United States Mint 

FY 2014 

President’s Budget 
Mint - 2

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..................................................................... 8

2.2 – Operating Levels Table .................................................................................................... 10

2B – Appropriations Language and Explanation of Changes ................................................... 11

2C – Legislative Proposals........................................................................................................ 11

Section 3 – Budget and Performance Plan ............................................................................... 13

3A – Manufacturing .................................................................................................................. 13

3.1.1 – Budget Activity Budget and Performance Plan ............................................................ 18

Section 4 – Supplemental Information ...................................................................................... 19

4A – Capital Investment Strategy ............................................................................................. 19
Mint - 3

Section 1 – Purpose 

1A – Mission Statement 

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

collectible coins and national medals, and providing security over assets entrusted to us. 

1.1 – Resource Detail Table 

Dollars in Thousands

United States Mint FY 2012 FY 2013 FY 2014 FY 2012 to FY 2014

Budgetary Resources Actual Estimated Estimated $ Change % Change

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Revenue/Offsetting Collections

Other Income

Circulating 0494,370 0483,000 0545,000 050,630 .00 10.24%

Bullion/Numismatic 03,480,700 03,164,000 02,537,000 0(943,700) .00 -27.11%

Total Revenue/Offsetting Collections 03,975,070 03,647,000 03,082,000 0(893,070) .00 -22.47%

Expenses/Obligations

Manufacturing

Circulating 837 365,813 893 459,833 923 531,212 86 165,399 10.27% 45.21%

Bullion/Numismatic 951 2,740,491 951 3,065,345 951 2,406,328 0 (334,163) N/A -12.19%

Total Expenses/Obligations 1,788 3,106,304 1,844 3,525,178 1,874 2,937,540 86 (168,764) 4.81% -5.43%

Net Results 0868,766 0121,822 0144,460 0(724,306) .00 -83.37%

1B – Vision, Priorities and Context 

The United States Mint manufactures and distributes domestic circulating coinage, bullion coin 

products, numismatic coinage and national medals in the most cost effective and efficient 

manner possible. In addition, the United States Mint provides security for assets, including the 

government’s reserves of gold bullion, silver bullion, coins and coinage metals. The United 

Coin Shipments (Units In Millions/Coins)

FY 2012 

Actual

FY 2013 

Estimated

FY 2014 

Estimated

Circulating:

One Cent 5,835 5,800 6,000

5-Cent 1,006 900 900

Dime 1,658 1,300 1,400

Quarter 486 1,000 1,200

Half-Dollar 0 0 0

Dollar 97 0 0

Total Circulating 9,082 9,000 9,500

FY 2012 FY 2013 FY 2014

Budget Breakdown (Dollars in Thousands) Actual Estimated Estimated

Administrative Operating Costs $373,976 $374,920 $375,605

Metals and Materials Costs $2,701,345 $3,120,234 $2,531,467

Capital Investments $30,983 $30,024 $30,468

Total Resources $3,106,304 $3,525,178 $2,937,540
Mint - 4

States Mint is the world’s largest coin manufacturer with facilities in California, Colorado, 

Kentucky, New York, Pennsylvania, and Washington, D.C. The United States Mint supports the 

Department of the Treasury’s strategic goal to enhance U.S. competitiveness and promote 

international financial stability and balanced global growth. 

Vision 

The United States Mint’s vision is to become the finest mint in the world, through excellence in 

its people, products, customer service and workplace. The United States Mint has the following 

four strategic goals to help it fulfill its vision and mission: 1) meet the Nation’s need for 

circulating coins; 2) meet public demand for bullion coins; 3) responsibly expand the numismatic 

program; and 4) foster a safe, engaged, productive and valued workforce. 

FY 2014 Priorities 

 Circulating Program - Efficiently and effectively mint and issue approximately 9.5 billion 

circulating coins in FY 2014 to meet the needs of commerce. 

 

 Numismatic Program 

Bullion Coins – 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. 

Other Numismatic Products - Produce and distribute numismatic products in sufficient 

quantities, through appropriate channels, and at the lowest prices practicable, to make them 

accessible, available, and affordable to people who choose to purchase them. Design, strike 

and prepare for the presentation of Congressional Gold Medals. 

 Protection - Secure the Nation’s gold reserves, silver reserves and other assets. 

Context 

Since 1996, the United States Mint operations have been funded through the Public Enterprise 

Fund (PEF), established by section 522 of Public Law 104–52 (codified at section 

5136 of Title 31, United States Code). The United States Mint generates revenue through the 

sale of circulating coins to the Federal Reserve Banks (FRB), numismatic products to the public 

and bullion coins to authorized purchasers. All circulating, bullion and numismatic operating 

expenses and capital investments incurred for the United States Mint’s operations and programs 

are paid out of the PEF. By law, all funds in the PEF are available without fiscal year limitation. 

Revenues determined to be in excess of the amount required by the PEF are transferred to the 

United States Treasury General Fund as off-budget or on-budget receipts. Off-budget receipts 

consist of seigniorage, the net return from circulating operations, which in the Federal budget is 

used to reduce the government’s need to borrow. This results in a reduction in interest on the 

Federal debt from the borrowing that seigniorage displaces. The net returns from numismatic 

program operations, including bullion coin program operations, are recorded as on-budget 

receipts in the Federal budget, and are available to be used to fund Federal Government 

operations and programs. 
Mint - 5

The United States Mint’s budget receipts and outlays reflect the demand for and sales of 

circulating, bullion and numismatic coin products. In accordance with the PEF statute, proceeds 

from sales provide the United States Mint’s funding source, fully covering budget outlays, which 

adjust as the necessary resources are engaged to fulfill prevailing demand. The vast majority 

(approximately 86 percent in FY 2014) of planned budget outlays are for procurement of metals 

and materials for conversion into finished goods. Accordingly, each fiscal year’s budget outlays 

principally reflect the production volumes that correspond to prevailing demand, as well as raw 

material costs driven by prices on open commodities markets. The economic environment can 

significantly affect the United States Mint’s budget outlays by influencing these two external 

factors. 

The numismatic program, including the bullion coin program, is designed to ensure the United 

States Mint does not incur any losses from operations. Product pricing and metal purchasing 

policies ensure that all raw materials, production and overhead expenses are fully covered by 

sales revenue. Circulating financial performance has been affected by the costs of the inputs for 

producing the coinage. Since FY 2006, commodity prices for copper nickel and zinc have been 

at levels at which costs of the one-cent coins (pennies) and 5-cent coins (nickels) have exceeded 

their face value. The United States Mint expects the costs of these commodities to remain at 

levels that result in continued losses from issuing pennies and nickels to the FRBs at face value. 

The outlook for circulating financial performance is also diminished because of issuance of $1 

coins to the FRB for circulation was suspended on December 13, 2011, and $1 coins were the 

highest earning circulating denomination with the most seigniorage per unit. Since the 

suspension’s implementation, positive seigniorage from minting and issuing dimes and quarters 

has fully offset the losses the United States Mint incurs from minting and issuing pennies and 

nickels. FRB demand for quarters has been very low the last two years, as FRB inventories have 

exceeded targeted levels. FRB inventories for these denominations have since come into 

alignment with targeted ranges; it is therefore likely that quarter shipments will increase over the 

next two years and will continue to offset some of the seigniorage foregone by the suspension of 

circulating $1 coin shipments. 

Circulating 

On December 13, 2011, the Secretary of the Treasury directed the United States Mint to suspend 

minting and issuing Presidential $1 Coins for circulation because the FRBs already held more 

than adequate supplies of $1 coins in their inventories to meet foreseeable demand. The Mint 

has experienced a decline in seigniorage generated from circulating operations; FRB inventories 

of $1 coins have also stopped increasing. 

FY 2014 coin production projections are based on current economic data and forecasts of FRB 

coin orders to maintain inventories within desired levels. Circulating coin production for FY 

2014 is forecasted at 9.5 billion coins—approximately a 6 percent increase over the FY 2013 

projection of 9.0 billion coins. Penny and dime coin shipments are expected to increase three 

and eight percent, respectively, in FY 2014 over FY 2013. Increases in penny demand will also 

adversely affect seigniorage, as the penny is minted and issued at a cost above its face value. 

The United States Mint anticipates a 20-percent increase in quarter-dollar coin shipments, the 

largest projected increase among the coin denominations in FY 2014. This should positively 

affect the amount of seigniorage generated.
Mint - 6

Numismatic Program 

Bullion Coins 

The United States Mint, as the world’s largest producer of gold and silver bullion coins, employs 

precious metal purchasing strategies that minimize or eliminate the financial risk that can arise 

from adverse market price fluctuations. 

Bullion coin demand reached historic highs in FY 2011. Since that time, bullion demand has 

gradually declined. The estimates included in this budget are based on the assumption that 

bullion coin revenue is expected to continue to decline as gold and silver prices ease and investor 

demand weakens. Specifically, budget estimates assume gold demand will be 852 thousand 

ounces in FY 2013 and decline to 516 thousand ounces in FY 2014. Silver demand is anticipated 

to be 34 million ounces in FY 2013 and to decline to 30 million ounces in FY 2014. 

Other Numismatic 

In FY 2011, numismatic revenue increased considerably because of three primary factors: (1) 

higher commodity prices prevailed for precious metals; (2) the release of both 2010 and 2011 

American Eagle gold, silver and platinum coin products within the 2011 fiscal year, which was 

atypical and will not be repeated in subsequent fiscal years; and (3) the United States Mint 

offered a greater proportion of its numismatic products for sale earlier in the calendar year rather 

than later. As a result, numismatic revenue increased dramatically. 

Numismatic revenue is expected to decline from the FY 2011 peak of $721.7 million and return 

to levels commensurate with prior years. The numismatic revenue for FY 2012 was $481.1

million, a 33 percent decline in revenue from the unusual revenue peak experienced in FY 2011. 

In FY 2013 and FY 2014, numismatic revenues are projected to be $450.1 million for each year, 

six percent below the revenue of FY 2012.
Mint - 7

Section 2 – Budget Adjustments and Appropriation Language 

The United States Mint’s FY 2014 budget request includes resource requirements for increased 

circulating coin demand. Circulating coin production for FY 2013 is forecasted at 9.0 billion (a 

17-percent increase over the original forecast of 7.7 billion coins). In FY 2014, demand 

forecasts indicate that required circulating coin production will be 9.5 billion, a six percent 

increase over FY 2013. This outlook reflects an increase in FRB demand in order to maintain 

inventories at targeted levels. 

The United States Mint’s FY 2013 President’s Budget has been adjusted to reflect a $101 million 

increase in metal purchases necessary to accommodate the increased coin production forecast. 

The Mint’s FTE level also increased as additional labor is required to meet coin demand. 

Conversely, the FY 2013 President’s Budget was reduced by $27.2 million to reflect costreduction strategies designed to lower overhead and sales, general, and administrative (SG&A) 

costs. The United States Mint is committed to implement both labor and non-labor initiatives to 

produce administrative operating cost savings wherever possible. 

In addition, the Mint has also taken measures to execute the provisions of Executive Order 

13589, Promoting Efficient Spending, as well as activities included in the Administrative 

Efficiency Initiative, and more recent guidance to reduce travel costs. Specific cost reductions 

are mandated for travel, printing, professional and technical services, office supplies and 

publications, employee IT devices, executive fleet services, and extraneous promotional items. 

Under these provisions, the United States Mint has developed policy guidelines and controls to 

reduce its administrative spending levels. As a result, the United States Mint’s FY 2014 budget 

request reflects notable administrative costs savings. 

2.1 – Budget Adjustments Table 

Dollars in Thousands

United States Mint FTE Materials Operating & 

Capital Total

FY 2012 Actual 1,788 $2,694,145 $412,159 $3,106,304

FY 2013 Estimated 1,844 $3,120,234 $404,944 $3,525,178

Changes to Base:

Maintaining Current Levels (MCLs): - - $6,129 $6,129

Pay-Raise - - $1,761 $1,761

Non-Pay - - $4,368 $4,368

Efficiency Savings: - ($607,286) ($7,000) ($614,286)

Labor Costs (reduction expected as result of 

VERA/VSIP) - - ($7,000) ($7,000)

Forecast Reduction in Purchase of Metal Raw 

Materials for Bullion in 2014 - ($607,286) - ($607,286)

Subtotal Changes to Base - ($607,286) ($871) ($608,157)

Total FY 2014 Base 1,844 $2,512,948 $404,073 $2,917,021

Program Changes:

Program Increases: 30 $18,519 $2,000 $20,519

Metal labor overhead from increased forecast in 

circulating coin in 2014 30 $18,519 $2,000 $20,519

Total FY 2014 Estimated 1,874 $2,531,467 $406,073 $2,937,540
Mint - 8

2A – Budget Increases and Decreases Description 

Maintaining Current Levels (MCLs) ...................................................... +$6,129,000 / +0 FTE

The funding level required to continue the United States Mint’s operations with no increase to 

program resources is +$6.1 million to fund both pay and non-pay budget requirements. This 

includes $1.8 million for pay and $4.3 million for non-pay categories, excluding metal 

purchases. 

Pay-Raise +$1,761,000 / +0 FTE 

The President's Budget proposes a 1 percent pay-raise for federal employees in 2014.

Non-Pay +$4,368,000 / +0 FTE 

Funds are required for inflation adjustments in non-labor expenses such as GSA rent 

adjustments, postage, supplies, and equipment.

The United States Mint’s core missions are to cost-effectively mint and issue circulating coins 

and prepare and distribute numismatic products to meet the needs of its customers and the nation. 

During the past few years, the United States Mint implemented and realized several efficiencies, 

savings and reductions. In a continued effort to contain costs, for FY 2014, the bureau proposes 

the following: 

Efficiency Savings .................................................................................. -$614,286,000 / +0 FTE

Forecast Reduction in Purchase of Metal Raw Materials for Bullion in 2014 -$607,286,000 / +0 

FTE 

Embedded Content[ALTCHUNKEND MOD_NAME_BINARYForecast Reduction in Purchase 

of Metal Raw Materials for Bullion in 2014] failed. SQLERRM:ORA-01403: no data foundThe 

overall numismatic program, including bullion coin programs, experienced increases in sales in 

FY 2010 and FY 2011. Revenue for these programs is trending lower in FY 2012. In FY 2013 

and 2014, sales are expected to continue to decline. As a result, metal purchase projections are 

down for FY 2014. 

Labor Costs (reduction expected as result of VERA/VSIP) -$7,000,000 / +0 FTE 

As a result of process improvements, efficiency gains and reduced production levels, the United 

States Mint’s staffing levels have gradually declined over time. In FY 2013, the United States 

Mint plans to achieve additional reductions in staffing and labor costs through implementation of 

voluntary early retirement authority and voluntary separation incentive program offers, a hiring 

freeze, and natural attrition. In FY 2014, annualized labor reductions are expected to be realized 

from the efforts taken in FY 2012 and FY 2013. 

Program Increases ................................................................................ +$20,519,000 / +30 FTE

Metal labor overhead from increased forecast in circulating coin in 2014 +$20,519,000 / +30 

FTE 

Circulating coin production for FY 2013 is forecasted at 9.0 billion, a 17 percent increase over 

the original forecast of 7.7 billion. In FY 2014, the United States Mint is forecasting circulating 
Mint - 9

coin production at 9.5 billion, a six percent increase over FY 2013. The United States Mint plans 

to meet this projected increase in demand by increasing metal purchases accordingly, adding 30 

temporary direct labor manufacturing positions, and increasing variable production costs. This 

proposed increase will enable the United States Mint to achieve its Strategic Goal to meet the 

Nation’s need for circulating coins. 
Mint - 10

2.2 – Operating Levels Table 

Dollars in Thousands

United States Mint FY 2012 FY 2013 FY 2014

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent 141,577 142,201 141,136

11.3 - Other than full-time permanent 253 203 273

11.5 - Other personnel compensation 8,846 10,140 11,136

11.9 - Personnel Compensation (Total) 150,676 152,544 152,545

12.0 - Personnel benefits 45,555 45,513 45,732

13.0 - Benefits for former personnel 1,050 2,400 1,019

Total Personnel and Compensation Benefits $197,281 $200,457 $199,296

21.0 - Travel and transportation of persons 2,098 1,945 1,945

22.0 - Transportation of things 29,849 26,016 26,260

23.1 - Rental payments to GSA 985 251 243

23.2 - Rental payments to others 12,099 17,107 17,272

23.3 - Communication, utilities, and misc charges 12,192 8,618 8,715

24.0 - Printing and reproduction 1,125 1,431 1,531

25.1 - Advisory and assistance services 48,140 28,583 28,863

25.2 - Other services 21,456 44,380 44,789

25.3 - Other purchases of goods & serv frm Govt accounts 22,382 18,405 18,658

25.4 - Operation and maintenance of facilities 0 1,843 0

25.5 - Research and development contracts 2,205 0 1,991

25.7 - Operation and maintenance of equip 6,419 7,371 7,503

26.0 - Supplies and materials 14,094 15,813 15,906

26.7 - Raw Materials 2,701,345 3,120,234 2,531,467

31.0 - Equipment 24,246 2,699 2,626

32.0 - Land and structures 10,388 30,024 30,468

42.0 - Insurance claims and indemnities 0 1 7

Total Non-Personnel 2,909,023 3,324,721 2,738,244

Total Budgetary Resources $3,106,304 $3,525,178 $2,937,540

Budget Activities:

Manufacturing 3,106,304 3,525,178 2,937,540

Total Budgetary Resources $3,106,304 $3,525,178 $2,937,540

FTE 1,788 1,844 1,874
Mint - 11

2B – Appropriations Language and Explanation of Changes 

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: Provided, That the aggregate amount of 

new liabilities and obligations incurred during fiscal year 2014 

under such section 5136 for circulating coinage and protective 

service capital investments of the United States Mint shall not 

exceed $19,000,000.

2C – Legislative Proposals 

Coinage Materials Modernization Act (CMMA) 

The Coin Modernization, Oversight and Continuity Act (Public Law 111-302), which was signed 

into law on December 14, 2010, provides the Secretary research and development authority; it 

does not give the Secretary the flexibility and agility to approve coinage materials that would 

result in significant long- and 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. 

Commodity metal prices have been at levels sufficient for production costs to exceed the face 

value of pennies and nickels since FY 2006. These same metal prices have also reduced the 

seigniorage realized from other circulating coinage denominations from levels generated in the 

past. Should the total cost of producing coins ever exceed their face value (thereby reducing 

seigniorage), the United States Mint has reserved $377.5 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 $377.5 million in its PEF, the United States 

Mint could eventually require an appropriation or borrowing authority to fund circulating 

operations. 

The United States 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 currently 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 costeffective materials. 
Mint - 12

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. 122. (a) Sections 2 and 3 of Public Law 111-302 are hereby repealed. 

 (b) Section 5112 of Title 31, United States Code, is amended as follows: 

 (1) Subsection (a)(2) is amended by striking “ and weighs 11.34 grams.”

 (2) Subsection (a)(3) is amended by striking “ and weighs 5.67 grams.”

 (3) Subsection (a)(4) is amended by striking “ and weighs 2.268 grams.”

 (4) Subsection (a)(5) is amended by striking “ and weighs 5 grams.” 

 (5) Subsection (a)(6) is amended by—

 (A) striking “except as provided under subsection (c) of this section, ”; and

 (B) striking “ and weighs 3.11 grams.”

 (6) Subsection (b) is amended by striking the first, second, third, fourth, sixth, seventh, 

and eighth sentences, and striking “metallic, ”.

 (7) Subsection (c) is amended to read as follows: “The Secretary shall prescribe the 

weight and the composition of the dollar, half-dollar, quarter-dollar, dime, 5-cent, and one-cent 

coins. In prescribing the weight and the composition of the dollar, half-dollar, quarter-dollar, 

dime, 5-cent and one-cent coins, the Secretary shall consider such factors that the Secretary 

considers, in the Secretary’s sole discretion, to be appropriate.”

 (c) Section 5113(a) of Title 31, United States Code, is amended by—

 (1) striking “and ” and inserting after “dime” “, 5-cent, and one-cent”; and 

 (2) striking the second and third sentences. 

Section 5112( r)(5) of Title 31, United States Code, is amended by inserting “for circulation” 

and after both instances of “minted and issued”. 

This legislative proposal seeks to limit 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 $1 coins minted and issued for circulation. 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. In late 2011, to address the excessive $1 coin inventories at 

the FRBs, the Secretary of the Treasury suspended the minting of Presidential $1 Coins for 

circulation. As a result, the United States Mint will fulfill all demand for new Presidential $1 

Coins through its numismatic sales channels until the FRBs have drawn down these excessive 

inventories. Numismatic demand for new Native American $1 Coins, however, is significantly 

lower than numismatic demand for Presidential $1 Coins, making it impracticable for the United 

States Mint to comply with the 20-percent requirement. As a consequence, limiting the 20-

percent requirement to circulating coins 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.
Mint - 13

Cooperative Efforts

For FY 2014, Treasury proposes to remove section 113 from the FY 2013 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. 

[SEC. 113. None of the funds appropriated or otherwise made available by this or any other Act 

or source to the Department of the Treasury, the Bureau of Engraving and Printing, and the 

United States Mint, individually or collectively, may be used to consolidate any or all functions 

of the Bureau of Engraving and Printing and the United States Mint without the explicit approval 

of the House Committee on Financial Services; the Senate Committee on Banking, Housing, and 

Urban Affairs; and the Committees on Appropriations of the House of Representatives and the 

Senate.] 

Section 3 – Budget and Performance Plan 

3A – Manufacturing 

($2,937,540,000 from expenses/obligations): 

The United States Mint has one budget activity: Manufacturing. This budget activity supports 

Treasury’s strategic goal to enhance U.S. competitiveness and promote international financial 

stability and balanced global growth. This budget activity encompasses the bureau’s three major 

programs: circulating coinage, bullion coins, and numismatic coin products. The owner of the 

Manufacturing budget activity is the United States Mint’s Acting Director, Richard A. Peterson. 

Circulating Coinage Program 

Circulating coinage includes the one-cent (penny), 5-cent (nickel), dime, and quarter-dollar 

coins. The minting of Presidential $1 Coins for circulation was suspended in December 2011. 

This suspension is expected to extend through FY 2014. As such, this budget submission does 

not include cost estimates for $1 coins. 

The United States Mint delivers circulating coinage to the FRBs at face value for subsequent 

distribution to the commercial banking system as required to transact commerce. 

The United States Mint will continue to mint and issue quarter-dollar coins honoring America’s 

national parks and other national sites in accordance with the America’s Beautiful National Parks 

Quarter Dollar Coin Act of 2008 (Public Law 110-456). In 2013, the United States Mint will 

release coins in the America the Beautiful Quarters Program honoring White Mountain National 

Forest (New Hampshire), Perry’s Victory and International Peace Memorial (Ohio), Great Basin 

National Park (Nevada), Fort McHenry National Monument and Historic Shrine (Maryland) and 

Mount Rushmore National Memorial (South Dakota). In 2014, the United States Mint will 

release quarters honoring Great Smokey Mountains National Park (Tennessee), Shenandoah 
Mint - 14

National Park (Virginia), Arches National Park (Utah), Great Sand Dunes National Park 

(Colorado) and Everglades National Park (Florida). 

Numismatic Program 

Bullion Coins 

The United States 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 the precious metal in the bullion 

coins are backed by the United States Government.

While the American Eagle Gold and Silver Bullion Coin Programs have operated for decades 

and the American Buffalo Gold Bullion Coin Program has operated for several years, the more 

recent America's Beautiful National Parks Quarter Dollar Coin Act of 2008 required the United 

States Mint to mint and issue five-ounce silver bullion coins replicating each of the designs 

featured on the United States Mint America the Beautiful Quarters®coins. The bullion coins are 

three inches in diameter and have a face value of a quarter-dollar. These are the first five-ounce, 

three-inch silver bullion coins produced by the United States Mint. 

Other Numismatic Products 

The United States Mint produces and distributes numismatic products, including proof and 

uncirculated versions of coins, directly to the public. 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 and Native American $1 Coin Programs, recurring programs, and 

commemorative coins and medals.

Recurring numismatic programs include high quality, specially presented products based on 

circulating coinage. These products include proof sets, silver proof sets, uncirculated sets, 

quarter-dollar coin sets and $1 coin sets. These products are designed for mass market appeal. 

While the minting of Presidential $1 Coins for commerce has been suspended, the United States 

Mint will continue to mint and issue numismatic versions of $1 coins honoring the Nation’s past 

Presidents in accordance with the Presidential $1 Coin Act of 2005 (Public Law 109-145). In 

2013, the United States Mint will release Presidential $1 Coins honoring Presidents William 

McKinley, Theodore Roosevelt, William Howard Taft, and Woodrow Wilson. The United 

States Mint will release in 2014 Presidential $1 Coins honoring Presidents Warren G. Harding, 

Calvin Coolidge, Herbert Hoover, and Franklin D. Roosevelt. 

In 2013 and 2014, the United States Mint will also continue to mint and issue $1 coins 

celebrating the important contributions made by Indian tribes and individual Native Americans 
Mint - 15

to the development and history of the United States in accordance with the Native American $1 

Coin Act (Public Law 110-82).

Commemorative coins are authorized by law to recognize and honor people, places, events, 

institutions, and other subjects of historic or national significance. Each coin is minted and 

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

Included in the price is a surcharge that is authorized to be paid to the designated recipient 

organizations, which must use the proceeds for the purposes specified in the enabling legislation. 

The American Eagle Proof and Uncirculated Coin Programs consist of the United States Mint’s 

premier collectible products. These coins contain platinum, gold and silver and are issued in 

proof or uncirculated quality. Currently, the bureau offers American Eagle Gold Proof Coins 

with one-tenth, one-quarter, one-half or one ounce of precious metal content. The bureau’s gold 

uncirculated quality versions are issued with one ounce of gold content. American Eagle Silver 

Proof and Uncirculated Coins are issued with one ounce of silver metal content. Currently, the 

bureau offers only our platinum coins in proof quality with one ounce of platinum metal content.

Total Budgetary Requirements (all programs)

In FY 2014, the United States Mint’s total estimated budgetary requirements for operating, metal 

and capital investments are $2,938 million. 

Manufacturing Budget and Performance Plan 

The United States Mint developed several key performance measures to gauge progress in 

achieving each strategic goal and assess its Manufacturing Budget Activity performance. 

Seigniorage per Dollar Issued 

Seigniorage per dollar issued is the financial return on circulating operations, calculated as 

seigniorage divided by the total face value of circulated coinage shipped to the FRBs and the 

public. It measures the cost-effectiveness of the United States’ circulating coinage. This 

measure incorporates the cost of the metal composition of coins as specified by law, and gauges 

the United States Mint’s efficiency in manufacturing and distributing circulating coins to meet 

the needs of the Nation. The strategic goal for this program is “Meet the nation’s need for 

circulating coins.” 

The main factors that affect performance are the volume of coinage demanded by the FRBs, the 

denomination mix of coins demanded, the costs of metal materials used to mint the coins and the 

United States Mint’s production costs. Most of these drivers are external factors, reflecting the 

Nation’s economic activity and the resulting need for coins to transact commerce. The realized 

cost for fabricated metal strips and blanks fluctuates as supply and demand pressures influence 

metal market prices. 

At the end of FY 2012, seigniorage per dollar issued was $0.21, above the performance target of 

$0.17. Performance results are exceeding the target because the metals prices are lower than 

originally predicted. Volume demanded is also higher than originally forecast, causing fixed 

costs to be spread over more units. 
Mint - 16

The United States Mint expects seigniorage per dollar issued to further decrease in FY 2013 

because it will be the first full fiscal year with no contribution from the $1 coin to seigniorage 

since production was suspended in December 2011. However, by FY 2014, seigniorage per 

dollar issued is expected to increase, as the FRBs are projected to order a larger volume of coins, 

including an increase in orders for quarter-dollars which generate more seigniorage from each 

unit than the lower-value coin denominations. The performance target for seigniorage per dollar 

issued is $0.17 for FY 2013 and $0.23 for FY 2014. 

The United States Mint plans to achieve performance targets as a result of normal manufacturing 

operations. Measures designed to improve cost performance such as implementation of a twoshift per day operation at the United States Mint’s manufacturing plants (down from three shifts 

per day) were implemented in 2011 and 2012. This reduced overhead expenses and energy 

expenses. Ongoing efforts to achieve greater efficiency include reduced labor costs through staff 

restructuring, procurement savings initiatives, and improved inventory management. These 

efforts are intended to improve performance, assuming the main external factors of cost and 

volume hold constant. 

Customer Satisfaction Index (CSI) 

The United States Mint conducts a quarterly Customer Satisfaction Measure Tracking Survey 

among a random sample of active numismatic customers. The survey is intended to capture 

customer satisfaction with the United States Mint’s service and product quality. The CSI is a 

quantitative score of survey results. 

The main factors driving CSI performance are customers’ ordering experience, the availability of 

products that customers want, and the United States Mint’s performance in delivering highquality products that meet customers’ expectations. Product availability reflects internal factors, 

such as production or supply chain management, and external factors, such as legislative 

mandates. Customers’ ordering experience reflects the customer interaction with the United 

States Mint through information technology systems and customer service representatives. 

At the end of FY 2012, the CSI reached 90.0 percent, below the target of 92.0 percent. Customer 

service performance is tracking lower than expected primarily because of some customers’ 

experiences with the current on-line order management system, especially its performance during 

the launch of one of the new products – the American Eagle 25th Anniversary Set. There was 

also a slight decrease in customer satisfaction ratings of numismatic product quality in the third 

quarter. 

The performance target for CSI is 90.0 percent in FY 2013 and 90.0 percent in FY 2014. The 

United States Mint plans to achieve performance targets by modernizing its order management 

system. A modern, more flexible information technology infrastructure with improved 

capabilities will be needed to meet customer expectations in current and future numismatic 

markets. We will also continue efforts to monitor and improve our quality controls so that we 

meet or exceed customer expectations for our products. Funding for customer service 

improvement initiatives or investments is covered by the prices charged to sell the coinage and 

coin products. 
Mint - 17

Safety Incident Recordable Rate 

The safety incident recordable rate is the number of injuries and illnesses meeting the 

Occupational Safety and Health Administration recording criteria per 100 full-time workers. It 

measures the occurrence of work-related incidents involving death, lost time and restricted work, 

loss of consciousness and medical treatment. 

The safety incident recordable rate is a measure of the safety of United States Mint operations. 

Lower injury rates not only are indicative of a safer work place for the United States Mint’s 

employees, but also reduce the cost of operations by diminishing lost work-hours and workers’ 

compensation claims. 

In FY 2012, the total recordable case rate was 3.5 recordable injuries and illnesses per 100 fulltime workers, above the 3.24 target but below the industry average rate of 7.8 for forging and 

stamping manufacturers. Material handling is the primary cause of injuries. Strains, sprains and 

tears, typically an indication of ergonomic hazards, accounted for the majority of injuries in FY 

2012. The United States Mint created management safety steering teams to continually reinforce 

a culture of operating safely for all its employees. The bureau is also launching facility-specific 

leading measures to gain a more detailed understanding of the drivers of recordable safety 

incidents. 

The performance target for safety incident recordable rate is 3.14 in FY 2013 and 3.05 in FY 

2014. The United States Mint plans to achieve performance targets by formalizing additional 

safety performance measures piloted in FY 2012. These internal safety measures will provide 

useful information for driving improvement and reducing risks of major hazards. The United 

States Mint also aims to reduce incidents resulting from material handling, which make up 

approximately half of total incidents each year. 

Vigilance in maintaining a safe workplace is expected of all United States Mint employees and 

managers. Any investments and expenses for safety programs are applied to the costs of United 

States Mint products. Funding for safety-specific initiatives or investments is covered by the 

prices charged to sell the coinage and coin products. 

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. 

The strategic goals for this program are “Meet public demand for bullion coins” and 

“Responsibly expand the numismatic program.” Increases in units sold allow the United States 

Mint to potentially reduce product unit costs and thus reduce the sales price, because fixed costs 

would be spread over a greater number of units. Increased unit sales would also indicate greater 

awareness of and demand for the Nation’s coin products produced by the United States Mint. 

Numismatic unit sales are affected by both external and internal factors. External factors, such 

as overall economic conditions, may alter the public’s consumption behavior. Internal factors, 

such as the design and quality of products, can also affect sales. In addition, robust marketing 

campaigns may increase awareness of United States Mint products. 
Mint - 18

Numismatic sales units totaled 5.6 million in FY 2012. Sales were below the target of 7.0 

million for two reasons. First, sales of 2010 numismatic gold coin products in 2011 were 

atypically high, because of pent-up demand after they were not offered in FY 2010. There was 

no comparable situation early in FY 2012, as the 2011 gold coins were sold throughout the 

previous year. Second, annual core numismatic sets went on sale later in 2012 than they did in 

2011.

The performance target for numismatic sales units is 5.2 million in FY 2013 and 5.2 million in 

FY 2014. The United States Mint plans to achieve the FY 2014 performance target by providing 

high quality products, enhancing customer service, and exploring new products to appeal to a 

broader range of customers. 

3.1.1 – Budget Activity Budget and Performance Plan

Dollars in Thousands

Manufacturing Budget Activity

Resource Level FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Estimated Estimated

 Expenses/Obligations $2,002,796 $2,014,698 $2,215,903 $3,624,483 $4,623,384 $3,106,304 $3,525,178 $2,937,540

Budget Activity Total $2,002,796 $2,014,698 $2,215,903 $3,624,483 $4,623,384 $3,106,304 $3,525,178 $2,937,540

Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Actual Actual Actual Target Target

Customer Satisfaction Index 

(%) 

N/A N/A 88.3 86.1 91.7 90.0 90.0 90.0

Numismatic Sales Units 

(Million Units)

N/A N/A N/A N/A 7.3 5.6 5.2 5.2

Safety Incident Recordable 

Rate 

N/A N/A N/A 2.29 2.74 3.5 3.14 3.05

Seigniorage per Dollar Issued 

($) 

N/A N/A .55 .49 .45 .21 .17 .23

Key: N/A - Not in Effect; DISC - Discontinued; B - Baseline

Prior to FY 2012, the Mint reported activities related to protecting its facilities, assets and 

employees in a separate “Protection” budget activity. These activities, and the resources to 

support them, are now reported under the Manufacturing budget activity. 

For detailed information about each performance measure, including definition, verification and 

validation, please go to: http://www.treasury.gov/offices/management/dcfo/accountabilityreports/
Mint - 19

Section 4 – Supplemental Information 

4A – Capital Investment Strategy

The United States Mint is a non-appropriated manufacturing bureau whose primary mission is to 

produce coinage to effectively enable commerce. Its capital investment requirements are 

predominantly for manufacturing-type equipment. Capital investments, along with the Mint’s 

operating expenses, are paid out of its PEF. The aggregate amount of new liabilities and 

obligations incurred during the budget fiscal year for capital investments in circulating coinage 

operations and protective service conforms to a legislative limitation for these capital projects. 

As such, the United States Mint’s long-range planning process is designed to address its capital 

needs while maintaining spending within legislative limitations. 

The United States Mint's manufacturing capital investment projects focus on manufacturing 

improvements such as development of new coin designs, automation of packaging lines, and 

facilities safety and improvements. In addition, the United States Mint’s capital investments also 

encompass a robust IT portfolio that focuses on the optimization of formal governance structures 

to manage IT investments and programs in an effort to emphasize reductions in system 

redundancy and to modernize the IT system infrastructure. Enterprise architecture reviews 

ensure alignment of IT investments to bureau strategic plans and strategic enterprise direction of 

Treasury. IT investments are closely monitored for cost, schedule and performance to ensure 

expected results and benefits are achieved. 

The full FY 2014 Capital Investment Plan for the United States Mint is available on the Treasury 

website (link). 

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