Commemorative Coin Reform Act Report to Congress, FY 2002 Second Quarter

For the quarter ending March 31, 2002

PROGRAM-WIDE SUMMARY

Modern commemorative coins authorized by Congress and produced by the United States Mint date from the introduction of the George Washington 250th Anniversary Half Dollar in 1982. Congress authorized a total of 41 commemorative coin programs between 1982-2002, honoring American people, places, events, and institutions. Surcharges from the sales of these coins help fund a variety of organizations and projects that benefit the community at large. United States Mint commemorative coins have generated nearly $422 million in surcharges over the past 20 years for many worthy foundations.

The Commemorative Coin Reform Act of 1996 requires the commemorative coin program to link public funding of special projects to demonstrated private support by requiring recipient organizations to show receipts of donations from private sources that are equal to or greater than the potential proceeds of coin surcharges. It also makes coin program beneficiaries partners in bearing the risks of commemorative coin programs, and it assures that the United States Mint recovers its costs of operating coin programs. Commemorative coins are a benefit, not only to numismatic enthusiasts and the recipient organizations, but also by reaffirming our history to the Nation as a whole. While the commemorative coin programs currently are increasing in their popularity following the 1996 reforms, the program’s well being remains fragile. To ensure that commemorative coin programs continue to reap the benefits of the reforms, the United States Mint must continue to execute and oversee these coin programs in a conscientious, prudent, and businesslike manner.

As of March 31, 2002, cumulative sales for the four active commemorative coin programs (Capitol Visitor Center Commemorative Coins and the American Buffalo Commemorative Coin issued in 2001 and the 2002 Winter Olympic Games Commemorative Coins, and the United States Military Academy Bicentennial Commemorative Coin issued in 2002) generated revenues of $47.5 million. The U.S. Capitol Visitor Center coin program, which ended on March 7, 2002, generated over $13.6 million in sales revenue since the program began. The American Buffalo Silver Dollar program, which sold out just two weeks after the program’s launch, generated nearly $16.7 million in cumulative sales revenue. The 2002 Winter Olympic Games commemorative coins, which were issued beginning in January of 2002, have generated $13.4 million, and the United States Military Academy Bicentennial commemorative silver dollar has generated over $3.7 million since its release on March 16, 2002.

A total of $7.2 million in surcharge revenue was transferred to recipient organizations during the second quarter, nearly $5 million was received by the Smithsonian Institution’s National Museum of the American Indian for sales of the American Buffalo commemorative coin, and $2.2 million was forwarded to the U.S. Capitol Preservation Commission from sales of the Capitol Visitor Center commemorative coins.

FINANCIAL REPORTING

The attached financial statements provide quarterly and cumulative active program data.

U.S. CAPITOL VISITORS CENTER

Program Highlights

The first commemorative coin program of 2001, Public Law 106-126, the U.S. Capitol Visitor Center (CVC) Commemorative Coin Program was authorized to commemorate the first convening of Congress in the Capitol building. Congress established mintages of 100,000 gold coins; 500,000 silver dollar coins; and 750,000 clad half-dollar coins. Surcharges from the sale of the coins are authorized to go toward the construction, maintenance and preservation of the U.S. Capitol Visitor Center. Production for this program ended December 31, 2001, with sales ending March 7, 2002, one year following the program’s launch.

Marketing Activities

During the 2nd Quarter of FY 2002, the United States Mint launched “last chance” print advertisements in Numismatic News and Coin World in an effort to give the readership of these numismatic trade publications one last chance to purchase CVC commemorative coins before the program ended. Additionally, “last chance” banners were produced and added to the United States Mint’s CVC web page to alert our Internet customers of the program’s final sales date.

Analysis of Financial Position

As of March 31, 2002, the United States Mint shipped over 367,000 coins, generating total program revenues of more than $13.6 million, including surcharges of over $3.4 million. Estimated program profits of $1.6 million cover the potential unrecovered expenses of $174,628 in the second quarter financial statement. Cost of goods sold total $4.8 million. Selling, general and administrative expenses were $3.8 million. Second quarter revenues posted a profit of $288,598 for the quarter. During the second quarter, the U.S. Capitol Preservation Commission, the recipient organization for the program, submitted acceptable audited statements meeting the requirement of the Commemorative Coin Reform Act of 1996 that it has raised the necessary funds from private sources. The United States Mint forwarded over $2.2 million to the Commission in the second quarter of 2002.

AMERICAN BUFFALO COMMEMORATIVE COIN

Program Highlights

Authorized by Public Law 106-375, the American Buffalo Coin Commemorative Coin Act of 2000 commemorates the opening of the Smithsonian Institution’s National Museum of the American Indian. Congress established a mintage limit of 500,000 silver dollar coins. The second commemorative coin program of 2001, the American Buffalo Silver Dollar features a reproduction of one of the most famous and beloved designs among coin collectors – the James Earle Fraser Buffalo nickel.

Surcharges from sales of this coin program are authorized for payment to the National Museum of the American Indian (NMAI) to commemorate the opening of the museum and to supplement the museum’s endowment and educational outreach fund.

Coins were released to the public in June 2001. The program was so popular that all 50,000 of the American Buffalo Coin and Currency sets sold out in just five days, and the entire authorized mintage of 500,000 Buffalo Silver Dollars sold out in just two weeks. After numerous requests to strike additional coins, the Secretary of the Treasury decided not to authorize an increase in mintage of the American Buffalo commemorative coin because all the requirements contained in the relevant statute, 31 U.S.C. § 5112(m)(2)(B), were not met. Furthermore, it was noted that increasing mintage levels would be unfair to the many customers who based their decisions to purchase these coins on the advertised mintage levels.

Also, the United States Mint continues to receive inquiries regarding replicas of the new American Buffalo commemorative silver dollar now flooding the numismatic and collectors markets. The replicas are not authentic, are not genuine U.S. coins and are not sponsored or endorsed by the United States Government. Through the United States Mint’s Consumer and Business Awareness Website and the issuance of press releases to the numismatic trade publications, the American public was informed they may be entitled to a refund or redress from the firm that sold the replica if they were bought with the understanding that the replica purchased was a genuine United States Mint product.

Marketing Activities

There were no marketing activities during the second quarter ending March 31, 2002, due to sell-out of the program.

Analysis of Financial Position

As of March 31, 2002, the United States Mint shipped over 499,900 coins1, generating total program revenues of over $16.6 million, including surcharges of $5.0 million, which have been turned over to the recipient organization. Cost of goods sold totaled $6.1 million. Selling, general and administrative expenses were $2.8 million. Estimated program profits stand at $2.8 million. The United States Mint received in this quarter the audited statements from the National Museum of the American Indian of its surcharge matching funds and has transferred funds to them in the amount of $5 million to cover surcharge revenue received from sales of the coins.

2002 WINTER OLYMPIC GAMES

Program Highlights

The 2002 Winter Olympic Commemorative Coin Act, P.L. 106-435, authorizes the production of 400,000 silver dollar coins and 80,000 gold five-dollar coins. In the spirit of the 1996 commemorative coin reform legislation to curb proliferation of commemorative coin programs, the U.S. Olympic Committee has been very responsive to past concerns, and the 2002 Games feature a single coin design for the obverse and reverse of each silver dollar and gold five-dollar coins.

Congress directed the United States Mint to divide the surcharges from the sale of the coins equally between the Salt Lake Organizing Committee for the Olympic Winter Games of 2002 and the U.S. Olympic Committee. The United States Mint has received audited statements from the Salt Lake Organizing Committee and, as of this report, has not yet received the audited statements from the U.S. Olympic Committee. Previous United States Mint commemorative coin programs honoring the Olympics have raised over $130 million for our Olympic athletes and programs.

Marketing Activities

The United States Mint produced and mailed just over 1 million 2002 Winter Olympic Games Commemorative Coin direct mail packages to its customers. This mailing was supported with direct response print advertisements in several numismatic publications, including Numismatic News, Coin World, Coins, and Coin Age. The United States Mint also produced color take-one brochures, which were shipped to the Salt Lake Organizing Committee (SLOC) for distribution at local retail centers and SLOC newsletter mailings. The United States Mint supplied SLOC with plastic acrylic counter stands, which contained program-related artwork to hold the brochures.

A color buck slip insert was produced that promoted the 2002 Winter Olympic Commemorative Coin program and was sent to the United States Mint’s product fulfillment center. These buck slips are being included in product packages being mailed out to customers and are included in customer inquiry packets.

The United States Mint also produced 3.5 million inserts highlighting the Winter Olympic Games commemorative coins, which were included in IRS refund check letters during the month of February 2002.

High-resolution digital coin images were created and distributed to the Salt Lake Organizing Committee that used the images on its website and to link to the Mint’s website. The images were also used in a full-page USA Today print ad and to promote the program on arena “Jumbo-Tron” viewing screens at various Olympic venues.

Analysis of Financial Position

As of March 31, 2002, the United States Mint shipped over 231,000 coins, generating total program revenues of more than $13.4 million. Estimated profits of $2.4 million covered the potential unrecovered expenses of $195,598. Cost of goods sold totaled $4.7 million for the second quarter. Selling, general and administrative expenses are $3.1 million. Second quarter revenues posted a profit of $2.4 million. Two recipient organizations will share the surcharges for the Winter Olympics program – the Salt Lake Organizing Committee (SLOC) and the United States Olympic Committee (USOC). The SLOC has satisfied the private-source fundraising requirement and is qualified to receive surcharge payments from the United States Mint. By the close of the second quarter, the United States Mint had not received the audited statements package from the USOC. Surcharges collected for sales through the second quarter total nearly $3.3 million.

UNITED STATES MILITARY ACADEMY BICENTENNIAL

Program Highlights

The U.S. Military Academy Bicentennial Commemorative Coin Act, P.L. 103-328, authorizes the production of 500,000 silver dollar coins. Surcharges from the sale of the coins will go to the Association of Graduates, U.S. Military Academy, to assist efforts to provide direct support to the academic, military, physical, moral, and ethical development programs of the Corps of Cadets, U.S. Military Academy. As authorized by the enabling legislation, this will be the last modern commemorative comprising silver from the nation’s Defense Logistics Agency stockpile, as the inventory in that stockpile has reached a level which will preclude its use in future mint commemorative coin programs. The Secretary of the Treasury approved final designs for the U.S. Military Academy Bicentennial Commemorative Coin program on May 30, 2001. The U.S. Bullion Depository at West Point is the minting facility for producing the coins. Production began in the last weeks of the first quarter of 2002. Issuance of the coin commenced on March 16, 2002.

Marketing Activities

The United States Mint West Point facility hosted a ceremonial strike for the West Point Bicentennial Commemorative Coin program on March 14, 2002. Dignitaries from the Military Academy, including the Military Academy’s Superintendent, General Lennox, and Department of the Treasury officials attended.

The formal launch for the 2002 United States Military Academy Bicentennial Commemorative Coin program took place on March 16, 2002, coinciding with the issuance date for the coin. This is known as “Founders Day” by the Military Academy and represents the 200th year anniversary of the founding of the United States Military Academy. The United States Mint Director and United States Treasurer attended the Military Academy’s bicentennial celebrations helping to unveil the United States Military Academy Bicentennial commemorative coin designs. The United States Mint provided logistical marketing support and personnel to aid the Military Academy launch this program. United States Mint engravers John Mercanti and James Ferrell, who designed the coins, also attended the launch and signed autographs. The United States Mint conducted sales for the coin at the launch event and sold 12,259 coins – reaching an all-time record for commemorative coin launch site sales.

The United States Mint mailed approximately 1 million direct mail packages to its mailing list and mailed an additional 61,000 packages to United States Military Academy alumni through a list provided by the Academy.

The direct mail campaign is being supported by direct response print advertisements in Coin World, Numismatic News, Coins, and Coin Age publications. A color print advertisement also ran in Assembly, the magazine of the United States Military Academy’s Association of Graduates.

Various program-marketing materials were produced and distributed, including color take-one brochures, counter stands, posters, and information kits. Color buck slip inserts were produced and sent to the United States Mint’s customer fulfillment center. These buck slips are being sent out in product fulfillment packages and customer inquiry packets. Approximately 3.5 million two-color inserts advertising the coin program were produced and mailed to the IRS for inclusion in tax refund checks. Information concerning the United States Military Academy Bicentennial Commemorative Coin program was also posted on the United States Mint’s e-commerce web site.

The United States Mint’s Office of Public Affairs conducted media outreach in an effort to place favorable program-related stories in the media. The Today Show ran two different news segments on the day of the event, which included visuals of the commemorative coin and provided national exposure to its availability.

Analysis of Financial Position

As of March 31, 2002, the United States Mint shipped nearly 123,000 coins, generating total program revenues of more than $3.7 million. Costs of goods sold are just under $1 million for the second quarter and selling, general and administrative expenses are $1.9 million. With potential unrecovered expenses of $593,262, the financial summary shows an estimated program loss of $284,342. Given this second quarter report is accounting for only two week’s sales activity, the United States Mint expects an estimated program profit will be registered in the 3rd quarter report. Surcharges collected for sales through the second quarter total nearly $1.2 million.

NEW CONSUMER AND BUSINESS AWARENESS WEBSITE

The United States Mint continues to provide consumers information regarding the variety of replicas and coin-related products in the market that are easily confused with authentic United States Mint coins and medals through its Consumer and Business Awareness website — www.usmint.gov/consumer. Included on this site is an explanation of differences between a genuine United States Mint American Buffalo commemorative coin and a replica, which is not authentic and is not sponsored or endorsed by the United States Government.

FURTURE COMMEMORATIVE COIN PROGRAMS

2003 First Flight Centennial Commemorative Coins Program (Gold, Silver, Clad)

Program Highlights

This gold, silver and clad coin series will commemorate the 100th anniversary of the Wright brothers’ first flight on December 17, 1903 in Kitty Hawk, North Carolina. United States Mint engraving staff was provided with source materials and began the initial design process in December 2001.

Program surcharges will go to the First Flight Foundation for the purposes of repairing, refurbishing, and maintaining the Wright Brothers Monument on the Outer Banks of North Carolina and expanding or, if necessary, replacing and maintaining the visitor center and other facilities at the Wright Brothers National Memorial Park.

Marketing Activities

The first round candidate designs for the commemorative coins are currently being circulated for an internal roundtable review. Once commemorative coin designs are determined, the recipient organization, the Citizens Commemorative Coin Advisory Committee, and the Commission of Fine Arts will review the designs.

There are currently no other commemorative coin programs authorized for release in 2003.

2004 Thomas Alva Edison Commemorative Coins Program (Silver)

Program Highlights

This commemorative silver dollar will commemorate the 125th anniversary of the invention of the light bulb by Thomas A. Edison. Design concepts for this coin will be provided at a later date.

Program surcharges will be shared as follows:
(1) MUSEUM OF ARTS AND HISTORY- Up to 1/8 to the Museum of Arts and History, in the city of Port Huron, Michigan, for the endowment and construction of a special museum on the life of Thomas A. Edison in Port Huron.

(2) EDISON BIRTHPLACE ASSOCIATION- Up to 1/8 to the Edison Birthplace Association, Incorporated, in Milan, Ohio, to assist in the efforts of the association to raise an endowment as a permanent source of support for the repair and maintenance of the Thomas A. Edison birthplace, a national historic landmark.

(3) NATIONAL PARK SERVICE- Up to 1/8 to the National Park Service, for use in protecting, restoring, and cataloguing historic documents and objects at the `invention factory’ of Thomas A. Edison in West Orange, New Jersey.

(4) EDISON PLAZA MUSEUM- Up to 1/8 to the Edison Plaza Museum in Beaumont, Texas, for expanding educational programs on Thomas A. Edison and for the repair and maintenance of the museum.

(5) EDISON WINTER HOME AND MUSEUM- Up to 1/8 to the Edison Winter Home and Museum in Fort Myers, Florida, for historic preservation, restoration, and maintenance of the historic home and chemical laboratory of Thomas A. Edison.

(6) EDISON INSTITUTE- Up to 1/8 to the Edison Institute, otherwise known as `Greenfield Village,’ in Dearborn, Michigan, for use in maintaining and expanding displays and educational programs associated with Thomas A. Edison.

(7) EDISON MEMORIAL TOWER- Up to 1/8 to the Edison Memorial Tower in Edison, New Jersey, for the preservation, restoration, and expansion of the tower and museum.

(8) HALL OF ELECTRICAL HISTORY- Up to 1/8 to the Schenectady Museum Association in Schenectady, New York, for the historic preservation of materials of Thomas A. Edison and for the development of educational programs associated with Thomas A. Edison.

Marketing Activities

Members of the United States Mint’s Sales and Marketing and Chief Counsel staff will participate in an initial meeting with representatives from six of the eight designated recipient organizations on April 2, 2002. Due to the large number of recipient organizations, the United States Mint asked the eight organizations to determine who will take the lead as the primary liaison with the United States Mint for the implementation of the commemorative coin program.

2004 Lewis and Clark Commemorative Coins Program (Silver)

Program Highlights

The commemorative silver dollar will commemorate the bicentennial of the historic expedition conducted by the Corps of Discovery. The expedition departed St. Louis, Missouri on May 14, 1804. United States Mint engraving staff was provided with source materials and began the initial design process in December 2001.

Program surcharges will go to the Lewis and Clark Bicentennial Council (2/3), and the National Park Service (1/3), for activities associated with commemorating the bicentennial of the Lewis and Clark Expedition.

Marketing Activities

The United States Mint met with representatives of the Lewis and Clark Bicentennial Council in May 2001 to discuss program objectives. The first round candidate designs for the commemorative coin are currently being circulated for an internal roundtable review. Once these designs are determined coinable, they will be reviewed by the sponsoring organization, the Citizens Commemorative Coin Advisory Committee, and the Commission of Fine Arts.

CONCLUSION

Both of the two commemorative programs authorized for 2001, the Capitol Visitor Center Commemorative Coin program and the American Buffalo Commemorative Coin program, have closed. The 2002 Winter Olympic Commemorative Coin program and the 2002 United States Military Academy Bicentennial Commemorative Coin program have both begun program sales, which will continue into 2003.

Both the Capitol Visitor Center and the National Museum of the American Indian has submitted the appropriate audited statements attesting to their compliance with the CCRA requirements and have begun receiving surcharge payments from sales of the commemorative coins. The Salt Lake Organizing Committee has submitted the appropriate audited statements, but the United States Mint is awaiting similar statements from the United States Olympic Committee before surcharge payments can be forwarded. As of this report, the United States Mint is awaiting the appropriate audited statements from the United States Military Academy Association of Graduates.

1The variance between program mintage of 500,000 coins and the 499,900 coins shipped as of December 31, 2001 is due to one of two situations: 1) a small number of shipments were made after the close of the program, or 2) a small number of returns received at the Customer Care Center had not yet been processed for possible sale.

COMMEMORATIVE COIN PROGRAMS
FINANCIAL SUMMARY JANUARY 1, 2002 THROUGH MARCH 31, 2002

CAPITOL VISITOR CENTER BUFFALO 2002 WINTER OLYMPICS UNITED STATES MILITARY ACADEMY Description
REVENUE $574,952 ($3,324) $13,438,797 $3,737,273 Receipts
COST OF GOODS SOLD
Proceeds on Silver $13,836 $357 $423,455 $259,643 Market Value of Mint obtained silver less statutory value of silver
Proceeds on Gold $103,780 $0 $2,466,810 $0 Payments to Treasury’s Genreal Fund for profit on gold
Manufacturing and Assembling $85,264 $1,114 $1,806,174 $683,869 Manufacturing and Assembling (includes statutory value of precious metals)
Total Cost of Goods Sold $202,880 $1,471 $4,696,439 $943,512
RESULTS BEFORE SELLING, GENERAL & ADMINISTRATIVE $372,072 ($4,795) $8,742,358 $2,793,761
SELLING, GENERAL & ADMINISTRATIVE
Promotional ($150,828) ($154,952) $999,714 $1,047,129 Promotional includes advertising, printing & postage
Shipping $30,934 $197 $632,836 $439,630 Product delivery
General & Administrative & Marketing $70,560 $367 $1,433,000 $427,024 Fixed overhead allocated to program
Total Selling, General & Administrative ($49,334) ($154,388) $3,065,550 $1,913,783
PROFIT BEFORE SURCHARGES $421,406 $149,593 $5,676,808 $879,978
SURCHARGE ON REVENUE $132,808 $1,270 $3,263,970 $1,164,320 Proceeds collected for Benefiting Organizations
ESTIMATED PROGRAM PROFIT (LOSS) $288,598 $148,323 $2,412,838 ($284,342)

This report summarizes the unaudited financial activities of the U.S. Mint’s Commemorative Programs and is intended for the sole use of the Banking and Appropriation Subcommittees and should not be used for any other purposes.

The Interim Profit and Loss analysis was prepared using the modified accrual basis of accounting.

COMMEMORATIVE COIN PROGRAMS
FINANCIAL SUMMARY FROM INCEPTION THROUGH MARCH 31, 2002

CAPITOL VISITOR CENTER BUFFALO 2002 WINTER OLYMPICS UNITED STATES MILITARY ACADEMY Description
REVENUE $13,661,786 $16,664,888 $13,438,797 $3,737,273 Receipts
COST OF GOODS SOLD
Proceeds on Silver $511,610 $1,406,207 $423,455 $259,643 Market Value of Mint obtained silver less statutory value of silver
Proceeds on Gold $1,900,463 $0 $2,466,810 $0 Payments to Treasury’s General Fund for profit on gold
Manufacturing and Assembling $2,406,343 $4,667,321 $1,806,174 $683,869 Manufacturing and Assembling (includes statutory value of precious metals)
Total Cost of Goods Sold $4,818,416 $6,073,528 $4,696,439 $943,512
RESULTS BEFORE SELLING, GENERAL & ADMINISTRATIVE $8,843,370 $10,591,360 $8,742,358 $2,793,761
SELLING, GENERAL & ADMINISTRATIVE
Promotional $1,126,812 $557,955 $999,714 $1,047,129 Promotional includes advertising, printing & postage
Shipping $830,555 $751,005 $632,836 $439,630 Product Delivery
General & Administrative & Marketing $1,852,490 $1,484,038 $1,433,000 $427,024 Fixed overhead allocated to program
Total Selling, General & Administrative $3,809,857 $2,792,998 $3,065,550 $1,913,783
PROFIT BEFORE SURCHARGES $5,033,513 $7,798,362 $5,676,808 $879,978
SURCHARGE ON REVENUE $3,420,635 $5,000,000 $3,263,970 $1,164,320 Proceeds collected for Benefiting Organizations
ESTIMATED PROGRAM PROFIT (LOSS) $1,612,878 $2,798,362 $2,412,838 ($284,342) (Note 2)
POTENTIAL UNRECOVERED MINT INVESTMENT (Note 1)
Melting $1,321 $2,830 $2,051 $7,088 Cost to melt ending inventory and condemned coins
Manufacturing and Assembling $101,396 $35,030 $177,030 $546,919 Manufacturing and assembling (without statutory value of precious metals)
Packaging Material $54,369 $2,026 $4,939 $23,114 Packaging material that has not been used in mfg. & assmblg.
Die Manufacturing $17,542 $17,192 $11,578 $16,141 Cost of unused dies
Total Potential Unrecovered Mint Investment $174,628 $57,078 $195,598 $593,262
SURCHARGES FORWARDED TO BENEFITING ORGANIZATIONS $2,236,874 $4,998,730 $0 $0

This report summarizes the unaudited financial activities of the U.S. Mint’s Commemorative Programs and is intended for the sole use of the Banking and Appropriation Subcommittees and should not be used for any other purposes.

The Interim Profit and Loss analysis was prepared using the modified accrual basis of accounting.

Note 1 – The Mint’s unrecovered investment has been displayed in accordance with the requirements of Sec. 529 of P.L. 104-208, and represents the costs of associated with the Mint’s inventory of coins, packaging material, and dies on hand. If no additional sales were made, these amounts would be charged as expenses of the associated programs.

Note 2 – PL 104-208 requires the Mint to recover all affordable operation and program costs prior to the release of surcharge funds. The Mint will reduce the surcharge payment to recover these costs, as necessary.

COMMEMORATIVE COIN PROGRAMS
FINANCIAL SUMMARY FROM INCEPTION THROUGH DECEMBER 31, 2001

CAPITOL VISITOR CENTER BUFFALO 2002 WINTER OLYMPICS UNITED STATES MILITARY ACADEMY Description
REVENUE $13,086,834 $16,668,212 $0 $0 Receipts
COST OF GOODS SOLD
Proceeds on Silver $497,774 $1,405,850 $0 $0 Market Value of Mint obtained silver less statutory value of silver
Proceeds on Gold $1,796,683 $0 $0 $0 Payments to Treasury’s General Fund for profit on gold
Manufacturing and Assembling $2,321,079 $4,666,207 $0 $0 Manufacturing and Assembling (includes statutory value of precious metals)
Total Cost of Goods Sold $4,615,536 $6,072,057 $0 $0
RESULTS BEFORE SELLING, GENERAL & ADMINISTRATIVE $8,471,298 $10,596,155 $0 $0
SELLING, GENERAL & ADMINISTRATIVE
Promotional $1,277,640 $712,907 $0 $0 Promotional includes advertising, printing & postage
Shipping $799,621 $750,808 $0 $0 Product Delivery
General & Administrative & Marketing $1,781,930 $1,483,671 $0 $0 Fixed overhead allocated to program
Total Selling, General & Administrative $3,859,191 $2,947,386 $0 $0
PROFIT BEFORE SURCHARGES $4,612,107 $7,648,769 $0 $879,978
SURCHARGE ON REVENUE $3,287,827 $4,998,730 $0 $0 Proceeds collected for Benefiting Organizations
ESTIMATED PROGRAM PROFIT (LOSS) $1,324,280 $2,650,039 $0 $0 (Note 2)
POTENTIAL UNRECOVERED MINT INVESTMENT (Note 1)
Melting $2,311 $515 $0 $0 Cost to melt ending inventory and condemned coins
Manufacturing and Assembling $180,641 $42,601 $0 $0 Manufacturing and assembling (without statutory value of precious metals)
Packaging Material $54,437 $2,553 $0 $0 Packaging material that has not been used in mfg. & assmblg.
Die Manufacturing $17,542 $17,192 $0 $0 Cost of unused dies
Total Potential Unrecovered Mint Investment $254,931 $62,861 $0 $0
SURCHARGES FORWARDED TO BENEFITING ORGANIZATIONS $0 $0 $0 $0

This report summarizes the unaudited financial activities of the U.S. Mint’s Commemorative Programs and is intended for the sole use of the Banking and Appropriation Subcommittees and should not be used for any other purposes.

The Interim Profit and Loss analysis was prepared using the modified accrual basis of accounting.

Note 1 – The Mint’s unrecovered investment has been displayed in accordance with the requirements of Sec. 529 of P.L. 104-208, and represents the costs of associated with the Mint’s inventory of coins, packaging material, and dies on hand. If no additional sales were made, these amounts would be charged as expenses of the associated programs.

Note 2 – PL 104-208 requires the Mint to recover all affordable operation and program costs prior to the release of surcharge funds. The Mint will reduce the surcharge payment to recover these costs, as necessary.

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