United States Mint 

Mission Statement 

To apply world-class business practices in making, selling and protecting our nation’s 

coinage and assets. 

Program Summary by Account Dollars in Thousands 

FY 2006 FY 2007 FY 2008

Obligated Estimated Estimated $ Change % Change 

Manufacturing $1,469,100 $1,911,439 $1,859,892 ($51,547) -2.70%

Protection 36,917 38,121 39,143 1,022 2.68%

Total Cost of Operations $1,506,017 $1,949,560 $1,899,035 ($50,525) -2.59%

Capital Investments $21,284 $38,484 $38,469 ($1,015) 2.6% 

(Not Included in Total Cost of Operations Above) 

FY 2008 Priorities 

• Efficiently and effectively produce and distribute approximately 15.1 billion coins to 

meet demand for circulation during FY 2008. 

• Continue to produce and ship Presidential $1 Coin Act products, including 

Presidential $1 coins for circulation, Sacagawea $1 coins for circulation, 24-karat 

First Spouse Gold coins and 24-karat Gold Bullion coins. 

• Produce and distribute required numismatic products and sets, as well as other 

numismatic items, in quantities sufficient to make them available and affordable to 

Americans who chose to purchase them. 

• Produce coins for the final year of the United States Mint 50 State Quarters® Program 

to honor the following states: Oklahoma, New Mexico, Arizona, Alaska, and Hawaii. 

These five states conclude the 50 State Quarters Program. 
Table of Contents 

Section 1 – Purpose ........................................................................................................... 2

1A – Description of Bureau Vision and Priorities.......................................................... 2 

1B – Program History and Future Outlook..................................................................... 2 

1C – Industry Outlook .................................................................................................... 3 

Section 2 – Budget Adjustments and Appropriations Language ................................. 6

2.2 – Operating Levels Table.......................................................................................... 6 

2B – Appropriations Language....................................................................................... 7 

2C – Legislative Proposals.............................................................................................. 7 

Section 3 – Budget and Performance Plan ..................................................................... 8

3.1 – Resource Detail Table............................................................................................ 8 

3A – Manufacturing........................................................................................................ 8 

3.2.1 – Manufacturing Budget and Performance Plan.................................................. 11 

3B – Protection ............................................................................................................. 11 

3.2.2 – Protection Budget and Performance Plan ......................................................... 12 

Section 4 – Supporting Materials.................................................................................. 13

4.1 – Human Resources Table ...................................................................................... 13 

4A – Human Capital Strategy Description ................................................................... 13 

4.2 – Summary of IT Resources Table ......................................................................... 14 

4B – Information Technology Strategy ........................................................................ 15 

4.3 – PART Evaluation Table....................................................................................... 16 

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Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

The United States Mint is the world’s largest coin manufacturer with operations in 

California, Colorado, Kentucky, New York, Pennsylvania, and Washington, D.C. Its 

mission is to apply world-class business practices in manufacturing, selling, and 

protecting the nation’s coinage and assets. The United States Mint’s vision is “together, 

we will provide value to the American people, ensure integrity in our commitments and 

communications, and achieve world-class performance.” The United States Mint remains 

committed to holding down costs, streamlining operations, and providing value to the 

American people. 

The following priorities have been established toward achieving the mission in line with 

this vision: 

• Increase in Efficiency 

• Increase accessibility and awareness of United States Mint products and programs. 

 

• Commitment to Its workforce. 

1B – Program History and Future Outlook 

Since FY 1996, the United States Mint has been operating under the United States Mint’s 

Public Enterprise Fund (PEF). As authorized by Public Law 104-52 (31 U.S.C. § 5136), 

the PEF eliminates the need for appropriations. Proceeds from the sales of circulating 

coins to the Federal Reserve Banks and numismatic items to the public are the source of 

funding for operations. Both operating expenses and capital investments are associated 

with the production of circulating and numismatic coins and coin-related products, and 

protective services. Revenues in excess of amounts required by the PEF are transferred 

to the United States Treasury General Fund. 

The United States Mint’s consolidated earned revenue, plus other financing sources 

(seigniorage), increased to $2,323.5 million in FY 2006 from FY 2005 consolidated 

earned revenue plus other financing sources, totaling $1,771.0 million. These results 

reflect increases in the demand for both circulating and numismatic products. As a result 

of operations, the United States Mint transferred $750 million to the Treasury General 

Fund in FY 2006. 

During FY 2006, the United States Mint’s circulating coinage operations faced a 

challenging environment of rising metal prices. The face value of circulating coins 

shipped to the Federal Reserve was $1,271.9 million, slightly higher than $1,144.8 

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million in FY 2005. The average market prices through September 2006 for copper, 

nickel, and zinc increased 83 percent, 27 percent, and 111 percent, respectively, from FY 

2005. Rising metal prices had a significant effect on circulating coinage results and are 

causing the one-cent and five-cent coins to cost more than their face value to manufacture 

on a per-unit basis. The United States Mint is working with the Department of the 

Treasury and Congress to keep the public informed and to examine alternatives that could 

mitigate the impact that current metal prices are having on the circulating coinage. 

Ultimately, the metal content of all coins is specified by laws passed by Congress. The 

Constitution gives Congress the power to coin money and to regulate its value. 

The United States Mint’s numismatic and bullion operations performed strongly in FY 

2006, as sales to the public increased to $1,051.6 million from $626.1 million in FY 

2005. This included sales of the nation’s first 24-Karat American Buffalo Gold Coins, 

introduced to the public six months after enactment of Public Law 109-145 (December 

22, 2005). 

These successes could not have been possible without the contributions of the workforce. 

The United States Mint has begun planning for a future environment that is anticipated to 

bring new challenges and opportunities. Future success depends on further developing 

coin production expertise, increasing organizational flexibility, and implementing new 

production technology. To achieve this, the United States Mint is looking into exciting 

new technologies and materials to increase capability and agility in the design and 

manufacture of new products and to streamline administrative and related support 

services. 

1C – Industry Outlook 

United States Mint operations face key challenges. The increased use of electronic 

transactions, coin counting machines, and improvements to coin distribution channels 

will likely affect demand for newly minted circulating coins. However, this new 

environment provides an opportunity for growth in numismatic products. The new 

products legislated by the Presidential $1 Coin Act of 2005, coupled with efforts for the 

core recurring numismatic products, will offer the public many new opportunities for 

collections, gifts, or investments. Some of the key challenges expected in the coming 

years are: 

 

• Rising Prices of Metal Leading to Higher Production Costs – Steady and dramatic 

increases in the prices of zinc, copper, and nickel have raised the cost of producing 

circulating coinage. This is causing the one-cent and five-cent coins to cost more 

than their face value on a per-unit basis. The impact this is having is being addressed 

with the Department of the Treasury and with Congress to explore alternatives to 

mitigate the impact of high metals prices. Ultimately, the metal content of all coins is 

specified by laws passed by Congress. 

• Potential Downward Trend in Demand for Circulating Coins – Over the past five 

years, the public’s use of credit and debit cards, and other forms of electronic 

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transactions, has increased substantially. This transformation toward more cash-free 

transactions could have significant implications for the nation’s future demand for 

circulating coins. 

• Conclusion of the 50 State Quarters® Program – In recent years, there has been an 

increased demand for numismatic products – much of it because of the popularity of 

the 50 State Quarters products. However, this numismatic product line will cease 

when the 50 State Quarters Program ends in December 2008. 

• Volatility in Short-Term Coin Production Requirements – With the introduction of 

the 24-Karat gold bullion program in 2006 and the upcoming Presidential $1 Coin 

Program in 2007, the United States Mint is investing in production and packaging 

equipment in its coin production facilities. However, these production increases will 

likely be followed by a decline in 2009 – when the 50 State Quarters Program ends. 

Plans for FY 2007 and FY 2008 include items that address these challenges: 

Increases in Efficiency 

The United States Mint continually tries to improve production and administrative 

efficiencies. Also, with new product designs such as the Presidential $1 Coin products, 

it is necessary to have a quick timeframe to take a product from authorizing legislation to 

finished product for sale. This also maximizes the availability of products for purchase 

by the public. 

• The United States Mint is researching and developing new technologies and new 

materials to achieve greater capabilities and efficiencies in the design and 

manufacturing processes. Initiatives include establishing a technology center at the 

United States Mint at Philadelphia, assessing new technologies in digital engraving, 

and developing a plan to improve the response and capability of die manufacturing 

operations. 

• In FY 2006, the United States Mint transferred some of its human resource, 

procurement, and e-travel functions to the Bureau of the Public Debt’s Administrative 

Resource Center (ARC). This takes advantage of economies of scale and other 

business improvements resulting from increased standardization and transparencies of 

a shared services environment. In FY 2007, many of the finance and accounting 

functions will be transferred to ARC along with the operation of its Enterprise 

Resource Planning system. 

Increase Accessibility and Awareness of United States Mint Products and Programs 

The United States Mint sees a future in which the demand for circulating coinage is flat 

to declining. However, there is opportunity with numismatic coins, as evidenced by the 

popularity of circulating commemorative programs such as the 50 State Quarters 

Program and the Westward Journey Nickel SeriesTM. To position operations to 

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accommodate new designs and new products, it is necessary to analyze the market and 

communicate with the public, in addition to developing the production techniques and 

capacity. 

• In FY 2007, the United States Mint will introduce a Presidential $1 Coin. This 

program will increase dollar coin production and result in the production of additional 

numismatic products. A public awareness and educational outreach effort, consistent 

with the statutory requirements, will be conducted. 

• Investments in equipment during FY 2007 and FY 2008 will allow for new coin 

designs and new product capabilities, paving the way for growth in revenue by 

offering new products for the numismatic community. Examples of equipment 

related to these needs are edge-lettering equipment to comply with certain provisions 

in the Presidential $1 Coin Act and to develop other new products; automated 

packaging equipment; digital engraving to shorten the design process time; die 

coating equipment to improve die life and meet environmental goals; and laser 

frosting and automated die polishing equipment to develop new products. 

A Commitment To Its Workforce 

In 2006, the United States Mint began to plan to better position itself to meet future 

challenges. Underlying the challenges and efforts listed above, a transition will be 

necessary to achieve an organization that can handle the circulating coinage needs 

efficiently, while offering new products and the capability to grow the numismatic 

operations. As part of this effort, workforce plans began to be developed to successfully 

position the organization for the future. 

• The United States Mint remains committed to communicating with all employees to 

ensure that employees are treated fairly and with respect during this time of 

transformation. Included in plans for FY 2007 and FY 2008 are initiatives to address 

skill gaps and training needs within functional units and to organize the approach to 

address any identified changes. 

• The United States Mint has had success in focusing the organization on safety and 

health improvements. This is shown by the reduction in the Lost Time Accident rate 

per 200,000 hours worked, which improved to 0.79 through September 2006, 

compared with 0.94 during FY 2005 and 1.36 during FY 2004. 

Projected Full Time Equivalent (FTE) levels for both FY 2007 and FY 2008 are 

increasing slightly to 1,975 from actual usage of 1,927 in FY 2006. This reflects a 

reduction at Headquarters, which is offset by increases at the manufacturing plants to 

keep up with increased demand, especially for numismatic products and the new 

Presidential $1 coins. 

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Section 2 – Budget Adjustments and Appropriations Language 

2.2 – Operating Levels Table 

Dollars in Thousands 

Account Title: United States Mint FY 2006

Obligated

FY 2007

Estimated

FY 2008

Estimated

FTE 1,927 1,975 1,975

Object Classification:

11.1 Full-Time Permanent Positions...................... $ 119,009 $ 125,587 $ 129,274

11.1 Other than Full-Time Permanent Positions..... 1,447 55 55

11.5 Other Personnel Compensation..................... 11,966 15,098 15,416

11.8 Special Personal Services Payments............. - - -

11.9 Personnel Compensation (Total).................... - - -

12.0 Personnel Benefits......................................... 36,525 43,233 44,290

13.0 Benefits to Former Personnel......................... 137 1,581 956

21.0 Travel............................................................. 1,276 4,583 3,772

22.0 Transportation of Things................................ 42,364 28,169 28,072

23.1 Rental Payments to GSA............................... 802 30 28

23.2 Rent Payments to Others............................... 19,077 28,169 25,070

23.3 Communications, Utilities, & Misc.................. 15,636 26,050 24,569

24.0 Printing and Reproduction.............................. 2,504 7,774 7,121

25.1 Advisory & Assistance Services..................... 60,949 84,954 65,419

25.2 Other Services............................................... 63,215 93,077 39,264

25.3 Purchase of Goods/Serv. from Govt. Accts... - - -

25.4 Operation & Maintenance of Facilities............ - - -

25.5 Research & Development Contracts.............. - - -

25.6 Medical Care.................................................. - - -

25.7 Operation & Maintenance of Equipment......... 15,321 28,989 64,021

25.8 Subsistence & Support of Persons................. - - -

26.0 Supplies and Materials................................... 40,885 58,550 54,398

26.0 Metal and Fabrication..................................... 1,072,665 1,401,707 1,395,521

31.0 Non-Capital Equipment.................................. 2,219 1,798 1,646

33.0 Investments & Loans...................................... - - -

41.0 Grants, Subsidies........................................... - - -

42.0 Insurance Claims & Indemn........................... 20 156 143

43.0 Interest and Dividends.............................. - - -

44.0 Refunds.......................................................... - - -

 Depreciation 0 0 0

Total Operating................................................ $1,506,017 $1,949,560 $1,899,035

Object Classification

31.0 Capital Equipment.......................................... 16,249 25,296 26,734

32.0 Land and Structures....................................... 5,035 14,188 11,735

Total Capital..................................................... $21,284 $39,484 $38,469

Budget Activities:

Manufacturing and Sales 1,469,100 1,911,439 1,859,892

Protection 36,917 38,121 39,143

Total Budget Authority....................................... $1,506,017 $1,949,560 $1,899,035

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2B – Appropriations Language 

Appropriations Language Explanation of Changes 

DEPARTMENT OF THE TREASURY 

UNITED STATES MINT PUBLIC ENTERPRISE 

FUND 

Federal Funds 

Pursuant to section 5136 of title 31, United States Code, 

the United States Mint is provided funding through the 

United States Mint Public Enterprise Fund for costs 

associated with the production of circulating coins, 

numismatic coins, and protective services, including 

both operating expenses and capital investments. The 

aggregate amount of new liabilities and obligations 

incurred during fiscal year 2008 under such section 

5136 for circulating coinage and protective service 

capital investments of the United States Mint shall not 

exceed $33,200,000. 

2C – Legislative Proposals 

The United States Mint has no legislative proposals for FY 2008. 

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Section 3 – Budget and Performance Plan

3.1 – Resource Detail Table 

Dollars in Thousands 

FTE Actual FTE Estimated FTE Estimated %

Revenue:

 Circulating 520,102 980,016 837,587 -14.53%

 Comm. Quarters 751,756 680,225 686,575 0.93%

 Numismatic 1,051,593 1,050,000 1,050,000 0.00%

Total Revenue $2,323,451 $2,710,241 $2,574,162 -5.02%

Expenses:

 Manufacturing and Sales

 Circulating 326,463 453,642 408,145 -10.03%

 Comm. Quarters 269,206 413,771 410,441 -0.80%

 Numismatic 873,431 1,044,026 1,041,306 -0.26%

 Subtotal Manufacturing and Sales 1,547 $1,469,100 1,592 $1,911,439 1,592 $1,859,892 0.00% -2.70%

 Protection 380 36,917 383 38,121 383 39,143 0.00% 2.68%

 Capital Investments 21,284 39,484 38,469 -2.57%

Total Operating Expenses + Capital 1,927 $1,527,301 1,975 $1,989,044 1,975 $1,937,504 0.00% -2.59%

 Net Results $796,150 $721,197 $636,658 -11.72%

Coin Shipments (in Millions)

 Circulating:

Pennies 8,553 7,658 7,599 -0.77%

Nickels 1,461 1,558 1,541 -1.09%

Dimes 3,023 2,754 2,850 3.49%

Quarters 3,007 2,721 2,746 0.92%

Half Dollars 2 - - 0.00%

Dollars 60 550 400 -27.27%

Total Circulating 16,106 15,241 15,136 -22.87%

Numismatic 13 13 13 0.00%

Bullion 11 11 11 0.00%

% Change

FY 2006 to FY 2008

FY 2007

FY 2007 FY 2008

3A – Manufacturing ($1,859,892,000 from reimbursable programs): The United States 

Mint manufactures and sells coin products. For budget reporting purposes, these 

products are grouped into three programs: Circulating Coinage, 50 State Quarters, and 

Numismatic. 

Circulating Coinage includes the one-cent coin, five-cent coin, dime, half-dollar and 

dollar used to conduct trade and commerce. The focus of this program is to produce and 

deliver coins for circulation to meet the needs of the United States in a cost efficient and 

safe manner with state-of-the-art manufacturing technology and equipment. The United 

States Mint delivers the circulating coinage to the Federal Reserve Banks for distribution 

as demanded by commerce. 

The Resource Detail Table includes metal and manufacturing costs for the forecasted 

units plus administrative overhead and other non-production costs. These estimates are 

revised accordingly as economic conditions change and the plan year approaches. The 

current FY 2008 budget estimate includes resource needs of $408 million to produce and 

ship 12.4 billion coins and generate $838 million in face value. 

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By spending $408 million on circulating coinage in FY 2008, the United States Mint will 

produce and ship approximately: 

• 7.6 billion one-cent coins, generating face value of $76 million. 

• 1.5 billion five-cent coins generating face value of $77 million. 

• 2.8 billion dimes, generating face value of $285 million. 

• 400 million dollar coins, generating face value of $400 million. 

In FY 2007, the United States Mint will introduce the Presidential $1 Coin program

which commemorates the service of former Presidents of the United States in the order in 

which they served the nation. Four different coin designs will be minted each year. The 

year 2007 will feature Presidents Washington, Adams, Jefferson and Madison. The year 

2008 will feature Presidents Monroe, (John Quincy) Adams, Jackson and Van Buren. 

50 State Quarters Program 

The 50 State Quarters Program began in 1999 to commemorate and honor each of the 50 

states over a ten-year period. Five new commemorative quarter-dollar coins are 

produced each year. Each quarter’s reverse celebrates one of the 50 states with a design 

honoring that state’s unique history, traditions, and symbols. The quarters are released in 

the same order that the states ratified the United States Constitution or were admitted into 

the Union. The releases for 2007 are Montana, Washington, Idaho, Wyoming, and Utah. 

The 2008 quarters will depict designs for Oklahoma, New Mexico, Arizona, Alaska and 

Hawaii. The quarters are circulating coins; however, by statute, the revenue from this 

program is considered numismatic for budgetary reporting purposes. The program is 

displayed separately in the narrative and the financial schedules to present a clearer 

picture of its impact. The United States Mint plans to spend $410 million to produce and 

ship approximately 2.7 billion quarters, generating revenues of $687 million in FY 2008. 

Numismatic Program 

The Numismatic Program includes six types of coin products, which the United States 

Mint markets and sells to the public, including: 1) Bullion Coins, 2) American Eagle 

Proof Coins, 3) 24-karat Proof Program, 4) Recurring Coin Programs, 5) 

Commemorative Coins, and 6) Medals. The program focuses on providing quality 

products and services, expanding markets and supporting the long-term objectives. The 

current FY 2008 budget estimate includes resource needs of $1,041 million to generate 

$1,050 million in revenues from the sale of these products. 

Bullion coins are largely bought by precious metal dealers and sold to consumers who 

desire precious metals as part of an investment portfolio. Gold and platinum bullion 

coins are issued with one-tenth, one-quarter, one-half or one ounce precious metal 

content. Silver bullion coins are issued with one ounce of silver metal content. The 

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demand for bullion coins can be greatly affected by the performance of other investment 

options such as equities or currency markets, and therefore is highly unpredictable. As 

required by law in 2006, new 24-karat gold bullion coins were introduced, the American 

Buffalo Gold Coin Program, which complement the popular 22-karat gold bullion coins. 

24-karat (99.99 percent fineness) has become the global standard for gold investment 

coins. The new coins give investors a second option backed by the United States 

Government in the global precious metal market. 

American Eagle Proof coins are the United States Mint’s premier collectible products. 

These coins contain platinum, gold, and silver and are issued in proof quality. Gold and 

platinum proof coins are issued with one-tenth, one-quarter, one-half or one ounce 

precious metal content. Silver proof coins are issued with one ounce of silver metal 

content. The proof quality coins are considered numismatic products and are sold 

directly to consumers from the United States Mint, either as individual coins or in sets. 

Recurring products are circulating-derived products, such as proof sets; uncirculated sets; 

silver proof sets; and rolls and bags of quarter-dollars, half-dollars, and dollars designed 

for mass appeal. 

Commemorative coins are authorized by Congress to celebrate and honor American 

people, places, events, and institutions. Each commemorative program is produced by 

the United States Mint in limited quantity and is available only for a limited time. 

Included in the price of commemorative coins is a surcharge that is authorized to be paid 

to the designated recipient organizations for projects that benefit the community. In FY 

2007, the United States Mint will offer the Jamestown 400th Anniversary 

Commemorative Coin and the Little Rock Central High School Desegregation 50th

Anniversary Commemorative Coin Program. Public Law 108-289, dated August 6, 

2004, authorizes the production of a gold $5 coin and a silver $1 coin for the Jamestown 

Commemorative Coin. Public Law 108-146, dated December 22, 2005, authorizes the 

production of a silver dollar coin for the Little Rock Central High School Desegregation 

50th Anniversary Commemorative Coin Program. In FY 2008, the United States Mint 

will offer the American Bald Eagle Recovery and National Emblem Commemorative 

Coin Program. Public Law 108-486, dated December 23, 2004, authorizes the production 

of three coins for this program, one gold, one silver and one clad coin. 

Mint - 10 
3.2.1 – Manufacturing Budget and Performance Plan 

Manufacturing Budget Activity Includes Strategic Objective F3C

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Obligated Obligated Obligated Estimated Estimated

Financial Resources

 Appropriated Resources $0 $0 $0 $0 $0

 Other Resources 956,173 979,159 1,469,100 1,911,439 1,859,892

Total Operating Level $956,173 $979,159 $1,469,100 $1,911,439 $1,859,892

Human Resources

 Appropriated FTE 0 0 0 0 0

 Other FTE 1,764 1,681 1,547 1,592 1,592

Total FTE (direct and reimbursable) 1,764 1,681 1,547 1,592 1,592

Manufacturing Budget Activity Includes Strategic Objective F3C

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target $9.78 $7.03 $6.62 $7.27 $7.15

Actual $7.93 $7.42 $7.55

Cost per 1,000 Coin Equivalents ($)(E) 

Met Yes No No

Target 53 53 67 75 67

Actual 85 69 72

Cycle Time 

Met No No No

Target Baseline 0% 95% 96% 96%

Actual 0% 94% 95%

Order Fulfillment (%)(Oe)

Met Yes Yes Yes

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

Cost per 1000 Coin Equivalents 

The United States Mint’s costs vary by product, and the product mix has been variable 

over time. This makes it difficult to compare operating results from year to year. The 

coin equivalent calculation converts the production output to a common denominator 

based on the circulating quarter. Production costs, excluding metal and fabrication, are 

then divided by this standardized production level, thus resulting in “conversion costs per 

1,000 coin equivalents.” This allows comparison of performance over time by negating 

the effects of changes in the product mix. The Cost per 1,000 Coin Equivalents for FY 

2006 is 7.55, a slight increase from $7.42 in FY 2005. The performance did not meet the 

target of $6.62. This ambitious target was a stretch goal, an 11 percent drop from the FY 

2005 actual result, and was set based upon forecasted volume, product mix, and cost 

estimates. Differences in the actual volumes or the product mix from forecast affects the 

achievement of specific targets in any given year. 

3B – Protection ($39,143,000 from reimbursable programs): The United States Mint 

secures over $100 billion in market value of the nation’s gold reserves, silver, and other 

assets. The United States Mint Police protects assets while safeguarding United States 

Mint employees against potential threats at its facilities across the country. The United 

States Mint Police addresses possible threats by ensuring good perimeter security at all 

sites, and increasing coordination with various federal, state and local law enforcement 

agencies. It also ensures that proper policies are in place, and procedures followed, in 

handling the assets used to produce and transport coinage. 

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Plans include efforts to leverage new technology to automate entry and exit procedures at 

United States Mint facilities. Innovative threat assessment strategies will continue to be 

pursued to effectively prevent and counteract any security threats against its operations. 

3.2.2 – Protection Budget and Performance Plan 

Protection Budget Activity Includes Strategic Objective F3C

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Obligated Obligated Obligated Estimated Estimated

Financial Resources

 Appropriated Resources $0 $0 $0 $0 $0

 Other Resources 38,975 34,984 36,917 38,121 39,143

Total Operating Level $38,975 $34,984 $36,917 $38,121 $39,143

Human Resources

 Appropriated FTE 0 0 0 0 0

 Other FTE 351 335 380 383 383

Total FTE (direct and reimbursable) 351 335 380 383 383

Protection Budget Activity Includes Strategic Objective F3C

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline $31.86 $32 $32.99 $32.5

Actual $32.51 $32.43 $32.49

Protection Cost Per Square Foot ($) (E) 

Met Yes No No

Target Baseline $250,000 $15,000 $10,000 $5,000

Actual $3,109 $1,135 $0

Total Losses ($) (Oe) 

Met Yes Yes Yes

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

Description of Performance: Total losses through the third quarter FY 2006 were $0 

(zero) compared with $1,135 in FY 2005. This exceeds the target of $15,000. This 

measures the results of fraud cases (e.g., credit card fraud during the purchase of United 

States Mint products by the public), theft cases, or intrusions that cause damage to the 

bureau’s property. Cases that have been investigated and closed during the fiscal year are 

measured. 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treas.gov/offices/management/dcfo/accountability-reports/2006-

par/Part_IV_Appendices.pdf

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Section 4 – Supporting Materials 

4.1 – Human Resources Table 

Changes in Full Time Equivalents

Reimbursable FTE FY 2006 FY 2007 FY 2008

Base: Year-end Actual from Prior Year 2,015 1,927 1,975

Increases:

Reason #1: New Numismatic Production 48

Subtotal, Increases 0 48

Decreases:

Reason #1: Normal Attrition -88 0 0

Subtotal, Decreases -8800

Year-end Actual/Estimated FTEs 1,927 1,975 1,975

Budgeted FTEs 1,927 1,975 1,975

Net Change from prior year SOY to budget year EOY 48

0

4A – Human Capital Strategy Description 

To best position the United States Mint for the future, it created a Workforce Planning 

Steering Committee which led a major workforce planning effort that included senior 

leaders and managers to identify human capital needs and workforce levels over the next 

five years. Workforce planning is on-going, however, the initial results include: 

• Identification of human capital needs and workforce levels over the next five years in 

the context of the strategic plan and projected business environment and direction. 

• Comparison of current skill profile to future skill needs and identified skill gaps. 

 

• Recommended strategies to overcome identified skill gaps. 

• A forward-looking analysis of factors and expected trends impacting United States 

Mint specific occupations and the likely affect on employee recruitment, development 

and retention. 

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4.2 – Summary of IT Resources Table 

Dollars in Millions

Information Technology Investments

FY 2006 FY 2007 

Major IT Investments Budget Activity Operating Plan Obligations

Operating

Plan

Operating

Plan 

RS2 (ESPII - Electronic Commerce)

Manufacturing and Sales 11.6 10.5 4.8 -54.3% 4.8 0.0% 

Total Major IT Investments $11.6 $10.5 $4.8 -54.3% $4.8 0.0% Non-Major IT Investments $4.2 $3.8 $4.6 21.1% 5.5 19.0% Infrastructure Investments $36.3 $33.8 $37.0 9.5% $38.7 4.4% Enterprise Architecture $1.0 $1.0 $1.6 60.0% $1.3 -18.8% Total IT Investments $53.1 $49.1 $48.0 -2.2% $50.2 4.6% 

FY 2005 % Change 

from FY05 

Actuals to

FY06

% Change 

from FY06 to 

FY07

Mint - 14 
4B – Information Technology Strategy 

The United States Mint’s capital projects are focused on improving processes, developing 

new coin design capabilities, and expanding information handling. These investments 

are planned to reduce costs, shorten the overall time from product concept to production, 

and achieve greater flexibility to respond to shifts in market demands. The following 

major IT investment is planned for 2008: 

Retail Sales System 

The Retail Sales System (RS2), formerly reported as the e-Business Solution Project 

(eSP), was developed in response to a growing need to meet the rapidly expanding 

numismatic market and to take advantage of new technology that would better support 

business requirements. RS2 was designed to meet high public demand for E-Government 

services and provide an easy and secure way for customers to order products directly 

from the United States Mint. An integrated mail order and cataloging system supports 

both the United States Mint's core mission. 

FY 2006

Obligations

FY 2007

Estimated

FY 2008

Estimated

Circulating & Protection Capital Investments

Circulating Information Technology $1.722 2.215 1.264

Circulating Building Improvements $1.669 7.080 6.196

Circulating Equipment $2.621 7.670 8.555

Protection $3.070 9.555 8.940

Total Circulating and Protection $9.082 26.520 24.955

Numismatic Capital Investments

Numismatic Information Technology $0.458 2.215 1.264

Numismatic Building Improvements $0.478 2.153 2.050

Numismatic Equipment $11.266 8.596 10.200

Total Numismatic $12.202 12.964 13.514

Total Capital Investments $21.284 39.484 38.469

The above FY 2006 totals by budget activity are different than those reflected in the President's Budget due to a

data entry error in the MAX system (numbers were transposed). The capital investment obligations reflected in this

table are correct.

Major Investments

The United States Mint’s FY 2008 total circulating and protection capital estimate is 

$25.0 million, which is $8.2 million below the total projected circulation and protection 

depreciation (capital limit) amount of $33.2 million. Therefore, no additional budget 

authority for capital investments is needed in FY 2008. 

Each year, the United States Mint commits funds for capital projects to maintain, upgrade 

or acquire physical structures, equipment, physical security, and information technology 

systems. Total capital projects are estimated to be $38.5 million in FY 2008. This 

includes approximately $16.1 million for circulating projects, $8.9 million for security 

improvement projects, and $13.5 million for numismatic projects. 

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4.3 – PART Evaluation Table 

PART Name: Coin Production

Year PARTed: 2002

Rating: Effective

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

1. The Mint has established performance measures focused on customer satisfaction and improving cost

efficiencies. For instance, the Mint reports the results of a Federal Reserve Board Customer Satisfaction

survey.

2. The Mint needs to improve customer satisfaction survey scores.

3. Establishing a performance target to reduce the time rquired to process raw materials into produce coins.

2. Competing customer service and order mailing staff to determine if contractors could handle these

functions more efficiently.

3. The Mint has shown some efficiency improvements in achieving reduced manufacturing costs. The Mint 

has achieved a 19 percent reduction in manufacturing costs since 1997.

1. Reducing the maintenance down time of coin manufacturing machinery.

PART Name: Numismatic Program

Year PARTed: 2004

Rating: Effective

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

2. Continuing to streamline the production of numismatic products in order to reduce costs and improve

efficiency.

1. The program has made enormous strides over the past several years to streamline the production of 

numismatic products. Between 1999 and 2003, the Mint reduced costs by 38 percent and reduced 

workforce by 50 percent. During that same time period, production levels increased by 46 percent.

2. The Mint has an excellent internal management structure that is able to receive and analyze real-time

financial, production, and other operating data on a daily basis. This enables the Mint to respond quickly to

changing production and customer demand.

3. The Mint is making significant progress toward meeting its inventory turnover target of 4.2 in 2005, which 

reflects the number of times per year the Mint works through its inventory. This measure improved 27

percent from 1.96 in 2003 to 2.48 in 2004. By improving performance, the Mint reduces costs associated

with inventory and the production planning process runs more efficiently.

1. Continuing substantial progress toward reaching the Mint's target goal for inventory turnover.

PART Name: Protection Program

Year PARTed: 2005

Rating: Effective

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

2. Continue to improve employee confidence in the United States Mint protection program.

2. The United States Mint's Protection program has a clear purpose, is well planned, and managed 

effectively. However, it is somewhat duplicative of other Federal efforts aimed at protecting money, such as 

the Bureau of Engraving and Printing, and the Federal Reserve Police forces.

3. The United States Mint regularly achieves its annual performance goals and works with other law 

enforcement partners to assess threat levels and assist in achieving future goals. The United States Mint is 

a participant in the multi-agency Counter-Terrorism Program.

1. The United States Mint has developed adequate long-term measures with ambitous targets and 

timeframes. The target for total losses is $250,000 in 2005 and $0 in 2010

1. Continue to assess and implement ways in which the cost of protection per square foot can be 

For a complete list of PART results visit the following website: 

http://www.whitehouse.gov/omb/expectmore/all.html

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