For the quarter ending December 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 and 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 coin programs have collected approximately $426 million in surcharges over the past 20 years for many worthy recipient organizations.
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, some programs are flourishing while others stagnate. 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. This underscores the necessity of maintaining and complying with the 1996 Commemorative Coin Reform Act.
First quarter sales for the 2002 Winter Olympic Games and the U.S. Military Academy (USMA) Bicentennial commemorative coin programs total $1.0 million. Surcharge revenue was transferred to recipient organizations during the first quarter, with $460,239 forwarded to both the Salt Lake Organizing Committee for the Olympic Winter Games of 2002 and the United States Olympic Committee (USOC) from sales of the 2002 Winter Olympic Games commemorative coins. A payment of $1.8 million was made to the Association of Graduates, USMA, from sales of the Military Academy Bicentennial commemorative coins. Authorized for 2001, the Capitol Visitor Center Commemorative Coin program has closed. On December 6, 2002, the U.S. Capitol Preservation Commission was sent the final surcharge payment of $102,405 for sales of the Capitol Visitor Center commemorative coins.
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, 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 USOC 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 USOC. The United States Mint has received audited statements from the Salt Lake Organizing Committee and, as of this report, has received the audited statements from USOC. 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 continued to promote and sell the 2002 Winter Olympic Games Commemorative Coin Program on its commemorative coin website. Last-chance print advertisements were prepared and placed in Numismatic News and Coin World to announce the impending end of this program. The program officially ends on December 31, 2002.
Analysis of Financial Position
As of December 31, 2002, the United States Mint shipped over 250,000 coins, generating total program revenues of $14.9 million, including surcharges of $3.6 million. Estimated profits of $3.2 million covered the potential unrecovered expenses of $72,473.00. Cost of goods sold totaled $5.1 million and selling, general and administrative expenses are $2.9 million. First quarter program activity resulted in a profit of $252,314.00. Two recipient organizations share in the surcharges for the Winter Olympics program – the Salt Lake Organizing Committee and USOC. Both the Salt Lake Organizing Committee and USOC have satisfied the private-source fundraising requirement; they are now qualified to receive surcharge payments from the United States Mint. Surcharges collected for sales through the first quarter total $3.6 million. Total surcharges paid through December 31, 2002 were over $2.6 million.
U.S. 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, 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 the enabling legislation, this will be the last modern commemorative comprising silver from the Nation’s Strategic and Critical Materials Stockpile, as the inventory in that stockpile has reached a level that will preclude its use in future Mint commemorative coin programs. The Secretary of the Treasury approved final designs for the USMA Bicentennial Commemorative Coin program on May 30, 2001. The West Point Mint 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 are being struck at the West Point Mint because it is located on the USMA’s grounds.
Marketing Activities
The United States Mint continued to promote and sell the 2002 West Point Silver Dollars on its commemorative coin website. A United States Military Academy commemorative coin print advertisement was prepared and placed in the program of the annual Army-Navy game. Black and white print advertisements were prepared and placed in the Military Times newspaper.
Analysis of Financial Position
As of December 31, 2002, the United States Mint shipped over 383,000 coins, generating total program revenues of $12.5 million, including $3.8 million in surcharges. Estimated program profits of $1.7 million cover the potential unrecovered expenses of $601,226.00. Cost of goods sold total $3.1 million and selling, general and administrative expenses were $3.9 million. First quarter revenues posted a profit of $109,310.00 for the quarter. The Association of Graduates, USMA, submitted its private fundraising statement and auditor’s attestation on April 25, 2002. The documentation is satisfactory, and the organization is qualified to receive surcharge payments from the United States Mint. On December 6, 2002, a payment of $1.8 million was made to the Association of Graduates, USMA, from sales of the Military Academy Bicentennial commemorative coins.
FUTURE 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 engravers were provided with source materials and began the initial design process in December 2001. The current legislation states that the Mint may issue coins beginning August 2003.
Program surcharges are authorized to be paid 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 United States Mint’s engraving staff at the Philadelphia Mint finalized the candidate designs for the First Flight Commemorative Coin Program. The Citizens Commemorative Coin Advisory Committee and the Commission of Fine Arts reviewed the designs. Upon final consultation with the First Flight Centennial Foundation, recommended designs were submitted to the Secretary of the Treasury for approval.
The United States Mint sent a representative to the First Flight Centennial kick-off event at Kill Devil Hills, North Carolina. Four-color program flyers were produced and distributed to the event’s attendees and names captured of those wishing to receive the First Flight Centennial Commemorative Coin offering.
There is currently no second commemorative coin program authorized for issuance 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 are authorized to be shared as follows:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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
The United States Mint’s engraving staff in Philadelphia prepared first round candidate designs. The designs are being prepared for review by the Citizens Commemorative Coin Advisory Committee.
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 engravers were provided with source materials and began the initial design process in December 2001.
Program surcharges are authorized to be paid 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
Candidate coin designs were prepared by the United States Mint’s engraving staff and reviewed by the Citizens Commemorative Coin Advisory Committee and the Commission of Fine Arts. The candidate designs were subsequently presented to the Secretary of the Treasury where they were recently approved.
CONCLUSION
Authorized for 2001, the Capitol Visitor Center Commemorative Coin program has closed. On December 6, 2002, the U.S. Capitol Preservation Commission was sent the final surcharge payment of $102,405 for sales of the Capitol Visitor Center commemorative coins.
Both the Salt Lake Organizing Committee and USOC have met the matching funds requirements and are eligible to receive surcharge payments from the United States Mint. As of December 31, 2002, surcharge revenue of more than $2.6 million has been sent to each of the recipient organizations, the Salt Lake Organizing Committee and USOC from sales of the 2002 Winter Olympic Games commemorative coins.
The Association of Graduates, USMA, has met the matching funds requirements, and the organization is qualified to receive surcharge payments from the United States Mint. On December 6, 2002, a payment of $1.8 million was made to the Association of Graduates, USMA, from sales of the Military Academy Bicentennial commemorative coins.