UNITED STATES MINT

2014 ANNUAL REPORT

1

DEPUTY DIRECTOR’S LETTER

I am pleased to present the United States Mint’s Annual Report for 

Fiscal Year 2014. Once again this year, the men and women of the 

United States Mint delivered outstanding results for the nation.

This annual report tells their story by showing how we focus on

our customers and drive continuous improvement into every facet

of our operations. 

The United States Mint (Mint) is a customer driven organization that 

operates in three distinct areas. The circulating program facilitates 

commerce across the nation, the bullion coin program meets the 

needs of investors around the globe, and the numismatic program 

produces special coins and medals—many of which are authorized 

by individual public laws. We are the largest Mint in the world, but 

we do not act that way. We are a lean and nimble manufacturing 

success story delivering dramatically reduced costs; exciting new 

products and customer service; impressive environmental and safety 

performance; and cutting edge technology. 

The Fiscal Year (FY) 2014 results are impressive and really speak for 

themselves, but they don’t tell the whole story. The real story at the 

Mint over the last several years has been about the customer. We have invested our energy to really understand our 

customers, who they are and what they value. We have aligned our operations to provide them the highest quality 

products, on time, and at the lowest possible costs. The FY 2014 results, both the hard numbers and the more soft 

service improvements, are the dividends earned from our renewed customer focus. 

CIRCULATING COINS

The Mint delivered 13.0 billion circulating coins to the Federal Reserve Banks in FY 2014, an increase of 21.9 

percent from the 10.7 billion in FY 2013. We worked hard to keep our fixed costs flat while delivering this increased 

production. In FY 2014, the cost to produce a penny was down another 9.3 percent from FY 2013; the nickel was 

down 14.0 percent; the dime was down 14.3 percent; and the quarter was down 14.8 percent. Our cost to produce a 

penny and nickel in FY 2014 is the lowest since FY 2009; the cost of the dime is the lowest since FY 2006; and the 

cost of the quarter is the lowest since FY 2005. 

But these numbers need some context—the Mint team has delivered these results in the face of rising raw materials 

costs for our metals. Since FY 2005, the cost of copper is up 107 percent and the cost of nickel is up 9 percent. So, 

depending on the coin, the Mint is able to produce circulating coins today at the same cost as we did between five

 

 

 

 

 

 

 

and nine years ago. This does not happen without the

circulating coin team delivering record productivity

improvements for its customers. As a result, the Mint

returned $250 million in circulating seigniorage to

the Treasury General Fund in FY 2014. 

I would like to recognize the teams at our circulating

plants in Denver and Philadelphia for their

outstanding performance.

THE MINT RETURNED $250 

Richard A. Peterson

United States Mint

Deputy Director
2

BULLION

FY 2014 bullion coin sales mirrored their broader commodity markets throughout the year as investors sought

different asset classes. Gold ounces were down 42.4 percent from FY 2013 and silver ounces were also down by 

12.7 percent. Gold and silver prices dropped as well between 2013 and 2014 with our average cost of gold down

15.6 percent in 2014 and silver down 25 percent. However, the year in bullion did have many highlights. 

The Mint has been working tirelessly with its supply base since FY 2008 to increase the availability of silver blanks, 

and in FY 2014 we completed a multi-year program to increase blank supply to more than 50 million blanks per 

year. We lifted allocation limits on silver bullion coins in June 2014 and were able to produce both gold and silver

bullion coins to demand in FY 2014. Importantly, the Mint was able to fulfill demand when other global mints

resumed allocation briefly late in the year. Finally, in FY 2014, the Mint resumed production of the one ounce

platinum bullion coin that we had discontinued in FY 2009 as a result of the economic crisis. Albeit at low production,

resuming platinum bullion was a significant milestone for the Mint and demonstrated our commitment to better 

serve our bullion coin customers. 

NUMISMATIC COINS AND MEDALS

The year for numismatics was highlighted by two blockbuster products and the completion of our multi-year program to upgrade our e-Commerce website. Overall, our unit volumes were up 3.9 percent to 5.7 million in FY 2014 

from 5.5 million in FY 2013. Revenues again exceeded the half-billion dollar mark at $504.5 million. 

Importantly, our coin design team and artists completed a multi-year program to deliver all coin designs at least one 

year ahead of their planned manufacturing dates. As we enter FY 2015,

not only are all coin designs for calendar year 2015 completed, but so

are the recurring designs for calendar 2016 as well. This achievement

enables unprecedented flexibility in our manufacturing operations,

and we plan to leverage that for the benefit of our customers over

the coming years. 

The 2014 Baseball Hall of Fame Commemorative Coin Program

was a resounding success. The authorizing legislation called for a

nation-wide design competition, curved gold and silver coins and

specific mintage limits. It also called for a clad coin, but it was not

required to be curved. I challenged our technology team to experiment

with ways to make the clad coin curved as well. An optimum balance

of annealing times, temperatures, press tonnage and curvature yielded

the world’s first curved clad coin. We also partnered with another

government agency, the General Services Administration, to leverage

their software platform to manage the design competition and keep

our expenses low. The Baseball Hall of Fame Commemorative coins

have been very popular and showcased the creativity of our Mint team.

2014 is the 50th anniversary of the Kennedy half-dollar, the golden

anniversary. Our market research showed that a gold version of this

iconic coin would be well-received by our customers. Then, one of

our employees in San Francisco sent me an e-mail suggesting that we

restore the artwork on the Kennedy design to more closely match the

original 1964 design. Our technology team went to work, and we created an absolutely stunning reproduction that

recaptures all the nuances of President Kennedy’s image from the 1964 design that had been lost over the years. We 

offered these coins in 24 karat gold, a four-coin set of silver, and an attractive clad set to appeal to the full range of 

numismatic collectors. The customer response was overwhelming.

WE SET THE BAR 

HIGH WHEN WE SET 

OUT SEVERAL YEARS 

AGO TO UPGRADE 

OUR E-COMMERCE 

WEBSITE. AS ONE 

OF THE LARGEST 

INTERNET RETAILERS 

IN THE COUNTRY 

TODAY, WE NEEDED 

A SITE THAT COULD 

HANDLE OUR 

PEAK VOLUMES 

ON THE DAY OF A 

PRODUCT LAUNCH.
3

DESIGNING AND PRODUCING 

 

THESE MEDALS, DELIVERING 

THEM TO CONGRESS, 

AND PARTICIPATING IN THE 

PRESENT ATION CEREMONIES 

IS A SOLEMN HONOR FOR ALL 

EMPLOYEES OF THE UNITED 

 STATES MINT.

 

 

 t

 f

 

 i

 

 

We set the bar high when we set out several years

ago to upgrade our e-Commerce website. As one of

he largest internet retailers in the country today,

we needed a site that could handle our peak volumes

on the day of a product launch. But we wanted more

or our customers—we wanted a state-of-the-art

system that operated in the cloud; was scalable; gave

us up-to-the-minute sales and marketing data;

mproved product delivery times to our customers;

and, of course, reduced our operating expenses. The

new e-Commerce site has operated flawlessly since

going live as the clock struck midnight between

September 30 and October 1, 2014. The new system

delivers everything we set out to achieve and was

completed on time and under budget. The effort was 

huge and involved hundreds of our employees in the Information Technology, Sales and Marketing, Finance and 

Protection departments. Their dedication to our customers will be felt for decades to come, and I thank each and 

every one for a job well done.

The Mint is proud of the role we play in supporting the Congressional Gold Medal program. The Congressional 

Gold Medal is the highest honor that Congress can bestow and in FY 2014 Congress honored Native American 

Code Talkers from World War One and Two; Rev. Dr. Martin Luther King, Jr. and Coretta Scott King; then Israeli 

President Shimon Peres; Raoul Wallenberg; and the Fallen Heroes of September 11. Each medal is designed in

consultation with the honored person or group, and the Mint staff gets to hear their stories, often first hand. Without 

fail, the Mint team is humbled by the honorees and their selfless and passionate contributions to the United States 

and the world. Designing and producing these medals, delivering them to Congress, and participating in the

presentation ceremonies is a solemn honor for all employees of the United States Mint.

This year, I complete my fourth year as the Mint’s Acting Director/Deputy Director. We had an outstanding year

in FY 2014, and it remains my honor to serve our country as the leader of such an awe-inspiring team. We hope

you will visit us at our website www.USMINT.gov or visit us in person at the Denver or Philadelphia mints

where we offer public tours. The United States Mint is focused on our customers and ready for the challenges

and opportunities ahead. 

Sincerely,

Richard A. Peterson, Deputy Director
4

Front row, left to right: Marc Landry, Sales and Marketing Acting Associate Director and Philadelphia Plant

Manager; Beverly Babers, Chief Administrative Officer; Richard Peterson, Deputy Director; Dave Croft,

Manufacturing Associate Director; Annie Brown, Workforce Solutions Associate Director

Second row, left to right: Dennis O’Connor, Chief of Police; Randall Johnson, Denver Plant Manager; April Stafford, 

Design Management Division Manager; Eric Anderson, Executive Secretary; B.B. Craig, Associate Director for 

Environment, Safety, and Health; Jean Gentry, Acting Chief Counsel; Jon Cameron, Office of Coin Studies Director; 

Ellen McCullom, West Point Plant Manager; Larry Eckerman, San Francisco Plant Manager; William G. Norton, 

Jr., Legislative and Intergovernmental Affairs Director; Lauren Buschor, CIO; Thomas Jurkowsky, Office of

Corporate Communications Director. Not pictured: David Motl, CFO

OUR MISSION: Serve the American people by manufacturing and distributing circulating, precious metal and

collectible coins, and national medals, and providing security over assets entrusted to us.

OUR VISION: Become the finest mint in the world, through excellence in our people, products, customer service, 

and workplace. 

Established in 1792, the United States Mint (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. We generate revenue through the sale of circulating coins to the Federal 

Reserve Banks (FRB), numismatic products to the public, and bullion coins to authorized purchasers. Revenue in 

excess of amounts required by the PEF is transferred to the United States Treasury General Fund. 

The Mint operates six facilities and employs approximately 1,600 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 at facilities in San Francisco and 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 our Headquarters in Washington, D.C.

ORGANIZATIONAL PROFILE
TABLE OF CONTENTS

5

Organizational Profile 4

The United States Mint at a Glance 6

Management’s Discussion and Analysis 8

Analysis of Systems, Controls, and Legal Compliance 25

Limitations of the Financial Statements 26

Message from the Chief Financial Officer 27

Independent Auditors’ Report 28

Financial Statements 30

Notes to Financial Statements 34

Required Supplementary Information 50

Other Information 50

Independent Auditors’ Report on Internal Controls 51

Independent Auditors’ Report on Compliance and Other Matters 53

Appendix I: FY 2014 Coin and Medal Products 54
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. Our vision 

is to become the finest mint in the world, through 

excellence in our people, products, customer 

service, and workplace.

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. In 2014, we reintroduced 

platinum bullion coins for sale. 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 our 

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.
7

2014 PERFORMANCE

FY 2014 revenue was $3,101.9 million, a decrease of 28.4 percent compared to last 

year, mainly due to decreased demand for bullion coins and lower precious metal 

prices. Cost of goods sold (COGS) decreased 33.8 percent to $2,582.6 million,

reflecting the lower bullion coin demand and lower metal prices. Selling, general 

and administrative (SG&A) expenses increased 5.7 percent from last year, mainly 

due to a one-time investment to improve our numismatic e-Commerce website and 

order fulfillment system. Total seigniorage and net income before Protection

expenses increased 25.8 percent to $367.9 million compared to last year, reflecting 

the impact of increased circulating coinage shipments.

CIRCULATING COINAGE

Circulating coin shipments increased 21.9 percent to 13,037 million coins in FY 

2014. Quarter-dollar coin shipments experienced the strongest annual percentage 

growth at 58.5 percent compared to last year. Circulating revenue increased 35.5 

percent to $783.0 million. Seigniorage increased 110.4 percent to $289.1 million. 

Seigniorage per dollar issued increased to $0.37 from $0.24 last year.

BULLION COINS

Demand for bullion coins slowed in FY 2014 compared to last year’s record-setting 

volume. The Mint sold 39.7 million ounces of gold, silver, and platinum bullion 

coins, a decrease of 6.2 million ounces from last year. Total bullion revenue

decreased 44.1 percent to $1,814.4 million in FY 2014, primarily due to a 52.6

percent decrease in gold bullion coin revenues from lower demand and lower gold 

spot prices. Bullion coin net income decreased 52.8 percent to $28 million and

bullion coin net margin decreased to 1.5 percent compared to 1.8 percent last year.

NUMISMATIC PRODUCTS

Numismatic sales increased 3.9 percent to 5.7 million units in FY 2014. Numismatic 

revenues decreased 1.5 percent to $504.5 million as decreases in silver products 

and annual sets sales were partially offset by a $32.2 million increase in gold and 

platinum product and a $23.5 million increase in commemorative product revenues. 

Numismatic net income decreased 47 percent to $50.8 million (before protection

expenses). Numismatic net margin decreased to 10.1 percent compared to 18.7 

percent last year.

TRANSFER TO THE GENERAL FUND

In FY 2014, the Mint transferred $272 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 second quarter, the Mint made a

budget transfer of $22 million from FY 2013 numismatic program results.
8

MANAGEMENT’S DISCUSSION AND ANALYSIS

MEET THE NATION’S NEED FOR CIRCULATING COINS

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.

We mint and issue circulating coins to the Federal Reserve Banks (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 2014 circulating coin shipments to the FRB increased by 2.3 billion units (21.9 

percent) to a total 13.0 billion coins compared to last year. The year saw a marked 58.5 percent increase in

quarter-dollar shipments, which drove increases in revenues and seigniorage. 

Shipment volumes increased for all denominations.

As a percentage of total shipments, quarter-dollar

shipments increased from 10 percent in FY 2013 to

13 percent in FY 2014. In contrast, the percentage of 

total shipments for all other denominations decreased

1 percentage point. 

FY 2014 circulating revenue was $783.0 million, 35.5 

percent higher than $578.0 million last year, primarily 

because of a 58.5 percent increase in quarter-dollar

revenues. FY 2014 seigniorage was $289.1 million, 

110.4 percent higher than last year, mainly because

of increased quarter-dollar shipments and lower metal 

costs. Lower metal costs this year compared to last 

year saved approximately $28.8 million in minting and issuing the 13.0 billion coins ordered by the FRB. The Mint 

also controlled indirect costs, allowing the increased shipments to generate more seigniorage. Plant costs at the 

production facilities at Denver and Philadelphia decreased 5.2 percent, despite the 21.9 percent increase in coin 

production. General and administrative costs increased slightly with increased research and development expenses. 

Seigniorage per $1 issued was $0.37 in FY 2014, versus $0.24 last year. 

FY 2014 unit costs decreased for all denominations compared to last year. This was because we produced more

units for all denominations and reduced metal costs. By keeping indirect costs down in the face of increased

demand, fixed costs were spread among more units. The unit cost for both pennies (1.7 cents) and nickels (8.1 cents) 

remained above face value for the ninth consecutive fiscal year. Although there was higher demand, lower unit

costs generated a smaller FY 2014 net loss ($90.5 million) for these two denominations compared to FY 2013 

($104.5 million).

Compared to last year, the average spot prices for zinc increased 8.4 percent to $2,080.92 per tonne, nickel increased 

3.9 percent to $16,394.01 per tonne, and average copper prices fell 6.9 percent to $6,993.38 per tonne. 
9

ALTERNATIVE METALS

The Mint submitted its first biennial report to Congress in 

December 2012, which evaluated 29 potential alternative 

metal alloys for circulating coins. Since then, the Mint 

focused on full-scale production testing of six alternative

metal alloys while expanding its outreach to industry 

stakeholders regarding how the use of these alternative 

metals for circulating coins may affect commerce.

The Mint’s research included alternative manufacturing

methods that would reduce the cost of producing

circulating coins. The Mint delivered the second biennial 

report to Congress in December 2014. The Mint’s

biennial reports are available at our website at

www.usmint.gov. Test pieces at the Philadelphia Mint.

Circulating Seigniorage by Year ($ Millions)

$271

$(38)

$(53)
10

SHIPMENTS, COSTS, AND SEIGNIORAGE BY DENOMINATION

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

2014

Coins Shipments

Value of Shipments

Gross Cost

 Cost of Goods Sold

 Selling, General & Administrative

Seigniorage

Seigniorage per $1 Issued

One-Cent

 7,920

$ 79.2

$ 132.1

$ 115.3

$ 16.8

$ (52.9)

$ (0.67)

Five-Cent

 1,211

$ 60.5

$ 98.1

$ 85.7

$ 12.4

$ (37.6)

$ (0.62)

Dime

 2,223

$ 222.3

$ 87.1

$ 76.1

$ 11.0

$ 135.2

$ 0.61

Quarter-Dollar

 1,683

$ 421.0

$ 150.5

$ 132.2

$ 18.3

$ 270.5

$ 0.64

Dollar

 –

$ –

$ –

$ –

$ –

$ –

$ –

 Total

 13,037

$ 783.0

$ 493.9

$ 435.4

$ 58.5

$ 289.1

$ 0.37

Mutilated

 & Other

 –

$ –

$ 26.1

$ 26.1

$ –

$ (26.1)

$ –

2013

Coins Shipments

Value of Shipments

Gross Cost

 Cost of Goods Sold

 Selling, General & Administrative

Seigniorage

Seigniorage per $1 Issued

One-Cent

 6,610

$ 66.1

$ 121.1

$ 104.7

$ 16.4

$ (55.0)

$ (0.83)

Five-Cent

 1,123

$ 56.2

$ 105.7

$ 91.0

$ 14.7

$ (49.5)

$ (0.88)

Dime

 1,901

$ 190.1

$ 86.6

$ 75.1

$ 11.5

$ 103.5

$ 0.54

Quarter-Dollar

 1,062

$ 265.6

$ 111.5

$ 97.2

$ 14.3

$ 154.1

$ 0.58

Dollar

 –

$ –

$ –

$ –

$ –

$ –

$ –

 Total

 10,696

$ 578.0

$ 440.6

$ 383.7

$ 56.9

$ 137.4

$ 0.24

Mutilated

 & Other

 –

$ –

$ 15.7

$ 15.7

$ –

$ (15.7)

$ –

2012

Coins Shipments

Value of Shipments

Gross Cost

 Cost of Goods Sold

 Selling, General & Administrative

Seigniorage

Seigniorage per $1 Issued

One-Cent

 5,835

$ 58.4

$ 116.4

$ 96.5

$ 19.9

$ (58.0)

$ (0.99)

Five-Cent

 1,006

$ 50.3

$ 101.5

$ 84.1

$ 17.4

$ (51.2)

$ (1.02)

Dime

 1,658

$ 165.8

$ 82.7

$ 69.5

$ 13.2

$ 83.1

$ 0.50

Quarter-Dollar

 486

$ 121.7

$ 54.9

$ 46.6

$ 8.3

$ 66.8

$ 0.55

Dollar

 97

$ 97.1

$ 20.5

$ 17.7

$ 2.8

$ 76.6

$ 0.79

 Total

 9,082

$ 493.3

$ 387.4

$ 325.8

$ 61.6

$ 105.9

$ 0.21

Mutilated

 & Other

 –

$ –

$ 11.4

$ 11.4

$ –

$ (11.4)

$ –

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

Coin Shipments

Value of Shipments

Gross Cost

 Cost of Goods Sold

 Selling, General & Administrative

Seigniorage

Seigniorage per $1 Issued

 2014

 13,037

$ 783.0

$ 493.9

$ 435.4

$ 58.5

$ 289.1

$ 0.37

 2013

 10,696

$ 578.0

$ 440.6

$ 383.7

$ 56.9

$ 137.4

$ 0.24

 2012

 9,082

$ 493.3

$ 387.4

$ 325.8

$ 61.6

$ 105.9

$ 0.21

 2011

 7,396

$ 776.9

$ 428.1

$ 364.7

$ 63.4

$ 348.8

$ 0.45

 2010

 5,399

$ 618.2

$ 317.4

$ 239.2

$ 78.2

$ 300.8

$ 0.49

 21.9%

 35.5%

 12.1%

 13.5%

 2.8%

 110.4%

 54.2%

% Change

2013 to 2014
11

2014

Cost of Goods Sold

Selling, General & Administrative

Distribution to FRB

Total Unit Cost

One-Cent

$ 0.0143

$ 0.0021

$ 0.0002

$ 0.0166

Five-Cent

$ 0.0699

$ 0.0102

$ 0.0008

$ 0.0809

Dime

$ 0.0338

$ 0.0049

$ 0.0004

$ 0.0391

Quarter-Dollar

$ 0.0775

$ 0.0109

$ 0.0011

$ 0.0895

$1 Coin

$ –

$ –

$ –

$ –

UNIT COST OF PRODUCING AND DISTRIBUTING COINS BY DENOMINATION

2013

Cost of Goods Sold

Selling, General & Administrative

Distribution to FRB

Total Unit Cost

One-Cent

$ 0.0156

$ 0.0025

$ 0.0002

$ 0.0183

Five-Cent

$ 0.0805

$ 0.0131

$ 0.0005

$ 0.0941

Dime

$ 0.0391

$ 0.0061

$ 0.0004

$ 0.0456

Quarter-Dollar

$ 0.0903

$ 0.0135

$ 0.0012

$ 0.1050

$1 Coin

$ –

$ –

$ –

$ –

2012

Cost of Goods Sold

Selling, General & Administrative

Distribution to FRB

Total Unit Cost

One-Cent

$ 0.0163

$ 0.0034

$ 0.0003

$ 0.0200

Five-Cent

$ 0.0829

$ 0.0173

$ 0.0007

$ 0.1009

Dime

$ 0.0415

$ 0.0080

$ 0.0004

$ 0.0499

Quarter-Dollar

$ 0.0943

$ 0.0171

$ 0.0016

$ 0.1130

$1 Coin

$ 0.1802

$ 0.0288

$ 0.0021

$ 0.2111

NEW PROCESS

BOOSTS PRODUCTION

The Denver Die Manufacturing

Division implemented new robotic

lathe technology, shown at left,

that decreases the processing time

of dies from 2.5 days to 75 minutes. 

Members of the division were

honored with a Rittenhouse Medal

of Excellence Award.
12

MEET THE PUBLIC’S DEMAND FOR U.S. BULLION COINS

BULLION COINS 

Our 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.

We mint and issue gold, silver, and platinum bullion coins to authorized purchasers 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 This year, the bullion coin program revenue, net income, and ounces sold decreased

compared to FY 2013. Revenue totaled $1,814.4 million, down 44.1 percent from $3,244.6 million last year. Net 

income decreased 52.8 percent to $28.0 million from $59.3 million. 

In FY 2014, bullion trading prices were more subdued following the volatility that characterized FY 2013. There 

was a 33.5 percent and 46.8 percent decline between the highest and lowest spot price for gold and silver

respectively during last fiscal year. In contrast, prices were less volatile in FY 2014, with only a 13.7 percent and

a 24.8 percent decline between the highest and lowest gold and silver spot prices.

PLATINUM BULLION RETURNS IN 2014

Responding to increased market interest, the Mint resumed

sales of the American Eagle Platinum Bullion Coin in its 

most popular denomination — the one-ounce coin — for 

the first time since 2008.

Like the American Eagle Gold and Silver Bullion Coins, 

the American Eagle Platinum Bullion Coin is distributed 

through the Mint’s Authorized Purchasers, a network

of major coin and precious metals dealers, brokerage 

companies, and other participating financial

intermediaries, which maximizes availability in retail

and major investment markets. 

Produced exclusively at West Point, the obverse design

of the 2014 American Eagle Platinum Bullion Coin is 

“Portrait of Liberty,” by former Mint Sculptor-Engraver 

John Mercanti. The reverse design, “Soaring Bald Eagle,” 

is by former Mint Sculptor-Engraver Thomas D. Rogers, Sr.
13

BULLION COINS (dollars in millions)

Gold oz. sold (thousands)

Silver oz. sold (thousands)

Platinum oz. sold (thousands)

Sales Revenue

Gross Cost

 Cost of Goods Sold

 Selling, General & Administrative

Net Income

Bullion Net Margin

 2014

 702

 38,968

 14

$ 1,814.4

$ 1,786.4

$ 1,760.9

$ 25.5

$ 28.0

 1.5%

 2013

 1,218

 44,644

 –

$ 3,244.6

$ 3,185.3

$ 3,159.0

$ 26.3

$ 59.3

 1.8%

 2012

 788

 34,152

 –

$ 2,460.9

$ 2,432.5

$ 2,407.6

$ 24.9

$ 28.4

 1.2%

 2011

 1,235

 44,048

 –

$ 3,471.4

$ 3,405.6

$ 3,378.8

$ 26.8

$ 65.8

 1.9%

 2010

 1,839

 33,983

 –

$ 2,855.4

$ 2,800.2

$ 2,778.4

$ 21.8

$ 55.2

 1.9%

 (42.4%)

 (12.7%)

 –

 (44.1%)

 (43.9%)

 (44.3%)

 (3.0%)

 (52.8%)

 (16.7%)

% Change

2013 to 2014

BULLION COINS REVENUE, COST, AND NET INCOME BY PROGRAM

(dollars in millions)

2014

Ounces Sold (thousands)

Sales Revenue

Gross Cost

 Cost of Goods Sold

 Selling, General

 & Administrative

Net Income

Bullion Net Margin

American 

Eagle Gold

 524

$ 693.5

$ 676.5

$ 674.4

$ 2.1

$ 17.0

 2.5%

American 

Eagle Silver

 38,285

$ 849.9

$ 843.6

$ 821.1

$ 22.5

$ 6.3

 0.7%

America the 

Beautiful Silver

 683

$ 15.1

$ 14.6

$ 14.3

$ 0.3

$ 0.5

 3.3%

 Total

 39,684

$ 1,814.4

$ 1,786.4

$ 1,760.9

$ 25.5

$ 28.0

 1.5%

2013 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) 983 235 1,218 43,559 1,085 44,644 – 45,862

Sales Revenue $ 1,586.0 $ 371.9 $ 1,957.9 $ 1,256.0 $ 30.7 $ 1,286.7 – $ 3,244.6

Gross Cost $ 1,544.7 $ 362.9 $ 1,907.6 $ 1,248.2 $ 29.5 $ 1,277.7 – $ 3,185.3

 Cost of Goods Sold $ 1,541.6 $ 362.4 $ 1,904.0 $ 1,225.8 $ 29.2 $ 1,255.0 – $ 3,159.0

 Selling, General

 & Administrative $ 3.1 $ 0.5 $ 3.6 $ 22.4 $ 0.3 $ 22.7 – $ 26.3

Net Income $ 41.3 $ 9.0 $ 50.3 $ 7.8 $ 1.2 $ 9.0 – $ 59.3

Bullion Net Margin 2.6% 2.4% 2.6% 0.6% 3.9% 0.7% – 1.8%

2012

Ounces Sold (thousands)

Sales Revenue

Gross Cost

 Cost of Goods Sold

 Selling, General

 & Administrative

Net Income

Bullion Net Margin

American 

Eagle Gold

 647

$ 1,105.4

$ 1,077.4

$ 1,075.1

$ 2.3

$ 28.0

 2.5%

American 

Eagle Silver

 33,707

$ 1,100.6

$ 1,105.0

$ 1,083.0

$ 22.0

$ (4.4)

 (0.4%)

America the 

Beautiful Silver

 445

$ 14.3

$ 14.8

$ 14.6

$ 0.2

$ (0.5)

 3.5%

 Total

 34,940

$ 2,460.9

$ 2,432.5

$ 2,407.6

$ 24.9

$ 28.4

 1.2%

Sub-Total 

Silver

 34,152

$ 1,114.9

$ 1,119.8

$ 1,097.6

$ 22.2

$ (4.9)

 (0.4%)

American 

Buffalo Gold

 178

$ 234.0

$ 229.3

$ 228.8

$ 0.5

$ 4.7

 2.0%

American 

Buffalo Gold

 141

$ 240.6

$ 235.3

$ 234.9

$ 0.4

$ 5.3

 2.2%

Sub-Total 

Gold

 702

$ 927.5

$ 905.8

$ 903.2

$ 2.6

$ 21.7

 2.3%

Sub-Total 

Gold

 788

$ 1,346.0

$ 1,312.7

$ 1,310.0

$ 2.7

$ 33.3

 2.5%

Sub-Total 

Silver

 38,968

$ 865.0

$ 858.2

$ 835.4

$ 22.8

$ 6.8

 0.8%

American

Eagle Platinum

 14

$ 21.9

$ 22.4

$ 22.3

$ 0.1

$ (0.5)

 (2.3%)

American

Eagle Platinum

 –

 –

 –

 –

 –

 –

 –
MINT WINS AWARD AT DIRECTORS CONFERENCE

The United States Mint won a “Marketers’ Choice” award for the Reverse 

Proof One Ounce American Buffalo Gold Coin packaging at the 2014

XXVIII Mint Directors Conference in Mexico City. This coin was minted 

and issued in honor of the 100th anniversary of the original designs

appearing on the Type I Buffalo Nickel. Instead of a mirror-like background

and frosted design elements, the reverse proof coin had a frosted background

and mirror-like design elements. The packaging reflected this difference, 

with a look and feel that evoked the spirit of the American West.

GOLD BULLION COIN RESULTS September saw a modest uptick in investor demand for gold bullion, but 

gold bullion revenue and earnings remained low throughout the year, decreasing significantly from last year with 

considerably lower investor demand and lower gold spot prices. 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. Amid signs of an improving U.S. economy and a stronger U.S. Dollar, investor 

appetite for gold bullion waned. This year, the Mint sold 42.4 percent fewer gold bullion ounces compared to last 

year. Gold bullion revenue was down 52.6 percent, and earnings were down 56.9 percent in FY 2014.

FY 2014 gold bullion earnings decreased to $21.7 million from $50.3 million last year. Gold bullion earnings were 

lower primarily because there was less demand for American Eagle gold bullion coins, which declined 458,500 

ounces (46.7 percent) compared to last year. The drop in gold spot prices also decreased the percentage markup the 

Mint charged for each gold ounce sold, further reducing earnings from gold bullion coin sales. American Eagle gold 

coin revenues and net income decreased by 56.3 percent and 58.8 percent respectively compared to FY 2013. 

FY 2014 American Buffalo gold bullion coin sales also decreased 24.3 percent to 178,000 ounces from 235,000 

ounces last year. American Buffalo Gold Bullion Coin revenues and net income decreased by 37.1 percent and 47.8 

percent respectively compared to FY 2013. 

The FY 2014 average daily spot price of gold was $1,284.83 per ounce, down 15.6 percent from $1,521.61 per 

ounce in FY 2013.

14
15

SILVER BULLION COIN RESULTS Although every quarter of FY 2014 saw lower investor demand for silver

bullion compared to last year, demand tapered off significantly from June through August, before improving in

September. Lower silver spot prices resulted in lower revenue. FY 2014 silver bullion ounces sold were 12.7 percent

lower than the record amount set last year, while revenue was down 32.8 percent and earnings were down 24.4 percent.

Sales of American Eagle Silver Bullion Coin ounces decreased by 12.1 percent, decreasing revenue by $406.1

million and net income by $1.5 million compared to last year. America the Beautiful Five-Ounce Silver Bullion 

Coins revenue decreased by $15.6 million and net income decreased by $0.7 million because we sold 37.1 percent 

fewer ounces compared to last year.

The Mint increased blank supplies this year for American Eagle Silver Bullion Coins. Demand had outpaced supply 

since January 28, 2013, when the 2013 American Eagle Silver Bullion Coins went on allocation. Demand was high 

throughout FY 2013 and the first part FY 2014. As more blanks became available, the Mint took these coins off

allocation in June, increased production, and met the demand for these popular investment products. 

The FY 2014 average daily spot price of silver was $20.17 per ounce, down 24.7 percent from $26.79 last year.

Coinciding with the September increase in investor demand, silver prices recorded their lowest level of the fiscal 

year on September 30, 2014, when they dropped to $17.11.

PLATINUM BULLION COIN RESULTS In response to customer feedback, in the spring of FY 2014, the Mint 

offered a platinum bullion coin for the first time since December 2008, restoring our pre-recession portfolio of 

products. Resuming production was a significant milestone for the Mint and demonstrated our commitment to better 

serve our bullion customers. As with gold and silver, platinum sales were soft. The Mint sold 14,400 ounces of

platinum bullion generating revenue of $21.9 million. Start up costs contributed to an overall loss of $0.5 million.

The average daily spot price of platinum during FY 2014 was $1,427.59 per ounce, down 7.1 percent from 

$1,536.79 per ounce in FY 2013.
16

RESPONSIBLY EXPAND THE NUMISMATIC PROGRAM

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 our 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 our customer base and foster sales while controlling 

costs and keeping prices as low as practicable.

NUMISMATIC RESULTS Numismatic product sales 

increased to 5.7 million units in FY 2014 compared to 5.5 

million units in FY 2013. This was primarily because of a 

591.1 thousand unit increase in commemorative products. 

The Baseball Hall of Fame products contributed over 800 

thousand units in this category.

Numismatic revenue decreased 1.5 percent to $504.5

million in FY 2014 from $512.4 million last year, mainly 

driven by a $51.6 million (39.8 percent) decrease in silver 

coin products revenue. The 2013 American Eagle West 

Point Two-Coin Silver Set generated $32.0 million in this 

category in FY 2013 and had no equivalent this year. Another contributing factor for the decline was the American 

Eagle Silver One Ounce Proof Coin, which had $17.3 million (30.4 percent) lower sales compared to last year.

Because of lower silver spot prices, these products were priced 14.0 percent lower in FY 2014 compared to FY 2013.

The 2014 Kennedy Anniversary Gold Coin generated revenue of $76.2 million, by far the highest of any numismatic 

product revenue in FY 2014 and the fourth highest in the last ten years. The 2014 American Eagle Silver One Ounce 

Proof Coin, the 2014 United States Mint Proof Set, and the 2014 United States Mint Silver Proof Set were the most 

popular sellers (in terms of units) this year.

Numismatic program net income and seigniorage decreased 47.0 percent to $50.8 million in FY 2014 from $95.8 

million in FY 2013. The decrease was the result of a $32.7 million decrease in silver coin products earnings. Gold 

and platinum numismatic products generated the largest share of revenue (48.8 percent), compared to the other 

numismatic products. Similarly, this category generated $39.5 million in numismatic net income compared to $11.3 

million net income generated by the other categories. Annual recurring sets recorded a $13.5 million decrease in 

earnings, generating a loss of $16.9 million in FY 2014. Lower spot prices meant the price on silver proof sets was 

lower, resulting in reduced margins for these products. The numismatic net margin decreased to 10.1 percent in FY 

2014 from 18.7 percent in FY 2013.

FY 2014 COGS increased 8.4 percent compared to last year because of the increased sales of gold and platinum 

products. SG&A expenses increased 12.1 percent this year primarily because of a one-time investment to modernize 

the Mint’s customer order management system. Excluding this one-time investment, numismatic SG&A would have 

decreased by $7.5 million compared to last year. 

Introduced in March, the National Baseball Hall of Fame Commemorative Coin products helped increase

commemorative product unit sales by 180.7 percent over last year. The Kennedy Anniversary Gold Coin, which

debuted in August, helped increase gold and platinum product unit sales by 38.7 percent over last year. The unit 

sales for the other product categories decreased compared to last year.
17

UPGRADING CUSTOMER SERVICE

After two years of planning, the Mint’s new catalog website and order management system is ready for the public. In 

addition to updated software, hardware, and expanded bandwidth to support the new order management system, the 

website is user-friendly, faster, and gives customers more options for ordering, shipping, payment, and tracking. The 

old system was not only expensive to maintain, it was slow, difficult to repair, and unreliable. Customers found it 

frustrating to use on days we had high-volume sales and wait times could stretch for an hour or more.

The Mint’s goal was to create a fully integrated system that would capitalize on online retail industry best practices, 

while reducing maintenance costs and centralizing operations.

“This was not an easy task, as there had to be extensive coordination across multiple Mint offices and project

vendors,” said Dufour Woolfley, Project Manager.

Features of the new system include:

• Increased capacity to handle large

volumes of customer checkouts

simultaneously, which is especially 

important for product launches

• Faster shipment of products,

averaging two to three days delivery 

versus seven days with the

old system

• Real-time data to analyze sales

figures, project future product

launches, manage manufacturing

schedules and communicate

with customers

• Lower operational costs

Center of Excellence (COE)

A Center of Excellence was set up

at Mint headquarters to support

multiple functions to ensure we

meet the needs of Mint employees

and customers. Serving as our

“command center,” the COE brought

together a team of varying disciplinary

backgrounds and expertise from the

Information Technology Department,

Sales and Marketing, Financial

Department, and contractors to

transition to the new system.

“This is a huge accomplishment for the Mint,” said Deputy Director Dick Peterson. “We’re now much like other 

mainstream online retailers and can provide our customers with top-quality service and online shopping experiences. 

As one of our nation’s top online retailers, there is every reason for us to have a top-quality e-Commerce site. In 

fact, it’s long overdue.”

The Center of Excellence (COE), which is located at Mint Headquarters, 

serves as a temporary command center to meet the needs of employees

and customers while the Mint transitions to the new system. This diverse 

group includes teammates from the Information Technology, Sales and 

Marking, and Financial departments. The team is pictured above:

First row: Anoop Govil, Wanda Adams-Hembry, Dufour Woolfley, Jennifer 

Creque, Tan Van Luong Second row: Donna Blue, Sharlene Wallace, Ray 

Hardy, Yogesh Sharma, Tonya Banks, Chris Noonan-Sturm.

Not pictured: Beverly Babers, Annie Brown, Lauren Buschor, Cortez

Carrington, Gail Craig, Greg Dawson, Ashim Dey, Roger Drexler,

Joseph Gioeli, Colleen Grinnell, Tom Jurkowsky, Marc Landry, Katlyn 

Laverty-Wilson, Mary Lhotsky, Cynthia Meals, Glenda Morrow, David Motl, 

Olawole Olayinka, Zbigniew Porada, Heather Sabharwal, Karen Sieger, 

Adam Stump, DeAnna Wynn, Margaret Yauss
18

NUMISMATIC (dollars in millions)

Units Sold (Thousands)

Sales Revenue

Gross Cost

 Cost of Goods Sold

 Selling, General & Administrative

Net Income & Seigniorage

Numismatic Net Margin

Seigniorage Portion

 2014

 5,725

$ 504.5

$ 453.7

$ 386.3

$ 67.4

$ 50.8

 10.1%

$ 28.1 

 2013

 5,509

$ 512.4

$ 416.6

$ 356.5

$ 60.1

$ 95.8

 18.7%

$ 29.3 

 2012

 5,559

$ 481.2

$ 407.3

$ 346.1

$ 61.2

$ 73.9

 15.4%

$ 22.9

 2011

 7,311

$ 721.7

$ 608.5

$ 543.8

$ 64.7

$ 113.2

 15.7%

$ 9.8

 2010

 6,466

$ 413.1

$ 363.3

$ 298.6

$ 64.7

$ 49.8

 12.1%

$ 12.0

 3.9%

 (1.5%)

 8.9%

 8.4%

 12.1%

 (47.0%)

 (4.1%)

% Change

2013 to 2014

Net Income & Seigniorage figures are before protection costs. Seignorage portion results from the sale of circulating coins (boxes, bags and 

rolls) directly to the public through the numismatic channels.

(Left) Baseball coin design competition winner Cassie McFarland and San Francisco Press Room Supervisor 

Carlos Dumpit show off the newly minted proof half-dollar coins. (Right) United States Mint Sculptor-Engraver Don 

Everhart holds a 2014 National Baseball Hall of Fame Commemorative Coin. Everhart designed the coin’s reverse.

NATIONAL BASEBALL HALL OF FAME AND COMMEMORATIVE COIN PROGRAM

FISCAL 2014 ANNUAL REPORT (OCT. 1, 2013 – SEPT. 30, 2014)

The 2014 National Baseball Hall of Fame Commemorative Coin Program proved to be one of the most popular and 

successful programs in the history of the United States Mint. The 50,000 gold coins sold out within 24 hours and the 

400,000 silver dollars in just 13 days. As of the end of fiscal 2014, $7.5 million in surcharges had been raised for the 

recipient organization, the National Baseball Hall of Fame and Museum in Cooperstown, New York. Coin sales had 

resulted in $48.8 million of revenue as of September 30, 2014. 

Planning for the program started in early 2013, with the Sales and Marketing and Manufacturing Departments

working closely with the Offices of Design Management and Corporate Communications. The United States Mint 

ran a national design competition for the coins’ common reverse and prepared for the opening of sales in March 

2014. National Baseball Hall of Fame members and Members of Congress lent their time for promotional events 

leading up to the release. 

Despite the program’s challenges, the United States Mint produced its first-ever gold, silver and clad curved coins, 

reflecting the very best in craftsmanship and beauty. 

-
19

 Total

 5,725

$ 504.5

$ 453.7

$ 386.3

$ 67.4

$ 50.8

 10.1%

Silver Coin 

Products

 1,222

$ 77.9

$ 69.3

$ 58.0

$ 11.3

$ 8.6

 11.0%

Annual 

Sets*

 1,477

$ 52.9

$ 69.8

$ 47.4

$ 22.4

$ (16.9)

 (31.9%)

Quarter 

Products

 573

$ 13.6

$ 16.1

$ 10.8

$ 5.3

$ (2.5)

 (18.4%)

Presidential and 

First Spouse Medals

 996

$ 45.5

$ 21.8

$ 12.2

$ 9.6

$ 23.7

 52.1%

Miscellaneous

 342

$ 21.7

$ 27.2

$ 20.9

$ 6.3

$ (5.5)

 (25.3%)

Commemorative

 918

$ 46.5

$ 42.6

$ 34.1

$ 8.5

$ 3.9

 8.4%

Gold and Platinum 

Coin Products

 197

$ 246.4

$ 206.9

$ 202.9

$ 4.0

$ 39.5

 16.0%

2014

Units Sold (Thousands)

Sales Revenue

Gross Cost

 Cost of Goods Sold

 Selling, General

 & Administrative

Net Income

& Seigniorage

Numismatic

Net Margin

Seigniorage Portion $ – $ – $ – $ 2.5 $ 22.0 $ – $ 3.6 $ 28.1

 Total

 5,509

$ 512.4

$ 416.6

$ 356.5

$ 60.1

$ 95.8

 18.7%

$ 29.3

2013

Units Sold (Thousands)

Sales Revenue

Gross Cost

 Cost of Goods Sold

 Selling, General

 & Administrative

Net Income

& Seigniorage

Numismatic

Net Margin

Seigniorage Portion

Silver Coin 

Products

 1,521

$ 129.5

$ 88.2

$ 75.6

$ 12.6

$ 41.3

 31.9%

$ –

Annual 

Sets*

 1,587

$ 62.8

$ 66.2

$ 47.6

$ 18.6

$ (3.4)

 (5.4%)

$ –

Quarter 

Products

 716

$ 17.8

$ 15.1

$ 10.2

$ 4.9

$ 2.7

 15.2%

$ 2.7

Presidential and 

First Spouse Medals

 1,007

$ 44.9

$ 22.3

$ 15.1

$ 7.2

$ 22.6

 50.3%

$ 22.8

Gold and Platinum 

Coin Products

 142

$ 214.2

$ 184.6

$ 181.9

$ 2.7

$ 29.6

 13.8%

$ –

Miscellaneous

 209

$ 20.2

$ 17.9

$ 6.9

$ 11.0

$ 2.3

 11.4%

$ 3.8

Commemorative

 327

$ 23.0

$ 22.3

$ 19.2

$ 3.1

$ 0.7

 3.0%

$ –

Silver Coin Total

Products

Annual 

Sets*

Quarter 

Products

Presidential and 

First Spouse Medals

Gold and Platinum 

Coin Products

2012 Commemorative Miscellaneous

 5,559

$ 481.2

$ 407.3

$ 346.1

$ 61.2

$ 73.9

 15.4%

$ 22.9

 1,568

$ 150.5

$ 101.3

$ 83.9

$ 17.4

$ 49.2

 32.7%

$ –

 1,627

$ 65.7

$ 68.4

$ 49.6

$ 18.8

$ (2.7)

 (4.1%)

$ –

 737

$ 18.9

$ 19.0

$ 13.6

$ 5.4

$ (0.1)

 (0.5%) 

$ 2.2

 891

$ 35.4

$ 17.8

$ 10.7

$ 7.1

$ 17.6

 49.7%

$ 17.6

 105

$ 161.5

$ 142.1

$ 140.2

$ 1.9

$ 19.4

 12.0%

$ –

 194

$ 20.2

$ 29.9

$ 24.4

$ 5.5

$ (9.7)

 (48.0%)

$ 3.1

 437

$ 29.0

$ 28.8

$ 23.7

$ 5.1

$ 0.2

 0.7%

$ –

Units Sold (Thousands)

Sales Revenue

Gross Cost

 Cost of Goods Sold

 Selling, General

 & Administrative

Net Income

& Seigniorage

Numismatic

Net Margin

Seigniorage Portion

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.
20

Native American tribes and nations received Congressional Gold Medals and certificates of recognition on behalf

of their ancestors’ valor and dedication during World War I and World War II. (Official Photo by Caleb Smith,

Office of the Speaker)

CONGRESSIONAL GOLD MEDALS

HONOR CODE TALKERS

This year, the Mint produced 26 Congressional Gold Medals to honor 

Native American code talkers, men who served in the U.S. Armed 

Forces and transmitted secret coded messages for tactical military 

operations in World War I and World War II.

When the United States entered World War I, Native Americans were 

not considered citizens of the United States. Nevertheless, members

of Indian tribes and nations enlisted in the Armed Forces. Because

the language used by the code talkers was not based on a European 

language or on a mathematical progression, enemies were unable

to understand any of the transmissions. When World War II started,

Native Americans once again served as code talkers.

Legislation for the code talker medals specified that each Native 

American tribe or nation that had a member who served as a code

talker should be honored, with the exception of the Navajo Nation, 

which was honored in 2001. In addition, individual code talkers,

their family, or personal representative were awarded duplicate

silver medals.

A total of 33 medals will be awarded under this program. Twenty-six 

medals have been awarded so far. Please see the images of these

beautiful medals on pages 54 and 55.

Mr. Edmond Harjo, a member of the Seminole

Nation of Oklahoma, was a code talker

in World War II who served in Normandy 

and Iwo Jima. He was the only original

code talker to attend the Congressional

Gold Medal ceremony in November 2013

in Washington, D.C.
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 or medal ordinarily includes a surcharge authorized to be paid to a designated recipient organization.

Two commemorative coin programs began in FY 2014. By September 30, the 2014 Civil Rights Act of 1964 Silver 

Dollar had revenue of $4.0 million with surcharges of $0.8 million collected for its recipient organization, the United 

Negro College Fund. The 2014 National Baseball Hall of Fame Commemorative Coin Program had revenue of 

$48.8 million with surcharges of $7.5 million collected for its recipient organization, the National Baseball Hall of 

Fame. These programs run through December 31, 2014.

Two commemorative programs finished in FY 2014. The 2013 5-Star Generals Commemorative Coin Program had 

revenue of $17.3 million with surcharges of $2.2 million collected for its recipient organization, the United States 

Army Command and General Staff College Foundation. The 2013 Girl Scouts USA Centennial Commemorative 

Coin Program generated $6.8 million in revenue.

COMMEMORATIVE COIN HIGHLIGHTS INNOVATION

AT MINT

Typically, proof coins have a mirror-like background and their frosted, 

sculpted foregrounds create a cameo effect. In contrast, the reverse of

the 2014 Civil Rights Act of 1964 Silver Dollar has four different finishes:

mirror, two types of laser frost, and an accent polish. 

The flame is mirror polished; the field under the flame incorporates a

combination of light polishing and a light laser frost texture; the lettering 

and torch have a heavy laser frost texture; and the circular ring with text

has an accenting polish. This is the first time the United States Mint has 

used this combination of finishes. 
22

50TH ANNIVERSARY OF THE KENNEDY HALF-DOLLAR

To commemorate the 50th anniversary of the iconic Kennedy half-dollar, 

we created three special sets featuring the original 1964 portrait design

by renowned United States Mint Chief Engraver Gilroy Roberts.

The 50th Anniversary Kennedy Half-Dollar Gold Proof Coin went on

sale August 5, just in time for the American Numismatic Association’s 

annual World’s Fair of Money in Chicago. This first-ever gold half-dollar 

contains three-quarters troy ounce of .9999 fine, 24-karat gold. It was 

struck with a proof finish at the West Point Mint and incorporated a dual 

date of 1964-2014 to commemorate the 50th anniversary.

The 50th Anniversary Kennedy Half-Dollar Uncirculated Coin Set

contains two uncirculated Kennedy half-dollars from the Philadelphia

and Denver facilities. The third product in the series, the 50th Anniversary

Kennedy Half-Dollar Silver Coin Collection, with four coins (one from 

each production facility) will go on sale in early FY 2015.

CONGRESSIONAL GOLD MEDALS

In a normal year, the Mint might produce three or four gold medals. This year, a total of 32 were produced in

Philadelphia and presented to honorees and their representatives.

The bulk of these medals went to the Native American code talkers. We began preparing, striking, and awarding 

these medals in 2013, and in 2014, we awarded medals to 26 nations or tribes: Cherokee Nation, Cheyenne River 

Sioux Tribe, Choctaw Nation, Comanche Nation, Crow Creek Sioux Tribe, Fort Peck Assiniboine and Sioux Tribes, 

Ho-Chunk Nation, Hopi Tribe, Kiowa Tribe, Menominee Nation, Meskwaki Nation, Muscogee (Creek) Nation, 

Oglala Sioux Tribe, Oneida Nation, Osage Nation, Pawnee Nation, Ponca Tribe, Pueblo of Acoma Tribe, Santee 

Sioux Nation, Seminole Nation, Sisseton Wahpeton Oyate (Sioux) Tribe, Standing Rock Sioux Tribe, Tlingit Tribe, 

Tonto Apache Tribe, White Mountain Apache Tribe, and Yankton Sioux Tribe. 

Seven other tribes will be honored in the future: Lower Brule Sioux Tribe, Cheyenne and Arapaho Tribes, Fond du 

Lac Band of Lake Superior Chippewa Tribe, Crow Tribe, Pueblo of Laguna, Rosebud Tribe, and Mohawk Tribe.

The Navajo Nation was awarded in 2001.

The remaining six Congressional Gold Medals were awarded to: 

• The late Reverend Doctor Martin Luther King, Jr., and Coretta Scott King for their contributions to the civil

rights movement.

• Shimon Peres, former President of Israel, who served his government for more than 70 years. When we learned he 

would be visiting the United States, we produced his medal in only 17 days, so it could be presented to him in person.

• The late Raoul Wallenberg, for his achievements and heroic actions during World War II working with the

resistance in Budapest.

• The men and women who died in the terrorist attacks in the United States on September 11, 2001. We produced 

three September 11 Congressional Gold Medals, one for each site.
23

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 United States 

Mint Public Enterprise Fund. Periodically, the Mint transfers amounts in the PEF determined to be in excess of 

amounts required to support on-going operations and programs. The circulating, bullion, and numismatic program 

data exclude costs for the protection of custodial assets activity (protection). Consolidated earnings are discussed 

below to provide a status of the entirety of the United States Mint PEF compared to prior periods.

FY 2014 protection costs decreased by 8.1 percent 

compared to last year to $39.6 million. FY 2014 PEF 

earnings after protection costs increased to $328.3 

million compared to $249.4 million last year.

The Mint made two transfers to the General Fund 

this fiscal year totaling $272 million. In FY 2013, we 

transferred $392 million. 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. On September 30, 2014, the

Mint made a non-budget transfer of $250 million

to the General Fund.

Budget transfers to the General Fund from the PEF 

usually consist of numismatic net income and can be 

treated as a budgetary receipt to the government. The Mint made a budget transfer of $22 million from numismatic 

and bullion earnings to the General Fund in January 2014, compared to $42 million transferred last year.

Non-Budget

Budget

FOSTER A SAFE, ENGAGED, AND INNOVATIVE WORKFORCE

It is the goal of the Mint to have a safe, engaged and innovative workforce. Embracing innovative practices by

engaging modern technologies and becoming more environmentally sustainable not only benefits the Mint’s

employees, but also benefits the communities in which the Mint operates and ultimately the American public.

SAFETY AND ENVIRONMENT The safety incident recordable rate is the number of injuries and illnesses

meeting the Occupational Safety and Health Administration recording criteria per 100 full-time workers. The Mint 

safety incident recordable rate for FY 2014 was 3.31. This rate is above the Mint’s target of 3.05 for this year, but

is below the industry average recordable rate of 6.8 for metal forging and stamping manufacturers.

In FY 2014 the Mint set a goal to become world class in safely operating our facilities and optimizing our

environmental footprint. This multi-year endeavor involves achieving various safety milestones and certifications

at each facility. To achieve this goal, the Mint established a new office of Environmental, Safety, and Health,

redeployed a key executive with prior private sector manufacturing experience to lead the office, realigned the 

existing staff under this office and established reporting relationships with the five safety managers at the field sites. 

Already, the office has commissioned a comprehensive safety and environmental review of each facility and used 

the findings and recommendations to develop a multi-year roadmap.
24

MINT AND BEP HOLD JOINT 

TOWN HALL

Rosie Rios, Treasurer of the United States, 

led the Mint and the Bureau of Engraving 

and Printing in a joint Town Hall meeting

in July. She was joined by Larry R. Felix,

Director of the Bureau of Engraving and 

Printing, and Richard A. Peterson, Deputy 

Director of the United States Mint. The two 

bureaus have different operational facilities,

but our shared goal of providing legal

tender means that we have many similar 

concerns: security of assets, operational 

costs, and efficiency. 

Over the years, the Mint has made sustainability efforts a top priority. Initially, we concentrated on making substantial

changes to our buildings and production operations to reduce our carbon footprint, with positive results that have 

reduced our greenhouse gas emissions across the board. Department of the Treasury goals called for the Mint to 

reduce direct emissions by 33 percent and indirect emissions by 11 percent by the year 2020. Instead, we surpassed 

those goals several years ago. Through 2013 we reduced direct emissions by 54 percent and indirect emissions by

59 percent, even with increased production in all three business lines.

HIRING Throughout the federal government, the workforce is aging and beginning to retire in increasing numbers. 

Hiring the right people for the right jobs is a priority for the Mint as we meet the President’s requirements for hiring 

reform. Many of our new hires this year were disabled military veterans. The Treasury Department’s goal is for 6 

percent of all new hires to be disabled veterans; 12 percent of the Mint’s new hires met this classification.
25

ANALYSIS OF SYSTEMS, CONTROLS, AND LEGAL COMPLIANCE

The Mint is responsible for establishing and maintaining effective internal controls 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 Reports Consolidation Act of 2000. 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 substantial 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 standards, (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, we provide herein unqualified assurance that the above listed management control

objectives, taken as a whole, were achieved by our organization during FY 2014. Specifically, this assurance is

provided in accordance with Sections 2 and 4 of the FMFIA. We further assure that our financial management

systems are in substantial compliance 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. We conducted the 

required Treasury evaluation of the effectiveness of the United States Mint internal controls over financial reporting 

in accordance with OMB Circular A-123, Management’s Responsibility for Internal Control. Based on the results 

of this evaluation, we can provide unmodified assurance that internal controls over financial reporting as of June 

30, 2014, are operating effectively and no material weaknesses were found in the design or operation of the internal 

controls 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 Officers’ Act, as amended,

including a) information revealed in preparing the financial statements, b) auditor’s 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. 
26

Officer Curtis Penley and Lt. George Wilson guard the 

Native American Code Talkers Recognition Congressional 

Gold Medals before they were presented to the honorees.

PROTECTION EARNS LAW

ENFORCEMENT ACCREDITATION

After more than three years of intense work and

effort, the Mint’s Protection Department successfully

completed Commission on Accreditation of Law

Enforcement Agencies (CALEA) accreditation, 

making it one of only two federal law enforcement 

organizations to do so. 

Gaining accreditation required modernizing

existing policies and creating more than 30 new

policies and operating procedures. Field sites

focused on meeting more than 140 required

standards in areas ranging from equipment

readiness to detailed monitoring of timely training 

and certification requirements. 

CALEA accreditation ensures a heightened level

of professionalism and accountability across the 

police force. It validates a high standard of

performance and overall service delivery to the

Mint and its stakeholders.

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

1987 (40 U.S.C. 759 note) and OMB Circular A-130, Management of Federal Information Resources. 

• Annual assessments, reviews, and reporting performed in compliance with the Improper 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).

• Quarterly reviews of Mint Purchase Cards.

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.

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
27

MESSAGE FROM THE CHIEF FINANCIAL OFFICER:

I am pleased to present the Mint’s financial statements as part of the FY 2014 Annual

Report. Once again in 2014, our auditors rendered an unmodified audit opinion on

these financial statements.

As the financial statements show, the Mint is in good fiscal health. Actions to control 

costs, increase efficiency, and strategically reserve resources have provided a solid

foundation that enables the Mint to be flexible and nimble when responding to our 

customers. Over the past year, continued efforts in lean practices, management controls, 

zero-based budgeting, and cash management have positively affected the Mint’s fiscal 

results. This fiscal year we transferred $250 million of seigniorage to the general fund.

Our overhead and selling, general, and administrative costs continue trending downward. 

Excluding a one-time investment in our numismatic online ordering system, FY 2014

selling, general, and administrative costs decreased by 6 percent compared to last year

and 18 percent compared to five years ago. Although circulating coinage operations grew for the fifth consecutive 

year to meet increased FRB demand, we decreased the overhead costs at our manufacturing facilities by 5 percent 

compared to last year and 7 percent compared to five years ago. One effect of these efforts can be seen in the unit 

cost of circulating coins. 

Another effect of these efforts is our ability to invest in the future. Our online ordering system for numismatic

products was out of date and needed substantial improvement to meet customer expectations. This was a major 

undertaking, with dedicated employees from across the Mint working together to ensure the end result will not only 

conform to current business standards and customer expectations but also meet the needs of the Mint’s customers

for years to come.

An additional investment the Mint made in FY 2014 centered on serving our bullion customers. The Mint offered 

platinum bullion coins for sale for the first time since December 2008. To accomplish this, the Mint had to invest in 

a supply chain for platinum that would satisfy our customers, limit the Mint’s exposure and risk, and be cost effective.

After extensive research and test models, the Mint began leasing precious metals for the first time. This strategy 

proved to be an effective and efficient method for supplying platinum bullion coins to our customers. 

One final investment to mention: In FY 2014, the Mint upgraded our financial system (Oracle ERP) to the most

current version. This effort was more reflective of an implementation than an upgrade in versions and took extensive

efforts of our Mint team and our Bureau of Fiscal Services partner, the Administrative Resource Center. This upgrade

will help ensure our financial data, records, and reports continue to be consistent with the business standards of today.

The statements presented here are in compliance with accounting standards issued by the Federal Accounting

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

Accountants as the standard-setting body for the financial statements of federal government entities, with respect 

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

comprehensive assessment of the effectiveness of internal controls over financial reporting. Based upon the results 

of this review, we can provide unmodified assurance that internal controls over financial reporting are operating

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

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.

David Motl, Chief Financial Officer

David Motl

United States Mint

Chief Financial Officer
28

Independent Auditors’ Report

Inspector General

United States Department of the Treasury

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, 2014 and 2013, 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; the standards

applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the 

United States; and Office of Management and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal 

Financial Statements. Those standards and OMB Bulletin No. 14-02 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. 
29

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, 2014 and 2013, 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.

Other Matters

Required Supplementary Information

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

Analysis, 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 

Deputy Director’s Letter, Organizational Profile, The United States Mint at a Glance, Message from the Chief 

Financial Officer, Other Information and Appendix 1: FY 2014 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 audit 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 11, 2014 on

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

11, 2014 on our tests of its compliance with certain provisions of laws, regulations, contracts, and other matters.

The purpose of those reports is to describe the scope of our testing of internal control over financial reporting and 

compliance and the results of that testing, and not to provide an opinion on the internal control over financial

reporting or on compliance. Those reports are an integral part of an audit performed in accordance with Government 

Auditing Standards in considering United States Mint’s internal control over financial reporting and compliance.

December 11, 2014
30

DEPARTMENT OF THE TREASURY UNITED STATES MINT

BALANCE SHEETS

As of September 30, 2014 and 2013

2014 2013

(dollars in thousands)

Assets

Intragovernmental:

 Fund Balance with Treasury (Note 3) $ 780,867 $ 713,156

 Advances and Prepayments (Note 5) 1,530 

 

 2,271

Total Intragovernmental Assets 782,397 715,427

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

 

 Inventory (Notes 7 and 20) 

 Supplies 

 Property, Plant and Equipment, Net (Note 8) 

 

Accounts Receivable, Net (Note 4) 18,222 20,437

 547,778 472,017

 13,845 14,214

 186,451 183,309

Advances and Prepayments (Note 5) 2 1

Total Non-Intragovernmental Assets $ 11,260,038 $ 11,183,718

Total Assets (Notes 2 and 14) $ 12,042,435 $ 11,899,145

Heritage Assets (Note 9)

Liabilities

Intragovernmental:

 Accounts Payable $ 5,645 $ 5,536

 Accrued Workers’ Compensation and Benefits 7,390 7,919

Total Intragovernmental Liabilities 13,035 13,455

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

 Accounts Payable 89,950 21,169

 Surcharges Payable (Note 3) 9,569 6,128

 Accrued Payroll and Benefits 15,034 13,155

 Other Actuarial Liabilities 31,428 31,543

 Unearned Revenue 2,935 2,756

 Deposit Fund Liability (Notes 10 and 12) 94 94

Total Non-Intragovernmental Liabilities $ 10,642,750 $ 10,568,585

Total Liabilities (Notes 10) $ 10,655,785 $ 10,582,040

Commitments and Contingencies (Notes 12 and 13)

Net Position

Cumulative Results of Operations - Funds from

 Dedicated Collections (Note 14) 1,386,650 1,317,105

Total Liabilities and Net Position $ 12,042,435 $ 11,899,145

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

2014 2013

2014 2013
31

DEPARTMENT OF THE TREASURY UNITED STATES MINT

STATEMENTS OF NET COST

For the years ended September 30, 2014 and 2013

Numismatic Production and Sales

 Gross Cost $ 2,231,346 $ 3,591,557

 Less Earned Revenue (2,281,950) (3,717,423)

Net Program Cost (Revenue) (50,604) (125,866)

Numismatic Production and Sales of Circulating Coins

 Gross Cost 8,799 10,347

 Less Earned Revenue (Note 16) (8,799) (10,347)

Net Program Cost (Revenue) – –

Circulating Production and Sales

 Gross Cost 493,931 440,608

 Less Earned Revenue (Note 16) (493,931) (440,608)

Net Program Cost (Revenue) – –

Net Cost (Revenue) Before Protection of Assets (50,604) (125,866)

Protection of Assets

 Protection Costs 39,562 43,163

 Less Earned Revenue – (27)

Net Cost of Protection of Assets 39,562 43,136

Net Cost (Revenue) from Operations (Notes 14 and 15) $ (11,042) $ (82,730)

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

2014 2013

(dollars in thousands)
32

DEPARTMENT OF THE TREASURY UNITED STATES MINT

STATEMENTS OF CHANGES IN NET POSITION

For the years ended September 30, 2014 and 2013

Cumulative Results of Operations

Net Position, Beginning of Year - Funds from Dedicated Collections $ 1,317,105 $ 1,445,653

Financing Sources:

 Transfers to the Treasury General Fund Budget (Note 19) (22,000) (41,999)

 Transfers to the Treasury General Fund Non-Budget (Note 19) 

 

 (250,000) 

 

 (350,000)

 Other Financing Sources (Seigniorage) (Note 16) 317,201 166,691

 Imputed Financing Sources (Note 11) 13,302 13,757

 Transfer in Without Reimbursement – 273

Total Financing Sources 58,503 (211,278)

Net Revenue from Operations 11,042 82,730

Net Position, End of Year - Funds from

 Dedicated Collections (Note 14) $ 1,386,650 $ 1,317,105

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

2014 2013

(dollars in thousands)
33

DEPARTMENT OF THE TREASURY UNITED STATES MINT

STATEMENTS OF BUDGETARY RESOURCES

For the years ended September 30, 2014 and 2013

Budgetary Resources:

Unobligated balance, brought forward, October 1 

 

 

$ 496,291 $ 693,852

Recoveries of prior-year unpaid obligations 17,578 41,809

Other changes in unobligated balance (22,000) (41,999)

Unobligated balance from prior year budget authority, net 491,869 693,662

Spending Authority from Offsetting Collections 2,876,503 3,961,232

Total Budgetary Resources $ 3,368,372 $ 4,654,894

Status of Budgetary Resources:

Obligations Incurred (Note 17) $ 2,861,633 $ 4,158,603

Unobligated balance, end of year

Apportioned 506,739 496,291

Total Budgetary Resources $ 3,368,372 $ 4,654,894

Change in Obligated Balances:

Unpaid obligations:

 Unpaid obligations, brought forward, October 1 $ 198,438 $ 276,501

Obligations Incurred (Note 17) 2,861,633 4,158,603

Gross Outlays (2,762,475) (4,194,857)

Recoveries of Prior Year Unpaid Obligations (17,578) (41,809)

Unpaid obligations, end of year $ 280,018 $ 198,438

Uncollected Payments:

Uncollected customer payments from Federal

 Sources, Brought Forward, October 1 $ (5,964) $ (5,930)

Change in uncollected customer payments from Federal sources (20) (34)

Uncollected payments, Federal sources, end of year $ (5,984) $ (5,964)

Memorandum (non-add) entries:

Obligated balance, start of year 

 

 

 

$ 192,474 $ 270,571

Obligated Balance, end of year $ 274,034 $ 192,474

Budget Authority and Outlays, Net:

Budget Authority, gross $ 2,876,503 $ 3,961,232

Actual offsetting collections (2,852,186) (3,985,495)

Change in uncollected customer payments from Federal Sources (20) (34)

Budget Authority, net $ (24,297) $ (24,297)

Outlays, gross $ 2,762,475 $ 4,194,857

Actual offsetting collections (2,852,186) (3,985,495)

Outlays, Net $ (89,711) $ 209,362

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

2014 2013

(dollars in thousands)
34

NOTES TO THE FINANCIAL STATEMENTS

For the Years Ended September 30, 2014 and 2013

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, 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. 
35

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 Source (Seigniorage): Seigniorage equals the face value of newly minted coins, less 

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

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

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

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

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

means of financing. 

Rental Revenue: The Mint sublets office space at cost to other federal entities in a 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 at the lower of either 

cost or market. Costs of the metal and fabrication components of the inventories are determined using 

a weighted average inventory methodology. Conversion costs (i.e., the cost to convert the fabricated 

blank into a finished coin) are valued using a standard cost methodology. The 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). 
36

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 10 to 30 years

Improvements

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 

general property, plant, and equipment.

HERITAGE ASSETS Heritage assets are items that are unique because of their historical, cultural, 

educational, or artistic importance. These items are collection-type assets that are maintained for

exhibition and are preserved indefinitely. 

LIABILITIES Liabilities represent actual and estimated amounts likely to be paid as a result of

transactions or events that have already occurred. All liabilities covered by budgetary resources can

be paid from revenues received by the PEF.
37

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 Standard (SFFAS 

43): Funds from Dedicated Collections: Amending SFFAS 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 job-related injuries or 

occupational disease. The FECA program is administered by the United States Department of Labor 

(DOL), which pays valid claims and subsequently seeks reimbursement from the 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. 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.
38

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 COST 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). 

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. 
39

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. 

HEDGING The Mint engages in a hedging program to avoid the effects of fluctuating silver costs as a 

result of the changes in market prices. The Mint purchases silver in large quantities and sells an interest 

in that silver to a trading partner, while maintaining physical custody and title to the silver. Sales of

silver to the trading partner are made at the same spot price that the Mint paid to obtain the silver on 

the open market. The partner’s interest in the Mint’s silver is reduced as finished silver bullion coins 

are sold to Authorized Purchasers (APs). Repurchases of the trading partner’s interest in the silver

occurs upon sale of coins by the Mint. Repurchases are made on the same day as sales, in the same 

quantity sold, and using the same spot price as was used for the sale to the AP. Each sale to and from 

the trading partner carries a small transaction fee, the selling and buying fees net to a cost of one-half 

cent per ounce. The Mint incurred $181 thousand in hedging fees in FY 2014, compared to $212

thousand incurred in FY 2013.

RECLASSIFICATION Certain prior year amounts have been reclassified to conform to the

September 30, 2014 presentation.

2. NON-ENTITY ASSETS

Components of Non-entity Assets at September 30 are as follows:

(dollars in thousands) 

 

 

 2014 2013

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 1,548,695 1,405,405

Total Assets $ 12,042,435 $ 11,899,145

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.

3. FUND BALANCE WITH TREASURY

Fund Balance with Treasury at September 30 consists of:

(dollars in thousands) 2014 2013

Revolving Fund $ 780,773 $ 713,062

Other Fund Types 94 94

Total of Fund Balance with Treasury $ 780,867 $ 713,156

Status of Fund Balance with Treasury

Unobligated Balance $ 506,739 $ 496,291

Obligated Balance, Not Yet Disbursed 274,034 192,474

Adjustment for Authority Unavailable for Obligations - 24,297

Non-Budgetary FBWT 94 94

Total $ 780,867 $ 713,156
40

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, 2014 and 2013, the revolving fund

balance included $9.6 million and $6.1 million, respectively, in restricted amounts for possible payment

of surcharges to recipient organizations.

4. ACCOUNTS RECEIVABLE, NET

Components of accounts receivable are as follows:

(dollars in thousands) 

 

 

September 30, 2014

 Gross Receivables Allowance Net Receivables

Intragovernmental 

 

 

 20,899 

 

$ 5,946 $(5,946) $ –

With the Public 18,562 (340) 18,222

Total Accounts Receivable $ 24,508 $(6,286) $ 18,222

(dollars in thousands) September 30, 2013

 Gross Receivables Allowance Net Receivables

Intragovernmental $ 5,946 $(5,946) $ –

With the Public (462) 20,437

Total Accounts Receivable $ 26,845 $(6,408) $ 20,437

Intragovernmental accounts receivable are fully reserved as of September 30, 2014 and 2013. The Mint 

entered into an arrangement for the production and sale of a joint numismatic product with another

federal agency. The other agency owes the Mint approximately $5.9 million, which the bureau has 

been unable to collect. In keeping with the Mint write-off policy, the debt has been moved to the

Allowance for Uncollectible Accounts account, which produces a net intragovernmental accounts 

receivable amount of zero. 

Receivables with the public at September 30, 2014, are $18.6 million, of which $13.6 million is owed 

by fabricators for scrap, webbing, and mutilated coin. The remaining $5.0 million is owed by the 

public for numismatic products. This compares to receivables with the public at September 30, 2013, 

of $20.9 million, of which $17.5 million was owed by fabricators for scrap and webbing, in addition to 

the $3.4 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:

(dollars in thousands) 

 

 

 

 2014 

 

 

 

 2013

Intragovernmental $ 1,530 $ 2,271

With the Public 2 1

Total Other Assets $ 1,532 $ 2,272

In prior years, a large portion of the advances and prepayment balance related to the Working Capital 

Fund (WCF). On October 1, 2013, all balances were transferred to the Treasury Franchise Fund (TFF) 

from the Working Capital Fund. Treasury ended its practice of collecting advances to fund the WCF 

and moved to a reimbursable activity, which is why the WCF/TFF advance balance has decreased since 

FY 2012 and currently is zero as the TFF is billing actual cost for services rendered. In FY 2014, the 

Mint paid the TTF for a variety of centralized services. The balance of approximately $1.5 million 

represents payments made to the United States Postal Service for product delivery services as of

September 30, 2014, compared to approximately $1.3 million paid at September 30, 2013. Advances 

with the public for both FY 2014 and 2013 are outstanding travel advances to Mint employees who 

were traveling on government business.
41

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:

 2014 2013

Gold - Deep Storage:

 Inventories (FTO) 

 

 245,262,897 245,262,897

 Market Value ($ per FTO) $ 1,216.50 $ 1,326.50

 Market Value ($ in thousands) $ 298,362,314 $ 325,341,233

 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) $ 1,216.50 $ 1,326.50

 Market Value ($ in thousands) $ 3,385,786 $ 3,691,940

 Statutory Value ($ in thousands) $ 117,514 $ 117,514

Silver - Deep Storage:

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

 Market Value ($ per FTO) $ 17.11 $ 21.68

 Market Value ($ in thousands) $ 121,056 $ 153,390

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

Silver - Working Stock:

 Inventories (FTO) 8,924,829 8,924,829

 Market Value ($ per FTO) $ 17.11 $ 21.68

Market Value ($ in thousands) $ 152,704 $ 193,490

Statutory Value ($ in thousands) $ 11,539 $ 11,539

Total Market Value of Custodial Gold

and Silver Reserves ($ in thousands) $ 302,021,860 $ 329,380,053

Total Statutory Value of Custodial Gold

and Silver Reserves ($ in thousands) $ 10,493,740 $ 10,493,740

7. INVENTORY

The components of inventories at September 30 are summarized below:

(dollars in thousands) 

 

 

 

 

 2014 

 

 2013

Raw Materials $ 350,772 $ 320,092

Work-In-Process 77,018 62,168

Inventory held for current sale 119,988 89,757

Total Inventory $ 547,778 $ 472,017

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, 2014 and 2013, the inventory includes $301.9 

million and $251.8 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.

On September 23, 2013, the Mint began to lease platinum to avoid the effects of fluctuating platinum 

costs as a result of the changes in market prices. The Mint leases platinum for a fee of 0.5 percent and 

takes physical possession of the metal to manufacture platinum bullion coins. Upon sale to the customer, the Mint purchases the platinum from the lessor on the same day for the same market price. In 

FY 2014, the Mint paid $373 thousand in leasing fees. 
42

8. PROPERTY, PLANT, AND EQUIPMENT, NET

Components of property, plant and equipment are as follows:

(dollars in thousands) September 30, 2014 

 Asset Cost Accumulated Depreciation Total Property, Plant

 and Amortization and Equipment, Net

Land 

 

$ 2,529 $ – $ 2,529

Structures, Facilities and

 Leasehold Improvements 215,603 (137,517) 78,086

Computer Equipment 26,527 (24,394) 2,133

ADP Software 15,101 (14,571) 530

Construction-In-Progress 23,020 – 23,020

Machinery and Equipment 295,472 (215,319) 80,153

Total Property, Plant

 and Equipment, Net $ 578,252 $ (391,801) $ 186,451

(dollars in thousands) September 30, 2013 

 Asset Cost Accumulated Depreciation Total Property, Plant

 and Amortization and Equipment, Net

Land $ 2,529 $ – $ 2,529

Structures, Facilities and

 Leasehold Improvements 211,769 (134,074) 77,695

Computer Equipment 26,036 (24,000) 2,036

ADP Software 14,943 (14,466) 477

Construction-In-Progress 14,284 – 14,284

Machinery and Equipment 286,587 (200,299) 86,288

Total Property, Plant

 and Equipment, Net $ 556,148 $ (372,839) $ 183,309

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 2014 and FY 2013 were $25.3 million and $26.5 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.
43

Coin Collections 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quantity of Collections Held September 30,

 2014 2013

Pattern Pieces/Prototypes 1 1

Coin Specimens 1 1

Quality Samples 1 1

Exotic Metal Coin Samples 1 1

Total 4 4

Historical Artifacts Quantity of Collections Held September 30,

 2014 2013

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

10. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

Components of Liabilities Not Covered by Budgetary Resources at September 30 are as follows:

(dollars in thousands) 2014 2013

Custodial Gold Reserves (Deep Storage) 

 

 

 

 94 

$ 10,355,539 $ 10,355,539

Custodial Silver Reserves (Deep Storage) 9,148 9,148

Working Stock Inventory - Gold 117,514 117,514

Working Stock Inventory - Silver 11,539 11,539

Other 94

Total Liabilities Not Covered by Budgetary Resources $ 10,493,834 $ 10,493,834

Total Liabilities Covered by Budgetary Resources 161,951 88,206

Total Liabilities $ 10,655,785 $ 10,582,040

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. The category “Other” represents a refundable security deposit related to a lease.

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 $17,500 for calendar year 2014 (a $5,500 catch-up 

contribution can be given by participants age 50 and older in addition to the $17,500 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). 
44

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 15.1 percent of basic pay for FERS-covered employees were in use for FY 2014.

The CSRS and FERS factors were 32.3 percent and 14.2 percent, respectively, in FY 2013. 

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) 2014 2013

Social Security System $ 7,431 $ 7,325

Civil Service Retirement System 882 994

Federal Employees Retirement System

 (Retirement and Thrift Savings Plan) 13,247 13,342

Total Retirement Plans and Other Post-employment Cost $ 21,560 $ 21,661

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 $5,169 and 

$5,190 per employee enrolled in the Federal Employees Health Benefits Program in FY 2014 and FY 

2013, 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 2014 and FY 2013. 

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) 2014 2013

Health Benefits $ 7,654 $ 7,872

Life Insurance 20 32

Pension Expense 5,049 4,466

Total Imputed Retirement and Postemployment Costs $ 12,723 $ 12,370

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. During FY 2014, the Judgment Fund paid $165 thousand 

on behalf of the Mint for the clean-up of an EPA Superfund site and for a tort claim. The EPA

Superfund payment was part of a multi-year court order, which requires that the Mint and two other 

federal agencies pay for cleaning up the site. Payments are made by the Judgment Fund when the judge 

in the case determines that the site owner has submitted valid bills for clean-up work. Also during FY 

2014, the Mint received unreimbursed services (imputed financing) from another federal agency in the 

amount of $0.4 million. During FY 2013, entries for Judgment Fund payments totaled approximately 

$1.4 million.

12. LEASE COMMITMENTS

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. The Headquarters building lease in Washington, 

D.C. has a term of 20 years with renewal options. Because all of the Mint’s leases can be canceled, 

there are no minimum lease payments due.
45

THE MINT AS LESSOR: The Mint sublets office space at cost to several other federal entities in the 

leased Headquarters building in Washington, D.C. As of September 30, 2014, the Mint sublet in excess 

of 56,000 square feet in the leased building. Tenants include the Internal Revenue Service, Treasury 

Executive Institute, and U.S. Marshals Service. All of the subleases are operating leases 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. The Mint received a security deposit from the tenant of 

$94,500.

Future Projected Receipts: 

 $378,000

 

 

 

 

 

Building Sub-lease

Year 5 (FY 2015)

Year 6 (FY 2016) 404,460

Year 7 (FY 2017) 404,460

Year 8 (FY 2018) 404,460

Year 9 (FY 2019) 404,460

Total Future Operating Lease Receipts $1,995,840

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. In the opinion of

management, the ultimate resolution of these actions will not significantly affect the Mint’s financial 

position or the results of its operations. 

The Chief Counsel of the Mint provided a Legal Representation Letter reflecting no expected 

significant loss resulting from pending legal cases.

14. FUNDS FROM DEDICATED COLLECTIONS (FORMERLY EARMARKED FUNDS) 

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 Statement of Federal 

Financial Accounting Standards (SFFAS) 43 Funds from Dedicated Collections: Amending SFFAS 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:
46

(dollars in thousands) 2014 2013

Numismatic Production and Sales

Cost:

 Intragovernmental:

 Cost of Goods Sold $ 18,124 $ 19,691

 Selling, General and Administrative 18,632 19,451

 Imputed Costs 6,086 6,395

 Total Intragovernmental Costs 42,842 45,537

 Public:

 Cost of Goods Sold 2,115,540 3,480,551

 Selling, General and Administrative 72,964 65,469

 Total Public Cost 2,188,504 3,546,020

Gross Cost 2,231,346 3,591,557

Revenue:

 Intragovernmental:

 Rent Revenues 2,866 3,093

 Other Intragovernmental Revenues 27 45

 Total Intragovernmental Revenues 2,893 3,138

 Public 2,279,057 3,714,285

 Total Earned Revenue 2,281,950 3,717,423

Net Program Cost (Revenue) $ (50,604) $ (125,866)

Numismatic Production and Sales of Circulating Coins

Cost:

 Intragovernmental:

 Selling, General and Administrative $ 264 $ 324

 Total Intragovernmental Costs 264 324

 Public:

 Cost of Goods Sold 7,500 8,934

 Selling, General and Administrative 1,035 1,089

 Total Public Cost 8,535 10,023

Gross Cost 8,799 10,347

Revenue:

 Public 8,799 10,347

 Total Earned Revenue 8,799 10,347

Net Program Cost (Revenue) $ – $ –

Circulating Production and Sales

Cost:

 Intragovernmental:

 Cost of Goods Sold $ 3,415 $ 2,028

 Selling, General and Administrative 12,279 13,444

 Imputed Costs 7,219 7,363

 Total Intragovernmental Costs 22,913 22,835

 Public:

 Cost of Goods Sold 398,665 358,532

 Selling, General and Administrative 46,235 43,494

 Other Costs and Expenses (Mutilated and Uncurrent) 26,118 15,747

 Total Public Cost 471,018 417,773

 Gross Cost 493,931 440,608

Revenue:

 Other Intragovernmental Revenues 31 20

 Public 493,900 440,588

 Total Earned Revenue 493,931 440,608

Net Program Cost (Revenue) $ – $ –

Net Cost (Revenue) Before Protection of Assets $ (50,604) $ (125,866)

 2014 2013

 2014 2013
47

 2014 2013

Protection of Assets

Cost:

 Intragovernmental:

 Protection Cost $ 7,965 $ 7,617

 Public:

 Protection Cost 31,597 35,546

 Gross Cost $ 39,562 $ 43,163

Revenue:

 Intergovernmental Revenue – $ 27

 Public – –

 Total Earned Revenue – $ 27

Net Cost of Protection of Assets $ 39,562 $ 43,136

Net Cost (Revenue) from Operations $ (11,042) $ (82,730)

16. EARNED REVENUE AND OTHER FINANCING SOURCE (SEIGNIORAGE)

The Statement of Net Cost reflects the earned revenue and corresponding gross costs for Circulating

Production and Sales and for Numismatic Production and Sales of Circulating Coins. Circulating

Production and Sales represents coin sales to the FRB, and Numismatic Production and Sales of

Circulating Coins represents sales of circulating coins to the public (i.e., numismatic customers).

SFFAS Number 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling 

Budgetary and Financial Accounting, limits the amount of net program revenue from production of 

circulating coins to the cost of metal, manufacturing and transportation. OMB Circular A-136 defines 

the treatment of other financing sources on the Statement of Changes in Net Position, particularly as 

it relates to seigniorage. Therefore, on the Statement of Net Cost, earned revenue is recognized only 

to the extent of the gross cost of production. The difference between those costs and the face value of 

the coin is an “Other Financing Source” referred to as seigniorage. Any revenue over face value for 

circulating coins sold as numismatic items is considered earned revenue and included in the category 

Numismatic Production and Sales on the Statement of Net Cost.

The following chart reflects the two components of the receipts from the sale of circulating coin – the 

earned revenue from the Statement of Net Costs and Seigniorage from the Statement of Changes in Net 

position for the year ended September 30:

(dollars in thousands) 2014 2013

Revenue-FRB $ 493,931 $ 440,608

Seigniorage-FRB 289,103 137,415

Total Circulating Coins $ 783,034 $ 578,023

Revenue-with the public $ 8,799 $ 10,347

Seigniorage-with the public 28,098 29,276

Total Numismatic sales of Circulating Coins

 

$ 36,897 $ 39,623

Total Seigniorage $ 317,201 $ 166,691

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 A apportions budgetary resources by fiscal quarters. Category B apportions budgetary 

resources by program, project, activities, objects or a combination of these categories. Category AB 

apportions budgetary resources by a combination of fiscal quarters and projects. The Mint had category 

B and category AB apportionments in FY 2014.
48

The following chart reflects the amount of reimbursable obligations incurred against amounts 

apportioned under categories B and AB. 

(dollars in thousands) 2014 2013

Category B

 Total Operating Expenses $2,787,590 $4,130,179

 Numismatic Capital 10,974 10,815

 Circulating and Protection Capital 18,085 17,609

Category AB

 Order Management System 44,984 -

 

 

Total Apportionment

Categories of Obligations Incurred $2,861,633 $4,158,603

18. EXPLANATION OF DIFFERENCES BETWEEN THE STATEMENT OF BUDGETARY 

RESOURSES 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 2014 is expected 

to be published in February 2015 and made available through OMB. Therefore, the analysis presented 

here is for the prior year (FY 2013) “actual” figures published in the President’s budget in February

2014. The following chart displays the comparison of the FY 2013 SBR and the actual FY 2013 

balances included in the FY 2015 President’s Budget. The differences listed on the Total Budgetary 

Resources line and on the Unobligated Balances-available line are due to rounding. 

(rounded to millions) September 30, 2013

 Statement of Budgetary President’s

United States Mint Public Enterprise Fund Resources Budget

 

Total Budgetary Resources $ 4,655 

 

 

 

 

$ 4,656

Status of Budgetary Resources:

 Obligations Incurred $ 4,159 $ 4,159

 Unobligated Balances-available 496 497

Total Status of Budgetary Resources $ 4,655 $ 4,656

Net Outlays $ 209 $ 209

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, 2014 and 2013, the Mint transferred 

excess receipts to the Treasury General Fund of $272 million and $392 million, respectively.

20. HEDGING PROGRAM

At September 30, 2014 and 2013, the market value of the silver sold to the trading partner and not 

yet sold by the Mint and, therefore, not repurchased from the trading partner, was $301.9 million and 

$251.8 million, respectively. At September 30, 2014, the trading partner owed the Mint $4.4 million in 

unpaid realized gains, while at September 30, 2013, neither the Mint nor the trading partner owed the 

other for unpaid realized gains or losses. In FY 2014, the Mint recorded an unrealized loss of $5.7

million compared to an unrealized loss of $4.0 million in FY 2013.
49

21. RECONCILIATION OF NET COST OF OPERATIONS (PROPRIETARY) TO BUDGET

(dollars in thousands) For The Years Ended September 30,

 2014 2013

Resources Used to Finance Activities:

 Budgetary Resources Obligated

 Obligations Incurred $ 2,861,633 $ 4,158,603

 Less: Spending Authority from

 Offsetting Collections and Recoveries 2,869,784 4,027,338

 Net Obligations (8,151) 131,265

 Other Resources

 Transfers to the Treasury General Fund Budget (22,000) (41,999)

 Transfers to the Treasury General Fund Non-Budget 

 

 

 

 

(250,000) (350,000)

 Imputed Financing from Costs Absorbed by Others 13,302 13,757

 Other Financing Sources (Seigniorage) 317,201 166,691

 Transfers in without reimbursement – 273

 Net Other Resources Used to Finance Activities 58,503 (211,278)

Total Resources Used to Finance Activities 50,352 (80,013)

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 10,485 

 

 

 

 

 (539,024)

 (76,252)

 Resources that fund Expenses Recognized in Prior Periods – (10)

 Resources that Finance the Acquisition

 of Assets or Liquidation of Liabilities 596,218 577,721

 Other 

 584,703 

 (534,351) 

 (22,000) (42,448)

 Total Resources Used to Finance Items

 Not Part of the Net Cost of Operations 459,011

Total Resources Used to Finance the Net Cost of Operations

Components Requiring or Generating

Resources in Future Periods

 Increase in Exchange Revenue Receivable from the Public (1,385) –

Total Components of Net Cost of Operations that will

Require or Generate Resources in Future Periods (1,385) –

Components not Requiring or Generating Resources

 in the Current Period

 Depreciation and Amortization 25,288 

 

 

 

 

 

 

 

 

 

 

 

 26,499

 Revaluation of Assets 5,838 7,767

 Other 493,568 422,028

Total Components of Net Revenue from Operations

 that will not require or Generate Resources 524,694 456,294

Total Components of Net Revenue from Operations

 that will not require or Generate Resources

 in the Current Period 523,309 456,294

Net Cost (Revenue) from Operations $ (11,042) $ (82,730)

22. UNDELIVERED ORDERS AT THE END OF THE PERIOD

Budgetary resources obligated for undelivered orders as of September 30, 2014 and 2013 were 

$132,107 and $121,422 respectively.
50

What Money is Available to Spend?

Total Resources $3,368,372 $4,654,894

Less Amount Not Agreed to be Spent (506,739) (496,291)

Total Amounts Agreed to be Spent $2,861,633 $4,158,603

How was the Money Spent?

Personnel Compensation 139,544 150,393

Personnel Benefits 44,347 47,104

Benefits for Former Personnel (260) 1,038

Travel and transportation of persons 1,603 1,355

Transportion of things 29,504 32,291

Rent, Communications, and utilities 27,393 24,305

Printing and reproduction 869 1,158

Other contractual services 66,654 (15,703)

Supplies and materials 2,519,979 3,884,540

Equipment 26,634 19,899

Land and structures 5,356 10,240

Insurance claims and indemnities 2 1,981

Interest 8 2

 

Total Amounts Agreed to be Spent $2,861,633 $4,158,603

Who did the Money go to?

Federal 

 

 67,032 61,485

Non-Federal 2,794,601 4,097,118

Total Amounts Agreed to be Spent $2,861,633 $4,158,603

For The Years Ended September 30,

2014 2013

(dollars in thousands)

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013

INTRODUCTION

This section provides the Required Supplemental Information as prescribed by the Office of

Management and Budget (OMB) Circular A-136, “Financial Reporting Requirements” and Statement 

of Federal Financial Accounting Standards (SFFAS) #29 Heritage Assets and Stewardship Land.

HERITAGE ASSETS

The 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, 

and there is no deferred maintenance on the Denver, West Point, San Francisco, and Fort Knox buildings.

OTHER INFORMATION

DEPARTMENT OF THE TREASURY UNITED STATES MINT SCHEDULE OF SPENDING
51

Independent Auditors’ Report on Internal Control Over Financial Reporting

Inspector General

United States Department of the Treasury

Deputy Director

United States Mint:

We have audited, in accordance with auditing standards generally accepted in the United States of America; the

standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller

General of the United States; and Office of Management and Budget (OMB) Bulletin No. 14-02, Audit Requirements 

for Federal Financial Statements, the financial statements of the United States Mint, which comprise the balance 

sheets as of September 30, 2014 and 2013, 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 11, 2014. 

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements as of and for the year ended September 30, 2014, 

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.
52

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.

December 11, 2014
53

Independent Auditors’ Report on Compliance and Other Matters

Inspector General

United States Department of the Treasury

Deputy Director

United States Mint:

We have audited, in accordance with auditing standards generally accepted in the United States of America; the

standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller

General of the United States; and Office of Management and Budget (OMB) Bulletin No. 14-02, Audit Requirements 

for Federal Financial Statements, the financial statements of the United States Mint, which comprise the balance 

sheets as of September 30, 2014 and 2013, and the related statements of net cost, and changes in net positin, and 

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

have issued our report thereon dated December 11, 2014.

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, and certain provisions of other laws and regulations specified in OMB Bulletin No. 14-02.

However, providing an opinion on compliance with those provisions was not an objective of our audit, and

accordingly, we do not express such an opinion. The results of our tests of compliance disclosed no instances

of noncompliance or other matters that are required to be reported herein under Government Auditing Standards

or OMB Bulletin No. 14-02.

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.

December 11, 2014
APPENDIX I: FY 2014 COIN AND MEDAL PRODUCTS

NATIVE AMERICAN CODE TALKER CONGRESSIONAL GOLD MEDALS 

Medals Awarded: November 20, 2013 and May 18, 2014

Description: Under the Code Talkers Recognition Act of 2008, the United States Mint awarded 26 of 33 Congressional 

Medals in honor of Native Americans who served as code talkers in the U.S. Armed Services during World War I and 

World War II. Gold medals were struck for each Native American tribe with a member who served as a code talker.

Silver duplicate medals were presented to the code talkers or their relatives or representatives. The remaining seven 

tribes will receive their medals directly from the Mint upon completion of the design development and approval process.

54
55
DOCTOR MARTIN LUTHER KING, JR AND CORETTA SCOTT 

KING CONGRESSIONAL GOLD MEDAL

Medal Awarded: June 24, 2014

Description: Congress awarded this gold medal posthumously to Reverend 

Dr. Martin Luther King, Jr. and Coretta Scott King in recognition of their 

many contributions to the civil rights movement. Dr. King’s doctrine of 

nonviolent civil disobedience to combat segregation, discrimination, and

racial injustice was instrumental in the passage of the Civil Rights Act of 

1964 and the Voting Rights Act of 1965. When he was assassinated in 1968, 

Mrs. King was the driving force behind the Martin Luther King Jr. Center 

for Nonviolent Social Change, which has trained thousands of people in

Dr. King’s philosophy and methods.

SHIMON PERES 

CONGRESSIONAL GOLD MEDAL

Medal Awarded: June 26, 2014

Description: This gold medal honors Shimon Peres, former President of 

Israel, who has served his government for more than 70 years. The only 

surviving member of the founding generation of Israel, he has served as 

the head of the Israeli Navy, Minister of Defense, Foreign Minister, Prime 

Minister and President. This gold medal is the first to be awarded to a sitting 

president of Israel, and was presented to former President Peres in June.

The law authorizes the Secretary of the Treasury to strike and sell bronze 

duplicates for sale to the public with proceeds covering the cost of the medal.

RAOUL WALLENBERG 

CONGRESSIONAL GOLD MEDAL

Medal Awarded: July 9, 2014

Description: This gold medal honors Raoul Wallenberg for his actions during 

the Holocaust. Born in Sweden and a graduate of the University of Michigan, 

he pursued a career as a businessman in Sweden and later became a Swedish

diplomat. He worked with the War Refugee Board and rented property in 

Budapest, declaring it extraterritorial and the property of Sweden, then issued 

protective passes to people on the way to concentration camps. Along with 

about 350 resistance workers, he housed more than 100,000 Hungarian Jews. 

In 1945, he was detained by the Soviet authorities and disappeared. 

56
57

FALLEN HEROS CONGRESSIONAL GOLD MEDAL

Medal Awarded: September 10, 2014

Description: This medal honors the people who died in the terrorist attacks 

on the United States on Sept. 11, 2001. The bill authorizes three gold

medals, representing the three locations of the attacks. The medals will be 

put on public display, and duplicate bronze medals will be offered for sale 

to the public.

The New York medal features an abstract representation of two World Trade 

Center towers. The numbers 93, 77, 175, and 11 are for the four flight

numbers involved and are positioned as if on a clock, representing the times 

of the crashes. The reverse shows a single rose; at the memorial, a white 

rose is placed through the name of each victim on his or her birthday. 

The Pentagon medal shows the rebuilt façade of the Pentagon, where flight 

77 crashed. The angle of the view is the angle of the flight path. On the 

reverse are 184 stars for each of the victims and a bald eagle. 

The Flight 93 medal features the hemlock groves behind the boulder at the 

memorial in Pennsylvania, where the plane crashed. The reverse shows 40 

stars on a border, one for each victim, as well as a bald eagle. 

AMERICA THE BEAUTIFUL QUARTERS® PROGRAM 

MOUNT RUSHMORE NATIONAL MEMORIAL—SOUTH DAKOTA

Coin Released: November 4, 2013

Description: It took nearly 400 workers 14 years to complete carving 

Mount Rushmore, which commemorates the founding, expansion,

preservation, and unification of the United States with colossal statues

of Presidents Washington, Jefferson, Lincoln, and Theodore Roosevelt. 

Located in the scenic Black Hills of South Dakota, the memorial draws 3 

million visitors a year. The reverse design of the quarter was inspired by 

photos of men adding the final details to Jefferson’s face. 

GREAT SMOKY MOUNTAINS NATIONAL PARK—TENNESSEE

Coin Released: January 27, 2014

Description: Great Smoky Mountains National Park is world-renowned

for its diverse plant and animal life, the beauty of its ancient mountains, 

and its remnants of southern Appalachian mountain culture. It is America’s 

most-visited national park, with 9 million visitors a year. It was first

established on May 22, 1926. The reverse design depicts a historic log

cabin found within Great Smoky Mountains National Park.
58

SHENANDOAH NATIONAL PARK—VIRGINIA 

Coin Released: March 31, 2014

Description: Just 75 miles from Washington, D.C., Shenandoah National 

Park features 200,000 acres of protected lands with cascading waterfalls, 

spectacular vistas, and quiet wooded hollows. Skyline Drive, which goes 

through the park, is one of the most scenic in America. Formally established 

in 1935, President Franklin D. Roosevelt dedicated the park in 1936. With 

more than 500 miles of hiking trails, the park is popular with birdwatchers 

and wildlife observers. The reverse design depicts a day hiker taking in the 

view from Little Stony Man summit.

ARCHES NATIONAL PARK—UTAH 

Coin Released: June 9, 2014

Description: Established as a national monument on April 12, 1929, Arches 

National Park is a red rock wonderland of 119 square miles of more than 

2,000 natural stone arches, soaring pinnacles, massive fins, and giant

balanced rocks. Hot summers, cold winters, and very little rainfall make

for an unforgiving, but beautiful, environment. The reverse design of the 

quarter depicts Delicate Arch, a 65-foot freestanding natural arch, viewed 

with the La Sal Mountains in the background. 

GREAT SAND DUNES NATIONAL PARK

AND PRESERVE—COLORADO 

Coin Released: August 25, 2014

Description: About 300,000 people a year visit the tallest dunes in North 

America at the Great Sand Dunes National Park and Preserve, formed from 

a combination of wind, sand from the valley floor, and sand recycled from 

creeks. The main dune field covers approximately 30 square miles, and

the tallest dune is 750 feet. Established on March 17, 1932, the quarter

honoring the park features a father and son playing in the sand next to

the creek bed with mountains and sand dunes in the background. 

PRESIDENTIAL $1 COIN PROGRAM 

WOODROW WILSON PRESIDENTIAL $1 COIN

28TH PRESIDENT, 1913-1921

Coin Released: October 17, 2013

Description: During Woodrow Wilson’s administration, Congress passed 

legislation that formed future economic and social policy, including the 

Federal Reserve Act, which provided the country with a more elastic money 

supply. He led the United States through World War I and helped create the 

League of Nations, for which he won a Nobel Peace Prize. In 1919, Wilson 

suffered a series of debilitating strokes which left him partially paralyzed. 

He died in 1924.
59

WARREN G. HARDING PRESIDENTIAL $1 COIN 

29th PRESIDENT, 1921-1923

Coin Released: February 6, 2014

Description: Warren Harding served in Ohio as state senator, lieutenant 

governor and U.S. senator before becoming president. Though his

administration was plagued by scandal (both personal and political), he

was a popular president and supported creation of the Bureau of the Budget, 

which required the president to submit a budget to Congress annually. Just 

two years into his term, he died of a heart attack, and was replaced as

president by Vice President Calvin Coolidge. 

CALVIN COOLIDGE PRESIDENTIAL $1 COIN 

30th PRESIDENT, 1923-1929

Coin Released: April 10, 2014

Description: Calvin Coolidge built an illustrious political career in New 

England before becoming president after Warren G. Harding died in office 

in 1923. A taciturn man, Coolidge’s administration was a polar opposite

of the rambunctious Harding administration, and he promoted fiscal

conservatism and reduced government intervention. Coolidge chose not

to seek re-election in 1928 and retired to Massachusetts, dying in 1933.

HERBERT HOOVER PRESIDENTIAL $1 COIN 

31st PRESIDENT, 1929-1933

Coin Released: June 19, 2014

Description: Herbert Hoover worked his way through college then worked 

his way around the world as a geologist for various mining companies, 

amassing a fortune by the time he was 40. When World War I began, he 

held government positions as a public administrator, food relief coordinator

and secretary of commerce. During his presidency, 5 million acres were

set aside for national parks and forests. His public works program and 

strong support for labor law during the Great Depression set the stage for 

Roosevelt’s New Deal. Hoover was defeated in 1932, but returned to public 

service after World War II to organize humanitarian efforts to Europe. 

Presidents Truman and Eisenhower appointed Hoover to commissions to 

increase governmental efficiency and reduce waste. When he died in 1964, 

he had the longest retirement of any former president.

FRANKLIN D. ROOSEVELT PRESIDENTIAL $1 COIN 

32nd PRESIDENT, 1933-1945

Coin Released: August 28, 2014

Description: After securing the Democratic nomination for president in 

1932, Franklin Delano Roosevelt campaigned promising a New Deal to

address the dire economic situation. The Fair Labor Standards Act, the

Social Security Act, and the National Labor Relations Act supported workers

and laid the foundation for future domestic policy. In addition to policies 

intended to strengthen the economy, he gave Executive Order 6102,

forbidding hoarding gold coin, gold bullion, and gold certificates, with
60

exceptions for gold coin collectors or jewelers and dentists – people who 

used gold in their profession. Though he had contracted polio in 1921

resulting in partial paralysis, Roosevelt was considered one of our most

consequential chief executives, presiding over the Great Depression and 

World War II. He died in 1945, just a few months after beginning his

fourth term as president. 

FIRST SPOUSE GOLD BULLION COIN AND BRONZE

MEDAL PROGRAM 

IDA MCKINLEY FIRST SPOUSE GOLD COIN AND BRONZE 

MEDAL—FIRST LADY, 1897-1901

Coin and Medal Released: November 14, 2013

Description: Well-educated and independent, Ida McKinley preferred an 

active life and was interested in art, architecture, current events, and the 

plight of working women. She was skilled in managing money and

accounting, and her father hired her to work at his bank. After she married, 

she had two daughters, both of whom died in childhood, and Ms. McKinley’s

own health begin to fail. As first lady, she spent much of her time crocheting

items that were later auctioned off for large sums for local and national 

charities she supported. When President McKinley was assassinated, she 

returned to Canton, Ohio, dying nearly six years later. 

EDITH ROOSEVELT FIRST SPOUSE GOLD COIN AND BRONZE 

MEDAL—FIRST LADY, 1901-1909

Coin and Medal Released: November 21, 2013

Description: When Edith Roosevelt married in 1886, her husband was a 

widower with an infant daughter; they had five children together. As first 

lady, she approved and supported renovation of what is now known as the 

West Wing of the White House, including enlarging and modernizing the 

public spaces. She also established the tradition of hanging portraits of the 

first ladies on the ground floor of the White House. After her husband died, 

she traveled and wrote and edited articles for publication.

HELEN TAFT FIRST SPOUSE GOLD COIN AND BRONZE

MEDAL—FIRST LADY, 1909-1913

Coin and Medal Released: December 2, 2013

Description: Helen Taft was a schoolteacher before she married, and was 

interested in current events and politics. Before her husband was elected, 

she was a founding member of the Cincinnati orchestra, auditioning and 

contracting with artists. She was an active first lady who had a bandstand 

built at the Tidal Basin so the Marine Band could play there on Sundays. 

She is best known for the Japanese cherry trees growing around the Tidal 

Basin in Washington, D.C., which were a gift from the mayor of Tokyo to 

the American people. She planted the first two trees herself in March 1912.
61

ELLEN WILSON FIRST SPOUSE GOLD COIN AND BRONZE 

MEDAL—FIRST LADY, 1913-1921

Coin and Medal Released: December 9, 2013

Description: Ellen Wilson was an accomplished artist who sketched and 

painted landscapes and portraits, and her artwork was publically displayed 

while she served as first lady. She supported the need for child labor laws 

and education projects in Appalachia. She is best known for initiating and 

overseeing the creation of the White House Rose Garden. She died in 1914 

of Bright’s disease during President Wilson’s second year of office.

EDITH WILSON FIRST SPOUSE GOLD COIN AND BRONZE 

MEDAL—FIRST LADY, 1913-1921

Coin and Medal Released: December 16, 2013

Description: Edith Wilson’s first husband died in 1908, and she married 

President Wilson in December of 1915. She is often described as America’s 

first woman president because of the important role she played after her 

husband’s massive stroke in 1919. She chose which visitors he saw and 

what papers he read, though she insisted she never made a single decision

on public affairs. After they left the White House in 1921, she lived in 

Washington, D.C., 40 more years.

FLORENCE HARDING FIRST SPOUSE GOLD COIN

AND BRONZE MEDAL—FIRST LADY, 1921-1923 

Coin and Medal Released: July 10, 2014

Description: The Hardings owned The Marion Star, and she was the

business manager. She understood how the media worked, and she and 

Harding used the press to their advantage to help Harding win the presidency.

The reverse (tails) of this medal depicts a torch, pen, camera, ballots and a 

ballot box, representing Mrs. Harding’s work with veterans, her husband’s 

campaign, and voting. Mrs. Harding advocated for women’s rights, prison 

reform, the ASPCA, and war veterans. She hosted garden parties for

veterans at the White House, answered their letters, and worked to resolve 

their concerns. 

GRACE COOLIDGE FIRST SPOUSE GOLD COIN AND BRONZE 

MEDAL—FIRST LADY, 1923-1929 

Coin and Medal Released: July 17, 2014

Description: Before she married, Grace Coolidge learned how to lip-read 

so she could teach at the Clarke School for the Deaf in Massachusetts. 

Throughout the rest of her life, she promoted education for the deaf and 

drew attention to the needs of the disabled. A popular first lady, she was 

cheerful and outgoing, nearly the opposite of her taciturn husband, and was 

interested in current events, sports, and animals. She used her celebrity to 

promote many groups, particularly the Red Cross, and supported wounded 

veterans and humanitarian and disaster relief. 
62

LOU HOOVER FIRST SPOUSE GOLD COIN AND BRONZE

MEDAL—FIRST LADY, 1929-1933

Coin and Medal Released: August 14, 2014

Description: The Hoovers met in college, when they were both geology 

students at Stanford. The day after their wedding, the Hoovers moved to 

Shanghai, where Mrs. Hoover became fluent in Chinese, the only first lady 

to have done so. After World War I, she was very active in organizing the 

Girl Scouts. As first lady, she gave regular, nationwide radio broadcasts 

about equality, infant mortality, and relief work. She personally helped

hundreds of people who appealed to her during the Depression, using her 

own funds and asking wealthy friends and charitable organizations to help. 

ELEANOR ROOSEVELT FIRST SPOUSE GOLD COIN AND 

BRONZE MEDAL—FIRST LADY, 1933-1945 

Coin and Medal Released: September 4, 2014

Description: Eleanor Roosevelt began her career in public service and 

social reform when she was 18, working in settlement houses. After her 

marriage, she continued advocating for women and children through public 

speaking, radio addresses, writing for national publications, and serving

on the boards of a wide variety of social welfare groups, as well as teaching 

at the Todhunter School for Girls, which she co-owned. As first lady, she 

supported African American rights, increased roles for African Americans 

and women in the war, and the United Nations. In retirement, she continued 

to speak – in person, on radio, and on television – and write about social 

issues and civil rights.

NATIVE AMERICAN $1 COIN

2014 NATIVE AMERICAN $1 COIN 

Coins Released: March 20, 2014

Description: The 2014 Native American $1 Coin commemorates the native 

hospitality that ensured the success of the Lewis and Clark Expedition. Its 

reverse design depicts a Native American man offering a pipe while his 

wife offers provisions of fish, corn, roots, and gourds. In the background is 

a stylized image of the face of William Clark’s compass highlighting “NW,” 

the area in which the expedition occurred.
63

COMMEMORATIVES

2014 CIVIL RIGHTS ACT OF 1964 SILVER DOLLAR

Coins Released: January 2, 2014

Mintage Limit: 350,000

Description: The Civil Rights Act of 1964 greatly expanded civil rights 

protections, outlawed racial segregation in public places, and encouraged 

desegregation in public schools. Authorized by Public Law 111-451, this 

silver dollar commemorates the 50th Anniversary of the Civil Rights Act 

of 1964. The obverse features three people holding hands at a civil rights 

march. The reverse features three flames symbolizing freedom of education, 

freedom to vote, and freedom to control one’s own destiny. A $10 surcharge 

is authorized to be paid to the United Negro College Fund.

2014 NATIONAL BASEBALL HALL OF FAME

COMMEMORATIVE COIN PROGRAM

Coins Released: March 27, 2014

Mintage Limit: 100,000 $5 gold, 400,000 $1 silver,750,000 half-dollar clad 

Description: Authorized by Public Law 112-152, these gold, silver, and 

clad dollar coins are the first curved coins produced by the United States 

Mint and commemorate the 75th anniversary of the establishment of the 

National Baseball Hall of Fame. The obverse of each coin depicts a baseball 

glove and the reverse depicts a baseball. A $35 per coin surcharge is

authorized to be paid to the National Baseball Hall of Fame for each gold 

coin sold, $10 for each silver coin, and $5 for each clad coin. 
64
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