Bureau of Engraving and Printing 

Program Summary by Budget Activity 

(Dollars in thousands) 

Budget Activity FY 2009 FY 2010 FY 2011 

Actual Estimated Estimated $ Change % Change

 Manufacturing $469,000 $530,000 $527,000 ($3,000) (0.6%)

 Protection and Accountability of Assets $62,000 $61,000 $61,000 $0 0% 

Total Cost of Operations $531,000 $591,000 $588,000 ($3,000) (0.5%) 

Explanation of Budget Estimate 

The Bureau of Engraving and Printing (BEP) 

began printing currency in 1862. It 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 at BEP are 

financed by a revolving fund established in 

1950 in accordance with Public Law 81-656. 

This fund is reimbursed through product sales 

for direct and indirect costs of operations 

including administrative expenses. In 1977, 

Public Law 95-81 authorized the Bureau to 

include an amount sufficient to fund capital 

investments and to meet working capital 

requirements in the prices charged for 

products. This funding mechanism eliminated 

the need for appropriations from Congress. 

BEP’s key priorities for FY 2011 include: 

•	 The continued production of the 

redesigned $100 note. Final developments 

of the redesigned note will occur in early 

FY 2010. The Federal Reserve will 

determine when the redesigned $100 note 

is issued to the public. The redesign of the 

$100 note will mark the completion of the 

current multi-year initiative to implement 

the most ambitious currency redesign in 

United States history. 

•	 Continue re-tooling and retrofitting of the 

currency production process. Successful 

implementation of new technology will 

allow BEP to improve productivity, reduce 

its environmental impact and provide the 

needed capabilities to produce increasingly 

more complex currency note designs. This 

new equipment will ensure that BEP 

continues to operate in an efficient and 

cost-effective manner. 

•	 Continued training of the workforce for 

increasingly sophisticated technology 

integrated into 21st century manufacturing 

processes. 

•	 Improve the Nation’s currency to better 

serve the needs of Americans and others 

around the world, including the blind and 

visually impaired. To this end, BEP, in 

coordination with the Department of 

Treasury, announced the results of a study 

analyzing options to assist the blind and 

visually impaired in denominating U.S. 

currency. While no timetable has been set 

for future redesigned currency, the next 

redesign will incorporate changes to make 

U.S. currency more accessible to those 

who are blind and visually impaired. The 

information gathered in the study will be 

used to help establish a direction for the 

Department of the Treasury in providing 

access to U.S. currency for all cash users. 

•	 Continue process improvements as 

required of an ISO 9001 certified 

organization, a designation that indicates to 

current and prospective customers that the 

Bureau employs a rigorous quality 

management program. 

•	 Work in concert with the Advanced 

Counterfeit Deterrent Committee, and 

other Government agencies to research and 

develop state-of-the-art counterfeit 

deterrent features and systems for use in 

currency notes that will enhance and 

protect future notes. 

Department of the Treasury - Budget in Brief FY 2011 Page 95
Purpose of Program 

The mission of the Bureau of Engraving and 

Printing is to design and manufacture high 

quality security documents that deter 

counterfeiting and meet customer requirements 

for quality, quantity and performance. 

BEP’s vision is to maintain its position as a 

world-class securities printer providing its 

customers and the public superior products 

through excellence in manufacturing and 

technological innovation. It strives to produce 

U.S. currency of the highest quality, as well as 

many other security documents issued by the 

Federal Government. 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 the requirements 

of customers. In addition, the Bureau provides 

technical assistance and advice to other 

Federal agencies in the design and production 

of documents, which, because of their innate 

value or other characteristics, require 

counterfeit deterrence. 

The Bureau’s top priorities for FY 2011 

include the continued re-tooling and 

retrofitting of the currency production process 

which will allow BEP to improve productivity, 

reduce its environmental impact and provide 

the needed capabilities to produce increasingly 

more complex currency note designs. This 

new equipment will ensure that BEP continues 

to operate in an efficient and cost-effective 

manner. Another top priority for FY 2011 is 

the continued production of the redesigned 

$100 note. Final developments of the 

redesigned note will occur in early FY 2010. 

The Federal Reserve will determine when the 

redesigned $100 note is issued to the public. 

Another initiative for FY 2011 will include 

taking steps to identify, refine and create 

meaningful access to currency for the blind 

and visually impaired. While no timetable has 

been set for future redesigned currency, the 

next step in currency redesign will include 

improvements to the Nation’s currency to 

better serve the needs of Americans and others 

around the world, including the blind and 

visually impaired. To this end, the Bureau, in 

coordination with the Department of Treasury, 

announced the results of a study analyzing 

options to assist the blind and visually 

impaired in denominating U.S. currency. The 

information gathered in the study will be used 

to help establish a direction for the Department 

of the Treasury in providing access to U.S. 

currency for all cash users. In addition, 

because aggressive law enforcement, effective 

design, and public education are all essential 

components of a concerted anti-counterfeiting 

program, the Bureau will continue its work in 

2011 with the Advanced Counterfeit Deterrent 

Committee to research and develop future 

currency designs that will enhance and protect 

future notes. 

Explanation of Budget Activities 

Manufacturing ($527,000,000 from 

reimbursable programs) 

BEP manufactures high quality security 

documents that deter counterfeiting. These 

manufactured products are grouped into two 

programs: Federal Reserve notes and other 

security documents. The manufacturing of 

state-of –the-art currency deters counterfeiting, 

contributes to public confidence, and 

facilitates daily commerce ensuring seamless, 

“business as usual” transactions as new 

currency designs are introduced to the public. 

Protection and Accountability of Assets 

($61,000,000 from reimbursable programs) 

BEP protects and accounts for its assets by 

providing effective and efficient product 

security and accountability during the 

manufacture and delivery of currency notes to 

Department of the Treasury - Budget in Brief FY 2011 Page 96
the Federal Reserve which preserves the 

integrity of the nation’s currency. Protection 

and Accountability of Assets includes the 

protection of thousands of BEP employees and 

contractors, facilities and equipment. 

Legislative Proposals 

Treasury’s legislative proposal would repeal 

the portion of 31 USC Sec. 5114(c) that limits 

a contract term for the manufacture of 

distinctive currency paper to four years, and 

open up the supply of U.S. currency paper to 

increased competition. Potential suppliers 

consider four years too short of a payback 

period for production of this product thus 

BEP Performance by Budget Activity 

leaving the U.S. with a single source provider 

of currency paper. 

Capital Investments Summary 

Major Investments: BEP has no new planned 

independent major investments for 2011. BEP 

participates as a partner in significant 

Treasury-wide enterprise level investments 

such as T/Net (Treasury’s implementation of 

General Services Administration’s (GSA) 

Networx), Homeland Security Presidential 

Directive -12 (again through Treasury’s 

partnership with GSA), HRConnect (an 

Human Resources Line of Business service 

provider) and Internet Protocol version 6. 

Budget 

Activity Performance Measure FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Actual Actual Target Actual Met? Target Target 

Manufacturing Manufacturing costs for 

for BEP currency per one thousand 

notes delivered (E) 

$30.25 $29.47 $37.00 $32.77 Yes $37.00 $37.00 

Manufacturing Percent of currency notes 

for BEP delivered to the Federal 

Reserve that meet customer 

quality requirements. (M) 

100.00% 100.00% 99.90% 99.90% Yes 99.90% 99.90% 

Protection and Currency shipment 

Accountability discrepancies (per million 

of Assets notes delivered) (Oe) 

0.01% 0.01% 0.01% 0.00% Yes 0.01% 0.01% 

Protection and Security costs per 1000 notes 

Accountability delivered (E) 

of Assets 

$5.92 $5.63 $5.65 $5.76 No $5.60 $5.60 

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

Description of Performance 

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. Actual performance against standard depends on BEP’s 

ability to meet annual spoilage, efficiency, and 

capacity utilization goals. Performance against 

this measure has been favorable for the past 

seven years. 

Percent of currency notes delivered to the 

Federal Reserve that meet customer quality 

and requirements is a qualitative indicator 

reflecting the Bureaus’ ability to provide a 

quality product. All notes delivered to the 

Federal Reserve go through rigorous quality 

inspections. These inspections endure that all 

counterfeit deterrent features, both overt and 

covert are functioning as designed. 

Department of the Treasury - Budget in Brief FY 2011 Page 97
Currency Shipment Discrepancies is an 

indicator of the Bureau’s ability to provide 

effective product security and accountability. 

This measure refers to product overages or 

underages of as little as a single currency note 

in shipments of finished notes to the Federal 

Reserve Banks expressed as a percentage of 

total program. For several years, this measure 

has had an annual target of .01 percent. The 

Bureau has been able to meet or do better than 

this target on a regular basis. BEP continually 

strives to meet its long term goal of 0 percent, 

and has been able to do so several times. 

The measure security cost per 1000 notes 

delivered reflects the cost of providing product 

security. The measure is kept at the lowest 

level possible without compromising the 

security posture of the Bureau. 

BEP strives to reduce the target on an annual 

basis through a combination of leveraging of 

the best practices of other federal law 

enforcement agencies, targeted system 

investments, and improvements in facility 

design that incorporate security attributes. In 

2009 BEP was unable to meet its target for 

cost of security. During the last quarter of the 

fiscal year, BEP responded to the Federal 

Reserve’s need to change the 2009 currency 

production order due to worldwide changes in 

the demand for currency. BEP delivered a 

reduced program as well as a different mix of 

currency denomination notes; the timing of the 

reduction did not allow the Bureau to modify 

security costs in enough time to meet the 

targeted costs per 1000 notes delivered for the 

fiscal year. Guarding against theft is the top 

priority of the BEP security program; in 2010, 

BEP will produce and deliver the 2010 

currency order while continuing to monitor the 

cost of providing effective and efficient 

product security and accountability. 

Department of the Treasury - Budget in Brief FY 2011 Page 98