Bureau of Engraving and Printing 

Program Summary by Budget Activity 

(Dollars in thousands) 

FY 2008 FY 2009 FY 2010 Budget Activity Obligated Estimated Estimated $ Change % Change

 Manufacturing $476,700 $519,650 $530,000 $10,350 2.0%

 Protection and Accountability of Assets $61,500 $61,000 $61,000 $0 0.0%

Total Cost of Operations $538,200 $580,650 $591,000 $10,350 1.8%

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 2010 include: 

• Redesign the $100 note. Development 

of a redesigned $100 note is currently in 

process. BEP expects to gain design 

approval by the Secretary of Treasury 

and to begin production in the 

2009/2010 time frame. 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 improve productivity, 

reduce BEP’s environmental impact, and 

provide needed capabilities to produce 

increasingly more complex currency 

note designs. 

• Train and prepare 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, The 

Bureau, in coordination with the 

Department of Treasury, commissioned 

a study that began in 2008 to assess 

improved methods for denominating 

currency for the blind and visually 

impaired; the results of the study will be 

released for public comment in 2009. 

• Install a new wastewater recycling 

system that will recycle approximately 

95% of water used in the printing 

process. This investment is indicative of 

the Bureau’s commitment to keeping the 

greenback and the environment “green”. 

• 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. 

Department of the Treasury - Budget in Brief FY 2010 Page 79
• 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. 

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. The Bureau 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. 

In line with BEP’s vision, the Bureau’s top 

priorities for FY 2010 include the continued 

re-tooling and retrofitting of the currency 

production process which will allow the BEP 

to improve productivity and reduce its 

environmental impact. This initiative will also 

provide the needed capabilities to produce 

increasingly more complex currency note 

designs which would improve the nation’s 

currency to better serve the needs of 

Americans and others, including the blind and 

visually impaired. The new equipment will 

also ensure that the BEP continues to operate 

in an efficient and cost-effective manner. 

Another top priority for FY 2010 is the 

redesign the $100 note. Development of a 

redesigned $100 note is currently in process. 

BEP expects to gain design approval by the 

Secretary of Treasury and begin production in 

the 2009/2010 time frame. The Federal 

Reserve will determine when the new note is 

issued to the public. 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 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 ($530,000,000 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 

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. 

Department of the Treasury - Budget in Brief FY 2010 Page 80
Legislative Proposals 

 

Representation Funds - This legislative 

proposal would authorize the Bureau of 

Engraving and Printing to expend up to $5,000 

per fiscal year from its revolving fund for 

official reception and representation expenses. 

The Bureau’s head will use these funds to pay 

for expenses associated with official Bureau 

events, characterized by a mix of social and/or 

business purpose when hosting foreign 

dignitaries involved in the security printing 

and banking industries. 

Capital Investments Summary 

 

Major Investments: BEP has no planned 

independent major investments for 2010. 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. 

BEP Performance by Budget Activity 

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Budget Activity Performance Measure Actual Actual Actual Target 

Met? Target Target

Manufacturing for Manufacturing costs for currency 

BEP (dollar costs per thousand notes 

produced) ($) (E) 

27.49 28.71 29.47 Yes 34 37 

Manufacturing for Percent of currency notes delivered to 

BEP the Federal Reserve that meet 

customer quality requirements (%) 

(Oe) 

99.90 100.00 100.00 Yes 99.90 99.90 

Protection and Currency shipment discrepancies per 

Accountability of million notes (%) (Oe) 

Assets 

0.01 0.01 0.01 Yes 0.01 0.01 

Protection and Security costs per 1000 notes 

Accountability of delivered ($) (E) 

Assets 

6.25 6.00 5.65 No 5.65 5.10 

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. 

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. 

Department of the Treasury - Budget in Brief FY 2010 Page 81