United States Mint

Program Summary by Budget Activity

Dollars in thousands 

Budget Activity FY 2011 FY 2012 FY 2013 FY 2012 TO FY 2013

 Actual Estimated Estimated $ Change % Change

 Manufacturing $4,623,384 $3,806,838 $3,451,746 ($355,092) -9.33%

Protection $51,506 $0 $0 $0 NA

Total Cost of Operations $4,674,890 $3,806,838 $3,451,746 ($355,092) -9.33%

FTE 1,787 1,847 1,772 (75) -4.06%

The Department of the Treasury eliminated the Protection budget activity and consolidated it into the Manufacturing 

budget activity beginning in FY 2012.

Summary

The United States Mint supports the 

Department of the Treasury’s strategic goal to 

enhance United States competitiveness and 

promote international financial stability and 

balanced global growth. 

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. Revenues in 

excess of amounts required by the PEF are 

transferred to the United States Treasury 

General Fund. 

The United States Mint’s key priorities for FY 

2013 include:

 Circulating - Efficiently and effectively 

mint and issue approximately 8.4 billion 

circulating coins in FY 2013 to meet the 

needs of commerce.

 Bullion - Mint and issue bullion coins 

while employing precious metal 

purchasing strategies that minimize or 

eliminate the financial risk that can arise 

from adverse market price fluctuations.

 Numismatic - Produce and distribute 

numismatic products in sufficient 

quantities to make them accessible, 

available, and affordable to people who 

choose to purchase them. Design, strike 

and prepare for presentation Congressional 

Gold Medals and commemorative coins, as 

required by law.
 Protection - Continue to secure over $400 

billion in market value of the nation’s gold 

reserves, silver and other assets.

FY 2013 United States Mint estimated total 

revenues are $3,558,600,000, total expenses 

are $3,451,746,000, of which $31,410,000 are 

capital investments, and net results are

$106,854,000 in earnings.

US Mint FY 2013 Budget Highlights

Dollars in thousands

United States Mint FTE Amount

FY 2012 Estimated 1,847 $3,806,838

Changes to Base:

Maintaining Current Levels 

(MCLs):

- $40,470

Maintaining Current Levels - $40,470

Non-Recurring Costs: - ($353,049)

Forecast Net Reduction in 

Required Purchase of Metal 

Raw Materials

- ($347,049)

Reductions in Product Delivery 

Costs

- ($6,000)

Efficiency Savings: (75) ($42,513)

Manufacturing Process 

Improvements

- ($1,465)

FTE Reductions (all 

departments)

(75) ($3,245)

IT Service Management - ($798)

Green Initiatives - ($674)

Voice Over Internet Protocol 

(VOIP)

- ($170)

Contract Savings - ($13,700)

Restructure Information 

Technology Architecture 

Roadmap

- ($10,700)

Space Consolidation - ($9,200)

Discontinue Expedited 

Shipping Costs

- ($1,500)

Reduced Travel Costs - ($650)

IT Asset Refresh - ($411)

Subtotal FY 2013 Changes to 

Base

(75) ($355,092)

Total FY 2013 Base 1,772 $3,451,746

Total FY 2013 Estimated 1,772 $3,451,746

FY 2013 Budget Adjustments

Maintaining Current Levels (MCLs) 

Maintaining Current Levels +$40,470,000 / 

+0 FTE

Funds are requested for inflation adjustments 

(1.7 percent) in non-labor expenses such as 

GSA rent adjustments, postage, supplies and 

equipment and health benefits and the increase 

in Federal Employees Retirement System 

participation. Funds are also requested for the 

proposed 2013 pay raise (0.5 percent).

Non-Recurring Costs

Forecast Net Reduction in Required Purchase 

of Metal Raw Materials -$347,049,000 / +0 

FTE

The Mint’s costs for metal follow coin 

demand, metal purchase projections are down 

for FY 2013.

Reductions in Product Delivery Costs 

-$6,000,000 / +0 FTE

Numismatic sales and product delivery costs 

are anticipated to decline in FY 2013.

Efficiency Savings 

Manufacturing Process Improvements 

-$1,465,000 / +0 FTE

The Mint at Philadelphia developed a new 

blank preparation process that reduces friction 

between dies and blanks, improves the quality 

of coinage, and doubles die life, increasing 

operational efficiency.

FTE Reductions (all departments) -$3,245,000

/ -75 FTE

As a result of process improvements, 

efficiency gains and reduced production levels, 

the Mint’s workforce has gradually declined 

through natural attrition across all 

departments.

IT Service Management -$798,000 / +0 FTE

This project automates and enhances the 

Mint’s ability to support internal and external 

customers, improve efficiency and upgrades 

maintenance capabilities of its information 

technology infrastructure.

Green Initiatives -$674,000 / +0 FTE

The Mint Headquarters building in 

Washington, D.C. has been ENERGY STAR 

certified. The Headquarters building is 

experiencing significant savings and reducing 

its carbon footprint.
Voice Over Internet Protocol (VOIP) 

-$170,000 / +0 FTE

The Mint is implementing Voice Over Internet 

Protocol and this technology is expected to 

reduce telecommunications maintenance costs.

Contract Savings -$13,700,000 / +0 FTE

Savings are expected to result from continued 

re-evaluation of purchase orders for strategic 

sourcing opportunities, and through continued 

efforts to renegotiate more advantageous 

contract terms. 

Restructure Information Technology 

Architecture Roadmap -$10,700,000 / +0 FTE

This effort aims to restructure and simplify the 

Mint’s information technology environment, 

eliminate redundant applications and integrate 

all components that need to draw data from a 

common data source. 

Space Consolidation -$9,200,000 / +0 FTE

The Mint will eliminate the space previously 

needed to house some of its employees at the 

799 9th Street building. All of the Mint’s 

Headquarters employees will be relocated to 

one building at 801 9th Street. 

Discontinue Expedited Shipping Costs 

-$1,500,000 / +0 FTE

With the implementation of its new Order 

Management System, the Mint will adjust its 

shipping methods to reduce shipping costs and

potentially lower product prices.

Reduced Travel Costs -$650,000 / +0 FTE

By increasing the use of videoconferencing to 

perform mission critical requirements, the 

Mint expects to considerably reduce its travel 

costs.

IT Asset Refresh -$411,000 / +0 FTE

By replacing desktop computers with a laptop 

and docking station, the Mint can realize 

substantial cost savings, increase staffing 

productivity and flexibility, and reduce IT 

maintenance costs.

Explanation of Budget Activities

Manufacturing ($3,451,746,000 from 

revenue/offsetting collections)

The United States Mint has one budget 

activity: Manufacturing. This budget activity 

encompasses the bureau’s three major 

programs: circulating coinage, bullion coins, 

and numismatic coin products.

Circulating Coinage

The primary mission of the Mint is to enable 

commerce by minting and issuing circulating 

coinage to meet the needs of the United States. 

Circulating coinage includes the one-cent 

(penny), 5-cent (nickel), dime, and quarterdollar coins. The Mint delivers circulating 

coinage to the Federal Reserve Banks at face 

value for subsequent distribution to the 

commercial banking system as required to 

transact commerce.

The Secretary of the Treasury has directed the 

United States Mint to suspend minting and 

issuing circulating Presidential $1 Coins 

beginning in calendar year 2012. Section 

5111(a)(1) of Title 31, United States Code, 

states that the Secretary ―shall mint and issue 

coins described in Section 5112 of this title in 

amounts the Secretary decides are necessary to 

meet the needs of the United States.‖ 

Currently, the FRBs hold nearly 1.4 billion $1 

coins in inventory. Based on current trends, 

the Federal Reserve estimates that the FRBs’ 

inventories of $1 coins are sufficient to meet 

the needs of the United States for the next 

several years. Regular circulating demand will 

be met through the FRBs’ existing inventories 

of $1 coins. Even though circulating $1 coin 

production has been suspended, the Mint 

forecasts positive seigniorage during the next 

two fiscal years.
Bullion Program

The Mint produces bullion coins under 

American Eagle, American Buffalo, and 

America the Beautiful Silver Bullion Coin 

Programs to fulfill investor demand. Bullion 

coins are largely bought by precious metal 

dealers and sold to consumers who desire 

precious metals as part of an investment 

portfolio. The demand for bullion coins is 

greatly influenced by the performance of other 

investment options, such as equities markets or 

currency markets, and therefore is highly 

unpredictable. The content and purity of 

bullion coins are backed by the United States 

Government.

Numismatic Program

The Mint produces and distributes numismatic 

products, including proof and uncirculated

versions of coins, directly to the public and 

other customers. For some numismatic 

products, authorizing legislation specifies 

program requirements, such as design theme, 

mintage level and duration of product 

availability. Other programs are structured by 

law to grant the Secretary of the Treasury 

discretion in determining product 

specifications. The Numismatic Program 

includes the American Eagle Program, the 

American Buffalo Program, the America the 

Beautiful Quarters Program, the Presidential 

$1 Coin Program, recurring programs, 

commemorative coins and medals, and 

occasional special projects.

Legislative Proposals

Sec. 122. Coinage Materials Modernization 

Act (CMMA)

The recently passed Coin Modernization, 

Oversight and Continuity Act (Act) (CMOCA) 

(Public Law 111-302) provides the Secretary 

R&D authority; it does not give the Secretary 

the flexibility and agility to approve coinage 

materials that would result in significant longand short-term savings to the taxpayers. 

Requiring legislation for each change in coin 

composition will greatly slow the process. As 

metal prices are extremely volatile, the delay 

incurred by proposing and passing legislation 

could result in the new compositions being 

outdated by the time of their enactment.

Increasing metal prices have driven production 

costs to exceed the face value of one-cent 

coins (pennies) and 5-cent coins (nickels) 

since FY 2006, and have deteriorated the 

returns realized from other circulating coinage. 

Should the total cost of producing coins ever 

exceed their face value (thereby reducing 

seigniorage) the United States Mint has 

reserved $248.8 million in its PEF to pay for 

capital expenditures and unplanned expenses. 

Although unlikely, if results are worse than 

expected, and the United States Mint is 

required to exhaust the $248.8 million in its 

PEF, the United States Mint could eventually 

require an appropriation or borrowing 

authority to fund circulating operations.

The Mint is proposing legislative changes that 

would modernize the Nation’s coinage 

materials for the first time since 1965. 

Specifically, these changes would amend 31 

U.S.C. § 5112(a)-(c) to grant the Secretary the 

same authority he presently possesses with 

respect to the $1 coin—that is, the authority to 

prescribe the weights and compositions of all 

circulating coins, and to provide the Secretary 

flexibility to change the composition of coins 

to more cost-effective materials.

The proposed amendments would allow the 

Secretary to explore, analyze, and approve 

new, less expensive materials for all 

circulating coins based on factors that he 

determines to be appropriate. Such factors 

may include physical, chemical, metallurgical 

and technical characteristics; material, 

fabrication, minting, and distribution costs; 

material availability and sources of raw 

materials; coinability; durability; effects on 
sorting, handling, packaging and vending 

machines; risks to the environment and public 

safety; appearance; resistance to 

counterfeiting; and commercial and public 

acceptance. 

Sec 123. .999 Silver Proof Sets

Under current law, the half-dollar, quarterdollar and dime coins in silver proof sets ―shall 

be made of an alloy of 90 percent silver and 10 

percent copper.‖ Allowing the Mint to have 

flexibility in this composition improves 

efficiency in the process of manufacturing 

silver proof sets and lowers the Mint’s 

production costs for these products. The Mint 

recommends pursing a change to the law such 

that the coins in silver proof sets would be 

required to be no less than 90 percent silver. 

The lowering of production costs translates to 

savings that would be passed on to the 

customer as with other numismatic products, 

and efficiency gains in production that may 

result in some modest annual savings.

Sec 124. Eliminate the 20 percent requirement 

in the Native American $1 Coin Act

This legislative proposal seeks to eliminate the 

requirement that the number of $1 coins 

minted and issued in a year with the 

Sacagawea-design on the obverse be not less 

than 20 percent of the total number of 

circulating and numismatic $1 coins minted 

and issued in a year. Approval of this proposal 

would allow the United States Mint to mint 

and issue all $1 coins in amounts necessary to 

meet public demand for coins of each 

particular design. Currently, Federal Reserve 

Banks (FRBs) hold nearly 1.4 billion $1 coins 

in their inventories. These excessive 

inventories resulted from depository 

institutions re-depositing with the FRBs 

significant amounts of $1 coins. To address 

the excess $1 coin inventory problem, the 

United States Mint effectively has suspended 

the production of all $1 coins for circulation, 

and will mint and issue $1 coins solely for 

numismatic purposes until the FRBs have 

drawn down these excessive inventories. As a 

consequence, the elimination of the 20-percent 

requirement is sensible at this time because it 

avoids the need to mint and issue Native 

American $1 Coins in excess of the amounts 

that numismatic customers demand.

Remove Sec. 113. 

For FY 2013, Treasury proposes to remove 

section 113 from the FY 2012 bill which 

requires approval of Congressional committees 

prior to implementing cooperative 

arrangements between the United States Mint 

and the Bureau of Engraving and Printing 

(BEP). This change would increase 

Treasury’s flexibility to use the Economy Act 

to implement potential cooperative efforts 

such as shared administrative services that 

could reduce unnecessary duplication of effort 

and thus improve cost efficiency at the BEP 

and at the United States Mint. Treasury would 

still consult with the Committees on any major

reorganization as required by section 608.
US Mint Performance by Budget Activity

Budget Activity Performance Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Target Target

Manufacturing Customer Satisfaction Index (%) 88.3 86.1 91.7 92.0 93.0

Manufacturing Numismatic Sales Units (Million 

Units)

N/A N/A 7.3 7 7

Manufacturing Seigniorage per Dollar Issued ($) .55 .49 .45 .17 .14

Key: DISC - Discontinued and B - Baseline

Description of Performance

Seigniorage per Dollar Issued

Seigniorage is the financial return on 

circulated coinage shipped to the FRB and the 

public. It measures the cost-effectiveness of 

the United States’ circulating coinage. 

Seigniorage per dollar issued was $0.45 in FY 

2011, above the performance target of $0.41. 

Results exceeded the target because the mix of 

ordered coins shifted toward higher 

denominations, which made up 10 percent of 

total shipments.

The Mint expects seigniorage per dollar issued 

to decline in future years because of 

significant changes to the denomination mix of 

coins – primarily, a decrease in $1 coins in FY 

2012. The performance target for seigniorage 

per dollar issued is $0.17 for FY 2012 and 

$0.14 for FY 2013. 

Customer Satisfaction Index (CSI)

A United States Mint contractor conducts a 

quarterly Customer Satisfaction Measure 

(CSM) Tracking Survey among a random 

sample of active customers. The CSM Survey 

is intended to capture customer satisfaction 

with the United States Mint’s performance as a 

coin supplier and the quality of specific 

products. The CSI is a single quantitative 

score of CSM Survey results. The United 

States Mint’s CSI reached 91.7 percent in FY 

2011, above the target of 88.0 percent. 

Numismatic Sales Units

The numismatic sales units metric indicates 

the number of coin products sold to the public 

from numismatic operations. It quantifies the 

demand for the Nation’s official numismatic 

products. Increases in units sold allow the 

Mint to potentially reduce product unit costs 

and thus product sales prices, since fixed costs 

would be spread over a greater number of 

units. Increased unit sales also indicate greater

demand for the Mint’s products.

Numismatic sales units totaled 7.3 million in

FY 2011, exceeding the target of 7.0 million. 

Performance improved due to strong sales of 

American Eagle numismatic products and the 

release of the 2011 United States Mint annual 

coin sets earlier in the calendar year.