United States Mint

FY 2013

President’s Budget

Submission
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Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

1.1 – Resource Detail Table........................................................................................................ 3

1B – Mission Priorities and Context........................................................................................... 3

Section 2 – Budget Adjustments and Appropriation Language............................................... 7

2.1 – Budget Adjustments Table................................................................................................. 7

2A – Budget Increases and Decreases Description..................................................................... 7

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

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

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

Section 3 – Budget and Performance Report and Plan........................................................... 14

3A – Manufacturing.................................................................................................................. 14

3.1.1 – Manufacturing Budget and Performance Report and Plan ........................................... 19

3B – Protection ......................................................................................................................... 19

3.1.2 – Protection Budget and Performance Report and Plan................................................... 19

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

4A – Capital Investment Strategy............................................................................................. 20
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Section 1 – Purpose

1A – Mission Statement

To manufacture and distribute circulating coins, precious metal and collectible coins, and 

national medals to meet the needs of the United States.

1.1 – Resource Detail Table

Dollars in Thousands

% Change

FY 2011 FY 2012 FY 2013 FY 2012

Actual Estimated Estimated to FY 2013

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Budgetary Resources:

Revenue/Offsetting Collections

Circulating $776,910 $494,370 $469,000 -5%

Bullion/Numismatic $4,193,077 $3,480,700 $3,089,600 -11%

Total Revenue/Offsetting Collections $4,969,987 $3,975,070 $3,558,600 -10%

Total Budgetary Resources Available $4,969,987 $3,975,070 $3,558,600 -10%

Expenses/Obligations

Circulating 840 $578,130 856 $365,714 821 $395,935 -4% 8%

Bullion/Numismatic 947 $4,096,760 991 $3,441,124 951 $3,055,811 -4% -11%

Total Expenses/Obligations 1,787 $4,674,890 1,847 $3,806,838 1,772 $3,451,746 -4% -9%

Net Results ERR $295,097ERR $168,232ERR $106,854 -36%

Capital Investments $26,688 $31,408 $31,410 0%

Coin Shipments (in Millions)

Circulating:

One Cent 4,289 4,672 5,051 8%

5-Cent 914 812 901 11%

Dime 1,403 1,433 1,585 11%

Quarter 323 675 860 27%

Half Dollar 0 0 0 0%

Dollar 467 95 0 -100%

Total Circulating 7,396 7,687 8,397 9%

1B – Mission Priorities and Context

The United States Mint (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 Mint provides security for assets, including the 

government’s reserves of gold bullion, silver bullion, coins and coinage metals. The Mint is the 

world’s largest coin manufacturer with production operations in California, Colorado, New York 

and Pennsylvania, as well as the United States Bullion Depository in Kentucky and Headquarters 

in Washington, D.C. The Mint supports the Department of the Treasury’s strategic goal to 
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Enhance U.S. Competitiveness and Promote International Financial Stability and Balanced 

Global Growth.

Vision

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

products, customer service and workplace. The Mint has four strategic goals to help it fulfill its 

vision and mission. They are: 1) Effectively met all circulating demand; 2) Effectively managed 

bullion and numismatic programs; 3) A safe, engaged and innovative workforce; and 4) 

Leadership and organizational excellence.

 

FY 2013 Priorities

 Circulating - Efficiently and effectively mint and issue approximately 8.4 billion circulating 

coins in FY 2013 to meet the needs of commerce. 

 Bullion – 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. 

 Numismatic - Produce and distribute numismatic products in sufficient quantities to make 

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

strike and prepare for presentation Congressional Gold Medals and commemorative coins, as 

required by law.

 Protection - Continue to secure over $400 billion in market value of the Nation’s gold 

reserves, silver and other assets. 

Context

Since Fiscal Year (FY) 1996, the Mint has operated under the United States Mint Public 

Enterprise Fund (PEF). As authorized by Public Law 104-52 (codified at 31 U.S.C. § 5136), the 

PEF eliminates the need for appropriations. Proceeds from the sales of circulating coins to the 

Federal Reserve Banks (FRB), bullion coins to authorized purchasers, and numismatic items to 

the public and other customers are paid into the PEF and provide the funding for Mint 

operations. All circulating, bullion and numismatic operating expenses and capital investments 

incurred for the 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 offbudget and on-budget receipts. Off-budget receipts consist of seigniorage, the difference 

between the receipts from the Federal Reserve System from the sale of circulating coins at face 

value and the full costs of minting and distributing circulating coins. Seigniorage is deposited 

periodically to the General Fund where it reduces 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 bullion and numismatic 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. 
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The 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 Mint’s funding source, fully covering budget outlays, which adjust as the necessary resources 

are engaged to fulfill prevailing demand. The vast majority (approximately 90 percent in FY 

2011) of budget outlays are for procurement of metals and materials for conversion into finished 

goods. The amount spent each fiscal year on procuring metals and materials is determined by 

the demand for coins and coin products. Demand determines the quantity of metals and 

materials the Mint must purchase to manufacture required production volumes. Open 

commodity market price trends determine the price the Mint pays to purchase those metals and 

materials. The economic environment can significantly affect the Mint’s budget outlays by 

influencing these two external factors.

The PEF funding model remains viable under current conditions for each line of business. The 

numismatic program (including collectible coins and sets, bullion coins, national medals, and 

related accessories) is designed to ensure the 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. However, the PEF funding model for 

circulating operations currently faces a risk because of the rising cost of metal. Increasing metal 

prices have driven production costs to exceed the face value of one-cent coins (pennies) and 5-

cent coins (nickels) since FY 2006. Positive seigniorage from minting and issuing higher 

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

nickels. Consequently, overall positive seigniorage from the circulating coin program has 

become highly dependent on the production of higher denominations, but increases in metal 

prices have dramatically reduced the seigniorage accrued from these higher denomination coins 

as well. To address the effect of rising metal prices on the financial viability of the circulating 

coin program, the Mint is conducting research and development (R&D) on potential new 

metallic coinage materials, pursuant to the Coin Modernization, Oversight, and Continuity Act of 

2010 (Public Law 111-302). From this R&D effort, the Mint must issue biennial reports to 

Congress, analyzing production costs for each circulating coin, cost trends for such production, 

and possible new metallic materials or technologies for the production of circulating coins. 

These reports also must include detailed recommendations for any appropriate changes to the 

metallic content of circulating coins in such a form that the recommendations could be enacted 

into law as appropriate, as well as recommendations for changes in the methods of producing 

coins that would further reduce the costs to produce circulating coins. Notes on the legislative 

changes that are necessary to achieve such goals must also be included. The first biennial R&D 

report is due to Congress in December 2012.

Circulating

Based on current economic data and assuming a steady economic recovery, circulating coin 

demand is anticipated to grow over each of the next three fiscal years. In FY 2011, circulating 

coin shipment volumes increased to 7.4 billion from 5.4 billion in FY 2010, and seigniorage

increased by 16.0 percent. Revenue growth in FY 2011 was due to increased shipments of all 

denominations. In FY 2012, increases predominantly in lower denomination coin shipments are 

projected. However, the Mint expects the Federal Reserve will order significantly more quarters 

in FY 2012 to fulfill both collector and transactional demand. The Mint expects to continue to 

mint and issue the penny and nickel at costs above their face values.
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Circulating coin production for FY 2013 is forecasted at 8.4 billion coins—approximately a 9

percent increase over the FY 2012 projection and a 14 percent increase over FY 2011 

production. Penny, nickel and dime coin shipments are expected to increase eight to 11 percent 

in FY 2013 from FY 2012 as coin demand steadily improves. Anticipated quarter-dollar coin 

shipments reflect a 27 percent increase in demand, the largest projected increase for FY 2013 

among the coin denominations. 

The Secretary of the Treasury has directed the United States Mint to suspend minting and issuing 

circulating Presidential $1 Coins beginning in calendar year 2012. Section 5111(a)(1) of Title 

31, United States Code, states that the Secretary ―shall mint and issue coins described in Section 

5112 of this title in amounts the Secretary decides are necessary to meet the needs of the United 

States.‖ Currently, the FRBs hold nearly 1.4 billion $1 coins in inventory. Based on current 

trends, the Federal Reserve estimates that the FRBs’ inventories of $1 coins are sufficient to 

meet the needs of the United States for the next several years. Regular circulating demand will 

be met through the FRBs’ existing inventories of $1 coins. Even though circulating $1 coin 

production has been suspended, the Mint forecasts positive seigniorage during the next two fiscal 

years.

Bullion

The 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. The estimates included in this budget 

are based on the assumption that bullion coin revenue is expected to gradually decline as gold 

and silver prices ease and investor demand weakens. Specifically, budget estimates assume gold 

prices will decline to the mid-$1,400 per ounce range through FY 2012 and decline to under 

$1,400 per ounce in FY 2013, and silver prices are anticipated to decline to under $35 per ounce 

through FY 2012 and decline to under $32 per ounce in FY 2013.

Numismatic

In FY 2011, numismatic revenue increased considerably due to three primary factors: (1) first 

and most significantly, higher commodity prices for precious metals; (2) the release of both 2010 

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

was atypical and will not be repeated in subsequent fiscal years; and (3) the Mint offered a 

greater proportion of its numismatic products for sale earlier in the year rather than later. As a 

result, numismatic revenue increased dramatically. Numismatic revenue is expected to decline 

from the FY 2011 peak but remain strong relative to prior years. Numismatic sales are projected 

to be $595.9 million in FY 2012. Although this reflects a 17 percent decline in revenue from the 

unusual revenue peak experienced in FY 2011, it is still well above prior fiscal years’ sales. FY 

2013 numismatic sales are projected to be $524.3 million, 11 percent below the projected 

revenue of FY 2012, reflecting continued reduction in annual sales volumes.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

United States Mint FTE Amount

FY 2012 Estimated 1,847 $3,806,838

Changes to Base:

Maintaining Current Levels (MCLs): - $40,470

Maintaining Current Levels - $40,470

Non-Recurring Costs: - ($353,049)

Forecast Net Reduction in Required Purchase of Metal Raw Materials - ($347,049)

Reductions in Product Delivery Costs - ($6,000)

Efficiency Savings: (75) ($42,513)

Manufacturing Process Improvements - ($1,465)

FTE Reductions (all departments) (75) ($3,245)

IT Service Management - ($798)

Green Initiatives - ($674)

Voice Over Internet Protocol (VOIP) - ($170)

Contract Savings - ($13,700)

Restructure Information Technology Architecture Roadmap - ($10,700)

Space Consolidation - ($9,200)

Discontinue Expedited Shipping Costs - ($1,500)

Reduced Travel Costs - ($650)

IT Asset Refresh - ($411)

Subtotal FY 2013 Changes to Base (75) ($355,092)

Total FY 2013 Base 1,772 $3,451,746

Total FY 2013 Estimated 1,772 $3,451,746

2A – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ....................................................+$40,470,000 / +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).

Non-Recurring Costs .............................................................................-$353,049,000 / +0 FTE

Forecast Net Reduction in Required Purchase of Metal Raw Materials -$347,049,000 / +0 FTE 

Both the bullion and numismatic programs experienced dramatic increases in sales in FY 2010. 

During FY 2011, demand for these programs has remained strong. Revenue for these programs 

is expected to decline somewhat in FY 2012. In FY 2013, sales are expected to continue to 

decline, but remain above pre-2010 levels. As the Mint’s costs for metal follows coin demand, 

metal purchase projections are down for FY 2013.

Reductions in Product Delivery Costs -$6,000,000 / +0 FTE 

Costs for product delivery are a direct result of sales volumes. Numismatic sales are anticipated 

to decline in FY 2013 and product delivery costs are therefore expected to decline as well.
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Efficiency Savings ...................................................................................-$42,513,000 / -75 FTE

The Mint endeavors to minimize costs while keeping product quality and customer service at 

peak levels. In its efforts to increase efficiency and effect savings, the bureau has identified the 

following efficiencies, savings and reductions:

Manufacturing Process Improvements -$1,465,000 / +0 FTE 

The Mint at Philadelphia developed a new process that improves coin quality and appearance,

and increases die life. The implementation of a new blank preparation process that reduces 

friction between dies and blanks improves the quality of coinage, and doubles die life, decreasing 

the number of dies that need to be produced and replaced in the stamping operation and 

increasing operational efficiency.

FTE Reductions (all departments) -$3,245,000 / -75 FTE 

As a result of process improvements, efficiency gains and reduced production levels, the Mint’s 

staffing levels have gradually declined over time. This trend is anticipated to continue into FY 

2013. Labor reductions will be accomplished through natural attrition and decreased number of 

vacancies across all departments.

IT Service Management -$798,000 / +0 FTE 

This project automates and enhances the Mint’s ability to support internal and external 

customers, improve the efficiency of its information technology infrastructure, and upgrades 

maintenance capabilities for that infrastructure.

Green Initiatives -$674,000 / +0 FTE 

The Mint Headquarters building in Washington, D.C. has been ENERGY STAR certified. By 

making simple adjustments like replacing light switches with motion sensors and converting to 

automatic paper towel dispensers, the Headquarters building is experiencing significant savings. 

The cleaning contractor uses only ―green‖ materials (such as recycled paper products and 

environmentally friendly cleaning products), and the Mint’s construction contractors are required 

to use green products when feasible. By adding weather stripping, insulation, and energy 

efficient light bulbs, the bureau saves money and reduces its carbon footprint.

Voice Over Internet Protocol (VOIP) -$170,000 / +0 FTE 

The Mint is implementing Voice Over Internet Protocol. Investment in this technology is 

expected to reduce annual telecommunications maintenance costs.

Contract Savings -$13,700,000 / +0 FTE 

Achieving contract savings is a priority for the Mint. Savings are expected to result from 

continued re-evaluation of purchase orders for strategic sourcing opportunities, and through 

continued efforts to negotiate more advantageous contract terms. This effort should also foster 

increased competition and help the Mint meet its procurement savings goals.

Restructure Information Technology Architecture Roadmap -$10,700,000 / +0 FTE 

This effort aims to restructure and simplify the Mint’s information technology environment, 

eliminate redundant applications and integrate all components that need to draw data from a 

common data source. Substantial savings should be realized by integrating multiple technologies 
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and eliminating otherwise unnecessary costs that to date have been required to maintain the 

current architecture.

Space Consolidation -$9,200,000 / +0 FTE 

The Mint will eliminate the space previously needed to house some of its Headquarters 

employees at the 799 9th Street building. The lease for this building expires in FY 2012, and all 

of the Mint’s Headquarters employees will be relocated to one building at 801 9th Street, which is 

expected to reduce rent costs significantly. The gross expense of the lease is $9.2 million. Other 

tenants have subleased space within the 799 9th Street building and have been reimbursing the 

Mint a portion of the gross leasing costs. The Mint expects to realize net savings of $1,251,000.

Discontinue Expedited Shipping Costs -$1,500,000 / +0 FTE 

Customers placing coin orders in excess of $300 receive a complimentary shipping upgrade from 

standard delivery to expedited delivery. With the implementation of its new Order Management 

System, the Mint will adjust its shipping methods to eliminate the upgrade, reducing shipping 

costs and potentially lowering product prices.

Reduced Travel Costs -$650,000 / +0 FTE 

By increasing the use of videoconferencing to perform mission critical requirements, the Mint 

expects to considerably reduce its travel costs.

IT Asset Refresh -$411,000 / +0 FTE 

To date, telecommuting and travel activities have required many Mint employees to be assigned 

both a desktop and laptop computer. By replacing desktop computers with a laptop and docking 

station, the Mint can realize substantial cost savings, increase staffing productivity and 

flexibility, and reduce IT maintenance costs.
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2.2 – Operating Levels Table

Dollars in Thousands

 FY 2011 FY 2012 FY 2013

United States Mint Actual Estimated Estimated

FTE 1,787 1,847 1,772

Object Classification

11.1 - Full-time permanent 130,257 146,405 144,668

11.3 - Other than full-time permanent 781 781 768

11.5 - Other personnel compensation 11,132 11,132 10,954

11.9 Personnel Compensation (Total) 142,170 158,318 156,390

12 - Personnel benefits 43,580 44,661 44,794

13 - Benefits for former personnel 1,050 1,050 1,050

21 - Travel and transportation of persons 2,212 3,556 2,906

22 - Transportation of things 34,236 34,849 27,349

23.1 - Rental payments to GSA 385 376 425

23.2 - Rental payments to others 22,799 27,635 18,435

23.3 - Communication, utilities, and misc charges 10,392 12,135 11,291

24 - Printing and reproduction 2,147 2,582 2,582

25.1 - Advisory and assistance services 43,540 46,705 35,207

25.2 - Other services 54,056 60,029 46,329

25.3 - Other purchases of goods and services from Govt. accounts 20,482 21,818 21,818

25.5 - Research and development contracts 2,105 2,242 2,242

25.7 - Operation and maintenance of equip 10,519 11,205 9,329

26 - Supplies and materials 13,416 17,530 17,530

26.7 - Raw Materials 4,242,560 3,327,712 3,019,632

31 - Equipment 2,546 3,020 3,020

32 - Land and structures 26,688 31,408 31,410

42 - Insurance claims and indemnities 7 7 7

Total Budget Authority 4,674,890 3,806,838 3,451,746

Budget Activities:

Manufacturing 4,623,384 3,806,838 3,451,746

Protection 51,506 0 0

Total Budget Authority 4,674,890 3,806,838 3,451,746
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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] the aggregate amount of new 

liabilities and obligations incurred during fiscal year [2012] 2013 

under such section 5136 for circulating coinage and protective 

service capital investments of the United States Mint shall not 

exceed [$20,000,000] $19,000,000. (Department of the Treasury 

Appropriations Act, 2012.)

2C – Legislative Proposals

Cooperative Efforts

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.

[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.]
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Coinage Materials Modernization Act (CMMA)

The recently passed Coin Modernization, Oversight and Continuity Act (Act) (CMOCA) (Public 

Law 111-302) provides the Secretary R&D 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.

Increasing metal prices have driven production costs to exceed the face value of one-cent coins 

(pennies) and 5-cent coins (nickels) since FY 2006, and have deteriorated the returns realized 

from other circulating coinage. Should the total cost of producing coins ever exceed their face 

value (thereby reducing seigniorage) the United States Mint has reserved $248.8 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 $248.8 million in its 

PEF, the United States Mint could eventually require an appropriation or borrowing authority to 

fund circulating operations.

The 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 presently 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 cost-effective materials.

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, 
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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.

.999 Silver Proof Sets

Under current law, the half-dollar, quarter-dollar and dime coins in silver proof sets ―shall be 

made of an alloy of 90 percent silver and 10 percent copper.‖ Allowing the Mint to have 

flexibility in this composition improves efficiency in the process of manufacturing silver proof 

sets and lowers the Mint’s production costs for these products. The Mint recommends pursuing a 

change to the law such that the coins in silver proof sets would be required to be no less than 90 

percent silver. The lowering of production costs translates to savings that would be passed on to 

the customer as with other numismatic products, and efficiency gains in production that may 

result in some modest annual savings.

Sec. 123. (a) Section 5112(t)(6)(B) of Title 31, United States Code, is amended by striking "90 

percent silver and 10 percent copper" and inserting in its place "no less than 90 percent silver."

(b) Section 5132(a)(2)(B)(i) of Title 31, United States Code, is amended by striking "90 

percent silver and 10 percent copper" and inserting in its place "no less than 90 percent silver."

Eliminate the 20 percent requirement in the Native American $1 Coin Act

This legislative proposal seeks to eliminate 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 circulating and numismatic $1 coins minted and issued in a year. 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. Currently, Federal Reserve 

Banks (FRBs) hold nearly 1.4 billion $1 coins in their inventories. These excessive inventories 

resulted from depository institutions re-depositing with the FRBs significant amounts of $1 

coins. To address the excess $1 coin inventory problem, the United States Mint effectively has 

suspended the production of all $1 coins for circulation, and will mint and issue $1 coins solely 

for numismatic purposes until the FRBs have drawn down these excessive inventories. As a 

consequence, the elimination of the 20-percent requirement 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.

Sec. 124. Section 5112(r) of title 31, United States Code, is amended by striking paragraph (5).
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Section 3 – Budget and Performance Report and Plan

3A – Manufacturing

($3,451,746,000 from revenue/offsetting collections): 

The Mint has one budget activity: Manufacturing. This budget activity encompasses the 

bureau’s three major programs: Circulating coinage, bullion coins, and numismatic coin 

products. The goal owner for the Manufacturing budget activity is the Mint’s Deputy Director, 

Richard Peterson.

Circulating Coinage Program

The primary mission of the Mint is to enable commerce by minting and issuing circulating 

coinage to meet the needs of the United States. 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 beginning in calendar year 2012. During the first quarter of Fiscal 

Year 2012, the Mint produced and shipped approximately 95 million James Garfield Presidential 

$1 Coins, and incurred related costs. FY 2012 revenue, seigniorage and cost estimates have been 

revised to reflect the decrease in $1 coins. The FY 2013 budget reflects complete suspension of 

the product.

The Mint delivers circulating coinage to the Federal Reserve Banks at face value for subsequent 

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

The 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 2012, the Mint will release coins in the 

America the Beautiful Quarters® Program honoring El Yunque National Forest (Puerto Rico), 

Chaco Culture National Historical Park (New Mexico), Acadia National Park (Maine), Hawaii 

Volcanoes National Park (Hawaii) and Denali National Park (Alaska). In 2013, the Mint will 

release quarters 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).

Bullion Program

The 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 bullion coins are backed by the United States 

Government.

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

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

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

Mint to mint and issue five-ounce silver bullion coins replicating each of the designs featured on 
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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 ever produced by the Mint. 

America the Beautiful Silver Bullion Coins sell at prevailing silver market prices. Silver is 

typically the lowest-priced precious metal, making these bullion coins an affordable choice for 

most investors.

Numismatic Program

The 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 $1 Coin Program, recurring programs, commemorative coins and 

medals, and occasional special projects.

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

circulating coinage. These products are designed for mass market appeal. Recurring numismatic

products include proof sets, silver proof sets, uncirculated sets, quarter-dollar coin sets and $1 

coin sets. While the minting of Presidential $1 Coin for circulation has been suspended, the coin 

will continue to be produced for numismatic sale.

The 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 2012, the Mint will release Presidential $1 Coins honoring Presidents Chester Arthur, Grover 

Cleveland (first non-consecutive term), Benjamin Harrison, and Grover Cleveland (second nonconsecutive term). In 2013, the Mint will release Presidential $1 Coins honoring Presidents 

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

In 2012 and 2013, the Mint will also continue to mint and issue $1 coins celebrating the 

important contributions made by Indian tribes and individual Native Americans to the 

development of the United States and the 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 celebrate and honor people, places, events, 

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

issued by the 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 for 

projects that benefit the community. In FY 2013, the Mint will mint and issue the Girl Scouts 

USA Centennial Commemorative Coin (Public Law 111-86), the 5-Star Generals 

Commemorative Coin (Public Law 111-262), and the Civil Rights Act of 1964 Commemorative 

Coin Program (Public Law 110-451. The American Eagle Proof and Uncirculated Coin 

Programs consist of the Mint’s premier collectible products. These coins contain platinum, gold 

or silver and are issued in proof or uncirculated quality. Gold proof coins are issued with one-
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tenth, one-quarter, one-half or one ounce of precious metal content. Gold uncirculated coins are 

issued with one ounce of gold content. Silver proof and uncirculated coins are issued with one 

ounce of silver metal content. Platinum proof coins are issued with one ounce of platinum metal 

content.

In FY 2013, the Mint’s total estimated budgetary requirements for operating, metal and capital 

investments are $3,451.7 million.

Description of Performance:

The Mint developed several key performance measures to gauge the bureau’s progress in 

achieving each of its strategic goals 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 FRB 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 Mint’s efficiency in manufacturing and distributing circulating coins to meet the needs of the 

Nation. The strategic goal for this program is ―Effectively met all circulating demand‖.

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 

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.

Seigniorage per dollar issued was $0.45 in FY 2011, above the performance target of $0.41. 

Performance results exceeded the target because the mix of ordered coins shifted toward higher 

denominations. Quarter-dollar and $1 coins, which were anticipated to make up only seven 

percent of total shipments, represented 10 percent. 

The Mint expects seigniorage per dollar issued to decline in future years because of significant 

changes to the denomination mix of coins – primarily, a decrease in $1 coins in FY 2012. The 

performance target for seigniorage per dollar issued is $0.17 for FY 2012 and $0.14 for FY 2013.

The Mint plans to achieve the FY 2013 target as the expected result from normal manufacturing 

operations. Ongoing efforts to achieve greater efficiency include aggressive cost-cutting, 

procurement savings, and improved internal 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 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 Mint’s service and product quality. The CSI is a quantitative score of survey results. 
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The main factors driving CSI performance are customers’ ordering experience, the availability of 

products that customers want, and the Mint’s performance in delivering high-quality numismatic 

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 Mint through 

information technology systems and customer service representatives.

CSI reached 91.7 percent in FY 2011, above the target of 88.0 percent. Customer service 

performance improved this year largely due to the Mint’s ability to offer the numismatic versions 

of American Eagle products for sale. These popular products were previously unavailable 

because gold and silver blanks were diverted to bullion coin production in accordance with 

statute. The Mint also enhanced customer service by ensuring that the call center and order

fulfillment center continued to meet or exceed performance standards for accessibility, call 

length and order cycle time.

The performance target for CSI is 92.0 percent in FY 2012 and 93.0 percent in FY 2013. The 

Mint plans to achieve the FY 2013 performance target by modernizing the Mint’s order 

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

improved capabilities will be needed to exceed customer expectations in current and future 

numismatic markets. Funding for customer service improvement initiatives or investments is 

covered by the prices charged to sell the coinage and coin products.

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 Mint operations. Lower injury 

rates not only are indicative of a safer work place for the Mint’s employees, but also reduce the 

cost of operations by diminishing lost work-hours and workers’ compensation claims.

The safety incident recordable rate was 2.74 recordable injuries and illnesses per 100 full-time 

workers in FY 2011, below the 3.34 target. Several programs and policies developed over the 

past three years to keep workers and the workplace environment safer have kept injury and 

illness rates low. Executives also meet monthly to discuss injury and illness rates, any incidents 

and corrective actions. These efforts include discussing initiatives to reduce risk and prevent 

future incidents. 

The performance target for safety incident recordable rate is 3.24 in FY 2012 and 3.14 in FY 

2013. The Mint plans to achieve the FY 2013 performance target by formalizing internal 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 Mint also aims to 

reduce incidents resulting from material handling, which make up approximately half of total 

incidents each year. Each facility will complete annual projects to eliminate material handling 

hazard beginning in FY 2012. Any investments and expenses for safety programs are applied to 
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the costs of 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 goal for this program is ―Effectively managed bullion and numismatic programs‖. 

Increases in units sold allow the Mint to potentially reduce product unit costs and thus product 

sales prices, since fixed costs would be spread over a greater number of units. Increased unit 

sales also indicate greater demand for the Mint’s products.

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. Internally, the 

Mint can affect performance through the design and quality of products. Also, promotion 

campaigns may increase the general public’s and coin-collectors’ awareness of Mint products

Numismatic sales units totaled 7.3 million in FY 2011, exceeding the target of 7.0 million. 

Performance improved due to strong sales of American Eagle numismatic products and the 

release of the 2011 United States Mint annual coin sets earlier in the calendar year. Sales of new

America the Beautiful Quarters products and the 2011 September 11 National Medal also 

augmented FY 2011 results.

The performance target for numismatic sales units is 7.0 million in FY 2012 and 7.0 million in 

FY 2013. The Mint plans to achieve the FY 2013 performance target by providing high quality 

products, enhancing customer service, marketing core products to current collectors and 

exploring new products to appeal to a broader range of customers.

As previously stated, the release of both 2010 and 2011 American Eagle gold, silver and 

platinum products within the 2011 fiscal year was atypical and will not be repeated. This dual 

release of products caused the dramatic increase in revenue. The Mint expects new product sales 

will offset anticipated declines from not having two sales cycles in future fiscal years. As such, 

the performance target for this measure does not increase.

The 2013 Cuts, Consolidations, and Savings (CCS) Volume of the President's Budget identifies 

the lower-priority program activities under the GPRA Modernization Act, 31 U.S.C. 

1115(b)(10). The public can access the volume at: http://www.whitehouse.gov/omb/budget.
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3.1.1 – Manufacturing Budget and Performance Report and Plan

Dollars in Thousands

Manufacturing Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Estimate Estimate

 Revenue/Offsetting Collections $1,469,100 $2,002,796 $2,014,698 $2,215,903 $3,624,483 $4,623,384 $3,806,838 $3,451,746

Total Resources $1,469,100 $2,002,796 $2,014,698 $2,215,903 $3,624,483 $4,623,384 $3,806,838 $3,451,746

Budget Activity Total $1,469,100 $2,002,796 $2,014,698 $2,215,903 $3,624,483 $4,623,384 $3,806,838 $3,451,746

Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Target Target

Customer Satisfaction Index (%) N/A N/A N/A 88.3 86.1 91.7 92.0 93.0

Numismatic Sales Units (Million 

Units)

N/A N/A N/A N/A N/A 7.3 7 7

Safety Incident Recordable Rate N/A N/A N/A N/A 2.29 2.74 3.24 3.14

Seigniorage per Dollar Issued ($) N/A N/A N/A .55 .49 .45 .17 .14

Key: DISC - Discontinued and B - Baseline

3B – Protection

($0 from revenue/offsetting collections): 

The Department of the Treasury eliminated the Protection budget activity and consolidated it 

into the Manufacturing budget activity beginning in FY 2012. The Department determined that 

the Protection budget activity failed to serve a meaningful purpose on a standalone basis and 

unnecessarily complicated budgetary and other financial reporting.

3.1.2 – Protection Budget and Performance Report and Plan

Dollars in Thousands

Protection Budget Activity

Resource Level FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013

Actual Actual Actual Actual Actual Actual Estimate Estimate

 Revenue/Offsetting Collections $36,917 $47,007 $42,598 $43,318 $46,278 $51,506 $0 $0

Total Resources $36,917 $47,007 $42,598 $43,318 $46,278 $51,506 $0 $0

Budget Activity Total $36,917 $47,007 $42,598 $43,318 $46,278 $51,506 $0 $0

Detailed information about each performance measure, including definition, verification and 

validation is available.
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Section 4 – Supplemental Information

4A – Capital Investment Strategy

The Mint is a non-appropriated bureau whose capital investments, along with its 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 are limited to the cumulative depreciation amount incurred for related 

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

capital needs while maintaining spending within depreciation limitations.

The goal of the Mint’s capital strategy is to develop an annual spending plan for projects 

designed to manufacture circulating coins, precious metal and collectible coins and national 

medals in the most cost effective and efficient manner possible. The Mint’s major capital 

investment requirements consist of replacing and/or enhancing coin manufacturing equipment, 

maintaining Mint facilities, and ensuring compliance with safety and environmental laws, 

regulations, and executive orders. These requirements are based on the needs of the Mint’s four 

production facilities and the United States Bullion Depository at Fort Knox.

The Mint’s capital investment strategy includes several broad investment categories with more 

specific projects in each category. 

 The Mint places the highest priority on capital investments that ensure employee safety, as 

well as compliance with environmental and regulatory standards. For example, the Mint 

developed a multi-year plan based on a detailed facilities assessment conducted at all four 

plant sites in 2009. The assessment was designed to identify deficiencies in infrastructure 

needs within the four plant sites. Items identified with a rating of 80 percent or higher 

FY 2011 

Actuals

FY 2012 

Estimated

FY 2013 

Estimated

Circulating Capital Investments (Including Protection)

Circulating Information Technology 2,250.0 1,202.8 1,203.8

Circulating Building Improvements 7,830.0 14,259.0 14,259.0

Circulating Equipment 8,176.0 2,725.0 2,725.0

Total Circulating (Including Protection) $18,256.0 $18,186.8 $18,187.8 

Numismatic Capital Investments

Numismatic Information Technology 885.0 1,202.7 1,203.7

Numismatic Building Improvements 3,691.0 7,443.8 7,443.8

Numismatic Equipment 3,856.0 4,575.0 4,575.0

Total Numismatic $ 8,432.0 $13,221.5 $13,222.5 

Total Capital Investments $26,688.0 $31,408.3 $31,410.3 

Capital Investments

(Dollars in Thousands)

Major Investments
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deficiency rate were ranked highest priority. Included in this assessment are projects such as 

life safety improvements, roof replacement, electrical system upgrades and HVAC 

replacements.

 The Mint has begun to incorporate sustainability into the bureau’s operations and culture, per 

Executive Order 13514 and the Department of the Treasury’s Strategic Sustainability 

Performance Plan. Accomplishing the Mint’s mission and achieving the President’s and the 

Treasury Department’s sustainability goals are important objectives because coin production 

involves intensive use of natural resources. Sustainability projects that reduce the Mint’s 

energy, water and material use during coin production should reduce costs. These 

sustainability projects have the added social benefits of reducing air pollution, water 

pollution, solid waste, and greenhouse gas emissions. 

 New coin legislation mandates a significant portion of the Mint’s capital spending priorities. 

For example, in FY 2011 the Mint purchased a large tonnage press to produce the three-inch, 

five-ounce silver bullion coins required by the America’s Beautiful National Parks QuarterDollar Coin Act of 2008 (Public Law 110-456). Prior to this purchase, the Mint did not have 

the capability to mint three-inch coins in sufficient quantities.

Overall, the Mint’s capital strategy provides a foundation for identifying and prioritizing

investments needed to achieve the bureau’s goals for building safety and improvements, 

manufacturing process efficiencies improvements and sound environmental management. This 

strategy fosters a collaborative approach to making the best use of available funding and 

provides for the most efficient and effective use of limited capital resources.

Capital Investment Strategy (IT)

The Mint’s IT strategy is tightly aligned with ―The 25-Point Implementation Plan To Reform 

Federal Information Technology Management,‖ created by the Federal Chief Information Officer 

(CIO) in December 2010. The Mint’s IT strategy emphasizes reductions in system redundancy, 

adoption of new technology developments, and optimization of formal governance structures to 

manage IT investments and programs. In early 2010, the Mint conducted a comprehensive IT 

assessment and analysis to determine current and future business and IT needs. Based on this 

assessment, the bureau developed an enhanced IT strategic plan and roadmap that will be 

executed over the next five years. The IT roadmap will transition the Mint’s supply chain 

management environment from disparate technologies and silo applications to a more cohesive 

solution based on an Enterprise Resource Planning (ERP) approach. The goal is to implement 

solutions that simplify the IT environment, eliminate redundant applications and integrate all 

necessary components that draw data from a common source. This plan is intended to generate 

substantial annual savings by eliminating costs necessary to maintain the current environment 

and integrate multiple technologies. 

The IT roadmap will also involve integration of multiple websites, unification of sales channels 

and data consolidation. The Mint’s external web presence is divided currently between 

commerce and non-commerce sites. Usability studies, as well as feedback from the public,

indicate that the current web presence creates an inconsistent and inconvenient experience for 

visitors to the sites. Moreover, information about the Mint’s numismatic customers is in 
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disparate systems that prevent the Mint from effectively communicating with and providing 

service to its customers. Unifying sales channels and consolidating data into one information 

repository will provide for better tracking of site-visitor behavior, improve communication, and 

ultimately improve sales and customer service. Data consolidation will also provide better 

information sharing and transparency. Ultimately, the bureau will create a unified internet 

presence and a seamless browsing experience for visitors seeking to obtain public information 

about the Mint or purchase numismatic products. The Mint is exploring cloud-based solutions 

and anticipates considerable cost savings by eliminating one of two vendors currently providing 

operation support for web sites and removing duplicate hardware and infrastructure services.

In addition to technological advances, the Mint places high value on IT governance. IT 

investments and projects are reviewed monthly by the CIO to ensure they are within cost, on 

schedule and meeting established performance metrics. During this review, any high-risk 

investments or projects that are underperforming, over budget or behind schedule are identified. 

High-level decisions regarding the termination of an investment require consultation with the 

internal bureau user, the IT Department and Mint executive team. Substantial changes to the 

Mint’s technical architecture are governed by the Architecture Review Board, and facilitated by 

its Chief Enterprise Architect. Operational activities are monitored by the Mint Configuration 

Control Board.

A summary of capital investment resources, including major information technology and nontechnology investments is available.

.