2012 ANNUAL REPORT
 
Pictured on this year’s cover are some of the United States Mint’s numismatic products that were 

offered in 2012. Pictured from left to right are: the American Buffalo One Ounce Gold Proof Coin; 

the American Eagle One Ounce Silver Proof Coin; the American Eagle One Ounce Gold Proof 

Coin; the American Eagle One Ounce Platinum Proof Coin; and the Star-Spangled Banner Proof 

$5 Gold Coin. The coins are set against a weathered American flag. 
ACTING DIRECTOR’S LETTER 

I am pleased to present the United States Mint’s 2012 Annual Report. Once again this 

year, the men and women at each of our facilities delivered outstanding results across our 

various business segments and coin programs. It is an honor and privilege to highlight 

their accomplishments. 

The United States Mint (Mint) operates two fiscally separate programs: a circulating 

program and a numismatic program that includes both collectible coin products and 

precious metal bullion coins. The Mint enjoyed strong performance throughout fiscal 

year (FY) 2012 in both programs. Though revenue decreased in each program in FY 

2012, as a result of our continued focus on costs, we generated positive seigniorage 

in our circulating program and positive net income in our bullion and collectible 

coin programs. 

Reflecting the suspension of Presidential $1 Coin production for circulation, our circulating revenue declined in FY 

2012 to $493.3 from $776.9 in FY 2011. While still quite strong from a historical perspective, lower unit volumes 

and silver prices pushed our bullion coin revenue down 29.1 percent in FY 2012 to $2.5 billion from the record level 

of $3.5 billion set in FY 2011. Revenue from our collectible coins, medals, and other numismatic products decreased 

33.3 percent to $481.2 million in FY 2012, down from $721.7 million in FY 2011. 

We are proud that our focus on controlling costs allowed us to mitigate these revenue declines and close the year 

with positive results in each program. Circulating seigniorage in FY 2012 was $105.9 million. Bullion net income 

in FY 2012 was $28.4 million down 56.8 percent from $65.8 million in FY 2011. Net income from our numismatic 

collectible coins decreased 34.7 percent to $73.9 million in FY 2012, down from $113.2 million in the prior year. 

Our results in FY 2012 reflect a partial return to the norm when compared to the record revenue and net income 

results of FY 2011 and the dramatic swings we have experienced since FY 2009. Let’s look more closely into each 

of our programs. 

CIRCULATING 

Most significantly, circulating coin shipments increased 22.8 percent to 9.1 billion units from 7.4 billion in FY 2011 

as the Mint ramped up production to meet consistently higher demand from the Federal Reserve Banks (FRBs). 

Our circulating coin shipments have grown at a compound annual growth rate (CAGR) of more than 20 percent 

since the low of 5.2 billion coins in FY 2009. We are equally pleased with the results of the ongoing cost reduction 

efforts that we began in FY 2009. We have actually reduced our non-metal circulating expenses, in nominal dollars, 

by $50.2 million (21.8 percent) from $230.1 million in FY 2009 to $179.9 million in FY 2012. Our improved 

capacity utilization and significantly reduced cost structure combined to deliver outstanding productivity 

improvements across each circulating denomination and position us well for the future. 

While our cost reduction efforts, increased productivity, and decreased commodity metals prices were all favorable 

in FY 2012, the costs to manufacture and distribute both the one-cent and five-cent coins exceeded their face value 

again, just as they have for each of the last six years. This negative seigniorage concerns us, and we continue to 

explore ways to address it. 

Because we suspended production of the circulating Presidential $1 Coin in early FY 2012 in response to growing 

inventories of unused $1 coins at the FRBs, we knew that our seigniorage would be significantly reduced for FY 

2012. Our cost reduction efforts, along with positive seigniorage earned on dimes, quarter-dollars, and the James 

Garfield $1 Coins (issued prior to the suspension of circulating Presidential $1 Coin production), allowed us to offset 

the negative seigniorage generated by the one-cent and five-cent coins to close FY 2012 with positive seigniorage of 

Richard A. Peterson 

United States Mint
 

Acting Director
 

1
 
$105.9 million. Looking forward, we anticipate continued positive seigniorage for the circulating program overall as 

production of the quarter-dollar coin continues to rebound in FY 2013 from its recent lows. 

BULLION COINS 

One of our most important missions is to mint and issue bullion coins to meet the needs of investors seeking 

precious metals for their portfolios. Our facility in West Point produces a wide variety of these precious metal coins 

for the investor community. The Philadelphia Mint manufactures the large, fi ve-ounce America the Beautiful Silver 

Bullion Coins and the San Francisco Mint currently supplements West Point’s capacity for one-ounce American 

Eagle Silver Bullion Coins. 

Although unit volumes and commodity prices were down in FY 2012, uncertainty in global fiscal and security 

conditions contributed to the significant volatility we saw throughout the year. In January 2012, we saw the highest 

monthly unit sales total in our history—with 5.843 million ounces of bullion sold. For the year, we sold 788,000 

ounces of gold bullion coins and 34.2 million ounces of silver bullion coins. Gold and silver ounces were down 36.2 

percent and 22.7 percent, respectively from the 1.235 million ounces of gold coins and 44.0 million ounces of silver 

coins we sold in FY 2011. 

Net income for the bullion program saw a decrease of 56.8 percent to $28.4 million in FY 2012 from $65.8 million 

in FY 2011 due to lower volumes and pricing. The lower prices for silver—along with lower numismatic sales from 

our San Francisco and Philadelphia numismatic products (causing more overhead from those facilities to be charged 

to the silver bullion products)—resulted in a minor net income loss for the silver bullion program as a whole. We 

have held several focus groups with our precious metal bullion coin sales network and look forward to making some 

exciting, customer-centric changes to our bullion program going forward. 

NUMISMATIC 

Comparing FY 2012 and FY 2011 numismatic sales is difficult because FY 2011 was an exceptional year driven by 

higher precious metal prices and volumes, the release of two popular American Silver Eagle Proof Coins, and early 

on-sale dates for our most popular numismatic coin sets. FY 2012 saw gold and platinum product revenues decrease 

$208.4 million, nearly 87 percent of our entire revenue decrease, due to lower unit sales. A later on-sale date for our 

core annual sets along with price reductions for some of those sets also contributed to the program revenue decrease 

compared to last year. Unit sales in FY 2012 were 5.6 million, down 23.3 percent from 7.3 million in the prior year. 

Total revenue was $481.2 million in 2012, down 33.3 percent from $721.7 million in FY 2011. FY 2012 margins 

were consistent with prior year, and we posted net income of $73.9 million, down 34.7 percent from $113.2 million 

in FY 2011. 

We are very pleased with the new products we brought to market in 2012 and are excited about our pipeline of new 

products for 2013. The American Eagle Silver products continue to be extremely popular and we offered them in 

several new sets in FY 2012 beginning with the American Eagle 25th Anniversary Set. We continued with a special 

American Eagle San Francisco Two-Coin Silver Proof Set, as well as the Making American History Coin and 

Currency Set, which features an American Eagle Silver Proof Coin and a specially serialized $5 Federal Reserve Note. 

Our new annual United States Mint Birth Set made its debut, and we plan to expand this line in the coming years. 

For 2013, we are aligning our offerings more closely with our customers’ interests and are researching a special 

product celebrating the 75th Anniversary of the United States Mint at West Point and a product honoring the life of 

President Theodore Roosevelt. Roosevelt had a special affinity for United States coinage, and the release of the 2013 

Presidential $1 Coin honoring him is also a perfect opportunity to showcase his many contributions. 

2
 
YOUR UNITED STATES MINT 

We are proud of the program accomplishments detailed above, but they are just part of the story of our dynamic and 

vibrant team of nearly 1,800 employees. In FY 2012, we made significant progress on our research and development 

initiative to examine the many possible metallic alternatives for our nation’s coinage. We established and staffed a 

separate and secure research and development laboratory within the Philadelphia Mint and equipped it with circulating 

coin production equipment. We have conducted two sets of trial strikes on a variety of metallic compositions and 

evaluated them for attributes such as hardness, ductility, corrosion and wear resistance, electromagnetic signature, 

availability of raw materials and cost. As this annual report goes to print, we are making final preparations for our 

first report to Congress under the “Coin Modernization, Oversight, and Continuity Act of 2010” on the results of our 

research and development efforts over the last 18 months. 

We celebrated our 220th anniversary as a government agency on April 2, 2012. As one of the oldest and most visible 

public institutions in government, we have a special role and rich history to share. On July 3, we dedicated a new 

self-guided public tour at the United States Mint at Philadelphia. Its opening culminated more than three years of 

planning and construction to make our exhibits more current, interactive, educational and engaging. Our public tour 

in Denver set attendance records in 2012. We continued our public outreach with lesson plans for teachers and we 

refreshed our web site with a new layout and content. We continued our sustainability initiatives and were one of 

just five government agencies that earned a Gold Award for our efforts to reduce power consumption in our electronic equipment. Additionally, the Headquarters building earned a Gold certification from the U.S. Green Building 

Council’s Leadership in Energy and Environmental Design (LEED) program. The certificate represents the building’s 

location, design, and construction meet top levels of environmentally sustainable development and operation. 

While discussing the contributions of our team, I would be remiss if I did not recognize our Protection team. This 

group quietly and professionally goes about its business providing security at all our sites and also performs one of 

our key organizational missions—safeguarding the gold and silver reserves of the United States. Our Protection 

officers are a key part of the fabric of the Mint, and we appreciate their dedication and service. 

We hope you share our pride in this open, transparent, professional, and venerable institution - and that you fi nd this 

annual report informative and helpful. The men and women of the United States Mint delivered outstanding results 

for our nation throughout 2012. It remains my honor to serve them and our nation in leading the United States Mint. 

Thanks to their foresight, hard work and commitment, we are well prepared for the opportunities and challenges ahead. 

Sincerely, 

Ri h d A P t A ti Richard A. Peterson, Acting Director

3
 
Front row, left to right: Annie Brown, Associate Director, Workforce Solutions; J. Marc Landry, Acting 

Associate Director of Manufacturing and Philadelphia Plant Manager; David Croft, Denver Plant Manager; 

Daniel P. Shaver, Chief Counsel; Beverly Ortega Babers, Chief Administrative Officer; Ellen McCullom, 

West Point Plant Manager; David Motl, Chief Financial Officer; Goutam Kundu, Chief Informational Officer 

Second row, left to right: Dennis O’Connor, Chief of Protection; Larry Eckerman, San Francisco Plant 

Manager; B.B. Craig, Associate Director of Sales and Marketing; Dick Peterson, Acting Director; Ron 

Harrigal, Acting Chief Engraver; Eric Anderson, Executive Secretary; William Norton, Director, Legislative 

and Intergovernmental Affairs Not pictured: Tom Jurkowsky, Director Public Affairs 

ORGANIZATIONAL PROFILE 

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

collectible coins and national medals, and to provide 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 Mint is the world’s largest coin manufacturer. Since Fiscal Year (FY) 1996, the Mint has 

operated under the Public Enterprise Fund (PEF). As authorized by Public Law 104-52 (codified at 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. Money 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 1,800 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 circulating, bullion, and numismatic coin and medal designs is performed in Philadelphia. 

Production of numismatic and bullion products 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. 

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TABLE OF CONTENTS
 

The United States Mint at a Glance 6
 

Management Discussion and Analysis 9
 

Message from the Chief Financial Officer 28
 

Independent Auditors’ Report 29
 

Financial Statements 31
 

Notes to Financial Statements 35
 

Required Supplementary Information 51
 

Other Accompanying Information 52
 

Independent Auditors’ Report on Internal Controls 53
 

Exhibit I – Status of Prior Year’s Signifi cant Deficiency 55
 

Independent Auditors’ Report on Compliance and Other Matters 56
 

Appendix I: FY 2012 Coin and Medal Products 58
 

5
 
4,970.0 

2,800.5 

2,912.4 

3,886.7 

3,435.4 

2008 2009 2010 2011 2012
 

1,294.5 

777.6 776.9 

618.2 

493.3 

2008 2009 2010 2011 2012 

3,471.4 

948.8 

1,694.8 

2,855.4 

2,460.9 

2008 2009 2010 2011 2012 

721.7 

557.2 

440.0 

413.1 

481.2 

2008 2009 2010 2011 2012
 

806.4 

501.6 

2008 2009

405.8 

527.8 

208.2 

 2010 2011 2012 

$1 Coin One-Cent 

$58.4 

Five-Cent 

Quarter-Dollar $50.3

$121.7 

Dime 


$97.1 

$165.8
 

THE UNITED STATES MINT AT A GLANCE
 

UNITED STATES MINT (MINT) Revenue (dollars in millions) Revenue by Line of Business 

(percent of total) The Mint is the world’s largest coin manufacturer. 

Our men and women manufacture and distribute Numismatic Bullion 14.0% 71.6%

Circulating 

14.4%

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. 

Revenue by Denomination 

Revenue (dollars in millions) (dollars in millions) CIRCULATING COINAGE 

coinage in the United States. The Mint’s highest 

priority is to efficiently and effectively mint 

and issue circulating coinage. 

The Mint is the sole manufacturer of legal tender 

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

The Mint is the world’s largest producer of gold 

and silver bullion coins. The bullion program
 

provides consumers a simple and tangible means 

to acquire precious metal coins. Investors purchase 

bullion coins for the intrinsic metal value and 

the United States Government’s guarantee of 

each coin’s metal weight, content, and purity. 

American 

Eagle Silver
 

$1,100.6
 

America the 

Beautiful Silver 

$14.3 

American 

Buffalo Gold 

$240.6 

American 

Eagle Gold 

$1,105.4 

Revenue by Program 

(dollars in millions) Revenue (dollars in millions) 

NUMISMATIC PRODUCTS Silver Annual Core Sets 

$150.5 $65.7

Quarters Products 

$18.9 

Presidential 

& First Spouse 

$35.4

Commemoratives 

$29.0 Gold & Platinum 

$161.5 Miscellaneous 

$20.2 

The Mint prepares and distributes numismatic 

products for collectors and those who desire 

high-quality versions of coinage. Most of our 

recurring products are required by federal statute. 

Others are required by individual public laws. 

SEIGNIORAGE AND NET INCOME 

Seigniorage is the difference between the face 

value and cost of producing circulating coinage. 

The Mint transfers seigniorage to the Treasury 

General Fund to help finance national debt. Net 

income from bullion and numismatic operations 

can also fund federal programs. 

Seigniorage and Net Income by Line of Business Seigniorage and Net Income (dollars in millions, before protection cost) (dollars in millions, before protection cost) 

Numismatic 

$73.9 $105.9 

$28.4
 

Circulating 

Bullion
 

6
 
475.0 388.0 

51.0 77.0 

2008 2009 2010 2011 2012 

750.0 

4,442.2 

1,994.1 

2,410.8 

3,480.9 3,227.2 

2008 2009 2010 2011 2012 

Gross Cost (dollars in millions) 2012 PERFORMANCE 

Revenue and net income was lower across all three business lines in FY 2012. Total 

revenue was $3,435.4 million, decreasing $1,534.6 from last year. Although circulating 

shipments increased 22.8 percent from last year, circulating revenue decreased. Selling, 

general and administrative (SG&A) expenses declined 4.6 percent from last year, and the 

cost of goods sold (COGS) decreased 28.2 percent to $3,079.5 million. Total seigniorage 

and net income, before Protection expenses, decreased 60.6 percent to $208.2 million 

compared to last year. 

Shipments 

(millions of coins) 

five-cent one-cent 1,006 

5,835 

quarter-dollar 

486 

dime 

1,658 

$1 coin 

97 

CIRCULATING COINAGE 

Circulating coin shipments increased 22.8 percent to 9,082 million coins in FY 2012. 

Shipments of all coin denominations except $1 coins increased from FY 2011, with 

quarters experiencing the strongest annual percentage growth. Despite the increased 

shipments, circulating revenue and seigniorage decreased compared to last year because 

$1 coin shipments ceased in December 2011. Circulating revenue decreased 36.5 percent 

to $493.3 million. Seigniorage decreased 69.6 percent to $105.9 million. Seigniorage per 

dollar issued decreased to $0.21 from $0.45 last year. 

Sales 

(millions of ounces) 

American 

Eagle Silver 

33.7 

American 

Buffalo Gold 

0.1 

America the 

Beautiful Silver 

0.4 

American 

Eagle Gold 

0.6 

BULLION COINS 

Demand for bullion coins slowed in FY 2012 after two years of unprecedented growth. 

The Mint sold 34.8 million ounces of gold and silver bullion coins in FY 2012, down 

10.4 million ounces from last year. Total bullion revenue decreased 29.1 percent to 

nearly $2.5 billion in FY 2012, because gold bullion revenue decreased $551.4 million 

and silver revenue decreased $459.1 million compared to last year. Bullion net income 

decreased 56.8 percent to $28.4 million. Bullion net margin decreased to 1.2 percent 

compared to 1.9 percent last year. 

Sales 

(thousands of units sold) 

Quarters Products 

Annual Core 737 

Set 1,627 

Presidential
 

& First Spouse
 

891
 

Commemoratives 

437 

Miscellaneous 

194 

1,568 Gold & Platinum 

105 

Silver 

NUMISMATIC PRODUCTS 

Numismatic sales decreased 23.3 percent to 5.6 million units in FY 2012. Numismatic 

revenues decreased 33.3 percent to $481.2 million mainly because of a decrease of 

$208.4 million in gold and platinum product revenue and a decrease of $41.7 million 

in annual core sets revenue. Numismatic net income decreased 34.7 percent to $73.9 

million. Numismatic net margin decreased to 15.4 percent compared to 15.7 percent 

last year. 

Transfer to the Treasury General Fund 

(dollars in millions) TRANSFER TO THE GENERAL FUND 

In FY 2012, the Mint made an on-budget transfer of $77 million to the Treasury General 

Fund. This transfer consisted of FY 2011 numismatic and bullion program earnings 

after protection costs. The Mint made no off-budget transfers to the General Fund this 

fiscal year. Instead, the Mint determined that all amounts in the PEF resulting from FRB 

receipts on the sale of circulating coins were required to mitigate the risks of future 

potential economic uncertainty, impacts to our circulating program from continued penny 

and nickel losses, and loss of revenue from the suspension of $1 coin production. 

7
 
2012 AMERICA THE BEAUTIFUL QUARTERS® PROGRAM 

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30,000 

25,000 

20,000 

15,000 

10,000 

5,000 

0 1972 1982 1992 2002 2012

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 FRB in quantities necessary to replenish inventory and fulfill the demand 

of commercial banks and other fi nancial institutions. These financial institutions then distribute coins to meet the 

demand 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. 

PRESIDENTIAL $1 COIN PROGRAM CHANGES 

Congress enacted the Presidential $1 Coin Act of 2005, Total Circulating Coin Production (coins in millions) 

which mandated the Mint issue four new Presidential 

$1 Coins each year beginning in 2007. As each coin 

was introduced, the FRB ordered enough to meet the 

initial demand of financial institutions. Demand for each 

new coin usually dropped soon after introduction and 

financial institutions ended up returning about 40 percent 

of the $1 coins to the FRB. By December 2011, the FRB 

vaults held more than 1.4 billion $1 coins. 

Coins stored in FRB vaults do not function as a means 

of conducting commercial transactions and are not a 

prudent use of taxpayer resources. Therefore, in December 2011, the Secretary of the Treasury suspended minting 

Presidential $1 Coins for circulation. 

The Mint continues to produce Presidential $1 Coins to meet public demand through the numismatic sales channel, 

as we do with the half-dollar coin. 

CIRCULATING RESULTS 

Demand for newly minted circulating coinage increased in FY 2012 compared with prior years. However, the mix 

of coin denominations shipped to the FRB changed, lowering circulating revenue and seigniorage generated from 

operations. Compared to last year, shipments increased for all coin denominations except $1 coins. 

The total number of circulating coins shipped to the FRB increased 22.8 percent to 9,082 million coins in FY 2012 

from 7,396 million pieces in FY 2011. Quarter shipments experienced the greatest annual growth, increasing 50.5 

percent from FY 2011. Penny shipments were 64.2 percent of total shipments, up from 58.0 percent of total 

shipments in FY 2011. 

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

2012 2011 2010 2009 2008 2011 to 2012

Value of Shipments $ 493.3 $ 776.9 $ 618.2 $ 777.6 $ 1,294.5 (36.5%)

Gross Cost $ 387.4 $ 428.1 $ 317.4 $ 349.8 $ 588.3 (9.5%)

 Cost of Goods Sold $ 325.8 $ 364.7 $ 239.2 $ 251.7 $ 491.3 (10.7%)

 Selling, General & Administrative $ 61.6 $ 63.4 $ 78.2 $ 98.1 $ 97.0 (2.8%)

Seigniorage $ 105.9 $ 348.8 $ 300.8 $ 427.8 $ 706.2 (69.6%) 

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

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The total dollar value of shipments decreased 36.5 percent to $493.3 million in FY 2012 from $776.9 million in 

FY 2011. This decrease in performance was expected with the suspension of minting the Presidential $1 Coin for 

circulation. In 2012, the $1 coin shipments contributed $97.1 million in revenue and $76.6 million in seigniorage 

compared to $467 million in FRB receipts and $382.8 million seigniorage in FY 2011. As a result, total circulating 

seigniorage decreased 69.6 percent to $105.9 million from $348.8 million last year. Seigniorage per dollar issued 

decreased to $0.21 in FY 2012 from $0.45 in FY 2011. 

SHIPMENTS, COSTS AND SEIGNIORAGE BY DENOMINATION 

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

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

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

2010 One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 Mutilated Total

 & Other

Coins Shipments 3,487 359 887 252 – 414 – 5,399 

Value of Shipments $ 34.9 $ 17.9 $ 88.7 $ 63.2 $ – $ 413.5 $ – $ 618.2 

Gross Cost $ 62.3 $ 33.1 $ 50.6 $ 32.2 $ 0.1 $ 130.7 $ 8.4 $ 317.4 

Cost of Goods Sold $ 62.3 $ 33.1 $ 40.8 $ 24.6 $ 0.1 $ 69.9 $ 8.4 $ 239.2 

 Selling, General & Administrative $ – $ – $ 9.8 $ 7.6 $ – $ 60.8 $ – $ 78.2 

Seigniorage $ (27.4) $ (15.2) $ 38.1 $ 31.0 $ (0.1) $ 282.8 $ (8.4) $ 300.8 

Seigniorage per $1 Issued $ (0.79) $ (0.85) $ 0.43 $ 0.49 $ – $ 0.68 $ – $ 0.49

10
 
Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Dollars in millions 

Nickel 

Penny 

$77 

$67 

$83 

$(51) 

$(58) 

2012 

Circulating Seigniorage by Year


Shows seigniorage generated by denomination for the last seven years. 

COGS decreased 10.7 percent to $325.8 million in FY 2012 from $364.7 million in FY 2011. A component of this 

was a decrease in the market prices of copper, nickel, and zinc. Average daily market prices for copper and zinc 

decreased 13.8 percent and 15.8 percent, respectively, from FY 2011 to FY 2012, while the average daily market 

price for nickel decreased 26 percent over the same time period. The Mint saved about $41 million in FY 2012 due 

to the decreased metal costs compared to last year. Apart from metals, plant expenses at Philadelphia and Denver 

decreased by about 3 percent, even though our circulating coinage shipments increased by 22.8 percent. The Mint 

achieved this reduction largely due to decreased depreciation, salaries and benefi ts, and energy expenses.

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

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SG&A expenses decreased by 2.8 percent to $61.6 million in FY 2012 from $63.4 million in FY 2011. This was 

primarily due to a 30.8 percent reduction in expenses for $1 coin programs and manufacturing administration. More 

SG&A expenses were absorbed by the penny, nickel, dime, and quarter coins because we suspended production 

of $1 coins for circulation. 

FY 2012 unit costs decreased for all denominations compared to last year. The unit cost for both penny and nickel 

denominations remained above face value for the seventh consecutive fiscal year. Although there was higher demand 

for penny and nickel coins, lower unit costs generated a smaller FY 2012 loss ($109.2 million) for these denominations compared to FY 2011 ($116.7 million). 

UNIT COST OF PRODUCING AND DISTRIBUTING COINS BY DENOMINATION 

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

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 Half-Dollar $1 

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 

2010 One-Cent Five-Cent Dime Quarter-Dollar Half-Dollar $1 

Cost of Goods Sold $ 0.0176 $ 0.0916 $ 0.0454 $ 0.0956 $ – $ 0.1659 

Selling, General & Administrative $ – $ – $ 0.0110 $ 0.0302 $ – $ 0.1469 

Distribution to FRB $ 0.0003 $ 0.0006 $ 0.0005 $ 0.0020 $ – $ 0.0029 

Total Unit Cost $ 0.0179 $ 0.0922 $ 0.0569 $ 0.1278 $ – $ 0.3157 

Note: Before FY 2011, SG&A costs were allocated based on gross margin. Little or no allocated SG&A expense was applied to the penny or nickel, 

which generated negligible or negative gross margins. This policy changed to allocate SG&A expenses based on the costs to manufacture these products. 

12
 
ALTERNATIVE METAL RESEARCH AND DEVELOPMENT 

Metal expenses are the largest portion of circulating production cost. On December 14, 2010, President Obama 

signed into law the Coin Modernization, Oversight, and Continuity Act of 2010 (Public Law 111-302) to provide the 

Secretary of the Treasury research and development authority for alternative metallic materials for circulating coins. 

To ensure an independent assessment, the Mint contracted with an external firm in FY 2012 to perform research and 

development on various options, ultimately testing more than 30 different types of alloys. Congress will receive a 

report in December 2012 on the Mint’s findings from this first round of research. 

CIRCULATING PRODUCTION INITIATIVES 

In FY 2012, the Mint reduced costs of circulating coinage production as Denver and Philadelphia went from three 

shifts to two shifts. This change is projected to save an estimated $2 million a year on labor and utilities costs. 

In 2011, the Philadelphia and Denver facilities changed die and blank processing to improve the quality of coins and 

make dies last longer. As a result, die usage decreased, saving the Mint approximately $312,000. In FY 2012, the 

Denver facility implemented a program to recycle the carbide inserts of die collars. Die inserts form the edge of the 

coin as it is stamped in the collars. Instead of discarding worn ones, they can be reused on any coin that is a larger 

size. This recycling program was expanded to the San Francisco facility. 

13
 
2012 AMERICAN BUFFALO ONE OUNCE GOLD PROOF COIN 

14 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

50 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

18.4 

27.6 

35.8 

45.2 

34.8 

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 

 

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 from 

authorized purchasers as part of an investment portfolio. 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 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 coins at the prevailing market price, adjusting for any premium the authorized purchaser applies. 

BULLION COIN RESULTS 

Demand for bullion coins fell in FY 2012 after unprecedented 

highs in FY 2010 and FY 2011. The Mint sold 34.8 million ounces 

of gold and silver bullion coins in FY 2012, compared to 45.2 

million ounces in FY 2011, a decrease of 23 percent. The average 

spot price of gold increased 11.3 percent while silver decreased 8.3 

percent compared to last year. Accordingly, total bullion revenue 

was $2,460.9 million in FY 2012, down $1,010.5 million (29.1 

percent) from $3,471.4 million in FY 2011. 

Revenue from American Eagle Silver Bullion Coin sales dropped 

24.8 percent this year, to $1,100.6 million in FY 2012 from 

$1,464.0 million in FY 2011. Sales of fi ve-ounce America the 

Beautiful Silver Bullion Coins generated $14.3 million in revenue 

compared to $110 million in revenue in FY 2011. The Mint sold 

45.5 percent fewer ounces of American Eagle Gold Bullion Coins, 

resulting in revenue declining (34.6 percent) to $1,105.4 million 

from $1,689.5 million in FY 2011. American Buffalo Gold Bullion 

Coin revenue grew 15.7 percent from last year. In 2012, these 

products were available throughout the entire fiscal year, but in 

FY 2011, they only became available in March. 

BULLION COINS (dollars in millions) 

Total Bullion Coin Sales (ounces sold in millions) 

% Change 

2012 2011 2010 2009 2008 2011 to 2012

Sales Revenue $ 2,460.9 $ 3,471.4 $ 2,855.4 $ 1,694.8 $ 948.8 (29.1%)

Gross Cost $ 2,432.5 $ 3,405.6 $ 2,800.2 $ 1,662.1 $ 931.0 (28.6%)

 Cost of Goods Sold $ 2,407.6 $ 3,378.8 $ 2,778.4 $ 1,650.0 $ 922.6 (28.7%)

 Selling, General & Administrative $ 24.9 $ 26.8 $ 21.8 $ 12.1 $ 8.4 (7.1%)

Net Income $ 28.4 $ 65.8 $ 55.2 $ 32.7 $ 17.8 (56.8%) 

Bullion Net Margin 1.2% 1.9% 1.9% 1.9% 1.9% 

15
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bullion coin net income decreased to $28.4 million in FY 2012, down 56.8 percent from $65.8 million in FY 2011. 

The bullion net margin decreased from 1.9 percent to 1.2 percent as the decrease in revenue was greater than the 

decrease in cost. Bullion COGS, primarily reflecting the metal market prices of coins sold, decreased 28.7 percent 

to $2,407.6 million in FY 2012 from $3,378.8 million last year. Bullion SG&A cost decreased 7.1 percent to 

$24.9 million from $26.8 million in FY 2011, primarily because of a 9.9 percent decrease in general and 

administrative expenses. 

BULLION COINS REVENUE, COST AND NET INCOME BY PROGRAM 

(dollars in millions) 

2012 American 

Eagle Gold 

American 

Eagle Silver 

American 

Buffalo Gold 

America the 

Beautiful Silver 

Total 

Sales Revenue 

Gross Cost

Cost of Goods Sold

 Selling, General & Administrative 

Net Income 

Bullion Net Margin 

$ 1,105.4 

$ 1,077.4 

$ 1,075.1 

$ 2.3 

$ 28.0

2.5% 

$ 1,100.6 

$ 1,105.0 

$ 1,083.0 

$ 22.0 

$ (4.4)

(0.4%) 

$ 240.6 

$ 235.3 

$ 234.9 

$ 0.4 

$ 5.3

2.2% 

$ 14.3 

$ 14.8 

$ 14.6 

$ 0.2 

$ (0.5)

(3.5%) 

$ 2,460.9 

$ 2,432.5 

$ 2,407.6 

$ 24.9 

$ 28.4

1.2% 

2011 American 

Eagle Gold 

American 

Eagle Silver 

American 

Buffalo Gold 

America the 

Beautiful Silver 

Total 

Sales Revenue 

Gross Cost

Cost of Goods Sold

 Selling, General & Administrative 

Net Income 

Bullion Net Margin 

$ 1,689.5 

$ 1,645.3 

$ 1,642.3 

$ 3.0 

$ 44.2

2.6% 

$ 1,464.0 

$ 1,450.4 

$ 1,428.0 

$ 22.4 

$ 13.6

0.9% 

$ 207.9 

$ 202.9 

$ 202.6 

$ 0.3 

$ 5.0

2.4% 

$ 110.0 

$ 107.0 

$ 105.9 

$ 1.1 

$ 3.0

2.7% 

$ 3,471.4 

$ 3,405.6 

$ 3,378.8 

$ 26.8 

$ 65.8

1.9% 

2010 American 

Eagle Gold 

American 

Eagle Silver 

American 

Buffalo Gold 

Total 

Sales Revenue 

Gross Cost

Cost of Goods Sold

 Selling, General & Administrative 

Net Income 

Bullion Net Margin 

$ 1,710.8 

$ 1,675.5 

$ 1,663.5 

$ 12.0 

$ 35.3

2.1% 

$ 659.9 

$ 646.4 

$ 641.7 

$ 4.7 

$ 13.5

2.0% 

$ 484.7 

$ 478.3 

$ 473.2 

$ 5.1 

$ 6.4

1.3% 

$ 2,855.4 

$ 2,800.2 

$ 2,778.4 

$ 21.8 

$ 55.2

1.9% 

Both American Eagle Silver Bullion Coin sales and America the Beautiful Silver Bullion Coin sales yielded 

operating losses in FY 2012. The $4.4 million loss from American Eagle Silver Bullion Coin sales in FY 2012 

was primarily due to the decision to offer American Eagle Silver Bullion Coin production at San Francisco to meet 

demand. American Eagle Silver Bullion Coins carried a large portion of San Francisco overhead expenses during 

periods of low numismatic sales. As demand decreased, spreading these additional costs to the 18.4 percent fewer 

ounces sold during FY 2012 compared to last year. 

The America the Beautiful Bullion Coin Program generated a loss of $0.5 million in FY 2012. After the program 

launched in calendar year 2010, initial demand exceeded our production for those 2010 coins. In 2011, we increased 

production to 126,700 coins per design and sold out the first two design issuances. Demand for the three subsequent 

2011 designs, however, received substantially fewer orders, leaving a significant excess inventory once the new 

2012 designs were launched. The Mint scaled back production in 2012 to more closely reflect demand, however the 

unsellable 2011 coins remained. In FY 2012, the Mint recorded a one-time expense to write down approximately 

842,000 ounces of this unsellable inventory, impacting the operating results for this program by $0.7 million. 

16
 
Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 

PALLADIUM BULLION COINS 

On December 14, 2010, President Obama signed the American Eagle Palladium Bullion Coin Act of 2010 (Public 

Law 111-303). This legislation authorizes the Secretary of the Treasury to mint and issue a $25 coin weighing one 

troy ounce and containing .9995 fine palladium. The legislation specifies that a reputable independent third-party 

will analyze whether there is adequate demand for palladium bullion coins, and if so, whether the coins could be 

minted at no net cost to taxpayers. If the third party’s marketing study demonstrated a palladium bullion coin 

program would meet these criteria, then the Mint would be mandated to commence a program within one year. 

The Mint contracted with an independent research firm to conduct the study and will report to the Secretary of the 

Treasury and Congress on the findings in FY 2013. 

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

17
 
2012 STAR-SPANGLED BANNER COMMEMORATIVE COIN PROGRAM 

18 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012 American Eagle Silver 

Proof One Ounce Coin 

2012 Proof Set 

2012 Silver Proof Set 

2012 Uncirculated Set 

2011 Proof Set 

548 

303 

297 

246 

722 

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 decreased 23.3 percent to 5.6 million Top Selling Numismatic Products 

units in FY 2012 compared to 7.3 million units in FY 2011. Numis­ (units sold in thousands)

matic revenue decreased 33.3 percent to $481.2 million in FY 2012 

from $721.7 million in FY 2011. 

There are two main reasons for lower sales: 

• Gold and platinum proof coin product revenue decreased $208.4 

million compared to last year. Sales of 2010 numismatic gold 

coin products last year were atypically high, because of pent-up 

demand after they were not offered in FY 2010. There was 

no comparable situation early in this fiscal year as the 2011 gold coins were sold throughout last year. We sold 

142,830 fewer gold and platinum coin products this year than last year. 

• Annual core numismatic set revenues decreased $41.7 million compared to last year mainly because products 

went on sale later this year than last year. We released the 2012 United States Mint Proof Set®, 2012 United States 

Mint Silver Proof Set®, and 2012 United States Mint Uncirculated Coin Set® in the third quarter, rather than in the 

second quarter as we did in 2011. 

The 2012 American Eagle One Ounce Silver Proof Coin, the 2011 American Eagle 25th Anniversary Silver Coin 

Set, the 2011 American Eagle Gold Proof Four-Coin Set, and the 2012 American Buffalo One Ounce Gold Proof 

Coin generated the most numismatic revenue in FY 2012. The 2012 American Eagle One Ounce Silver Proof and 

the 2012 United States Mint Proof Set® were the most popular sellers (per unit) this year. 

NUMISMATIC (dollars in millions) 

% Change 

2012 2011 2010 2009 2008 2011 to 2012

Sales Revenue $ 481.2 $ 721.7 $ 413.1 $ 440.0 $ 557.2 (33.3%)

Gross Cost $ 407.3 $ 608.5 $ 363.3 $ 398.9 $ 474.8 (33.1%)

 Cost of Goods Sold $ 346.1 $ 543.8 $ 298.6 $ 329.7 $ 388.1 (36.4%)

 Selling, General & Administrative $ 61.2 $ 64.7 $ 64.7 $ 69.2 $ 86.7 (5.4%)

Net Income & Seigniorage $ 73.9 $ 113.2 $ 49.8 $ 41.1 $ 82.4 (34.7%)

Numismatic Net Margin 15.4% 15.7% 12.1% 9.3% 14.8% 

Seigniorage Portion $ 22.9 $ 9.8 $ 12.0 $ 19.3 $ 22.5 (133.7%) 

Seigniorage portion results from the sale of circulating coins (boxes, bags, and rolls) directly to the public through the numismatic channels. 

19
 
2012 Silver Coin Total 

Products 

Annual

Core Sets

Gold and Platinum 

Coin Products 

Quarter 

Products 

Presidential and 

First Spouse Medals 

Commemorative Miscellaneous

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 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numismatic program net income and seigniorage decreased 34.7 percent to $73.9 million in FY 2012 from $113.2 

million in FY 2011. Numismatic COGS decreased 36.4 percent to $346.1 million from $543.8 million in FY 2011 

because sales volumes (and the corresponding revenue) decreased. COGS decreased slightly relative to revenue, 

comprising 71.9 percent of numismatic revenue in FY 2012 compared with 75.3 percent last year. SG&A expenses 

decreased $3.5 million compared to last year, mainly due to a 56.3 percent decrease in advertising and promotional 

spending. Numismatic net margin decreased to 15.4 percent in FY 2012 from 15.7 percent in FY 2011 because 

SG&A expenses comprised a greater percent of sales revenue. Because fewer units were sold and revenue was 

lower, SG&A was 12.7 percent of numismatic revenues compared to 9 percent last year. 

Annual core sets generated a loss of $2.7 million in FY 2012 as we offered some of our annual core set products 

at reduced prices to encourage greater price accessibility for a broader range of interested collectors. 

NUMISMATIC REVENUE, COST AND NET INCOME OR SEIGNIORAGE BY PROGRAM 

(dollars in millions) 

2011 Gold and Platinum Silver Coin Annual Quarter Presidential and Commemorative Miscellaneous Total 

Coin Products Products Core Sets Products First Spouse Medals 

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 

2010 Gold and Platinum Silver Coin Annual Quarter Presidential and Commemorative Miscellaneous Total 

Coin Products Products Core Sets Products First Spouse Medals 

Sales Revenue $ 213.8 $ – $ 94.5 $ 23.3 $ 24.1 $ 20.1 $ 37.3 $ 413.1 

Gross Cost $ 195.4 $ 1.3 $ 83.4 $ 18.0 $ 15.3 $ 18.4 $ 31.5 $ 363.3 

Cost of Goods Sold $ 172.9 $ 1.3 $ 71.4 $ 14.7 $ 11.2 $ 14.9 $ 12.2 $ 298.6 

Selling, General

 & Administrative $ 22.5 $ – $ 12.0 $ 3.3 $ 4.1 $ 3.5 $ 19.3 $ 64.7 

Net Income 

& Seigniorage $ 18.4 $ (1.3) $ 11.1 $ 5.3 $ 8.8 $ 1.7 $ 5.8 $ 49.8

Numismatic 

Net Margin 8.6% 11.7% 22.7% 36.5% 8.5% 15.5% 12.1% 

Seigniorage Portion $ – $ – $ – $ 4.2 $ 5.8 $ – $ 2.0 $ 12.0 

20
 
NEW PRODUCT HIGHLIGHTS 

Several limited-edition products were offered this year. The Mint sold an American Eagle 25th Anniversary Silver 

Coin Set with five one-ounce silver numismatic coins minted in West Point and San Francisco. It sold out within 

five hours, contributing $30 million in revenue. The American Eagle San Francisco Two-Coin Silver Proof Set sold 

179,921 units between June 7 and July 5. This product was produced to true demand as orders were taken prior to 

production, rather than the Mint estimating a production run and then offering the sets for sale. 

Another new product, the Making American History Coin and Currency Set, celebrated the Mint’s 220-year 

anniversary and the Bureau of Engraving and Printing’s 150-year anniversary. It included a 2012 American Eagle 

One Ounce Silver Proof Coin with an “S” mint mark and a Series 2009 $5 note. It sold 40,929 units and contributed 

$3.0 million in revenue. The 2012 United States Mint Birth Set, a new annual set designed to mark the arrival of a 

baby, contributed revenue of $0.6 million in FY 2012. 

The Mint sold America the Beautiful Quarters® Program collectible bags and rolls with coins minted at San 

Francisco. These circulating-quality coins are the first to be produced in San Francisco since 1980. These “S” mint 

mark quarters were sold solely to the public through numismatic channels, rather than issued as circulating coins. 

For those collecting Presidential $1 Coins, a circulating quality four-coin set with either a Philadelphia or Denver 

mint-mark was available; in previous years, they were produced only in proof or uncirculated quality sets. 

COMMEMORATIVE PRODUCTS 

Congress passes legislation authorizing commemorative coins or commemorative medals to honor people, places, 

events or other subjects, and the President signs the legislation into law. The price of these coins and medals includes 

a surcharge authorized to be paid to a designated recipient organization. We launched two commemorative coin 

programs in FY 2012: the 2012 Star-Spangled Banner Commemorative Coin Program and the 2012 Infantry Soldier 

Silver Dollar. 

Three other commemorative products were available for sale. The United States Army Commemorative Coin 

Program generated $1.8 million in revenue and $230,675 in eligible surcharges for the recipient organization, the 

Army Historical Foundation. The Medal of Honor Commemorative Coin Program generated $2.2 million in revenue 

and $268,570 in eligible surcharges for the recipient organization, the Congressional Medal of Honor Foundation. 

Additionally, the September 11 National Medal generated $0.9 million in revenue and $119,360 in eligible surcharges, 

authorized to be paid to the National September 11 Memorial & Museum at the World Trade Center. 

CONGRESSIONAL MEDALS 

We prepared and struck three Congressional Gold Medals in FY 2012: the Montford Point Marines Congressional 

Gold Medal, the New Frontier Congressional Gold Medal and the Nisei Soldiers of World War II Congressional 

Gold Medal. We produced and sold bronze duplicates of these medals. 

IMPROVING 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 90 percent in FY 2012, down from 91.7 percent in FY 2011. The number 

of customers satisfied with the Mint as a provider of numismatic items has fluctuated over the past few years, largely 

based on our ability to offer popular products and process orders seamlessly during periods of peak demand. 

We continuously look for effective ways to improve the customer experience, including the order management 

system. The completed system will be capable of successfully processing orders during peak demand periods, 

relieving a point of stress and frustration for customers and the Mint alike. 

21
 
NEW FRONTIER BRONZE MEDAL 

22
 
 

14 

12 

10 

8 

6 

4 

2 

0 

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

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 

Rate of Injury and Illness Cases per 100 Full-Time Workers Injury and illness rates in our manufacturing facilities 

have risen over the past two years, but are still lower 

than industry standards. In FY 2012, the recordable 

injury and illness case rates rose 27 percent to 3.5 

from 2.74 in FY 2011. We did not meet our goal of 

3.24, but we were below the average rate of 7.8 for 

forging and stamping manufacturers. 

Material handling is the primary cause of injuries. 

Strains, sprains and tears, typically an indication of 

ergonomic hazards, accounted for the majority of 

injuries in FY 2012. We created management safety 

steering teams to continually reinforce a culture of 

operating safely for all Mint employees. We are launching facility-specific leading measures to gain a more detailed 

understanding of the drivers of our recordable safety incidents. 

EMPLOYEE DEVELOPMENT 

The Mint is committed to improving employee development and training, and has created several programs to 

prepare employees for the next step in his or her career. Two programs, the Leadership Development Program and 

the Employee Development Program, focus on expanding skills so employees improve their performance in the 

Mint, as well as grow their transferable skill set. 

In addition, some Mint facilities have expanded training for those in manufacturing. Employees participating in 

San Francisco’s Operator Certification and Apprenticeship Program (OCAP) can become certified as metal-forming 

machine operators, material treatment machine operators, and heat treaters and die finishers. All new San Francisco 

Coining Division employees are required to become OCAP certified, while those whose employment preceded the 

implementation of OCAP may voluntarily participate. 

The Mint also collaborated with the Bureau of Engraving and Printing to offer a Supervisory Skill Building 

Program. This training was a result of the Strategic Alignment Initiative, a partnership between the two bureaus. 

Over the course of several months, through a combination of in-person, on-line training and video conferencing 

sessions, supervisors learned and practiced how to handle conflict competently, how to motivate staff, and how to 

create a positive and productive performance culture. 

WORK/LIFE BALANCE AND TECHNOLOGY 

One of the ways the Mint promotes work-life balance is through its telework policy. In FY 2011, the policy was 

updated to meet the requirements of the Telework Enhancement Act of 2010 (Public Law 111-292). This Act has 

three objectives: to improve continuity of operations, to promote management effectiveness and to enhance 

work-life balance. As a result, 146 employees now have telework agreements, compared to 120 in FY 2011. 

23
 
SUSTAINABILITY EFFORTS 

The Mint has concentrated on making substantial changes to our buildings and production operations to lessen our 

carbon footprint. This year, the headquarters building received a Gold Level LEED Certification; the Mint received 

the Federal Electronics Challenge Gold Award; and the Denver Mint received the Gold Award from the Metro 

Wastewater Reclamation District. 

Since 2009, the Mint has reduced greenhouse gas emissions by 36 percent, exceeding Treasury’s goal of 33 percent 

by 2020. In the past three years each location has made changes that support the sustainability effort. The Denver 

Mint purchases renewable energy, San Francisco installed a green roof and developed a van pool program, and Fort 

Knox installed a geothermal heat pump. 

In 2012, the Mint initiated several more sustainability projects. In Philadelphia, the Mint is working with an energy 

service company to implement a plan to reduce energy intensity by 27 percent. The Denver and Philadelphia Mints 

implemented a “sleep mode” on their circulating coin presses to reduce total energy use by 2 percent. Philadelphia, 

Denver, and San Francisco operate with two shifts, rather than three, which reduces energy use by allowing us to 

turn off building equipment when not in use. The West Point facility has been accepted into the Department of 

Energy’s Superior Energy Performance program, a multi-year program which provides industrial facilities with 

a plan for improving energy efficiency while staying competitive. 

We are committed to changing the way we operate – not only to save energy, but also to remain cost efficient. 

24
 
ANALYSIS OF SYSTEMS, CONTROLS AND LEGAL COMPLIANCE 

The United States 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 United States 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 United States Mint responsibilities, we provide herein unqualified assurance that the above listed management control objectives, taken as a whole, were achieved by our organization during FY 2012. Specifi cally, 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 United States 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 unqualified assurance that internal controls over financial reporting as 

of June 30, 2012, are operating effectively and no material weaknesses were found in the design or operation of the 

internal controls over fi nancial reporting. 

The 2007 Native American $1 Coin Act (Public Law 110-82), as codified at 31 U.S.C. § 5112(r)(5), requires that at 

least 20 percent of all $1 coins minted and issued in any year are Native American $1 Coins. Unfortunately, in 2010 

and 2011, even though the United States Mint minted Native American $1 Coins in amounts greater than 20 percent 

of the total number of all $1 coins minted, it was not able to meet the 20 percent issuance requirement in those years. 

25
 
In addition, the Mint is committed to maintaining effective internal control, as demonstrated by the following actions: 

• Annual audits of the United States Mint’s financial statements pursuant to the Chief Financial Offi cers’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 fi nancial statements. 

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

include analysis and evaluation of performance measures. 

• The development, tracking, and closure of corrective actions identified in the Financial Statement Audit and OMB 

Circular A-123 Assessment. 

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

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

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

of 1987 (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 United States 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. 

26
 
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 fi nancial 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. 

27
 
MESSAGE FROM THE CHIEF FINANCIAL OFFICER: 

As the CFO, I am pleased to present the Mint’s financial statements as part of the FY 

2012 Annual Report. It is our priority to report accurate financial data while objectively 

and consistently executing our fiscal responsibilities in a diligent and effi cient manner. 

For FY 2012, our independent auditors rendered an unqualified opinion on these 

fi nancial statements. 

The Mint faced a number of fiscal challenges in FY 2012, as revenue and net income 

were lower across all three business lines. In the circulating program, seigniorage was 

down as we suspended minting and issuing the Presidential $1 Coin. We met the FRB’s 

orders for pennies and nickels but for the seventh consecutive year these denominations 

were produced at a loss. Demand for numismatic products decreased and the demand for 

bullion products continued to be volatile. The Mint made no off-budget transfers to the 

General Fund this fiscal year. Instead, the Mint determined that all amounts in the PEF resulting from FRB receipts 

on the sale of circulating coins were required to mitigate the risks of future potential economic uncertainty, impacts 

to our circulating program from continued penny and nickel losses, and loss of revenue from the suspension 

of $1 circulating coin production. The transfer to the Treasury General Fund was $77 million. 

In addition to limiting the transfer to the general fund, the Mint continued to focus on reducing its operating costs in 

FY 2012. Our efforts included in-depth reviews of budgets, contracts, resources, and inventories. As a result of the 

Mint’s efforts, general and administrative expenses have decreased 22.5 percent and cost of mint production has 

decreased 4.3 percent from FY 2009 levels. In addition, this past year our inventories were reduced by $139.7 

million, generating additional operating cash. 

The Mint’s fiscal responsibilities include serving as custodians for the majority of the nation’s gold and silver 

reserves. In this role, we completed a successful inventory of the Department of the Treasury gold bars and coins 

held at the FRB in New York. The inventory was conducted by the Mint with the assistance of FRB. 

In FY 2012, the Mint conducted a comprehensive assessment of the effectiveness of internal controls over financial 

reporting. Based on the results of this review, we can provide unqualified assurance that internal controls over 

financial reporting are operating effectively in accordance with Office of Management and Budget Circular A-123. 

The statements presented in this report are in compliance with accounting standards issued by the Federal Accounting Standards Advisory Board (FASAB). The FASAB is designated by the American Institute of Certifi ed Public 

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

establishment of the United States Generally Accepted Accounting Principles. 

The Mint has experienced some operational changes in the last few fiscal years. I am glad to report that we have met 

these challenges and developed strategies to operate more effectively and efficiently. I am committed to ensuring 

that the Mint continually identifies ways to cut costs and operate in the most cost-effective manner possible. 

Sincerely, 

David Motl 

United States Mint
 

Chief Financial Officer
 

David Motl, Chief Financial Officer 

28
 
Independent Auditors’ Report 

Inspector General 

United States Department of the Treasury 

Acting Director 

United States Mint: 

We have audited the accompanying balance sheets of the United States Mint as of September 30, 2012 

and 2011, and the related statements of net cost, and changes in net position, and combined statements 

of budgetary resources (hereinafter referred to as “financial statements” or “basic fi nancial statements”) 

for the years then ended. These financial statements are the responsibility of the United States Mint’s 

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

We conducted our audits in accordance with auditing standards generally accepted in the United States 

of America; the standards applicable to financial audits contained in Government Auditing Standards, 

issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) 

Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, as amended. Those standards 

and OMB Bulletin No. 07-04 require that we plan and perform the audits to obtain reasonable assurance 

about whether the financial statements are free of material misstatement. An audit includes consideration 

of internal control over financial reporting as a basis for designing audit procedures that are appropriate in 

the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the United States 

Mint’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also 

includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial 

statements, assessing the accounting principles used and significant estimates made by management, 

as well as evaluating the overall financial statement presentation. We believe that our audits provide 

a reasonable basis for our opinion. 

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

position of the United States Mint as of September 30, 2012 and 2011, and its net costs, changes in net 

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

accounting principles. 

29
 
As discussed in Note 1 to the financial statements, the United Stated Mint changed its presentation for reporting the 

Combined Statement of Budgetary Resources in fiscal year 2012, based on new reporting requirements under OMB 

Circular No. A-136, Financial Reporting Requirements. As a result, the United States Mint’s Statement of Budgetary 

Resources for fiscal year 2011 has been reclassified to conform to the current year presentation. 

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

and Analysis, and Required Supplementary Information sections be presented to supplement the basic financial 

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

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

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

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

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

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

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

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

limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 

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

information in the Acting Director’s Letter, Organizational Profile, The United States Mint at a Glance, Message 

from the Chief Financial Offi cer, and Other Accompanying Information and Appendix 1: FY 2012 Coin and Medal 

Products is presented for purposes of additional analysis and is not a required part of the basic fi nancial statements. 

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

statements, and accordingly, we do not express an opinion or provide any assurance on it. 

In accordance with Government Auditing Standards, we have also issued our reports dated December 3, 2012, 

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

compliance with certain provisions of laws, regulations, and contracts and other matters. The purpose of those 

reports is to describe the scope of our testing of internal control over financial reporting and compliance and 

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

compliance. Those reports are an integral part of an audit performed in accordance with Government Auditing 

Standards and should be read in conjunction with this report in assessing the results of our audits. 

December 3, 2012 

30
 
 2011 

 

 Accounts Receivable, Net (Note 4) 

 Advances and Prepayments (Note 5) 

 

 Accounts Receivable, Net (Note 4) 

 

 

 

 Advances and Prepayments (Note 5) 

 

 

 

 Accrued Workers’ Compensation and Benefits 

 

 

 Accounts Payable 

 

 Accrued Payroll and Benefits 

 

 

 

 

 

 

2012 

(dollars in thousands) 

Assets 

Intragovernmental:

 Fund Balance with Treasury (Note 3) $ 964,517 $ 752,742 

– 721 

3,232 2,046 

Total Intragovernmental Assets 967,749 755,509

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

12,093 18,254

 Inventory (Notes 7 and 20) 361,612 501,287

 Supplies 17,678 17,280

 Property, Plant and Equipment, Net (Note 8) 182,527 185,701 

1 1 

Total Non-Intragovernmental Assets $ 11,067,651 $ 11,216,263 

Total Assets (Notes 2 and 14) $ 12,035,400 $ 11,971,772 

Heritage Assets (Note 9) 

Liabilities 

Intragovernmental: 

 Accounts Payable $ 5,641 $ 5,890 

 9,110 9,377 

Total Intragovernmental Liabilities 14,751 15,267

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

21,543 44,545

 Surcharges Payable (Note 3) 11,179 11,673 

18,374 18,381

 Other Actuarial Liabilities 28,525 27,467

 Unearned Revenue 1,541 16,953

 Deposit Fund Liability (Notes 10 and 12) 94 94 

Total Non-Intragovernmental Liabilities $ 10,574,996 $ 10,612,853 

Total Liabilities (Notes 10 and 14) $ 10,589,747 $ 10,628,120 

Commitments and Contingencies (Notes 12 and 13) 

Net Position 

Cumulative Results of Operations - Earmarked Funds (Note 14) 1,445,653 1,343,652 

Total Liabilities and Net Position $ 12,035,400 $ 11,971,772 

DEPARTMENT OF THE TREASURY UNITED STATES MINT
 

BALANCE SHEETS
 

As of September 30, 2012 and 2011 

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

31
 
 2011 

 

 Less Earned Revenue 

 

 

 

 

 

 

 

 

2012 

(dollars in thousands) 

Numismatic Production and Sales

 Gross Cost $ 2,832,988 $ 4,009,361

(2,912,432) (4,178,594)
 

Net Program Cost (Revenue) (79,444) (169,233)
 

Numismatic Production and Sales of Circulating Coins

 Gross Cost 6,765 4,685

 Less Earned Revenue (Note 16) (6,765) (4,685) 

Net Program Cost – – 

Circulating Production and Sales

 Gross Cost 387,434 428,130

 Less Earned Revenue (Note 16) (387,434) (428,130) 

Net Program Cost – – 

Net Program Cost (Revenue) Before Protection of Assets (79,444) (169,233) 

Protection of Assets

 Protection Costs 42,195 41,570

 Less Earned Revenue – – 

Net Cost of Protection Assets 42,195 41,570 

Net Cost (Revenue) from Operations (Notes 14 and 15) $ (37,249) $ (127,663) 

DEPARTMENT OF THE TREASURY UNITED STATES MINT 

STATEMENTS OF NET COST 

For the years ended September 30, 2012 and 2011 

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

32
 
 2011 

 

 

 

 

2012 

(dollars in thousands)

Cumulative Results of Operations 

Net Position, Beginning of Year - Earmarked Funds (Note 14) $ 1,343,652 $ 895,071 

Financing Sources: 

 Transfers to the Treasury General Fund On-Budget (Note 19) (77,000) (51,000)

 Other Financing Sources (Seigniorage) (Note 16) 128,709 358,577

 Imputed Financing Sources (Note 11) 13,043 13,341 

Total Financing Sources 64,752 320,918 

Net Revenue from Operations (Note 15 and 21) 37,249 127,663 

Net Position, End of Year - Earmarked Funds (Note 14) $ 1,445,653 $ 1,343,652 

DEPARTMENT OF THE TREASURY UNITED STATES MINT
 

STATEMENTS OF CHANGES IN NET POSITION
 

For the years ended September 30, 2012 and 2011 

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

33
 
 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012

(dollars in thousands) 

Budgetary Resources: 

Unobligated balance, brought forward, October 1 $ 413,094 $ 110,993 

Recoveries of prior-year unpaid obligations 51,025 43,873 

Other changes in unobligated balance (77,000) (51,000) 

Spending Authority from Offsetting Collections 3,413,037 4,984,118 

Total Budgetary Resources $ 3,800,156 $ 5,087,984 

Status of Budgetary Resources: 

Obligations Incurred (Note 17) $ 3,106,304 $ 4,674,890

Unobligated balance, end of year 

Apportioned 669,760 413,094 

Unapportioned 24,092 – 

Total Unobligated balance, end of year 693,852 413,094 

Total Budgetary Resources $ 3,800,156 $ 5,087,984 

Change in Obligated Balances: 

Unpaid obligations, brought forward, October 1 $ 346,248 $ 228,454 

Less: Uncollected customer payments from Federal 

 sources, brought forward, October 1 (6,694) (7,598) 

Obligated balance, start of year 339,554 220,856

Obligations Incurred (Note 17) 3,106,304 4,674,890 

Outlays (gross) (3,125,026) (4,513,223) 

Change in uncollected customer payments from Federal sources 764 903 

Recoveries of Prior Year Unpaid Obligations (51,025) (43,873) 

Obligated Balance, end of year 

Unpaid obligations, end of year 276,501 346,248 

Uncollected customer payments from Federal sources, 

 end of year 

(5,930) (6,694)

Obligated Balance, End of Year $ 270,571 $ 339,554 

Budget Authority and Outlays, Net 

Budget Authority, gross 3,413,037 4,984,118 

Actual offsetting collections (3,413,801) (4,985,021) 

Change in uncollected customer payments from Federal Sources 764 903 

Outlay, gross 3,125,026 4,513,223 

Actual offsetting collections (3,413,801) (4,985,021) 

Outlays, Net $ ($288,775) ($471,798) 

DEPARTMENT OF THE TREASURY UNITED STATES MINT
 

STATEMENTS OF BUDGETARY RESOURCES
 

For the years ended September 30, 2012 and 2011 

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

34
 
NOTES TO THE FINANCIAL STATEMENTS 

For the Years Ended September 30, 2012 and 2011 

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 as follows: To manufacture and distribute 

circulating coins, precious metals and collectible coins, and national medals to meet the needs of the 

United States. 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 Treasury-owned 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 

(FRB). Additionally, the Mint sells certain circulating products directly to the public as numismatic 

items. Activities related to protection of Treasury-owned custodial assets are funded by the United 

States Mint Public Enterprise Fund (PEF). 

Pursuant to Public Law 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 Mint. 

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 Treasury-owned gold and silver reserves. 

A separate Schedule of Custodial Deep Storage Gold and Silver Reserves has been prepared for the deep 

storage portion of the Treasury-owned gold and silver reserves for which the 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 fi nancial statements 

have been prepared to report the financial position, net cost of operations, changes in net position, and 

budgetary resources, as required by 31 U.S.C. § 5134. 

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

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

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

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

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

unemployment benefits. 

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

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

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

35
 
EARNED REVENUES AND OTHER FINANCING SOURCES (SEIGNIORAGE) 

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

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

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

a premium to cover manufacturing, marketing, and distribution costs. 

Numismatic Sales of Circulating Coins: Specially packaged products containing circulating coins 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 FRB. 

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

Revenue from the sale of circulating coins to the FRB and numismatic sales of circulating coins to 

the public is limited to the recovery of the cost of manufacturing and distributing those coins. 

Seigniorage is not counted as part of 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 the two leased 

buildings in Washington, D.C. The lease expired on one of these buildings on Oct. 31, 2011. A 

commercial vendor subleases a portion of the first floor space of the building at 801 9th Street, NW. 

FUND BALANCE WITH TREASURY All cash is maintained at the Treasury. Fund Balance with 

Treasury is the aggregate amount of the Mint’s cash accounts with the United States Government’s 

central accounts and from which the Mint 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 due 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 Mint will continue collection action on those accounts 

that are more than 180 days past due, as specified by the Debt Collection Improvement Act of 1996. 

INVENTORIES Inventories of circulating and numismatic coinage are valued at either cost or market, 

whichever is lower. Costs of the metal and fabrication components of the inventories are determined 

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

fabricated blank into a finished coin) are valued using a standard cost methodology. The Mint uses three 

classifications for inventory: raw material (raw metal, unprocessed coil, or blanks); work-in-process 

(WIP – material being transformed to finished coins); and finished goods (coins that are packaged or 

bagged and ready for sale or shipment to the public or the FRB). 

36
 
 

TREASURY-OWNED CUSTODIAL GOLD AND SILVER RESERVES Treasury-owned gold and 

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

Deep Storage is defined as that portion of the Treasury-owned gold and silver 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 Treasury-owned gold and silver bullion reserves which 

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

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

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

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

allows the Mint to avoid the market risk associated with buying gold 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 Mint does not deplete the working stock used in production. Instead, 

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

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

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

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

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

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

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

assets upon acquisition and expensed as they are consumed. 

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

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

are 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 straightline 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 indefi nitely. 

37
 
LIABILITIES Liabilities represent actual and estimated amounts likely to be paid as a result of 

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

be paid from revenues received by the PEF. 

SURCHARGES Legislation authorizing commemorative coin and medal programs often requires 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 Mint may make interim surcharge payments during a 

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

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

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

private sources an amount equal to or greater than the surcharges collected based on sales, and recipient 

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

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

matching funds requirement. 

EARMARKED FUNDS Pursuant to 31 U.S.C. SS 5136, the PEF was established as the sole funding 

source for Mint activities. The PEF meets the requirements of an earmarked fund as defi ned in 

Statement of Federal Financial Accounting Standard (SFFAS) 27, Identifying and Reporting 

Earmarked Funds. As non-entity and non-PEF assets, the Treasury-owned gold and silver bullion 

reserves are not considered to be earmarked funds. 

UNEARNED REVENUES These are amounts received for numismatic orders which have not yet 

been shipped to the customer. 

RETURN POLICY If for any reason a numismatic customer is dissatisfied, the entire product must 

be returned within seven days of receiving the order to receive a refund or replacement. Shipping 

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

Historically, the Mint receives few returns, which are immaterial. Therefore, no reserve for returns 

is considered necessary. 

SHIPPING AND HANDLING The Mint reports shipping and handling costs of circulating coins and 

numismatic products as a cost of goods sold. General postage costs for handling administrative mailings 

are reported as part of the Mint’s general and administrative expenses. 

ANNUAL, SICK AND OTHER LEAVE Annual leave is accrued when earned and reduced as leave 

is taken. The balance in the accrued leave account is calculated using current pay rates. Sick leave and 

other types of non-vested leave are charged to operating costs as they are used. 

ACCRUED WORKERS’ COMPENSATION AND OTHER ACTUARIAL LIABILITIES The 

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

Federal civilian employees injured on the job or who have developed a work-related occupational 

disease, and to pay beneficiaries of employees whose deaths are attributable to job-related injuries or 

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

(DOL), which pays valid claims and subsequently seeks reimbursement from the Mint for these 

paid claims. 

38
 
 

The FECA liability is based on two components. The first component is based on actual claims paid by 

DOL but not yet reimbursed by the Mint. There is generally a two- to three-year time period between 

payment by DOL and DOL’s requesting payment 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. 

PROTECTION COSTS Treasury-owned gold and silver reserves are in the custody of the Mint, 

which is responsible for safeguarding the reserves. These costs are borne by the Mint, but are 

not directly related to the circulating or numismatic coining operations of the United States Mint. 

The Protection Department is a separate function from coining operations and is responsible for 

safeguarding the reserves as well as Mint employees and facilities. 

OTHER COST AND EXPENSES (MUTILATED AND UNCURRENT) Other costs and expenses 

consist primarily of returns of mutilated or uncurrent coins to the Mint. Coins that are chipped, fused, 

and/or not machine-countable are considered mutilated. The Mint reimburses the entity that sent in the 

mutilated coins, using weight formulas that estimate the face value of these coins. Uncurrent coins are 

worn, but machine-countable, and their genuineness and denominations are still recognizable. 

Uncurrent coins are replaced with new coins of the same denomination by the FRB. The FRB then 

seeks replacement coins from the Mint. All mutilated or uncurrent coins received by the Mint are sold 

to its fabrication contractors to be processed into coils or blanks to be used in future coin production. 

TAX EXEMPT STATUS As a bureau of the Federal Government, the Mint is exempt from all 

taxes imposed by any governing body, whether it is a federal, state, commonwealth, local, or 

foreign government. 

CONCENTRATIONS The Mint purchases the coil and blanks used in the production of circulating 

coins from three vendors at competitive market prices. The Mint also purchases precious metal blanks 

from four different suppliers. 

CONTINGENT LIABILITIES Certain conditions may exist as of the date of the fi nancial 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 transfers amounts determined to 

be in excess of the amounts required for Mint operations and programs to the Treasury General Fund 

periodically throughout the fi scal 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 to reduce the annual budget deficit. Instead, they are used as a fi nancing source 

(i.e., they reduce the amount of cash that Treasury has to borrow to pay interest on the national debt). 

Revenues generated from the sale of numismatic products are transferred to the Treasury General Fund 

as an on-budget receipt. Unlike seigniorage, the numismatic transfer amount is available to the Federal 

Government as current operating cash or it can be used to reduce the annual budget deficit. 

39
 
 

 

 

 

 

 

 

 

 

 

 

BUDGETARY RESOURCES The Mint does not receive an appropriation from the Congress. Instead, 

the Mint receives all financing from the public and the FRB, and receives an apportionment of those 

funds from OMB. This apportionment is considered a budgetary authority, which allows the Mint to 

spend the funds. The Mint’s budgetary resources consist of unobligated balances, transfers, and 

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

available. “Permanently not available” funds are 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 Mint purchases silver in large quantities and sells an interest 

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

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

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

authorized purchasers (APs). Repurchases of the trading partner’s interest in the silver occurs upon sale 

of coins by the Mint. Repurchases are made on the same day as sales, in the same quantity sold, and 

using the same spot price as was used for the sale to the AP. Each sale to and from the trading partner carries a small transaction fee, the selling and buying fees net to a cost of one-half cent per ounce. The Mint 

incurred $169 thousand in hedging fees in FY 2012, compared to $217 thousand incurred in FY 2011. 

RECLASSIFICATION OF THE STATEMENTS OF BUDGETARY RESOURCES FORMAT 

In FY 2012, changes to the presentation of the Statements of Budgetary Resources were made, in 

accordance with guidance provided in OMB Circular A-136 and, as such, activity and balances reported 

on the FY 2011 Statement of Budgetary Resources have been reclassified to conform to the presentation 

in the current year. Certain other prior year amounts have also been reclassified to conform with the 

current year presentation. 

2. NON-ENTITY ASSETS 

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

(dollars in thousands) 2012 2011 

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

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

Custodial Gold Reserves (Working Stock) 117,514 117,514 

Custodial Silver Reserves (Working Stock) 11,539 11,539 

Total Non-entity Assets 10,493,740 10,493,740 

Total Entity Assets 1,541,660 1,478,032 

Total Assets $ 12,035,400 $ 11,971,772 

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. Treasury-owned gold and silver 

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

3. FUND BALANCE WITH TREASURY 

Fund Balance with Treasury at September 30 consists of: 

(dollars in thousands) 2012 2011 

Revolving Fund Types $ 964,423 $ 752,648 

Other Fund Types 94 94 

Total of Fund Balance with Treasury $ 964,517 $ 752,742 

Status of Fund Balance with Treasury 

Unobligated Balance $ 693,852 $ 413,094 

Obligated Balance, Not Yet Disbursed 270,571 339,554 

Non-Budgetary FBWT 94 94 

Total $ 964,517 $ 752,742 

40
 
 

 

 

 

 

 

 

 

 

 

 

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

available for use to support United States Mint operations. At September 30, 2012 and 2011, the 

revolving fund balance included $11.2 million and $11.7 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, 2012

 Gross Receivables Allowance Net Receivables 

Intragovernmental $ 5,946 ($5,946) – 

With the Public 12,490 (397) 12,093 

Total Accounts Receivable $ 18,436 ($6,343) $ 12,093 

(dollars in thousands) September 30, 2011

 Gross Receivables Allowance Net Receivables 

Intragovernmental $ 6,667 ($5,946) $ 721 

With the Public 18,866 (612) 18,254 

Total Accounts Receivable $ 25,533 ($6,558) $ 18,975 

The intragovernmental accounts receivable as of September 30, 2012 and 2011 was $5.9 million and 

$6.6 million, respectively. This largely represents amounts due to the Mint for a joint numismatic 

product with another federal entity. Management determined that the collection of $5.9 million related 

to the program was in doubt and has included that amount in the allowance for doubtful accounts. 

Receivables with the public at September 30, 2012 are $12.5 million, of which $8.3 million is owed by 

fabricators for scrap and webbing, in addition to amounts owed by the public for numismatic products. 

This compares to receivables with the public at September 30, 2011, of $18.9 million, of which $13.4 

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) 2012 2011 

Intragovernmental $ 3,232 $ 2,046 

With the Public 1 1 

Total Advances and Prepayments $ 3,233 $ 2,047 

Intragovernmental advances and prepayments as of September 30, 2012 and 2011 include $1.6 million 

and $1.5 million, respectively, that the Mint paid the Treasury Working Capital Fund for a variety of 

centralized services. The remaining balance of approximately $1.6 million represents payments made 

to the United States Postal Service for product delivery services as of September 30, 2012, compared 

to approximately $500 thousand paid at September 30, 2011. Advances with the public for both 

FY 2012 and 2011 are outstanding travel advances to Mint employees who were traveling on 

government business. 

41
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012 2011

Gold - Deep Storage:

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

 Market Value ($ per FTO) $ 1,776.00 $ 1,620.00

 Market Value ($ in thousands) $ 435,586,905 $ 397,325,893

 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) $ 1,776.00 $ 1,620.00

 Market Value ($ in thousands) $ 4,942,996 $ 4,508,815

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

Silver - Deep Storage:

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

 Market Value ($ per FTO) $ 34.65 $ 30.45

 Market Value ($ in thousands) $ 245,154 $ 215,439

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

Silver - Working Stock:

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

 Market Value ($ per FTO) $ 34.65 $ 30.45 

Market Value ($ in thousands) $ 309,245 $ 271,761 

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

Total Market Value of Custodial Gold 

and Silver Reserves ($ in thousands) $ 441,084,300 $ 402,321,908 

Total Statutory Value of Custodial Gold 

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

6. CUSTODIAL GOLD AND SILVER RESERVES 

As custodian, the Mint is responsible for safeguarding much of the Treasury-owned 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 entire custodial assets held by the Mint. 

The market values for gold and silver as of September 30 are determined by the London Gold Fixing 

(PM) rate. Amounts and values of gold and silver in custody of the Mint as of September 30 are 

as follows: 

42
 
 

 

 

 

 

 

 

 

 

 

 

 

7. INVENTORY AND RELATED PROPERTY 

The components of inventories at September 30 are summarized below: 

(dollars in thousands) 2012 2011 

Raw Materials $ 184,383 $ 322,484 

Work-In-Process 98,348 87,754 

Inventory held for current sale 78,881 91,049 

Total Inventory and Related Property $ 361,612 $ 501,287 

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, 2012 and 2011, the inventory includes $241.5 

million and $247.7 million, respectively, the market value of the silver hedged. Additional information 

can be found in note 20. Work-in-process consists of semi-fi nished materials. 

8. PROPERTY, PLANT AND EQUIPMENT, NET 

Components of property, plant and equipment are as follows: 

(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 

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 

(dollars in thousands) September 30, 2011 

 Asset Cost Accumulated Depreciation Total Property, Plant

 and Amortization and Equipment, Net 

Land $ 2,529 $ - $ 2,529 

Structures, Facilities and

 Leasehold Improvements 225,500 (148,387) 77,113 

Computer Equipment 31,235 (28,052) 3,183 

Software 15,893 (15,051) 842 

Construction-In-Progress 12,875 - 12,875 

Machinery and Equipment 282,256 (193,097) 89,159 

Total Property, Plant

 and Equipment, Net $ 570,288 ($384,587) $ 185,701 

The land and buildings used to manufacture circulating coinage and numismatic products are owned 

by the Mint and located in Philadelphia, Denver, San Francisco, and West Point. In addition, the Mint 

owns the land and buildings at the United States Bullion Depository at Fort Knox. Construction-InProgress (CIP) represents assets that are underway, such as in the process of being readied for use, or 

which are being tested for acceptability, but which are not yet being fully utilized by the Mint and, 

therefore, not being depreciated. 

Depreciation and amortization expenses charged to operations during the years ended September 30, 

2012 and 2011, were $27.8 million and $29.5 million, respectively. 

43
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9. HERITAGE ASSETS 

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

are retained by the Mint for its historic, natural, cultural, educational or artistic value, or significant 

architectural characteristics. For example, the Mint’s historical artifacts contain, among other things, 

examples of furniture and equipment used in the Mint facilities over the years, as well as examples of 

the coin manufacturing process, such as plasters, galvanos, dies, punches, and actual fi nished coins. 

The coin collections include examples of the various coins produced by the Mint over the years, 

separated into collections of pattern pieces/prototypes, coin specimens, quality samples, and exotic 

metal coin samples. The buildings housing the Mint 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 

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

collections and historical artifacts. 

Coin Collections Quantity of Collections Held September 30, 

2012 2011 

Pattern Pieces/Prototypes 1 1 

Coin Specimens 1 1 

Quality Samples 1 1 

Exotic Metal Coin Samples 1 1 

Total 4 4 

Historical Artifacts Quantity of Collections Held September 30, 

2012 2011 

Antiques/Artifacts 1 1 

Plasters 1 1 

Galvanos 1 1 

Dies 1 1 

Punches 1 1 

Historical Documents 1 1 

Multi-use heritage assets 4 4 

Total 10 10 

10. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

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

(dollars in thousands) 2012 2011 

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

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

Working Stock Inventory - Gold Reserves 117,514 117,514 

Working Stock Inventory - Silver Reserves 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 95,913 134,286 

Total Liabilities $ 10,589,747 $ 10,628,120 

Liabilities not covered by budgetary resources represent the Mint’s custodial liabilities to the Treasury 

that are entirely offset by Treasury-owned gold and silver reserves held by the Mint on behalf of the 

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

44
 
 

 

 

 

 

 

 

 

 

 

11. RETIREMENT PLANS, OTHER POST-EMPLOYMENT COSTS AND OTHER 

IMPUTED COSTS 

The Mint contributes seven percent of basic pay for employees participating in the Civil Service 

Retirement System (CSRS). Most employees hired after December 31, 1983, are automatically covered 

by the Federal Employees’ Retirement System (FERS) and Social Security. A primary feature of FERS 

is that it offers a savings plan to which the Mint automatically contributes one percent of basic pay and 

matches employee contributions up to an additional four percent of basic pay. Employees can contribute 

a specific dollar amount or a percentage of their basic pay, as long as the annual dollar total does not 

exceed the Internal Revenue Code limit of $17,000 for calendar year 2012 (a $5,500 catch-up 

contribution can be given by participants age 50 and older). Employees participating in FERS are 

covered by the Federal Insurance Contribution Act (FICA), for which the Mint contributes a matching 

amount to the Social Security Administration. 

Although the Mint contributes a portion for pension benefits and makes the necessary payroll deductions, it is not responsible for administering either CSRS or FERS. Administering and reporting on 

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

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

to current employees. The cost factors of 29.8 percent of basic pay for CSRS-covered employees and 

13.7 percent of basic pay for FERS-covered employees were in use for FY 2012. The CSRS and FERS 

factors were 30.1 percent and 13.8 percent, respectively, in FY 2011. 

The amounts that the Mint contributed to the retirement plans and social security for the year ended 

September 30 are as follows: 

(dollars in thousands) 2012 2011 

Social Security System $ 7,335 $ 7,230 

Civil Service Retirement System 1,124 1,276 

Federal Employees Retirement System

 (Retirement and Thrift Savings Plan) 13,503 12,722 

Total Retirement Plans and Other Post-employment Cost $ 21,962 $ 21,228 

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 $5,817 and 

$6,027 per employee enrolled in the Federal Employees Health Benefits Program in FY 2012 and FY 

2011, 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 2012 and FY 2011. 

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

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

(dollars in thousands) 2012 2011 

Health Benefits $ 8,375 $ 8,673 

Life Insurance 32 26 

Pension Expense 3,938 4,372 

Total Imputed Retirement and Postemployment Costs $ 12,345 $ 13,071 

45
 
 

 

 

 

 

 

 

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 2012, the Judgment Fund paid $26 thousand 

on behalf of the Mint for the clean-up of an EPA Superfund site. This was a one-time payment. Also 

during FY 2012, the Mint received unreimbursed services (imputed financing) from another federal 

agency. The amount was $672 thousand. For FY 2011, entries for Judgment Fund payments totaled 

$270 thousand (Other Funds). 

12. LEASE COMMITMENTS 

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

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

bureau leases copiers and other office equipment from commercial vendors and vehicles from GSA. 

With the exception of the commercial leases on two office buildings in Washington, D.C., all leases are 

one-year, or one-year with renewable option years. The two building leases in Washington, D.C. have 

terms of 20 and 10 years. One of the building leases expired October 31, 2011 and was not renewed. 

Because all of the Mint’s leases can be canceled, there are no minimum lease payments due. 

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

leased headquarters building in Washington, D.C. As of September 30, 2012, 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. Starting October 31, 2011, the lease of space in the 

building at 799 9th Street, NW, containing 149,647 square feet, was canceled. All of the subleases 

are operating leases and subject to annual availability of funding. The Mint has also entered into an 

agreement to sublet space in the Headquarters building to a commercial tenant. The Mint received a 

security deposit from the tenant of $94,500. 

Future Projected Receipts: Building Sub-lease 

Year 3 (FY 2013) $378,000 

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 8-9 (FY 2018-FY 2019) 808,920 

Total Future Operating Lease Receipts $2,751,840 

13. CONTINGENCIES 

The Mint is subject to legal proceedings and claims which arise in the ordinary course of its business. 

Judgments, if any, resulting from pending litigation against the Mint generally would be satisfi ed from 

the PEF. Likewise, under the Notifi cation 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. 

46
 
 

 

 

 Total Intragovernmental Costs 

 

 

 Total Public Cost 

 

 

 

 Total Intragovernmental Revenues 

 

 Total Earned Revenue 

 

(dollars in thousands)

Numismatic Production and Sales 2012 2011 

Cost:

 Intragovernmental:

 Selling, General and Administrative $ 19,410 $ 23,863

 Imputed Costs 5,884 6,152
 

25,294 30,015

 Public:

 Cost of Goods Sold 2,742,045 3,912,375

 Selling, General and Administrative 65,649 66,971

2,807,694 3,979,346 

Gross Cost 2,832,988 4,009,361 

Revenue:

 Intragovernmental:

 Rent Revenues 3,408 10,232

 Other Intragovernmental Revenues 14 65

3,422 10,297

 Public 2,909,010 4,168,297
 

2,912,432 4,178,594
 

Net Program Cost (Revenue) $ (79,444) $ (169,233) 

 

 Total Intragovernmental Costs 

 

 

 Total Public Cost 

 

 

 Total Earned Revenue 

 

Numismatic Production and Sales of Circulating Coins 

Cost:

 Intragovernmental:

 Selling, General and Administrative $ 226 $ 166

$ 226 166

 Public:

 Cost of Goods Sold 5,775 4,054

 Selling, General and Administrative 764 465
 

6,539 4,519 

Gross Cost 6,765 4,685 

Revenue:

 Public 6,765 4,685
 

6,765 4,685
 

Net Program Cost $ – $ – 

14. 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 an earmarked fund as defi ned in Statement of Federal Financial

Accounting Standards 27, Identifying and Reporting Earmarked Funds. As non-entity and non-PEF

assets, the Treasury-owned gold and silver reserves are not included in the earmarked funds.

15. INTRAGOVERNMENTAL COSTS AND EARNED REVENUE

Intragovernmental costs and earned revenue reflect transactions in which both the buyer and seller are

federal entities. Revenue with the public reflects transactions for goods or services with a non-federal

entity. The purpose for this classification is to enable the federal government to prepare consolidated

financial statements. The following table provides earned revenues, gross cost, and net program revenue:

47
 
 

 

 

 Total Intragovernmental Costs 

 

 

 

 Total Public Cost 

 

 

 Total Earned Revenue 

 

 

 Total Earned Revenue 

 

2012 2011

Circulating Production and Sales 

Cost:

 Intragovernmental:

 Selling, General and Administrative $ 13,062 $ 9,546

 Imputed Costs 7,160 7,189 

20,222 16,735

 Public:

 Cost of Goods Sold 307,227 334,222

 Selling, General and Administrative 48,551 53,893

 Other Costs and Expenses (Mutilated and Uncurrent) 11,434 23,280 

367,212 411,395

 Gross Cost 387,434 428,130 

Revenue:

 Public 387,434 428,130 

387,434 428,130 

Net Program Cost $ – $ – 

Net Cost (Revenue) Before Protection of Assets $ (79,444) $ (169,233) 

Protection of Assets

 Public:

 Protection Cost $ 42,195 $ 41,570 

$ – $ –

 Net Cost of Protection of Assets $ 42,195 $ 41,570

 Net Cost (Revenue) from Operations $ (37,249) $ (127,663) 

 

 

 

 

 

 

 

 

 

 

 

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) 2012 2011 

Revenue-FRB $ 387,434 $ 428,130 

Seigniorage-FRB 105,850 348,780 

Total Circulating Coins $ 493,284 $ 776,910 

Revenue-with the public $ 6,765 $ 4,685 

Seigniorage-with the public 22,859 9,797 

Total Numismatic Sales of Circulating Coins $ 29,624 $ 14,482 

Total Seigniorage $ 128,709 $ 358,577 

48
 
 

 Statement of Budgetary

 Resources 

 

 

 

 

 

President’s

Budget

United States Mint Public Enterprise Fund 

Total Budgetary Resources 5,088 5,088 

Status of Budgetary Resources:

 Obligations Incurred 4,675 4,675

 Unobligated Balances-available 413 413 

Total Status of Budgetary Resources 5,088 5,088 

Net Outlays 472 472 

17. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

The Mint receives apportionments of its resources from OMB. An apportionment is a plan approved 

by OMB to spend funds as directed by law. All Mint obligations are classified as reimbursable, as they 

are financed by offsetting collections received in return for goods and services provided. OMB usually 

uses one of two categories to distribute budgetary resources. Category A apportionments distribute 

budgetary resources by fiscal quarters. Category B apportionments typically distribute budgetary 

resources by activities, projects, objects or a combination of these categories. The Mint has only 

category B apportionments. 

18. EXPLANATION OF DIFFERENCES BETWEEN THE STATEMENT OF BUDGETARY 

RESOURCES AND THE BUDGET OF THE UNITED STATES GOVERNMENT 

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling 

Budgetary and Financial Accounting, requires an explanation of material differences between the 

Statement of Budgetary Resources (SBR) and the related actual balances published in the Budget of 

the United States Government (President’s Budget). The President’s Budget for fiscal year FY 2012 is 

expected to be published in February 2013 and made available through OMB. Therefore, the analysis 

presented here is for the prior year (FY 2011) “actual” figures published in the President’s budget in 

February 2012. The following chart displays the comparison of the FY 2011 SBR and the actual FY 

2011 balances included in the FY 2013 President’s Budget. 

(rounded to millions) September 30, 2011 

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 is in excess of the amount 

required by the PEF shall be transferred to the Treasury for deposit as miscellaneous receipts. 

At September 30, 2012 and 2011, the Mint transferred excess receipts to the Treasury General Fund 

of $77 million and $51 million, respectively. 

20. HEDGING PROGRAM 

At September 30, 2012 and 2011, 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 $241.5 million and 

$247.7 million respectively. In addition, the Mint owed the trading partner $1.2 million in unpaid 

realized losses at September 30, 2012 and the trading partner owed the Mint $4.3 million in unpaid 

realized gains at September 30, 2011. In FY 2012, the Mint recorded an unrealized loss of $1.9 million 

compared to an unrealized loss of $0.7 million in FY 2011. 

49
 
 

 

 

 Net Obligations 

 

 Total Resources Used to Finance Items

Not Part of the Net Cost of Operations 

 

 

 

 

2012 2011

Resources Used to Finance Activities:

 Budgetary Resources Obligated

 Obligations Incurred 

 Less: Spending Authority from

 Offsetting Collections and Recoveries 

Other Resources 

 Transfers to the Treasury General Fund On-Budget 

$ 3,106,304 

3,464,062 

(357,758) 

$ 4,674,890

 5,027,991 

(353,101)

 Imputed Financing from Costs Absorbed by Others 

Other Financing Sources (Seigniorage) 

 Net Other Resources Used to Finance Activities 

Total Resources Used to Finance Activities 

(77,000) 

13,043 

128,709 

64,752 

(293,006) 

(51,000)

 13,341

 358,577

 320,918 

(32,183) 

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 

Resources that fund Expenses Recognized in Prior Periods 

 Resources that Finance the Acquisition

 of Assets or Liquidation of Liabilities 

Other 

 (30,491) 

(272) 

426,508 

(77,000) 

88,670

 –

 463,062

 (51,547) 

Total Resources Used to Finance the Net Cost of Operations 

318,745 

 (611,751) 

500,185 

(532,368) 

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 

 Revaluation of Assets 

Other 

27,767 

3,204 

543,696 

29,491

 870

 374,344 

Total Components of Net Revenue from Operations

 that will not require or Generate Resources 574,667 404,705 

Total Components of Net Revenue from Operations

 that will not require or Generate Resources

 in the Current Period 574,502 404,705 

Net Cost (Revenue) from Operations $ (37,249) $ (127,663) 

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

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

22. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

Budgetary resources obligated for undelivered orders as of September 30, 2012 and 2011 were 

$196,478 and $242,636 respectively. 

50
 
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 

FOR THE YEARS ENDED SEPTEMBER 30, 2012 AND 2011 

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 semi-precious 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. 

51
 
2012 2011 

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

 

 (24,092) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 3,038,024 4,611,150 

 

 

 

 2,909,159 4,477,529

 

 

 

What Money is Available to Spend? 

Total Resources

Less Amount Not Agreed to be Spent 

Less Amount Not Available to be Spent 

Total Amounts Agreed to be Spent 

$3,800,156 $5,087,984

(669,760) (413,094) 

– 

$3,106,304 $4,674,890 

How was the Money Spent? 

Personnel Compensation 

Personnel Benefits 

Benefits for Former Personnel 

Travel and transportation of persons 

Transportion of things 

Rent, Communications, and utilities 

Printing and reproduction 

Other contractual services 

Supplies and materials 

Equipment 

Land and structures 

Grants, subsidies and contributions 

Insurance claims and indemnities 

Interest and dividends 

142,798 

44,420 

306 

2,128 

22,982 

23,761 

1,624 

95,838 

2,763,066 

16,394 

 11,694 

0 

13 

2 

141,733 

42,313 

215 

2,127 

29,078 

31,649 

1,480 

98,742 

4,138,465 

16,407 

10,957 

0 

13 

44 

Total Spending $3,125,026 $4,513,223

Unpaid obligations, end of year (gross) 

Minus - Unpaid obligations, brought forward, 

 October 1 (gross) 

Recoveries of prior year unpaid obligations 

Amounts Remaining to be Spent 

276,501 

(346,248) 

51,025 

($18,722) 

346,248 

(228,454) 

43,873 

$161,667 

Total Amounts Agreed to be Spent $3,106,304 $4,674,890 

Who did the Money go to? VENDOR 

Federal 

Non-Federal

Total Amounts Agreed to be Spent 

68,280 

$3,106,304 

63,740 

$4,674,890 

How was the Money Given? 

Employees and Former Employees 

Contracts

Insurance 

Interest 

197,143 

– 

2 

197,312 

5 

44 

Total Amounts Agreed to be Spent $3,106,304 $4,674,890 

OTHER ACCOMPANYING INFORMATION 

DEPARTMENT OF THE TREASURY UNITED STATES MINT 

SCHEDULE OF SPENDING 

52
 
Independent Auditors’ Report on Internal Control Over Financial Reporting 

Inspector General 

United States Department of the Treasury 

Acting Director 

United States Mint: 

We have audited the balance sheets of the United States Mint as of September 30, 2012 and 2011 and the 

related statements of net cost, and changes in net position, and combined statements of budgetary resources 

(hereinafter referred to as “financial statements”) for the years then ended, and have issued our report 

thereon dated December 3, 2012. 

We conducted our audits in accordance with auditing standards generally accepted in the United States of 

America; the standards applicable to financial audits contained in Government Auditing Standards, issued 

by the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin 

No. 07-04, Audit Requirements for Federal Financial Statements, as amended. Those standards and OMB 

Bulletin No. 07-04 require that we plan and perform the audits to obtain reasonable assurance about 

whether the financial statements are free of material misstatement. 

The management of the United States Mint is responsible for establishing and maintaining effective internal 

control over financial reporting. In planning and performing our fiscal year 2012 audit, we considered the 

United States Mint’s internal control over financial reporting by obtaining an understanding of the design 

effectiveness of the United States Mint’s internal control, determining whether internal controls had been 

placed in operation, assessing control risk, and performing tests of controls as a basis for designing our 

auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the 

purpose of expressing an opinion on the effectiveness of the United States Mint’s internal control over 

financial reporting. Accordingly, we do not express an opinion on the effectiveness of the United States 

Mint’s internal control over financial reporting. 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. 

53
 
Our consideration of internal control over financial reporting was for the limited purpose described in the third 

paragraph of this report and was not designed to identify all deficiencies in internal control over fi nancial reporting 

that might be defi ciencies, signifi cant deficiencies, or material weaknesses. In our fiscal year 2012 audit, we did not 

identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as 

defi ned above. 

Exhibit I presents the status of the prior year signifi cant defi ciency. 

This report is intended solely for the information and use of the United States Mint’s management, the Department 

of the Treasury’s Office of Inspector General, OMB, the U.S. Government Accountability Office, and the U.S. 

Congress and is not intended to be and should not be used by anyone other than these specifi ed parties. 

December 3, 2012 

54
 
Exhibit I 

THE UNITED STATES MINT 

Status of Prior Year Signifi cant Deficiency 

September 30, 2012 

As required by Government Auditing Standards issued by the Comptroller General of the United States, and by 

OMB Bulletin No. 07-04, Audit Requirements for Federal Financial Statements, we have reviewed the status of 

the prior year finding and recommendation. The following table provides our assessment of the progress the United 

States Mint has made in correcting the signifi cant defi ciency identified during that audit as of the date of this audit 

report, December 3, 2012: 

55
 
Independent Auditors’ Report on Compliance and Other Matters 

Inspector General 

United States Department of the Treasury 

Acting Director 

United States Mint: 

We have audited the balance sheets of the United States Mint as of September 30, 2012 and 2011, and the 

related statements of net cost, and changes in net position, and combined statements of budgetary resources 

(hereinafter referred to as “financial statements”) for the years then ended, and have issued our report thereon 

dated December 3, 2012. 

We conducted our audits in accordance with auditing standards generally accepted in the United States of 

America; the standards applicable to financial audits contained in Government Auditing Standards, issued by 

the Comptroller General of the United States; and Office of Management and Budget (OMB) Bulletin No. 

07-04, Audit Requirements for Federal Financial Statements, as amended. Those standards and OMB Bulletin 

No. 07-04 require that we plan and perform the audit to obtain reasonable assurance about whether the financial 

statements are free of material misstatement. 

The management of the United States Mint is responsible for complying with laws, regulations, and contracts 

applicable to the United States Mint. As part of obtaining reasonable assurance about whether the United States 

Mint’s financial statements are free of material misstatement, we performed tests of the United States Mint’s 

compliance with certain provisions of laws, regulations, and contracts, noncompliance with which could have 

a direct and material effect on the determination of the financial statement amounts, and certain provisions of 

other laws and regulations specified in OMB Bulletin No. 07-04, including the provisions referred to in Section 

803(a) of the Federal Financial Management Improvement Act of 1996 (FFMIA). We limited our tests of 

compliance to the provisions described in the preceding sentence, and we did not test compliance with all laws, 

regulations, and contracts applicable to the United States Mint. However, providing an opinion on compliance 

with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. 

The results of our tests of compliance described in the preceding paragraph of this report, exclusive of those 

referred to in FFMIA, disclosed no instances of noncompliance or other matters that are required to be reported 

herein under Government Auditing Standards or OMB Bulletin No. 07-04. 

56
 
The results of our tests of FFMIA disclosed no instances in which the United States Mint’s fi nancial management 

systems did not substantially comply with the (1) Federal financial management systems requirements, (2) 

applicable Federal accounting standards, and (3) the United States Government Standard General Ledger at the 

transaction level. 

This report is intended solely for the information and use of the United States Mint’s management, the Department 

of the Treasury’s Office of Inspector General, OMB, the U.S. Government Accountability Office, and the U.S. 

Congress and is not intended to be and should not be used by anyone other than these specifi ed parties. 

December 3, 2012 

57
 
APPENDIX I: FY 2012 COIN AND MEDAL PRODUCTS
 

2012 STAR-SPANGLED BANNER COMMEMORATIVE COINS 

Coin Released: March 3, 2012 

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

Description: Description: These coins commemorate the writing of the 

“Star-Spangled Banner” by Francis Scott Key during the defense of Fort 

McHenry in Baltimore during the War of 1812. Key arrived in Baltimore 

on a diplomatic mission to secure the release of an American prisoner right 

before a naval attack, and rather than let him go, the British held him until 

after the battle was over. Key witnessed the defense of Fort McHenry from 

onboard a British ship and wrote the poem the next morning, when the 

smoke cleared and he saw proof – the American flag flying above the fort – 

that the Americans won the battle. Now the national anthem of our country, 

the “Star-Spangled Banner” has been popular since it was written. There are 

four different coin designs: a gold proof coin, a gold uncirculated coin, 

a silver proof coin, and a silver uncirculated coin. Surcharges from sales 

of the coins are authorized to be paid to the Maryland War of 1812 

Bicentennial Commission. 

2012 INFANTRY SOLDIER SILVER DOLLAR 

Coins Released: February 16, 2012 

Mintage Limits: 350,000 

Description: Description: This coin commemorates the creation of the U.S. 

Army Infantry, which was authorized by Congress in 1775. The design on 

the obverse (heads side) of the coin shows an Infantry soldier charging 

forward and beckoning troops to follow, symbolizing the “follow me” 

motto of the Infantry. This coin is offered in both proof and uncirculated 

silver dollar. Surcharges from sales of the coins are authorized to be paid 

to the National Infantry Foundation. 

THE NEW FRONTIER BRONZE MEDAL 

Medal Awarded: November 16, 2011 

Description: Description: This bronze medal is a duplicate of the New 

Frontier Congressional Gold Medal awarded to astronauts John Herschel 

Glen Jr., Neil A. Armstrong, Edwin E. “Buzz” Aldrin Jr. and Michael Collins. 

THE NISEI SOLDIERS OF WORLD WAR II BRONZE MEDAL 

Medal Awarded: November 2, 2011 

Description: Description: This bronze medal is a duplicate of the 

Congressional Gold Medal awarded to the 100th Infantry Battalion, 

442nd Regimental Combat Team and Military Intelligence Service of the 

U.S. Army. Neisi (second generation Americans of Japanese ancestry) 

served in World War II and the 442nd was the most decorated unit. 

58
 
CHICKASAW NATIONAL RECREATION AREA QUARTER – 

OKLAHOMA
 

Coin Released: November 7, 2011
 

Description: Description: The Chickasaw National Recreation Area was 

established in 1902 through the support of the Chickasaw Nation, and
 

provides protection to the area’s unique resources, springs, streams, lakes, 

and natural features. The coin features the Lincoln Bridge, dedicated
 

in 1909 to commemorate Abraham Lincoln’s birth. 

EL YUNQUE NATIONAL FOREST QUARTER – PUERTO RICO
 

Coin Released: January 24, 2012
 

Description: Description: The only tropical rainforest in the U.S. National 

Forest System, El Yunque National Forest was established as a national 

site Jan. 17, 1903. The reverse design shows a Coqui tree frog and a Puerto 

Rican parrot behind an epiphyte plant. 

CHACO CULTURE NATIONAL HISTORICAL PARK QUARTER – 

NEW MEXICO
 

Coin Released: March 15, 2012
 

Description: The Chaco Canyon was a major center of Puebloan culture
 

between A.D. 850 and 1250, and home to Pueblo, Hopi and Navajo Indians. 

It was established as a national site March 11, 1907. The reverse design 

shows two elevated kivas in the Chetro Ketl Complex.
 

ACADIA NATIONAL PARK QUARTER – MAINE
 

Coin Released: June 12, 2012
 

Description: Home to the tallest mountain on the U.S. Atlantic Coast,
 

Acadia National Park was established as a national site July 8, 1916.
 

The reverse image shows a view of the Bass Harbor Head Lighthouse
 

and the coastline. 

HAWAI’I VOLCANOES NATIONAL PARK QUARTER – HAWAII
 

Coin Released: August 27, 2012
 

Description: Established as a national park Aug. 1, 1916, Hawai’i
 

Volcanoes National Park shows the effects of 70 million years of volcanism, 

migration, and evolution. The reverse design shows an eruption on the east 

rift of Kilauea Volcano, which is one of the most active and dangerous 

volcanoes on Earth. 

59
 
JAMES GARFIELD PRESIDENTIAL $1 COIN – 

20TH PRESIDENT, 1881 

Coin Released: November 17, 2011 

Description: James Garfield was elected to the Ohio state senate in 1859 

and to Congress in 1862. He served 18 years before winning the nomination 

for President of the United States. In the summer of 1881, just four months 

into his term, he was shot and two months later died of his injuries. 

CHESTER ARTHUR PRESIDENTIAL $1 COIN – 

21ST PRESIDENT, 1881-1885 

Coin Released: April 9, 2012 

Description: An attorney by trade, Chester Arthur was also quartermaster 

general of New York state before becoming President after the death of 

James Garfield. He was a champion of civil service reform, and while he 

was President, Congress passed the Pendleton Act, establishing a bipartisan 

Civil Service Commission. 

GROVER CLEVELAND PRESIDENTIAL $1 COIN – 

22ND PRESIDENT, 1885-1889 

Coin Released: June 19, 2012 

Description: Grover Cleveland is the only President to leave the White 

House and return for a second term four years later. During his fi rst term, 

he vetoed private pension bills to Civil War veterans whose claims were 

fraudulent. He also ordered an investigation of western lands railroad 

companies held by government grant and forced the railroads to return 

81 million acres to the government. Cleveland also signed the Interstate 

Commerce Act, which regulated railroads. 

BENJAMIN HARRISON PRESIDENTIAL $1 COIN – 

23RD PRESIDENT, 1889-1893 

Coin Released: September 18, 2012 

Description: Grandson of former President William Henry Harrison, 

Benjamin Harrison served as a colonel of the 70th Volunteer Infantry in the 

Civil War. An attorney, he served in the U.S. Senate, where he championed 

American Indians, homesteaders and Civil War veterans. As President, he 

signed appropriation bills for internal improvements, naval expansion and 

subsidies for steamship lines, and the Sherman Anti-Trust Act, the first 

federal attempt to regulate trusts. 

60
 
LUCRETIA GARFIELD FIRST SPOUSE GOLD COIN 

AND BRONZE MEDAL – FIRST LADY, 1881 

Coin and Medal Released: December 1, 2011 

Description: Born in 1832, Lucretia Rudolph married James Garfi eld in 

1858. A few months after arriving at the White House, she contracted malaria 

and went to a New Jersey coastal resort to recover. She was there when 

President Garfield was shot. After his death, she moved back to Ohio. The 

reverse of this coin depicts Garfield’s interest in art and shows her painting. 

2012 NATIVE AMERICAN $1 COIN 

Coin Released: April 26, 2012 

Description: This design illustrates “Trade Routes in the 17th Century,” 

and shows a Native American and horse in profile. Of all the goods traded 

in the 17th century, the horse became the most sought-after commodity 

in inter-tribal trade, which was well-established before European settlers 

arrived. American Indians maintained widespread trans-continental trade. 

These trade routes were later followed by explorers and settlers. This 

cross-continental trade infrastructure culminated in the construction 

of the modern-day interstate highway system. 

2012 AMERICAN EAGLE PLATINUM PROOF COIN 

Coin Released: August 9, 2012 

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

proof coin program highlighting the Preamble to the U.S. Constitution. 

In 2012, “To Provide for the Common Defence” was released. The reverse 

design features a minuteman from the Revolutionary War. In addition to 

a rifle, he carries a book, representing the importance of knowledge in 

defending the country. 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. 

61
 
MONTFORD POINT MARINES CONGRESSIONAL GOLD MEDAL 

Medal awarded: June 27, 2011 

Description: The Montford Point Marines were recognized for their personal sacrifice and service to their country during World War II. The first 

black Americans to enlist in the U.S. Marine Corps after President Franklin 

Roosevelt issued the Executive Order establishing the Fair Employment 

Practices Commission in June 1941, these men landed at Iwo Jima, took 

part in the seizure of Okinawa, and landed at Peleliu and Saipan. 

CONSTANTINO BRUMIDI CONGRESSIONAL GOLD MEDAL 

Medal awarded: July 11, 2012 

Description: Brumidi (1805-1880) designed the murals in the U.S. Capitol. 

Born in Rome, he came to the United States in 1852 and became a citizen 

in 1857. 

ARNOLD PALMER CONGRESSIONAL GOLD MEDAL 

Medal awarded: September 12, 2012 

Description: Golfer Arnold Palmer received the Congressional Gold Medal 

in recognition for promoting excellence and good sportsmanship in golf. 

He has won 92 championships in national or international professional 

competitions. He also served in the U.S. Coast Guard for three years and for 

20 years as the honorary national chairperson of the March of Dimes Birth 

Defects Foundation. 

DAW AUNG SAN SUU KYI CONGRESSIONAL GOLD MEDAL 

Medal awarded: September 19, 2012 

Description: Committed to peaceful dialogue in bringing democracy, 

human rights, and national reconciliation to Burma, Daw Aung San Suu Kyi 

was awarded the Congressional Gold Medal. Remaining under house arrest 

for nearly 15 years, Suu Kyi was released this year and continues her fight 

against human rights violations by promoting freedom and democracy. 

She has also been awarded the Sakharov Prize for Freedom of Thought 

in 1990, the Nobel Peace Prize in 1991 (the prize money of which she 

donated to a health and education fund in Burma), and the Presidential 

Medal of Freedom in 2000. 

62
 



Connecting America through Coins
 

www.usmint.gov