Commemorative Coin Reform Act Report to Congress, FY 2003 Third Quarter

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 40 commemorative coin programs between 1982 and 2003, 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 coin programs have collected approximately $427.5 million in surcharges over the past 21 years for many worthy recipient organizations.

The Commemorative Coin Reform Act of 1996 (CCRA) 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 “maximum amount the organization may receive from proceeds of such surcharges.” On April 11, 2003, the President signed into law the “American 5-Cent Coin Design Continuity Act of 2003.” The Act changes the criterion for a recipient organization to qualify for the disbursement of surcharges by allowing distribution of proceeds if it has raised from private sources an amount equal to or greater than the total surcharges from actual sales of program coins. The Act also makes commemorative 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 such coin programs. The Act also abolishes the Citizens Commemorative Coin Advisory Committee established under 31 U.S.C. § 5135, and establishes a Citizens Coinage Advisory Committee (CCAC) that has an expanded membership and expanded responsibilities to advise the Secretary.

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. To ensure that commemorative coin programs reap the benefits of the reforms of 1996, the United States Mint must continue to execute and oversee these coin programs in a conscientious, prudent and businesslike manner.

FINANCIAL REPORTING

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

2002 WINTER OLYMPIC GAMES

Program Highlights

The 2002 Winter Olympic Commemorative Coin Act, Public Law 106-435, authorizes the production of 400,000 silver one-dollar coins and 80,000 gold five-dollar coins. In the spirit of the CCRA’s reforms to curb proliferation of commemorative coin programs, the United States Olympic Committee (USOC) has been very responsive to concerns regarding past Olympic commemorative coin programs, and the 2002 program features a single-coin design for the obverse and reverse of the silver one-dollar and gold five-dollar coins.

Congress directed the United States Mint to divide the qualifying surcharges from the sale of the coins equally between the Salt Lake Organizing Committee (SLOC) for the Olympic Winter Games of 2002 and the USOC. The United States Mint has received audited statements from the SLOC and the USOC. Previous United States Mint commemorative coin programs honoring the Olympics have raised over $130 million for our Olympic athletes and programs.

Analysis of Financial Position

As of June 30, 2003, total surcharge payments of $3.6 million have been sent to the SLOC and the USOC from sale of the 2002 Winter Olympic Games Commemorative Coins. The 2002 Winter Olympic Games Commemorative Coin Program officially ended on December 31, 2002.

U.S. MILITARY ACADEMY BICENTENNIAL

Program Highlights

The United States Military Academy (USMA) Bicentennial Commemorative Coin Act, Public Law 103-328, authorizes the production of 500,000 silver one-dollar coins. Surcharges from the sale of the coins are authorized to go to the Association of Graduates, USMA, to assist efforts to provide direct support to the academic, military, physical, moral, and ethical development programs of the Corps of Cadets, USMA, West Point, New York. As authorized by law, this will be the last modern commemorative coin comprising silver from the Nation’s Strategic and Critical Materials Stockpile, as inventory in that stockpile has now been depleted. The U.S. Bullion Depository at West Point is the minting facility where production began in the last weeks of the first quarter of 2002, and issuance of the coin began on March 16, 2002. Consistent with the enabling legislation, the coins were struck at the West Point Mint because it is located on the USMA’s grounds. Surcharges from this program are authorized for the USMA to support the academic, military, physical, moral and ethical development programs of the Corps of Cadets.

Analysis of Financial Position

As of June 30, 2003, the United States Mint shipped 391,494 coins, generating total program revenues of $12.8 million, including over $3.9 million of surcharges. Estimated program profits of $1.8 million cover the potential unrecovered expenses of $548,657. Cost of goods sold totaled $3.2 million, and selling, general and administrative expenses were $3.9 million. Third quarter revenues were $26,709. The Association of Graduates, USMA, submitted its matching funds statement and auditor’s attestation on April 25, 2002. The documentation was found to be satisfactory, and the organization was qualified to receive surcharge payments from the United States Mint. On January 29, 2003, a payment of $1.1 million was made to the Association of Graduates, USMA, from sales of the USMA Bicentennial Commemorative Coins, bringing the total surcharges paid to nearly $2.9 million. The USMA Bicentennial Commemorative Coin Program formally ended on March 16, 2003.

FUTURE COMMEMORATIVE COIN PROGRAMS

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

Program Highlights

The First Flight Centennial Commemorative Coin Act of 1997, Public Law 105-124, authorizes the production of 100,000 gold ten-dollar, 500,000 silver one-dollar and 750,000 clad half-dollar coins.
This program will commemorate the 100th anniversary of the Wright brothers’ first flight on December 17, 1903, near Kitty Hawk, North Carolina. The Secretary of the Treasury is authorized to issue the coins from August 1, 2003, to July 31, 2004. Promotional materials are being prepared for the program’s launch on August 1, 2003.

Program surcharges are authorized to 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.

2004 Thomas Alva Edison Commemorative Coins Program (Silver)

Program Highlights

The Thomas Alva Edison Commemorative Coin Act, Public Law 105-331, authorizes the production of 500,000 silver one-dollar coins. The program will commemorate the 125th anniversary of the invention of the light bulb by Thomas Alva Edison.

Program surcharges is authorized to 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.

The United States Mint’s engraving staff in Philadelphia prepared first round candidate designs. The designs were reviewed by the Citizens Coinage Advisory Committee and the Commission of Fine Arts (CFA). The United States Mint is preparing the final design package for review by the Secretary of the Treasury. The on-sale date for this program has yet to be determined.

2004 Lewis and Clark Commemorative Coins Program (Silver)

Program Highlights

The 2004 Lewis and Clark Commemorative Coin Act, P.L. 106-126 authorizes the production of 500,000 silver dollar coins. The commemorative silver dollar will commemorate the bicentennial of the historic expedition conducted by the Corps of Discovery. The expedition left from St. Louis, Missouri, on May 14, 1804. United States Mint engravers were 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.

Candidate coin designs were prepared by the United States Mint’s engraving staff and reviewed by the CCAC and the CFA. The Secretary of the Treasury approved the candidate designs in January 2003. The coin is scheduled to launch May 2004 to coincide with the anniversary of the expedition.

CONCLUSION

Both the SLOC and the USOC have met the private fundraising requirement and are eligible to receive surcharge payments from the United States Mint. On April 23, 2003, the final surcharge payment of $476,878 was made to each of the eligible recipients. As of June 30, 2003, total surcharge payments of $1.8 million have been sent to the SLOC and the USOC from sale of the 2002 Winter Olympic Games Commemorative Coins.

The Association of Graduates, USMA, has met the private fundraising requirement and the organization is qualified to receive surcharge payments from the United States Mint. As of June 30, 2003, total surcharges paid to USMA totals $2.9 million. A final surcharge payment will be made in the fourth quarter of 2003.

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