Department of the Treasury

Bureau of Engraving and 

Printing

Congressional Budget

Justification and Annual 

Performance Plan and Report

FY 2024
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Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement................................................................................................................ 3

B – Summary of the Request ...................................................................................................... 3

1.1 – Resources Detail Table ...................................................................................................... 5

1.2 – Budget Adjustments Table................................................................................................. 5

C – Budget Increases and Decreases Description....................................................................... 5

1.3 – Object Classification (Schedule O) Obligations................................................................ 7

D – Appropriations Language and Explanation of Changes ...................................................... 7

E – Legislative Proposals............................................................................................................ 7

Section II – Annual Performance Plan and Report................................................................... 8

A – Strategic Alignment ............................................................................................................. 8

B – Budget and Performance by Budget Activity ...................................................................... 9

2.1. – Manufacturing Resources and Measures.......................................................................... 9

Section III – Additional Information ........................................................................................ 10

A – Summary of Capital Investments....................................................................................... 10
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Section I – Budget Request

A – Mission Statement

To develop and produce United States (U.S.) currency notes trusted worldwide.

B – Summary of the Request

The Bureau of Engraving and Printing (BEP) produces and delivers U.S. currency notes for the 

Federal Reserve System ordered by the Board of Governors of the Federal Reserve (FRB) and 

other security products for the Federal Government. BEP began printing currency in 1862 and 

operates on the basis of authority conferred upon the Secretary of the Treasury by 31 U.S.C. 

321(a)(4) to engrave and print currency and other security documents. Operations are financed 

through a revolving fund established in 1950 in accordance with Public Law 81-656. The fund is 

reimbursed for direct and indirect costs of operations, including administrative expenses, through 

product sales. In 1977, Public Law 95-81 authorized BEP to include an amount sufficient to fund 

capital investment and to meet working capital requirements in the prices charged for products, 

eliminating the need for annual discretionary appropriations. BEP provides technical assistance, 

advice, and some production services to other federal agencies in the development of security 

documents requiring counterfeit deterrent features due to their innate value or other 

characteristics. Other activities at BEP include engraving plates and dyes; manufacturing inks 

used to print security products; purchasing materials, supplies, and equipment; and storing and 

delivering products in accordance with customer requirements. BEP supports Treasury’s 

Strategic Goal 2: Enhance National Security, Goal 3: Protect Financial Stability and Resiliency, 

Goal 4: Combat Climate Change, and Goal 5: Modernize Treasury Operations. 

BEP’s FY 2024 President’s Budget request funds the following projects:

1. DC Replacement Facility: In FY 2019, BEP received legislative authority to acquire

land and fund construction of a more efficient production facility to replace BEP’s current aging

Washington, D.C. (DC) facility. Additionally, a provision in the Agriculture Improvement Act of 

2018 (P.L. 115-334) authorizes the transfer of a U.S. Department of Agriculture (USDA) land 

parcel in Beltsville, Maryland to the Department of the Treasury to be the site for BEP’s 

replacement production facility. The property transfer Memorandum of Agreement (MOA) 

between USDA and Treasury was finalized in early 2020. The formal transfer of administrative 

control from USDA to Treasury occurred in 2022. A replacement facility, with an estimated total 

cost of $1.9B, will save an estimated $568M over 10 years, as compared to the cost of the 

renovation of the existing facility. In addition, BEP will reduce its annual operating costs by at 

least $38M through production, material handling, and other operational/support efficiencies.

The FY 2024 budget estimate reflects the BEP’s continuing commitment to the next generation 

of currency manufacturing and building a state-of-the-art currency manufacturing facility. The 

FY 2024 budget estimate includes $1,244M in obligations for the next phase of the replacement 

facility project. 

2. Yearly Currency Order (YCO) Reduction: The BEP has finalized the FY 2023 YCO with 

the FRB with an initial production plan of 4.9B notes down from the previous estimate of 7.6B

notes in the FY 2023 President’s Budget. The FY 2024 budget estimate reflects an YCO of 6.8B 

notes. The reduction in the FY 2023 YCO production is driven by: 1) increased testing 
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requirements for the next generation of currency notes which is impacting the ability to produce 

a higher level of notes; 2) required maintenance, which was deferred due to pandemic, must now 

be completed; and 3) transitioning additional denominations to 50-subject sheets to increase 

capacity and improve efficiency.

3. Banknote Design and Development: BEP will continue to work with the Federal 

Government’s Advanced Counterfeit Deterrent Steering Committee to develop the next family of 

banknotes to include new and effective security features to deter counterfeiting, and a raised 

tactile feature to provide meaningful access to blind and visually impaired individuals. The 

current note release sequence continues to be as follows: $10, $50, $20, $5, $100.

4. Retooling: BEP continues to conduct a multi-year effort to retool its manufacturing processes 

with state-of-the-art intaglio printing presses, electronic inspection systems, and finishing 

equipment. To ensure BEP will meet the FRB’s annual currency order, BEP developed short-, 

medium-, and long-term strategic equipment replacement plans for the U.S. Currency Program. 

Successful implementation of advanced technology improves productivity, reduces 

environmental impact, and enhances counterfeit deterrence of U.S. currency notes. In

FY 2024, the major retooling initiatives include:

• Continue to upgrade and complete automation of the $100 finishing line to integrate Single 

Note Inspection technology. The capability to inspect single notes provides a significant 

improvement over BEP’s traditional sheet inspection process. Additional spoilage is 

expected, as well as achieving additional efficiency resulting in additional cost savings.

• Replace obsolete electrical and mechanical parts on existing presses and upgrade the

inspection system to meet present and future currency printing requirements, as well as to

extend the life of electrical and mechanical systems in the existing machinery.

• Conduct print trial to qualify prospective press vendors for acquisition of presses for the DC

replacement facility. 

• Make improvements to the existing system in operation to bring them up to the new 

capabilities that are included on the next generation Large Examining and Printing 

Equipment system.

5. Human Capital/Talent Management: The FY 2024 budget estimate and revised FY 2023

budget estimate reflect BEP’s commitment to the next generation of currency manufacturing, 

ensuring successful knowledge transfer and continuity of operations, and building of a state-ofthe-art currency manufacturing facility. Over 50 percent of BEP workforce is eligible for 

retirement in the coming years. The additional 15 FTE will enable BEP to ensure a successful 

knowledge transfer by near-retirement employees and support the development of the next 

generation of currency. 
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1.1 – Resources Detail Table

Dollars in Thousands

FY 2022 FY 2023 FY 2024 FY 2023 to FY 2024

Budgetary Resources Actual Revised Estimate Estimate % Change

Revenue/Offsetting Collections FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Currency Program 1,845 $1,025,190 1,870 $1,049,807 1,885 $1,200,054 0.8% 14.3%

Other Programs 0 $1,025 0 $3,000 0 $3,000 0.0% 0.0%

DC Replacement Facility 3 $11,769 3 $25,957 3 $1,243,699 0.0% 4691.4%

Total Revenue/Offsetting Collections 1,848 $1,037,984 1,873 $1,078,764 1,888 $2,446,753 0.8% 126.8%

Obligations

Manufacturing

Direct Manufacturing 869 $483,088 880 $500,860 887 $566,331 0.8% 13.1%

Indirect Manufacturing Support 976 $543,127 990 $551,947 998 $636,723 0.8% 15.4%

DC Replacement Facility 3 $11,769 3 $25,957 3 $1,243,699 0.0% 4691.4%

Total Expenses/Obligations 1,848 $1,037,984 1,873 $1,078,764 1,888 $2,446,753 0.8% 126.8%

Net Results 0 0 0 0 0 0 0.0% 0.0%

1.2 – Budget Adjustments Table

Dollars in Thousands

FTE Amount

FY 2023 President's Budget 1,863 $2,039,851 

Program Changes:

Program Decreases 0 ($1,016,485)

DC Replacement Facility 0 ($871,091)

Currency Program Decrease 0 ($126,321)

Overtime 0 ($19,073)

Program Increases: 10 $55,398

FTE 10 $1,596 

Capital Investments 0 $52,587

Travel 0 $1,215 

FY 2023 Revised Estimate 1,873 $1,078,764

Changes to Base:

Maintaining Current Levels (MCLs): 0 $41,546

Pay Annualization (4.6% average pay raise) 0 $3,725 

Pay Raise (5.2% average pay raise) 0 $11,395

Non-Pay 0 $26,426 

Subtotal Changes to Base 0 $41,546

FY 2024 Current Services 1,873 $1,120,310

Program Changes:

Program Decreases 0 ($20,000)

Western Currency Facility (WCF) Expansion 0 ($20,000)

Program Increases: 15 $1,346,444 

DC Replacement Facility 0 $1,217,742 

Currency Program Increase 0 $116,197 

Overtime 0 $10,000 

FTE Increase 15 $2,505 

FY 2024 Estimate 1,888 $2,446,753

C – Budget Increases and Decreases Description

FY 2023 Adjustments

Program Decreases ................................................................................-$1,016,485,000 / -0 FTE 

DC Replacement Facility, -$871,091,000/ -0 FTE

The major obligation for the next phase will shift to FY 2024. 
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Currency Production, -$126,321,000/ -0 FTE

The YCO has adjusted from 7.6B notes to 4.9B notes due to deferred maintenance requirements, 

testing, and integrating new equipment.

Overtime, -$19,073,000/ -0 FTE

Overtime requirement due to COVID is no longer needed. In addition, it has been adjusted for 

the revised YCO. 

Program Increases ................................................................................. +$55,398,000 / +10 FTE

FTE Increase, +$1,596,000/ +10 FTE 

To support backfill hires for near-retirement employees to avoid losing critical institutional 

knowledge. Additional resources are also required to support the next generation of notes and to 

comply with Executive Order 14035 on diversity, equity, inclusion, and accessibility. 

Manufacturing Capital Investments, +$52,587,000/ +0 FTE

To support the following capital projects: $30M for currency production/retooling; $6M for 

facilities support; $3.4M for information systems; $6.8M for manufacturing support; and $6.3M

for security and accountability.

Travel, +$1,215,000 +0 FTE

To restore travel requirements to pre-pandemic levels as pandemic travel restrictions ease. 

Maintaining Current Levels (MCLs) ......................................................+$41,546,000 / +0 FTE

Pay Annualization (4.6%) +$3,725,000 / +0 FTE

Funds are requested for annualization of the January 2023 4.6% average pay raise. 

Pay Raise (5.2% in FY 2024) +$11,395,000 / +0 FTE

Funds are requested for a 5.2% average pay raise in January 2024. 

Non-Pay (2.0% in FY 2024) +$26,426,000 / +0 FTE

Funds are requested for non-labor expenses such as travel, contracts, rent, supplies, 

and equipment.

Program Decreases......................................................................................-$20,000,000 / -0 FTE

WCF Expansion, -$20,000,000 / -0 FTE

The WCF Expansion is scheduled to be completed in 2023.

Program Increases .............................................................................+$1,346,443,000 / +15 FTE

DC Replacement Facility, +$1,217,742,000 / +0 FTE

Construction for the new DC Replacement Facility will start in FY 2024. This represents the

latest estimate which is under review by the FRB and will be updated if necessary. 

Currency Production, +$116,196,000 / +0 FTE

To reflect the increase of YCO from the FY 2023 level of 4.9B notes to FY 2024 level of 6.8B

notes. 
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Overtime, +$10,000,000 / +0 FTE

Additional overtime is needed to meet the estimated YCO increase in FY 2024.

Knowledge Transfer / Additional Skill Set FTE, +$2,505,000 / +15 FTE

Additional funds are required to enable knowledge transfer by backfilling near-retirement 

employees and support the development of the next generation of notes.

1.3 – Object Classification (Schedule O) Obligations

 Dollars in Thousands

FY 2022 FY 2023 FY 2024

Object Classification

Actual

Obligations

Revised Estimated 

Obligations Estimate

11.1 - Full-time permanent 190,383 196,507 208,381 

11.3 - Other than full-time permanent 263 206 215 

11.5 - Other personnel compensation 0 8,757 9,129 

11.6 - Overtime 45,910 14,643 25,690 

11.9 - Personnel Compensation (Total) 236,556 220,113 243,415 

12.0 - Personnel benefits 85,478 86,346 90,668 

13.0 - Benefits for former personnel 47 3 3 

Total Personnel and Compensation Benefits $322,081 $306,462 $334,086 

21.0 - Travel and transportation of persons 842 1,980 2,020 

22.0 - Transportation of things 611 846 863 

23.1 - Rental payments to GSA 6,960 3,218 3,282 

23.2 - Rental payments to others 924 832 849 

23.3 - Communication, utilities, and misc. charges 16,723 19,745 20,140 

24.0 - Printing and reproduction 187 3 3 

25.1 - Advisory and assistance services 593 31,868 32,505 

25.2 - Other services 161,358 127,001 129,541 

25.3 - Other purchases of goods & serv from Govt accounts 13,016 44,219 1,242,845 

25.4 - Operation and maintenance of facilities 108,968 78,668 80,241 

25.5 - Research and development contracts 2,658 3,664 3,738 

25.7 - Operation and maintenance of equip 23 0 0 

25.8 - Subsistence and support of persons 1 0 0 

26.0 - Supplies and materials 314,544 268,303 397,965 

31.0 – Equipment 70,655 191,765 198,481 

32.0 - Land and structures 17,794 0 0 

42.0 - Insurance claims and indemnities 46 190 194 

Total Non-Personnel $715,903 $772,302 $2,112,667 

Total Budgetary Resources $1,037,984 $1,078,764 $2,446,753 

Full-time Equivalents (FTE) 1,848 1,873 1,888

Amounts reflect obligations of annually appropriated resources, carryover balances, reimbursables, and transfers. 

D – Appropriations Language and Explanation of Changes

The BEP does not require annual appropriations language.

E – Legislative Proposals

The BEP has no legislative proposals.
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

BEP's vision is to be the world standard securities printer providing its customers and the public with 

superior products through excellence in manufacturing and innovation. BEP supports the following 

Department of the Treasury FY 2022-2026 strategic goals: 

• Goal 2: Enhance National Security

o Strategic Objective 2.1: Cyber Resiliency of Financial Systems and Institutions

• Goal 3: Protect Financial Stability and Resiliency

o Strategic Objective 3.3: Financial Innovation

• Goal 4: Combat Climate Change

o Strategic Objective 4.4: Sustainable Treasury Operations

• Goal 5: Modernize Treasury Operations

o Strategic Objective 5.1: Recruit and Retain a Diverse and Inclusive Workforce

o Strategic Objective 5.2: Future Work Routines 

o Strategic Objective 5.3: Better Use of Data

U.S. currency is used globally and as its manufacturer, BEP, needs to achieve and maintain bestin-class practices for U.S. currency to be accepted worldwide. Working closely with its partners 

in the U.S. Currency Program, BEP looks forward to updating the next series of secure notes. 

BEP continues to make every effort to meet its mission to manufacture sophisticated and 

technologically advanced notes that are dependable in commerce. This achievement requires the 

focus and determination of the entire agency, since BEP faces challenges and is committed to 

stay ahead of increasingly sophisticated counterfeiters. In addition, BEP is working to align 

budget activities and performance measures to the new Treasury FY 2022-2026 Strategic Plan.

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury published its FY 2022-2026 Strategic Plan 

in FY 2022. BEP also published a component plan that aligns BEP activities and priorities with 

the Department’s Strategic Plan. 
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B – Budget and Performance by Budget Activity

2.1. – Manufacturing Resources and Measures

Dollars in Thousands

FY 2018 FY 2019 FY 2020 FY2021 FY 2022 FY 2023 FY 2024

 Resource Level Actual Actual Actual Actual Actual Revised 

Estimate Estimate

Expenses/Obligations $914,134 $955,212 $878,611 $1,248,731 $1,037,984 $1,078,764 $2,446,753

Budget Activity 

Total $914,134 $955,212 $878,611 $1,248,731 $1,037,984 $1,078,764 $2,446,753

Full-time Equivalents (FTE) 1,748 1,727 1,740 1,832 1,848 1,873 1,888

Performance Measure FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2022 FY 2023 FY 2024

Actual Actual Actual Actual Actual Target Target Target

Currency Notes Delivered 

Returned Due to Defects 

(parts per million)

.0031 .009 .02 .0016 16.6 <1ppm <1ppm <1ppm

FEVS Satisfaction Index1 73 74 74 71 NA >65% >65% >65%

Lost Time Accident rate (per 

100 employees) 2 0.78 1.48 1.01 1.59 0.95 <1.8 <1.8 <1.8

Manufacturing Costs for 

Currency (Dollars per 

Thousand Notes Produced)

$47.41 $50.33 $56.193 $61.81 $63.96 $63.07 $65.00 TBD

Key: TBD – To Be Decided

1 FEVS Satisfaction scores are keyed to the year of survey, not the year results are received.

2 Lost Time Accident Rates are adjusted following adjudication of accident reports received during each fiscal year. The 2018 

numbers shown reflect these adjustments.

3 Target Manufacturing Cost in FY 2020 was increased from $55.73 to $59.65 in Jun 2020 in response to an increase in FY 2020 

order due to pandemic demand.

Manufacturing Budget and Performance

($2,446,753,000 from reimbursable sources)

The BEP has one budget activity: Manufacturing. This budget activity supports all of BEP’s 

strategic goals.

Description of Performance:

Currency Notes Returned Due to Defects (in parts per million or ppm) is an indicator of BEP’s

ability to provide a quality product. The target for this performance metric is <1 ppm. BEP 

normally achieves this target. As many as 203,000 $20 notes were printed and delivered to the 

FRB with mismatched serial numbers. Elimination of these notes may require as many as 

600,000 notes be removed from circulation in the full serial number range. As of October 21, 

2022, 114,000 such notes have been removed and shredded. BEP expects this removal to take 

several years. As the root cause has been corrected, BEP’s target for this performance metric will 

be held constant at <1 ppm for FY 2023 and FY 2024. 

The Federal Employees Viewpoint Survey (FEVS) allows employees to share their opinion on 

what matters most to them. Based on the results of the survey, BEP can target areas for 

improvement or additional employee engagement. The measure uses the Department’s standard 

FEVS Global Satisfaction Index with a target of 65 percent or greater. In FY 2023 and 2024, 

BEP will continue to strive for improvements in overall employee satisfaction.

The Lost Time Accident Rate per 100 employees measures the BEP’s ability to reduce injuries 
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in the workplace. BEP’s FY 2022 Lost Time Accident rate was at 0.95 cases per 100 employees, 

lower than the target of 1.8 cases per 100 employees. This performance resulted from continued 

focus on following safe work practices and avoiding hazards. For FY 2023, BEP remains 

committed to maintaining and improving the safety of its employees. BEP will continue to 

perform analysis to determine the root causes of any injury and to identify best practices in 

safety. The 1.8 case rate represents approximately one injury per facility per month. BEP’s target 

will be held at 1.8 cases per 100 employees for FY 2023 and FY 2024.

Manufacturing Cost for Currency (dollar cost per 1,000 notes produced) is an indicator of

manufacturing efficiency and effectiveness of program management. The measure is based on 

contracted price factors, productivity improvements, and the mix and timing of denominations 

ordered. This indicator is strongly affected by the portion of the order devoted to high-value 

notes, which are more expensive to produce. Actual performance against standard costs depends 

on BEP’s ability to meet spoilage, efficiency, and capacity utilization goals. The final FY 2022 

cost was $63.96 per 1,000 notes produced. BEP’s target for this performance metric is $63.07 in 

FY 2023. The notional target for FY 2024 is set at $67.01 per 1,000 notes produced. 

Section III – Additional Information

A – Summary of Capital Investments

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: 

https://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx.