UNITED STATES MINT

2017 ANNUAL REPORT

3
1

Fiscal Year 2017 was a remarkable year for the United States Mint. In our day-to-day

operations, we produced more than 14 billion coins for use in commerce, over 24

million ounces of bullion and nearly 4 million units of numismatic products. On top

of that, the United States Mint Police protected and safeguarded all the assets

entrusted to us by the American people. We have fully and successfully executed

our mission for the citizens of the United States of America.

During FY 2017, we also engaged in activities that promoted our core values and

executed the elements of our strategic plan. The quality of our numismatic products

is clearly reflected in our Customer Satisfaction score of 91.7 percent. This score

represents all aspects of numismatic product line – from design and product

development and production, to order processing and fulfillment. Further, the Mint

achieved the status of being a top 100 e-commerce retailer according to Internet

Retailer – ranking 99th overall for North America, and 6th in the “specialty” category.

In addition, we fully met demand for our bullion products without putting any product

on allocation, and successfully inserted the new palladium product line into our bullion

product portfolio. We did an outstanding job in delivering all Federal Reserve Bank orders for circulating coins 

without straining our supply chain or production lines. Our ability to level load our production lines allowed us to 

meet the Federal Reserve Banks’ full demand for circulating coins with an on-time delivery mark of 100 percent.

In FY 2017, we focused on understanding the needs and concerns of both our internal and external customers, 

and laying the foundation for internal customer service to be a part of our daily interactions. Each Mint employee 

participated in new training on internal customer service. By working collaboratively, effectively, and responsively 

within the organization and providing knock-your-socks-off customer service to each other, we can maximize the 

value provided to our external customers. I am excited at the prospect of enriching our culture with enhanced 

customer service skills to meet the demands and challenges of our mission. 

Integrity is at the core of who we are and the mission we carry out. In conjunction with these important achievements, 

we continue to maintain the trust of the American Public, and ensure that we execute our mission with integrity. We 

continue to operate the Mint in a cost effective and efficient manner, and striving for diversity and inclusion in our 

workforce. Together we move forward as One Mint that values the contributions of each and every employee.

Finally, as we close our 225th year of service to the Nation, let us all pause and give due appreciation to the legacy 

of the many men and women who have proudly served the Mint throughout its history and played a role in shaping 

our culture and helping to ensure delivery of coins to the American people so that commerce across this great 

republic occurs seamlessly each and every day. They have our thanks and our pledge that we will continue to serve 

the public with the same zeal that they did.

Sincerely,

David Motl, Acting Deputy Director

ACTING DEPUTY DIRECTOR’S LETTER

David Motl

United States Mint

Acting Deputy Director
2

CELEBRATING 225 YEARS
3

It is the Mint’s privilege and honor to serve with the 44th Treasurer of the United

States, Jovita Carranza. After being appointed by President Donald J. Trump,

Jovita assumed the Office of the Treasurer on April 28, 2017. She brings an

impressive combination of both government and corporate experience to the

Treasury Department. We are indeed fortunate to have the opportunity to benefit

from her guidance and leadership. 

Jovita previously served as the Deputy Administrator for the United States Small

Business Administration from December 2006 to January 2009. Prior to her SBA

appointment, she had a distinguished career at United Parcel Service, where she

started as a part-time, night-shift box handler and worked her way up to become

the highest ranking Latina in company history, eventually attaining the position of 

president of Latin America and Caribbean operations. 

She is the recipient of numerous awards and honors, including “Woman of the Year” by Hispanic Business 

Magazine, “Woman of Distinction” by the American Association of University Women and NASPA Student Affairs 

Administrators in Higher Education, and she is an “Honorary Alumna” at Alverno College.

Welcome, Treasurer Carranza. The Mint is excited to have the opportunity to work with you in the upcoming years.

UNITED STATES MINT

WELCOMES JOVITA CARRANZA,

44TH TREASURER OF THE UNITED STATES

Jovita Carranza

44th Treasurer

of the United States
4

OUR MISSION

The United States Mint (Mint) enables America’s economic growth and stability by protecting assets entrusted to us 

and manufacturing coins and medals to facilitate national commerce.

OUR CORE VALUES 

The Mint is privileged to connect America through coins and medals, which reflect the remarkable history, values, 

culture, diversity, and natural beauty of our Nation. To maintain the Mint’s reputation as one of the finest mints

in the world, Mint employees are committed to undertaking their work according to the core values of service, 

quality, and integrity.

Established in 1792, the Mint is the world’s largest coin manufacturer. Since Fiscal Year (FY) 1996, the Mint has 

operated under the Public Enterprise Fund (PEF) (31 U.S.C. § 5136). The PEF enables the Mint to operate without 

an appropriation. The Mint generates revenue through the sale of circulating coins to the Federal Reserve Banks 

(FRB), numismatic products to the public, and bullion coins to authorized purchasers. Revenue in excess of amounts 

required by the PEF is transferred to the United States Treasury (Treasury) General Fund.

The Mint operates six facilities and employs nearly 1,700 employees across the United States. Each facility performs 

unique functions critical to our overall operations. Manufacturing facilities in Philadelphia and Denver produce coins 

of all denominations for circulation. Both facilities also produce dies for striking coins. All sculpting and engraving 

of coin and medal designs is performed in Philadelphia. Production of numismatic products, including bullion coins, 

is primarily performed in West Point. All four production facilities produce commemorative coins as authorized by 

Federal laws. The United States Bullion Depository at Fort Knox stores and safeguards United States gold bullion 

reserves. Administrative and oversight functions are performed at the Mint Headquarters in Washington, D.C.

ORGANIZATIONAL PROFILE

Seated Left to Right: Dennis O’Connor, Chief, Mint Police; Jean Gentry, Chief Counsel; DeAnna Wynn, Acting

Chief Information Officer; Randall Johnson, Denver Superintendent; Peggy Yauss, Acting Associate Director, Human

Capital Directorate; Thomas V. Johnson, Chief, Office of Corporate Communications; Marc Landry, Senior Advisor,

Numismatic and Bullion Division; April Stafford, Chief, Design Management

Standing Left to Right: Eric Anderson, Executive Secretary; Kristie McNally, Acting Associate Director/Chief Financial 

Officer; David Jacobs, San Francisco Superintendent; Ellen McCullom, West Point Superintendent; David Motl,

Acting Deputy Director; Deborah Hayes, Chief, Diversity Management and Civil Rights; B. B. Craig, Associate

Director, Environment, Safety and Health; Frank Goulart, Acting Associate Director, Manufacturing; David Croft,

Acting Chief Administrative Officer and Acting Philadelphia Superintendent
5

Organizational Profile (Unaudited) 4

The United States Mint at a Glance (Unaudited) 6

Management’s Discussion and Analysis (Unaudited) 8

Analysis of Systems, Controls and Legal Compliance (Unaudited) 26

Limitations of the Financial Statements (Unaudited) 27

Message from the Acting Chief Financial Officer (Unaudited) 28

Independent Auditors’ Report 30

Financial Statements 32

Notes to the Financial Statements 36

Required Supplementary Information (Unaudited) 54

Other Information (Unaudited) 55

Independent Auditors’ Report on Internal Control Over Financial Reporting 56

Independent Auditors’ Report on Compliance and Other Matters 58

Appendix I: FY 2017 Coin and Medal Products (Unaudited) 59

TABLE OF CONTENTS
6

THE UNITED STATES MINT AT A GLANCE

UNITED STATES MINT (MINT)

The men and women of the Mint 

manufacture and distribute circulating coins, 

precious metal and collectible coins, and 

national medals to meet the needs of the 

United States. The Mint has the following 

lines of operation: Circulating, Bullion,

and Numismatic.

CIRCULATING COINAGE

The Mint is the sole manufacturer of legal 

tender coinage in the United States.

The Mint’s highest priority is to

efficiently and effectively mint and issue

circulating coinage.

BULLION COINS

The Mint is the world’s largest producer of 

gold and silver bullion coins. The bullion 

coin program provides consumers a simple 

and tangible means to acquire precious 

metal coins. Investors purchase bullion coins 

for the intrinsic metal value and the United 

States Government’s guarantee of each 

coin’s metal weight, content, and purity.

NUMISMATIC PRODUCTS

The Mint prepares and distributes 

numismatic products for collectors and those 

who desire high-quality versions of coinage. 

Most of the Mint’s recurring products are 

required by Federal statute. Others are 

required by individual public laws.

SEIGNIORAGE AND NET INCOME

Seigniorage is the difference between the 

face value and cost of producing circulating 

coinage. The Mint transfers seigniorage to 

the Treasury General Fund to help finance 

national debt. Net income from bullion

and numismatic operations can also fund

Federal programs.

 Revenue (dollars in millions) Revenue by Line of Business (percent of total) 

Revenue (dollars in millions) Revenue by Denominaon (dollars in millions) 

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

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

Seigniorage and Net Income (dollars in millions, 

before protecon cost)

Seigniorage and Net Income by Line of Business

(dollars in millions, before protecon cost)

2,638.2 

3,602.5 3,693.3 

3,101.9 

4,335.0 

2013 2014 2015 2016 2017

871.8 

1,114.0 1,104.2 

783.0 

578.0 

2013 2014 2015 2016 2017

1,378.9 

2,126.1 2,085.3 

1,814.4

3,244.6

2013 2014 2015 2016 2017

387.5 413.0 453.2 

512.4 504.5 

2013 2014 2015 2016 2017

Circulang

33.0%

Bullion

52.3%

Numismac

14.7%

one-cent

$84.3

five-cent

$65.3

dime

$240.8

quarterdollar

$481.4

American

Eagle Gold

$694.9

American

Eagle Silver

$441.9

America the 

Beauful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

American

Eagle 

Palladium

$14.6

Gold & 

Planum

$216.2

Silver

$74.2

Annual Core Sets 

$41.8

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

Miscellaneous

$20.4

421.6 

668.7 668.5 

367.9

292.5 

2013 2014 2015 2016 2017

Circulang

$391.5

Bullion

$10.9

Numismac

$19.2

 Revenue (dollars in millions) Revenue by Line of Business (percent of total) 

Revenue (dollars in millions) Revenue by Denominaon (dollars in millions) 

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

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

Seigniorage and Net Income (dollars in millions, 

before protecon cost)

Seigniorage and Net Income by Line of Business

(dollars in millions, before protecon cost)

2,638.2 

3,602.5 3,693.3 

3,101.9 

4,335.0 

2013 2014 2015 2016 2017

871.8 

1,114.0 1,104.2 

783.0 

578.0 

2013 2014 2015 2016 2017

1,378.9 

2,126.1 2,085.3 

1,814.4

3,244.6

2013 2014 2015 2016 2017

387.5 413.0 453.2 

512.4 504.5 

2013 2014 2015 2016 2017

Circulang

33.0%

Bullion

52.3%

Numismac

14.7%

one-cent

$84.3

five-cent

$65.3

dime

$240.8

quarterdollar

$481.4

American

Eagle Gold

$694.9

American

Eagle Silver

$441.9

America the 

Beauful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

American

Eagle 

Palladium

$14.6

Gold & 

Planum

$216.2

Silver

$74.2

Annual Core Sets 

$41.8

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

Miscellaneous

$20.4

421.6 

668.7 668.5 

367.9

292.5 

2013 2014 2015 2016 2017

Circulang

$391.5

Bullion

$10.9

Numismac

$19.2

 Revenue (dollars in millions) Revenue by Line of Business (percent of total) 

Revenue (dollars in millions) Revenue by Denominaon (dollars in millions) 

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

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

Seigniorage and Net Income (dollars in millions, 

before protecon cost)

Seigniorage and Net Income by Line of Business

(dollars in millions, before protecon cost)

2,638.2 

3,602.5 3,693.3 

3,101.9 

4,335.0 

2013 2014 2015 2016 2017

871.8 

1,114.0 1,104.2 

783.0 

578.0 

2013 2014 2015 2016 2017

1,378.9 

2,126.1 2,085.3 

1,814.4

3,244.6

2013 2014 2015 2016 2017

387.5 413.0 453.2 

512.4 504.5 

2013 2014 2015 2016 2017

Circulang

33.0%

Bullion

52.3%

Numismac

14.7%

one-cent

$84.3

five-cent

$65.3

dime

$240.8

quarterdollar

$481.4

American

Eagle Gold

$694.9

American

Eagle Silver

$441.9

America the 

Beauful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

American

Eagle 

Palladium

$14.6

Gold & 

Planum

$216.2

Silver

$74.2

Annual Core Sets 

$41.8

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

Miscellaneous

$20.4

421.6 

668.7 668.5 

367.9

292.5 

2013 2014 2015 2016 2017

Circulang

$391.5

Bullion

$10.9

Numismac

$19.2

 Revenue (dollars in millions) Revenue by Line of Business (percent of total) 

Revenue (dollars in millions) Revenue by Denominaon (dollars in millions) 

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

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

Seigniorage and Net Income (dollars in millions, 

before protecon cost)

Seigniorage and Net Income by Line of Business

(dollars in millions, before protecon cost)

2,638.2 

3,602.5 3,693.3 

3,101.9 

4,335.0 

2013 2014 2015 2016 2017

871.8 

1,114.0 1,104.2 

783.0 

578.0 

2013 2014 2015 2016 2017

1,378.9 

2,126.1 2,085.3 

1,814.4

3,244.6

2013 2014 2015 2016 2017

387.5 413.0 453.2 

512.4 504.5 

2013 2014 2015 2016 2017

Circulang

33.0%

Bullion

52.3%

Numismac

14.7%

one-cent

$84.3

five-cent

$65.3

dime

$240.8

quarterdollar

$481.4

American

Eagle Gold

$694.9

American

Eagle Silver

$441.9

America the 

Beauful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

American

Eagle 

Palladium

$14.6

Gold & 

Planum

$216.2

Silver

$74.2

Annual Core Sets 

$41.8

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

Miscellaneous

$20.4

421.6 

668.7 668.5 

367.9

292.5 

2013 2014 2015 2016 2017

Circulang

$391.5

Bullion

$10.9

Numismac

$19.2

 Revenue (dollars in millions) Revenue by Line of Business (percent of total) 

Revenue (dollars in millions) Revenue by Denominaon (dollars in millions) 

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

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

Seigniorage and Net Income (dollars in millions, 

before protecon cost)

Seigniorage and Net Income by Line of Business

(dollars in millions, before protecon cost)

2,638.2 

3,602.5 3,693.3 

3,101.9 

4,335.0 

2013 2014 2015 2016 2017

871.8 

1,114.0 1,104.2 

783.0 

578.0 

2013 2014 2015 2016 2017

1,378.9 

2,126.1 2,085.3 

1,814.4

3,244.6

2013 2014 2015 2016 2017

387.5 413.0 453.2 

512.4 504.5 

2013 2014 2015 2016 2017

Circulang

33.0%

Bullion

52.3%

Numismac

14.7%

one-cent

$84.3

five-cent

$65.3

dime

$240.8

quarterdollar

$481.4

American

Eagle Gold

$694.9

American

Eagle Silver

$441.9

America the 

Beauful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

American

Eagle 

Palladium

$14.6

Gold & 

Planum

$216.2

Silver

$74.2

Annual Core Sets 

$41.8

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

Miscellaneous

$20.4

421.6 

668.7 668.5 

367.9

292.5 

2013 2014 2015 2016 2017

Circulang

$391.5

Bullion

$10.9

Numismac

$19.2

 Revenue (dollars in millions) Revenue by Line of Business (percent of total) 

Revenue (dollars in millions) Revenue by Denominaon (dollars in millions) 

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

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

Seigniorage and Net Income (dollars in millions, 

before protecon cost)

Seigniorage and Net Income by Line of Business

(dollars in millions, before protecon cost)

2,638.2 

3,602.5 3,693.3 

3,101.9 

4,335.0 

2013 2014 2015 2016 2017

871.8 

1,114.0 1,104.2 

783.0 

578.0 

2013 2014 2015 2016 2017

1,378.9 

2,126.1 2,085.3 

1,814.4

3,244.6

2013 2014 2015 2016 2017

387.5 413.0 453.2 

512.4 504.5 

2013 2014 2015 2016 2017

on

Circulang

33.0%

Bullion

52.3%

Numismac

14.7%

Am

Eagl

23,

Ann

one-cent

$84.3

five-cent

$65.3

dime

$240.8

quarterdollar

$481.4

American

Eagle Gold

$694.9

American

Eagle Silver

$441.9

America the 

Beauful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

American

Eagle 

Palladium

$14.6

Gold & 

Planum

$216.2

Silver

$74.2

Annual Core Sets 

$41.8

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

Miscellaneous

$20.4

421.6 

668.7 668.5 

367.9

292.5 

2013 2014 2015 2016 2017

Circulang

$391.5

Bullion

$10.9

Numismac

$19.2

77.0

2012 

4,042

2013 

Transfer 

 Revenue (dollars in millions) Revenue by Line of Business (percent of total) 

Revenue (dollars in millions) Revenue by Denominaon (dollars in millions) 

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

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

Seigniorage and Net Income (dollars in millions, 

before protecon cost)

Seigniorage and Net Income by Line of Business

(dollars in millions, before protecon cost)

2,638.2 

3,602.5 3,693.3 

3,101.9 

4,335.0 

2013 2014 2015 2016 2017

871.8 

1,114.0 1,104.2 

783.0 

578.0 

2013 2014 2015 2016 2017

1,378.9 

2,126.1 2,085.3 

1,814.4

3,244.6

2013 2014 2015 2016 2017

387.5 413.0 453.2 

512.4 504.5 

2013 2014 2015 2016 2017

o

Circulang

33.0%

Bullion

52.3%

Numismac

14.7%

Am

Eag

23

Ann

one-cent

$84.3

five-cent

$65.3

dime

$240.8

quarterdollar

$481.4

American

Eagle Gold

$694.9

American

Eagle Silver

$441.9

America the 

Beauful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

American

Eagle 

Palladium

$14.6

Gold & 

Planum

$216.2

Silver

$74.2

Annual Core Sets 

$41.8

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

Miscellaneous

$20.4

421.6 

668.7 668.5 

367.9

292.5 

2013 2014 2015 2016 2017

Circulang

$391.5

Bullion

$10.9

Numismac

$19.2

77.

201

4,042

201

Transfer 

 Revenue (dollars in millions) Revenue by Line of Business (percent of total) 

Revenue (dollars in millions) Revenue by Denominaon (dollars in millions) 

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

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

Seigniorage and Net Income (dollars in millions, 

before protecon cost)

Seigniorage and Net Income by Line of Business

(dollars in millions, before protecon cost)

2,638.2 

3,602.5 3,693.3 

3,101.9 

4,335.0 

2013 2014 2015 2016 2017

871.8 

1,114.0 1,104.2 

783.0 

578.0 

2013 2014 2015 2016 2017

1,378.9 

2,126.1 2,085.3 

1,814.4

3,244.6

2013 2014 2015 2016 2017

387.5 413.0 453.2 

512.4 504.5 

2013 2014 2015 2016 2017

on

8

Circulang

33.0%

Bullion

52.3%

Numismac

14.7%

Ame

Eagle 

23,1

Annu

S

1

one-cent

$84.3

five-cent

$65.3

dime

$240.8

quarterdollar

$481.4

American

Eagle Gold

$694.9

American

Eagle Silver

$441.9

America the 

Beauful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

American

Eagle 

Palladium

$14.6

Gold & 

Planum

$216.2

Silver

$74.2

Annual Core Sets 

$41.8

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

Miscellaneous

$20.4

421.6 

668.7 668.5 

367.9

292.5 

2013 2014 2015 2016 2017

Circulang

$391.5

Bullion

$10.9

Numismac

$19.2

77.0

2012 

4,042.

2013 

Transfer t

 Revenue (dollars in millions) Revenue by Line of Business (percent of total) 

Revenue (dollars in millions) Revenue by Denominaon (dollars in millions) 

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

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

Seigniorage and Net Income (dollars in millions, 

before protecon cost)

Seigniorage and Net Income by Line of Business

(dollars in millions, before protecon cost)

2,638.2 

3,602.5 3,693.3 

3,101.9 

4,335.0 

2013 2014 2015 2016 2017

871.8 

1,114.0 1,104.2 

783.0 

578.0 

2013 2014 2015 2016 2017

1,378.9 

2,126.1 2,085.3 

1,814.4

3,244.6

2013 2014 2015 2016 2017

387.5 413.0 453.2 

512.4 504.5 

2013 2014 2015 2016 2017

o

Circulang

33.0%

Bullion

52.3%

Numismac

14.7%

Am

Eagl

23

Ann

one-cent

$84.3

five-cent

$65.3

dime

$240.8

quarterdollar

$481.4

American

Eagle Gold

$694.9

American

Eagle Silver

$441.9

America the 

Beauful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

American

Eagle 

Palladium

$14.6

Gold & 

Planum

$216.2

Silver

$74.2

Annual Core Sets 

$41.8

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

Miscellaneous

$20.4

421.6 

668.7 668.5 

367.9

292.5 

2013 2014 2015 2016 2017

Circulang

$391.5

Bullion

$10.9

Numismac

$19.2

77.

201

4,042

2013 

Transfer 

 Revenue (dollars in millions) Revenue by Line of Business (percent of total) 

Revenue (dollars in millions) Revenue by Denominaon (dollars in millions) 

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

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

Seigniorage and Net Income (dollars in millions, 

before protecon cost)

Seigniorage and Net Income by Line of Business

(dollars in millions, before protecon cost)

2,638.2 

3,602.5 3,693.3 

3,101.9 

4,335.0 

2013 2014 2015 2016 2017

871.8 

1,114.0 1,104.2 

783.0 

578.0 

2013 2014 2015 2016 2017

1,378.9 

2,126.1 2,085.3 

1,814.4

3,244.6

2013 2014 2015 2016 2017

387.5 413.0 453.2 

512.4 504.5 

2013 2014 2015 2016 2017

one

8,4

Circulang

33.0%

Bullion

52.3%

Numismac

14.7%

Amer

Eagle S

23,10

Annua

Se

1,2

one-cent

$84.3

five-cent

$65.3

dime

$240.8

quarterdollar

$481.4

American

Eagle Gold

$694.9

American

Eagle Silver

$441.9

America the 

Beauful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

American

Eagle 

Palladium

$14.6

Gold & 

Planum

$216.2

Silver

$74.2

Annual Core Sets 

$41.8

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

Miscellaneous

$20.4

421.6 

668.7 668.5 

367.9

292.5 

2013 2014 2015 2016 2017

Circulang

$391.5

Bullion

$10.9

Numismac

$19.2

77.0

2012 

4,042.5 

2013 

Transfer to 
7

2017 PERFORMANCE

FY 2017 revenue was $2,638.2 million, a decrease of 26.8 percent 

compared to last year. Cost of goods sold (COGS) decreased 26.0 percent 

to $2,063.3 million. Selling, general and administrative (SG&A) expenses 

increased 5.7 percent from last year. Total seigniorage and net income 

before protection expenses decreased 36.9 percent to $421.6 million 

compared to last year, reflecting the impact of decreased circulating 

coinage shipments and lower demand in the bullion business line.

TRANSFER TO THE GENERAL FUND

In FY 2017, the Mint transferred $269 million to the Treasury General Fund 

from the United States Mint Public Enterprise Fund. The Mint transferred 

$250 million of seigniorage as a non-budget transfer. In the first quarter, 

the Mint made a budget transfer of $19 million from FY 2016 numismatic 

program results.

CIRCULATING COINAGE

Circulating coin shipments decreased 13.7 percent to 14,068 million coins in 

FY 2017. Shipments for all denominations decreased compared to last year. 

Circulating revenue decreased 21.0 percent to $871.8 million. Seigniorage 

decreased 32.3 percent to $391.5 million. Seigniorage per dollar issued 

decreased to $0.45 from $0.52 last year.

BULLION COINS

Demand for bullion coins slowed in FY 2017 compared to last year. The 

Mint sold 24.7 million ounces of gold, silver, platinum, and palladium bullion 

coins, a decrease of 20.4 million ounces from last year. Total bullion coin 

revenue decreased 33.9 percent to $1,378.9 million in FY 2017, primarily 

due to a 41.5 percent decrease in silver bullion coin revenues from lower 

demand and higher spot prices. Bullion coin net income decreased 80.3 

percent to $10.9 million and bullion coin net margin decreased to 0.8 

percent compared to 2.7 percent last year.

NUMISMATIC PRODUCTS

Numismatic sales decreased 6.1 percent to 3.9 million units in FY 2017. 

Numismatic revenues decreased 6.2 percent to $387.5 million due to 

decreased sales of Presidential and First Spouse products. Numismatic 

net income decreased 44.3 percent to $19.2 million (before protection 

expenses). Numismatic net margin decreased to 5.0 percent compared

to 8.4 percent last year.

otal) Gross Cost (dollars in millions)

lions) Shipments (millions of coins)

ns) Sales (thousands of ounces)

ns) Sales (thousands of units sold)

 Business

ost)

one-cent

8,426

five-cent

1,306

dime

2,410

quarterdollar

1,926

ulang

3.0%

mac

7%

American

Eagle Gold

543.0

American

Eagle Silver

23,100.0

America the 

Beauful 

Silver

888.0 American

Buffalo Gold

150.0

American

Eagle 

Planum

20.0

American Eagle 

Palladium

15.0

Gold & Planum

194 

Silver

1,140 

Annual Core

Sets

1,259 

America the 

Beauful 

Quarters

483 

Presidenal & 

First Spouse

218 

Commemoratives

190

Miscellaneous

421 

ent

.3

five-cent

$65.3

rica the 

ful Silver

17.2

American

uffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

can

le 

ium

.6

America the

auful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

llaneous

20.4

ulang

391.5

269.0 

611.0

561.0

272.0 

392.0

77.0

2012 2013 2014 2015 2016 2017

2,216.6

2,934.0 3,024.6 2,734.0 

4,042.5 

2013 2014 2015 2016 2017

Transfer to the Treasury General Fund (dollars in millions)

otal) Gross Cost (dollars in millions)

ions) Shipments (millions of coins)

ns) Sales (thousands of ounces)

ns) Sales (thousands of units sold)

Business

ost)

one-cent

8,426

five-cent

1,306

dime

2,410

quarterdollar

1,926

lang

.0%

mac

%

American

Eagle Gold

543.0

American

Eagle Silver

23,100.0

America the 

Beauful 

Silver

888.0 American

Buffalo Gold

150.0

American

Eagle 

Planum

20.0

American Eagle 

Palladium

15.0

Gold & Planum

194 

Silver

1,140 

Annual Core

Sets

1,259 

America the 

Beauful 

Quarters

483 

Presidenal & 

First Spouse

218 

Commemoratives

190

Miscellaneous

421 

ent

3

five-cent

$65.3

ica the 

ful Silver

7.2

American

uffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

can

e 

um

6

America the

auful Quarters

$11.1

residenal & 

First Spouse

$12.4

ommemoraves

$11.4

laneous

20.4

ulang

91.5

269.0 

611.0

561.0

272.0 

392.0

77.0

2012 2013 2014 2015 2016 2017

2,216.6

2,934.0 3,024.6 2,734.0 

4,042.5 

2013 2014 2015 2016 2017

Transfer to the Treasury General Fund (dollars in millions)

otal) Gross Cost (dollars in millions)

ions) Shipments (millions of coins)

ns) Sales (thousands of ounces)

ns) Sales (thousands of units sold)

Business

ost)

one-cent

8,426

five-cent

1,306

dime

2,410

quarterdollar

1,926

lang

.0%

mac

%

American

Eagle Gold

543.0

American

Eagle Silver

23,100.0

America the 

Beauful 

Silver

888.0 American

Buffalo Gold

150.0

American

Eagle 

Planum

20.0

American Eagle 

Palladium

15.0

Gold & Planum

194 

Silver

1,140 

Annual Core

Sets

1,259 

America the 

Beauful 

Quarters

483 

Presidenal & 

First Spouse

218 

Commemoratives

190

Miscellaneous

421 

ent

3

five-cent

$65.3

rica the 

ful Silver

17.2

American

uffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

can

e 

um

6

America the

auful Quarters

$11.1

residenal & 

First Spouse

$12.4

Commemoraves

$11.4

llaneous

20.4

ulang

91.5

269.0 

611.0

561.0

272.0 

392.0

77.0

2012 2013 2014 2015 2016 2017

2,216.6

2,934.0 3,024.6 2,734.0 

4,042.5 

2013 2014 2015 2016 2017

Transfer to the Treasury General Fund (dollars in millions)

f total) Gross Cost (dollars in millions)

illions) Shipments (millions of coins)

ons) Sales (thousands of ounces)

ions) Sales (thousands of units sold)

of Business

 cost)

one-cent

8,426

five-cent

1,306

dime

2,410

quarterdollar

1,926

culang

33.0%

smac

.7%

American

Eagle Gold

543.0

American

Eagle Silver

23,100.0

America the 

Beauful 

Silver

888.0 American

Buffalo Gold

150.0

American

Eagle 

Planum

20.0

American Eagle 

Palladium

15.0

Gold & Planum

194 

Silver

1,140 

Annual Core

Sets

1,259 

America the 

Beauful 

Quarters

483 

Presidenal & 

First Spouse

218 

Commemoratives

190

Miscellaneous

421 

-cent

84.3

five-cent

$65.3

erica the 

ful Silver

$17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

erican

gle 

adium

4.6

America the

Beauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

cellaneous

$20.4

rculang

$391.5

269.0 

611.0

561.0

272.0 

392.0

77.0

2012 2013 2014 2015 2016 2017

2,216.6

2,934.0 3,024.6 2,734.0 

4,042.5 

2013 2014 2015 2016 2017

Transfer to the Treasury General Fund (dollars in millions)

total) Gross Cost (dollars in millions)

lions) Shipments (millions of coins)

ons) Sales (thousands of ounces)

ons) Sales (thousands of units sold)

 Business

cost)

one-cent

8,426

five-cent

1,306

dime

2,410

quarterdollar

1,926

ulang

3.0%

mac

7%

American

Eagle Gold

543.0

American

Eagle Silver

23,100.0

America the 

Beauful 

Silver

888.0 American

Buffalo Gold

150.0

American

Eagle 

Planum

20.0

American Eagle 

Palladium

15.0

Gold & Planum

194 

Silver

1,140 

Annual Core

Sets

1,259 

America the 

Beauful 

Quarters

483 

Presidenal & 

First Spouse

218 

Commemoratives

190

Miscellaneous

421 

cent

4.3

five-cent

$65.3

rica the 

ful Silver

17.2

American

Buffalo Gold

$189.7

American 

Eagle 

Planum

$20.6

rican

gle 

dium

4.6

America the

eauful Quarters

$11.1

Presidenal & 

First Spouse

$12.4

Commemoraves

$11.4

ellaneous

$20.4

culang

391.5

269.0 

611.0

561.0

272.0 

392.0

77.0

2012 2013 2014 2015 2016 2017

2,216.6

2,934.0 3,024.6 2,734.0 

4,042.5 

2013 2014 2015 2016 2017

Transfer to the Treasury General Fund (dollars in millions)
8

CIRCULATING

As America’s sole manufacturer of legal tender coinage, the efficient and effective production and distribution of 

coinage is the Mint’s highest priority.

The Mint produces and issues circulating coins to the FRB in quantities to support their service to commercial banks 

and other financial institutions. These financial institutions then meet the coinage needs of retailers and the public. 

The Mint recognizes revenue from the sale of circulating coins at face value when they are shipped to the FRB.

CIRCULATING RESULTS 

FY 2017 circulating coin shipments to the FRB decreased by 2.2 billion units (13.7 percent) to a total 14.1 billion 

coins compared to last year. The year saw decreases in all denominations which resulted in decreases in revenue 

compared to last year.

The overall shipment mix decreased for 

all denominations except for the penny. 

As a percentage of total shipments, 

penny shipments increased from 55.9 

percent in FY 2016 to 59.9 percent in FY 

2017. The percentage of total shipments 

for all other denominations decreased by 

4.0 to 40.1 percentage points.

FY 2017 circulating revenue was $871.8 

million, 21.0 percent lower than last year, 

driven by a $139.4 million (22.5 percent) 

decrease in quarter-dollar revenue and 

a $72.6 million (23.2 percent) decrease 

in dime revenue. FY 2017 circulating 

seigniorage was $391.5 million, 32.3 

percent lower than last year, because of 

declining volumes, higher metal costs and higher general and administrative expenses. The resulting seigniorage 

per dollar issued was $0.45, $0.07 below $0.52 from last year.

FY 2017 unit costs increased for all denominations compared to last year. The unit cost for both pennies (1.82 cents) 

and nickels (6.60 cents) remained above face value for the twelfth consecutive fiscal year. Higher metal costs and 

higher unit costs generated a larger FY 2017 net loss ($89.8 million) for these two denominations compared to FY 

2016 ($66.8 million).

Compared to last year, FY 2017 average spot prices for nickel increased 10.3 percent to $10,214.20 per tonne, 

average copper prices rose 21.3 percent to $5,782.69, and average zinc prices increased 45.4 percent to $2,715.62.

MANAGEMENT’S DISCUSSION AND ANALYSIS 

(UNAUDITED)

CIRCULATING COINAGE FOR THE NATION’S COMMERCE

Total Circulating Coin Production (coins in millions)

0

5,000

10,000

15,000

20,000

25,000

30,000

1968 1975 1982 1989 1996 2003 2010 2017
9

CIRCULATING 

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

2017 2016 2015 2014 2013

% Change

2016 to 2017

Coin Shipments 14,068 16,308 16,151 13,037 10,696 (13.7%)

Value of Shipments $871.8 $1,104.2 $1,114.0 $783.0 $578.0 (21.0%)

Gross Cost $480.3 $525.5 $573.1 $493.9 $440.6 (8.6%)

 Cost of Goods Sold $418.1 $468.5 $520.0 $435.4 $383.7 (10.8%)

 Selling, General &

 Administrative $62.2 $57.0 $53.1 $58.5 $56.9 9.1%

Seigniorage $391.5 $578.7 $540.9 $289.1 $137.4 (32.3%)

Seigniorage per $1 Issued $0.45 $0.52 $0.49 $0.37 $0.24 (13.5%)

 $(57) $(51) $(50) $(38) $(36) $(21) $(21) $(25) $(2) $(15) 

 $(46) $(69) $(39) $(55) $(53) $(60) $(58) $(22) $(20) $(27) 

 $161 $217 $186 $135 $104 $61 $16 $38 $61 $83 

 $323 

 $431 $438 

 $271 

 $154 

 $67 $45 $132 $31 

 $354 

 $77 

 $383 

 $283 

 $319 

 $349 

 $(200) 

 $- 

 $200 

 $400 

 $600 

 $800 

 $1,000 

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 

Millions 

Circulating Seigniorage by Year ($ Millions) Dollar 

Quarter 

Dime 

One-cent 

Five-cent 
ONE CENT COINS PRODUCED IN PHILADELPHIA GET “P” MINT MARKS

Philadelphia was the site of the Nation’s first mint in 1793. As other mints

were added around the country, each was given a unique mintmark to

include on its coins – pennies minted at the United States Mint at Denver 

carry the “D” mintmark and pennies minted at the United States Mint

at San Francisco carry the “S” mintmark. However, coins minted at the

Philadelphia Mint did not bear a mint mark until World War II, when a “P” 

mintmark was add to nickels containing silver. The “P” mintmark was

not used again until 1979, when it was placed on all coins minted in

Philadelphia except for pennies. The “P” mintmark has never appeared

on pennies produced at the Philadelphia Mint. So, as the Mint approached 

its 225th anniversary, employees suggested incorporating a mintmark

on pennies minted in Philadelphia as a tangible way to acknowledge the 

Mint’s anniversary during calendar year 2017. For the first time in history,

the United States Mint included the “P” mintmark on all pennies produced 

at the United States Mint at Philadelphia in 2017.

10

UNIT COST OF PRODUCING AND DISTRIBUTING COINS BY DENOMINATION

2017 One-Cent Five-Cent Dime Quarter-Dollar

Cost of Goods Sold $0.0156 $0.0564 $0.0284 $0.0711 

Selling, General & 

Administrative $0.0024 $0.0088 $0.0045 $0.0103 

Distribution to FRB $0.0002 $0.0008 $0.0004 $0.0010 

Total Unit cost $0.0182 $0.0660 $0.0333 $0.0824 

2016 One-Cent Five-Cent Dime Quarter-Dollar

Cost of Goods Sold $0.0131 $0.0551 $0.0269 $0.0672 

Selling, General & 

Administrative $0.0017 $0.0071 $0.0034 $0.0080 

Distribution to FRB $0.0002 $0.0010 $0.0005 $0.0011 

Total Unit cost $0.0150 $0.0632 $0.0308 $0.0763 

2015 One-Cent Five-Cent Dime Quarter-Dollar

Cost of Goods Sold $0.0125 $0.0664 $0.0315 $0.0755 

Selling, General & 

Administrative $0.0015 $0.0068 $0.0033 $0.0076 

Distribution to FRB $0.0003 $0.0012 $0.0006 $0.0013 

Total Unit cost $0.0143 $0.0744 $0.0354 $0.0844 
11

SHIPMENTS, COSTS, AND SEIGNIORAGE BY DENOMINATION

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

2017 One-Cent Five-Cent Dime

QuarterDollarMutilated 

& Other Total

Coin Shipments 8,426 1,306 2,410 1,926 14,068 

Value of Shipments $84.3 $65.3 $240.8 $481.4 $871.8 

Gross Cost $153.1 $86.3 $80.3 $158.7 $1.9 $480.3 

 Cost of Goods Sold $133.0 $74.8 $69.5 $138.9 $1.9 $418.1 

 Selling, General & Administrative $20.1 $11.5 $10.8 $19.8 $62.2 

Seigniorage $(68.8) $(21.0) $160.5 $322.7 $(1.9) $391.5 

Seigniorage per $1 Issued $(0.82) $(0.32) $0.67 $0.67 $0.45 

2016 One-Cent Five-Cent Dime

QuarterDollarMutilated 

& Other Total

Coin Shipments 9,114 1,578 3,134 2,482 - 16,308 

Value of Shipments $91.1 $78.9 $313.4 $620.8 $- $1,104.2 

Gross Cost $137.1 $99.7 $96.4 $189.4 $2.9 $525.5 

 Cost of Goods Sold $121.9 $88.5 $85.7 $169.5 $2.9 $468.5 

 Selling, General & Administrative $15.2 $11.2 $10.7 $19.9 $- $57.0 

Seigniorage $(46.0) $(20.8) $217.0 $431.4 $(2.9) $578.7 

Seigniorage per $1 Issued $(0.50) $(0.26) $0.69 $0.69 $0.52 

2015 One-Cent Five-Cent Dime

QuarterDollarMutilated 

& Other Total

Coin Shipments 9,155 1,477 2,874 2,645 - 16,151 

Value of Shipments $91.6 $73.8 $287.3 $661.3 $- $1,114.0 

Gross Cost $130.1 $109.7 $101.6 $223.2 $8.5 $573.1 

 Cost of Goods Sold $116.5 $99.7 $92.1 $203.2 $8.5 $520.0 

 Selling, General & Administrative $13.6 $10.0 $9.5 $20.0 $- $53.1 

Seigniorage $(38.5) $(35.9) $185.7 $438.1 $(8.5) $540.9 

Seigniorage per $1 Issued $(0.42) $(0.49) $0.65 $0.66 $0.49 

Base Metal Daily Official Spot Price (prices per metric tonne in dollars)
12

PRECIOUS METAL BULLION COINS FOR INVESTORS

BULLION COINS

The Mint’s bullion coin program provides the public a simple and tangible means to acquire precious metal coins at 

a slight premium to spot market metal prices. Investors purchase bullion coins not only for their intrinsic metal value, 

but also because the United States guarantees each coin’s metal weight, content, and purity. 

The Mint produces and issues gold, silver, platinum, and palladium bullion coins on Authorized Purchaser network 

through the American Buffalo, America the Beautiful Silver Bullion CoinTM, and the American Eagle Programs. The 

Mint sells the coins to the authorized purchasers at the same market price paid for the metal, plus a premium to 

cover bullion program operating costs. Authorized purchasers agree to maintain an open, two-way market for these 

coins, assuring their liquidity. This allows the public to purchase and sell bullion coins at the prevailing market price, 

adjusting for any premium the authorized purchaser applies.

BULLION RESULTS 

In FY 2017, the Mint sold 24,716 thousand ounces of bullion, a decrease of 20,447 thousand ounces or 45.3 percent 

compared to FY 2016. Because of lower bullion demand, FY 2017 bullion coin program revenue and net income 

decreased compared to FY 2016. Revenue totaled $1,378.9 million, down 33.9 percent from $2,085.3 million last 

year. Net income decreased 80.3 percent to $10.9 million from $55.3 million, driven by American Eagle Silver bullion 

earnings, which decreased $29.7 million (98.3 percent).

Total demand for bullion decreased from FY 2016 levels due in large part to declines in silver bullion coin demand. 

Additionally, demand for gold started experiencing a dramatic slowdown due to the volatility of the market. The 

decrease in total bullion revenue was slightly more modest than the volume declines because gold bullion revenue 

was still robust at the beginning of the fiscal year.

GOLD BULLION COIN RESULTS 

Bullion coin program results are highly dependent on trends in commodity market prices. These commodity prices 

are, in turn, dependent on variables such as global supply constraints, perceived strength as a safe-haven asset, 

currency exchange markets, and earnings potential from other commodities or investments.

Although FY 2017 gold bullion demand started the year strong, declines that began in the second quarter resulted 

in lower volumes than last year. FY 2017 sales decreased 325 thousand ounces (31.9 percent) to 693 thousand 

ounces, with a 33.7 percent decrease in American Eagle gold bullion coin ounces sold compared to last year.
13

BULLION COINS 

(dollars in millions)

2017 2016 2015 2014 2013

% Change

2016 to 2017

Gold oz. sold (thousands) 693 1,018 1,018 702 1,218 (31.9%)

Silver oz. sold (thousands) 23,988 44,125 48,727 38,968 44,644 (45.6%)

Platinum oz. sold (thousands) 20 20 3 14 - - 

Palladium oz. sold 

(thousands) 15 - - - - - 

Sales Revenue $1,378.9 $2,085.3 $2,126.1 $1,814.4 $3,244.6 (33.9%)

Gross Cost $1,368.0 $2,030.0 $2,065.1 $1,786.4 $3,185.3 (32.6%)

Cost of Goods Sold $1,342.7 $2,003.9 $2,038.5 $1,760.9 $3,159.0 (33.0%)

Selling, General & 

Administrative $25.3 $26.1 $26.6 $25.5 $26.3 (3.1%)

Net Income $10.9 $55.3 $61.0 $28.0 $59.3 (80.3%)

Bullion Net Margin 0.8% 2.7% 2.9% 1.5% 1.8% (70.4%)

Total Gold Bullion Coin Sales (ounces sold in millions)

Precious Metal Daily Official Spot Price

(prices per troy ounce in dollars)

0.0 

0.1 

0.2 

0.3 

0.4 

0.5 

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 

FY 2015 FY 2016 FY 2017 

Millions 

500

700

900

1,100

1,300

1,500

1,700

Sep-14

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Mar-16

Jun-16

Sep-16

Dec-16

Mar-17

Jun-17

Dec-17

spot price (USD/ounce)

Gold

London Metal Exchange Official Spot
14

BULLION COINS REVENUE, COST, AND NET INCOME BY PROGRAM

(dollars in millions)

2017

American 

Eagle Gold

American 

Buffalo Gold

Sub-Total 

Gold

American 

Eagle Silver

America the 

Beautiful 

Silver

Sub-Total 

Silver

American 

Eagle 

Platinum

American 

Eagle 

Palladium Total

Ounces Sold (thousands) 543 150 693 23,100 888 23,988 20 15 24,716 

Sales Revenue $694.9 $189.7 $884.6 $441.9 $17.2 $459.1 $20.6 $14.6 $1,378.9 

Gross Cost $683.2 $186.9 $870.1 $441.4 $18.1 $459.5 $22.5 $15.9 $1,368.0 

 Cost of Goods Sold $679.6 $186.3 $865.9 $421.6 $17.4 $439.0 $22.2 $15.6 $1,342.7 

 Selling, General &

 Administrative $3.6 $0.6 $4.2 $19.8 $0.7 $20.5 $0.3 $0.3 $25.3 

Net Income $11.7 $2.8 $14.5 $0.5 $(0.9) $(0.4) $(1.9) $(1.3) $10.9 

Bullion Net Margin 1.7% 1.5% 1.6% 0.1% (5.2%) (0.1%) (9.2%) (8.9%) 0.8%

2016

American 

Eagle Gold

American 

Buffalo Gold

Sub-Total 

Gold

American 

Eagle Silver

America the 

Beautiful 

Silver

Sub-Total 

Silver

American 

Eagle 

Platinum Total

Ounces Sold (thousands) 819 199 1,018 42,446 1,679 44,125 20 45,163 

Sales Revenue $1,033.8 $244.1 $1,277.9 $755.2 $29.6 $784.8 $22.6 $2,085.3 

Gross Cost $1,012.9 $239.9 $1,252.8 $725.0 $28.5 $753.5 $23.7 $2,030.0 

 Cost of Goods Sold $1,009.1 $239.3 $1,248.4 $704.3 $27.7 $732.0 $23.5 $2,003.9 

 Selling, General &

 Administrative $3.8 $0.6 $4.4 $20.7 $0.8 $21.5 $0.2 $26.1 

Net Income $20.9 $4.2 $25.1 $30.2 $1.1 $31.3 $(1.1) $55.3 

Bullion Net Margin 2.0% 1.7% 2.0% 4.0% 3.7% 4.0% (4.9%) 2.7%

2015

American 

Eagle Gold

American 

Buffalo Gold

Sub-Total 

Gold

American 

Eagle Silver

America the 

Beautiful 

Silver

Sub-Total 

Silver

American 

Eagle 

Platinum Total

Ounces Sold (thousands) 810 208 1,018 47,870 857 48,727 3 49,748 

Sales Revenue $979.6 $252.2 $1,231.8 $875.4 $15.5 $890.9 $3.4 $2,126.1 

Gross Cost $957.8 $247.7 $1,205.5 $841.1 $14.7 $855.8 $3.8 $2,065.1 

 Cost of Goods Sold $954.8 $247.2 $1,202.0 $818.5 $14.3 $832.8 $3.7 $2,038.5 

 Selling, General &

 Administrative $3.0 $0.5 $3.5 $22.6 $0.4 $23.0 $0.1 $26.6 

Net Income $21.8 $4.5 $26.3 $34.3 $0.8 $35.1 $(0.4) $61.0 

Bullion Net Margin 2.2% 1.8% 2.1% 3.9% 5.2% 3.9% (11.8%) 2.9%

Gold bullion revenue decreased by 30.8 percent to $884.6 million because of decreases of 22.3 percent in American 

Buffalo and 32.8 percent in American Eagle revenue, respectively.

Coinciding with lower gold volume and revenue, FY 2017 gold bullion net income decreased $10.6 million (42.2 

percent), driven by a $9.2 million (44.0 percent) decrease in American Eagle gold bullion coins. American Buffalo 

gold coin earnings decreased by $1.4 million (33.3 percent).

The FY 2017 average daily spot price of gold was $1,243.16 per ounce, up 1.8 percent from $1,221.75 last year.
15

SILVER BULLION COIN RESULTS 

Total silver bullion ounces sold decreased 20,137 thousand ounces (45.6 percent) to 23,988 thousand ounces with a 

45.6 percent decrease in American Eagle Silver Bullion Coin ounces sold compared to last year. 

Net income from Silver Bullion Coins decreased 101.3 percent because of a $29.7 million decrease in American 

Eagle earnings. America the Beautiful Silver Bullion Coins experienced a $2.0 million decrease (181.8 percent) in 

earnings compared to last year.

Lower volumes meant that FY 2017 silver revenue decreased by 41.5 percent. American Eagle revenue decreased by 

$313.3 million (41.5 percent), and America the Beautiful revenue decreased by $12.4 million (41.9 percent).

The FY 2017 average daily spot price of silver was $17.17 per ounce, up 3.9 percent from $16.53 compared to the 

same period last year.

PLATINUM BULLION COIN RESULTS

The Mint began accepting orders for 2017 American Eagle platinum bullion coins on January 23, 2017, and the 

entire inventory of 20,000 ounces was sold out by January 25. Ounces sold matched last year’s sales and revenue 

decreased slightly to $20.6 million, or 8.8 percent lower than last year. This program generated a net loss of $1.9 

million, which was 72.7 percent lower than FY 2016.

The FY 2017 average daily spot price of platinum was $954.46 per ounce, down 2.6 percent from $979.58 per ounce 

in the same period last year.

Total Platinum Bullion Coin Sales (ounces sold in thousands)

Precious Metal Daily Official Spot Price

(prices per troy ounce in dollars)

0.0 

5.0 

10.0 

15.0 

20.0 

25.0 

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 2015 FY 2016 FY 2017 

Thousands

500

700

900

1,100

1,300

1,500

1,700

1,900

Sep-14

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Mar-16

Jun-16

Sep-16

Dec-16

Mar-17

Jun-17

Sep-17

spot price (USD/ounce)

Planum

London Metal Exchange Official Spot

Total Silver Bullion Coin Sales (ounces sold in millions)

Precious Metal Daily Official Spot Price

(prices per troy ounce in dollars)

0 

4 

8 

12 

16 

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 2015 FY 2016 FY 2017 

Millions

0

5

10

15

20

25

30

35

40

45

50

Sep-14

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Mar-16

Jun-16

Sep-16

Dec-16

Mar-17

Jun-17

Sep-17

spot price (USD/ounce)

Silver

London Metal Exchange Official Spot
16

PALLADIUM BULLION COIN RESULTS

For the first time, the Mint began sales of a one-ounce American Eagle Palladium Bullion Coin on September 25, 

2017. As with all bullion coins, American Eagle Palladium Bullion Coins were made available through the Mint’s 

Authorized Purchaser network. 

The American Eagle Palladium Bullion Coin Act was signed into law in 2010 and amended in 2015. As required by 

law, a marketing study of the demand for palladium bullion investments was issued in 2013. During FY 2017, the 

Mint identified vendors that met Mint requirements to provide palladium planchets. The Mint sold 15,000 ounces

of palladium bullion, generating revenue of $14.6 million. Startup costs contributed to an overall loss of $1.3 million 

in FY 2017.

The Mint sold its entire inventory of 15,000 American Eagle Palladium Bullion Coins on the first day of release.

The average daily spot price of palladium during FY 2017 was $794.07 per ounce.

Total Palladium Bullion Coin Sales (ounces sold in thousands)

Precious Metal Daily Official Spot Price

(prices per troy ounce in dollars)

 

0.0 

5.0 

10.0 

15.0 

20.0 

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

FY 2015 FY 2016 FY 2017 

Thousands

0

100

200

300

400

500

600

700

800

900

1,000

1,100

spot price (USD/ounce)

Palladium

London Metal Exchange Official Spot

Sep-14

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Mar-16

Jun-16

Sep-16

Dec-16

Mar-17

Jun-17

Dec-17
17

MINT WINS TWO COIN OF THE YEAR AWARDS

The United States earned top honors in two coin design categories at the World Money Fair in Berlin, Germany. The 

Mint won in the category of Best Circulating Coin for its America the Beautiful Program quarter honoring Kisatchie 

National Forest and in the category of Most Inspirational Coin for its March of Dimes Silver Dollar commemorative coin.

The March of Dimes Silver Dollar, which celebrates the 75th anniversary of the establishment of the March of Dimes 

Foundation, includes a reverse designed and sculpted by sculptor-engraver Don Everhart, who was with the Mint 

from 2004 until his retirement in 2017. The obverse features the profiles of President Franklin D. Roosevelt and

Dr. Jonas Salk, two leaders in the fight against polio, and was designed by Paul Balan, a member of the Artistic 

Infusing Program (AIP) since 2010, and sculpted by Mint sculptor-engraver Michael Gaudioso, who has been

with the Mint since 2009.

The America the Beautiful Program quarter honoring Kisatchie National Forest features a wild turkey in flight over 

blue stem grass with long leaf pine in the background on the reverse. The design is by Susan Gamble, who was 

part of the AIP from 2004 until her death in 2015. Sculptor-engraver Joseph Menna, who joined the Mint in 2005, 

sculpted the design.

The Coin of the Year Awards recognize artistic talent among 10 design categories. A panel of international judges 

selects from coins issued two years prior to the year of the award. Both of the coins were issued in 2015 and are no 

longer available from the Mint.
18

NUMISMATIC PRODUCTS FOR THE PUBLIC

NUMISMATIC

The Mint’s numismatic program provides high-quality versions of circulating coinage, precious metal coins, 

commemorative coins, and medals for sale to the public. Most of the Mint’s recurring products—such as United 

States Mint Uncirculated Coin Sets®, United States Mint Proof Sets®, and United States Mint Silver Proof Sets®—are 

required by Federal statute. Others, such as commemorative coins and Congressional Gold Medals, are required 

by individual public laws. A main objective of the numismatic program is to increase the Mint’s customer base and 

foster sales while controlling costs and keeping prices as low as practicable.

NUMISMATIC RESULTS

Numismatic product sales decreased to 3.9 

million units in FY 2017 compared to 4.2 million 

units in FY 2016. The largest driver was a fall 

in the Presidential and First Spouse medal 

category. Presidential and First Spouse medal 

units were 73.0 percent lower than last year, due 

to the Presidential $1 Coin program ending its 

10-year run in calendar year 2016 along with 

the First Spouse coin program. Presidential and 

First Spouse medals contributed 5.6 percent to 

overall numismatic units in FY 2017, compared 

to 19.4 percent last year.

Numismatic revenue was also lower than last 

year. FY 2017 numismatic revenue was $387.5 

million, a $25.5 million (6.2 percent) decrease 

from FY 2016. There was a $24.0 million decrease in revenue from Presidential and First Spouse products also due to 

the end of the program.

The 2017 United States Mint Proof Set and the 2017 American Eagle Silver One Ounce Proof Coin were the most 

popular sellers (in terms of units) this year, selling a combined 684 thousand units. Sales for these products were 7.1 

percent lower than they were last year.

Gold and platinum numismatic products generated the largest share of revenue (55.8 percent) compared to the 

other numismatic products. This category generated $216.2 million in numismatic revenue compared to $171.3 

million revenue generated by the other categories. Annual recurring sets recorded a $17.3 million net loss in FY 2017.

The numismatic net margin decreased to 5.0 percent in FY 2017 from 8.4 percent in FY 2016. FY 2017 numismatic 

COGS decreased by 4.5 percent and by $14.1 million, driven by the lower units. SG&A expenses increased 6.3 

percent this year.

Top Selling Products Fiscal Year

(units sold in thousands)

214 

226 

255 

313 

371 

2017 Uncirculated Set 

2016 American Eagle

 Silver Proof 1 OZ

2017 Silver Proof Set 

2017 American Eagle

Silver Proof 1 OZ

2017 Proof Set 
AMERICAN EAGLE PLATINUM PROOF COIN 20TH ANNIVERSARY

Twenty years ago the United States Mint made numismatic history when it introduced its first

legal tender American Eagle Platinum Proof Coin. In 1997, Treasury Secretary Robert E. Rubin

authorized the Mint to produce .9995 platinum bullion coins and approved designs for the 

program. Authority to produce platinum coins was enacted as part of the Omnibus Consolidated 

Appropriations Act for Fiscal Year 1997 (P.L. 104–208).

The platinum Eagle represents a historic expansion of the Mint’s bullion coin program, appealing 

to both collectors and investors. To commemorate the 20th anniversary of production of this coin, 

the Mint revived the original designs depicted on the coin. The coin features a rendition of the 

Statue of Liberty on the obverse and a soaring eagle design on the reverse.

19

NUMISMATIC 

(dollars in millions)

2017 2016 2015 2014 2013

% Change 

2016 to 2017

Units Sold (Thousands) 3,905 4,159 5,379 5,725 5,509 (6.1%)

Sales Revenue $387.5 $413.0 $453.2 $504.5 $512.4 (6.2%)

Gross Cost $368.3 $378.5 $386.4 $453.7 $416.6 (2.7%)

Cost of Goods Sold $302.5 $316.6 $322.3 $386.3 $356.5 (4.5%)

Selling, General & 

Administrative $65.8 $61.9 $64.1 $67.4 $60.1 6.3%

Net Income & Seigniorage $19.2 $34.5 $66.8 $50.8 $95.8 (44.3%)

Numismatic Net Margin 5.0% 8.4% 14.7% 10.1% 18.7% (40.5%)

Seigniorage Portion $10.2 $25.6 $26.0 $28.1 $29.3 (60.2%)

Net Income & Seigniorage figures are before protection costs. Seigniorage portion results from the sale of circulating coins 

(boxes, bags and rolls) directly to the public through the numismatic channels.
20

NUMISMATIC REVENUE, COST, AND NET INCOME OR SEIGNIORAGE BY PROGRAM

(dollars in millions)

*Annual Sets are the United States Mint Silver Proof Set, United States Mint Proof Set, and United States Mint Uncirculated Coin Set.

2017

Gold and 

Platinum 

Coin 

Products

Silver Coin 

Products

Annual 

Sets*

Quarter 

Products

Presidential 

and First 

Spouse 

Medals Commemorative Miscellaneous Total

Units Sold 

(Thousands) 194 1,140 1,259 483 218 190 421 3,905 

Sales Revenue $216.2 $74.2 $41.8 $11.1 $12.4 $11.4 $20.4 $387.5 

Gross Cost $183.1 $62.1 $59.1 $14.8 $10.9 $12.5 $25.8 $368.3 

 Cost of Goods Sold $176.7 $46.7 $35.9 $8.9 $7.5 $9.3 $17.5 $302.5 

 Selling, General &

 Administrative $6.4 $15.4 $23.2 $5.9 $3.4 $3.2 $8.3 $65.8 

Net Income & 

Seigniorage $33.1 $12.1 $(17.3) $(3.7) $1.5 $(1.1) $(5.4) $19.2 

Numismatic Net 

Margin 15.3% 16.3% (41.4%) (33.3%) 12.1% (9.6%) (26.5%) 5.0%

Seigniorage Portion $- $- $- $2.0 $5.4 $- $2.8 $10.2

2016

Gold and 

Platinum 

Coin 

Products

Silver Coin 

Products

Annual 

Sets*

Quarter 

Products

Presidential 

and First 

Spouse 

Medals Commemorative Miscellaneous Total

Units Sold 

(Thousands) 332 656 1,278 503 808 289 293 4,159 

Sales Revenue $233.7 $41.7 $47.7 $11.9 $36.4 $22.9 $18.7 $413.0 

Gross Cost $192.6 $29.4 $71.8 $16.9 $24.1 $21.7 $22.0 $378.5 

 Cost of Goods Sold $185.0 $22.4 $50.3 $11.3 $14.6 $17.8 $15.2 $316.6 

 Selling, General &

 Administrative $7.6 $7.0 $21.5 $5.6 $9.5 $3.9 $6.8 $61.9 

Net Income & 

Seigniorage $41.1 $12.3 $(24.1) $(5.0) $12.3 $1.2 $(3.3) $34.5 

Numismatic Net 

Margin 17.6% 29.5% (50.5%) (42.0%) 33.8% 5.2% (17.6%) 8.4%

Seigniorage Portion $- $- $- $2.5 $20.1 $- $3.0 $25.6 

2015

Gold and 

Platinum 

Coin 

Products

Silver Coin 

Products

Annual 

Sets*

Quarter 

Products

Presidential 

and First 

Spouse 

Medals Commemorative Miscellaneous Total

Units Sold 

(Thousands) 169 1,436 1,403 512 1,067 479 313 5,379 

Sales Revenue $206.2 $87.0 $52.4 $12.2 $48.4 $26.3 $20.7 $453.2 

Gross Cost $162.9 $60.0 $60.9 $14.0 $27.2 $21.8 $39.6 $386.4 

 Cost of Goods Sold $160.3 $44.7 $41.2 $9.5 $17.2 $16.8 $32.6 $322.3 

 Selling, General &

 Administrative $2.6 $15.3 $19.7 $4.5 $10.0 $5.0 $7.0 $64.1 

Net Income & 

Seigniorage $43.3 $27.0 $(8.5) $(1.8) $21.2 $4.5 $(18.9) $66.8 

Numismatic Net 

Margin 21.0% 31.0% (16.2%) (14.8%) 43.8% 17.1% (91.3%) 14.7%

Seigniorage Portion $- $- $- $2.4 $20.6 $- $3.0 $26.0 
21

COMMEMORATIVE COINS

Commemorative coin programs are created by acts of Congress to honor a person, place, organization, or event. 

The price of each coin ordinarily includes a surcharge authorized payable to designated recipient organizations. 

Two commemorative coin programs began in FY 2017. The Boys Town Centennial Commemorative Coin Program 

had revenue of $6.0 million with surcharges of $0.9 million through September 30. This program runs through 

calendar year 2017 and final surcharges will be totaled December 30. The surcharges support the Boys Town 

National Hotline, Boys Town National Research Hospital, and other community services. 

The Lions Clubs International Centennial Silver Dollar Program had revenue of $3.9 million with surcharges of $0.8 

million through September 30. The surcharges allowed the Lions Clubs to further its programs for the blind and 

visually impaired in the United States and abroad, to invest in adaptive technologies for the disabled, and to invest 

in youth and those affected by a major disaster. Both of these commemorative coin programs ran through December 

31, 2017.

Two commemorative coin programs ended during FY 2017. The National Park Service 100th Anniversary program had 

revenue of $16.2 million with surcharges of $2.2 million through September 30. The surcharges support National Park 

Foundation projects intended to preserve, protect, and promote National Park Service resources for public enjoyment.

The Mark Twain program had revenue of $12.1 million with surcharges of $1.7 million through September 30. The 

surcharges support Twain’s legacy through the following four institutions: the Mark Twain House & Museum; the 

Mark Twain Boyhood Home and Museum; the University of California, Berkeley; and Elmira College. These two 

commemorative programs ran through December 31, 2016.

MINT MATURES CYBERSECURITY PROGRAM 

In 2017, the Mint continued to enhance the capabilities that advance its overall cybersecurity efforts. As the first

Treasury bureau to begin the Department of Homeland Security’s Continuous Diagnostics & Monitoring program, the 

Mint has implemented hardware, software, and vulnerability management capabilities that give us greater visibility into 

the cyber environment and strengthen our protection against cyberattack. As we transition to more cloud solutions, the 

Mint is delivering on a secure cloud-first strategy that protects data and access. The Mint also participated proactively 

in cross-agency cybersecurity initiatives – as an active sponsoring member of a cybersecurity threat information sharing 

community among the Treasury bureaus, and also by sponsoring a member of the Treasury-wide Cybersecurity Cohort 

Pilot Program, which aims to build a pipeline of future cybersecurity talent in the Federal community.
22

PEF EARNINGS AND TRANSFERS TO THE TREASURY

GENERAL FUND

As required by 31 U.S.C. § 5136, the Mint deposits all receipts from operations and programs into the PEF. 

Periodically, the Mint transfers amounts out of the PEF determined to be in excess of amounts required to support 

ongoing operations and programs. The circulating, bullion, and numismatic program data exclude costs for the 

protection of custodial assets activity. Consolidated earnings are discussed below to provide a status of the entirety 

of the PEF compared to prior periods.

FY 2017 protection costs increased by 1.1 percent to $45.5 million compared to $45.0 million last year. FY 2017 PEF 

earnings after protection costs decreased to $376.1 million compared to $623.5 million last year.

The Mint made two transfers to the Treasury General Fund this fiscal year totaling $269 million. In FY 2016, the 

Mint transferred $611 million. The Mint makes two types of transfers. Non-budget transfers from the PEF consist of 

seigniorage, which is not treated as a budgetary receipt to the Government, but as a means of financing. Budget 

transfers to the Treasury General Fund from the PEF usually consist of numismatic net income and can be treated as 

a budgetary receipt to the Government.

In December 2016, the Mint made a budget transfer of $19 million from numismatic and bullion earnings to the 

Treasury General Fund, compared to $61 million transferred last year. On September 30, 2017, the Mint made a 

non-budget transfer of $250 million to the Treasury General Fund, compared to $550 million that was transferred

last year.

Transfer to the Treasury General Fund

350 

250

550 550

250

77 

42 

22 

11 61

19 

0 

100 

200 

300 

400 

500 

600 

700 

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 

Dollars in Millions 

Budget Non-Budget 
23

FOSTER A SAFE, FLEXIBLE, DIVERSE, AND ENGAGED WORKFORCE

It is the goal of the Mint to have a safe and innovative workforce. Therefore, the Mint strives to foster a workforce 

that is safe, flexible, diverse, and engaged. Ensuring the safety of the workforce is of the utmost importance. The 

Mint will continue to drive awareness of safety protocols, improve training opportunities, and ensure compliance 

with environmental safety and health requirements. As technology evolves, the Mint’s workforce will become more 

responsive to changing mission requirements. The Mint must also maintain its competitive edge by employing 

an extraordinary diverse workforce of employees with unique skills, professional experiences, and personal 

backgrounds. Cultivating a more flexible and engaged workforce is important to the Mint so that all of the 

employees are motivated to achieve their maximum potential. The Mint takes pride in providing employees with 

opportunities to grow and advance within the organization.

ELIMINATION AND REDUCTION OF HAZARDOUS CHEMICALS

The San Francisco Mint updated its recurring Safety Baton program to focus on reducing hazardous chemicals 

in the workplace. Over the course of the year, each division was tasked with eliminating at least two chemicals 

from their respective work areas. In the first few months, the teams were able to eliminate eight regularly used 

chemicals and replace them with green or bio-based chemicals. Shortly after, the San Francisco Mint embarked on 

a journey of tallying and reviewing each and every chemical in the entire facility. This enormous effort resulted in 

the identification of 800 chemicals being used/stored in the facility. Each division manager was then tasked with 

reviewing each and every chemical in their work area and place the chemical into one of three categories: Eliminate, 

Replace, or Use. After conducting this effort, the San Francisco Mint was able to eliminate 406 chemicals from its 

inventory – a reduction of more than 50 percent. This decrease in chemicals reduces the risk of injury, promotes a 

healthier work environment, and reduces the cost of purchasing and storing the chemicals at the facility.

EMPLOYEE ENGAGEMENT

The Mint continued its employee engagement efforts by reviewing the results of the 2016 Federal Employee 

Viewpoint Survey (FEVS) and communicating the results to the workforce. Senior managers encouraged each 

directorate to focus on addressing some of the deficiencies identified in the survey results. Each directorate 

developed an EngageMINT action plan that’s updated quarterly and tracked throughout the year. The results have 

been a more engaged workforce, as well as increased productivity and performance. 

Additionally, the Mint has made significant improvements in several areas because of its commitment to its 

workforce and to effectively managing its talent. The FEVS is a critical part of the Mint’s EngageMINT strategy. 

Moreover, the Senior Executive team has proactively increased communications regarding the United States Mint’s 

Strategic Plan and priority initiatives. On a quarterly basis, the Senior Executive team convenes all employees for 

a Town Hall meeting. At each Town Hall meeting, employees have an opportunity to ask questions relevant to the 

workplace, as well as the bureau’s progress towards meeting its strategic goals. This open two-way communication 

has increased trust and supports employee engagement, and incrementally improved the FEVS results.

MINT DELIVERS TECHNOLOGY EFFICIENCIES

In 2016, the Mint successfully launched The Artist Portal. As a result of this technology, members of the public were 

able to submit designs electronically and a panel of judges to review submissions for the 2018 World War I American 

Veterans Centennial Silver Dollar Commemorative Coin, and the 2018 Breast Cancer Awareness Commemorative 

Coin design competitions. In May of 2017, the Mint launched the Apollo 11 50th Anniversary Commemorative Coin 

Program design competition on the same platform, employing parallax layout and historical images from U.S. space 

missions to create a highly engaging site. Just weeks prior, in April, the Mint crossed another significant milestone in 

its Digital Services Strategy (DSS) when we deployed a new Web Content Management System (WCMS). The WCMS 

provides a new and substantially streamlined way of curating, editing, and sharing information with the public. The 

Mint achieved digital efficiencies internally as well, implementing advanced solutions to facilitate various functions 

across the organization, including: (1) a library that enables digital tracking and management of the Mint’s HR 

documentation, (2) a solution that automates the nomination and judging process for the Mint’s historic Rittenhouse 

Medal for Excellence Award Program, and (3) a sophisticated platform to support management, tracking, and 
24

analysis of the end-to-end delivery of all products in the Mint’s numismatic portfolio. The Mint will realize a number 

of benefits from these initiatives, including enhanced digital performance and availability; improved enterprise-wide, 

data-driven governance and decision making capabilities; reduced data center footprint; and an improved process 

for publishing and managing content on our website.

MINT LEADERSHIP OFFICIALLY LAUNCH THE MINT PRODUCT LIFECYCLE INTO OPERATION

Over the last year, the Mint Product Lifecycle (MPL) team has been using research into industry best practices, staff 

interviews, workshops, executive and stakeholder feedback, and training sessions to collaboratively develop a 

process, operating model, and technology solution to help better manage the lifecycle of a numismatic and bullion 

products. The results of these efforts culminated in the delivery of a Full Operating Capability solution.

We are now officially implementing an operating model, process, and technology platform that will enhance the 

way we carry out our mission. The solution introduces “value-add” features like a phase gate timeline, structured 

governance, and a visual means of tracking progress. It also introduces a Product Closeout phase, wherein data 

gathered and lessons learned inform future product development and enable continuous improvement. 

The MPL will help both individuals and business units integrate with each other, and allow the agency to more 

effectively operate as “One Mint.”

U.S. MINT POLICE CONDUCT EXTENSIVE COORDINATION EXERCISE 

In July 2017, the Mint conducted an extensive table-top exercise which encompassed all field facilities, Mint Police 

Chiefs, inspectors and other designated facilitators/evaluators, as well as with local, state and federal emergency 

agencies and law enforcement near the facility to improve joint operations and coordination. The main objectives of 

the exercise were to: 1) validate current Mint Police unit occupant and emergency action plans and procedures for 

Improvised Explosive Device (IED) threats in accordance with the Mint Police Hazardous Incident Plan; 2) evaluate 

current capability of the Mint Police field units to coordinate information sharing with local jurisdictions; and, 3) 

evaluate current capability of the Mint field police units to integrate resources with local jurisdictions in accordance 

with Mint Police Incident Command Protocols.
25

225TH ANNIVERSARY 

On April 2, 1792, a young nation took its first bold and official steps 

toward an unknown future. The passage of the Coinage Act of 1792 

officially established the United States Mint. April 2, 2017, marked the 

225th Anniversary of the 1792 Act of Congress that established the 

first United States Mint facility. 

For two and one quarter centuries, the Mint has manufactured the 

circulating coinage used across the country in daily transactions as 

instruments of national commerce. The Mint also produces coins and 

medals to honor and remember key persons, places, and events in 

American history. As the Nation and the Mint celebrate this historical 

milestone, it’s worth looking back at where the Mint started and how 

it has grown over the course of 225 years. 

The United States was less than a decade old when Congress debated

what the fledgling democracy might put on its coins. The final decision

was a simple one: every coin had to have an “impression emblematic of liberty.” Since then, emblematic figures of 

liberty have graced both numismatic and circulating American coins.

The first Mint building in the Mint system was constructed in Philadelphia, Pennsylvania. Although the modern Mint 

facility in Philadelphia remains an important national facility, the original building was significant in its day because 

it was the first building of the Republic raised under the newly signed Constitution of the United States of America. 

Today, the United States Mint consists of a headquarters building in Washington D.C. (non-coining operation), Mint 

facilities in Philadelphia, Denver, San Francisco, and West Point, and the bullion depository at Fort Knox. What 

started as a singular operation inside of “Ye Olde Mint” in the city of Philadelphia, then the national capital, has 

grown to become one of the foremost minting operations in the world. 

When the United States government began minting coins in 1792, the original Mint facility in Philadelphia was

hard-pressed to produce enough currency for our small country. As the country grew so did its demand for coins.

A lot has changed since 1792. The Mint is constantly evolving and innovating its manufacturing, sustainability,

and environmental best practices. The technology in use by the Mint today would have surely been described as 

“impossible” by even the most prominent visionaries of 1792. 

To commemorate this historic event, the Mint produced and released a collection of 2017 American Liberty 225th 

Anniversary products. The coins’ design is unique in that it portrays Liberty as an African-American woman, a

departure from previous classic designs. Our newest Lady Liberty is a modern rendition of this iconic figure that 

embodies the ideals of freedom and equality first set forth in our Declaration of Independence. On the coin, Liberty 

looks to the left, her chin set, her hair swept back, the slightest smile on her lips. On the reverse of the coin is the 

powerful image of an American bald eagle in flight. This is one of the most detailed and intricate designs of an 

eagle to be featured on American coinage. Every facet of the bird’s feathers is visible and its sharp eyes keenly

watch the horizon.

The Mint has a wonderfully storied history, and the making of coins has long fascinated the American public. For 225 

years, we have told the story of our country’s history, culture, traditions, and values by connecting America through 

coins. From the manufacture of superior work products to the protection of the national assets under our control, 

we execute our mission with unquestioned quality and integrity while providing outstanding customer service to 

the nation. All of the employees of the United States Mint are looking forward to serving the American people by 

continuing to manufacture and distribute circulating, precious metal and collectible coins and national medals, and 

by providing security for the assets entrusted to us for the next 225 years.
26

ANALYSIS OF SYSTEMS, CONTROLS,

AND LEGAL COMPLIANCE

The Mint is responsible for establishing and maintaining effective internal control over financial reporting and has 

made a conscious effort to meet the internal controls requirements of the Federal Managers’ Financial Integrity Act 

(FMFIA), the Federal Financial Management Improvement Act (FFMIA), Office of Management and Budget (OMB) 

Circular A-123, and the Government Accountability Office (GAO)’s Standards for Internal Control in the Federal 

Government. The Mint is operating in accordance with the procedures and standards prescribed by the Comptroller 

General and OMB guidelines.

The systems of management control for the Mint organization are designed to ensure that:

• Programs achieve their intended results;

• Resources are used consistent with overall mission;

• Programs and resources are free from waste, fraud, and mismanagement;

• Laws and regulations are followed;

• Controls are sufficient to minimize any improper or erroneous payments;

• Performance information is reliable;

• System security is in compliance with all relevant requirements;

• Continuity of operations planning in critical areas is sufficient to reduce risk to reasonable levels;

• Financial management systems are in compliance with Federal financial 

systems requirements, (i.e., FMFIA Section 4 and FFMIA);

• Complete and accurate data is reported on USASpending.gov; and

• Controls and policies are in place to prevent fraud and inappropriate use of government charge cards.

For all Mint responsibilities, unmodified assurance is provided herein that the above listed management control 

objectives, taken as a whole, were achieved by our organization during FY 2017. Specifically, this assurance is 

provided in accordance with Sections 2 and 4 of the FMFIA. The Mint further assures that its financial management 

systems comply with the requirements imposed by the FFMIA.

The Mint management is responsible for establishing and maintaining adequate internal control over financial 

reporting, which includes safeguarding of assets and compliance with laws and regulations. The Mint conducted 

the required Treasury assessment of the effectiveness of its internal controls over financial reporting in accordance 

with OMB Circular A-123, Management’s Responsibility for Internal Control. Based on the results of this assessment, 

the Mint can provide unmodified assurance that its internal control over financial reporting as of June 30, 2017, was 

operating effectively. No material weaknesses were found in the design or operation of the internal control over 

financial reporting. In addition, the Mint is committed to maintaining effective internal control, as demonstrated by 

the following actions:

• Annual audits of the Mint’s financial statements pursuant to the Chief Financial Officer Act, as amended, including 

a) information revealed in preparing the financial statements, b) auditors reports on the financial statements,

and c) internal controls and compliance with laws and regulations and 

other materials related to preparing financial statements.

• Annual performance plans, reviews, and reports pursuant to the Government Performance 

Results Act, which include analysis and evaluation of performance measures.

• The development, tracking, and closure of corrective actions identified in the 

Financial Statement Audit and OMB Circular A-123 Assessment.

• Internal management and program reviews conducted for the purpose of assessing management controls.

• Reviews of financial systems for requirements compliance in conjunction with OMB Circular A-123 and FFMIA.

• Reviews of systems, applications, and contingency plans conducted pursuant to the Computer 

Security Act of 1987 and OMB Circular A-130, Management of Federal Information Resources.
27

The principal financial statements have been prepared to report the financial position and results of operations 

of the Mint, pursuant to the requirements of 31 U.S.C. § 3515(b). The statements have been prepared from the 

books and records of the Mint in accordance with generally accepted accounting principles for Federal entities and 

the formats prescribed by the Office of Management and Budget. The statements are in addition to the financial 

reports used to monitor and control budgetary resources, which are prepared from the same books and records. The 

statements should be read with the realization that they are for a component of the United States Government.

LIMITATIONS OF THE FINANCIAL STATEMENTS

• Annual assessments, reviews, and reporting performed in compliance with the Improper Payments Elimination and 

Recovery Act of 2010 and the Improper Payments Elimination and Recovery Improvement Act of 2012 (IPERIA).

• Reviews and reporting in compliance with the Federal Information Security Management Act (FISMA).

The Mint continues to make improvement in maintaining effective internal control over financial reporting and is 

committed to monitoring and improving its internal controls throughout the entire organization.
28

MESSAGE FROM THE ACTING

CHIEF FINANCIAL OFFICER

Kristie McNally

United States Mint

Acting Chief Financial Officer

As the Acting Chief Financial Officer at the United States Mint, I am pleased to present 

the Fiscal Year 2017 Annual Report. Furthermore, it is truly my pleasure to report that

the Mint’s independent auditors have once again rendered an unmodified or “clean” 

audit opinion on these financial statements. I would like to take this time to personally 

thank all of the dedicated men and women of the United States Mint for their hard

work and attention to detail toward making Fiscal Year 2017 yet again an overall

success with impressive results for our country. 

This has been an exciting year for the Mint. On April 2, 2017, we celebrated the 225th 

anniversary of the 1792 Act of Congress that established the first Mint in Philadelphia. 

Today, the Mint continues its mission by producing circulating coins as well as 

commemorative products and medals that memorialize important moments in United 

States history. 

As the financial statements show, the Mint continues to remain in good fiscal health in its 225th year. Continued 

efforts to control costs, increase efficiency, and strategically reserve resources have provided a solid foundation that 

enables the Mint to be flexible when meeting coin demand. While striving to increase efficiencies and control costs, 

customer service continues to be at the forefront of our ideals to ensure that we effectively meet the needs of both 

external and internal customers. These efforts enabled the Mint to return $250 million in seigniorage to the Treasury 

General Fund to reduce the United States’ interest on debt. 

In FY 2017, demand for circulating coins decreased to 14.1 billion coins, down 13.7 percent from last year. 

Shipments for all denominations decreased compared to last year and circulating revenue decreased 21.0 percent 

to $871.8 million. Seigniorage decreased 32.3 percent to $391.5 million along with seigniorage per dollar issued 

decreasing to $0.45 from $0.52 last year.

FY 2017 featured the return of platinum bullion sales for the Mint. In spite of this, demand for bullion coins slowed 

in FY 2017 compared to last year. The Mint sold 24.7 million ounces of gold, silver, platinum, and palladium 

bullion coins, a decrease of 20.4 million ounces from last year. Total bullion coin revenue decreased 33.9 percent 

to $1,378.9 million in FY 2017, primarily due to a 41.5 percent decrease in silver bullion coin revenues from lower 

demand and higher spot prices. Bullion coin net income decreased 80.3 percent to $10.9 million and bullion coin 

net margin decreased to 0.8 percent compared to 2.7 percent last year.

A highlight of the FY 2017 bullion program – the Mint’s first American Eagle Palladium Bullion Coin was produced. 

The coin was made available to authorized purchasers on September 25th, and the program completely sold out the 

first day the coin was offered. Investors quickly responded to the addition of this precious metal, and its successful 

launch was the result of the dedicated team of Mint employees who are proud to be a part of this 225 year old entity.

In concert with the decrease in bullion and circulating coinage, FY 2017 demand for numismatics decreased 6.1 

percent to 3.9 million units. Numismatic revenues decreased due to decreases in Presidential and First Spouse coins. 

Numismatic net income decreased 44.3 percent to $19.2 million (before protection expenses). Numismatic net 

margin decreased to 5.0 percent compared to 8.4 percent last year.

The statements presented herein comply with accounting standards issued by the Federal Accounting Standards 

Advisory Board (FASAB). The FASAB is designated by the American Institute of Certified Public Accountants as the 

standard-setting body for the financial statements of Federal Government entities, with respect to establishment 

of the United States Generally Accepted Accounting Principles. In addition, the Mint conducted a comprehensive 

assessment of the effectiveness of internal controls over financial reporting. Based upon the results of this review, 

the Mint can provide unmodified assurance that its internal controls over financial reporting are operating effectively 

in accordance with Office of Management and Budget Circular A-123. 
29

As Mint employees, we are proud of the deep historical roots of this great organization and the Mint’s continued 

financial strength. We remain dedicated to helping lead the Mint’s efforts to operate in the most cost effective 

manner and after 225 years, we will continue to adhere to sound fiscal principles, look for ways to improve the 

financial results of operations, and invest wisely in support of our mission to serve our customers. 

Kristie McNally, Acting Chief Financial Officer
30

30

Independent Auditors’ Report

Inspector General 

Department of the Treasury 

Acting Deputy Director 

United States Mint: 

Report on the Financial Statements 

We have audited the accompanying financial statements of the United States Mint, which comprise the balance 

sheets as of September 30, 2017 and 2016, and the related statements of net cost, changes in net position, 

and budgetary resources for the years then ended, and the related notes to the financial statements. 

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in 

accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and 

maintenance of internal control relevant to the preparation and fair presentation of financial statements that are 

free from material misstatement, whether due to fraud or error. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted 

our audits in accordance with auditing standards generally accepted in the United States of America, in 

accordance with the standards applicable to financial audits contained in Government Auditing Standards

issued by the Comptroller General of the United States, and in accordance with Office of Management and 

Budget (OMB) Bulletin No. 17-03, Audit Requirements for Federal Financial Statements. Those standards and 

OMB Bulletin No. 17-03 require that we plan and perform the audit to obtain reasonable assurance about 

whether the financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the 

financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of 

the risks of material misstatement of the financial statements, whether due to fraud or error. In making those 

risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation 

of the financial statements in order to design audit procedures that are appropriate in the circumstances, but 

not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we 

express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and 

the reasonableness of significant accounting estimates made by management, as well as evaluating the overall 

presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 

audit opinion. 

Opinion on the Financial Statements 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial 

position of the United States Mint as of September 30, 2017 and 2016, and its net costs, changes in net 

position, and budgetary resources for the years then ended in accordance with U.S. generally accepted 

accounting principles. 

KPMG LLP is a Delaware limited liability partnership and the U.S. member

firm of the KPMG network of independent member firms affiliated with 

KPMG International Cooperative (“KPMG International”), a Swiss entity. 

KPMG LLP

Suite 12000

1801 K Street, NW

Washington, DC 20006
3131

Other Matters 

Required Supplementary Information 

U.S. generally accepted accounting principles require that the information in the Management’s Discussion and 

Analysis (including Analysis of Systems, Controls and Legal Compliance, and Limitations of the Financial 

Statements) and Required Supplementary Information sections be presented to supplement the basic financial 

statements. Such information, although not a part of the basic financial statements, is required by the Federal 

Accounting Standards Advisory Board who considers it to be an essential part of financial reporting for placing 

the basic financial statements in an appropriate operational, economic, or historical context. We have applied 

certain limited procedures to the required supplementary information in accordance with auditing standards 

generally accepted in the United States of America, which consisted of inquiries of management about the 

methods of preparing the information and comparing the information for consistency with management’s 

responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audits 

of the basic financial statements. We do not express an opinion or provide any assurance on the information 

because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any 

assurance. 

Other Information

Our audits were conducted for the purpose of forming an opinion on the basic financial statements as a whole. 

The Acting Deputy Director’s Letter, the information on pages 2 and 3, Organizational Profile, The United 

States Mint at a Glance, Message from the Acting Chief Financial Officer, Other Information, and Appendix I: 

FY 2017 Coin and Medal Products are presented for purposes of additional analysis and are not a required part 

of the basic financial statements. Such information has not been subjected to the auditing procedures applied in 

the audits of the basic financial statements, and accordingly, we do not express an opinion or provide any 

assurance on it. 

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 8, 2017 

on our consideration of the United States Mint’s internal control over financial reporting and our report dated 

December 8, 2017 on our tests of its compliance with certain provisions of laws, regulations, and contracts and 

other matters. The purpose of those reports is to describe the scope of our testing of internal control over 

financial reporting and compliance and the result of that testing, and not to provide an opinion on the internal 

control over financial reporting or on compliance. Those reports are an integral part of an audit performed in 

accordance with Government Auditing Standards in considering the United States Mint’s internal control over 

financial reporting and compliance. 

Washington, DC 

December 8, 2017 
32

DEPARTMENT OF THE TREASURY UNITED STATES MINT

BALANCE SHEETS

As of September 30, 2017 and 2016

(dollars in thousands) 2017 2016

Assets

Intragovernmental:

 Fund Balance with Treasury (Note 3) $818,889 $727,959 

 Advances and Prepayments (Note 5) 1,858 2,181 

Total Intragovernmental Assets 820,747 730,140 

 Custodial Gold and Silver Reserves (Note 6) 10,493,740 10,493,740 

 Accounts Receivable, Net (Note 4) 11,195 15,293 

 Inventory (Notes 7 & 20) 666,427 736,466 

 Supplies 14,948 14,212 

 Property, Plant and Equipment, Net (Note 8) 187,663 188,114 

 Advances and Prepayments (Note 5) 1 1 

Total Non-Intragovernmental Assets $11,373,974 $11,447,826 

Total Assets (Notes 2 and 14) $12,194,721 $12,177,966 

Heritage Assets (Note 9)

Liabilities

Intragovernmental:

 Accounts Payable $273 $183 

 Accrued Workers' Compensation and Benefits 7,918 8,084 

Total Intra-governmental Liabilities 8,191 8,267 

 Custodial Liability to Treasury (Note 6) 10,493,740 10,493,740 

 Accounts Payable 30,828 130,705 

 Surcharges payable (Note 3) 3,685 5,036 

 Accrued Payroll and Benefits 18,231 17,774 

 Other Actuarial Liabilities 30,982 30,931 

 Unearned Revenues 962 578 

Total Non-Intragovernmental Liabilities $10,578,428 $10,678,764 

Total Liabilities (Notes 10 and 14) $10,586,619 $10,687,031 

Commitments and Contingencies (Notes 12 and 13)

Net Position

Cumulative Results of Operations - Funds from Dedicated Collections (Note 14) 1,608,102 1,490,935 

Total Liabilities and Net Position $12,194,721 $12,177,966

The accompanying notes are an integral part of these financial statements.
33

DEPARTMENT OF THE TREASURY UNITED STATES MINT 

STATEMENTS OF NET COST

For the years ended September 30, 2017 and 2016

(dollars in thousands) 2017 2016

Numismatic Production and Sales

 Gross Cost $1,733,591 $2,402,850 

 Less Earned Revenue (1,753,474) (2,467,131)

Net Program Cost (Revenue) (19,883) (64,281)

Numismatic Production and Sales of Circulating Coins

 Gross Cost 2,439 5,590 

 Less Earned Revenue (2,439) (5,590)

Net Program Cost (Revenue) - - 

Circulating Production and Sales 

 Gross Cost 480,446 525,535 

 Less Earned Revenue (Note 16) (480,446) (525,535)

Net Program Cost (Revenue) - - 

Net Cost (Revenue) Before Protection of Assets (19,883) (64,281)

Protection of Assets

 Protection Costs 45,519 45,017 

 Less Earned Revenue - - 

Net Cost of Protection of Assets 45,519 45,017 

Net Cost (Revenue) from Operations (Notes 14 and 15) $25,636 ($19,264)

The accompanying notes are an integral part of these financial statements.
34

DEPARTMENT OF THE TREASURY UNITED STATES MINT

STATEMENTS OF CHANGES IN NET POSITION

For the years ended September 30, 2017 and 2016

(dollars in thousands) 2017 2016

Cumulative Results of Operations

Net Position, Beginning of Year - Funds from Dedicated Collections $1,490,935 $1,465,479

Financing Sources:

 Transfers to the Treasury General Fund Budget (19,000) (61,000)

 Transfers to the Treasury General Fund Non-Budget (250,000) (550,000)

 Other Financing Sources (Seigniorage) (Note 16) 401,680 604,217 

 Imputed Financing Sources (Note 11) 10,123 12,975 

Total Financing Sources 142,803 6,192 

Net Revenue from Operations (25,636) 19,264 

Net Position, End of Year - Funds from Dedicated Collections (Note 14) $1,608,102 $1,490,935 

The accompanying notes are an integral part of these financial statements.
35

DEPARTMENT OF THE TREASURY UNITED STATES MINT

STATEMENTS OF BUDGETARY RESOURCES

For the years ended September 30, 2017 and 2016

(dollars in thousands) 2017 2016

Budgetary Resources

Unobligated balance, brought forward, October 1 $300,731 $576,217 

Recoveries of prior-year unpaid obligations 17,790 16,618 

Other changes in unobligated balance (18,939) (57,941)

Unobligated balance from prior year budget authority, net 299,582 534,894 

Spending Authority from Offsetting Collections 2,386,730 3,043,410 

Total Budgetary Resources $2,686,312 $3,578,304

Status of Budgetary Resources

New Obligations and Upward Adjustments (Note 17) $2,270,391 $3,277,573 

Unobligated balance, end of year $415,921 300,731 

 Apportioned 415,887 183,851 

 Unapportioned 34 116,880 

Total Budgetary Resources $2,686,312 $3,578,304

Change in Obligated Balances

Unpaid obligations:

 Unpaid obligations, brought forward, October 1 $427,228 $431,928

New Obligations and Upward Adjustments (Note 17) 2,270,391 3,277,573 

Gross Outlays (2,276,861) (3,265,655)

Recoveries of Prior-Year Unpaid Obligations (17,790) (16,618)

Unpaid obligations, end of year $402,968 $427,228 

Memorandum (non-add) entries:

Obligated balance, start of year $427,228 $431,928 

Obligated balance, end of year $402,968 $427,228 

Budget Authority and Outlays, Net:

Budget Authority, gross $2,386,730 $3,043,410 

Actual offsetting collections (2,386,791) (3,046,469)

Change in uncollected customer payments from Federal Sources - -

Recoveries of prior year paid obligations 61 3,059 

Budget Authority, Net $- $- 

Outlay, gross $2,276,861 $3,265,655 

Actual offsetting collections (2,386,791) (3,046,469)

Outlays, net (109,930) 219,186 

Distributed offsetting receipts (1) (2)

Agency Outlays, Net ($109,931) $219,184 

The accompanying notes are an integral part of these financial statements.
36

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY 

Established in 1792, the United States Mint (Mint) is a bureau of the Department of the Treasury 

(Treasury). The mission of the Mint is to serve the American people by manufacturing and distributing 

circulating, precious metal and collectible coins, national medals, and providing security over assets 

entrusted to us. Numismatic products include medals; proof coins; uncirculated coins; platinum, gold, 

palladium, and silver bullion coins; commemorative coins; and related products or accessories. Custodial 

assets consist of the United States gold and silver reserves. These custodial assets are often referred to as 

“deep storage” and “working stock,” and are reported on the Balance Sheet.

The production of numismatic products is financed through sales to the public. The production of 

circulating coinage is financed through sales of coins at face value to the Federal Reserve Banks (FRBs). 

Additionally, the Mint sells certain circulating products directly to the public as numismatic items. 

Activities related to protection of United States gold and silver reserves are funded by the Mint Public 

Enterprise Fund (PEF). Pursuant to Public Law 104-52, Treasury, Postal Service, and General Government 

Appropriation Act for FY 1996, as codified at 31 U.S.C. § 5136, the PEF was established to account for 

all receipts and expenses related to production and sale of numismatic items and circulating coinage, as 

well as protection activities. Expenses accounted for in the PEF include the entire cost of operating the 

bureau. Any amount in the PEF that is determined to be in excess of the amount required by the PEF is 

transferred to the Treasury General Fund.

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

Separate Schedules of Custodial Deep Storage Gold and Silver Reserves have been prepared for the 

deep storage portion of the United States gold and silver reserves for which the Mint serves as custodian.

BASIS OF ACCOUNTING AND PRESENTATION 

The accompanying financial statements were prepared based on the reporting format promulgated 

by Office of Management and Budget (OMB) Circular A-136, Financial Reporting Requirements, and 

in accordance with accounting standards issued by the Federal Accounting Standards Advisory Board 

(FASAB). The Mint’s financial statements have been prepared to report the financial position, net cost 

of operations, changes in net position, and budgetary resources, as required by 31 U.S.C. § 5134.

Management uses estimates and assumptions in preparing financial statements. Those estimates and 

assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets 

and liabilities, and the reported revenues and expenses. Actual results could differ from

those estimates.

Accounts subject to estimates include, but are not limited to, depreciation, imputed costs, payroll 

and benefits, accrued worker’s compensation, allowance for uncollectible accounts receivable, and 

unemployment benefits.

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

the accrual method, revenues and other financing sources are recognized when earned and expenses 

are recognized when a liability is incurred, without regard to receipt or payment of cash.

NOTES TO THE FINANCIAL STATEMENTS

For the Years Ended September 30, 2017 and 2016
37

EARNED REVENUES AND OTHER FINANCING SOURCES (SEIGNIORAGE)

Numismatic Sales: Revenue from numismatic sales to the public is recognized when products are 

shipped to customers. Prices for most numismatic products are based on the product cost plus a 

reasonable net margin. Bullion coins are priced based on the market price of the precious metals plus a 

premium to cover manufacturing, marketing, and distribution costs.

Numismatic Sales of Circulating Coins: Specially packaged products containing circulating coins are sold 

directly to the public rather than to the FRB. These products are treated as a circulating and numismatic 

hybrid product. Revenue is recognized when products are shipped to customers.

Circulating Sales: The PEF provides for the sale of circulating coinage at face value to the FRBs. Revenue 

from the sale of circulating coins is recognized when the product is shipped to the FRBs. Revenue from 

the sale of circulating coins to the FRBs and numismatic sales of circulating coins to the public is limited 

to the recovery of the cost of manufacturing and distributing those coins. Seigniorage is a financing 

source and not considered as revenue.

Other Financing Sources (Seigniorage): Seigniorage equals the face value of newly minted coins, 

less the cost of production (which includes the cost of metal, manufacturing, and transportation). 

Seigniorage adds to the government’s cash balance, but unlike the payment of taxes or other receipts, 

it does not involve a transfer of financial assets from the public. Instead, it arises from the exercise of the 

government’s sovereign power to create money and the public’s desire to hold financial assets in the 

form of coins. Therefore, the President’s budget excludes seigniorage from receipts and treats it as a 

means of financing.

Rental Revenue: The Mint sublets office space at cost to another federal entity in the leased building in 

Washington, D.C. A commercial vendor subleases a portion of the first floor space of the same building.

FUND BALANCE WITH TREASURY 

All cash is maintained at the Treasury. Fund Balance with Treasury is the aggregate amount of the 

Mint’s cash accounts with the United States government’s central accounts and from which the bureau 

is authorized to make expenditures. It is an asset because it represents the Mint’s claim to United 

States government resources.

ACCOUNTS RECEIVABLE 

Accounts receivable are amounts owed to the Mint from the public and other federal entities. An 

allowance for uncollectible accounts receivable is established for all accounts that are more than 120 

days past due. However, the Mint will continue collection action on those accounts that are more than 

120 days past due, as specified by the Debt Collection Improvement Act of 1996.

INVENTORIES 

Inventories of circulating and numismatic coinage are valued based on standard cost (which 

approximates historical cost) or valued at the lower of cost or market. The costs of the metal and 

fabrication components of the inventories are determined using a weighted average inventory 

methodology. Conversion costs (i.e., the cost to convert the fabricated blank into a finished coin) 

are valued using a standard cost methodology. The Mint uses three classifications for inventory: raw 

material (raw metal, unprocessed coil, or blanks), work-in-process (WIP – material being transformed to 

finished coins), and finished goods (coins that are packaged or bagged and ready for sale or shipment 

to the public or the FRB).
38

UNITED STATES CUSTODIAL GOLD AND SILVER RESERVES 

United States gold and silver reserves consist of both “deep storage” and “working stock” gold

and silver.

Deep Storage is defined as that portion of the United States gold and silver reserves which the Mint 

secures in sealed vaults. Deep storage gold comprises the vast majority of the bullion reserve and 

consists primarily of gold bars. Deep storage silver is also primarily in bar form.

Working Stock is defined as that portion of the United States gold and silver bullion reserves which 

the Mint can use as the raw material for minting coins. Working stock gold comprises only about one 

percent of the gold bullion reserve and consists of bars, blanks, unsold coins, and condemned coins. 

Similarly, working stock silver consists of bars, blanks, unsold coins, and condemned coins.

Treasury allows the Mint to use some of its gold as working stock in the production of gold coins. This 

allows the Mint to avoid the market risk associated with buying gold in advance of the sales date of the 

gold coins. The Mint replenishes the Treasury gold working stock at or just prior to the time the coins 

are sold. Generally, the Mint does not deplete the working stock used in production. Instead, the Mint 

will purchase a like amount of gold on the open market to replace the working stock used.

Treasury also allows the Mint to use silver as working stock. However, Treasury does not have enough 

silver to fulfill all Mint manufacturing needs. Accordingly, for the purpose of avoiding market risk 

associated with owning silver, the Mint has entered into a silver hedging arrangement (see Note 20).

SUPPLIES 

Supplies are items that are not considered inventory and are not a part of the finished product. These 

items include plant engineering and maintenance supplies, as well as die steel and coin dies. Supplies 

are accounted for using the consumption method, in which supplies are recognized as assets upon 

acquisition and expensed as they are consumed.

ADVANCES AND PREPAYMENTS 

Payments in advance of the receipt of goods and services are recorded as an asset at the time of 

prepayment, and are expensed when related goods and services are received or used.

PROPERTY, PLANT, AND EQUIPMENT 

Property, plant, and equipment are valued at cost, less accumulated depreciation. The Mint’s threshold 

for capitalizing new property, plant, and equipment is $25,000 for single purchases and $500,000 for 

bulk purchases. Depreciation is computed on a straight-line basis over the estimated useful lives of the 

related assets as follows:

Computer Equipment 3 to 5 years

Software 2 to 10 years

Machinery and Equipment 7 to 20 years

Structures, Facilities, and Leasehold Improvements 10 to 30 years

Major alterations and renovations are capitalized over a 20-year period, or the remaining useful life of 

the asset (whichever is shorter) and depreciated using the straight-line method, while maintenance and 

repair costs are charged to expense as incurred. There are no restrictions on the use or convertibility of 

property, plant, and equipment.

HERITAGE ASSETS 

Heritage assets are items that are unique because of their historical, cultural, educational, or artistic 

importance. These items are collection-type assets that are maintained for exhibition and are

preserved indefinitely.
39

LIABILITIES 

Liabilities represent actual and estimated amounts likely to be paid as a result of transactions or events 

that have already occurred. All liabilities covered by budgetary resources can be paid from revenues 

received by the PEF.

SURCHARGES 

Public laws authorizing commemorative coin and medal programs often require that the sales price of 

each coin include an amount called a surcharge. A surcharge is an authorized collection and payment 

of funds to a qualifying organization for the purposes specified. A surcharges payable account is 

established for surcharges collected, but not yet paid, to designated recipient organizations.

Recipient organizations cannot receive surcharge payments unless all of the Mint’s operating costs 

for the coin program are fully recovered. The Mint may make interim surcharge payments during a 

commemorative program if the recipient organization meets the eligibility criteria in the authorizing 

public law, if the recovery of all costs of the program is determinable, and if the Mint is assured it is 

not at risk of a loss. Additionally, recipient organizations must demonstrate that they have raised from 

private sources an amount equal to or greater than the surcharges collected based on sales. Recipient 

organizations must also prove compliance with Title VI of the Civil Rights Act of 1964 and other 

applicable civil rights laws. A recipient organization has two years from the end of the program to meet 

the matching funds requirement.

FUNDS FROM DEDICATED COLLECTIONS 

Pursuant to 31 U.S.C. § 5136, the PEF was established as the sole funding source for Mint activities. 

The PEF meets the requirements of a fund from dedicated collections as defined in Statement of 

Federal Financial Accounting Standards (SFFAS) No. 43, Funds from Dedicated Collections: Amending 

SFFAS No. 27, Identifying and Reporting Earmarked Funds. As non-entity and non-PEF assets, the 

United States gold and silver bullion reserves are not considered to be funds from dedicated collections.

UNEARNED REVENUES 

These are amounts received for numismatic orders which have not yet been shipped to the customer.

RETURN POLICY 

If for any reason a numismatic customer is dissatisfied, the entire product must be returned within 

seven days of receiving the order to receive a refund or replacement. Shipping charges are not 

refunded. Further, the Mint will not accept partial returns or issue partial refunds. Historically, the Mint 

receives few returns, which are immaterial. Therefore, no reserve for returns is considered necessary.

SHIPPING AND HANDLING 

The Mint reports shipping and handling costs of circulating coins and numismatic products as a cost 

of goods sold. General postage costs for handling administrative mailings are reported as part of the 

Mint’s general and administrative expenses.

ANNUAL, SICK, AND OTHER LEAVE 

Annual leave is accrued when earned and reduced as leave is taken. The balance in the accrued leave 

account is calculated using current pay rates. Sick leave and other types of non-vested leave are 

charged to operating costs as they are used.

ACCRUED WORKERS’ COMPENSATION AND OTHER ACTUARIAL LIABILITIES 

The Federal Employees’ Compensation Act (FECA) provides income and medical cost protection 

to cover Federal civilian employees injured on the job or who have developed a work-related 

occupational disease, and to pay beneficiaries of employees whose deaths are attributable to jobrelated injuries or occupational disease. The FECA program is administered by the United States 

Department of Labor (DOL), which pays valid claims and subsequently seeks reimbursement from the 

Mint for these paid claims. The FECA liability is based on two components. The first component is 

based on actual claims paid by DOL but not yet reimbursed by the Mint. There is generally a two- to 

three-year time period between payment by DOL and DOL’s request for reimbursement from the Mint. 
40

The second component is the actuarial liability, which estimates the liability for future payments as a 

result of past events. The actuarial liability includes the expected liability for death, disability, medical, 

and miscellaneous costs for approved compensation cases.

PROTECTION COSTS 

United States gold and silver reserves are in the custody of the Mint, which is responsible for 

safeguarding the reserves. These costs are borne by the Mint, but are not directly related to the 

circulating or numismatic coining operations of the Mint. The Protection Department is a separate 

function from coining operations and is responsible for safeguarding the reserves, as well as Mint 

employees and facilities.

OTHER COSTS AND EXPENSES (MUTILATED AND UNCURRENT) 

Other costs and expenses consist primarily of returns of mutilated or uncurrent coins to the Mint. Coins 

that are chipped, fused, and/or not machine-countable are classified as mutilated. The Mint reimburses 

the entity that sent in the mutilated coins using weight formulas that estimate the face value of these 

coins. Uncurrent coins are worn, but machine-countable, and their genuineness and denominations are 

still recognizable.

Uncurrent coins are replaced with new coins of the same denomination by the FRBs. The FRBs then 

seek replacement coins from the Mint. All mutilated or uncurrent coins received by the Mint are 

defaced and subsequently sold to its fabrication contractors to be processed into coils or blanks to be 

used in future coin production.

TAX EXEMPT STATUS 

As a bureau of the Federal Government, the Mint is exempt from all taxes imposed by any governing 

body, whether it is a federal, state, commonwealth, local, or foreign government.

CONCENTRATIONS 

The Mint purchases the coil and blanks used in the production of circulating coins from three

vendors at competitive market prices. The Mint also purchases precious metal blanks from four 

different suppliers.

CONTINGENT LIABILITIES 

Certain conditions may exist as of the date of the financial statements that may result in a loss to the 

government, but which will be resolved only when one or more future events occur or fail to occur. 

The Mint recognizes a loss contingency when the future outflow or other sacrifice of resources is 

probable and reasonably estimable. Loss contingencies that are determined by management to have a 

reasonably possible chance of occurring or that cannot be estimated are included as a footnote to the 

financial statements. Contingent liabilities considered remote are generally not disclosed unless they 

involve guarantees, in which case the nature of the guarantee is disclosed.

TRANSFERS TO THE TREASURY GENERAL FUND 

The Mint may transfer amounts determined to be in excess of the amounts required for bureau 

operations and programs to the Treasury General Fund periodically throughout the fiscal year. 

Seigniorage derived from the sale of circulating coins and the sale of numismatic products containing 

circulating coins is a non-budget receipt to the Treasury General Fund. Non-budget means that these 

funds cannot be used for currently funded programs or to reduce the annual budget deficit. Instead, 

they are used solely as a financing source (i.e., they reduce the amount of cash that Treasury has to 

borrow to pay interest on the national debt).
41

Revenue generated from the sale of numismatic products is transferred to the Treasury General Fund 

as a budget receipt. Unlike seigniorage, the numismatic transfer amount is available to the Federal 

Government as current operating cash or it can be used to reduce the annual budget deficit.

BUDGETARY RESOURCES 

The Mint does not receive an appropriation from the Congress. Instead, the bureau receives all 

financing from the public and the FRBs, and receives an apportionment of those funds from OMB. This 

apportionment is considered a budgetary authority, which allows the Mint to spend the funds. The 

Mint’s budgetary resources consist of unobligated balances, transfers, and spending authority from 

offsetting collections, which is net of amounts that are permanently not available. “Permanently not 

available” funds are budget transfers to the Treasury General Fund.

DERIVATIVE FINANCIAL INSTRUMENTS 

The Mint engages in an economic hedging program to avoid the effects of fluctuating silver costs as a 

result of the changes in market prices. The derivatives used for economic hedging in this program do 

not qualify for hedge accounting. At the time of purchase of silver inventory used in the production of 

silver coins, the Mint economically hedges its silver inventory using a silver forward derivative contract. 

The silver forward derivative contract is settled as silver coins are sold to authorized purchasers, and a 

gain or loss is recognized, which is expected to substantially offset the gain or loss on the fluctuation in 

price of the silver inventory during that time the forward position remains open.

Each transaction with the trading partner carries a small transaction fee; the fees net to a cost of onehalf cent per ounce. The Mint incurred $121 thousand in hedging fees in FY 2017, compared to $184 

thousand incurred in FY 2016.

2. NON-ENTITY ASSETS

Components of Non-entity Assets at September 30 are as follows:

(dollars in thousands) 2017 2016

Custodial Gold Reserves (Deep Storage) $10,355,539 $10,355,539 

Custodial Silver Reserves (Deep Storage) 9,148 9,148 

Custodial Gold Reserves (Working Stock) 117,514 117,514 

Custodial Silver Reserves (Working Stock) 11,539 11,539 

Total Non-entity Assets 10,493,740 10,493,740 

Total Entity Assets 1,700,981 1,684,226 

Total Assets $12,194,721 $12,177,966 

Non-entity assets are those that are held and managed by the Mint on behalf of the U.S. government 

but are not available for use by the Mint. United States gold and silver bullion reserves, for which the 

Mint is custodian, are non-entity assets.
42

3. FUND BALANCE WITH TREASURY

Fund Balance with Treasury at September 30 consist of:

(dollars in thousands) 2017 2016

Revolving Fund $818,889 $727,959 

Total Fund Balance with Treasury $818,889 $727,959 

Status of Fund Balance with Treasury

Unobligated Balance $415,921 $300,731 

Obligated Balance, Not Yet Disbursed 402,968 427,228 

Total $818,889 $727,959 

The Mint does not receive appropriated budget authority. The Fund Balance with Treasury is entirely 

available for use to support Mint operations. At September 30, 2017 and 2016, the revolving fund 

balance included $3.7 million and $5 million, respectively, in restricted amounts for possible payment 

of surcharges to recipient organizations.

4. ACCOUNTS RECEIVABLE, NET

Components of accounts receivable are as follows:

SEPTEMBER 30, 2017

(dollars in thousands) Gross Receivables Allowance Net Receivables

Intragovernmental $ - $ - $ - 

With the Public 11,485 (290) 11,195 

Total Accounts Receivable $11,485 ($290) $11,195 

SEPTEMBER 30, 2016

(dollars in thousands) Gross Receivables Allowance Net Receivables

Intragovernmental $ - $ - $ - 

With the Public 15,956 (663) 15,293 

Total Accounts Receivable $15,956 ($663) $15,293 

In FY 2017 and FY 2016, the Mint had no Intragovernmental accounts receivable. Receivables with 

the public at September 30, 2017 are $11.5 million, of which $8.6 million is owed by fabricators for 

scrap, webbing, and mutilated coin. The remaining $2.9 million is owed by the public for numismatic 

products. This compares to receivables with the public at September 30, 2016, of $16 million, of which 

$11.4 million was owed by fabricators for scrap and webbing, in addition to the $4.6 million owed by 

the public for numismatic products. The allowance for doubtful accounts is the balance of the accounts 

receivable with the public that is past due by 120 days or more. Collection action continues on these 

accounts, but an allowance is recorded.

5. ADVANCES AND PREPAYMENTS

The components of advances and prepayments at September 30 are as follows:
43

(dollars in thousands) 2017 2016

Intragovernmental $1,858 $2,181 

With the Public 1 1 

Total Other Assets $1,859 $2,182 

In FY 2017, the Mint had an Intragrovernmental advances and prepayment balance of approximately 

$1.9 million, which represented payments made to the United States Postal Service for product 

delivery services as of September 30, 2017, compared to approximately $2.2 million paid at 

September 30, 2016. Advances with the public for both FY 2017 and 2016 are outstanding travel 

advances to Mint employees who were traveling on government business.

6. CUSTODIAL GOLD AND SILVER RESERVES

As custodian, the Mint is responsible for safeguarding much of the United States gold and silver reserves, 

which include deep storage and working stock. The asset and the custodial liability to Treasury are 

reported on the Balance Sheet at statutory rates. In accordance with 31 U.S.C. § 5117(b) and 31 U.S.C.

§ 5116(b)(2), statutory rates of $42.2222 per fine troy ounce (FTO) of gold and no less than $1.292929292 

per FTO of silver are used to value the custodial assets held by the Mint.

The market values for gold and silver as of September 30 are determined by the London Gold Fixing (PM) 

rate. Amounts and values of gold and silver in custody of the Mint as of September 30 are as follows:

2017 2016

Gold - Deep Storage:

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

 Market Value ($ per FTO) $1,283.10 $1,322.50 

 Market Value ($ in thousands) $314,696,823 $324,360,181 

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

Gold - Working Stock:

 Inventories (FTO) 2,783,219 2,783,219 

 Market Value ($ per FTO) $1,283.10 $1,322.50 

 Market Value ($ in thousands) $3,571,148 $3,680,807 

 Statutory Value ($ in thousands) $117,514 $117,514 

Silver - Deep Storage:

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

 Market Value ($ per FTO) $16.86 $19.35 

 Market Value ($ in thousands) $119,287 $136,905 

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

Silver-Working Stock

 Inventories (FTO) 8,924,829 8,924,829 

 Market Value ($ per FTO) $16.86 $19.35 

 Market Value ($ in thousands) $150,473 $172,695 

 Statutory Value ($ in thousands) $11,539 $11,539 

Total Market Value of Custodial Gold

 and Silver Reserves ($ in thousands) $318,537,731 $328,350,588 

Total Statutory Value of Custodial Gold

 and Silver Reserves ($ in thousands) $10,493,740 $10,493,740 
44

7. INVENTORY

The components of inventories at September 30 are summarized below:

(dollars in thousands) 2017 2016

Raw Materials $169,559 $288,277 

Work-In-Process 266,816 194,445 

Inventory held for current sale 230,052 253,744 

Total Inventory $666,427 $736,466 

Raw materials consist of unprocessed materials and by-products of the manufacturing process and 

the metal value of unusable inventory, such as scrap or condemned coins, which will be recycled into 

a usable raw material. In addition, as of September 30, 2017 and 2016, the inventory includes $443 

million and $523.4 million, respectively, which are the market values of the silver hedged. Additional 

information can be found in Note 20. Work-in-process consists of semi-finished materials.

The Mint leases platinum and palladium to avoid the effects of fluctuating metal costs as a result of the 

changes in market prices. The Mint leases platinum for a fee of 1 percent of the asset’s value and leases 

palladium for fees that range between 4.5 percent to 5.15 percent. The Mint takes physical possession 

of the metal to manufacture the bullion coins. Upon sale to the customer, the Mint purchases the 

metal from the lessor on the same day for the same market price. In FY 2017 and FY 2016, the Mint 

paid $507 thousand and $254 thousand in leasing fees for platinum. In FY 2017, the Mint paid $438 

thousand in leasing fees for palladium.

8. PROPERTY, PLANT, AND EQUIPMENT, NET

Components of property, plant and equipment are as follows:

SEPTEMBER 30, 2017

(dollars in thousands) Asset Cost

Accumulated Depreciation 

and Amortization

Total Property, Plant 

and Equipment, Net

Land $2,529 $ - $2,529 

Structures, Facilities and Leasehold Improvements 223,903 (145,377) 78,526 

Computer Equipment 17,868 (15,455) 2,413 

ADP Software 4,774 (4,402) 372 

Construction-In-Progress 13,500 - 13,500 

Machinery and Equipment 321,749 (231,426) 90,323 

Total Property, Plant and Equipment, Net $584,323 ($396,660) $187,663 

SEPTEMBER 30, 2016

(dollars in thousands) Asset Cost

Accumulated Depreciation 

and Amortization

Total Property, Plant 

and Equipment, Net

Land $2,529 $ - $2,529 

Structures, Facilities and Leasehold Improvements 230,772 (150,742) 80,030 

Computer Equipment 25,467 (22,004) 3,463 

ADP Software 11,696 (11,334) 362 

Construction-In-Progress 11,641 - 11,641 

Machinery and Equipment 313,667 (223,578) 90,089 

Total Property, Plant and Equipment, Net $595,772 ($407,658) $188,114 
45

The land and buildings used to manufacture circulating coinage and numismatic products are owned 

by the Mint and located in Philadelphia, Denver, San Francisco, and West Point. In addition, the Mint 

owns the land and buildings at the United States Bullion Depository at Fort Knox. Construction-inprogress (CIP) represents assets that are underway, such as in the process of being readied for use, 

or which are being tested for acceptability, but which are not yet being fully utilized by the Mint and, 

therefore, not being depreciated. Depreciation and amortization expenses charged to operations 

during FY 2017 and FY 2016 were $28.7 million and $28.8 million, respectively.

9. HERITAGE ASSETS

The Mint maintains collections of heritage assets, which are any property, plant, or equipment that 

are retained by the Mint for their historic, natural, cultural, educational, or artistic value, or significant 

architectural characteristics. For example, the Mint’s historical artifacts include, among other things, 

examples of furniture and equipment used in the Mint’s facilities over the years, as well as examples 

of the coin manufacturing process, such as plasters, galvanos, dies, punches, and actual finished 

coins. The coin collections include examples of the various coins produced by the Mint over the years, 

separated into collections of pattern pieces/prototypes, coin specimens, quality samples, and exotic 

metal coin samples. The buildings housing the Mint’s facilities at Denver, West Point, San Francisco, 

and Fort Knox are all considered multi-use heritage assets. The Mint generally does not place a value 

on heritage assets, even though some of the coins and artifacts are priceless. However, the assets 

are accounted for, and controlled, for protection and conservation purposes. The following chart 

represents the Mint’s various collections and historical artifacts.

Quantity of Collections Held September 30

Coin Collections 2017 2016

Pattern Pieces/Prototypes 1 1

Coin Specimens 1 1

Quality Samples 1 1

Exotic Metal Coin Samples 1 1

Total 4 4

Quantity of Collections Held September 30

Historical Artifacts 2017 2016

Antiques/Artifacts 1 1

Plasters 1 1

Galvanos 1 1

Dies 1 1

Punches 1 1

Historical Documents 1 1

Multi-use heritage assets 4 4

Total 10 10
46

10. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

Components of Liabilities Not Covered by Budgetary Resources at September 30 are as follows:

(dollars in thousands) 2017 2016

Custodial Gold Reserves (Deep Storage) $10,355,539 $10,355,539 

Custodial Silver Reserves (Deep Storage) 9,148 9,148 

Working Stock Inventory-Gold 117,514 117,514 

Working Stock Inventory-Silver 11,539 11,539 

Total Liabilities Not Covered by Budgetary Resources $10,493,740 $10,493,740 

Total Liabilities Covered by Budgetary Resources 92,879 193,291 

Total Liabilities $10,586,619 $10,687,031 

Liabilities not covered by budgetary resources represent the Mint’s custodial liabilities to the Treasury 

that are entirely offset by United States gold and silver reserves held by the Mint on behalf of the 

federal government.

11. RETIREMENT PLANS, OTHER POST-EMPLOYMENT COSTS 

AND OTHER IMPUTED COSTS

The Mint contributes seven percent of basic pay for employees participating in the Civil Service 

Retirement System (CSRS). Most employees hired after December 31, 1983, are automatically covered 

by the Federal Employees’ Retirement System (FERS) and Social Security. A primary feature of FERS 

is that it offers a savings plan to which the Mint automatically contributes one percent of basic pay 

and matches employee contributions up to an additional four percent of basic pay. Employees can 

contribute a specific dollar amount or a percentage of their basic pay, as long as the annual dollar total 

does not exceed the Internal Revenue Code limit of $18,000 for calendar year 2017 (a $6,000 catch-up 

contribution can be given by participants age 50 and older in addition to the $18,000 contribution). 

Employees participating in FERS are covered by the Federal Insurance Contribution Act (FICA), for 

which the Mint contributes a matching amount to the Social Security Administration.

Although the Mint contributes a portion for pension benefits and makes the necessary payroll 

deductions, it is not responsible for administering either CSRS or FERS. Administering and reporting on 

pension benefit programs are the responsibilities of the Office of Personnel Management (OPM).

OPM has provided the Mint with certain cost factors that estimate the cost of providing the pension 

benefit to current employees. The cost factors of 32.8 percent of basic pay for CSRS-covered 

employees and 14.7 percent of basic pay for FERS-covered employees were in use for FY 2017. The 

CSRS and FERS factors were 33.5 percent and 15.1 percent, respectively, in FY 2016.

The amounts that the Mint contributed to the retirement plans and Social Security for the year ended 

September 30 are as follows:

(dollars in thousands) 2017 2016

Social Security System $7,789 $7,889

Civil Service Retirement System 587 707

Federal Employees Retirement System

 (Retirement and Thrift Savings Plan) 16,277 16,269

Total Retirement Plans and Other Post-Employment Costs $24,653 $24,865
47

The Mint also recognizes its share of the future cost of pension payments and post-retirement 

health and life insurance benefits for employees while they are still working with an offset classified 

as imputed financing. OPM continues to report the overall liability of the Federal Government and 

make direct recipient payments. OPM has provided certain cost factors that estimate the true cost of 

providing the post-retirement benefit to current employees. The cost factors relating to health benefits 

are $5,412 and $6,266 per employee enrolled in the Federal Employees Health Benefits Program in

FY 2017 and FY 2016, respectively. The cost factor relating to life insurance is two-one hundredths 

percent (.02 percent) of basic pay for employees enrolled in the Federal Employees Group Life 

Insurance Program for both FY 2017 and FY 2016.

The amount of imputed cost related to retirement plans and other post-employment costs incurred by 

the Mint for the year ended September 30 is as follows (before the offset for imputing financing):

(dollars in thousands) 2017 2016

Health Benefits $7,226 $9,592

Life Insurance 26 24

Pension Expense 1,869 2,689

Total Imputed Retirement and Postemployment Costs $9,121 $12,305

In addition to the pension and retirement benefits described above, the Mint records imputed costs 

and financing for Treasury Judgment Fund payments made on behalf of the Mint. Entries are made in 

accordance with FASAB Interpretation No. 2. For FY 2017, the Judgment Fund paid $332 thousand on 

behalf of the Mint for the clean-up of an EPA Superfund site. The EPA Superfund payment was part of a 

multi-year court order, which requires that the Mint and four other federal agencies pay for cleaning up 

the site. Payments are made by the Judgment Fund when the court determines that the site owner has 

submitted valid bills for clean-up work. For FY 2016, there were no payments by the Judgment Fund

on behalf of the Mint. Also during FY 2017 and FY 2016, the Mint received unreimbursed services 

(imputed financing) from another federal agency in the amount of approximately $670 thousand in

both years, respectively.

12. LEASE COMMITMENTS AND SUBSEQUENT EVENT

THE MINT AS LESSEE

The Mint leases office and warehouse space from commercial vendors, the General Services 

Administration (GSA), and the Bureau of Engraving and Printing. In addition, the Mint leases copiers 

and other office equipment from commercial vendors and vehicles from GSA. With the exception

of the commercial lease on an office building in Washington, D.C., all leases are one-year, or one-year

with renewable option years. On October 1, 2016, the Mint renewed its commercial lease on its 

headquarters building for a term of 20 years with no renewal option years.

Future Projected Payments: Leases

FY 2018 $10,933,950

FY 2019 9,690,310

FY 2020 9,760,777

FY 2021 9,126,793

FY 2022 9,347,570

After 5 Years 158,272,373

Total Future Operating Lease Payments $207,131,773 
48

THE MINT AS LESSOR 

The Mint sublets office space at cost to another federal entity in the leased Headquarters building 

in Washington, D.C. As of September 30, 2017, the Mint sublets approximately 4,500 square feet 

of office space to the U.S. Marshals Service. This sub-lease is an operating lease and subject to 

annual availability of funding. The Mint has also entered into an agreement to sublet space in the 

Headquarters building to a commercial tenant.

Future Projected Receipts: Building Sub-lease

FY 2018 $404,460 

FY 2019 404,460 

Total Future Operating Lease Receipts $808,920 

13. CONTINGENCIES

The 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 Mint generally would be satisfied from 

the PEF. Likewise, under the Notification and Federal Employee Antidiscrimination and Retaliation Act 

of 2002 (No FEAR Act, P. L. 107-174), settlements and judgments related to acts of discrimination and 

retaliation for whistle blowing will be paid from the PEF.

The Mint is also involved in employment related legal actions (e.g., matters alleging discrimination 

and other claims before federal courts, the Equal Employment Opportunity Commission, and the 

Merit Systems Protection Board) for which an unfavorable outcome is reasonably possible, but for 

which an estimate of potential loss cannot be determined at this time. In the opinion of management, 

the ultimate resolution of these actions will not have a material adverse effect on the Mint’s financial 

position or the results of its operations.

14. FUNDS FROM DEDICATED COLLECTIONS

Pursuant to 31 U.S.C. § 5136, all receipts from Mint operations and programs, including the production 

and sale of numismatic items, the production and sale of circulating coinage at face value to the FRB, 

the protection of government assets, and gifts and bequests of property, real or personal shall be 

deposited into the PEF and shall be available to fund its operations without fiscal year limitations. The 

PEF meets the requirements of funds from dedicated collections as defined in SFFAS No. 43, Funds 

from Dedicated Collections: Amending SFFAS No. 27, Identifying and Reporting Earmarked Funds. As 

non-entity and non-PEF assets, the United States gold and silver reserves are not included in the funds 

from dedicated collections.

15. INTRAGOVERNMENTAL COSTS AND EARNED REVENUE

Intragovernmental costs and earned revenue reflect transactions in which both the buyer and seller are 

federal entities. Revenue with the public reflects transactions for goods or services with a non-federal 

entity. The purpose for this classification is to enable the federal government to prepare consolidated 

financial statements. The following table provides earned revenues, gross cost, and net program revenue:
49

(dollars in thousands) 2017 2016

Numismatic Production and Sales

Cost:

 Intragovernmental:

 Cost of Goods Sold $15,153 $15,925 

 Selling, General and Administrative 16,391 17,482 

 Imputed Costs 4,934 6,091 

 Total Intragovernmental Costs 36,478 39,498 

 Public:

 Cost of Goods Sold 1,622,818 2,293,586 

 Selling, General and Administrative 74,295 69,766 

 Total Public Cost 1,697,113 2,363,352 

Gross Cost 1,733,591 2,402,850 

Revenue:

 Intragovernmental:

 Rent Revenues 264 3,191 

 Other Intragovernmental Revenues 97 35 

 Total Intragovernmental Revenues 361 3,226 

 Public: 

 Rent Revenues 447 - 

 Other Public Revenue 1,752,666 2,463,905 

 Total Public Revenues 1,753,113 2,463,905 

 Total Earned Revenue 1,753,474 2,467,131 

Net Program Cost (Revenue) $(19,883) $(64,281)

Numismatic Production and Sales of Circulating Coins

Cost:

 Intragovernmental:

 Selling, General and Administrative $44 $156 

 Total Intragovernmental Costs 44 156 

 Public:

 Cost of Goods Sold 2,194 4,813 

 Selling, General and Administrative 201 621 

 Total Public Cost 2,395 5,434 

Gross Cost 2,439 5,590 

Revenue:

 Public 2,439 5,590 

 Total Earned Revenue 2,439 5,590 

Net Program Cost (Revenue) $ - $ - 
50

(dollars in thousands) 2017 2016

Circulating Production and Sales

Cost:

 Intragovernmental:

 Cost of Goods Sold $3,803 $3,163 

 Selling, General and Administrative 14,359 12,761 

 Imputed Costs 5,189 6,883 

 Total Intragovernmental Costs 23,351 22,807 

 Public:

 Cost of Goods Sold 407,328 455,546 

 Selling, General and Administrative 47,865 44,223 

 Other Costs and Expenses (Mutilated and Uncurrent) 1,902 2,959 

 Total Public Cost 457,095 502,728 

 Gross Cost 480,446 525,535 

Revenue:

 Other Intragovernmental Revenues - 22 

 Public 480,446 525,513 

 Total Earned Revenue 480,446 525,535 

Net Program Revenue $ - $ -

Net Cost (Revenue) Before Protection of Assets $(19,883) $(64,281)

Protection of Assets

 Intragovernmental:

 Protection Cost $7,049 $6,781 

 Public:

 Protection Cost 38,470 38,236 

Net Cost of Protection of Assets $45,519 $45,017 

Net Cost (Revenue) from Operations $25,636 $(19,264)
51

16. EARNED REVENUE AND OTHER FINANCING SOURCES

(SEIGNIORAGE)

The Statement of Net Cost reflects the earned revenue and corresponding gross costs for Circulating 

Production and Sales and for Numismatic Production and Sales of Circulating Coins. Circulating 

Production and Sales represents coin sales to the FRB, and Numismatic Production and Sales of 

Circulating Coins represents sales of circulating coins to the public (i.e., numismatic customers). SFFAS 

No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary 

and Financial Accounting, provides requirements related to the recognition of net program revenue 

from production of circulating coins to the cost of metal, manufacturing and transportation. OMB 

Circular A-136 defines the treatment of other financing sources on the Statement of Changes in Net 

Position, particularly as it relates to seigniorage. Therefore, on the Statement of Net Cost, earned 

revenue is recognized only to the extent of the gross cost of production. The difference between those 

costs and the face value of the coin is an “Other Financing Sources” referred to as seigniorage. Any 

revenue over face value for circulating coins sold as numismatic items is considered earned revenue 

and included in the category Numismatic Production and Sales on the Statement of Net Cost.

The following chart reflects the two components of the receipts from the sale of circulating coin – the 

earned revenue from the Statement of Net Costs and Seigniorage from the Statement of Changes in 

Net Position for the year ended September 30:

(dollars in thousands) 2017 2016

Revenue - FRB $480,446 $525,535

Seigniorage - FRB 391,514 578,621

Total Circulating Coins $871,960 $1,104,156

Revenue - with the public $2,439 $5,590

Seigniorage - with the public 10,166 25,596

Total Numismatic sales of Circulating Coins $12,605 $31,186

Total Seigniorage $401,680 $604,217

17. APPORTIONMENT CATEGORIES OF OBLIGATIONS 

INCURRED

The Mint receives apportionments of its resources from OMB. An apportionment is an OMB-approved 

plan to use budgetary resources. An apportionment typically limits the obligations an agency may incur 

for specified time periods, programs, activities, projects, objects, or any combination thereof. All Mint 

obligations are classified as reimbursable, as they are financed by offsetting collections received in 

return for goods and services provided. OMB uses several categories to distribute budgetary resources. 

Category B apportions budgetary resources by program, project, activities, objects or a combination of 

these categories. The Mint had only category B apportionments in FY 2017 and FY 2016.

The following chart reflects the amount of reimbursable obligations incurred against amounts 

apportioned under categories B apportionments.

(dollars in thousands) 2017 2016

Category B

 Total Operating Expenses $2,230,845 $3,248,985

 Numismatic Capital 10,311 18,116

 Circulating and Protection Capital 29,235 10,472

 Total Apportionment Categories of Obligations Incurred $2,270,391 $3,277,573
52

18. EXPLANATION OF DIFFERENCES BETWEEN THE 

STATEMENT OF BUDGETARY RESOURCES AND THE 

BUDGET OF THE UNITED STATES GOVERNMENT

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling 

Budgetary and Financial Accounting, requires an explanation of material differences between the 

Statement of Budgetary Resources (SBR) and the related actual balances published in the Budget of 

the United States Government (President’s Budget). The President’s Budget for FY 2017 is expected to 

be published in February 2018 and made available through OMB. Therefore, the analysis presented 

here is for the prior year (FY 2016) “actual” figures published in the President’s budget in February 

2017. The following chart displays the comparison of the FY 2016 SBR and the actual FY 2016 balances 

included in the FY 2018 President’s Budget. The differences between the FY 2016 SBR and the 

President’s Budget are as a result of the Mint recording an obligation for the headquarters building 

lease that represents the total payments expected to arise under the full term of the lease agreement 

for financial reporting purposes, as required by the OMB Circular No. A-11, Preparation, Submission, 

and Execution of the Budget, after submission of the trial balance to the Treasury Information 

Executive Repository (TIER).

(rounded to millions) September 30, 2016

Statement of Budgetary President's Difference

United States Public Enterprise Fund Resources Budget

Total Budgetary Resources $3,578 $3,707 ($129)

New Obligations Incurred and Upward Adjustments $3,277 $3,272 $5

Net Outlays $219 $219 -

19. LEGAL ARRANGEMENTS AFFECTING USE OF 

UNOBLIGATED BALANCES

The PEF statute establishes that all receipts from Mint operations and programs, including the 

production and sale of numismatic items, the production and sale of circulating coinage, the protection 

of government assets, and gifts and bequests of property, real or personal, shall be deposited into the 

PEF and shall be available without fiscal year limitations. Any amount that the Secretary of the Treasury 

determines to be in excess of the amount required by the PEF shall be transferred to the Treasury 

for deposit as miscellaneous receipts. At September 30, 2017 and 2016, the Mint transferred excess 

receipts to the Treasury General Fund of $269 million and $611 million, respectively.

20. DERIVATIVE FINANCIAL INSTRUMENTS

At September 30, 2017 and 2016, the silver forward contract fair values were $5.5 million and $0.7 

million, respectively, which are located in Inventory in the Balance Sheet. The Mint recorded net gains 

of $28.4 million on its silver forward contract in FY 2017, compared to net losses of $40.2 million in

FY 2016, located in Gross Cost in the Statements of Net Cost.
53

21. RECONCILIATION OF NET COST OF OPERATIONS 

(PROPRIETARY) TO BUDGET

For the Years Ended September 30,

(dollars in thousands) 2017 2016

Resources Used to Finance Activities:

 Budgetary Resources Obligated

 Obligations Incurred $2,270,391 $3,277,573 

 Less: Spending Authority from Offsetting Collections and Recoveries 2,404,580 3,063,087 

 Less: Offsetting Receipts 1 2 

 Net Obligations (134,190) 214,484 

 Other Resources

 Transfers to the Treasury General Fund Budget (19,000) (61,000)

 Transfers to the Treasury General Fund Non-Budget (250,000) (550,000)

 Imputed Financing from Costs Absorbed by Others 10,123 12,975 

 Other Financing Sources (Seigniorage) 401,680 604,217 

 Net Other Resources Used to Finance Activities 142,803 6,192 

Total Resources Used to Finance Activities $8,613 $220,676 

Resources Used to Finance Items Not Part of the Net Cost of Operations

 Change in Budgetary Resources Obligated for Goods, Services and Benefits

 Ordered but Not Yet Provided $74,478 $(16,110)

 Resources that fund Expenses Recognized in Prior Periods - (40)

 Budgetary Offsetting Collections and Receipts That Do Not Affect Net Cost

 of Operations - Other (1) (2)

 Resources that Finance the Acquisition of Assets or Liquidation of Liabilities 510,947 703,807 

 Other (19,000) (64,128)

 Total Resources Used to Finance Items Not Part of the Net Cost of Operations $566,424 $623,527 

Total Resources Used to Finance the Net Cost of Operations $(557,811) $(402,851)

Components Requiring or Generating Resources in Future Periods

 Increase in Exchange Revenue Receivable from the Public $(486) $- 

Total Components of Net Cost of Operations that will Require or Generate

 Resources in Future Periods $(486) $- 

Components not Requiring or Generating Resources in the Current Period

 Depreciation and Amortization $28,681 $28,775 

 Revaluation of Assets 5,672 274 

 Other 549,580 354,538 

Total Components of Net Revenue from Operations that will not require

 or Generate Resources $583,933 $383,587

Total Components of Net Revenue from Operations that will not require

 or Generate Resources in the Current Period $583,447 $383,587

Net Cost (Revenue) from Operations $25,636 ($19,264)

22. UNDELIVERED ORDERS AT THE END OF THE PERIOD

Budgetary resources obligated for undelivered orders as of September 30, 2017 and 2016 were 

$116,030 and $107,650 respectively.
54

INTRODUCTION

This section provides the Required Supplementary Information as prescribed by the OMB Circular 

A-136, Financial Reporting Requirements, SFFAS No. 29, Heritage Assets and Stewardship Land and 

SFFAS No. 42, Deferred Maintenance and Repairs: Amending SFFAS Nos. 6, 14, 29 and 32.

HERITAGE ASSETS

The Mint is steward of a large, unique and diversified body of heritage assets that demonstrate the 

social, educational, and cultural heritage of the Mint. These items include a variety of rare and semiprecious coin collections and historical artifacts, and are held at various Mint locations. Some of these 

items are placed in locked vaults within the Mint, where access is limited to only special authorized 

personnel. Other items are on full display to the public, requiring little if any authorization to view.

Included in the heritage assets are the buildings housing the Mint at Denver, West Point, San 

Francisco, and Fort Knox. The Mint generally does not place a value on heritage assets, even though 

some of the coins and artifacts are priceless. However, the assets are accounted for, and controlled, for 

protection and conservation purposes. Heritage assets held by the Mint are generally in acceptable 

physical condition.

DEFERRED MAINTENANCE

Deferred maintenance and repairs is maintenance and repair activity that was not performed when 

it should have been, or was scheduled to be, and is put off or delayed for a future period. In fiscal 

years 2017 and 2016, the Mint had no deferred maintenance costs to report on vehicles, buildings, 

structures, and equipment owned by the Mint. There is also no deferred maintenance on heritage 

assets, which includes the Denver, West Point, San Francisco, and Fort Knox buildings.

REQUIRED SUPPLEMENTARY INFORMATION 

(UNAUDITED)

FOR THE YEARS ENDED SEPTEMBER 30, 2017 AND 2016
55

OTHER INFORMATION (UNAUDITED)

For The Periods Ended September 30,

(dollars in thousands) 2017 2016

What Money is Available to Spend?

Total Resources $2,686,312 $3,578,304 

Less Amount Not Agreed to be Spent (415,887) (183,851)

Less Amount Not Available to be Spent (34) (116,880)

Total Amounts Agreed to be Spent $2,270,391 $3,277,573

How was the Money Spent?

Personnel Compensation $143,355 $146,159 

Personnel Benefits 49,490 49,952 

Benefits for Former Personnel 144 53 

Travel and transportation of persons 1,621 1,653 

Transportion of things 28,524 32,100 

Rent, Communications, and utilities 95,637 28,334 

Printing and reproduction 3,551 962 

Other contractual services 100,774 94,319 

Supplies and materials 1,805,973 2,886,027 

Equipment 29,424 25,088 

Land and structures 11,879 12,905 

Insurance claims and indemnities 3 -

Interest and dividends 16 21 

Total Amounts Agreed to be Spent $2,270,391 $3,277,573

Who did the Money go to? 

Federal $67,765 $68,081 

Non-Federal 2,202,626 3,209,492 

Total Amounts Agreed to be Spent $2,270,391 $3,277,573 

DEPARTMENT OF THE TREASURY UNITED STATES MINT STATEMENT OF SPENDING
56 KPMG LLP is a Delaware limited liability partnership and the U.S. member 

firm of the KPMG network of independent member firms affiliated with 

KPMG International Cooperative (“KPMG International”), a Swiss entity. 

KPMG LLP

Suite 12000

1801 K Street, NW

Washington, DC 20006

Independent Auditors’ Report on Internal Control Over Financial Reporting Based on an Audit of 

Financial Statements Performed in Accordance With Government Auditing Standards

Inspector General 

Department of the Treasury 

Acting Deputy Director 

United States Mint: 

We have audited, in accordance with auditing standards generally accepted in the United States of America, in 

accordance with the standards applicable to financial audits contained in Government Auditing Standards

issued by the Comptroller General of the United States, and in accordance with Office of Management and 

Budget (OMB) Bulletin No. 17-03, Audit Requirements for Federal Financial Statements, the financial 

statements of the United States Mint, which comprise the balance sheets as of September 30, 2017 and 2016, 

and the related statements of net cost, changes in net position, and budgetary resources for the years then 

ended, and the related notes to the financial statements, and have issued our report thereon dated 

December 8, 2017. 

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements as of and for the year ended September 30, 

2017, we considered the United States Mint’s internal control over financial reporting (internal control) to 

determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our 

opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the 

United States Mint’s internal control. Accordingly, we do not express an opinion on the effectiveness of the 

United States Mint’s internal control. We did not test all internal controls relevant to operating objectives as 

broadly defined by the Federal Managers’ Financial Integrity Act of 1982. 

A deficiency in internal control exists when the design or operation of a control does not allow management or 

employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, 

misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in 

internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial 

statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a 

deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet 

important enough to merit attention by those charged with governance. 

Our consideration of internal control was for the limited purpose described in the first paragraph of this section 

and was not designed to identify all deficiencies in internal control that might be material weaknesses or 

significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal 

control that we consider to be material weaknesses. However, material weaknesses may exist that have not 

been identified. 

56
57

Purpose of this Report 

The purpose of this report is solely to describe the scope of our testing of internal control and the result of that 

testing, and not to provide an opinion on the effectiveness of the United States Mint’s internal control. This 

report is an integral part of an audit performed in accordance with Government Auditing Standards in 

considering the United States Mint’s internal control. Accordingly, this communication is not suitable for any 

other purpose. 

Washington, DC 

December 8, 2017 

57
58 KPMG LLP is a Delaware limited liability partnership and the U.S. member 

firm of the KPMG network of independent member firms affiliated with 

KPMG International Cooperative (“KPMG International”), a Swiss entity. 

KPMG LLP

Suite 12000

1801 K Street, NW

Washington, DC 20006

Independent Auditors’ Report on Compliance and Other Matters Based on an Audit of Financial 

Statements Performed in Accordance With Government Auditing Standards

Inspector General 

Department of the Treasury 

Acting Deputy Director 

United States Mint: 

We have audited, in accordance with auditing standards generally accepted in the United States of America, in 

accordance with the standards applicable to financial audits contained in Government Auditing Standards

issued by the Comptroller General of the United States, and in accordance with Office of Management and 

Budget (OMB) Bulletin No. 17-03, Audit Requirements for Federal Financial Statements, the financial 

statements of the United States Mint, which comprise the balance sheets as of September 30, 2017 and 2016, 

and the related statements of net cost, changes in net position, and budgetary resources for the years then 

ended, and the related notes to the financial statements, and have issued our report thereon dated 

December 8, 2017. 

Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the United States Mint’s financial statements are free 

from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, 

and contracts, noncompliance with which could have a direct and material effect on the determination of 

financial statement amounts. However, providing an opinion on compliance with those provisions was not an 

objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no 

instances of noncompliance or other matters that are required to be reported herein under Government 

Auditing Standards or OMB Bulletin No. 17-03. 

Purpose of this Report 

The purpose of this report is solely to describe the scope of our testing of compliance and the result of that 

testing, and not to provide an opinion on the United States Mint’s compliance. This report is an integral part of 

an audit performed in accordance with Government Auditing Standards in considering the United States Mint’s

compliance. Accordingly, this communication is not suitable for any other purpose. 

Washington, DC 

December 8, 2017 

58
59

APPENDIX I: FY 2017 COIN AND MEDAL PRODUCTS

PRESIDENTIAL MEDALS

BARACK OBAMA (FIRST TERM) BRONZE MEDAL

Medal Released: January 17, 2017

Mintage Limits: None

Description: The Department of the Treasury has a long-standing tradition 

of honoring each President of the United States with an official medal 

issued by the Secretary and struck by the United States Mint. Presidents 

who serve more than one term are traditionally honored with two medals, 

one highlighting each of their terms. Since the 1960s, with the exception of 

Ronald Reagan, all Presidents who served more than one term have been 

honored with two medals. Typically, these medals are presented during 

the President’s term of office. Traditionally, Presidential medals feature a 

portrait of the President on the obverse with elements such as inaugural 

dates, terms of office, presidential symbols and seals, and excerpts from 

speeches on the reverse. The obverse design features a portrait of President 

Barack Obama with the inscription “BARACK OBAMA.” The reverse design 

features a quote from President Obama beneath the Presidential Seal. The 

quote reads, “OUR DESTINY IS NOT WRITTEN FOR US. IT IS WRITTEN 

BY US.” The additional inscription reads, “JANUARY 20, 2009,” the date 

of President Obama’s inauguration. Beneath the date is the President’s 

signature. The design is bordered by 50 stars.

BARACK OBAMA (SECOND TERM) BRONZE MEDAL

Medal Released: January 17, 2017

Mintage Limits: None

Description: The Department of the Treasury has a long-standing tradition 

of honoring each President of the United States with an official medal 

issued by the Secretary and struck by the United States Mint. Presidents 

who serve more than one term are traditionally honored with two medals, 

one highlighting each of their terms. Since the 1960s, with the exception of 

Ronald Reagan, all Presidents who served more than one term have been 

honored with two medals. Typically, these medals are presented during 

the President’s term of office. Traditionally, Presidential medals feature a 

portrait of the President on the obverse with elements such as inaugural 

dates, terms of office, presidential symbols and seals, and excerpts from 

speeches on the reverse. The obverse design features a traditional profile 

of President Obama with the inscription “BARACK OBAMA.” The reverse 

design features a quote from President Obama beneath an image of the 

White House. The quote reads “THE SINGLE MOST POWERFUL WORD 

IN OUR DEMOCRACY IS THE WORD ‘WE.’ WE THE PEOPLE. WE SHALL 

OVERCOME. YES WE CAN.” The additional inscription beneath the White 

House reads, “JANUARY 20, 2013,” the date of President Obama’s second 

inauguration. The designs also feature President Obama’s signature and 50 

stars around the border.
60

JACOB J. LEW SECRETARY OF THE TREASURY BRONZE MEDAL

Medal Released: January 25, 2017

Mintage Limits: None

Description: The Treasury Department has a longstanding tradition of 

striking an official medal for each Secretary of the Treasury. The Mint 

produces the medal under the general authority of 31 U.S.C. § 5111 (a) (2), 

which states that the Secretary may prepare and strike “national and other 

medals” if it does not interfere with regular minting operations. Since the 

1890s, the Mint has prepared, struck, and distributed medals for 33 of the 

35 Senate-confirmed Secretaries. The obverse design features a portrait of 

Jacob J. Lew with a flag in the background and the inscriptions “JACOB 

J. LEW” and “76th SECRETARY OF THE TREASURY.” The reverse design 

features a depiction of the Statue of Liberty and the Main Building on Ellis 

Island alongside a quote from Emma Lazarus. The inscriptions read “I LIFT 

MY LAMP BESIDE THE GOLDEN DOOR” and “EMMA LAZARUS.”

225TH ANNIVERSARY COINS

225TH ANNIVERSARY GOLD COIN

Coin Released: June 5, 2017

Mintage Limits: 100,000

Description: For the 225th Anniversary, the Mint produced a special gold 

coin, marketed to collectors with a face value of $100, with a profile of 

Liberty depicted as an African American woman. On the coin, Liberty looks 

to the left, her chin set, her hair swept back, the slightest smile on her lips. 

On her head is a crown of stars. 2017 marks the 225th anniversary of the 

United States Mint. To mark this momentous occasion, we are proud to 

introduce the 2017 American Liberty 225th Anniversary Gold CoinTM featuring 

a modern rendition of Lady Liberty. Emblematic figures of liberty have graced 

American coins since the founding of the United States Mint 225 years ago. 

Our newest Lady Liberty is a modern rendition of this iconic figure that 

embodies the ideals of freedom and equality first set forth in our Declaration 

of Independence. Struck in conjunction with the Mint’s 225th anniversary, this 

unique coin portrays allegorical Liberty as an African-American woman. Its 

obverse (heads) design depicts a profile of Liberty wearing a crown of stars, 

with the inscriptions “LIBERTY,” “1792,” “2017,” and “IN GOD WE TRUST.” 

The reverse (tails) design depicts a bold and powerful eagle in flight, with 

eyes toward opportunity and a determination to attain it. American Liberty 

225th Anniversary Gold Coins are minted in 99.99% 24–karat gold, in high–

relief, with raised edge lettering, and a proof finish.

225TH ANNIVERSARY AMERICAN LIBERTY SILVER MEDAL

Medal Released: June 14, 2017

Mintage Limits: None

Description: The 2017 American Liberty 225th Anniversary Silver Medal is 

the medal counterpart of the 2017 American Liberty 225th Anniversary Gold 

Coin design representing a modern rendition of Liberty. Emblematic figures 

of liberty have graced American coins and medals since the founding of the 

United States Mint 225 years ago. The American Liberty 225th Anniversary 

Silver Medal is minted in 99.9-percent silver with a proof finish. The obverse 

design features a profile of Liberty wearing a crown of stars. The reverse 

design features a bold and powerful eagle in flight, with eyes toward 

opportunity and a determination to attain it.
61

AMERICA THE BEAUTIFUL

QUARTERS® PROGRAM

FORT MOULTRIE (FORT SUMTER NATIONAL MONUMENT) – 

SOUTH CAROLINA

Coin Released: November 14, 2016

Description: Fort Moultrie, the first fort on Sullivan’s Island, was still

incomplete when Commodore Sir Peter Parker and nine warships attacked 

it on June 28, 1776. After a nine-hour battle, the ships were forced to retire. 

Charleston was saved from British occupation, and the fort was named 

in honor of its commander, Colonel William Moultrie. In 1780, the British 

finally captured Charleston, abandoning it only on the advent of peace. 

After the Revolutionary War, Fort Moultrie was neglected, and by 1791 little 

of it remained. Then, in 1793, war broke out between England and France. 

A second Fort Moultrie, one of 20 new forts along the Atlantic coast, was 

completed in 1798. It too suffered from neglect and was finally destroyed 

by a hurricane in 1804. In 1809 a new, brick third Fort Moultrie stood on 

Sullivan’s Island. It was established as a national site in 1948. The coin 

design depicts Sergeant William Jasper returning the regimental flag to the 

ramparts while under attack from a British ship. 

EFFIGY MOUNDS NATIONAL MONUMENT – IOWA

Coin Released: February 6, 2017

Description: The America the Beautiful Effigy Mounds National Monument

quarter is the first in 2017, and the 36th overall in the America the Beautiful 

Quarters Program. The Effigy Mounds National Monument protects one of 

the largest remaining concentrations of ancient American Indian earthworks 

in the United States. Effigy Mounds National Monument was established in 

1949. It is considered a sacred landscape by members of many modern-day 

tribes whose ancestors once lived here. The majority of the mounds were 

constructed between one thousand and two thousand years ago — often to 

bury the dead, but sometimes for ceremonial purposes, or to tell important 

stories. The park is home to more than 200 mounds in a wide variety of 

forms, including more than 30 animal or bird-shaped “effigy” mounds for 

which the park is named. Often more than 100 feet long individually, many 

of these animal and bird shaped mounds are perched high atop rugged 

bluffs overlooking the adjacent Mississippi River. Aside from preserving 

these tangible links to an ancient and highly creative people, the park 

features outstanding views of the Mississippi River Valley, and hosts many of 

the native plant and animal communities that sustained people in this area 

for millennia.

FREDERICK DOUGLASS NATIONAL HISTORIC SITE – 

WASHINGTON, D.C.

Coin Released: April 3, 2017

Description: The Frederick Douglass National Historic Site quarter is the

second in 2017, and the 37th overall in the America the Beautiful Quarters 

Program. The Frederick Douglass National Historic Site was established in 

1962 to preserve the home and legacy of Frederick Douglass, abolitionist, 

civil rights advocate, author, and statesman. Douglass lived in this home 

from 1877 until his death in 1895. Frederick Douglass was born into 

slavery on a plantation on the Eastern Shore of Maryland in 1818. By 15, 

he was a literate, independent teenager who educated other slaves. In 
62

1838, he disguised himself as a sailor and boarded a train to New York 

City, where he declared himself a free man. Douglass turned his efforts to 

helping those still enslaved. An impressive orator, he traveled across the 

North speaking against slavery. He wrote his first autobiography in which 

he revealed his original name, his owners’ names, and his birthplace. 

In danger of being returned to slavery as a result of this revelation, he 

fled to the British Isles where he continued to speak against slavery and 

ultimately, British supporters purchased his freedom. Douglass returned to 

the United States, and during the Civil War, recruited African Americans to 

fight in the Union Army. He continued to write and speak against slavery. 

He met with Abraham Lincoln to advocate for African American troops and 

encouraged Lincoln to see the war as a chance to transform the country. 

Following the Civil War, Douglass moved to his home in Washington, DC. 

He served as the U.S. Marshal for the District of Columbia, the District’s 

Recorder of Deeds, and the U.S. Minister to Haiti and Chargé d ’Affaires to 

the Dominican Republic. He continued to work to expand civil rights in the 

country until his death.

OZARK NATIONAL SCENIC RIVERWAYS – MISSOURI

Coin Released: June 5, 2017

Description: Ozark National Scenic Riverways was established in 1964

to protect 134 miles of the Current and Jacks Fork Rivers in the Ozark 

Highlands of southeastern Missouri. The park encompasses 80,785 acres 

of unique natural resources, including a world-class spring system that is 

unparalleled in North America, more than 400 caves, and other special 

geologic features. The rivers offer remarkably clean, clear water that is 

complemented by the breathtaking blue shade of the waters of the large 

springs. The spectacular natural beauty of the area attracts park visitors 

to participate in a variety of recreational opportunities, such as boating, 

canoeing, swimming, and fishing. Hiking, hunting, and horseback riding are 

also enjoyed across the landscape. In addition to the unique natural features 

of the Ozarks, the National Park Service preserves the heritage and lifeways 

of the Ozark culture, which was heavily shaped by the remote and rugged 

landscape. The park manages 249 historic structures that are scattered 

throughout the park and also preserves the history and remnants of 

prehistoric peoples who settled in the region during the past 12,000 years. 

ELLIS ISLAND – NEW JERSEY

Coin Released: September 7, 2017

Description: From 1892 to 1954, Ellis Island was the largest and most

active immigration station in the United States, where approximately 12 

million immigrants were processed. On average, the inspection process 

took approximately 3-7 hours. For the vast majority of immigrants, Ellis 

Island truly was an “Island of Hope” – the first stop on their way to 

new opportunities and experiences in the United States. For the rest, it 

became the “Island of Tears” – a place where families were separated and 

individuals were denied entry into this country. Ellis Island was added to the 

Statue of Liberty National Monument in 1965 by Presidential Proclamation 

and is administered by the National Park Service. The main building reopened in September 1990 as the Ellis Island Immigration Museum, at that 

time the largest restoration project in U.S. history. Most of the remaining 

unrestored buildings on Ellis Island were one of the first and largest public 

health hospitals in the United States. The facility was considered to be 
63

the most modern of its day. The 725-bed Ellis Island Hospital Complex, 

completed in 1909, consisted of a powerhouse, morgue, laboratory and 

housing for doctors and nurses. Covered corridors connected the main 

hospital building to infectious disease wards, kitchens, laundries and 

recreation facilities for patients and staff. Since a U.S. Supreme Court ruling 

in 1998, Ellis Island, all of which is federal property, belongs within the 

territorial jurisdiction of both New York and New Jersey depending upon 

where you are. The iconic main building, housing the immigration museum, 

is within the boundary of New York State. Since the island was expanded 

over many years to its current 27.5 acres, this expanded area, which 

includes the hospital complex, is now within the territory of New Jersey. 

2017 AMERICAN EAGLE COIN PROGRAM

AMERICAN EAGLE PLATINUM PROOF COIN

Coin Released: July 6, 2017

Mintage Limits: 10,000

Description: In 2017, the U.S. Mint is proud to commemorate the 20th

anniversary of its “most precious” of the precious metals coins by issuing 

them with their original 1997 designs. American Eagle Platinum coins are 

part of a complete precious metals portfolio available from the United 

States Mint. The American Eagle Platinum is the only platinum proof coin 

whose weight, content and .9995 purity are guaranteed by the United 

States Government. All American Eagles are legal tender coins, with their 

face value imprinted in U.S. dollars. Although their face value is largely 

symbolic, it provides proof of their authenticity as official U.S. coinage. The 

one-ounce platinum coin displays the highest face value ($100) ever to 

appear on a U.S. coin.

AMERICAN EAGLE GOLD PROOF COIN

Coin Released: March 2, 2017

Description: Produced from gold mined in the United States, American

Eagles are imprinted with their gold content and legal tender “face” value. 

An American Eagle’s value is based on the market price of its metal content. 

American Eagles use the durable 22-karat standard established for gold 

circulating coinage over 350 years ago. They contain their stated amount of 

pure gold, plus small amounts of alloy. This creates harder coins that resist 

scratching and marring, which can diminish resale value. 

AMERICAN EAGLE SILVER PROOF COIN

Coin Released: March 23, 2017

Description: Since 1986, the United States has minted one-dollar silver

coins called “Silver Eagles.” Each contains a minimum of one troy ounce 

of 99.9% pure silver. Above all, as legal tender, they’re the only silver 

proof coins whose weight and purity are guaranteed by the United States 

Government. They’re also the only silver coins allowed in an IRA. Silver has 

historically been the most affordable precious metal. The design is based on 

Adolph A. Weinman’s 1916 “Walking Liberty” half dollar, widely considered 

one of the most beautiful American coins ever minted. The obverse (heads) 

features 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. The reverse (tails) features a heraldic eagle with 

shield, an olive branch in the right talon and arrows in the left. Affordability. 

Credibility. Beauty.
64

AMERICAN BUFFALO COIN

AMERICAN BUFFALO 2017 ONE-OUNCE GOLD PROOF COIN

Coin Released: May 11, 2017

Description: The American Buffalo One Ounce Gold Proof Coin is the

first 24–karat gold proof coin ever struck by the U.S. Mint and is the coin 

collector version of the official United States Mint American Buffalo Gold 

Bullion Coin. Containing one ounce of .9999 fine 24–karat gold, these 

lustrous coins are among the world’s purest gold coins. Authorized by 

Congress in 2005 and first minted in June 2006, American Buffalo Gold 

Bullion Coins are among the world’s purest gold coins in terms of the 

fineness of the metal they contain. Each coin contains its full, stated weight 

of pure gold. By law, the gold for United States Mint American Buffalo Gold 

Bullion Coins must be taken from newly mined sources in America. They are 

struck at the United States Mint at West Point, New York. While struck at 

West Point, American Buffalo Gold Bullion Coins do not have a mint mark. 

2017 NATIVE AMERICAN $1 COIN

NATIVE AMERICAN 2017 $1 COIN

Coin Released: January 25, 2017

Description: Native American Dollar Coins honor and recognize the

important contributions made by Indian tribes and individual Native 

Americans. These 2017 Native American Dollar Coins minted at the 

Philadelphia Mint and Denver Mint have circulating finishes but have never 

been placed into circulation. This year’s reverse theme commemorates the 

contributions of Sequoyah, inventor of the Cherokee Syllabary. Sequoyah 

adapted writing to the Cherokee language by devising symbols for each 

syllable. His achievement is one of a handful of examples in world history 

regarding the development of an original writing system. After 12 years of 

work, Sequoyah unveiled the alphabet in a demonstration with his daughter 

Ah-yo-ka. News spread quickly and Cherokees flocked to learn the system. 

In 1821, the Cherokee Nation adopted it as its own. Within months, 

thousands of Cherokee became literate. The Cherokee Syllabary gave birth 

to Native American journalism. The first American Indian newspaper, the 

Cherokee Phoenix, included editorials which embodied the Cherokees’ 

determination to retain their lands, news on activities of the Cherokee 

government, as well as relations with the federal and state governments. 

This written language helped create a dialogue between Cherokee Nation 

and the United States Government, and assisted in the preservation

of interests, hopes and struggles of individuals during a unique time

in our history.
65

COMMEMORATIVE COIN PROGRAMS

LIONS CLUBS INTERNATIONAL 2017 CENTENNIAL

PROOF SILVER DOLLAR

Coin Released: January 18, 2017

Description: A century ago, Melvin Jones, a Chicago business leader and

member of a businessmen’s luncheon group, posed a simple question: “What 

if these men, who are successful because of their drive, intelligence, and

ambition, were to put their talents to work improving their communities?”

In 1917, Jones made this vision a reality when he founded Lions Clubs 

International, a service club organization with the guiding principle of “We 

Serve.” The organization empowers its volunteers to serve their communities, meet humanitarian needs, encourage peace, and promote international 

understanding. Services include community, environmental, youth, health 

programs, and disaster relief work. On June 7, 2017, Lions Clubs International will celebrate 100 years of community service to men, women, and 

children worldwide. Since its founding, it has become one of the world’s 

largest organizations of its kind. Its 1.4 million members in more than 46,000 

clubs provide humanitarian services in more than 200 countries. Sales prices 

of these commemorative coins include surcharges of $10 for each $1coin, 

which is authorized to be paid to the Lions Clubs International Foundation 

to further its programs for the blind and visually impaired in the United 

States and abroad, invest in adaptive technologies for the disabled and 

invest in youth and those affected by a major disaster.

BOYS TOWN 2017 CENTENNIAL PROOF SILVER DOLLAR

Coins Released: March 9, 2017

Description: A young parish priest named Father Edward Flanagan had a

theory: Every child could be a productive citizen if given love, a home, an 

education and a trade. Armed with his belief, and $90 he had borrowed, 

he rented a boarding house where boys of all races and religions were 

welcomed. Father Flanagan’s Home for Boys, or “Boys Town” as it became 

known, has grown exponentially since its founding in 1917. Today it is one 

of the largest nonprofit organizations in the country, dedicated to serving

at-risk children and families of all backgrounds and religions. Through its 

Boys Town National Hotline, Boys Town National Research Hospital, and 

other community services, the organization provides treatment for the 

behavioral, emotional, and physical problems of children and families in 11 

regions across the country. Boys Town programs impact the lives of more 

than two million children and families each year. December 12, 2017, will 

mark the 100th anniversary of Boys Town, Nebraska.
67

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CONNECTING AMERICA THROUGH COINS

SINCE 1792

1 7 9 2 2017

225 YEARS

REMEMBERING OUR P AST

EMBRA CING THE FUTURE TM