Bureau of Engraving and Printing

Program Summary by Budget Activity

Dollars in Thousands

 FY 2012 FY 2013 FY 2014 FY 2012 TO FY 2014

Budget Activity Actual Estimated Estimated $ Change % Change

Manufacturing $704,980 $645,150 $661,755 ($43,225) -6.13%

Total Cost of Operations $704,980 $645,150 $661,755 ($43,225) -6.13%

FTE 1,872 1,880 1,880 8 0.43%

Summary

In support of Treasury’s strategic goal of 

“Enhance U.S. Competitiveness and Promote 

International Financial Stability and Balanced 

Global Growth”, the mission of the Bureau of 

Engraving and Printing (BEP) is to develop 

and produce United States currency notes, 

trusted worldwide. 

FY 2014 Priorities

 Achieve BEP’s strategic goals.

 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, collaborate with key 

stakeholders, in order to deter 

counterfeiting and maintain public 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. 

The BEP 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. The 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.

BEP’s strategic goals are to produce U.S. 

currency that function flawlessly in commerce 

by creating innovative currency designs that 

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. The Bureau also provides 

technical assistance and advice to other 

Federal agencies in the design and production 

of documents which require counterfeit 

deterrent features, due to their innate value or 

other characteristics. 

The Bureau produces the paper currency notes 

ordered by the Federal Reserve Board (FRB). 

During FY 2014, BEP expects to produce and 

deliver 8.0 billion notes to the FRB to meet 

currency demand. This represents a small 

increase in the number of notes produced from 

the 7.7 billion note program expected to be 

delivered in the FY 2013 program. In order to 

meet continued international demand, the 

anticipated denominations ordered will be the 

more costly higher denominated notes.
BEP supports a comprehensive anticounterfeiting program built around aggressive 

law enforcement, effective note design, and 

public education. The Bureau will continue its 

work in 2014 with the Advanced Counterfeit 

Deterrent (ACD) Steering Committee to 

research and develop future currency designs 

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 

FRB.

Over the last decade, research and 

development of new technologies for use in 

currency note production has become 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, 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. 

The importance of producing and delivering 

currency of consistently high quality, note 

after note, cannot be overstated, especially for 

the redesigned $100 note. The prevalent use of 

the $100 note as a store of value throughout 

the world and its global reputation requires the 

production of the new $100 note to continue at 

increased levels through 2013. It is estimated 

by the Federal Reserve that as many as twothirds of all $100 notes circulate outside the 

United States.

Work will continue in FY 2014 on the goal of 

enabling the Nation’s currency to better serve 

domestic and international users, including the 

blind and visually impaired. The Bureau will 

be incorporating features into the next redesign 

of currency that will assist every American to 

better use and denominate currency. 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 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. 

The FY 2014 Budget request funds an 

implementation of a BEP Currency reader 

distribution pilot program. Under this 

program, United States citizens and legal 

residents who are blind or visually impaired 

are provided a currency reader to aid in the 

denomination of US currency. The FY 2014 

request is based on an initial state rollout

program which will run for approximately six 

months giving BEP time to assess response 

levels and program effectiveness before a 

planned national rollout in FY 2015.
BEP FY 2014 Budget Highlights

Dollars in Thousands

Bureau of Engraving and Printing FTE Materials Operating & 

Capital Total

FY 2012 Actual 1,872 $704,980 - $704,980

FY 2013 Estimated 1,880 $274,644 $370,506 $645,150

Changes to Base:

Maintaining Current Levels (MCLs): - - $4,605 $4,605

Pay-Raise - - $1,979 $1,979

Non-Pay - - $2,626 $2,626

Efficiency Savings: - - ($15,000) ($15,000)

IT Savings due to Implementation of Manufacturing 

Support System - - ($3,500) ($3,500)

Reduced Labor costs due to spoilage reductions - - ($1,500) ($1,500)

Leverage Technology Investments - WCF Public 

Tour - - ($1,000) ($1,000)

Offer separation incentives (VERA/VSIP) - - ($400) ($400)

Strategic Alignment Initiative with US Mint and other 

Treasury bureaus - - ($1,000) ($1,000)

Defer Targeted Facility Improvements in 

Washington DC - - ($5,600) ($5,600)

Close DC Public Tour during safety renovations - - ($2,000) ($2,000)

Subtotal Changes to Base - - ($10,395) ($10,395)

Total FY 2014 Base 1,880 $274,644 $360,111 $634,755

Program Changes:

Program Increases: - $12,000 $15,000 $27,000

Anticipated changes in FY 2014 Currency 

Manufacturing Program - $12,000 - $12,000

Install Screen Press for Tactile Features - - $10,000 $10,000

Continue Currency Reader Loan Program Pilot 

Implementation - - $5,000 $5,000

Total FY 2014 Estimated 1,880 $286,644 $375,111 $661,755

FY 2014 Budget Adjustments

Maintaining Current Level (MCLs)

Pay-Raise +$1,979,000 / +0 FTE

The President’s Budget proposes a 1 percent 

pay-raise for federal employees in 2014.

Non-Pay +$2,626,000 / +0 FTE

Funds are required for inflation adjustments in 

in non-labor costs such as travel, contracts, 

rent, supplies, and equipment.

Efficiency Savings

IT Savings due to Implementation of 

Manufacturing Support System -$3,500,000 / 

+0 FTE

BEP’s implementation of a modern IT 

platform has enabled the transition to cloud 

hosting, eliminated costly legacy systems and 

has reduced overall operating and maintenance 

costs.

Reduced Labor costs due to spoilage 

reductions -$1,500,000 / +0 FTE

As a result of spoilage reduction efforts, BEP 

anticipates better production yields which will 

in turn reduce overtime costs.

Leverage Technology Investments - WCF 

Public Tour -$1,000,000 / +0 FTE

By expanding the use of hand held and other 

interactive devices, BEP would convert the 

Western Currency Facility Public tour into a 

more self-guided tour, reducing the need for 

contracted tour guide services.

Offer separation incentives (VERA/VSIP) 

-$400,000 / +0 FTE

BEP plans to continue current right-sizing 

efforts by offering separation incentives 

(VERA/VSIP). Staff reductions in General 
and Administrative areas will enable BEP to 

fill gaps in direct manufacturing and quality 

assurance positions. Savings reflect the net 

budget impact of reductions of high salary 

positions being replaced by, on average, more 

junior, lower salary staff.

Strategic Alignment Initiative with US Mint 

and other Treasury bureaus -$1,000,000 / +0 

FTE

BEP plans to leverage cost savings initiatives 

as a result of the Strategic Alignment Initiative 

with the United States Mint and other bureaus.

Defer Targeted Facility Improvements in 

Washington DC -$5,600,000 / +0 FTE

Deferring selected capital improvements for 

BEP’s Washington DC facility pending the 

outcome of the BEP facility study will likely 

have little or no impact on BEP’s primary 

mission.

Close DC Public Tour during safety 

renovations -$2,000,000 / +0 FTE

BEP proposes closing the public tour in 

Washington DC for renovations that will 

increase safety for our visitors. By closing the 

tour during the renovation period, construction 

upgrades can occur unimpeded and be 

competed in a shorter time frame. After 

completion of the renovations, the tour will 

reopen and tours will resume at a normal tour 

schedule. This temporary closing of the tour 

will decrease contract costs while having no 

impact on BEP’s primary mission of 

developing and producing United States 

currency notes, trusted worldwide.

Program Increases

Continue Currency Reader Loan Program 

Pilot Implementation +$5,000,000 / +0 FTE

The FY 2014 Budget increase funds the 

implementation of the BEP Currency reader 

distribution program. The funding request is 

based on an initial five-state rollout program 

which will run for approximately six months, 

giving BEP time to assess response levels and 

program effectiveness before a planned 

national rollout in FY 2015.

Anticipated changes in FY 2014 Currency 

Manufacturing Program +$12,000,000 / +0 

FTE

Program increases in FY 2014 are based on 

expected increases in FRB currency note 

orders and accelerated development of tactile 

features for meaningful access.

Install Screen Press for Tactile Features 

+$10,000,000 / +0 FTE

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. Extensive market research 

identified potential methods of giving 

meaningful access and additional security 

features to U.S. banknotes; it was determined 

that a screen printing press provided the 

needed flexibility in developing new banknote 

features for the future.

Explanation of Budget Activities

Manufacturing ($661,755,000 from 

revenue/offsetting collections)

The BEP has one budget activity: 

Manufacturing. This budget activity supports 

all of BEP’s strategic goals. The goal owner 

for the Manufacturing budget activity is BEP’s 

Deputy Director Leonard Olijar.

Legislative Proposals

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 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.]

BEP Performance by Budget Activity

Budget Activity Performance Measure FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Actual Actual Actual Target Target

Manufacturing Manufacturing Costs For Currency 

(Dollar Costs Per Thousand Notes 

Produced) ($) 

44.85 34.6 43.34 55.0 55.0

Key: DISC - Discontinued and B - Baseline

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, 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. The manufacturing cost of 

currency metric has performed at or better than 

its annual targets for the past seven years. In 

2012 the cost of manufacturing was lower than 

anticipated, as the actual result realized for this 

measure was $42.00 per 1,000 notes produced 

against a target of $48.00. The performance 

goals for both 2013 and 2014 reflect the 

increased production of high cost redesigned 

$100 notes as a proportion of the total annual 

order, and are set at $55.00 in both 2013 and 

2014. 

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 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 

2012 target for this performance metric was 

.0001 percent and BEP was able to meet the 

target. An infinitesimal number of notes are 

returned due to defects; In FY 2012 only 1500 
notes were returned out of the 8.4 billion notes 

produced. BEP anticipates similar results in 

the future, and BEP’s target for this 

performance metric will be held constant at 

.0001 percent for FY 2013 and FY 2014.

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. BEP’s 

performance plan for this metric was to 

improve its previous ranking of 174 out of 

240. BEP’s 2012 ranking was 178 out of 292, 

increasing from the 28th percentile to the 39th 

percentile. BEP’s overall index score (which 

measures BEP’s performance related to 

employee job satisfaction and commitment) rose 

to 60.7 in 2012 from 60.0 in 2011 and the 

Bureau’s Best Places to Work scores improved 

in 10 out of 13 categories this year. The Bureau 

will continue 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 by getting into the top 

100. 

Reduction in Regulated Waste (Millions of 

pounds 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 2012. BEP’s FY 2012 

performance of 32 million pounds of regulated 

waste for this metric was against a target of 

32.7 million pounds.

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 

2012 BEP’s lost time case rate decreased 

favorably by more than 25 percent during the 

fiscal year to 1.4 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 2013 and FY 2014.