sold $710,421 $843,039
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Note 14 Selling, General and Administrative Expense

Following are components of selling, general and administrative expenses as of September 30:

2001 2000

Selling Expenses

Marketing $28,278 $40,502

Advertising (including postage to mail brochures) $7,391 $11,437

Advertising for coin awareness $20,061 $47,513

Transportation to Federal Reserve Banks (FRB) $6,765 $13,120

$62,495 $112,572

General and Administrative

Other Salaries and Benefits $33,054 $34,296

Computer services $6,741 $14,484

Transportation, communications, and training $20,629 $8,804

Supplies $4,942 $2,221

Depreciation $9,949 $7,936

Rent $11,165 $10,432

Other administrative services $54,776 $47,394

$141,256 $125,567

Total Selling, General and Administrative $203,751 $238,139

Note 15 Other Costs and Expenses

These consist primarily of returns of mutilated or uncurrent coins to the United States Mint. The

United States Mint reimburses the entity that sent in the coins for the face value of these coins if

the coins are individually identifiable. If the coins have melted (as in a fire), the United States

Mint reimburses the entity an amount based on the metal content of the melted mass.

Note 16 Retirement Plans and Other Postemployment Costs (Imputed Financing)

At the end of FY 2001, five hundred seventy-six (576) Mint employees participated in the Civil

Service Retirement System (CSRS), to which the United States Mint contributes 24.2 percent of

pay. On January 1, 1987, the Federal Employees’ Retirement System (FERS) went into effect

pursuant to P.L. 99-335. Most employees hired after December 31,1983, are automatically

covered by FERS and Social Security. Employees hired prior to January 1,1984, have elected

to join FERS or remain in CSRS. 

A primary feature of FERS is that it offers a savings plan to which the United States Mint automatically

c o n t r i b u t e s one percent of pay and matches any employee contributions up to an additional four

percent of pay. FERS employees are allowed a maximum annual contribution of 11 percent of

salary. 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.
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

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. Therefore, the

United States Mint does not report CSRS or FERS assets, accumulated plan benefits, or unfunded

liabilities, if any, applicable to United States Mint employees. Responsibility for reporting such

amounts 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 24.2 percent of basic pay for CSRS-covered

employees and 11.5 percent of basic pay for FERS-covered employees were in use for both

FY 2001 and FY 2000.

The amounts that the PEF contributed to the retirement plans and Social Security as of

September 30 are as follows:

2001 2000

Social Security System $8,502 $8,199

Civil Service Retirement System $2,685 $2,629

Federal Employees Retirement System (Retirement & Thrift Savings Plan) $12,895 $10,779

$24,082 $21,607

The United States Mint is also recognizing its share of the future cost of post-retirement health

benefits and life insurance 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 also provided certain cost factors that estimate the

true cost of providing the post-retirement benefit to current employees. The cost factor relating

to health benefits is $2,999 and $2,733 per employee enrolled in the Federal Employees

Health Benefits Program in FY 2001 and FY 2000, 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 FY 2001 and FY 2000.

The amount of imputed cost (before the offset for imputed financing) incurred by the United

States Mint at September 30 are below: 

2001 2000

Health Benefits $6,868 $5,496

Life Insurance $18 $20

Pension Expense $2,253 $2,577

Total Imputed Cost $9,139 $8,093
40

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Note 17 Lease Commitments

The United States Mint leases space in four buildings in Washington, D.C., and office and

warehouse space near other United States Mint facilities. Space in Denver and San Francisco

is leased from the General Services Administration (GSA), which charges a fee that approximates

the commercial rental rates for similar properties. The remaining buildings are leased from 

private sources.

Total rental expense was $12.66 million and $11.73 million in FY 2001 and FY 2000,

respectively.

Operating Leases

Schedule of Minimum Future Rental Payments (in thousands)

Year ended 9/30

2002 $13,020

2003 $10,493

2004 $10,539

2005 $10,502

2006 $10,591

After 2006 $115,368

Total minimum future rental payments $ 1 7 0 , 5 1 3

Note 18 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 Department of Treasury Judgment Fund. 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.

The United States Mint has a pending bankruptcy claim for about $13 million against a silver

refining vendor for the not-returned United States Mint silver. At the same time, the United States

Mint has a pending claim under an insurance policy for the loss of this silver.
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U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Note 19 Related Parties

The United States Mint is subject to management control by the Secretary of the Treasury.

The United States Mint has been required by legislation to obtain silver to be used in minting of 

commemoratives from the DLA stockpiles. The United States Mint has been using DLA silver,

when available, in the production of numismatic silver coins. Beginning in FY 2000, due to the

dwindling supply of DLA silver, the United States Mint, on occasion, has gone out on the open

market to meet coin production demands. It is expected that the United States Mint will

deplete the DLA stockpiles of silver in FY 2002. Until the stockpile is depleted, the United

States Mint will continue to reimburse the DLA at the market price for silver, less the statutory

rate of $1.292929292 per FTO. The $1.292929292 per FTO is paid by the United States

Mint to the Treasury.

Related Parties who were paid at least $100,000 as of September 30 are below:

2001 2000

United States Postal Service $12,404 $21,243

General Services Administration $2,282 $3,238

Department Offices $1,864 -

Office of Personnel Management $722 -

Department of Veterans Affairs $468 -

Government Printing Office $281 $178

Internal Revenue Service $287 -

Federal Law Enforcement Training $169 -

Department of the Army $149 -

Total Related Parties $18,626 $24,659

The United States Mint shipped approximately $2,003 million in coins to the Federal Reserve

Board in FY 2001. This amount represents a 35.6 percent decrease over FY 2000 shipments.

Numismatic orders, checks, and credit card orders are processed by a commercial bank.

Fees associated with these services are absorbed by the Treasury and are not reflected in the

United States Mint's financial statements. 
42

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 2001

Independent Auditor’s Report on the Financial Statements 

United States Department of the Treasury

Office of Inspector General

We have audited the accompanying statements of financial position of the United States

Mint (Mint), a bureau of the United States Department of the Tr e a s u ry, as of September 30,

2001 and 2000, and the related statements of operations and changes in net position, and

cash flows for the fiscal years then ended. These financial statements are the responsibility

of the Mint’s management. Our responsibility is to express an opinion on these financial

statements based on our audits. We did not audit the United States’ gold and silver

reserves (Custodial Gold and Silver Reserves) for which the Mint serves as custodian.

These reserves were audited by the United States Department of the Treasury, Office of

Inspector General (OIG) whose report has been furnished to us, and our opinion, insofar

as it relates to these reserves, is based solely on the report of the OIG.

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 Bulletin No. 01-02, Audit Requirements for

Federal Financial Statements. Those standards require that we plan and perform the audit

to obtain reasonable assurance about whether the financial statements are free of material

misstatement. An audit includes examining, on a test basis, evidence supporting the

amounts and disclosures in the financial statements. An audit also includes 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, based on our audits and the report of the OIG, the financial statements 

referred to above, present fairly, in all material respects, the financial position of the Mint

as of September 30, 2001 and 2000, and the results of its operations, the changes in 

its net position, and its cash flows for the years then ended in conformity with accounting

principles generally accepted in the United States of America.
43

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Our audit was conducted for the purpose of forming an opinion on the financial statements

taken as a whole. The accompanying supplemental financial information is presented for 

purposes of additional analysis and is not a required part of these financial statements.

Such information has been subjected to the auditing procedures applied in the audit of the

financial statements and, in our opinion, is fairly stated in all material respects in relation to

the financial statements taken as a whole.

In accordance with Government Auditing Standards, we have also issued reports dated

January 15, 2002, on our consideration of the Mint’s internal control over financial 

reporting, and on our tests of its compliance with certain provisions of applicable laws

and regulations. Those reports are an integral part of an audit performed in accordance

with Government Auditing Standards and, in considering the results of the audit, those

reports should be read in conjunction with this report.

Washington, DC

January 15, 2002 
44

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Independent Auditor’s Report on Internal Control

United States Department of the Treasury

Office of Inspector General

We have audited the financial statements of the United States Mint (Mint), a bureau of the

United States Department of the Tr e a s u ry, as of and for the year ended September 30, 2001

and have issued our report thereon, dated January 15, 2002. The United States’ gold and

s i l v e r reserves, for which the Mint serves as custodian, were audited by the OIG. We

conducted our audit in accordance with auditing standards generally accepted in the

United States of America; the standards applicable to financial audits contained in

Government Auditing S t a n d a r d s, issued by the Comptroller General of the United States;

and, Office of Management and Budget (OMB) Bulletin No. 01-02, Audit Requirements

for Federal Financial Statements.

In planning and perf o rming our audit, we considered the Mint’s internal control over financial

reporting by obtaining an understanding of the Mint’s internal control, determined whether

internal controls had been placed in operation, assessed control risk, and performed tests

of controls in order to determine our auditing procedures for the purpose of expressing our

o p i n i o n on the financial statements. We limited our internal control testing to those controls

necessary to achieve the objectives described in OMB Bulletin No. 01-02. We did not

test all internal controls relevant to operating objectives as broadly defined by the Federal

Managers’ Financial Integrity Act of 1982 (FMFIA), such as those controls relevant to

ensuring efficient operations. The objective of our audit was not to provide assurance on

internal control. Consequently, we do not provide an opinion on internal control.

Our consideration of the internal control over financial reporting would not necessarily 

disclose all matters in the internal control over financial reporting that might be reportable

conditions. Under standards issued by the American Institute of Certified Public Accountants,

reportable conditions are matters coming to our attention relating to significant deficiencies

in the design or operation of the internal control that, in our judgment, could adversely

a ffect the Mint’s ability to record, process, summarize, and report financial data consistent

with the assertions by management in the financial statements. Material weaknesses are

reportable conditions in which the design or operation of one or more of the internal 

control components does not reduce to a relatively low level the risk that misstatements in 
45

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

amounts that would be material in relation to the financial statements being audited may

occur and not be detected within a timely period by employees in the normal course of

performing their assigned functions. Because of inherent limitations in internal controls, 

misstatements, losses, or noncompliance may nevert h el e s s occur and not be detected.

H o w e v e r, we noted certain matters involving the internal control and its operation that we

consider to be reportable conditions, and, with respect to the first two items below,

material weaknesses.

Reportable Condition 1 (Material Weakness)

Information System General Controls Need Improvement (Repeat Condition)

In connection with our audit of the Mint’s financial statements, we conducted a general

controls review of the Mint’s financial management information systems, limited systems

application testing, and a review of the Mint’s e-commerce system. These reviews were

performed in accordance with the General Accounting Office’s (GAO), Federal Information

System Control Audit Manual (FISCAM).

The Mint did not make sufficient improvements in addressing or correcting the inform a t i o n

s y s t e m general control weaknesses identified during the audit of the FY 2000 financial

statements. These weaknesses, not considered material during FY2000, have been

upgraded to material status in FY2001. Specifically, the Mint continued to have significant

i n t e rnal control weaknesses related to the existence and availability of certain information

systems documentation, policies and procedures. Furt h e rmore, we noted that the Mint needs

to continue to focus on improvements addressing issues related to logical access controls, 

systems change controls, and service continuity. These conditions, if left unresolved, render

the Mint’s information systems and data vulnerable to internal or external attack and may

lead to uncontrolled access to these systems and data.

The internal control issues noted are directly related to the following FISCAM domains: 

Entity-Wide Security Program Planning and Management, Access Controls, Application

Software Development and Change Control, Systems Software, Segregation of Duties, 

and Service Continuity. Overall, we have concluded that the Mint, while addressing 

some of these issues which were considered reportable conditions last year, must place a

higher priority on making more immediate improvements in its information systems internal

control environment.
46

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Due to the sensitive nature of these issues, we issued a separate report to Mint management,

including the Office of Chief Information Officer (OCIO), dated January 15, 2002, which

contains the details of our findings and recommendations related to information systems.

The key recommendations issued in that report are summarized as follows:

We recommend that the Director of the Mint ensure that the Chief Information Officer and

Chief Financial Officer:

• Develop and implement a formal action plan to address and resolve each of the inform a t i o n

system general control weaknesses related to follow-up and systems documentation noted

during the course of our audit and to ensure compliance with OMB Circular A-130.

• Develop and implement a plan that establishes a monthly communication of the status of

each corrective action in the action plan to the Mint’s Chief Information Officer, Chief

Financial Officer, and the audit team.

• Develop and implement a schedule for independent quarterly follow-up reviews to verify 

the reported progress on the action plan. If any delays are noted in the action plan,

Mint management should take the appropriate steps to get the corrective action back on

s c h e d u l e and ensure that no further delays are encountered.

Reportable Condition 2 (Material Weakness)

Information System Controls at the Application Level Need Improvements

We identified significant internal control weaknesses as a result of the limited application and

e-commerce testing that we conducted. Specifically, we identified internal control weaknesses

related to the completeness, integrity, and availability of internal financial reports to Mint

management and for our independent review. For instance, we were unable to ascertain

who had made changes to the inventory valuation (roll-up) in the Enterprise Resource

Planning (ERP) software. Users of the ERP and e-commerce software were not always able

to obtain timely, accurate, and consistent reports that would enable them to perform their

jobs efficiently. Additionally, as part of the business process re-engineering, we noted that

the OCIO did not sufficiently define logical user access rights and privileges for business

applications based on appropriate job duties or responsibilities. This is due in part to OCIO

not communicating with the business owners and users to determine appropriate user rights

and privileges based on job duties.
47

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

These internal control weaknesses are directly related to the following FISCAM domains: 

Entity-Wide Security Program Planning and Management, Access Controls, Application

Software Development and Change Control, Systems Software, Segregation of Duties, and

S e rvice Continuity. These conditions, if left unresolved, render the Mint’s information systems

and data vulnerable to internal or external attack and may lead to uncontrolled access to

these systems and data.

Due to the sensitive nature of these issues, we issued a separate report to Mint management,

including the OCIO, dated January 15, 2002, which contains the details of our findings

and recommendations related to information systems. The key recommendations issued in

that report are summarized as follows:

We recommend that the Director of the Mint ensure that the Chief Information Officer and

the Chief Financial Officer:

• Develop and implement a formal action plan to address and resolve each of the inform a t i o n

system application and e-commerce control weaknesses noted during the course of our

audit and to ensure compliance with OMB Circular A-130.

• Develop and implement a plan that establishes a monthly communication of the status of

each corrective action in the action plan to the Mint’s Chief Information Officer, Chief

Financial Officer, and the audit team.

• Develop and implement a schedule for independent quarterly follow-up reviews to verify 

the reported progress on the action plan. If any delays are noted in the action plan,

Mint management should take the appropriate steps to get the corrective action back on

s c h e d u l e and ensure that no further delays are encountered.

• Independent systems audits should be scheduled and budgeted for the next fiscal year,

which would include the following information systems security and control reviews: full

application testing of all modules related to the Mint’s ERP solution, a review of planned

upgrades of the Mint’s ERP package to ensure systems security and controls are

designed and implemented, a full scope review of the Mint’s database controls, a full

scope review of the Mint’s operating systems controls, detailed systems reviews of the

Mint’s e-commerce and call center environments, and various reviews of major systems

projects or technology changes planned by the Mint for the next fiscal year. Without

an independent review of these controls, Mint management will have limited assurance

that the systems internal control issues are fully addressed and resolved.
48

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

• Develop a formal information protection plan that addresses the privacy requirements for

the storage and use of sensitive customer data.

• Improve financial reporting for the Mint’s business applications and e-commerce environment

to enable users to perform their jobs in a more efficient manner.

• Ensure the OCIO works closely with the business owners of the business applications

( O C F O ) and the e-commerce (Sales and Marketing) system, especially in relation to a

business process re-engineering effort, to ensure that user rights and privileges are

appropriate and based on job duties. For instance, read-access in the ERP may be

appropriate for an entire department or Business Unit (BU); however, the ability to make

changes to “live” production data (write access) may not be appropriate.

• Ensure the OCIO subsequently reviews each user account to ensure it meets the inform a t i o n

security requirements of Mint policies and will foster an effective internal control environment

(e.g., an Accounts Payable clerk should not have the ability to alter inventory valuations).

Reportable Condition 3

Review and Approval of Vendor Invoices Needs Improvement

We identified a weakness in the controls surrounding Mint’s review and acceptance of

vendor invoices for payment by the Mint. According to Mint policy, it is the Contracting

Officer’s Technical Representative’s (COTR’s) responsibility to review invoices received and

determine whether sufficient support has been provided to ensure that the Mint has

received billed goods or services in accordance with all contractual terms. There are

detailed instructions and requirements in the Mint’s procurement documentation describing

the form and support for invoices sent to the Mint. We noted several contracts in which

the invoices paid clearly did not meet the criteria for properly supported invoices as outlined

in the contract or other procurement documents. The accounts payable function would 

not necessarily catch, nor are they currently required to catch, unsupported invoices. The

accounts payable clerks simply look for verification of receipt of goods or services on the

invoice, namely the COTR’s signature for acceptance. Consequently, numerous payments

were made to vendors for goods and services that were not properly supported in accordance

with contract terms.
49

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

We recommend that the Director of the Mint ensure that:

The Chief Financial Officer perf o rm an audit of all significant procurements of goods or 

s e rv i c e s , focusing on the sufficiency of vendor invoice support and evidence of a thorough

COTR review of the invoices. The COTR review should include verification that the invoice

and support are in compliance with the contract (or other procurement source such as purchase

orders) as well as whether there was sufficient proof of receipt of goods or services by the Mint.

In addition, with respect to internal controls related to performance measures reported in

Management’s Discussion and Analysis contained within accompanying information, we

obtained an understanding of the design of significant internal controls relating to the existence

and completeness assertions, as required by OMB Bulletin No. 01-02. Our procedures

were not designed to provide assurance on internal control over reported performance

measures, and, accordingly, we do not provide an opinion on such controls.

We also noted other less significant matters involving the internal control and its operation, which

we have reported to the management of the Mint in a separate letter, dated January 15, 2002.

This report is intended solely for the information and use of the Office of Inspector General,

the management of the Mint and the Department of the Treasury, OMB and Congress, and

is not intended to be and should not be used by anyone other than these specified parties. 

Washington, DC

January 15, 2002
50

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Independent Auditor’s Report on 

Compliance with Laws and Regulations

United States Department of the Treasury

Office of Inspector General

We have audited the financial statements of the United States Mint (Mint), a bureau of the

United States Department of the Tr e a s u ry, as of and for the year ended September 30, 2001

and have issued our report thereon, dated January 15, 2002. The United States’ gold and

s i l v er reserves, for which the Mint serves as custodian, were audited by the OIG. We

conducted our audit 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. 01- 02, Audit Requirements

for Federal Financial Statements.

The management of the Mint is responsible for complying with laws and regulations 

applicable to the agency. As part of obtaining reasonable assurance about whether the

financial statements are free of material misstatement, we performed tests of its compliance

with certain provisions of laws and regulations, noncompliance with which could have a

direct and material effect on the determination of financial statement amounts and cert a i n

other laws and regulations specified in OMB Bulletin No. 01-02, including the requirements

referred to in the Federal Financial Management Improvement Act (FFMIA) of 1996. We

limited our tests of compliance to these provisions and we did not test compliance with all

laws and regulations applicable to the Mint.

The results of our tests of compliance disclosed no instances of noncompliance with the

laws and regulations discussed in the preceding paragraph, exclusive of FFMIA, that are

required to be reported under G o v e rnment Auditing Standard s or OMB Bulletin No. 01-02.

Under FFMIA, we are required to report whether the Mint’s financial management systems 

substantially comply with the Federal financial management systems requirements (FFMSR),

applicable Federal accounting standards, and the United States Standard General Ledger

at the transaction level. To meet this requirement, we performed tests of compliance with

FFMIA section 803(a) requirements.
51

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

The results of our tests disclosed instances, described below, where the Mint’s financial 

management systems did not substantially comply with Federal financial management system

requirements, including OMB Circulars A-127, Financial Management Systems and 

A-130 Management of Federal Information Resources.

The instances of noncompliance with FFMSR are due to (1) internal control

w e a k n e s s e s related to entity-wide security program planning and management

and access controls; and (2) internal control weaknesses at the application level

within the financial management and electronic commerce systems.

Specific conditions attributable to this noncompliance and related recommendations for 

c o r r e c t i v e actions are more fully described in our report on internal control dated January

15, 2002. The Chief Information Officer of the Mint is responsible for the financial 

management systems within the Mint.

The results of our tests disclosed no instances in which the Mint’s financial management 

systems did not substantially comply with applicable Federal accounting standards and the

United States Standard General Ledger at the transaction level.

Providing an opinion on compliance with certain provisions of laws and regulations was

not an objective of our audit and, accordingly, we do not express such an opinion.

This report is intended solely for the information and use of the Office of Inspector General,

the management of the Mint and the Department of the Treasury, OMB and Congress, and

is not intended to be and should not be used by anyone other than these specified parties. 

Washington, DC

January 15, 2002
52

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

In this Supplemental Section of the Report, we provide additional information related to the

financial condition of the United States Mint. Each section provides its own additional insight.

Supplemental Information per Public Law 106-445 

The following supplemental schedules were prepared in compliance with the new reporting

requirement per Public Law 106-445 Section 5134(e)(2) of title 31, United States Code that

was amended in FY 2000, which required the United States Mint to include in its annual report

specific information regarding the costs and expenses for producing, marketing, and distributing

circulating coinage — both in gross and on a per-unit basis — as well as gross revenue from

the sales of each denomination.

The first schedule provides the information detailing the costs and expenses for the production,

for the marketing, and for the distribution of each denomination of circulating coins produced

by the United States Mint during FY 2001 as well as the gross revenue derived from the sales

of each such denomination of coins. The second schedule provides the information for the 

per-unit cost of producing and of distributing each denomination of such coins.

Circulating SBU Profit and Loss for FY 2001

For the Period Ending September 30, 2001

Penny Nickel Dime Quarter Half Dollar Other Total

Revenues $127.7 $83.5 $312.3 $1,382.2 $13.5 $102.2 $0 $2,021.4

Cost of Production $101.5 $54.9 $71.2 $285.8 $2.3 $12.9 $9.0 $537.6

Distribution to FRB $1.6 $0.4 $0.7 $3.6 $0.1 $0.3 $0 $6.7

Total Expenses 

prior to Marketing $103.1 $55.3 $71.9 $289.4 $2.4 $13.2 $9.0 $544.3

Marketing $0 $0 $0 $12.4 $0 $7.3 $0 $19.7

Profit / (Loss) $24.6 $28.2 $240.4 $1,080.4 $11.1 $81.7 $(9.0) $1,457.4

Unit Cost of Producing and Distributing Coins

For the Period Ending September 30, 2001

Penny Nickel Dime Quarter Half Dollar

Cost of Production $0.0079 $0.0329 $0.0228 $0.0517 $0.0855 $0.1263

Distribution to FRB $0.0001 $0.0002 $0.0002 $0.0007 $0.0037 $0.0029

Total Expenses $0.0080 $0.0331 $0.0230 $0.0524 $0.0892 $0.1292

prior to Marketing

Supplemental

Financial

Information

2001
53

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Circulating SBU Profit and Loss for FY 2000

For the Period Ending September 30, 2000

Penny Nickel Dime Quarter Half Dollar Other Total

Revenue $136.7 $121.0 $388.4 $1,541.9 $13.5 $1,019.4 $0.6 $3,221.5

Cost of Production $110.3 $75.8 $73.0 $264.7 $2.6 $102.2 $8.3 $636.9

Distribution to FRB $1.9 $0.7 $1.5 $5.8 $0.1 $3.0 $0 $13.0

Total Expenses 

prior to Marketing $112.2 $76.5 $74.5 $270.5 $2.7 $105.2 $8.3 $649.9

Marketing $0 $0 $0 $4.9 $0 $42.4 $0 $47.3

Profit / (Loss) $24.5 $44.5 $313.9 $1,266.5 $10.8 $871.8 $(7.7) $2,524.3

Unit Cost of Producing and Distributing Coins

For the Period Ending September 30, 2000

Penny Nickel Dime Quarter Half Dollar

Cost of Production $0.0081 $0.0313 $0.0188 $0.0429 $0.0963 $0.1003

Distribution to FRB $0.0001 $0.0003 $0.0004 $0.0009 $0.0037 $0.0029

Total Expenses $0.0082 $0.0316 $0.0192 $0.0438 $0.1000 $0.1032

prior to Marketing

Supplemental Statements of Net Cost

OMB Bulletin 97-01 requires two additional supplemental statements --- the Statement of

Financing and the Statement of Budgetary Resources. These statements are designed for

organizations that operate under an annual appropriation from Congress. The United States

Mint is a full revolving fund and receives no appropriated funds. In addition, the United States

Mint is a manufacturing operation with operating inventories. The OMB statements do not

allow for consideration of operating inventories. Therefore, we do not present these statements

in this report as they may mislead the reader.

This statement is modeled primarily on OMB Bulletin 97-01, using proprietary accounting data.

The United States Mint’s three programs are reported separately in the Supplemental Statements of

Net Cost; whereas they are combined in the Statements of Operations and Changes in Net Position.

Costs of goods sold presented in the Supplemental Statement of Net Cost has been reclassified

from intragovernmental cost to cost with the public. A part of selling, general and administrative

expenses has been reclassified from cost with the public to intragovernmental cost.
54

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

D e p a rtment of the Tr e a s u ry

United States Mint

Supplemental Statements of Net Cost (in thousands)

For Year Ended September 30, 2001

Years Ended September 30,

2001 2000

Costs:

Numismatic Production and Sales

Intragovernmental

Cost of Goods Sold $0 $0

Selling, General and Administrative $17,822 $19,263

Other costs and expenses $914 $809

Total Intragovernmental $18,736 $20,072

With the Public

Cost of Goods Sold $298,570 $329,341

Selling, General and Administrative $42,705 $43,918

Other costs and expenses $0 $0

Total With the Public $341,275 $373,259

Less earned revenues $402,027 $481,526

Net program costs (profit) ($42,016) ($88,195)

Circulating Production and Sales

Intragovernmental

Cost of Goods Sold $0 $0

Selling, General and Administrative $12,615 $40,259

Other costs and expenses $8,225 $7,284

Total Intragovernmental $20,840 $47,543

With the Public 

Cost of Goods Sold $411,852 $514,821

Selling, General and Administrative $130,610 $134,699

Other costs and expenses $9,009 $7,385

Total With the Public $551,471 $656,905 

Less earned revenues $2,021,344 $3,221,488

Net program costs (profit) (A) ($1,449,033) ($2,517,040)

Protection of Assets $34,279 $29,757

Costs Assigned to other Agencies (not assigned to program):

Other post-employment benefit costs $0 $0

Less funding sources $0 $0

Net program costs (profit) $0 $0

Net Cost of (Profit from) Operations ($1,456,770) ($2,575,478)

(A) Net Program cost (profit) from circulating production and sales on this statement will not agree with the supplemental 

schedule for Circulating SBU Profit and Loss because imputed cost is not included in the supplemental schedule.
55

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Glossary of Terms and Acronyms

AFGE - American Federation of Government Employees

American Eagle Pro g r a m – Gold, platinum, or silver coins issued in proof or uncirculated qualities.

Gold and platinum coins are issued with one-tenth, one-quart e r, one-half and one ounce precious

metal content. Silver coins are issued with one ounce of silver metal content. Proof quality

coins are considered numismatic products and sold directly to consumers as individual coins or

in sets of various combinations of sizes and metals. Uncirculated quality coins are considered

investment-quality coins and sold directly to a limited number of precious metal dealers.

CFO - Chief Financial Officer

Circulating Coins – cent, nickel, dime, quarter dollar, half dollar, and one dollar coins used in

daily commerce.

COINS – COnsolidated INformation System, the United States Mint’s fully integrated enterprise

resource planning system. The Mint utilizes PeopleSoft manufacturing and financial modules,

Smith-Gardner Mail Order and Catalogue System (MACS) for processing coin orders from 

consumers, and MAXIMO for tracking inventory other than metal.

Commemorative Coin Programs – coins the United States Mint produces and markets based

on Congressionally enacted legislation. These programs generally honor significant people

(i.e., Dolley Madison), events (i.e., Olympic Games), or things (i.e., the National Law

Enforcement Officers Memorial). Commemorative coins are generally sold for a 12-month 

period as defined in the legislation.

CSRS - Civil Service Retirement System

DLA - Defense Logistics Agency

ERP System – Enterprise Resource Planning System, a series of computer modules/programs

that work together to allow a business to plan production, track inventory, fill customer orders,

and produce accurate financial information in a timely manner. The United States Mint’s

COINS is an example of an ERP System.

FECA - Federal Employees Compensation Act

FERS - Federal Employees Retirement System

FFMIA - Federal Financial Management Improvement Act of 1996

FICA - Federal Insurance Contribution Act

FMFIA - Federal Managers’ Financial Integrity Act of 1982
56

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Glossary of Terms and Acronyms (continued)

FRB - Federal Reserve Board or Bank

FTO - Fine Troy Ounce

FY - Fiscal Year

GSA - General Services Administration

MACS - Mail-Order and Catalog System

Numismatic Products – coins and coin-related products produced by or for the United States

Mint for sale to the public.

OIG - Office of the Inspector General

OMB - Office of Management and Budget

OPM - Office of Personnel Management

PEF - Public Enterprise Fund

Proof Quality Coins – coins that are struck multiple times with specially treated dies to produce

a mirrored background, sharp relief, and a frosted image on the finished coin. Coins offered

as numismatic products are produced in proof quality as well as uncirculated quality.

Q50 - 50 State Quarters Program®

Recurring or Annual Coin Programs – proof and uncirculated sets of all circulating coins for 

a year that are specially packaged for collectors. Recurring programs include the annual 

uncirculated set, which includes circulating coins from both the Denver and Philadelphia Mints;

the silver proof set, which includes a silver dime, quarter(s), and half dollar as well as a proof

quality cent, nickel, and Golden Dollar; and souvenir sets that include uncirculated circulating

coins produced by the Philadelphia or Denver Mints.

SBA - Susan B. Anthony Dollar Coin

Surcharge – an amount added to the selling price of a commemorative coin. The surcharge

amount and the beneficiary organization(s) are specified in the commemorative coin legislation.

The United States Mint collects the surcharges and pays them to the beneficiary organizations

after the organizations meet certain requirements related to matching funds and audited financial

statements.

Uncirculated Quality Coins – coins that are struck only once with regular coinage dies.

Uncirculated coins have a satin finish versus the mirrored background and frosted image of 

the proof coins.
57

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Department of the Treasury

United States Mint

Schedule of Custodial Gold and Silver Reserves

As of September 30, 2001 and 2000 (in thousands)

Custodial Gold and Silver Reserves 2001 2000

United States gold and silver reserves (Note 2) $10,364,687 $10,364,687

Liability to Treasury (Note 2) $10,364,687 $10,364,687

Net gold and silver reserves custodial position $0 $0

The accompanying notes are an integral part of this Schedule.

Notes to the Schedule of Custodial Gold and Silver Reserves

as of September 30, 2001 and 2000

Note 1. Summary of Significant Accounting Policies

A. Reporting Entity

The United States Mint (U.S. Mint), established in 1792, is an integral part of the Department

of the Treasury. The mission of the U.S. Mint is to manufacture coins for general circulation. 

In addition to manufacturing circulating coins, the U.S. Mint manufactures numismatic products,

which include medals, proof coins, uncirculated coins, gold and silver bullion coins, and 

commemorative coins. These manufacturing operations are reported in the manufacturing 

segment of the U.S. Mint’s consolidated financial statements. The U.S. Mint is also the custodian

of a significant portion of the United States’ gold and silver reserves, which are presented in

the reserves segment of the U.S. Mint’s Statements of Financial Position. The U.S. Mint uses

the term custodial to identify gold and silver reserves held for the U.S. Treasury. The custodial

reserves are not assets of the U.S. Mint, but are assets of the U.S. Treasury.

The U.S. Mint’s custodial activities, including the protection of the United States’ gold and silver

reserves, are funded by the U.S. Mint’s Public Enterprise Fund (PEF).

B. Basis of Presentation

This Schedule has been prepared to report the gold and silver reserves custodial position of the

U.S. Mint. The books and records of the U.S. Mint have served as the source of the inform a t i o n

contained herein. The Schedule has been prepared in accordance with accounting principles

generally accepted in the United States of America and U.S. Mint accounting policies.
58

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

This Schedule includes all gold and silver classified by the U.S. Mint as “custodial reserves” as

defined in Note 2. This Schedule does not include gold and silver withdrawn from the “custodial

r e s e rves” for use in the operations of the U.S. Mint’s PEF. The U.S. Mint’s PEF is authorized to use

gold and silver from the custodial reserves to support its numismatic operations. The PEF would

later replenish the custodial reserves with newly mined gold. This Schedule does not reflect any

United States’ gold and silver reported by the U.S. Mint in its operating inventory or any reserv e

amounts due to be replenished by the PEF, nor does it include gold held at Federal Reserve Banks.

Note 2. Gold and Silver Reserves

The gold and silver reserves reported in this Schedule are exclusive of the gold and silver reserv e s

considered to be operating inventory in the U.S. Mint’s financial records, and of the Tr e a s u ry

gold held by the Federal Reserve Banks. The custodial gold and silver reserves included in this

Schedule are primarily in bar form, but may occasionally be in coin or other form. The custodial

reserves also include foreign gold coins held by Treasury for many years.

The gold and silver reserves are reported in this Schedule at the lower of cost or market value.

Absent historical records to determine the acquisition cost of the gold and silver over the decades,

the reserves are valued at the rates stated in U.S. Code Title 31, Sections 5116 and 5117

(statutory rates) which are $42.2222 per Fine Troy Ounce (FTO) of gold and $1.292929292

per FTO of silver. An offsetting liability is also reported for these assets.

At September 30, 2001 and 2000, the market value of gold was $293.10 per FTO and

$273.65 per FTO respectively. Gold inventories consisted of the following at September 30:

FTO Statutory Value Market Value

2001 245,262,897.040 $10,355,539,091 $71,886,555,122

2000 245,262,897.040 $10,355,539,091 $67,116,191,775

At September 30, 2001 and 2000, the market value of silver was $4.5825 per FTO and

$4.8875 per FTO respectively. Silver inventories consisted of the following at September 30:

FTO Statutory Value Market Value

2001 7,075,171.14 $9,147,696 $32,421,972

2000 7,075,171.14 $9,147,696 $34,579,899
59

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

The combined gold and silver custodial reserves consisted of the following at September 30:

Statutory Value Market Value

2001 $10,364,686,787 $71,918,977,094

2000 $10,364,686,787 $67,150,771,674

In prior years, custodial gold and silver FTOs have been transferred to the PEF for numismatic

operations. The PEF is responsible for either replenishing the custodial reserves with purchases

of newly mined gold or the PEF pays the Treasury General Fund for the custodial reserves used.

In addition, the Defense Logistics Agency has transferred silver to the custodial reserves. 

The United States commemorated the first meeting of Congress in the U.S. Capitol with the three-coin 

U.S. Capitol Visitor Center Commemorative Coin Program. Pictured here are (clockwise from top left) 

the three-coin proof set, uncirculated clad set, uncirculated gold coin, and proof clad half dollar.
60

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 2001

Report of the Office of Inspector General

The Department of the Treasury

To the Director of the United States Mint:

We have audited the United States Mint’s (U.S. Mint) Schedule of Custodial Gold and Silver

R e s e rves (Schedule) as of September 30, 2001 and 2000. This report presents our 

u n q u a l i f i e d audit opinion on this Schedule. Our audit disclosed no material weaknesses and

no instances of reportable noncompliance with laws and regulations in fiscal year 2001.

Management's Responsibilities

Management is responsible for:

• Preparing the Schedule in conformity with accounting principles generally accepted in

the United States of America.

• Establishing and maintaining internal control. In fulfilling this responsibility, estimates

and judgments by management are required to assess the benefits and related costs of

internal control policies and procedures.

• Complying with laws and regulations applicable to the U.S. Mint’s custodial responsibilities

for the gold and silver reserves.

Scope of Audits

We conducted our audits in accordance with Government Auditing Standards, issued by

the Comptroller General of the United States, and applicable Office of Management and

Budget (OMB) guidance. Those standards require that we plan and perform the audits to

obtain reasonable assurance about whether the Schedule is free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and 

disclosures in the Schedule. An audit also includes assessing the accounting principles

used and significant estimates made by management, as well as evaluating the overall

Schedule presentation. Our responsibility is to express an opinion on the Schedule based

on our audits. We believe that our audits provide a reasonable basis for our opinion.

In planning and conducting our audit of the Schedule for the year ended September 30, 2001,

we considered the U.S. Mint’s internal control over financial reporting and compliance

with laws and regulations. Specifically, we obtained an understanding of the design of its 

internal controls, determined whether these internal controls had been placed in operation, 

assessed control risk, and perf o rmed tests of controls in order to determine our auditing procedures
61

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

for the purpose of expressing our opinion on the Schedule and not to provide assurance

on the internal control over financial reporting and compliance with laws and regulations.

Consequently, we do not provide an opinion on such controls.

As part of obtaining reasonable assurance about whether the Schedule is free of material 

misstatement, we performed tests of the U.S. Mint’s compliance with certain provisions of

laws and regulations, noncompliance with which could have a direct and material effect

on the determination of custodial schedule amounts. Providing an opinion on compliance

with laws and regulations was not an objective of our audit and, accordingly, we do not

express such an opinion.

Results of Audits

Opinion on the Schedule

In our opinion, the Schedule presents fairly, in all material respects, the United States’ gold 

and silver reserves in the custody of the U.S. Mint as of September 30, 2001 and 2000,

in conformity with accounting principles generally accepted in the United States of America.

Internal Control

Internal control is a process, effected by the U.S. Mint’s management and other personnel,

designed to provide reasonable assurance that the following objectives are met:

• Reliability of financial reporting — transactions are properly recorded, processed, and 

summarized to permit the preparation of the Schedule for the fiscal year ended

September 30, 2001 in accordance with accounting principles generally accepted in

the United States of America, and the safeguarding of assets against loss from unauthorized

acquisition, use, or disposition; and

• Compliance with applicable laws and regulations — transactions for the fiscal year

ended September 30, 2001 are executed in accordance with laws and regulations

that could have a direct and material effect on the Schedule.

Because of limitations inherent in any internal control, errors or fraud may occur and not be

detected. Also, projection of any evaluation of internal control to future periods is subject

to the risk that internal control may become inadequate because of changes in conditions

or that the effectiveness of the design and operation of policies and procedures may deteriorate.

Our consideration of internal control would not necessarily disclose all matters in the intern a l

control that might be reportable conditions. As defined in OMB Bulletin Number 01- 02,
62

U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Audit Requirements for Federal Financial Statements (OMB Bulletin No. 01-02), reportable

conditions are matters coming to our attention that, in our judgment, should be communicated

because they represent significant deficiencies in the design or operation of internal control

that could adversely affect the Mint’s ability to meet the internal control objectives as

defined above. Material weaknesses are reportable conditions in which the design or

operation of the internal control does not reduce to a relatively low level the risk that errors,

fraud, or noncompliance in amounts that would be material in relation to the Schedule

being audited may occur and not be detected within a timely period by employees in the

normal course of performing their assigned functions. We noted no matters, nor were any

brought to our attention, involving the i n t e rnal control and its operation that we consider to

be material weaknesses as defined above.

Compliance with Laws and Regulations

The results of our tests of compliance in fiscal year 2001 with the laws and regulations 

disclosed no instances of noncompliance that are required to be reported under G o v e rn m e n t

Auditing Standards or OMB Bulletin No. 01-02.

This report is intended solely for the information and use of the management of the U.S. Mint,

the U.S. Department of the Treasur y, OMB, the Congress, and Urbach Kahn & Werlin LLP,

and is not intended to be and should not be used by anyone other than these specified

parties. However, this report is available to the public as a matter of public record.

William H. Pugh

Deputy Assistant Inspector General for 

Financial Management and

Information Technology Audits

January 18, 2002
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 63

Circulating Coins of the United States

United States Mint Proof Set ® and 50 State Quarters Proof SetTM

*

*

*Golden Dollar Obverse ©1999, the United States Mint. All rights reserved.
64 U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

United States Mint Uncirculated Coin Set ®

United States Mint Silver Proof SetTM

*

*

*Golden Dollar Obverse ©1999, the United States Mint. All rights reserved.
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 65

American Eagle Gold Proof Coins

American Eagle Platinum Proof Coins

American Eagle Silver Proof Coin
Capitol Visitors Center Commemorative Coins

American Buffalo Commemorative Coin

66 U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 67

American Eagle Gold Bullion Coins

American Eagle Platinum Bullion Coins

American Eagle Silver Bullion Coin
68 U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Congressional Medals 

PEANUTS characters ©UFS, Inc.
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 69

Congressional Medals 
70 U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

United States Mint Medals 
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 71

Coin Specifications

DENOMINATION CENT NICKEL DIME HALF DOLLAR DOLLAR NEW YORK NORTH CAROLINA RHODE ISLAND VERMONT KENTUCKY

QUARTER QUARTER QUARTER QUARTER QUARTER

MINT San Francisco San Francisco San Francisco San Francisco San Francisco San Francisco San Francisco San Francisco San Francisco San Francisco

MINT MARK “S” “S” “S” “S” “S” “S” “S” “S” “S” “S”

OBVERSE Lincoln Jefferson Roosevelt Kennedy Sacagawea and Washington Washington Washington Washington Washington

her Infant Son

DESIGN/ V.D. Brenner Felix Schlag John R. Sinnock Gilroy Roberts Glenna Goodacre John Flanagan John Flanagan John Flanagan John Flanagan John Flanagan

ENGRAVED BY William Cousins William Cousins William Cousins William Cousins William Cousins

REVERSE Lincoln Memorial Monticello Torch, Olive Branch, Heraldic Eagle Eagle in Flight Statue of Liberty, “First Flight” Vintage Sailboat, Maple Trees, Federal Hill,

Oak Branch based on “Gateway to “The Ocean State” Camel’s Hump “My Old 

Presidential Freedom” Mountain, Kentucky 

Coat of Arms “Freedom and Home”

Unity”

DESIGN/ Frank Gasparro Felix Schlag John R. Sinnock Frank Gasparro Thomas D. Rogers Al Maletsky John Mercanti Thomas D. Rogers T. James Ferrell T. James Ferrell

ENGRAVEDBY

COMPOSITION Copper-Plated 25% Nickel Copper Nickel Clad Copper Nickel Clad Manganese Brass Copper Nickel Clad Copper Nickel Clad Copper Nickel Clad Copper Nickel Clad Copper Nickel Clad

Zinc Balance Cu 8.33% Ni 8.33% Ni Clad 8.33% Ni 8.33% Ni 8.33% Ni 8.33% Ni 8.33% Ni

2.5% Cu Balance Cu Balance Cu 6% Zn, 3.5% Mn, Balance Cu Balance Cu Balance Cu Balance Cu Balance Cu

Balance Zn 2% Ni

Balance Cu

STANDARD 2.500 grams 5.000 grams 2.268 grams 11.340 grams 8.100 grams 5.670 grams 5.670 grams 5.670 grams 5.670 grams 5.670 grams

WEIGHT

STANDARD 0.750 in 0.835 in 0.705 in 1.205 in 1.043 in 0.955 in 0.955 in 0.955 in 0.955 in 0.955 in

DIAMETER 19.1 mm 21.2 mm 17.9 mm 30.61 mm 26.49 mm 24.3 mm 24.3 mm 24.3 mm 24.3 mm 24.3 mm

EDGE Plain Plain Reeded Reeded Plain Reeded Reeded Reeded Reeded Reeded

2001 UNITED STATES MINT PROOF SET ®

DENOMINATION CENT NICKEL DIME HALF DOLLAR DOLLAR NEW YORK NORTH CAROLINA RHODE ISLAND VERMONT KENTUCKY

QUARTER QUARTER QUARTER QUARTER QUARTER

MINT San Francisco San Francisco San Francisco San Francisco San Francisco San Francisco San Francisco San Francisco San Francisco San Francisco

MINT MARK “S” “S” “S” “S” “S” “S” “S” “S” “S” “S”

OBVERSE Lincoln Jefferson Roosevelt Kennedy Sacagawea and Washington Washington Washington Washington Washington

her Infant Son

DESIGN/ V.D. Brenner Felix Schlag John R. Sinnock Gilroy Roberts Glenna Goodacre John Flanagan John Flanagan John Flanagan John Flanagan John Flanagan

ENGRAVED BY William Cousins William Cousins William Cousins William Cousins William Cousins

REVERSE Lincoln Memorial Monticello Torch, Olive Branch, Heraldic Eagle Eagle in Flight Statue of Liberty, “First Flight” Vintage Sailboat, Maple Trees, Federal Hill,

Oak Branch based on “Gateway to “The Ocean State” Camel’s Hump “My Old 

Presidential Freedom” Mountain, Kentucky 

Coat of Arms “Freedom and Home”

Unity”

DESIGN/ Frank Gasparro Felix Schlag John R. Sinnock Frank Gasparro Thomas D. Rogers Al Maletsky John Mercanti Thomas D. Rogers T. James Ferrell T. James Ferrell

ENGRAVEDBY

COMPOSITION Copper-Plated 25% Nickel Coin Silver Coin Silver Manganese Brass Coin Silver Coin Silver Coin Silver Coin Silver Coin Silver

Zinc Balance Cu 90% Ag 90% Ag Clad 90% Ag 90% Ag 90% Ag 90% Ag 90% Ag

2.5% Cu 10% Cu 10% Cu 6% Zn, 3.5% Mn, Balance Cu 10% Cu 10% Cu 10% Cu 10% Cu

Balance Zn 2% Ni

Balance Cu

STANDARD 2.500 grams 5.000 grams 2.500 grams 12.500 grams 8.100 grams 6.250 grams 6.250 grams 6.250 grams 6.250 grams 6.250 grams

WEIGHT

STANDARD 0.750 in 0.835 in 0.705 in 1.205 in 1.043 in 0.955 in 0.955 in 0.955 in 0.955 in 0.955 in

DIAMETER 19.1 mm 21.2 mm 17.9 mm 30.61 mm 26.49 mm 24.3 mm 24.3 mm 24.3 mm 24.3 mm 24.3 mm

EDGE Plain Plain Reeded Reeded Plain Reeded Reeded Reeded Reeded Reeded

2001 UNITED STATES MINT SILVER PROOF SET®
72 U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Coin Specifications

The limited edition of 50,000 American

Buffalo Coin & Currency Sets sold out 

in only five days. The set contained 

an uncirculated American Buffalo

Commemorative Coin, a mint condition

1987 10¢ Red Cloud United States 

Postage Stamp, a mint condition 

2001 21¢ Bison United States Postage

Stamp, a Series 1899 $5 Indian Chief

Silver Certificate replica and an informative

booklet about the history of Native

Americans and buffalo on United States

postage stamps and coins.

MINT MINT MARK CONDITION WEIGHT DIAMETER COMPOSITION MINTAGE LIMIT

Philadelphia “P” Proof 26.73 grams 1.500 (±0.003) in 90% Silver 500,000

Denver “D” Uncirculated minimum or38.10 (±0.08)mm 10% Alloy (all options)

Designs: Based on the original Buffalo nickel, as designed by James Earle Fraser and minted from 1913 through 1938.

Obverse: Portrays a profile representation of a Native American.

Reverse: A representation of an American Buffalo (also known as a bison).

AMERICAN BUFFALO COMMEMORATIVE SILVER DOLLARS

DENOMINATION CENT NICKEL DIME HALF DOLLAR DOLLAR NEW YORK NORTH CAROLINA RHODE ISLAND VERMONT KENTUCKY

QUARTER QUARTER QUARTER QUARTER QUARTER

OBVERSE Lincoln Jefferson Roosevelt Kennedy Sacagawea and Washington Washington Washington Washington Washington

her Infant Son

DESIGN/ V.D. Brenner Felix Schlag John R. Sinnock Gilroy Roberts Glenna Goodacre John Flanagan John Flanagan John Flanagan John Flanagan John Flanagan

ENGRAVED BY William Cousins William Cousins William Cousins William Cousins William Cousins

REVERSE Lincoln Memorial Monticello Torch, Olive Branch, Heraldic Eagle Eagle in Flight Statue of Liberty, “First Flight” Vintage Sailboat, Maple Trees, Federal Hill,

Oak Branch based on “Gateway to “The Ocean State” Camel’s Hump “My Old 

Presidential Freedom” Mountain, Kentucky 

Coat of Arms “Freedom and Home”

Unity”

DESIGN/ Frank Gasparro Felix Schlag John R. Sinnock Frank Gasparro Thomas D. Rogers Al Maletsky John Mercanti Thomas D. Rogers T. James Ferrell T. James Ferrell

ENGRAVEDBY

COMPOSITION Copper-Plated 25% Nickel Copper Nickel Clad Copper Nickel Clad Manganese Brass Copper Nickel Clad Copper Nickel Clad Copper Nickel Clad Copper Nickel Clad Copper Nickel Clad

Zinc Balance Cu 8.33% Ni 8.33% Ni Clad 8.33% Ni 8.33% Ni 8.33% Ni 8.33% Ni 8.33% Ni

2.5% Cu Balance Cu Balance Cu 6% Zn, 3.5% Mn, Balance Cu Balance Cu Balance Cu Balance Cu Balance Cu

Balance Zn 2% Ni

Balance Cu

STANDARD 2.500 grams 5.000 grams 2.268 grams 11.340 grams 8.100 grams 5.670 grams 5.670 grams 5.670 grams 5.670 grams 5.670 grams

WEIGHT

STANDARD 0.750 in 0.835 in 0.705 in 1.205 in 1.043 in 0.955 in 0.955 in 0.955 in 0.955 in 0.955 in

DIAMETER 19.1 mm 21.2 mm 17.9 mm 30.61 mm 26.49 mm 24.3 mm 24.3 mm 24.3 mm 24.3 mm 24.3 mm

EDGE Plain Plain Reeded Reeded Plain Reeded Reeded Reeded Reeded Reeded

2001 UNITED STATES MINT UNCIRCULATED COIN SET®

Note: Set includes all ten coins from Philadelphia Mint Facility (“P”) and all ten coins from Denver Mint Facility (“D”).
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 73

DENOMINATION ONE OUNCE, FIFTY DOLLAR COIN HALF OUNCE, TWENTY-FIVE DOLLAR COIN QUARTER OUNCE, TEN DOLLAR COIN TENTH OUNCE, FIVE DOLLAR COIN 

MINT West Point West Point West Point West point

MINT MARK “W” “W” “W” “W”

CONDITION Proof Proof Proof Proof

OBVERSE A version of Augustus Saint-Gaudens’ A version of Augustus Saint-Gaudens’ A version of Augustus Saint-Gaudens’ A version of Augustus Saint-Gaudens’

full-length figure of Liberty with flowing full-length figure of Liberty with flowing full-length figure of Liberty with flowing full-length figure of Liberty with flowing

hair, holding a torch in her right hand and an hair, holding a torch in her right hand and an hair, holding a torch in her right hand and an hair, holding a torch in her right hand and an

olive branch in her left. olive branch in her left. olive branch in her left. olive branch in her left.

DESIGN BY Augustus Saint-Gaudens Augustus Saint-Gaudens Augustus Saint-Gaudens Augustus Saint-Gaudens

REVERSE Male eagle carrying an olive branch flying Male eagle carrying an olive branch flying Male eagle carrying an olive branch flying Male eagle carrying an olive branch flying

above a nest containing female eagle above a nest containing female eagle above a nest containing female eagle above a nest containing female eagle

and hatchlings. and hatchlings. and hatchlings. and hatchlings.

DESIGN BY Miley Busiek Miley Busiek Miley Busiek Miley Busiek

COMPOSITION 91.67% Gold 91.67% Gold 91.67% Gold 91.67% Gold

3.0% Silver, Balance Copper 3.0% Silver, Balance Copper 3.0% Silver, Balance Copper 3.0% Silver, Balance Copper

WEIGHT 1.0909 troy oz. 0.5455 troy oz. 0.2727 troy oz. 0.1091 troy oz.

33.931 grams 16.966 grams 8.483 grams 3.393 grams

DIAMETER 1.287 in 1.063 in 0.866 in 0.650 in

32.70 mm 27.00 mm 22.00 mm 16.50 mm

THICKNESS 0.118 in 0.087 in 0.070 in 0.049 in

3.00 mm 2.20 mm 1.78 mm 1.25 mm

CONTENT 1.000 troy oz. Gold 0.5000 troy oz. Gold 0.2500 troy oz. Gold 0.1000 troy oz. Gold

31.1035 grams 15.553 grams 7.776 grams 3.110 grams

2001 AMERICAN EAGLE PROOF GOLD COINS SPECIFICATIONS

DENOMINATION ONE OUNCE, FIFTY DOLLAR COIN HALF OUNCE, TWENTY-FIVE DOLLAR COIN QUARTER OUNCE, TEN DOLLAR COIN TENTH OUNCE, FIVE DOLLAR COIN 

MINT West Point West Point West Point West point

CONDITION Uncirculated Uncirculated Uncirculated Uncirculated

OBVERSE A version of Augustus Saint-Gaudens’ A version of Augustus Saint-Gaudens’ A version of Augustus Saint-Gaudens’ A version of Augustus Saint-Gaudens’

full-length figure of Liberty with flowing full-length figure of Liberty with flowing full-length figure of Liberty with flowing full-length figure of Liberty with flowing

hair, holding a torch in her right hand and an hair, holding a torch in her right hand and an hair, holding a torch in her right hand and an hair, holding a torch in her right hand and an

olive branch in her left. olive branch in her left. olive branch in her left. olive branch in her left.

DESIGN BY Augustus Saint-Gaudens Augustus Saint-Gaudens Augustus Saint-Gaudens Augustus Saint-Gaudens

REVERSE Male eagle carrying an olive branch flying Male eagle carrying an olive branch flying Male eagle carrying an olive branch flying Male eagle carrying an olive branch flying

above a nest containing female eagle above a nest containing female eagle above a nest containing female eagle above a nest containing female eagle

and hatchlings. and hatchlings. and hatchlings. and hatchlings.

DESIGN BY Miley Busiek Miley Busiek Miley Busiek Miley Busiek

COMPOSITION 91.67% Gold 91.67% Gold 91.67% Gold 91.67% Gold

3.0% Silver, Balance Copper 3.0% Silver, Balance Copper 3.0% Silver, Balance Copper 3.0% Silver, Balance Copper

WEIGHT 1.0909 troy oz. 0.5454 troy oz. 0.2727 troy oz. 0.1091 troy oz.

33.930 grams 16.965 grams 8.483 grams 3.393 grams

DIAMETER 1.287 in 1.063 in 0.866 in 0.650 in

32.70 mm 27.00 mm 22.00 mm 16.50 mm

THICKNESS 0.113 in 0.085 in 0.070 in 0.049 in

2.87 mm 2.15 mm 1.78 mm 1.26 mm

CONTENT 1.000 troy oz. Gold 0.5000 troy oz. Gold 0.2500 troy oz. Gold 0.1000 troy oz. Gold

31.1035 grams 15.5517 grams 7.7759 grams 3.1103 grams

2001 AMERICAN EAGLE GOLD BULLION COINS SPECIFICATIONS

Coin Specifications
74 U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Coin Specifications

DENOMINATION ONE OUNCE, FIFTY DOLLAR COIN HALF OUNCE, TWENTY-FIVE DOLLAR COIN QUARTER OUNCE, TEN DOLLAR COIN TENTH OUNCE, FIVE DOLLAR COIN 

MINT West Point West Point West Point West Point

MINT MARK “W” “W” “W” “W”

CONDITION Proof Proof Proof Proof

OBVERSE “Portrait of Liberty.” Liberty looks to the future “Portrait of Liberty.” Liberty looks to the future “Portrait of Liberty.” Liberty looks to the future “Portrait of Liberty.” Liberty looks to the future

in this modern interpretation of an American in this modern interpretation of an American in this modern interpretation of an American in this modern interpretation of an American 

icon, the Statue of Liberty. icon, the Statue of Liberty. icon, the Statue of Liberty. icon, the Statue of Liberty.

DESIGN BY John Mercanti John Mercanti John Mercanti John Mercanti

REVERSE “Eagle Above America’s Southwest.” “Eagle Above America’s Southwest.” “Eagle Above America’s Southwest.” “Eagle Above America’s Southwest.” 

Featured are the giant Saguaro cacti of the Featured are the giant Saguaro cacti of the Featured are the giant Saguaro cacti of the Featured are the giant Saguaro cacti of the

American Southwest. American Southwest. American Southwest. American Southwest.

DESIGN BY Thomas D. Rogers Thomas D. Rogers Thomas D. Rogers Thomas D. Rogers

COMPOSITION 99.95% Platinum 99.95% Platinum 99.95% Platinum 99.95% Platinum

WEIGHT 1.0005 troy oz. 0.5003 troy oz. 0.2501 troy oz. 0.1001 troy oz.

31.120 grams 15.560 grams 7.780 grams 3.112 grams

DIAMETER 1.29 in 1.06 in 0.866 in 0.650 in

32.7 mm 27.0 mm 22.0 mm 16.5 mm

THICKNESS 0.096 in 0.071 in 0.054 in 0.041 in

2.43 mm 1.80 mm 1.37 mm 1.05 mm

CONTENT 1.0000 troy oz. Pt 0.5000 troy oz. Pt 0.2500 troy oz. Pt 0.1000 troy oz. Pt

31.103 grams 15.552 grams 7.776 grams 3.110 grams

MINTAGE LIMIT 14,000 (packaged individually and in sets) 13,000 (packaged individually and in sets) 15,000 (packaged individually and in sets) 25,000 (packaged individually and in sets)

2001 AMERICAN EAGLE PLATINUM PROOF COINS

DENOMINATION ONE OUNCE, FIFTY DOLLAR COIN HALF OUNCE, TWENTY-FIVE DOLLAR COIN QUARTER OUNCE, TEN DOLLAR COIN TENTH OUNCE, FIVE DOLLAR COIN 

MINT West Point West Point West Point West Point

MINT MARK (None) (None) (None) (None)

OBVERSE “Portrait of Liberty.” Liberty looks to the future “Portrait of Liberty.” Liberty looks to the future “Portrait of Liberty.” Liberty looks to the future “Portrait of Liberty.” Liberty looks to the future

in this modern interpretation of an American in this modern interpretation of an American in this modern interpretation of an American in this modern interpretation of an American 

icon, the Statue of Liberty. icon, the Statue of Liberty. icon, the Statue of Liberty. icon, the Statue of Liberty.

DESIGN BY John Mercanti John Mercanti John Mercanti John Mercanti

REVERSE “Eagle Soaring Above America” “Eagle Soaring Above America” “Eagle Soaring Above America” “Eagle Soaring Above America”

DESIGN BY Thomas D. Rogers Thomas D. Rogers Thomas D. Rogers Thomas D. Rogers

COMPOSITION 99.95% Platinum 99.95% Platinum 99.95% Platinum 99.95% Platinum

WEIGHT 1.0005 troy oz. 0.5003 troy oz. 0.2501 troy oz. 0.1001 troy oz.

31.120 grams 15.560 grams 7.780 grams 3.112 grams

DIAMETER 1.29 in 1.06 in 0.866 in 0.650 in

32.7 mm 27.0 mm 22.0 mm 16.5 mm

THICKNESS 0.094 in 0.069 in 0.052 in 0.037 in

2.38 mm 1.75 mm 1.32 mm 0.95 mm

CONTENT 1.0000 troy oz. Pt 0.5000 troy oz. Pt 0.2500 troy oz. Pt 0.1000 troy oz. Pt

31.103 grams 15.552 grams 7.776 grams 3.110 grams

2001 AMERICAN EAGLE PLATINUM BULLION COINS
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 75

Coin Specifications

The Official United

States Mint 50

State Quarters®

Collector's Map

enables collectors,

children and adults

alike, to collect all

50 quarters over

the 10-year period

of issuance.

DENOMINATION PROOF GOLD UNCIRCULATED GOLD PROOF SILVER DOLLAR UNCIRCULATED PROOF CLAD UNCIRCULATED CLAD 

FIVE DOLLAR FIVE DOLLAR SILVER DOLLAR HALF DOLLAR HALF DOLLAR

MINT West Point West Point Philadelphia Philadelphia Philadelphia Philadelphia

MINT MARK “W” “W” “P” “P” “P” “P”

CONDITION Proof Uncirculated Proof Uncirculated Proof Uncirculated

OBVERSE The Corinthian Column The Corinthian Column Old Capitol Building Old Capitol Building 50 Stars enclose the current 50 Stars enclose the current

in 1800 with new in 1800 with new Capitol dome profile with the Capitol dome profile with the

Capitol in the Capitol in the 1800 portion detailed. A horse 1800 portion detailed. A horse 

background background and carriage in the foreground. and carriage in the foreground.

DESIGN BY Elizabeth Jones Elizabeth Jones Marika Somogyi Marika Somogyi Dean McMullen Dean McMullen

REVERSE North Wing of the Capitol North Wing of the Capitol Contemporary Contemporary 16 Stars around the center 16 Stars around the center

interpretation of the interpretation of the with the inscriptions “1800 with the inscriptions “1800

U.S. Double Eagle U.S. Double Eagle 6th Congress, 32 Senators” 6th Congress, 32 Senators”

and “House 106 Members” and “House 106 Members”

DESIGN BY Elizabeth Jones Elizabeth Jones John Mercanti John Mercanti Alex Shagin and Alex Shagin and

Marcel Jovine Marcel Jovine

COMPOSITION 90% Gold 90% Gold 90% Silver 90% Silver 92% Copper 92% Copper

6% Silver (±.3%) 6% Silver (±.3%) Balance Copper Balance Copper 8% Nickel 8% Nickel

Balance Copper Balance Copper

WEIGHT 8.359 grams minimum 8.359 grams minimum 26.730 grams minimum 26.730 grams minimum 11.340 (±0.454) grams 11.340 (±0.454) grams

DIAMETER 0.850 (±0.003) in 0.850 (±0.003) in 1.500 (±0.003) in 1.500 (±0.003) in 1.205 (±0.002) in 1.205 (±0.002) in

21.59 (±0.08) mm 21.59 (±0.08) mm 38.10 (±0.08) mm 38.10 (±0.08) mm 30.61 (±0.05) mm 30.61 (±0.05) mm

MINTAGE LIMIT 100,000 (all options) 100,000 (all options) 500,000 (all options) 500,000 (all options) 750,000 (all options) 750,000 (all options)

2001 CAPITOL VISITOR CENTER COMMEMORATIVE PROOF AND UNCIRCULATED COINS

MINT MINT MARK CONDITION WEIGHT DIAMETER THICKNESS COMPOSITION CONTENT MINTAGE LIMIT

West Point “W” Proof 1.0000 troy oz. 1.60 in 0.121 in 99.9% Silver 0.999 troy oz.S i l v e r 7 5 0 , 0 0 0

31.103 grams 40.6mm 3.06 mm 31.072 grams

Balance Cu

Design: Obverse: Adolph A. Weinman’s full-length figure of Liberty in full stride, enveloped in folds of the flag, with her right hand extended and 

branches of laurel and oak in her left.

Reverse: Heraldic eagle with shield, an olive branch in the right talon and arrows in the left.

Designer:Obverse: Adolph A. Weinman

Reverse: John Mercanti

2001 AMERICAN EAGLE SILVER PROOFONE DOLLAR

MINT MINT MARK WEIGHT DIAMETER THICKNESS COMPOSITION CONTENT

West Point (None) 1.0000 troy oz. 1.60 in 0.118 in 99.9% Silver 0.999 troy oz.S i l v e r

31.103 grams 40.6mm 2.98 mm 31.072 grams

Balance Cu

Design: Obverse: Adolph A. Weinman’s full-length figure of Liberty in full stride, enveloped in folds of the flag, with her right hand extended and 

branches of laurel and oak in her left.

Reverse: Heraldic eagle with shield, an olive branch in the right talon and arrows in the left.

Designer:Obverse: Adolph A. Weinman

Reverse: John Mercanti

2001 AMERICAN EAGLE SILVER BULLIONONE DOLLAR
76 U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Coin Specifications

The annual United States Mint Silver Proof Set

TM

features the dime, quarters and half dollar in 

90% silver, also known as “coin silver.”

The annual United States Mint Proof Set

®

is 

the United States Mint's best-selling 

numismatic coin product.

The annual United States Mint 

50 State Quarters Proof Set

TM features the 

five quarters honoring different states each year.

The annual United States Mint Uncirculated 

Coin Set

®

is the staple of the serious collector 

of United States coins.

MEDAL POPE JOHN PAUL II CHARLES M. SCHULZ JOHN CARDINAL O’CONNOR NAVAJO CODE TALKERS 

MINT Philadelphia Philadelphia Philadelphia Philadelphia

OBVERSE Portrait of Portrait of Portrait of Two Marine Navajo Code Talkers

Pope John Paul II Charles M. Schulz John Cardinal O’Connor communicating a radio message

DESIGN BY T. James Ferrell Donna Weaver John Mercanti Al Maletsky

REVERSE Congressional Seal “Peanuts” Characters Seal of the Archbishop Navajo Code Talkers emblem

of New York and the U.S. Marine Corps

Eagle, Globe and Anchor

DESIGN BY Edgar Steever Donna Weaver T. James Ferrell T. James Ferrell

COMPOSITION 90% Copper, 10% Zinc 90% Copper, 10% Zinc 90% Copper, 10% Zinc 90% Copper, 10% Zinc

WEIGHT .6300 lb. and 6300 lb. and .6300 lb. and .6300 lb. and

.0600 lb. .0600 lb. .0600 lb. .0600 lb. 

DIAMETER 3 in 3 in 3 in 3 in

1.5 in 1.5 in 1.5 in 1.5 in

2001 CONGRESSIONAL MEDALS

MEDAL SECRETARY OF THE TREASURY DIRECTOR OF THE MINT

LAWRENCE H. SUMMERS JAY W. JOHNSON

MINT Philadelphia Philadelphia

OBVERSE Portrait of Portrait of

Lawrence H. Summers Jay W. Johnson

DESIGN BY Al Maletsky T. James Ferrell

REVERSE Laurel Leaves, Treasury Seal, Treasury Seal,

Treasury Building and Congressional Seal and

globe, representing his the 8th Congressional District

commitment to internationalism of Wisconsin

DESIGN BY Donna Weaver Thomas D. Rogers

COMPOSITION 90% Copper, 10% Zinc 90% Copper, 10% Zinc

WEIGHT .6300 lb. .6300 lb.

DIAMETER 3 in 3 in

2001 UNITED STATES MINT MEDALS
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 77

Coins Minted

DENOMINATION PHILADELPHIA DENVER TOTAL

LINCOLN CENTS 5,503,200,000 8,774,220,000 14,277,420,000

JEFFERSON NICKELS 846,240,000 1,509,520,000 2,355,760,000

ROOSEVELT DIMES 1,842,500,000 1,818,700,000 3,661,200,000

50 STATE QUARTERS 3,665,416,000 2,805,516,000 6,470,932,000

KENNEDY HALF DOLLARS 22,600,000 19,466,000 42,066,000

GOLDEN DOLLARS 767,140,000 518,916,000 1,286,056,000

TOTAL 12,647,096,000 15,446,338,000 28,093,434,000

CY2000 STATE QUARTER MINTAGE (IN PIECES)

STATE QUARTER PHILADELPHIA DENVER TOTAL

MASSACHUSETTS 628,600,000 535,184,000 1,163,784,000

MARYLAND 678,200,000 556,532,000 1,234,732,000

SOUTH CAROLINA 742,576,000 566,208,000 1,308,784,000

NEW HAMPSHIRE 673,040,000 495,976,000 1,169,016,000

VIRGINIA 943,000,000 651,616,000 1,594,616,000

TOTAL 3,665,416,000 2,805,516,000 6,470,932,000

CY2000 U.S. CIRCULATING COIN MINTAGE (IN PIECES)

JANUARY - DECEMBER 2000

DENOMINATION PHILADELPHIA DENVER TOTAL

LINCOLN CENTS 4,184,000,000 4,654,590,000 8,838,590,000

JEFFERSON NICKELS 575,384,000 534,560,000 1,109,944,000

ROOSEVELT DIMES 1,205,090,000 1,248,800,000 2,453,890,000

50 STATE QUARTERS 2,129,200,000 1,954,020,000 4,083,220,000

KENNEDY HALF DOLLARS 20,000,000 19,504,000 39,504,000

GOLDEN DOLLARS 44,968,000 70,939,500 115,907,500

TOTAL 8,158,642,000 8,482,413,500 16,641,055,500

CY2001 STATE QUARTER MINTAGE (IN PIECES)*

STATE QUARTER** PHILADELPHIA DENVER TOTAL***

NEW YORK 655,400,000 619,640,000 1,275,040,000

NORTH CAROLINA 627,600,000 427,876,000 1,055,476,000

RHODE ISLAND 423,000,000 447,100,000 870,100,000

VERMONT 423,400,000 459,404,000 882,804,000

KENTUCKY — — —

TOTAL 2,129,400,000 1,954,020,000 4,083,420,000

* These updates are estimated and not final mintage numbers.

** Production numbers are published only after completion of a given state quarter program.

* * * State quarter total will not match the total in quarterly mintage update table. The latter includes production numbers for partial as well as completed state quarter programs

as of the end of the period being reported.

CY2001 U.S. CIRCULATING COIN MINTAGE (IN PIECES)

JANUARY - SEPTEMBER 2001*
78 U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Coins Issued

2000 United States Mint Annual Proof Set (10 coins) as of 09/30/01 3,082,483 

2000 United States Mint Annual 50 State Quarters Proof Set (5 coins) closed 9/30/01 995,803 

2000 United States Mint Annual Uncirculated Coin Set (20 coins) closed 9/30/01 1,490,160 

2000 United States Mint AnnualSilver Proof Set (10 coins) closed 9/30/01 965,421 

2000 American Eagle Gold Proof Program closed 9/30/01

One-Ounce Coins 33,007 

Half-Ounce Coins 32,028 

Quarter-Ounce Coins 36,036 

Tenth-Ounce Coins 49,971 

Total 151,042 

2000 American Eagle Platinum Proof Program closed 9/30/01

One-Ounce Coins 12,453 

Half-Ounce Coins 11,049 

Quarter-Ounce Coins 11,995 

Tenth-Ounce Coins 15,651 

Total 51,148 

2000 American Eagle Silver Proof Program closed 9/30/01

One-Ounce Coins 600,743 

2000 Library of Congress Bicentennial Commemmorative Coin Program closed 9/30/01

Silver $1 Proof Coins 198,503 

Silver $1 Uncirculated Coins 53,264 

BiMetallic $10 Proof Coins 27,445 

Bimetallic $10 Uncirculated Coins 7,261 

Total 286,473 

2000 Leif Erikson Millenium Commemmorative Coin Program closed 9/30/01

Silver $1 Proof Coins - USA 144,752 

Silver $1 Uncirculated Coins - USA 28,152 

Silver $1 Proof Coins - Iceland 102,083 

Total 274,987 

2000 American Eagle Gold Bullion ongoing as of 09/30/01

One-Ounce Coins 213,525 

Half-Ounce Coins 61,025 

Quarter-Ounce Coins 99,614 

Tenth-Ounce Coins 385,096 

Total 759,260 

2000 American Eagle Platinum Bullion closed 09/30/01

One-Ounce Coins 9,503 

Half-Ounce Coins 18,806 

Quarter-Ounce Coins 19,738 

Tenth-Ounce Coins 33,876 

Total 81,923 

2000 American Eagle Silver Bullion closed 09/30/01

One-Ounce Coins 9,197,650 

TOTAL SHIPPED 17,937,093

2000 DATED NUMISMATIC COINS

FY 2000 AND FY 2001 • OCT 1999 TO SEPT 2001
U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T 79

Coins Issued

2001 United States Mint Annual Proof Set (10 coins) ongoing as of 09/30/01 1,763,120 

2001 United States Mint Annual 50 State Quarters Proof Set (5 coins) ongoing as of 09/30/01 606,688 

2001 United States Mint Annual Uncirculated Coin Set (20 coins) ongoing as of 09/30/01 773,128 

2001 United States Mint AnnualSilver Proof Set (10 coins) ongoing as of 09/30/01 317,142 

2001 American Eagle Gold Proof Program ongoing as of 09/30/01

One-Ounce Coins 19,601 

Half-Ounce Coins 18,009 

Quarter-Ounce Coins 19,732 

Tenth-Ounce Coins 28,809 

Total 86,151 

2001 American Eagle Platinum Proof Program ongoing as of 09/30/01

One-Ounce Coins 6,238 

Half-Ounce Coins 5,901 

Quarter-Ounce Coins 6,222 

Tenth-Ounce Coins 8,500 

Total 26,861 

2001 American Eagle Silver Proof Program ongoing as of 09/30/01

One-Ounce Coins 655,478 

2001 American Buffalo Commemorative Coin Program ongoing as of 09/30/01

Silver $1 Proof Coins 270,985 

Silver $1 Uncirculated Coins 225,203 

Total 496,188 

2001 Capitol Visitor Center Commemorative Coin Program ongoing as of 09/30/01

Gold $5 Proof Coins 24,379 

Gold $5 Uncirculated Coins 5,063 

Silver $1 Proof Coins 124,023 

Silver $1 Uncirculated Coins 30,633 

Clad $.50 Proof Coins 70,430 

Clad $.50 Uncirculated Coins 64,726 

Total 319,254 

2001 American Eagle Gold Bullion ongoing as of 09/30/01

One-Ounce Coins 85,570 

Half-Ounce Coins 39,047 

Quarter-Ounce Coins 51,245 

Tenth-Ounce Coins 213,912 

Total 389,774 

2001 American Eagle Platinum Bullion ongoing as of 09/30/01

One-Ounce Coins 8,070 

Half-Ounce Coins 10,010 

Quarter-Ounce Coins 16,810 

Tenth-Ounce Coins 24,662 

Total 59,552 

2001 American Eagle Silver Bullion ongoing as of 09/30/01

One-Ounce Coins 7,017,711 

TOTAL SHIPPED 12,511,047 

2001 DATED NUMISMATIC COINS

FY 2001 • OCT 2000 TO SEPT 2001
80 U N I T E D S T A T E S M I N T 2 0 0 1 A N N U A L R E P O R T

Notes