2013 ANNUAL REPORT

UNITED STATES MINT
COVER ART: AMERICAN EAGLE BULLION COINS, CHOICE OF INVESTORS AROUND 

THE WORLD

To highlight an exceptional year in gold and silver bullion coin sales, American Eagle 

Bullion coins are featured on our 2013 Annual Report front cover: on the left, the obverse 

and reverse of the American Eagle Gold Bullion Coin and on the right the obverse and 

reverse of the American Eagle Silver Bullion Coin. 

The United States Mint is the largest gold and silver bullion coin producer in the world. 

Global investment in American Eagle Gold Bullion Coin sales reached more than 1.2 million 

ounces in 2013. 

The Liberty design that graces the American Eagle Gold Bullion Coin was created by 

Augustus Saint-Gaudens and first appeared on the United States’ $20, or double-eagle 

gold piece, in 1907. The American Eagle Silver Bullion Coins feature sculptor Adolph A. 

Weinman’s magnificent Walking Liberty design, originally prepared and executed for 

the Nation’s first circulating half-dollar coin in 1916.
1

DEPUTY DIRECTOR’S LETTER

I am pleased to once again present the United States Mint’s Annual 

Report. Fiscal Year (FY) 2013 was another excellent year for the 

United States Mint as the men and women at our six facilities 

continued to deliver truly outstanding results. I could not be more 

proud of this team’s accomplishments.

We have chosen to highlight our precious metal bullion coin 

program in this report as we set a new record for bullion coin 

volume in FY 2013. Our American Eagle Gold and Silver Bullion 

Coins remain the coin of choice for investors around the world. 

We mint them at our West Point and San Francisco facilities. I hope 

you enjoy learning more about these beautiful and popular coins as 

you review our annual report.

The United States Mint, in accordance with federal law, has 

three product lines in two programs: a circulating coin program 

and a fiscally separate numismatic program that includes collectible

coin and medal products and our precious metal bullion coins. 

Revenue and net income increased across all three product lines 

in FY 2013. Our results were outstanding in two of the three 

product lines — circulating coinage for commerce and investment-grade bullion coin programs. We drove solid 

performance in our numismatic and medal product segment with several well-received new products and improved 

customer service.

Clearly, as the largest mint in the world, producing 

circulating coins is our bread and butter. Yet there 

is so much more that our team delivers every day 

in service to the American people. We are focused 

on further improving the productivity of our 

operations, developing new products while 

enhancing the customer experience, embracing 

new technologies, and minimizing our 

environmental footprint. Along the way, we respect and honor the values and traditions of one of the Nation’s most 

treasured institutions — the United States Mint. 

Richard A. Peterson

United States Mint

Deputy Director

OUR AMERICAN EAGLE GOLD 

AND SILVER BULLION COINS REMAIN 

THE COIN OF CHOICE FOR 

INVESTORS AROUND THE WORLD.

CIRCULATING COINS

Circulating coin shipments to the Federal Reserve Banks increased 17.6 percent in FY 2013 to 10.7 billion from 

9.1 billion in the prior year. Our focus on manufacturing productivity and working capital turnover enabled the 

Mint to transfer $350 million of seigniorage to the Treasury General Fund — our first such transfer in three years.

Collectively, for the past six years, our seigniorage was dominated by the portion generated by the $1 coin. There 

was no such $1 coin seigniorage in FY 2013 as circulating $1 coin production was suspended early in FY 2012. 

Improved demand for the quarter-dollar coin and the impressive cost-reduction efforts of our teams in Denver and 

Philadelphia led the way.
2

BULLION

The United States Mint is the world’s largest producer of gold and silver bullion coins, and investors around the 

globe drove record unit sales in FY 2013. Gold ounce sales were up over 50 percent from the prior year to over 1.2 

million ounces. Silver ounce sales were up over 30 percent from the prior year to nearly 45 million ounces. We are 

proud of our role as a bellwether in the global bullion coin market and are positioned for additional growth in 2014. 

We listened to our bullion coin customers and plan to resume sales of our one-ounce platinum bullion coin in 2014. 

Our record year in FY 2013 reflects a true cross-functional team effort that includes three of our facilities (West 

Point, San Francisco, and Philadelphia), our bullion coin sales team, our procurement team that sources the raw 

materials, our internal controls team, and our Mint Police officers. I cannot emphasize enough my appreciation for 

their excellent performance.

NUMISMATIC COINS AND MEDALS

Our numismatic program had a good year in FY 2013 with sales of $512 million, up 6 percent from last year. Net 

income of numismatic coins and medals was up 30 percent, further demonstrating our focus on cost reductions and 

productivity. Customers responded very well to our new product introductions in FY 2013, including our American 

Eagle West Point Two-Coin Silver Set and the American Buffalo One Ounce Gold Reverse Proof Coin celebrating 

the 100th anniversary of the iconic Buffalo Nickel design by James Earle Frasier. New products on tap for FY 2014 

include our Theodore Roosevelt special set and some new offerings recognizing the 50th anniversary of the 

Kennedy half-dollar coin, in addition to the Civil Rights Act of 1964 and National Baseball Hall of Fame 

Commemorative Coin Programs. 

CUSTOMER FOCUS 

With over $300 million in numismatic internet sales 

annually, the United States Mint is one of the top 100 

internet retailers by volume in the United States. But our 

back office web engine is antiquated and not scalable. We 

made good progress in 2013 to upgrade this system and we 

look forward to better serving our customers with a state-ofthe-art online retailing platform to be launched in late 2014. 

Our team rededicated itself to customer care, and we drove 

solid improvements in customer satisfaction in FY 2013 with our favorability scores improving to 92.6 percent from 

90.0 percent in the prior year, as measured by an independent third-party survey. 

To reach new generations of customers and attract new collectors, we established a social media presence in 2009. 

Albeit from a small base, we are pleased with our FY 2013 social media growth with Facebook fans growing 

34 percent and Twitter followers over 70 percent. 

RESEARCH AND DEVELOPMENT 

Our research and development (R&D) is focused on lowering the cost to produce circulating coins. In FY 2013, 

we began a series of comprehensive technical tests to evaluate several alternative metallic compositions that showed 

promise during our earlier R&D efforts. Additionally, we continue to evaluate possible manufacturing process 

changes to further reduce our own manufacturing costs. Together, these efforts will be detailed in our next R&D 

report to Congress in 2014.

NET INCOME OF NUMISMATIC 

COINS AND MEDALS WAS UP 

30 PERCENT, FURTHER 

DEMONSTRATING OUR FOCUS 

ON COST REDUCTIONS 

AND PRODUCTIVITY.
3

SUSTAINABILITY 

At its core, the United States Mint is a manufacturing 

operation with over 1,700 employees and six different 

sites. We are conscious of our effect on the environment

and work hard to incorporate best practices from around

the world to reduce our environmental footprint and make 

our operations more sustainable. Since 2009, we have 

reduced net emissions by 33,363 metric tons of carbon 

dioxide equivalent (MT CO2e). This is equivalent to 

annual greenhouse gas emissions of 7,008 passenger 

vehicles, the CO2 emissions from the annual energy use 

of 1,680 homes, or the carbon captured and stored by 27,570 acres of U.S. forests in one year. It should be noted that 

we have achieved these outstanding environmental results, all while doubling our production output. 

INNOVATION AND TECHNOLOGY 

The United States Mint’s investment in technology over the last ten years paid off handsomely again in FY 2013. 

Consider the Code Talkers Recognition Congressional Medal program. At present, this single program requires 

66 new medal designs and in 2013, we completed production of more than 50 of these designs — approximately 

the same number of designs that we produce in one year for all our other coin and medal programs combined. 

We simply could not have completed the design and engraving work needed for this important program with the 

vintage equipment that was still in use at the United States Mint just 10 years ago. The computer numerical control 

machines, laser frosting equipment, physical vapor deposition chambers, and clean rooms enable our decreasing 

employee base to deliver more coins and medals with lower costs. 

Additionally, the laser frosting enhancements achieved in FY 2013 have created a new degree of artistic freedom 

for our artists and designers. Through a process developed in house, we can create different textures on different 

areas of the design to create a stunning visual effect. We incorporated this technique in two of our products this year: 

the American Eagle West Point Two-Coin Silver Set and the 5-Star Generals Commemorative Coin Program. 

This technique adds additional luster to these already beautiful coins. 

YOUR UNITED STATES MINT

This year marks my fifth year at the United States Mint and my third as its senior leader. Each and every day, I 

see the dedication and professionalism of 1,700 men and women as they mint and issue our coins on behalf of the 

American people. We had a great FY 2013 and are ready for the challenges and opportunities ahead. We offer public 

tours at our Denver and Philadelphia facilities, and I encourage you to visit them. We have a great website that 

highlights our history, which really is the history of our Nation. We have a broad array of numismatic products that 

appeal to the full spectrum of coin enthusiasts. We are an organization that is firing on all cylinders, and we hope 

you will visit us in person or online at www.USMINT.gov.

Sincerely,

Richard A. Peterson, Deputy Director

WITH OVER $300 MILLION 

IN NUMISMATIC INTERNET SALES 

ANNUALLY, THE UNITED STATES 

MINT IS ONE OF THE TOP 

100 INTERNET RETAILERS 

BY VOLUME IN THE UNITED STATES. 
4

Front row, left to right: Ellen McCullom, West Point Plant Manager; Daniel P. Shaver, Chief Counsel; 

Beverly Ortega Babers, Chief Administrative Officer; Annie Brown, Associate Director, Workforce Solutions; 

Tom Jurkowsky, Director Public Affairs; DeAnna Wynn, Acting Chief Information Officer. Second row, left to 

right: J. Marc Landry, Acting Associate Director, Sales and Marketing and Philadelphia Plant Manager; David 

Motl, Chief Financial Officer; Dennis O’Connor, Chief of Protection; Richard Peterson, Deputy Director;

Eric Anderson, Executive Secretary; David Croft, Acting Associate Director, Manufacturing and Denver 

Plant Manager; Jon Cameron, Director, Office of Coin Studies. Not pictured: Larry Eckerman, San Francisco 

Plant Manager; B.B. Craig, Executive Lead, Long Range Planning; April Stafford, Manager, Stakeholder 

Relations; William Norton, Director, Legislative and Intergovernmental Affairs 

ORGANIZATIONAL PROFILE

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 1,700 employees across the United States. Each facility

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

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

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

bullion coins, is primarily performed 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.
5

TABLE OF CONTENTS

The United States Mint at a Glance 6

Management’s Discussion and Analysis 8

Analysis of Systems, Controls, and Legal Compliance 23

Limitations of the Financial Statements 24

Message from the Chief Financial Officer 25

Independent Auditors’ Report 27

Financial Statements 29

Notes to Financial Statements 33

Required Supplementary Information 49

Other Information 49

Independent Auditors’ Report on Internal Controls 50

Independent Auditors’ Report on Compliance and Other Matters 52

Appendix I: FY 2013 Coin and Medal Products 53
6

THE UNITED STATES MINT AT A GLANCE

UNITED STATES 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 for the United States. The Mint’s highest 

priority is to efficiently and effectively mint and 

issue circulating coinage. 

BULLION COINS 

The Mint is the world’s largest producer of gold 

and silver bullion coins. The bullion coin product

line provides consumers a simple and tangible 

means to acquire precious metal coins. Investors 

purchase bullion coins at a small mark up over 

spot prices 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 circulating 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 reduce national debt. Net 

income from numismatic product lines can also 

fund federal programs. 
7

2013 PERFORMANCE

Revenue and net income increased in FY 2013. Total revenue was $4,335.0 

million, increasing by 26.2 percent ($899.6 million) from last year. Cost of goods 

sold (COGS) increased 26.6 percent to $3,899.2 million mainly due to increased 

metal expenses to meet the volume growth in bullion coin sales. Selling, general, 

and administrative (SG&A) expenses declined 3.0 percent from last year, mainly 

due to continued ongoing cost reduction efforts. Total seigniorage and net income, 

before protection expenses, increased 40.5 percent to $292.5 million compared

to last year. 

CIRCULATING COINAGE

Circulating coin shipments increased 17.8 percent to 10,696 million coins in 

FY 2013. Quarter-dollar coin shipments experienced the strongest annual percentage 

growth at 118.5 percent compared to last year. Circulating revenue increased 17.2 

percent to $578.0 million. Seigniorage increased 29.7 percent to $137.4 million. 

Seigniorage per dollar issued increased to $0.24 from $0.21 last year.

BULLION COINS

Demand for bullion coins grew in FY 2013 to an all-time high. The Mint sold 45.9 

million ounces of gold and silver bullion coins, an increase of 11.1 million ounces 

from last year. Total bullion coin revenue increased 31.8 percent to nearly $3.3 

billion coins in FY 2013, as gold bullion coin revenue increased $611.9 million and 

silver bullion coin revenue increased $171.8 million compared to last year. Bullion 

coin net income increased 108.8 percent to $59.3 million. Bullion coin net margin 

increased to 1.8 percent compared to 1.2 percent last year.

NUMISMATIC PRODUCTS

Although numismatic units sold were slightly less (0.9 percent) than the prior year 

at 5.5 million in FY 2013, numismatic revenues increased 6.5 percent to $512.4 

million mainly because of an increase of $52.7 million in gold and platinum product 

revenue. Numismatic net income increased 29.6 percent to $95.8 million (before 

protection expenses). Numismatic net margin increased to 18.7 percent compared to 

15.4 percent last year.

TRANSFER TO THE GENERAL FUND

In FY 2013, the Mint transferred $392 million to the Treasury General Fund. The 

Mint transferred $350 million of seigniorage off-budget at the end of the fiscal year. 

In the first quarter, the Mint made an on-budget transfer of $42 million to the

Treasury General Fund, which represented numismatic program results for FY 2012. 
8

0

5,000

10,000

15,000

20,000

25,000

30,000

1973 1983 1993 2003 2013

MANAGEMENT’S DISCUSSION AND ANALYSIS

MEET THE NATION’S NEED FOR CIRCULATING COINS

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 

The total number of circulating coins shipped to the FRB increased 17.6 percent to 10.7 billion coins in FY 2013 

from 9.1 billion coins in FY 2012. Quarter-dollar coin shipments experienced the greatest annual growth, increasing 

118.5 percent from FY 2012. One-cent (penny)shipments were 61.8 percent of total shipments, down from 64.2 

percent of total shipments in FY 2012.

The total dollar value of shipments increased 17.2

percent to $578 million in FY 2013 from $493.3 

million in FY 2012. Seigniorage increased 29.7 

percent to $137.4 million mainly from increased 

quarter-dollar and dime shipments, along with a 

7.6 percent reduction in SG&A expenses compared 

to last year. 

Circulating COGS increased 17.8 percent to $383.7 

million from $325.8 million in FY 2012, mainly due 

to the increased volumes. The Mint saved about $1.9 

million in FY 2013 compared to last year mainly 

because metal prices were lower. Even with the 

increase in circulating coinage shipments, the Mint was able to cut plant overhead costs by three percent at the 

Denver and Philadelphia Mints (excluding a one-time establishment of an allowance for supplies of $6.7 million).

SG&A expenses decreased by 7.6 percent to $56.9 million from $61.6 million last year. This was primarily due to 

a 17 percent reduction in information technology expenses.

From FY 2009 to FY 2011, $1 coins generated the most seigniorage annually. In FY 2012, only the James Garfield 

Presidential $1 Coin was minted and issued to the FRB before circulating shipments of $1 coins were suspended on 

December 13, 2011. Without $1 coin shipments in FY 2013, the Mint expected seigniorage to be slightly lower than 

last year. However, because there was more demand for quarter-dollar coins than anticipated, FY 2013 total 

seigniorage actually exceeded last year’s amount. Quarter-dollar coins were responsible for $265.6 million in 

revenue and $154.1 in seigniorage, and dimes contributed $190.1 million in revenue and $103.5 in seigniorage. 

As a result, despite the lack of $1 coin contributions, total circulating seigniorage increased 29.7 percent to $137.4 

million from $105.9 million last year. Seigniorage per dollar issued performance increased to $0.24 in FY 2013 

from $0.21 in FY 2012.

Total Circulating Coin Production (coins in millions)
9

Five-cent

One-cent

Photo by Mike Unser

INNOVATIVE TECHNOLOGY

(Left) Sculptor and engravers have the choice of making physical models (galvanos) of their 

coin designs, the traditional method, or to use sophisticated computer programs to make 

3-D computer models, as Eric Custer demonstrates. Whether produced from scratch as a 

physical model or produced on the computer, the coin design ultimately ends up as a 3-D 

computer image.

(Center) William Tan operates the Press Die Vision System (PDVS), which is integrated 

with the coin press so that no striking can occur until the system inspects and approves the 

installed dies. This integration was created by a group in San Francisco. The system uses 

technology such as computer controlled servo motors, infrared lights, special mirrors, and 

a camera to inspect the installed dies in the press. If the dies are not an appropriate pair, 

striking is interlocked and prevents the striking of mule coins (obverses and reverses not 

meant to be together) for all denominations, increasing efficiency and lowering 

production costs. 

(Right) Optical digital scanning equipment operated by Eric Custer in Philadelphia uses 

state-of-the-art blue light technology for unparalleled fidelity of detail and repeatability 

in legacy plasters, coins, dies, and bronze galvanos.
10

2011

 

 

 

 

 

 

One-Cent Five-Cent Dime Quarter-Dollar Dollar Mutilated Total

 & Other

Coins Shipments 4,289 914 1,403 323 467 – 7,396

Value of Shipments $ 42.9 $ 45.7 $ 140.3 $ 81.0 $ 467.0 $ – $ 776.9

Gross Cost $ 103.1 $ 102.2 $ 79.3 $ 36.0 $ 84.2 $ 23.3 $ 428.1

 Cost of Goods Sold $ 85.4 $ 86.1 $ 67.1 $ 30.3 $ 72.5 $ 23.3 $ 364.7

 Selling, General & Administrative $ 17.7 $ 16.1 $ 12.2 $ 5.7 $ 11.7 $ – $ 63.4

Seigniorage $ (60.2) $ (56.5) $ 61.0 $ 45.0 $ 382.8 $ (23.3) $ 348.8

Seigniorage per $1 Issued $ (1.40) $ (1.24) $ 0.43 $ 0.56 $ 0.82 $ – $ 0.45

2013

 

 

 

 

 

 

 

 

2012

 

 

 

 

 

 

One-Cent Five-Cent Dime Quarter-Dollar Dollar Mutilated Total

 & Other

Coins Shipments 5,835 1,006 1,658 486 97 – 9,082

Value of Shipments $ 58.4 $ 50.3 $ 165.8 $ 121.7 $ 97.1 $ – $ 493.3

Gross Cost $ 116.4 $ 101.5 $ 82.7 $ 54.9 $ 20.5 $ 11.4 $ 387.4

 Cost of Goods Sold $ 96.5 $ 84.1 $ 69.5 $ 46.6 $ 17.7 $ 11.4 $ 325.8

 Selling, General & Administrative $ 19.9 $ 17.4 $ 13.2 $ 8.3 $ 2.8 $ – $ 61.6

Seigniorage $ (58.0) $ (51.2) $ 83.1 $ 66.8 $ 76.6 $ (11.4) $ 105.9

Seigniorage per $1 Issued $ (0.99) $ (1.02) $ 0.50 $ 0.55 $ 0.79 $ – $ 0.21

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

 

 

 

 

 

 2013 2012 2011 2010 2009 2012 to 2013

Coin Shipments 10,696 9,082 7,396 5,399 5,207 17.8%

Value of Shipments $ 578.0 $ 493.3 $ 776.9 $ 618.2 $ 777.6 17.2%

Gross Cost $ 440.6 $ 387.4 $ 428.1 $ 317.4 $ 349.8 13.7%

 Cost of Goods Sold $ 383.7 $ 325.8 $ 364.7 $ 239.2 $ 251.7 17.8%

 Selling, General & Administrative $ 56.9 $ 61.6 $ 63.4 $ 78.2 $ 98.1 (7.6%)

Seigniorage $ 137.4 $ 105.9 $ 348.8 $ 300.8 $ 427.8 29.7%

Seigniorage per $1 Issued $ 0.24 $ 0.21 $ 0.45 $ 0.49 $ 0.55

% Change

SHIPMENTS, COSTS, AND SEIGNIORAGE BY DENOMINATION

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

One-Cent Five-Cent Dime Quarter-Dollar Dollar Mutilated Total

 & Other

Coins Shipments 6,610 1,123 1,901 1,062 $ – 10,696

Value of Shipments $ 66.1 $ 56.2 $ 190.1 $ 265.6 $ – $ – $ 578.0

Gross Cost $ 121.1 $ 105.7 $ 86.6 $ 111.5 $ – $ 15.7 $ 440.6

 Cost of Goods Sold $ 104.7 $ 91.0 $ 75.1 $ 97.2 $ – $ 15.7 $ 383.7

 Selling, General & Administrative $ 16.4 $ 14.7 $ 11.5 $ 14.3 $ – $ – $ 56.9

Seigniorage $ (55.0) $ (49.5) $ 103.5 $ 154.1 $ – $ (15.7) $ 137.4

Seigniorage per $1 Issued $ (0.83) $ (0.88) $ 0.54 $ 0.58 $ – $ 0.24
11

Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13

Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 13

Deputy Director Richard Peterson with Rhonda Sapp, 

President of the American Federation of Government 

Employees, Mint Council

UNIT COST OF PRODUCING AND DISTRIBUTING COINS BY DENOMINATION

2013 One-Cent Five-Cent Dime Quarter-Dollar $1 Coin

Cost of Goods Sold $ 0.0156 $ 0.0805 $ 0.0391 $ 0.0903 –

Selling, General & Administrative $ 0.0025 $ 0.0131 $ 0.0061 $ 0.0135 –

Distribution to FRB $ 0.0002 $ 0.0005 $ 0.0004 $ 0.0012 –

Total Unit Cost $ 0.0183 $ 0.0941 $ 0.0456 $ 0.1050 –

2012 One-Cent Five-Cent Dime Quarter-Dollar $1 Coin

Cost of Goods Sold $ 0.0163 $ 0.0829 $ 0.0415 $ 0.0943 $ 0.1802

Selling, General & Administrative $ 0.0034 $ 0.0173 $ 0.0080 $ 0.0171 $ 0.0288

Distribution to FRB $ 0.0003 $ 0.0007 $ 0.0004 $ 0.0016 $ 0.0021

Total Unit Cost $ 0.0200 $ 0.1009 $ 0.0499 $ 0.1130 $ 0.2111

2011 One-Cent Five-Cent Dime Quarter-Dollar $1 Coin

Cost of Goods Sold $ 0.0197 $ 0.0938 $ 0.0474 $ 0.0923 $ 0.1531

Selling, General & Administrative $ 0.0041 $ 0.0176 $ 0.0087 $ 0.0176 $ 0.0251

Distribution to FRB $ 0.0003 $ 0.0004 $ 0.0004 $ 0.0015 $ 0.0021

Total Unit Cost $ 0.0241 $ 0.1118 $ 0.0565 $ 0.1114 $ 0.1803

FY 2013 unit costs decreased for all denominations compared to last year. The unit cost for both penny and five-cent

(nickel) denominations remained above face value for the eighth consecutive fiscal year. Although there was higher 

demand for pennies and nickels, lower unit costs generated a smaller FY 2013 loss ($104.5 million) for these 

denominations compared to FY 2012 ($109.2 million).

Average daily market prices for copper and nickel decreased 4.2 percent and 11.7 percent, respectively, from 

FY 2012 to FY 2013, while the average daily market price for zinc decreased slightly by 0.7 percent over the 

same time period.

Sep-09 Sep-10 Sep-11 Sep-12 Sep-13

Sep-09 Sep-10 Sep-11 Sep-12 Sep-
12

TECHNOLOGY THEN AND NOW

Introduced in 1907 and used throughout the 20th 

century, the Janvier Reduction Lathe (top) duplicated 

and reduced plasters created by the artists, generating 

master dies. Introduced in 2010, a CNC (computer 

numeric control) milling machine (bottom) takes digital 

information from the artist and automatically cuts hubs, 

dies, and templates. It takes 15 to 20 hours to cut a 

coinage hub and 25 to 30 hours to cut a three-inch die, 

about half the time it took with the Janvier Reduction 

Lathe, all while producing a higher quality product.

SEQUESTRATION AND CIRCULATING OPERATIONS 

The Mint’s circulating coinage programs and operations were subject to the sequestration order issued March 1, 

2013. As such, the Mint was required to reduce budgetary obligations for circulating operations by $24 million 

between March and September. The Mint successfully met its sequestration target. 

ALTERNATIVE METAL RESEARCH AND DEVELOPMENT 

In December 2012, the Mint submitted the 2012 Biennial Report to the Congress on the Current Status of Coin 

Production Costs and Analysis of Alternative Content to meet the requirements of the Coin Modernization, 

Oversight, and Continuity Act of 2010 (Public Law 111-302). The law provides the Secretary of the Treasury research

and development (R&D) authority for alternative metallic materials for circulating coins and requires a report every 

two years.

The Mint continues to research, develop, and test potential alternative materials, specifically production-scale runs 

to validate supply chains, ease of manufacture, and costs of production. We will also analyze the estimated costs to 

stakeholders associated with potential alternative metals. 

CIRCULATING PRODUCTION 

In anticipation of rising circulating demand in the third quarter, the Mint took advantage of lower demand during 

the first and second quarters of the fiscal year to increase circulating finished goods inventory. This level-loading 

of production was effective, as the third quarter demand was high, as expected. This strategy reduced the need for 

overtime at the facilities in Philadelphia and Denver, allowed for better equipment maintenance practices, and eased 

the strain on the supply chain from significant month-to-month variation in raw material requirements.

The Mint remains focused on reducing the costs of all our programs. As an example, in the past, the Mint would 

scrap unsold numismatic products, so unsold products struck in prior years are typically written down to record the 

expense of their production. In May 2013, the Mint converted about 6.4 million unsold circulating-quality quarterdollars in bags and rolls for numismatic sales into 32 bulk bags that shipped to the FRB in July. By doing this, the 

Mint avoided about $150,000 in costs to melt these coins and to manufacture an equal number of new circulating 

quarters to meet FRB demand.
13

MEET THE PUBLIC’S DEMAND FOR U.S. 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 and silver bullion coins to authorized purchasers through the American Eagle, American

Buffalo, and America the Beautiful Silver Bullion CoinTM 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 COIN RESULTS 

An increase in American Eagle Gold Bullion Coin demand boosted the Mint’s bullion revenue and net income.

Total bullion program revenue totaled $3,244.6 million, up 31.8 percent from $2,460.9 million last year. Bullion coin 

net income increased to $59.3 million in FY 2013, up 108.8 percent from $28.4 million in FY 2012. The bullion net

margin increased to 1.8 percent from 1.2 percent as the increase in volume spread fixed costs over more units.

Reflecting the metal market prices of coins sold, bullion coin COGS increased 31.2 percent to $3,159 million in

FY 2013 from $2,407.6 million last year.

The Mint sold 51.9 percent more ounces of American Eagle Gold Bullion Coins in FY 2013, yielding increases of 

$480.6 million in revenues and $13.3 million in net income compared to last year. American Buffalo Gold Bullion 

Coin ounces sold increased 66.7 percent, increasing revenue by $131.3 million and net income by $3.7 million.

BULLION COINS (dollars in millions)

 

 

% Change

 2013 2012 2011 2010 2009 2012 to 2013

Gold oz. sold (thousands) 1,218 788 1,235 1,839 1,418 54.6%

Silver oz. sold (thousands) 44,644 34,152 44,048 33,983 26,148 30.7%

Platinum oz. sold (thousands) – – – – 25 –

Sales Revenue $ 3,244.6 $ 2,460.9 $ 3,471.4 $ 2,855.4 $ 1,694.8 31.8%

Gross Cost $ 3,185.3 $ 2,432.5 $ 3,405.6 $ 2,800.2 $ 1,662.1 30.9%

 Cost of Goods Sold $ 3,159.0 $ 2,407.6 $ 3,378.8 $ 2,778.4 $ 1,650.0 31.2%

 Selling, General & Administrative $ 26.3 $ 24.9 $ 26.8 $ 21.8 $ 12.1 5.6%

Net Income $ 59.3 $ 28.4 $ 65.8 $ 55.2 $ 32.7 108.8%

Bullion Net Margin 1.8% 1.2% 1.9% 1.9% 1.9% 
14

Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13

 

 

2013

 

 

 

 

 

BULLION COINS REVENUE, COST, AND NET INCOME BY PROGRAM

(dollars in millions)

American American Sub-Total American America the Sub-Total Total

Eagle Gold Buffalo Gold Gold Eagle Silver Beautiful Silver Silver

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

 

 

 

 

 

American American Sub-Total American America the Sub-Total Total

Eagle Gold Buffalo Gold Gold Eagle Silver Beautiful Silver Silver

Ounces Sold (thousands) 647 141 788 33,707 445 34,152 34,940

Sales Revenue $ 1,105.4 $ 240.6 $ 1,346.0 $ 1,100.6 $ 14.3 $ 1,114.9 $ 2,460.9

Gross Cost $ 1,077.4 $ 235.3 $ 1,312.7 $ 1,105.0 $ 14.8 $ 1,119.8 $ 2,432.5

 Cost of Goods Sold $ 1,075.1 $ 234.9 $ 1,310.0 $ 1,083.0 $ 14.6 $ 1,097.6 $ 2,407.6

 Selling, General & Administrative $ 2.3 $ 0.4 $ 2.7 $ 22.0 $ 0.2 $ 22.2 $ 24.9

Net Income $ 28.0 $ 5.3 $ 33.3 $ (4.4) $ (0.5) $ (4.9) $ 28.4

Bullion Net Margin 2.5% 2.2% 2.5% (0.4%) 3.5% (0.4%) 1.2%

2011 American American Sub-Total American America the Sub-Total Total

Eagle Gold Buffalo Gold Gold Eagle Silver Beautiful Silver Silver

Ounces Sold (thousands) 1,106 129 1,235 41,309 2,739 44,048 45,283

Sales Revenue $ 1,689.5 $ 207.9 $ 1,897.4 $ 1,464.0 $ 110.0 $ 1,574.0 $ 3,471.4

Gross Cost $ 1,645.3 $ 202.9 $ 1,848.2 $ 1,450.4 $ 107.0 $ 1,557.4 $ 3,405.6

 Cost of Goods Sold $ 1,642.3 $ 202.6 $ 1,844.9 $ 1,428.0 $ 105.9 $ 1,533.9 $ 3,378.8

 Selling, General & Administrative $ 3.0 $ 0.3 $ 3.3 $ 22.4 $ 1.1 $ 23.5 $ 26.8

Net Income $ 44.2 $ 5.0 $ 49.2 $ 13.6 $ 3.0 $ 16.6 $ 65.8

Bullion Net Margin 2.6% 2.4% 2.6% 0.9% 2.7% 1.1% 1.9%

GOLD BULLION COIN RESULTS 

Total gold bullion coin ounces sold increased by 430 thousand ounces (54.6 percent) compared to FY 2012. The average daily spot price of gold during the year was $1,521.61 per ounce, down 8.4 percent from $1,660.49 per ounce last 

year. The gold spot price posted its biggest one-day percentage drop in 30 years on April 15, 2013 (falling 9.2 percent
15

13

Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13

RECORD-BREAKING YEAR FOR SILVER BULLION

Newly minted American Eagle Silver Bullion Coins (top) rest 

in a tray at the West Point facility. The Mint is the world’s 

largest producer of bullion coins and the West Point facility 

manufactures the entire family of American Eagle proof and 

uncirculated coins in gold, silver, and platinum. In FY 2013, 

the Mint sold 44.7 million ounces of silver bullion, which 

broke the previous record set in FY 2011 for silver bullion 

coin ounces sold.

Ellen McCullom (bottom), Plant Manager of the West Point 

facility, holds a newly minted 2013-W $50 Reverse Proof 

American Buffalo Gold Coin.

West Point began producing gold and silver bullion coins 

in 1986 and platinum bullion coins in 1997. The American 

Buffalo .9999 fine gold coins were added in 2006. 

Photos by Mike Unser

from $1,535.50 to $1,395.00). This resulted in significant volume changes in gold bullion coin orders. In the three 

days following the historic price drop, bullion purchasers ordered 107,500 ounces of gold coins compared to 60,000 

ounces in the two weeks preceding the price change. This unforeseen jump in demand was unprecedented and on 

April 22, the Mint sold out of American Eagle One-Tenth Ounce Gold Bullion Coins and did not resume sales of these 

coins until May 28. However, the Mint was able to fully meet the increased demand for all other gold bullion coin 

options. After performing strongly during the first three quarters of the Fiscal Year, gold bullion coin sales tapered off 

significantly in the fourth quarter.

SILVER BULLION COIN RESULTS 

The Mint sold 44.7 million ounces of silver bullion coins in FY 2013, passing the previous record of 44 million 

ounces sold in FY 2011. Sales of American Eagle Silver Bullion coin ounces increased by 29.2 percent, increasing 

revenue by $155.4 million and net income by $12.2 million compared to last year. America the Beautiful Five-Ounce 

Silver Bullion Coins generated increases of $16.4 million in revenue and $1.7 million in net income on 143.8 percent 

more ounces sold compared to last year. Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-
16

Traditional Process Enhanced Process

ENHANCED POLISHING AND LASER FROSTING

The Mint Research and Development team has pioneered unique proof polishing and laser 

frosting techniques for a dramatic enhancement of artistic quality in coin and medal design. 

The techniques allow sculptors and engravers exceptional freedom of expression. One of 

the best examples is the 2013 5-Star Generals Commemorative Silver Proof Coin (traditional 

process pictured on the left, enhanced process on the right). The process begins with selective horsehair and proof polishing to achieve varying degrees of reflectivity and brightness. 

Aspects of the artwork, text, and field are then selectively masked or left exposed to control 

levels of polish. Degrees of laser intensity are applied to accentuate specific parts of the 

design and then laser-generated textures are strategically applied for the final artistic touch. 

Because of this ongoing high demand for silver bullion, the sales of American Eagle Silver Bullion Coins went under 

allocation on January 28 and remained on allocation through the end of the fiscal year. The average daily spot price of 

silver was $26.79 per ounce, down 13.4 percent from $30.94 last year. The silver market price dropped 14.1 percent 

on April 15, from $27.40 to $23.54. The strong demand for silver continued before and after the drop in silver price.
17

RESPONSIBLY EXPAND THE NUMISMATIC PROGRAM

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 were relatively stable at 5.5 

million units in FY 2013 compared to 5.6 million units 

in FY 2012 (a slight decrease of 0.9 percent). Numismatic 

revenue increased 6.5 percent to $512.4 million in FY 2013 

from $481.2 million last year, mainly driven by a $52.7 

million (32.6 percent) increase in Gold and Platinum Coin 

products revenue.

The 2013 American Buffalo Gold One Ounce Reverse 

Proof, 2013 American Eagle Silver One Ounce Proof Coin, 

and the 2013 American Eagle Silver Two-Coin West Point 

Set generated the most numismatic revenue in FY 2013. 

The 2013 American Eagle Silver One Ounce Proof Coin and 2013 United States Mint Proof Set were the most 

popular sellers (in terms of units) this year.

Numismatic program net income and seigniorage increased 29.6 percent to $95.8 million in FY 2013 from $73.9 

million in FY 2012. Numismatic COGS increased 3.0 percent to $356.5 million from $346.1 million primarily from 

the increased volume of gold and platinum product sales. SG&A expenses decreased 1.8 percent compared to last 

year, because of a 23.5 percent decrease in selling expenses. Numismatic net margin increased to 18.7 percent in FY 

2013 from 15.4 percent in FY 2012 as revenue from higher-margin gold and silver coin product sales comprised a 

greater share of the total numismatic revenue.

Gold and platinum unit sales increased by 35.2 percent over last year, driven by the introduction of the new American Buffalo Reverse Proof gold coin. The Presidential $1 Coin and First Spouse Medal unit sales increased by 13 

percent over last year, primarily from the introduction of new $1 coin numismatic products offered following the 

NUMISMATIC (dollars in millions)

 

 

 

 

 

 

% Change

 2013 2012 2011 2010 2009 2012 to 2013

Units Sold (Thousands) 5,509 5,559 7,311 6,466 7,642 (0.9%)

Sales Revenue $ 512.4 $ 481.2 $ 721.7 $ 413.1 $ 440.0 6.5%

Gross Cost $ 416.6 $ 407.3 $ 608.5 $ 363.3 $ 398.9 2.3%

 Cost of Goods Sold $ 356.5 $ 346.1 $ 543.8 $ 298.6 $ 329.7 3.0%

 Selling, General & Administrative $ 60.1 $ 61.2 $ 64.7 $ 64.7 $ 69.2 (1.8%)

Net Income & Seigniorage $ 95.8 $ 73.9 $ 113.2 $ 49.8 $ 41.1 29.6%

Numismatic Net Margin 18.7% 15.4% 15.7% 12.1% 9.3%

Seigniorage Portion $ 29.3 $ 22.9 $ 9.8 $ 12.0 $ 19.3 27.9%

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.
18

Photo by Mike Unser

2013 CODE TALKERS CONGRESSIONAL GOLD MEDAL PROGRAM

The Mint is proud to have played a significant role in honoring the Native American Code 

Talkers this year. An intense three-year outreach effort to American Indian tribes — identified 

by the Department of Defense as Code Talkers in World War I or World War II — culminated 

in a Code Talker Congressional Gold Medal Ceremony honoring 25 tribes with gold medals. 

Eight or more tribes will receive gold medals at a later date. The 25 medals required 50 

unique designs and six months of design and production at Philadelphia. Mint SculptorEngraver Michael Gaudioso (left) is pictured working on the obverse of the Oglala Sioux 

Tribe of South Dakota’s medal (center). All 25 medals (right) are displayed for viewing by 

employees at the United States Mint headquarters in Washington, D.C.

suspension of $1 coin shipments for circulation. The unit sales for the remaining product categories either stayed 

level or continued to decrease. 

The two precious metal numismatic product categories (gold and platinum, and silver) generated the vast majority of 

revenue (67.1 percent), compared to the other numismatic product categories. Similarly, these categories generated 

$70.9 million of the numismatic net income compared to $24.9 million net income generated by the other categories.

The annual recurring sets product category generated a loss of $3.4 million in FY 2013. This loss is mainly attributed 

to reduced margins, as the price of silver proof sets was lowered in July in response to lower silver content value in 

the set from significant decreases in silver commodity spot prices.

NEW PRODUCT HIGHLIGHTS 

This year, the 2013 United States Mint Congratulations Set and the 2013 United States Mint Happy Birthday 

Set joined the United States Mint Birth Set, to commemorate important life events. The United States Mint 

Congratulations Set contained one of the bureau’s most popular coins, a 2013 American Eagle One Ounce Silver 

Proof Coin. The United States Mint Happy Birthday Set contained five 2013 proof quality coins. The packaging for 

both of these products included a space for a personal message. Revenue from the United States Mint Congratulations 

Set was almost $275,000 and revenue from the United States Mint Happy Birthday Set was nearly $155,000.

The 2013 American Buffalo One Ounce Gold Reverse Proof Coin went on sale in August and generated $49.9 

million in sales. The American Buffalo design was first featured on a nickel in 1913, then again in 2006 on the first 

24-karat gold proof coin ever struck by the Mint. The 2013 version, celebrating 100 years, reverses the mirror-like 

background finish of the traditional proof coin and applies it to the design elements of coin. 

Several limited-edition products were offered this year. The Mint sold a 2013 American Eagle West Point Two-Coin

Silver Set, which contributed $32 million in revenue to commemorate the 75th anniversary of the building that houses 

the United States Mint at West Point. The 2013 American Eagle West Point Two-Coin Silver Set contained one 

American Eagle Silver Proof Coin with a reverse proof finish and one American Eagle Silver Uncirculated Coin with 
19

 

 

 

 

 

 

an enhanced finish. The surface combined an uncirculated finish with a frosted finish, adding sharp definition to the 

designs. The Mint developed an enhanced finish, using a combination of laser technology and polishing techniques to 

accentuate specific parts of the design. The resulting surface finish highlights the intricate design of the coin, which 

was well received by both collectors and industry professionals. 

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

(dollars in millions)

2013 Gold and Platinum 

Coin Products

Silver Coin Annual Quarter Presidential and Commemorative Miscellaneous Total

Products Sets* Products First Spouse Medals

Units Sold (Thousands) 142 1,521 1,587 716 1,007 327 209 5,509

Sales Revenue $ 214.2 $ 129.5 $ 62.8 $ 17.8 $ 44.9 $ 23.0 $ 20.2 $ 512.4

Gross Cost $ 184.6 $ 88.2 $ 66.2 $ 15.1 $ 22.3 $ 22.3 $ 17.9 $ 416.6

 Cost of Goods Sold $ 181.9 $ 75.6 $ 47.6 $ 10.2 $ 15.1 $ 19.2 $ 6.9 $ 356.5

 Selling, General

 & Administrative $ 2.7 $ 12.6 $ 18.6 $ 4.9 $ 7.2 $ 3.1 $ 11.0 $ 60.1

Net Income

& Seigniorage $ 29.6 $ 41.3 $ (3.4) $ 2.7 $ 22.6 $ 0.7 $ 2.3 $ 95.8

Numismatic

Net Margin 13.8% 31.9% (5.4%) 15.2% 50.3% 3.0% 11.4% 18.7%

Seigniorage Portion $ – $ – $ – $ 2.7 $ 22.8 $ – $ 3.8 $ 29.3

2012

 

 

 

 

 

 

Gold and Platinum Silver Coin Annual Quarter Presidential and Commemorative Miscellaneous Total

Coin Products Products Sets* Products First Spouse Medals

Units Sold (Thousands) 105 1,568 1,627 737 891 437 194 5,559

Sales Revenue $ 161.5 $ 150.5 $ 65.7 $ 18.9 $ 35.4 $ 29.0 $ 20.2 $ 481.2

Gross Cost $ 142.1 $ 101.3 $ 68.4 $ 19.0 $ 17.8 $ 28.8 $ 29.9 $ 407.3

 Cost of Goods Sold $ 140.2 $ 83.9 $ 49.6 $ 13.6 $ 10.7 $ 23.7 $ 24.4 $ 346.1

 Selling, General

 & Administrative $ 1.9 $ 17.4 $ 18.8 $ 5.4 $ 7.1 $ 5.1 $ 5.5 $ 61.2

Net Income

& Seigniorage $ 19.4 $ 49.2 $ (2.7) $ (0.1) $ 17.6 $ 0.2 $ (9.7) $ 73.9

Numismatic

Net Margin 12.0% 32.7% (4.1%) (0.5%) 49.7% 0.7% (48.0%) 15.4%

Seigniorage Portion $ – $ – $ – $ 2.2 $ 17.6 $ – $ 3.1 $ 22.9

2011

 

 

 

 

 

 

Gold and Platinum Silver Coin Annual Quarter Presidential and Commemorative Miscellaneous Total

Coin Products Products Sets* Products First Spouse Medals

Units Sold (Thousands) 247 1,889 2,657 814 871 645 188 7,311

Sales Revenue $ 369.9 $ 129.2 $ 107.4 $ 22.3 $ 21.0 $ 43.2 $ 28.7 $ 721.7

Gross Cost $ 315.8 $ 76.0 $ 96.8 $ 21.9 $ 12.8 $ 35.5 $ 49.7 $ 608.5

 Cost of Goods Sold $ 312.6 $ 63.6 $ 72.9 $ 17.6 $ 8.2 $ 30.5 $ 38.4 $ 543.8

 Selling, General

 & Administrative $ 3.2 $ 12.4 $ 23.9 $ 4.3 $ 4.6 $ 5.0 $ 11.3 $ 64.7

Net Income

& Seigniorage $ 54.1 $ 53.2 $ 10.6 $ 0.4 $ 8.2 $ 7.7 $ (21.0) $ 113.2

Numismatic

Net Margin 14.6% 41.2% 9.9% 1.8% 39.0% 17.8% (73.2%) 15.7%

Seigniorage Portion $ – $ – $ – $ 2.3 $ 5.8 $ – $ 1.7 $ 9.8

*Annual Sets are the United States Mint Silver Proof Set, United States Mint Proof Set, and United States Mint Uncirculated Coin Set.
20

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. By September 30, the 2013 5-Star Generals Commemorative Coin Program had revenue of $15.4 

million with surcharges of $1.9 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 had 

$6.3 million in revenue and $1.2 in surcharges collected. These programs run through December 31, 2013. 

Three commemorative programs finished in FY 2013. The 2012 National Infantry Museum and Soldier Center 

Commemorative Coin Program had revenue of $10.3 million, with $2.1 million paid in surcharges to its recipient 

organization, the National Infantry Foundation. The National September 11 Memorial & Museum Commemorative 

Medal Program generated $10.5 million in revenue, with $1.8 million paid in surcharges to its recipient 

organization, the National September 11 Memorial & Museum at the World Trade Center. The 2012 Star-Spangled 

Banner Commemorative Coin Program had revenue of $23.6 million, with $3 million to be paid in surcharges to its 

recipient organization, the Maryland War of 1812 Bicentennial Commission.

In FY 2013, we also launched a public design competition for the obverse of the National Baseball Hall of Fame 

Commemorative Coins, which will be issued in 2014. The design competition was held by the Mint from April 11 

through May 11. Members of the National Baseball Hall of Fame participated as judges, and the winner was 

announced on September 9. In addition to this competition, we invited children 13 and under to create 

a coin design. 

CONGRESSIONAL MEDALS 

In April, we prepared and struck a Congressional Gold Medal honoring Professor Muhammad Yunus, in recognition 

of his contributions to the fight against global poverty. Among his many accomplishments and contributions,

Professor Yunus established a bank in Bangladesh in 1983 to provide loans to the poor on reasonable terms to help 

them start their own businesses. 

In September, we prepared and struck a Congressional Gold Medal honoring Addie Mae Collins, Denise McNair, 

Carole Robertson, and Cynthia Wesley. These young women were killed when a bomb exploded at the Sixteenth 

Street Baptist Church in Birmingham, Alabama, on September 15, 1963. 

We produced and sold bronze duplicates of both of these medals.

CUSTOMER SERVICE 

The performance of our numismatic program depends heavily on whether we effectively meet our customers’ 

expectations, so the Mint conducts satisfaction surveys each quarter. Customers evaluate the quality of the Mint’s 

service and products. Customers rated the Mint favorably at 92.6 percent in FY 2013, up from 90 percent in FY 2012.

Throughout 2013, the Mint researched the effectiveness of our communication with customers. As a part of this 

effort, focus groups in Boston, Cleveland, San Francisco, Charlotte, Philadelphia, Phoenix, Detroit, and Austin 

discussed product notification e-mails and the Coins Online newsletter, as well as the Mint’s product portfolio and 

its appeal to existing and new customers. In addition, we studied customer service in the call center and developed 

improvements to help customers and customer service representatives communicate effectively and efficiently. 

In February 2013, the Annual Government Customer Satisfaction Forum recognized the Mint for its achievements 

in providing the best possible customer service in 2012. Based on customer feedback surveys, the Mint received 

a customer satisfaction score of 95 – the highest call center score ever achieved in government using American 

Customer Satisfaction Index (ACSI) methodology. The benchmark for the federal government under ACSI was 

68.4, and for non-government it was 75.9. 
21

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

10

8

12

6

4

2

0 

TRANSFER TO 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 

amount required to support ongoing operations and programs. 

In FY 2013, the Mint transferred a total of $392 million to the Treasury General Fund. 

The off-budget transfer comprises seigniorage, which is not treated as a budgetary receipt to the government but as 

a means of financing. In FY 2013, the Mint returned $350 million, the first off-budget transfer in three years. 

The on-budget transfer usually comprises 

numismatic net income and is typically 

performed in the first quarter each fiscal 

year. The Mint made an on-budget 

transfer of $42 million to the General 

Fund, compared to $77 million 

transferred last year. The on-budget

transfer this year included the previous 

year’s numismatic net income of $37 

million and $5 million from surcharges 

collected but not able to be disbursed 

for a prior year commemorative 

coin program. 

FOSTER A SAFE, ENGAGED, AND INNOVATIVE WORKFORCE 

It is our goal to have a safe, engaged, and innovative workforce, making the Mint the employer of choice for current 

and future employees. Embracing innovative practices by engaging modern technologies and becoming more 

environmentally sustainable not only benefits our employees, but also benefits the American public.

SAFETY FIRST 

Total recordable injury and illness case rates fell from 3.5 in FY 2012 to 2.90 in FY 2013. This performance exceeded

our target of 3.14. We were below the average rate of 7.8 for forging and stamping manufacturers, according to the 

Occupational Safety and Health Administration. 

All of our sites have active safety programs that 

focus on all aspects of employee safety, especially 

material handling and ergonomic risks.

SUSTAINABILITY EFFORTS 

The Mint has concentrated on making substantial 

changes to our buildings and production operations 

to lessen our carbon footprint, and our sustainability 

projects have begun to show positive results.

• We conducted water conservation audits at all 

manufacturing locations and implemented water 

conservation measures. As a result, over the past five years, we have an annual savings of 38 million gallons of 

potable water, a 64 percent change from our baseline. 

Rate of Injury and Illness Cases per 100 Full-Time Workers 
22

©UCAR, Photo by Carlye Calvin

LEADING THE WAY ON GREENHOUSE GAS REDUCTIONS

(Left) A green roof graces the Mint in San Francisco. (Center) Wind turbines supply 100 

percent of the energy needs of the Mint at Denver. (Right) Pictured are regular users of 

vanpools in San Francisco. These and many other sustainability innovations have resulted 

in dramatic reductions of greenhouse gas emissions. We have already far surpassed goals 

set by the Department of the Treasury for the Mint to meet by the year 2020—a 33 percent 

reduction in direct emissions and an 11 percent reduction in indirect emissions. We have 

already reduced direct emissions by 47 percent and indirect emissions by 32 percent, 

all while increasing production in all three business lines.

• The Treasury Department established goals for the Mint to reduce its direct greenhouse gas emissions by 33

percent and indirect greenhouse gas emissions by 11 percent between 2008 and 2020. The Mint has surpassed 

these goals and has reduced its direct greenhouse gas emissions by 47 percent and its indirect greenhouse gas 

emissions by 32 percent. 

• For the past several years, we have been retro-commissioning the plants in Philadelphia and Denver to improve 

the way our equipment and systems function. Our eventual goal for FY 2015 is a 25 percent reduction in energy 

use (based on a FY 2003 baseline). Between FY 2003 and FY 2012, we reduced energy intensity by 10.2 percent. 

Denver purchases all electricity from renewable resources, which has reduced greenhouse gases attributable to the 

facility by the CO2 equivalent of 25.8 million pounds annually. 

• The San Francisco plant now recycles 100 percent of its waste, which means 133,251 pounds of trash was

recycled, rather than being sent to a landfill. 

• The Mint installed a modern, high efficiency boiler at the U.S. Bullion Depository at Fort Knox in 2008 and 

updated its heating, ventilation, and air conditioning system. Full implementation of the new boiler along with 

reduced natural gas prices has generated savings averaging $35,000 a year for the past four years. The new boiler 

has reduced natural gas use and greenhouse gas emissions by roughly 50 percent.

• This year, we eliminated the use of hexavalent chrome, a known human carcinogen, and lead, a toxic waste

by-product, by switching to physical vapor deposition (PVD) for the steel dies used to strike proof coins. 

In addition, we demolished and decontaminated the plating operations in San Francisco and Philadelphia, 

and installed the new PVD equipment in San Francisco, Philadelphia, and West Point.

We are committed to improving the sustainability of our operations—not only to save energy and costs, but also to 

be better stewards of the assets and facilities we use to perform the Mint’s mission.
23

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 organization under my purview 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 under my purview 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; and

• financial management systems are in compliance with federal financial systems standards, (i.e., FMFIA Section

4 and FFMIA).

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 2013. 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, 2013, 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.
24

WEST POINT CELEBRATES 75 YEARS OF OPERATION

To celebrate its 75th anniversary, the Mint at West Point, ordinarily 

closed to the media, invited press inside the plant for a behind-thescenes look at our operations. Seen here, the West Point gold workingstock storage holds 4,300 gold bars valued at more than $2.3 billion. 

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

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

1987 (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 (IPERA).

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

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

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

LIMITATIONS OF THE FINANCIAL STATEMENTS

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.
25

MESSAGE FROM THE CHIEF FINANCIAL OFFICER:

I am privileged to present the Mint’s financial statements as part of the FY 2013 Annual 

Report and the independent auditor’s unmodified or “clean” audit opinion on these

financial statements.

For those who follow the finances of the Mint, you will recall the past few years have 

been a bit of a roller coaster ride.

In FY 2009, the Mint saw demand for our circulating coins drop dramatically to levels 

not seen since 1963, the last time demand was less than 4 billion coins. The decline in 

coinage for commerce coincided with the recent recession. Over the past few years, 

however, the demand for circulating coins has slowly increased to levels similar to 

those just prior to the recession.

While demand for circulating and bullion coins is strong, the Mint’s collectible numismatic 

products have been on a slow decline that seems to have bottomed out in FY 2012. While the sales of recurring 

numismatic products, such as United States Mint Proof Sets, United States Mint Uncirculated Coin Sets, and United 

States Mint Silver Proof Sets, have continued to decline, other new products (see page 18) have closed the gap. I 

reflect on these past few years, as each trend presents its own fiscal challenges and risks.

For the past five years, the Mint has implemented strategies to be more efficient and to reduce our cost of operations 

as a way to mitigate these risks. For example, between FY 2009 and FY 2012 our plants’ overhead cost decreased by 

$6.6 million. This trend reversed in FY 2013 due to high demand but is still reflective of the savings achieved in the 

prior years. Between 2009 and 2013, the Mint’s SG&A was reduced by $36.1 million. How did we achieve this? 

It was accomplished through exceptional teamwork, solid internal controls, and data-driven decisions. Here are a 

few examples: 

David Motl

United States Mint

Chief Financial Officer

• We rearranged work schedules 

at the Denver and Philadelphia 

plants from three-shift operations 

to two-shift operations and 

leveled the circulating coinage 

production throughout the year.

• We instituted position management controls to give a more 

central and strategic perspective 

on our human resource needs 

and use.

• We enhanced our review into 

discretionary spending and 

put controls in place to ensure 

maximum value from the dollars 

we spend.

• We used tools like Lean or Six Sigma concepts to make our processes more efficient and effective. 

Numismatic

Bullion

Circulating
26

FY 2013 financial results are reflective of these strategic, long-term cost reductions, as well as the increased production volumes for circulating and bullion coins and stabilized volumes for numismatic products. I am pleased to 

report that the Mint Public Enterprise Fund is getting stronger and, for the first time in three years, had an off-budget 

transfer and an on-budget transfer to the Treasury General Fund (see page 21).

I would be remiss if I did not recognize one other significant achievement in the fiscal arena. The Department of the 

Treasury awarded the Mint “Bureau of the Year” because we spent 85 percent of available contracting dollars on 

small, minority, or woman-owned businesses. 

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 Sates 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 provide sound fiscal guidance and direction for the Mint.

David Motl, Chief Financial Officer
27

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, 2013 and 2012, 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. 
28

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, 2013 and 2012, 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 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, Message from the Chief Financial Officer, Required Supplementary 

Information, and Other Information and Appendix 1: FY 2013 Coin and Medal Products is presented for purposes 

of additional analysis and is 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 January 8, 2014 on our 

consideration of the United States Mint’s internal control over financial reporting and our report dated January 8, 

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.

January 8, 2014
29

DEPARTMENT OF THE TREASURY UNITED STATES MINT

BALANCE SHEETS

As of September 30, 2013 and 2012

 2012

 

 

2013 

(dollars in thousands)

Assets

Intragovernmental:

 Fund Balance with Treasury (Note 3) $ 713,156 $ 964,517

 Advances and Prepayments (Note 5) 2,271 3,232

Total Intragovernmental Assets 715,427 967,749

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

 Accounts Receivable, Net (Note 4) 20,437 12,093

 Inventory (Notes 7 and 20) 472,017 361,612

 Supplies 14,214 17,678

 Property, Plant and Equipment, Net (Note 8) 183,309 182,527

 Advances and Prepayments (Note 5) 1 1

 $ 11,183,718 $ 11,067,651

 $ 11,899,145 $ 12,035,400

Total Non-Intragovernmental Assets 

Total Assets (Notes 2 and 14) 

Heritage Assets (Note 9)

Liabilities

Intragovernmental:

 Accounts Payable $ 5,536 $ 5,641

 Accrued Workers’ Compensation and Benefits 7,919 9,110

Total Intragovernmental Liabilities 13,455 14,751

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

 Accounts Payable 21,169 21,543

 Surcharges Payable (Note 3) 6,128 11,179

 Accrued Payroll and Benefits 13,155 18,374

 Other Actuarial Liabilities 31,543 28,525

 Unearned Revenue 2,756 1,541

 Deposit Fund Liability (Notes 10 and 12) 94 94

 $ 10,568,585 $ 10,574,996

 $ 10,582,040 $ 10,589,747

Total Non-Intragovernmental Liabilities 

Total Liabilities (Notes 10 and 14) 

Commitments and Contingencies (Notes 12 and 13)

Net Position

Cumulative Results of Operations - Funds from

 Dedicated Collections (Note 14) 

Total Liabilities and Net Position 

 1,317,105 1,445,653

 $ 11,899,145 $ 12,035,400

The accompanying notes are an integral part of these financial statements.
30

DEPARTMENT OF THE TREASURY UNITED STATES MINT

STATEMENTS OF NET COST

For the years ended September 30, 2013 and 2012

 2012

 

 

2013 

(dollars in thousands)

Numismatic Production and Sales

 Gross Cost $ 3,591,557 $ 2,832,988

 Less Earned Revenue (3,717,423) (2,912,432)

Net Program Cost (Revenue) (125,866) (79,444)

Numismatic Production and Sales of Circulating Coins

 Gross Cost 10,347 6,765

 Less Earned Revenue (Note 16) (10,347) (6,765)

Net Program Cost (Revenue) – –

Circulating Production and Sales

 Gross Cost 440,608 387,434

 Less Earned Revenue (Note 16) (440,608) (387,434)

Net Program Cost (Revenue) – –

Net Cost (Revenue) Before Protection of Assets (125,866) (79,444)

Protection of Assets

 Protection Costs 43,163 42,195

 Less Earned Revenue (27) –

Net Cost of Protection of Assets 

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

 43,136 42,195

 $ (37,249)

The accompanying notes are an integral part of these financial statements.
31

DEPARTMENT OF THE TREASURY UNITED STATES MINT

STATEMENTS OF CHANGES IN NET POSITION

For the years ended September 30, 2013 and 2012

 

 

2013 2012

(dollars in thousands)

Cumulative Results of Operations

Net Position, Beginning of Year - Funds from Dedicated Collections $ 1,445,653 $ 1,343,652

Financing Sources:

 Transfers to the Treasury General Fund On-Budget (Note 19) (41,999) (77,000)

 Transfers to the Treasury General Fund Off-Budget (Note 19) (350,000) –

 Other Financing Sources (Seigniorage) (Note 16) 166,691 128,709

 Imputed Financing Sources (Note 11) 13,757 13,043

 Transfer in Without Reimbursement 273 –

Total Financing Sources (211,278) 64,752

Net Revenue from Operations 82,730 37,249

Net Position, End of Year - Funds from

 Dedicated Collections (Note 14) $ 1,317,105 $ 1,445,653

The accompanying notes are an integral part of these financial statements.
32

DEPARTMENT OF THE TREASURY UNITED STATES MINT

STATEMENTS OF BUDGETARY RESOURCES

For the years ended September 30, 2013 and 2012

 2012

 

 

 

 

2013 

(dollars in thousands)

Budgetary Resources:

Unobligated balance, brought forward, October 1 $ 693,852 $ 413,094

Recoveries of prior-year unpaid obligations 41,809 51,025

Other changes in unobligated balance (41,999) (77,000)

Unobligated balance from prior year budget authority, net 693,662 387,119

Spending Authority from Offsetting Collections 3,961,232 3,413,037

Total Budgetary Resources $ 4,654,894 $ 3,800,156

Status of Budgetary Resources:

Obligations Incurred (Note 17) $ 4,158,603 $ 3,106,304

Unobligated balance, end of year

 Apportioned 496,291 669,760

 Unapportioned – 24,092

 496,291 693,852

$ 4,654,894 $ 3,800,156

Total unobligated balance, end of year 

Total Budgetary Resources 

Change in Obligated Balances:

Unpaid obligations:

Unpaid obligations, brought forward, October 1 $ 276,501 $ 346,248

Obligations Incurred (Note 17) 4,158,603 3,106,304

Gross Outlays (4,194,857) (3,125,026)

Recoveries of Prior Year Unpaid Obligations (41,809) (51,025)

Unpaid obligations, end of year $ 198,438 $ 276,501

Uncollected Payments:

Uncollected customer payments from Federal 

 Sources, Brought Forward, October 1 $ (5,930) $ (6,694)

Change in uncollected customer payments from Federal sources (34) 764

Uncollected payments, Federal sources, end of year $ (5,964) $ (5,930)

Memorandum (non-add) entries:

Obligated balance, start of year $ 270,571 $ 339,554

Obligated Balance, end of year $ 192,474 $ 270,571

Budget Authority and Outlays, Net:

Budget Authority, gross $ 3,961,232 $ 3,413,037

Actual offsetting collections (3,985,495) (3,413,801)

Change in uncollected customer payments from Federal Sources (34) 764

$ (24,297) $ –

$ 4,194,857 $ 3,125,026

Budget Authority, net 

Outlays, gross 

Actual offsetting collections 

Outlays, Net 

 (3,985,495) (3,413,801)

$ 209,362 $ (288,775)

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

NOTES TO THE FINANCIAL STATEMENTS

For the Years Ended September 30, 2013 and 2012

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, and 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 acts 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. 
34

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 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 180 days past due. However, the bureau will continue collection action on those 

accounts that are more than 180 days past due, as specified by the Debt Collection Improvement

Act of 1996.

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). 
35

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 bureau to avoid the market risk associated with buying gold far 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 bureau 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 bureau manufacturing needs. Accordingly, for the purpose of avoiding market risk 

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

SUPPLIES Supplies are items that are not considered inventory and are not a part of the finished

product. These items include plant engineering and maintenance supplies, as well as die steel and coin 

dies. Supplies are accounted for using the consumption method, in which supplies are recognized as 

assets upon acquisition and expensed as they are consumed.

ADVANCES AND PREPAYMENTS Payments in advance of the receipt of goods and services are 

recorded as an asset at the time of prepayment, and are expensed when related goods and services are 

received or used. 

PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment are valued at cost, less 

accumulated depreciation. The Mint’s threshold for capitalizing new property, plant, and equipment 

is $25,000 for single purchases and $500,000 for bulk purchases. Depreciation is computed on a 

straight-line basis over the estimated useful lives of the related assets as follows: 

Computer Equipment 3 to 5 years

Software 2 to 10 years

Machinery and Equipment 7 to 20 years

Structures, Facilities, and Leasehold Improvements 10 to 30 years

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

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

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

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. 
36

SURCHARGES Public laws authorizing commemorative coin and medal programs often require that 

the sales price of each coin include an amount, called a surcharge, which is authorized to provide funds 

to a qualifying organization or group of organizations for the purposes specified. A surcharges payable 

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

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

the coin program are fully recovered. The bureau 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 bureau 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) 

27, Identifying and Reporting Earmarked Funds, as amended by 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 bureau 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 bureau’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 bureau. 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. 
37

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 bureau, 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 

bureau 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 considered mutilated. The bureau 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 bureau 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 bureau 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 an off-budget receipt to the Treasury 

General Fund. Off-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 an on-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. 

In FY 2013, the Mint transferred approximately $5 million in unclaimed surcharges from an expired 

commemorative coin program. In accordance with the provisions of Public Law 108-15, as codified at 

31 U.S.C. § 5134(f)(1)(B), these funds were returned to the Treasury because the recipient organization 

was unable qualify for a surcharge disbursement. Because these funds were generated by a numismatic 

program, they were transferred to the General Fund as an on-budget receipt. 
38

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 bureau’s budgetary resources consist of unobligated balances, transfers, and 

spending authority from offsetting collections, which is net of amounts that are permanently not

available. “Permanently not available” funds are on-budget transfers to the General Fund. 

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

a result of the changes in market prices. The bureau 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 bureau’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 bureau incurred $212 thousand in hedging fees in FY 2013, compared 

to $169 thousand incurred in FY 2012. 

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

September 30, 2013 presentation.

2. NON-ENTITY ASSETS

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

(dollars in thousands) 2013 2012

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) 

Total Non-entity Assets 

 11,539 11,539

 10,493,740 10,493,740

Total Entity Assets 

Total Assets 

 1,405,405 1,541,660

$ 11,899,145 $ 12,035,400

Entity assets are assets that the reporting entity has authority to use in its operations. Mint management 

has legal authority to use entity assets to meet entity obligations. United States gold and silver bullion 

reserves, for which the bureau is custodian, are non-entity assets. 

3. FUND BALANCE WITH TREASURY

Fund Balance with Treasury at September 30 consists of:

(dollars in thousands) 2013 2012

Revolving Fund $ 713,062 $ 964,423

Other Fund Types 

Total of Fund Balance with Treasury 

 94 94

$ 713,156 $ 964,517

Status of Fund Balance with Treasury

Unobligated Balance $ 496,291 $ 693,852

Obligated Balance, Not Yet Disbursed 192,474 270,571

Adjustment for Authority Unavailable for Obligations 24,297 –

Non-Budgetary FBWT 

Total 

 94 94

$ 713,156 $ 964,517
39

The Mint does not receive appropriated budget authority. The Fund Balance with Treasury is entirely 

available for use to support bureau operations. At September 30, 2013 and 2012, the revolving fund 

balance included $6.1 million and $11.2 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, 2013

 Gross Receivables Allowance Net Receivables

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

With the Public 

Total Accounts Receivable 

 20,899 (462) 20,437

$ 26,845 $(6,408) $ 20,437

(dollars in thousands) 

 

 September 30, 2012

 Gross Receivables Allowance Net Receivables

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

With the Public 

Total Accounts Receivable 

 12,490 (397) 12,093

$ 18,436 $(6,343) $ 12,093

Intragovernmental accounts receivable are fully reserved as of September 30, 2013 and 2012. 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 bureau 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, 2013, are $20 million, of which $17.5 million is owed by 

fabricators for scrap, webbing, and mutilated coin. The remaining $2.5 million is owed by the public 

for numismatic products. This compares to receivables with the public at September 30, 2012, of $12.5 

million, of which $8.3 million was owed by fabricators for scrap and webbing, in addition to amounts 

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 180 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) 2013 2012

Intragovernmental $ 2,271 $ 3,232

With the Public 

Total Other Assets 

 1 

$ 2,272 

 1

$ 3,233

Intragovernmental advances and prepayments as of September 30, 2013 and 2012 include $1.0 million 

and $1.6 million, respectively, that the Mint paid the Treasury Working Capital Fund (WCF) for a 

variety of centralized services. Treasury is ending its practice of collecting advances to fund the WCF 

and moving towards a reimbursable activity, which is why the WCF advance balance has decreased 

since FY 2012 and will continue to decrease until the balance is zero and the WCF begins to bill actual 

cost for services rendered. The remaining balance of approximately $1.3 million represents payments 

made to the United States Postal Service for product delivery services as of September 30, 2013, 

compared to approximately $1.6 million paid at September 30, 2012. Advances with the public for 

both FY 2013 and 2012 are outstanding travel advances to bureau employees who were traveling on 

government business.
40

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 bureau. 

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:

 

 

 

 

 

 

 

 

 

 

 

 2013 2012

Gold - Deep Storage:

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

 Market Value ($ per FTO) $ 1,326.50 $ 1,776.00

 Market Value ($ in thousands) $ 325,341,233 $ 435,586,905

 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) $ 1,326.50 $ 1,776.00

 Market Value ($ in thousands) $ 3,691,940 $ 4,942,996

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

Silver - Deep Storage:

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

 Market Value ($ per FTO) $ 21.68 $ 34.65

 Market Value ($ in thousands) $ 153,390 $ 245,154

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

Silver - Working Stock:

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

 Market Value ($ per FTO) $ 21.68 $ 34.65

Market Value ($ in thousands) $ 193,490 $ 309,245

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

Total Market Value of Custodial Gold

 and Silver Reserves ($ in thousands) $ 329,380,053 $ 441,084,300

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) 2013 2012

Raw Materials $ 320,092 $ 184,383

Work-In-Process 62,168 98,348

Inventory held for current sale 

Total Inventory 

 89,757 78,881

$ 472,017 $ 361,612

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, 2013 and 2012, the inventory includes $251.8 

million and $241.5 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.
41

8. PROPERTY, PLANT, AND EQUIPMENT, NET

Components of property, plant and equipment are as follows:

(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

(dollars in thousands)

 

 September 30, 2012 

 Asset Cost Accumulated Depreciation Total Property, Plant

 and Amortization and Equipment, Net

Land $ 2,529 $ – $ 2,529

Structures, Facilities and

 Leasehold Improvements 228,896 (150,760) 78,136

Computer Equipment 31,232 (29,062) 2,170

ADP Software 16,183 (15,508) 675

Construction-In-Progress 16,450 – 16,450

Machinery and Equipment 279,372 (196,805) 82,567

Total Property, Plant

 and Equipment, Net $ 574,662 $ (392,135) $ 182,527

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 bureau 

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 

the FY 2013 and FY 2012 were $26.5 million and $27.8 million, respectively.

9. HERITAGE ASSETS

The Mint maintains collections of heritage assets, which are any property, plant, or equipment that are 

retained by the bureau 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 bureau’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 bureau’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. Heritage assets held by the 

bureau are generally in acceptable physical condition. The following chart represents the Mint’s 

various collections and historical artifacts. 
42

Coin Collections Quantity of Collections Held September 30,

 2013 2012

Pattern Pieces/Prototypes 1 1

Coin Specimens 1 1

Quality Samples 1 1

Exotic Metal Coin Samples 

Total 

 1 1

 4 4

Historical Artifacts Quantity of Collections Held September 30,

 2013 2012

Antiques/Artifacts 1 1

Plasters 1 1

Galvanos 1 1

Dies 1 1

Punches 1 1

Historical Documents 1 1

Multi-use heritage assets 

Total 

 4 4

 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) 2013 2012

Custodial Gold Reserves (Deep Storage) $ 10,355,539 $ 10,355,539

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

Working Stock Inventory - Gold 117,514 117,514

Working Stock Inventory - Silver 11,539 11,539

Other 94 94

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

Total Liabilities Covered by Budgetary Resources 

Total Liabilities 

 88,206 95,913

$ 10,582,040 $ 10,589,747

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 bureau 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 bureau 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 2013 (a $5,500 catchup 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 bureau contributes a portion for pension benefits and makes the necessary payroll deductions, it is not responsible for administering either CSRS or FERS. Administering and reporting on 

pension benefit programs are the responsibilities of the Office of Personnel Management (OPM). OPM 
43

has provided the Mint with certain cost factors that estimate the cost of providing the pension benefit 

to current employees. The cost factors of 32.3 percent of basic pay for CSRS-covered employees and 

14.2 percent of basic pay for FERS-covered employees were in use for FY 2013. The CSRS and FERS 

factors were 29.8 percent and 13.7 percent, respectively, in FY 2012. 

The amounts that the bureau contributed to the retirement plans and Social Security for the year ended 

September 30 are as follows:

(dollars in thousands) 2013 2012

Social Security System $ 7,325 $ 7,335

Civil Service Retirement System 994 1,124

Federal Employees Retirement System

 (Retirement and Thrift Savings Plan) 

Total Retirement Plans and Other Post-employment Cost 

 13,342 13,503

$ 21,661 $ 21,962

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 $5,190 and 

$5,817 per employee enrolled in the Federal Employees Health Benefits Program in FY 2013 and FY 

2012, 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 2013 and FY 2012. 

The amount of imputed cost related to retirement plans and other post-employment costs incurred by the 

bureau for the year ended September 30 is as follows (before the offset for imputing financing):

(dollars in thousands) 2013 2012

Health Benefits $ 7,872 $ 8,375

Life Insurance 32 32

Pension Expense 

Total Imputed Retirement and Postemployment Costs 

 4,466 3,938

$ 12,370 $ 12,345

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 bureau. Entries are made in

accordance with FASAB Interpretation No. 2. During FY 2013, the Judgment Fund paid $312 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 bureau 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 2013, 

the Mint received unreimbursed services (imputed financing) from another federal agency. The amount 

was $1.1 million. For FY 2012, entries for Judgment Fund payments totaled about $0.7 million. 

12. LEASE COMMITMENTS

THE MINT AS LESSEE: The bureau leases office and warehouse space from commercial vendors, 

the General Services Administration (GSA), and the Bureau of Engraving and Printing. In addition, the 

bureau 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.
44

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

in the leased Headquarters building in Washington, D.C. As of September 30, 2013, 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 bureau 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: Building Sub-lease

Year 4 (FY 2014) $378,000

Year 5 (FY 2015) 378,000

Year 6 (FY 2016) 404,460

Year 7 (FY 2017) 404,460

Year 8 (FY 2018) 404,460

Year 9 (FY 2019) 

Total Future Operating Lease Receipts 

 404,460

 $2,373,840

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 bureau 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 materially 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 material 

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 27, Identifying and Reporting Earmarked Funds and 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:
45

(dollars in thousands) 

 

 

 

 

 

 

 2013 2012

Numismatic Production and Sales

Cost:

 Intragovernmental:

 Cost of Goods Sold $ 19,691 $ 19,607

 Selling, General and Administrative 19,451 19,410

 Imputed Costs 6,395 5,884

 Total Intragovernmental Costs 45,537 44,901

 Public:

 Cost of Goods Sold 3,480,551 2,722,438

 Selling, General and Administrative 65,469 65,649

 Total Public Cost 3,546,020 2,788,087

Gross Cost 3,591,557 2,832,988

Revenue:

 Intragovernmental:

 Rent Revenues 3,093 3,408

 Other Intragovernmental Revenues 26 66

 Total Intragovernmental Revenues 3,119 3,474

 Public 3,714,304 2,908,958

 Total Earned Revenue 3,717,423 2,912,432

Net Program Cost (Revenue) $ (125,866) $ (79,444)

 

Numismatic Production and Sales of Circulating Coins

Cost:

 Intragovernmental:

 Selling, General and Administrative $ 324 $ 226

 Total Intragovernmental Costs 324 226

 Public:

 Cost of Goods Sold 8,934 5,775

 Selling, General and Administrative 1,089 764

 Total Public Cost 10,023 6,539

Gross Cost 10,347 6,765

Revenue:

 Public 10,347 6,765

 Total Earned Revenue 10,347 6,765

Net Program Cost (Revenue) 

 

$ – $ –

Circulating Production and Sales

Cost:

 Intragovernmental:

 Cost of Goods Sold $ 2,028 $ 2,197

 Selling, General and Administrative 13,444 13,062

 Imputed Costs 7,363 7,160

 Total Intragovernmental Costs 22,835 22,419

 Public:

 Cost of Goods Sold 358,532 305,030

 Selling, General and Administrative 43,494 48,551

 Other Costs and Expenses (Mutilated and Uncurrent) 15,747 11,434

 Total Public Cost 417,773 365,015

 Gross Cost 440,608 387,434

Revenue:

 Public 440,608 387,434

 Total Earned Revenue 440,608 387,434

Net Program Cost (Revenue) 

Net Cost (Revenue) Before Protection of Assets 

$ – 

$ 

$ –

(125,866) $ (79,444)
46

 

 

 

 

 2013 2012

Protection of Assets

 Intragovernmental:

 Protection Cost $ 7,617 $ 8,326

 Revenues 27 –

 Public:

 Protection Cost 35,546 33,869

 Total Earned Revenue – –

 Net Cost of Protection of Assets 

 Net Cost (Revenue) from Operations 

 $ 43,136 

 $ (82,730) 

$ 42,195

$ (37,249)

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) 

 

 

 

 

 

 2013 2012

Revenue-FRB $ 440,608 $ 387,434

Seigniorage-FRB 

Total Circulating Coins $ 

 137,415 105,850

578,023 $ 493,284

Revenue-with the public $ 10,347 $ 6,765

Seigniorage-with the public 

Total Numismatic sales of Circulating Coins 

Total Seigniorage 

$ 

$ 

 29,276 22,859

39,623 $ 29,624

166,691 $ 128,709

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 bureau obligations are classified as reimbursable, as they are financed by offsetting collections 

received in return for goods and services provided. OMB usually uses one of two categories to 

distribute budgetary resources. Category A apportionments distribute budgetary resources by fiscal 

quarters. Category B apportionments typically distribute budgetary resources by activities, projects, 

objects, or a combination of these categories. The Mint has only category B apportionments. 
47

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 fiscal year FY 2013 is 

expected to be published in February 2014 and made available through OMB. Therefore, the analysis 

presented here is for the prior year (FY 2012) “actual” figures published in the President’s budget in 

February 2013. The following chart displays the comparison of the FY 2012 SBR and the actual 

FY 2012 balances included in the FY 2014 President’s Budget.

(rounded to millions) September 30, 2012

 Statement of Budgetary

 Resources 

President’s

United States Mint Public Enterprise Fund Budget

Total Budgetary Resources $3,800 $3,800

Status of Budgetary Resources:

 Obligations Incurred $3,106 $3,106

 Unobligated Balances-available 

Total Status of Budgetary Resources 

 694 694

 $3,800 $3,800

Net Outlays $ 289 $ 289

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, 2013 and 2012, the bureau 

transferred excess receipts to the Treasury General Fund of $42 million and $77 million, respectively. 

The FY 2013 transfer included approximately $5 million in unclaimed surcharges from an expired 

commemorative coin program, as directed by the provisions of Public Law 108-15, codified at 31 

U.S.C. § 5134(f)(1)(B). Because these funds were generated by a numismatic program, they were 

transferred to the General Fund as an on-budget receipt. Also during FY 2013, the Mint transferred 

$350 million in excess receipts, or seigniorage, to the General Fund.

20. HEDGING PROGRAM

At September 30, 2013 and 2012, 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 $251.8 million and 

$241.5 million, respectively. At September 30, 2013, neither the bureau nor the trading partner owed 

the other for unpaid realized gains or losses, while at September 30, 2012, the bureau owed the trading 

partner $1.2 million in unpaid realized losses. In FY 2013, the bureau recorded an unrealized loss of 

$4.0 million compared to an unrealized loss of $1.9 million in FY 2012.
48

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

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

 2013 2012

Resources Used to Finance Activities:

 Budgetary Resources Obligated

 Obligations Incurred $ 4,158,603 $ 3,106,304

 Less: Spending Authority from

 Offsetting Collections and Recoveries 4,027,338 3,464,062

 Net Obligations 131,265 (357,758)

 Other Resources

 Transfers to the Treasury General Fund On-Budget (41,999) (77,000)

 Transfers to the Treasury General Fund Off-Budget (350,000) –

 Imputed Financing from Costs Absorbed by Others 13,757 13,043

 Other Financing Sources (Seigniorage) 166,691 128,709

 Transfers in without reimbursement 273 –

 Net Other Resources Used to Finance Activities (211,278) 64,752

Total Resources Used to Finance Activities (80,013) (293,006)

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 (76,252) (30,491)

 Resources that fund Expenses Recognized in Prior Periods (10) (272)

 Resources that Finance the Acquisition

 of Assets or Liquidation of Liabilities 577,721 426,508

 Other (42,448) (77,000)

 Total Resources Used to Finance Items

 Not Part of the Net Cost of Operations 459,011 318,745

Total Resources Used to Finance the Net Cost of Operations (539,024) (611,751)

Components Requiring or Generating

Resources in Future Periods

 Increase in Exchange Revenue Receivable from the Public – (165)

Total Components of Net Cost of Operations that will 

Require or Generate Resources in Future Periods – (165)

Components not Requiring or Generating Resources 

 in the Current Period

 Depreciation and Amortization 26,499 27,767

 Revaluation of Assets 7,767 3,204

 Other 422,028 543,696

Total Components of Net Revenue from Operations 

 that will not require or Generate Resources 456,294 574,667

Total Components of Net Revenue from Operations 

 that will not require or Generate Resources 

 in the Current Period 

Net Cost (Revenue) from Operations 

 456,294 574,502

$ (82,730) $ (37,249)

22. UNDELIVERED ORDERS AT THE END OF THE PERIOD

Budgetary resources obligated for undelivered orders as of September 30, 2013 and 2012 were 

$121,422 and $196,478, respectively.
49

 

 

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 

FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012

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

For The Years Ended September 30,

2013 2012

(dollars in thousands)

What Money is Available to Spend?

Total Resources $4,654,894 $3,800,156

Less Amount Not Agreed to be Spent (496,291) (669,760)

Less Amount Not Available to be Spent 0 (24,092)

Total Amounts Agreed to be Spent $4,158,603 $3,106,304

How was the Money Spent?

Personnel Compensation 150,393 151,290

Personnel Benefits 47,104 45,681

Benefits for Former Personnel 1,038 171

Travel and transportation of persons 1,355 2,189

Transportion of things 32,291 29,840

Rent, Communications, and utilities 24,305 25,121

Printing and reproduction 1,158 1,132

Other contractual services (15,703) 102,487

Supplies and materials 3,884,540 2,714,895

Equipment 19,899 23,551

Land and structures 10,240 9,945

Insurance claims and indemnities 1,981 0

Interest and dividends 2 2

Total Amounts Agreed to be Spent $4,158,603 $3,106,304

Who did the Money go to? 

Federal 61,485 68,280

Non-Federal 4,097,118

Total Amounts Agreed to be Spent 

 3,038,024

 $4,158,603 $3,106,304
50

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 United States Mint, which comprise the balance sheets 

as of September 30, 2013 and 2012, 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 January 8, 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, 2013, 

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.
51

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.

January 8, 2014
52

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 United States Mint, which comprise the balance sheets 

as of September 30, 2013 and 2012, 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 January 8, 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.

January 8, 2014
53

APPENDIX I: FY 2013 COIN AND MEDAL PRODUCTS

AMERICA THE BEAUTIFUL QUARTERS® PROGRAM 

DENALI NATIONAL PARK AND PRESERVE—ALASKA

Coin Released: November 5, 2012

Description: The first national park established to protect wildlife

populations, Denali National Park and Preserve covers six million acres 

of wild land, and is home to grizzly bears, caribou, wolves, Dall sheep, 

and moose. North America’s tallest peak, Mount McKinley, is one of the 

boundaries of the park. The reverse design of this coin features a Dall 

sheep with Mount McKinley rising in the background. 

WHITE MOUNTAIN NATIONAL FOREST—NEW HAMPSHIRE

Coins Released: January 28, 2013

Description: White Mountain National Forest was established as a national 

site on May 16, 1918, and is one of America’s most visited national forests. 

Mount Washington, the highest peak north of the Smoky Mountains and 

east of the Mississippi, is located within the park. On the coin, Mount 

Chocorua, the easternmost peak of the Sandwich Range, is featured 

on the reverse. 

PERRY’S VICTORY AND INTERNATIONAL PEACE 

MEMORIAL—OHIO

Coins Released: April 1, 2013

Description: Perry’s Victory and International Peace Memorial site in Ohio 

was established to honor those who fought in the Battle of Lake Erie during 

the War of 1812 and to commemorate the long-lasting peace among the 

United Kingdom, Canada, and the United States. The reverse features the 

statue of Master Commandant Oliver Hazard Perry with the Peace 

Memorial located in the distance. 

GREAT BASIN NATIONAL PARK—NEVADA

Coins Released: June 10, 2013

Description: Great Basin National Park has exceptional examples of 

regional geology, biologic diversity, and scenic grandeur. With more than 

40 miles of perennial streams and 400 springs, it is an oasis in the desert. 

The park has numerous Bristlecone Pine groves (as depicted on the reverse 

of the quarter), some with trees older than 4,000 years. 

FORT McHENRY NATIONAL MONUMENT AND HISTORIC 

SHRINE—MARYLAND

Coin Released: August 26, 2013

Description: Built between 1799 and 1802 in Baltimore, Md., Fort McHenry

was meant to defend the city of Baltimore. When the United States declared 

war against Great Britain in June 1812, the people of Baltimore were certain 
54

the British would attack the city, so they strengthened defenses at the fort. 

Their fears were realized when the British attacked Fort McHenry in 

September 1812, after burning Washington. Francis Scott Key composed 

the words to “The Star-Spangled Banner” while watching the fierce fight 

from a British ship, where he was held until the battle was over—and the 

Americans won.

PRESIDENTIAL $1 COIN PROGRAM

GROVER CLEVELAND PRESIDENTIAL $1 COIN (SECOND TERM)

24TH PRESIDENT, 1893-1897

Coin Released: November 15, 2012

Description: President Cleveland served two non-consecutive terms in 

office. He and his wife, Frances, married during his first term, and between 

his first and second terms, they returned to New York, where he practiced 

law and they began their family. By the time Cleveland returned to office, 

the country was experiencing economic challenges, made even worse by the 

Sherman Silver Purchase Act. Cleveland persuaded Congress to repeal it 

and, with the aid of Wall Street, maintained the gold reserves. After leaving 

the White House for the second time, Cleveland retired to Princeton, N.J., 

dying there in 1908.

WILLIAM McKINLEY PRESIDENTIAL $1 COIN

25TH PRESIDENT, 1897-1901

Coin Released: February 19, 2013

Description: After serving as a major in the Union Army, McKinley practiced

law in Ohio. He served in the U.S. House of Representatives for 14 years 

and as governor of Ohio for two terms before being elected President. 

During his administration, the United States won the Spanish-American War 

(and colonized Puerto Rico, Guam, and the Philippines), annexed Hawaii, 

and expanded international trade. He is credited with promoting industry 

and keeping the United States on the gold standard. McKinley won a second 

presidential election, but shortly after his inauguration, an assassin shot him 

at the Pan-American Exposition in Buffalo, N.Y. He died eight days later. 

THEODORE ROOSEVELT PRESIDENTIAL $1 COIN

26TH PRESIDENT, 1901-1909

Coin Released: April 11, 2013

Description: Roosevelt was well known as a Rough Rider and naturalist, 

but he was also drawn to public service at an early age. One year after 

graduating from Harvard, he was elected to the New York State Assembly; 

after that, his public career spanned a range of appointments broken by 

stints as a rancher in North Dakota and a volunteer cavalry officer in Cuba 

during the Spanish-American War. While governor, he was elected to the 

vice presidency. After McKinley was assassinated, Roosevelt finished out 

McKinley’s term and then was elected in 1904. He saw the Panama Canal 
55

completed and won the Nobel Peace Prize for ending the Russo-Japanese 

War. After running unsuccessfully for president in 1912, he went on a South 

American scientific expedition, which adversely affected his health. He died 

in 1919. While President, Roosevelt took an active interest in the design of 

American coinage, personally commissioning renowned sculptor Augustus 

Saint-Gaudens to redesign the “double eagle” ($20) gold coin and the $10 

Indian head gold eagle.

WILLIAM HOWARD TAFT PRESIDENTIAL $1 COIN

27TH PRESIDENT, 1909-1913

Coin Released: July 9, 2013

Description: Taft is the only American to have served his country as both 

President and Chief Justice. He began his public service career by serving 

on the Superior Court of Cincinnati, then as the Solicitor General of the 

U.S. and as a judge on the U.S. Court of Appeals. He was appointed 

Governor-General of the Philippines, then Secretary of War. More interested 

in the legal precedent than in politics, Taft was not popular, but he was a 

hard worker and got results. In just four years, he filed 90 antitrust suits, 

created the United States Chamber of Commerce, reorganized both the State 

Department and the federal budget process (which prompted the Budget and 

Accounting Act of 1921), and proposed income taxes (which led the way 

for the Sixteenth Amendment to the Constitution). After losing the 1912 

election, he served as a professor of law at Yale University and as president 

of the American Bar Association. President Warren G. Harding nominated 

Taft for Chief Justice, a position he held until 1930. He retired for health 

reasons, and died shortly thereafter. 

FIRST SPOUSE GOLD BULLION COIN AND BRONZE MEDAL 

PROGRAM

ALICE PAUL AND THE SUFFRAGE MOVEMENT FIRST SPOUSE 

GOLD COIN AND BRONZE MEDAL—ADMINISTRATION 

OF PRESIDENT CHESTER ARTHUR, 1881-1885

Coin and Medal Released: October 11, 2012

Description: Ellen Arthur, Chester Arthur’s wife, died before he served as 

President. The Presidential $1 Coin Act specifies that a likeness of suffragist

Alice Paul, born during Arthur’s term, appear on the obverse of the First 

Spouse Gold Coin accompanying President Arthur’s term. Ms. Paul 

dedicated her life to securing equal rights for all women, and because of her 

work, the 19th Amendment to the Constitution, ratified on August 26, 1920, 

finally gave women the right to vote.
56

FRANCES CLEVELAND FIRST SPOUSE GOLD COIN 

AND BRONZE MEDAL—FIRST LADY, 1886-1889

Coin and Medal Released: November 15, 2012

Description: When she was 21, Frances married President Cleveland, a 

long-time family friend 27 years older than she. Although she was young 

and beautiful, it was her charm that won the hearts of the American public. 

While in the White House, she gave two receptions per week, making sure 

that one was on Saturday afternoons, when women with jobs could attend. 

Common “shop girls,” government clerks, maids, and other service industry

workers lined up in the regal East Room or, weather permitting, on the 

south lawn to shake the hand and have a personal word with the young and 

popular First Lady.

CAROLINE HARRISON FIRST SPOUSE GOLD COIN 

AND BRONZE MEDAL—FIRST LADY, 1889-1892 

Coin and Medal Released: December 6, 2012

Description: Mrs. Harrison loved flowers, and enjoyed painting—two 

interests that are reflected on the reverse of this coin. During her time in the 

White House, she taught ceramic painting classes to Washington women, 

and decorated numerous pieces of White House china. As First Lady, she 

organized pieces of past Presidential china into a systematic collection for 

later display. She secured funding for much-needed renovations as well 

as funding for the Johns Hopkins University Medical School—with the 

condition that it admit women. She died of tuberculosis while her husband 

was still in office.

FRANCES CLEVELAND FIRST SPOUSE GOLD COIN 

AND BRONZE MEDAL—FIRST LADY, 1893-1897

Coin and Medal Released: December 20, 2012

Description: Frances Cleveland was the only First Lady to occupy the 

White House in two non-consecutive administrations. This time, she was 

chiefly occupied with her growing family—six children, all born within a 

12-year span, which prompted her to hire a kindergarten teacher to teach 

in the White House, the first formalized school located there. She was also 

occupied with charitable works for women, supporting young musicians, 

African Americans, and educational opportunities for women..
57

2013 NATIVE AMERICAN $1 COIN

Coins Released: April 23, 2013

Description: This coin commemorates the Delaware Treaty of 1778, the 

first formal treaty the United States signed after declaring independence. 

The mutual defense treaty allowed American troops to pass through the 

Delaware Tribe’s land to attack the British fort at Detroit, Michigan. Under 

the treaty, the U.S. recognized the Delaware Nation’s sovereignty. It also 

gave the Delaware Nation the option of joining other tribes in the Ohio 

region to form a state with the Delaware Tribe at the head to become part 

of the U.S. Confederation, with representation in Congress. Although the 

statehood option was never used, it foreshadowed the later acknowledgment 

of tribes as partners in the federal system. The reverse of this coin features 

a turkey, howling wolf, and turtle, all symbols of the clans of the 

Delaware Tribe.

5-STAR GENERALS COMMEMORATIVE COIN PROGRAM

Coins Released: March 21, 2013

Mintage Limit: 100,000 gold, $5, 500,000 silver, $1, 750,000 clad

half-dollar

Description: Public Law 111-262 authorizes the United States Mint to mint 

and issue $5 gold, $1 silver, and half-dollar clad coins to commemorate 

United States Army 5-Star Generals Douglas MacArthur, George C. Marshall,

Henry “Hap” Arnold, Dwight D. Eisenhower, and Omar N. Bradley, all

either alumni of or instructors at the United States Army Command and 

General Staff College (CGSC). This is the 132nd anniversary of the 

founding of the CGSC. All surcharges are authorized to be paid to the 

CGSC Foundation to help finance its activities in support of the college.

2013 GIRL SCOUTS OF THE USA 

CENTENNIAL COMMEMORATIVE COIN PROGRAM

Coins Released: February 28, 2013 

Mintage Limit: 350,000

Description: Authorized by Public Law 111-86, these proof and uncirculated

silver dollar coins commemorate the 100th anniversary of the establishment 

of the Girl Scouts of the United States of America. Established in 1912, 

there are more than 3.2 million members throughout the United States 

and its territories today. A $10 per coin surcharge is authorized to be paid to 

Girl Scouts of the USA. 
58

PROFESSOR MUHAMMAD YUNUS

CONGRESSIONAL GOLD MEDAL

Medal Awarded: April 17, 2013

Description: A Congressional Gold Medal was awarded to Dr. Muhammad 

Yunus in recognition of his contributions to the fight against global poverty. 

Best known as the “banker to the poor,” Muhammad Yunus established the 

Grameen Bank in Bangladesh in 1983 to provide loans to poor people on 

reasonable terms to start their own businesses. He was one of the first to 

fight poverty through microcredit, contending that by lending money and 

teaching a few basic financial principles, people are generally able to lift 

themselves from poverty. This successful model of lending has been copied 

by more than 100 countries worldwide. His work with the poor led to 

various humanitarian awards, including the 2006 Nobel Peace Prize and 

the 2009 Presidential Medal of Freedom. 

16TH STREET BAPTIST CHURCH BOMBING VICTIMS 

CONGRESSIONAL GOLD MEDAL 

Medal Awarded: September 10, 2013

Description: A Congressional Gold Medal was awarded to Addie Mae Collins, Denise McNair, Carole Robertson, and Cynthia Wesley to commemorate the lives they lost when they were killed by a bomb that exploded at 

the Sixteenth Street Baptist Church in Birmingham, Alabama on September 

15, 1963. This tragedy shocked the nation and galvanized the Civil Rights 

Movement, paving the way for President Lyndon B. Johnson to sign both 

the Civil Rights Act of 1964 and the Voting Rights Act of 1965 into law.

2013 AMERICAN EAGLE PLATINUM PROOF COIN PROGRAM

Coin Released: July 18, 2013

Description: In 2009, the Mint introduced a new six-year platinum proof 

coin program highlighting the six principles embodied in the Preamble to 

the U.S. Constitution. In 2013, a coin commemorating the principle, “To 

Promote the General Welfare,” was released. The reverse design features 

America against a backdrop of interlocking gears, symbolizing the 

interconnection of power between the states and the national government. 

The reverse designs in the Preamble Series are inspired by narratives 

prepared by the Chief Justice of the United States at the request of the Mint. 
59


CONNECTING AMERICA THROUGH COINS

www.usmint.gov