Bureau of Engraving and 

Printing

FY 2016

President’s Budget

February 2, 2015
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Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

1.1 – Resource Detail Table........................................................................................................ 3

1B – Vision, Priorities and Context............................................................................................ 3

Section 2 – Budget Adjustments and Appropriation Language............................................... 7

2.1 – Budget Adjustments Table................................................................................................. 7

2A – Budget Increases and Decreases Description..................................................................... 7

2.2 – Operating Levels Table...................................................................................................... 9

2C – Legislative Proposals.......................................................................................................... 9

Section 3 – Manufacturing Budget and Performance Plan .................................................... 10

3A – Manufacturing.................................................................................................................. 10

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

Section 4 – Supplemental Information...................................................................................... 12

4A – Summary of Capital Investments..................................................................................... 12
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Section 1 – Purpose

1A – Mission Statement

To develop and produce United States currency notes trusted worldwide.

1.1 – Resource Detail Table

Dollars in Thousands

Bureau of Engraving and Printing FY 2014 FY 2015 FY 2016 FY 2015 to FY 2016

Budgetary Resources Actual Estimated Estimated $ Change % Change

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections

Other Income

Federal Reserve Notes 0 690,801 0 727,467 0 848,940 0 121,473 .00 16.69%

Other Security Products 0 5,000 0 5,000 0 5,000 0 0 .00 N/A

Currency Reader Program 0 5,000 0 46,125 0 10,000 0 (36,125) .00 -78.32%

Total Revenue/Offsetting Collections 0 700,801 0 778,592 0 863,940 0 85,348 .00 10.96%

Expenses/Obligations

Manufacturing

Direct Manufacturing 747 324,500 774 474,092 764 521,624 (10) 47,532 -1.30% 10.00%

Indirect Manufacturing 1,178 408,708 1,170 304,500 1,160 342,316 (10) 37,816 -0.85% 12.42%

Total Expenses/Obligations 1,925 733,208 1,944 778,592 1,924 863,940 (20) 85,348 -1.03% 10.96%

Net Results 0 (32,407)1 0 0 0 0 0 0 .00 N/A 1 Pop-up budget authority from sequestration

1B – Vision, Priorities and Context

The Bureau of Engraving and Printing produces US currency notes ordered by the Federal 

Reserve Board. The Bureau 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. This fund is reimbursed for direct 

and indirect costs of operations, including administrative expenses, through product sales. In 

1977, Public Law 95-81 authorized the Bureau 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 appropriations from Congress.

The Bureau also provides technical assistance and advice to other Federal agencies in the design 

and production of documents that require counterfeit deterrent features, due to their innate value 

or other characteristics. Other activities at the Bureau include engraving plates and dies; 

manufacturing inks used to print security products; purchasing materials, supplies and 

equipment; and storing and delivering products in accordance with customer requirements. 

The mission of the Bureau of Engraving and Printing (BEP) is to develop and produce United 

States currency notes, trusted worldwide, in support of Treasury’s strategic objective of

“Facilitate commerce by providing trusted U.S. currency, services, and products for the 

American public and enterprises.”
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United States currency is used globally and, as its designer and manufacturer, BEP needs to 

achieve and maintain best in class practices in order for U.S. currency to be accepted worldwide. 

After years of research and development of cutting edge technologies, BEP is producing a new 

$100 note that includes some of the most advanced counterfeit design features found anywhere 

in the world. This achievement requires the focus and determination of the entire agency and is 

indicative of the challenges that lie ahead of BEP in its commitment to continuous redesign of 

US currency to stay ahead of increasingly sophisticated counterfeiters. 

FY 2016 Priorities

Achieve BEP’s strategic goals - Produce U.S. currency that functions flawlessly in commerce; 

create innovative currency designs to provide effective counterfeit deterrence and meaningful 

access to currency note usage for all; achieve organizational excellence and customer satisfaction 

through balanced investment in people, processes, facilities, and technology.

Product quality - Produce and deliver currency notes ordered by the Federal Reserve Board that 

consistently meet the customer’s high quality standards. 

Counterfeit Deterrence – Conduct research and development, and collaborate with key 

stakeholders in order to deter counterfeiting and maintain the public’s trust in the security and 

reliability of U.S. currency notes.

Meaningful Access – Assist users of U.S. currency, including the blind and visually impaired, 

with the use and denomination of currency.

During FY 2016, BEP expects to produce and deliver 8.3 billion notes to the Federal Reserve 

Board to meet currency demand. The FY 2016 order represents a 13 percent increase over the 

number of notes expected to be delivered in the FY 2015 program. In order to meet continued 

international demand, the FY 2015 order includes a large proportion of the more costly, higher 

denomination notes. We expect a similar portion of higher denomination notes in the FY 2016 

order. 

Over the last decade, research and development of new technologies for possible use in currency 

production have been a priority at the Bureau as more sophisticated counterfeit deterrent features 

are needed to protect future generations of currency notes. Via its website www.bep.gov and 

other Federal business opportunity websites, BEP seeks information about obtaining, testing and 

evaluating technologies or materials that may have potential application in the development of 

new counterfeit deterrent features in currency notes. Technologies or materials submitted for 

consideration are reviewed for inherent and relative effectiveness as potential new security 

features. In addition, they are reviewed for compatibility with design, potential production 

factors, durability and environmental acceptability. After obtaining submitter approval, BEP 

may also request experts working under government contracts to provide technical evaluation 

and adversarial analysis of possible counterfeit deterrent features. Features of interest include 

ink (intaglio, typographic and off-set) and ink additives, alternate and traditional substrates 

(paper or other media), substrate additives, design elements or techniques, diffractive, reflective, 

or other optically variable materials, laminated materials, hot-stamped materials, and others.
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BEP supports a comprehensive anti-counterfeiting program built around effective note design, 

public education and aggressive law enforcement. The Bureau will continue its work in 2016

with the Advanced Counterfeit Deterrent (ACD) Steering Committee to research and develop 

future currency designs for the next family of resigned notes that will enhance and protect U.S. 

currency notes. The ACD Committee includes representatives from BEP, the Department of the 

Treasury, the U.S. Secret Service, and the Federal Reserve Board.

Work will continue in FY 2016 on the goal of enabling the Nation’s currency to better serve 

domestic and international users. The Bureau will be incorporating features into the next 

redesign of currency that will assist every American to better use and denominate currency. In 

addition, BEP will continue its efforts to research and develop tactile features that will enhance 

future note designs. Testing and refinement of features will continue to determine which 

processes and potential features work best at the production volumes needed for U.S. currency. 

While no timetable has been set for the introduction of this currency, the next redesign will 

incorporate changes to make U.S. currency more accessible to those who are blind and visually 

impaired. 

Treasury is continuing its comprehensive review of U.S. currency including a review of both the 

production and use of coins, in order to efficiently promote commerce in the 21st Century. 

Treasury expects to announce the results of its review this fiscal year.

The Bureau’s FY 2016 Budget requests funding to continue the BEP Currency reader 

distribution program in coordination with the Library of Congress’ National Library Service.

Under this program, United States citizens and legal residents who are blind or visually impaired 

are provided a currency reader free of charge to aid in the denomination of US currency.

In addition, funding is requested to continue the Currency Quality Assurance (CQA) Program. 

The Bureau, in collaboration with the Federal Reserve Board and other stakeholders, developed a 

robust Currency Quality Assurance (CQA) Program that began in 2014. This re-invention is 

moving BEP from a reliance on a reactive approach of quality control of inspecting to remove 

poor quality notes to a pro-active approach of building quality in. Throughout FY 2015 and FY 

2016, the Bureau will continue to fill skill gaps with respect to production engineers, quality 

assurance specialists and other specialists in related science and engineering disciplines, while 

reorganizing to become quality focused and customer driven, leaner, flexible and nimble, and 

accountable for results. The completion of this aggressive change management process will 

improve the work place and engage employees to drive continuous improvement throughout the 

organization. 

Funding is also requested to support BEP’s Phase II of a retooling equipment project which 

includes an equipment replacement plan, tactile feature testing equipment, labor 

relations/staffing strategy and alternatives for material handling.

BEP also requests FY 2016 funds to support the acquisition of architecture & engineering

services and a construction management contactor to perform architectural, environmental, and 

related services in support of a new facility project. The Federal Reserve Board supports and 

will pay for a replacement of the Washington, DC facility with a new, smaller more efficient 
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facility in the Washington metro area. BEP’s current facility has an aging and outdated 

infrastructure, which drives up costs and adversely impacts quality. In addition, future 

production equipment upgrades and production processes (i.e. the application of tactile features, 

new counterfeit deterrent features) will soon exceed the support capacity of the current 

Washington, DC facility. It is estimated that the process of putting a new facility into production 

will take 10 years.

FY 2015 Priorities

The importance of producing and delivering currency of consistently high quality, note after 

note, cannot be overstated. The prevalent use of the $100 note throughout the world and its 

global reputation as a store of value requires the production of the new $100 note to continue at 

increased levels through FY 2015. Increased production of the redesigned $100 note is in 

support of the transition from old note designs to new designs and to meet demand in the U.S. 

and abroad. The Federal Reserve estimates that as many as two-thirds of all $100 notes circulate 

outside the United States. This provides a significant economic benefit to the United States.

BEP is in the process of acquiring equipment that will enable the addition of tactile features to 

U.S. currency as well as continue the multi-year effort to retool BEP’s manufacturing processes 

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

equipment. The successful implementation of this advanced technology will improve 

productivity, reduce the environmental impact, and enhance counterfeit deterrence of U.S. 

currency.

Key Accomplishments

In 2014, as part of its launch of the U.S. Currency Reader Program, the Bureau of Engraving and 

Printing distributed currency reader devices to eligible American Council of the Blind members 

at their convention in July. Additional readers were also disseminated at several other 

conferences for the blind and visually impaired during August 2014.

A broader launch of the U.S. Currency Reader Program will be in two phases, a four month pilot 

program followed by a national rollout. The pilot program began on September 2, 2014, in 

partnership with the National Library Service for the Blind and Physically Handicapped, Library 

of Congress (NLS). During the pilot NLS patrons were able to pre-order a currency reader; to 

date, almost 6,000 currency readers have been pre-ordered. The pilot program allowed the 

Bureau to test its ordering and distribution processes and gauge demand for currency readers.

A national rollout of the iBill Talking Money Identifier currency reader began on January 2, 

2015. Currency Readers are widely available to all U.S. citizens, or persons legally residing in 

the U.S. who are blind or visually impaired. To request a currency reader, individuals must 

submit an application, signed by a competent authority certifying eligibility. It is estimated that 

120,000 readers will be distributed in 2015. It is also assumed that the majority of Currency 

Readers will be distributed in 2015, however readers will continue to be distributed in 2016 and 

beyond in numbers necessary to meet public demand.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

Bureau of Engraving and Printing FTE Materials Operating & 

Capital Total

FY 2015 Revised Estimate 1,944 $292,250 $486,342 $778,592

Changes to Base:

Maintaining Current Levels (MCLs): - - $7,848 $7,848

Pay-Raise - - $2,418 $2,418

Pay Annualization - - $618 $618

FERS Contribution Increase - - $842 $842

Non-Pay - - $3,970 $3,970

Efficiency Savings: - - ($1,500) ($1,500)

Reduced Labor Costs Due to Spoilage Reductions - - ($1,500) ($1,500)

Subtotal Changes to Base - - $6,348 $6,348

Total FY 2016 Base 1,944 $292,250 $492,690 $784,940

Program Changes:

Program Decreases: (20) - ($11,000) ($11,000)

Attrition Without Backfill (Goal 20 FTE) (20) - ($2,500) ($2,500)

Reduced Lease Parking Spaces - - ($250) ($250)

Water Usage Reduction/Recycling - - ($750) ($750)

Defer Targeted Facilities Investments - - ($7,500) ($7,500)

Program Increases: - - $90,000 $90,000

New Facility - - $40,000 $40,000

Phase II - Retooling (Scheduled Replacement of 

Obsolete Production Equipment) - - $50,000 $50,000

Total FY 2016 Estimated 1,924 $292,250 $571,690 $863,940

2A – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ......................................................+$7,848,000 / +0 FTE

Pay-Raise +$2,418,000 / +0 FTE 

Funds are required for the proposed January 2016 pay-raise.

Pay Annualization +$618,000 / +0 FTE 

Funds are required for the annualization of the January 2015 pay raise.

FERS Contribution Increase +$842,000 / +0 FTE 

Funds are required for increases in agency contributions to the Federal Employee Retirement 

System based on updated actuarial estimates.

Non-Pay +$3,970,000 / +0 FTE 

Funds are required for inflation adjustments in non-labor costs such as travel, contracts, rent, 

supplies, and equipment.

Efficiency Savings ......................................................................................-$1,500,000 / +0 FTE

Reduced Labor Costs Due to Spoilage Reductions -$1,500,000 / +0 FTE 

As a result of CQA driven improvements, BEP anticipates better production yields which will in 

turn reduce overtime costs.
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Program Decreases .................................................................................-$11,000,000 / -20 FTE

Defer Targeted Facilities Investments -$7,500,000 / +0 FTE 

Continue to defer facility improvements to the DC facility pending the building replacement 

proposal.

Attrition Without Backfill (Goal 20 FTE) -$2,500,000 / -20 FTE 

By not backfilling targeted employee vacancies, BEP plans for cost savings in Labor and 

Benefits

Water Usage Reduction/Recycling -$750,000 / +0 FTE 

Reduction in water and chemical usage in processing waste water/wiping solution recycling from 

new waste water recycling plant.

Reduced Lease Parking Spaces -$250,000 / +0 FTE 

BEP will reduce leased parking space costs

Program Increases ..................................................................................+$90,000,000 / +0 FTE

New Facility +$40,000,000 / +0 FTE 

Architecture & engineering services and a construction management contactor to perform 

architectural, environmental, and related services

Phase II - Retooling (Scheduled Replacement of Obsolete Production Equipment) +$50,000,000 

/ +0 FTE 

Replacement of fully depreciated production equipment at both BEP facilities.
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2.2 – Operating Levels Table

Dollars in Thousands

Bureau of Engraving and Printing FY 2014 FY 2015 FY 2016

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent 166,850 173,523 175,357

11.3 - Other than full-time permanent 1,000 200 200

11.5 - Other personnel compensation 2,250 2,250 2,250

11.6 - Overtime 17,000 16,500 17,000

11.9 - Personnel Compensation (Total) 187,100 192,473 194,807

12.0 - Personnel benefits 53,000 54,922 51,000

Total Personnel and Compensation Benefits $240,100 $247,395 $245,807

21.0 - Travel and transportation of persons 1,300 1,300 1,450

22.0 - Transportation of things 250 250 250

23.1 - Rental payments to GSA 2,000 2,000 2,000

23.2 - Rental payments to others 1,000 1,000 1,000

23.3 - Communication, utilities, and misc charges 13,500 14,050 14,350

24.0 - Printing and reproduction 500 250 250

25.1 - Advisory and assistance services 3,500 3,250 3,500

25.2 - Other services 61,211 70,222 121,673

25.4 - Operation and maintenance of facilities 8,250 8,500 8,500

25.5 - Research and development contracts 5,000 7,000 7,000

25.7 - Operation and maintenance of equip 9,250 10,000 11,900

26.0 - Supplies and materials 307,097 293,000 292,250

31.0 - Equipment 80,000 120,125 153,750

42.0 - Insurance claims and indemnities 250 250 260

Total Non-Personnel 493,108 531,197 618,133

Total Budgetary Resources $733,208 $778,592 $863,940

Budget Activities:

Manufacturing 733,208 778,592 863,940

Total Budgetary Resources $733,208 $778,592 $863,940

FTE 1,925 1,944 1,924

2B – Appropriations Language and Explanation of Changes

The Bureau of Engraving and Printing receives no appropriated funds from Congress.

2C – Legislative Proposals

BEP has no legislative proposals.
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Section 3 – Manufacturing Budget and Performance Plan

3A – Manufacturing

($863,940,000 from expenses/obligations): 

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

strategic goals.

Description of Performance:

BEP’s Best Places to Work in Federal Government Ranking is a based on the results of the 

Partnership for Public Service data on three questions in the Federal Employee Viewpoint 

Survey. This survey is sent annually to all Federal employees seeking their opinion on their 

organization’s leadership and programs relating to fairness, employee empowerment and 

recognition. In FY 2014 BEP’s ranking improved to 47 out of 300. The Bureau continues to 

sponsor activities and encourage employee engagement by contributing ideas and participation in 

events which are aimed at improving the work environment for all employees. The Bureau will 

continue these efforts and is confident that this positive direction will continue. BEP will 

continue to target achievement of an improvement in rank. 

Lost Time Accident Rate per 100 Employees measures the Bureau’s ability to reduce injuries 

and illnesses in the workplace. BEP’s key performance indicator is the annual Occupational 

Safety and Health Administration’s (OSHA) reportable lost time case rate and number of lost 

workdays. In FY 2014 BEP’s lost time case rate increased unfavorably during the fiscal year to 

2.08 against a target of 1.7 cases per 100 employees The Bureau remains committed to 

improving the safety of its employees and has undertaken analysis to determine the root causes 

of injury and to identify best practices in safety. BEP will continue to allocate resources to have 

the greatest impact on preventing future injuries. BEP’s target for this performance metric will 

be held constant at 1.7 per 100 employees for FY 2015 and FY 2016.

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

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

contracted price factors and anticipated productivity improvements, as well as the mix of 

denominations ordered year to year. As more sophisticated counterfeit deterrent design features 

are produced, paper and ink costs increase, resulting in increased total manufacturing costs. 

Actual performance against standard cost depends on BEP’s ability to meet annual spoilage, 

efficiency, and capacity utilization goals. In order to meet this measure, costs and other standard 

manufacturing performance metrics are tracked at each stage of production and corrections are 

made on the shop floor. In addition, production and quality metrics are discussed on a monthly 

basis at the executive level and corrective action plans are developed. In FY 2014, the cost of 

manufacturing was lower than anticipated, as the actual result realized for this measure was 

$44.22 per 1,000 notes produced against a target of $55.00. The performance goals for both FY 

2015 and FY 2016 reflect the continued increased production of high cost redesigned $100 notes 

as a proportion of the total annual order, and are set at $55.00 in both FY 2015 and FY 2016.

Percent of currency notes returned due to defects is an indicator of the Bureau’s ability to 

provide a quality product. All notes delivered to the Federal Reserve go through rigorous quality 

inspections during the manufacturing process. In addition, notes are inspected a final time using 
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the same inspection systems used at the Federal Reserve Banks. These inspections ensure that all 

counterfeit deterrent features, both overt and covert, are functioning as designed. BEP’s FY 

2014 target for this performance metric is 0.0001 percent, and the actual result realized for this 

measure was 0.00001 percent. BEP’s target for this performance metric will be held constant at 

0.0001 percent for FY 2015 and FY 2016.

Reduction in Regulated Waste (Pounds of waste per 1000 notes delivered of regulated air 

emissions, wastewater, and solid waste combined) is a quantitative indicator of the effectiveness 

of BEP environmental programs, which are assessed through the BEP ISO 14001 certified 

Environmental Management System (EMS). This reflects the maturation of the EMS as well as 

the Bureau’s commitment to continually improve its Environmental Health and Safety (EHS) 

performance, as both of the Bureau’s two manufacturing facilities received unconditional 

recertification to the ISO 14001 standard in FY 2013. BEP’s FY 2014 performance of 29.4

pounds of regulated waste for this metric was against a target of 31 pounds per 1000 notes 

delivered.

3.1.1 – Manufacturing Budget and Performance Plan

Dollars in Thousands

Manufacturing Budget Activity

Resource Level FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Estimated Estimated

 Expenses/Obligations $469,000 $555,000 $517,750 $630,000 $645,150 $733,208 $778,592 $863,940

Budget Activity Total $469,000 $555,000 $517,750 $630,000 $645,150 $733,208 $778,592 $863,940

Measure FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Actual Target Target

Best Places to Work in Federal 

Government Ranking

N/A N/A 174 178 47 N/A 99 99

Lost Time Accident Rate per 

100 Employees

N/A N/A 1.4 1.9 1.63 N/A 1.6 1.6

Manufacturing Costs For 

Currency (Dollar Costs Per 

Thousand Notes Produced)

32.77 44.85 34.6 43.34 50.45 44.22 55.0 55.0

Percent of Currency Notes 

Delivered Returned Due to 

Defects

N/A N/A .0 .0 .466 .0 .0 .0

Reduction to BEP's Three 

Major Regulated Waste 

Streams (Air Emissions, Waste 

water, and Solid Waste)

N/A N/A 32.7 31.2 31.2 29.1 N/A N/A

Key: DISC - Discontinued and B - Baseline
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Section 4 – Supplemental Information

4A – Summary of Capital Investments

The Bureau of Engraving and Printing’s (BEP) capital investment strategy is comprised of 

several broad investment categories with more specific smaller projects in each category. 

The Bureau’s mission to develop and produce U.S. Currency notes, trusted worldwide, demands 

that BEP continually update and improve its manufacturing processes by investing in new 

technologies and innovations. The Bureau is focused on building the capability to produce new 

currency designs with tactile features to provide meaningful access to US currency for the blind 

and visually impaired.

BEP participates as a partner in significant Treasury-wide enterprise level investments such as 

Homeland Security Presidential Directive-12, HRConnect (a Human Resources Line of Business 

service provider) and the Treasury Learning Management System (TLMS).

The Bureau’s IT portfolio includes a ‘cloud first’ approach to implementing business systems. 

The Oracle eBusiness Suite is an integrated manufacturing suite which runs at the Oracle 

Corporation’s “Federal on Demand” Shared Service Center in Austin, Texas.

Summary of Capital Investments

A summary of capital investment resources, including major information technology and nontechnology investments, can be viewed/downloaded at:

http://www.treasury.gov/about/budget-performance/Pages/summary-of-capital-investments.aspx

This website also contains a digital copy of this document.