Bureau of Engraving and Printing

Program Summary by Budget Activity

Dollars in thousands 

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

 Actual Estimated Estimated $ Change % Change

 

Manufacturing $517,750 $630,000 $665,973 $35,973 5.71%

Protection and Accountability of Assets $61,000 $0 $0 $0 NA

Total Cost of Operations $578,750 $630,000 $665,973 $35,973 5.71%

FTE 1,895 1,925 1,862 (63) -3.27%

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 2013 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; 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, 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 Bureau of Engraving and Printing 

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. During 

FY 2013, BEP estimates that it will produce 

and deliver 7.0 billion notes to the Federal 

Reserve Board to meet currency demand. This 

represents an approximate 20 percent 

reduction in the number of notes produced 

from the 8.4 billion note program expected to 

be delivered in the FY 2012 program. 

However, in order to meet 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 2013 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 

Federal Reserve Board.

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.

In 2013 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. In addition, work continues on the 

goal of enabling the Nation’s currency to 

better serve all currency users, including the 

blind and visually impaired. The Bureau will 

be incorporating features into the next redesign 

of currency that will assist every user to better 

denominate 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. As 

discussed below, the Bureau is also seeking 

legislative authority to facilitate a currency 

reader program designed to provide 

meaningful access to US currency prior to the 

introduction of a tactile feature.

The FY 2013 Budget proposes to authorize the 

Bureau to implement a coupon program to 

distribute currency readers as a cheaper and 

more efficient alternative to the agency’s 

existing authority to loan the readers. 

Currently, BEP can loan currency readers to 

the blind and visually impaired public under 

its general authorities. However, BEP has data 

suggesting that the cost of administrative 

resources needed to implement such a loan 

program would be significant and that, 

alternatively, a coupon program that would 

fund public purchases of readers would be 
much more cost-efficient. Under a coupon 

program, United States citizens and legal 

residents who are blind or visually impaired 

could apply for coupons that would be credited 

toward the cost of a currency reader purchased 

directly from a commercial vendor and paid 

for through the BEP’s revolving fund. Initial 

discussions with the Federal Reserve Board 

Staff indicate that the Board supports the

coupon program as the most cost effective 

method. Implementation of a coupon 

program, however, would require BEP to be 

granted specific statutory authority to do so.

BEP FY 2013 Budget Highlights

Dollars in thousands

Bureau of Engraving and 

Printing

FTE Amount

FY 2012 Estimated 1,925 $630,000

Changes to Base:

Maintaining Current Levels 

(MCLs):

- $7,553

Maintaining Current Levels - $7,553

Efficiency Savings: (65) ($46,037)

Reduced Labor and Benefits 

Costs Due to Attrition Without 

Backfill

(25) ($3,855)

Manufacturing Support 

Suite/Lean Six Sigma

- ($2,500)

Spoilage Reduction Savings - ($1,000)

Productivity 

Improvements/Overtime 

Reduction

- ($1,000)

Energy Savings - ($250)

Reduce $1 Currency Note Cost 

of Production

- ($15,000)

Defer Selected Capital 

Improvements

- ($13,000)

Separation Incentives (40) ($2,800)

Contract Savings - ($2,800)

Reduce Non-Critical Travel 

and Training

- ($2,000)

Reduction in Public Tour Hours 

and Related Contractor Costs

- ($1,832)

Subtotal FY 2013 Changes to 

Base

(65) ($38,484)

Total FY 2013 Base 1,860 $591,516

Program Increases: 2 $74,457

Expected increase in Next

Generation $100 Currency 

Note Production

- $5,100

Currency Reader Coupon 

Program

2 $69,357

Total FY 2013 Estimated 1,862 $665,973

FY 2013 Budget Adjustments

Maintaining Current Levels (MCLs) 

Maintaining Current Levels +$7,553,000 / +0 

FTE

Funds are requested for inflation adjustments 

(1.7 percent) in non-labor expenses such as 

GSA rent adjustments, postage, supplies and 

equipment and health benefits and the increase 

in Federal Employees Retirement System 

participation. Funds are also requested for the 

proposed 2013 pay raise (0.5 percent).

Efficiency Savings 

Reduced Labor and Benefits Costs Due to 

Attrition Without Backfill -$3,855,000 / -25 

FTE

By not backfilling certain targeted employee 

vacancies, BEP plans for cost savings in Labor 

and Benefits, without any loss in production 

capability.

Manufacturing Support Suite/Lean Six Sigma 

-$2,500,000 / +0 FTE

Savings as a result of improved business 

practices enabled by new management and 

financial systems as well as targeted Lean Six 

Sigma projects.

Spoilage Reduction Savings -$1,000,000 / +0 

FTE

BEP and the paper supplier have a better 

understanding of the operating parameters 

necessary to optimize the quality of currency 

notes. Lessons learned from paper 

optimization trials for the NexGen $100 

creasing challenges will be applied to the 

production of other currency denominations. 

This should result in improved operational 

performance and reduce spoilage across all 

denominations.
Productivity Improvements /Overtime 

Reduction -$1,000,000 / +0 FTE

By employing new production technologies 

BEP plans for increased productivity requiring 

less overtime worked.

Energy Savings -$250,000 / +0 FTE

Energy Savings will be gained by employing 

new production technologies. BEP’s retooling 

efforts have replaced older and less efficient 

equipment with newer energy efficient, safer, 

and more productive/reliable equipment.

Reduce $1 Currency Note Cost of Production 

-$15,000,000 / +0 FTE

BEP will be moving to 50 subject note 

processing which will cut production costs for 

the $1 note program. In addition, the Federal 

Reserve Board (FRB) implemented a new 

policy which resulted in increased circulation 

life of the note which will translate into a 

reduction of the FRB’s annual order. This cut 

assumes that the impact of the FRB policy will 

enable the FRB to reduce its annual order for 

the $1 note for 2013. Underutilized 

production equipment capacity may result 

depending on the FRB’s 2013 order for higher 

denominations.

Defer Selected Capital Improvements 

-$13,000,000 / +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.

Separation Incentives -$2,800,000 / -40 FTE

By making the Voluntary Separation Incentive

Program (VSIP) or Voluntary Early 

Retirement Authority (VERA) available to 

employees BEP hopes to accelerate current 

right-sizing efforts.

Contract Savings -$2,800,000 / +0 FTE

A value based decision, reducing the level of 

service of certain contracts would result in cost 

savings. 

Reduce Non-Critical Travel and Training 

-$2,000,000 / +0 FTE

Cost savings will be achieved by leveraging 

on-line training and reducing temporary duty 

travel to support only mission critical 

requirements.

Reduction in Public Tour Hours and Related 

Contractor Costs -$1,832,000 / +0 FTE

Reducing the number of operational hours at 

BEP’s public tour in Fort Worth, Texas will 

result in cost savings with limited impact to 

the visiting public. The public tour hours in 

Washington DC will remain unchanged. This 

scheduling change has no impact on BEP’s 

primary mission of developing and producing 

United States currency notes, trusted 

worldwide.

Program Increases

Currency Reader Coupon Program 

+$69,357,000 / +2 FTE

The FY2013 Budget funds the implementation 

of the BEP legislative proposal – “Currency 

Reader Coupon Program”. The program will 

be managed in-house and it is estimated that 

40 percent of the blind population and 10

percent of the visually impaired population 

will request a coupon for a free currency 

reader. Without this legislative authority, the 

program is expected to cost $122 million in 

FY 2013.

Expected increase in Next Generation $100 

Currency Note Production +$5,100,000 / +0 

FTE 

In order to meet increased international 

demand for $100 notes, the FY 2013 order is 

expected to include a higher number of these 

costly notes than previously anticipated.
Explanation of Budget Activities

Manufacturing ($665,973,000 from 

revenue/offsetting collections)

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.

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 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.

In October 2008 the United States District 

Court ruled that the Department of the 

Treasury and BEP must provide meaningful 

access to the denomination of U.S. currency 

notes for blind and visually impaired persons. 

The FY 2013 Budget proposes to authorize the 

Bureau to implement a coupon program to 

distribute currency readers as a cheaper 

alternative to the agency’s existing authority to 

loan these readers to the blind and visually 

impaired. BEP can currently loan readers to 

the public under its general authorities but the 

cost to implement a loan program would be 

significant. A coupon program to fund public 

purchases of readers would be much more 

cost-efficient; BEP anticipates a coupon 

program could be approximately half as 

expensive as the loan program. The Federal 

Reserve has indicated it would support the

coupon program as the most cost effective 

method; however, implementation of a coupon 

program would require BEP to be granted 

specific statutory authority to do so. Without 

this legislative authority, the program is 

expected to cost $122 million in FY 2013.

Sec. 121. Subchapter IV of chapter 51 of Title 

31, United States Code, is hereby amended by 

adding after section 5144 the following:

Sec. 5145 Currency Reader Program

The Secretary of the Treasury may implement 

and administer a Currency Reader Program 

through which a United States resident, who is 

blind or visually impaired, may obtain a 

coupon that can be applied toward the 

purchase of a device to denominate United 

States currency. Amounts in the Bureau of 

Engraving and Printing Fund described in 

section 5142 of title 31, United States Code, 

shall be available to pay for expenses of this 

program. The Secretary shall include these 

expenses in the cost charged to the Board of 

Governors of the Federal Reserve System for 

the services of meeting the Board’s order for 

new notes.
BEP Performance by Budget Activity

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

Actual Actual Actual Target Target

Manufacturing Manufacturing Costs For Currency 

(Dollar Costs Per Thousand Notes 

Produced) ($) 

32.77 44.85 34.6 48.0 50.0

Key: DISC - Discontinued and B - Baseline

Description of Performance

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, Pamela Gardiner.

Manufacturing Costs for Currency (dollar cost 

per 1,000 notes produced) has performed at or 

better than its annual targets for the past seven 

years. In 2011 the cost of manufacturing was 

lower than anticipated as the actual for this 

measure was $34.60 per 1,000 notes produced 

against a goal of $39.00. This was primarily 

due to the suspension of production on the new 

$100 Note, pending the outcome of 

collaboration with major stakeholders. As

production of these notes resume, the overall 

cost of manufacturing will increase. The 

performance goals for both 2012 and 2013 

reflect the increased production of high cost 

redesigned $100 notes as a proportion of the 

total annual order, and are set at $48.00 in 

2012 and at $50.00 per 1,000 notes produced 

in 2013.