October 1 – December 31, 2012
PROGRAM SUMMARY
The United States Mint’s requirement to issue quarterly financial reports is codified at 31 U.S.C. § 5134 (g)(2). Congress has authorized a total of 66 commemorative coin programs through 2017 to honor people, places, events, and institutions of significance in American history and culture. Surcharges from the sales of these coins are authorized to help fund a variety of organizations and projects that benefit the public at large. United States Mint commemorative coin programs have resulted in $497,851,399 in surcharges collected through the FY 2013 first quarter for many worthy recipient organizations.
Commemorative coins are beneficial to both the numismatic community and recipient organizations, but they also highlight our Nation’s history. To ensure that commemorative coin programs reap the benefits of the 1996 reforms, the United States Mint must continue to execute and oversee these programs in a conscientious, prudent, and business-like manner.
The United States Mint has engaged in several efforts to keep the sale price of commemorative coin products as low as practicable. For example, the use of standard commemorative coin boxes that do not change from one program to another, provide economies of scale by ordering the packaging in bulk quantities.
In addition, the United States Mint utilizes designated recipient organizations’ existing publications and other means of communication, as well as their mailing lists, which often serve to eliminate the need for higher cost blanket advertising and the purchase or renting of lists. Recipient organizations are also encouraged to use their contacts for free article or advertising placements for the programs.
FINANCIAL REPORTING
The matching funds criterion established by the Commemorative Coin Reform Act of 1996 (CCRA), as amended by Title II of Public Law 108-15 (April 23, 2003), requires commemorative coin programs to link public funding of special projects to private support by requiring recipient organizations to show receipts of donations from private sources “in an amount that is equal to or greater than the total amount of the proceeds of such surcharge derived from the sale of such numismatic item.” The CCRA makes commemorative coin program recipient organizations partners in bearing the risks of commemorative coin programs, and it ensures that the United States Mint recovers its costs of operating such coin programs.
This quarterly interim analysis was prepared using the accrual basis of accounting.
2011 September 11 National Medal Program*
Public Law 111-221, August 6, 2010
Sales of the 2011 September 11 National Medal began June 20, 2011. The program’s legislation authorizes the recipient organization, the National September 11 Memorial and Museum at the World Trade Center, to use surcharges from the sale of the medals to support its operations and maintenance following its completion. A total of $1,772,930 in surcharges was collected as of December 31, 2012. The program included a one-ounce silver proof quality medal with a maximum production of two million medals. Marketing funds were $612,825. As of December 31, 2012, 177,293 medals were sold. As noted in the attached spreadsheet, “Total Selling, General and Administrative” expenses through December 31, 2012, were $2,085,586. Travel expenses of $2,804 are included in that total. Total medals struck and rejected for this program were as follows:
| Facility | SKU | Total Minted | Total Rejected | Total Unsold | |
|---|---|---|---|---|---|
| WP | S11 | 9/11 Silver Medal West Point | 141,602 | 15,542 | 16,609 |
| PH | S12 | 9/11 Silver Medal Philadelphia | 95,072 | 13,083 | 14,150 |
The cost to melt rejected and unsold 2011 September 11 National Medals was $2,969.
*Under 31 U.S.C. § 5134(g), the United States Mint is not required to include updates on this national medal program in the CCRA quarterly report. However, the bureau is providing this information at its discretion to keep Senators and Members of Congress informed on program developments.
2012 Infantry Soldier Silver Dollar
Public Law 110-357, October 8, 2008
Sales of the 2012 Infantry Soldier Silver Dollar began February 16, 2012. The program’s legislation authorizes the recipient organization, the National Infantry Foundation, to use surcharges for the purpose of establishing an endowment to support the maintenance of the National Infantry Museum and Soldier Center following its completion. A total of $2,054,990 in surcharges was collected as of December 31, 2012. The program included $1 silver proof and uncirculated quality coins, with a maximum mintage of 350,000 across all product options. Marketing funds were $566,800. Based on prior experience, and because sales of special sets tend to attract customers outside the traditional coin collecting community, thus garnering additional sales and appeal for the overall program, the United States Mint reintroduced special sets with the 2012 commemorative coin programs. The special set for this program was the 2012 Infantry Soldier Silver Dollar Defenders of Freedom Set, which included a $1 silver proof coin in special packaging with a replica dog tag on a miniature chain. As of December 31, 2012, 205,499 coins (161,151 silver proof, 44,348 silver uncirculated) were sold. Nearly 50,000 of the proof coin sales were from the special set. As noted in the attached spreadsheet, “Total Selling, General and Administrative” expenses through December 31, 2012, were $1,926,842. Travel expenses of $4,451 are included in that total amount. Total coins minted and rejected for this program were as follows:
| Facility | SKU | Total Minted | Total Rejected | Total Unsold | |
|---|---|---|---|---|---|
| WP | NF1/NF3 | Infantry Silver Proof | 242,935 | 35,009 | 45,728 |
| WP | NF2 | Infantry Silver Uncirculated | 50,986 | 5,884 | 559 |
The cost to melt rejected and unsold 2012 Infantry Soldier Silver Dollars was $2,736.
2012 Star-Spangled Banner Commemorative Coin Program
Public Law 111-232, August 16, 2010
Sales of the 2012 Star-Spangled Banner Commemorative Coins began on March 5, 2012. The program’s legislation authorizes the recipient organization, the Maryland War of 1812 Bicentennial Commission, to use surcharges from the sale of the coins for the purpose of supporting bicentennial activities, educational outreach activities, and preservation and improvement pertaining to the sites and structures relating to the War of 1812. A total of $2,992,275 in surcharges was collected as of December 31, 2012. The program included $5 gold proof and uncirculated quality coins with a maximum mintage of 100,000 and $1 silver proof and uncirculated coins with a maximum mintage of 500,000. Marketing funds were $547,288. The special sets for this program were the 2012 Star-Spangled Banner Two-Coin Proof Set (one $5 gold proof coin and one $1 silver coin) and the 2012 Star-Spangled Banner Bicentennial Silver Dollar Set, which includes a $1 silver proof coin in special packaging. As of December 31, 2012, 235,965 coins (25,305 gold, 210,660 silver) were sold. As noted in the attached spreadsheet, “Total Selling, General and Administrative” expenses through December 31, 2012, were $1,917,281. There were no travel expenses for this program. The total coins minted and rejected for this program were:
| Facility | SKU | Total Minted | Total Rejected | Total Unsold | |
|---|---|---|---|---|---|
| WP | SS1/SS5 | Star-Spangled Banner Gold Proof | 26,338 | 1,324 | 4,154 |
| WP | SS2 | Star-Spangled Banner Gold Uncirculated | 11,197 | 933 | 312 |
| PH | SS3/SS5/SS6 | Star-Spangled Banner Silver Proof | 221,746 | 39,347 | 14,612 |
| PH | SS4 | Star-Spangled Banner Silver Uncirculated | 46,573 | 4,406 | 1,578 |
The cost to melt rejected and unsold 2012 Star-Spangled Banner Commemorative Coins was $3,333.
2013 Girl Scouts of the USA Centennial Commemorative Coin Program
Public Law 111-86, October 29, 2009
The program’s legislation authorizes the recipient organization, the Girl Scouts of the United States of America, to use surcharges from the sale of the coins to fund program development and implementation. The program will include $1 silver proof and uncirculated quality coins, with a maximum mintage of 350,000 across all product options. The Department of the Treasury approved the designs on July 20, 2012, and they were unveiled on September 22, 2012. New standardized packaging for each type of metal used for commemorative coin programs will be implemented with this program. Specifically, the packaging for both proof and uncirculated quality coins for each metal type (in this case, silver only) will be the same. For 2012 and prior year commemorative coin programs, there is a difference between the proof and uncirculated packaging. Coin sales are expected to begin on February 28, 2013.
2013 5-Star Generals Commemorative Coin Program
Public Law 111-262, October 8, 2010
The program’s legislation authorizes the recipient organization, the Command and General Staff College Foundation, to use surcharges from the sale of the coins to help finance its support of the Command and General Staff College. The program will include $5 gold, $1 silver, and half-dollar clad coins in proof and uncirculated qualities. The $5 gold coins have a maximum mintage of 100,000 across all product options; the $1 silver coins have a maximum mintage of 500,000 across all product options; and the half-dollar clad coins have a maximum mintage of 750,000 across all product options. The Department of the Treasury approved the designs on September 7, 2012. This program is expected to begin sales on March 21, 2013.
2014 Civil Rights Act of 1964 Commemorative Coin Program
Public Law 110-451, December 2, 2008
The program’s legislation authorizes the recipient organization, the United Negro College Fund, to use surcharges from the sale of the coins to carry out the purposes of the Fund, including providing scholarships and internships for minority students, and operating funds and technology enhancement services for its 39 historically black college and university members. The program will include $1 silver proof and uncirculated quality coins with a maximum mintage of 350,000 across all product options. The United States Mint has had initial meetings with the recipient organization.
2014 National Baseball Hall of Fame Commemorative Coin Act
Public Law 112-152, August 3, 2012
The program’s legislation authorizes the recipient organization, the National Baseball Hall of Fame, to use surcharges from the sale of the coins to help finance its operations. The program will include $5 gold, $1 silver, and half-dollar clad coins in proof and uncirculated qualities. The $5 gold coins have a maximum mintage of 50,000 across all product options; the $1 silver coins have a maximum mintage of 400,000 across all product options; and the half-dollar clad coins have a maximum mintage limit of 750,000 across all product options. Because the Act requires the Secretary to conduct a competition for the coins’ common obverse design, we are currently preparing the parameters of the competition. Additionally, we are conducting research and development to determine if it is possible and economical to mint the $1 and $5 coins’ reverses in a convex shape to more closely resemble a baseball.
2015 United States Marshals Service 225th Anniversary Commemorative Coin Act
Public Law 112-104, April 2, 2012
The program’s legislation authorizes the recipient organizations – the U.S. Marshals Museum, the National Center for Missing & Exploited Children, the Federal Law Enforcement Officers Association Foundation and the National Law Enforcement Officers Memorial Fund – to use surcharges from the sale of the coins to preserve, maintain, and display artifacts and documents for the U.S. Marshals Museum; (2) find missing children and combat child sexual exploitation; (3) provide financial assistance for surviving family members of Federal law enforcement members killed in the line of duty; (4) provide scholarships to students pursuing a career in the law enforcement field; (5) provide selective grants to charitable organizations; and (6) support construction of the National Law Enforcement Museum and the preservation and display of its artifacts. The program will include $5 gold, $1 silver, and half-dollar clad proof and uncirculated quality coins with a maximum mintage of 1,350,000 across all product options.
2015 March of Dimes Commemorative Coin Act
Public Law 112-209, December 18, 2012
The program’s legislation authorizes the recipient organization, the March of Dimes, to use surcharges from the sale of the coins to help finance research, education, and services to improve the health of women, infants, and children. This Act directs the Secretary of the Treasury to mint and issue coins in recognition and celebration of the 75th anniversary of the establishment of the March of Dimes Foundation. The program will include proof and uncirculated quality $1 silver coins with a maximum mintage of 500,000 across all options.
2016 Mark Twain Commemorative Coin Act
Public Law 112-201, December 4, 2012
The program’s legislation authorizes the recipient organizations – the Mark Twain House and Museum in Hartford, Connecticut; the University of California, Berkeley; Elmira College in New York; and the Mark Twain Boyhood Home and Museum in Hannibal, Missouri – to use surcharges to support the continued restoration of the Mark Twain house and grounds, and ensure continuing growth and innovation in museum programming to research, promote, and educate on the legacy of Mark Twain; for the benefit of the Mark Twain Project at the Bancroft Library to support programs to study and promote the legacy of Mark Twain; for research and education purposes; and to preserve historical sites related to Mark Twain and help support programs to study and promote his legacy. The program will include up to 100,000 $5 gold coins and up to 350,000 $1 silver coins in proof and uncirculated qualities.
2017 Lions Clubs International Century of Service Commemorative Coin Act
Public Law 112-181, October 5, 2012
The recipient organization, the Lions Clubs International Foundation, will use surcharges from the sale of the coins to further its programs for the blind and visually impaired in the United States and abroad; invest in adaptive technologies for the disabled; and invest in youth and those affected by a major disaster. The program will include $1 silver proof and uncirculated quality coins with a maximum mintage of 400,000 across all options. Designs are required to be emblematic of the centennial anniversary.
ATTACHMENT
Financial information as of December 31, 2012, provided by Financial Department, Accounting Division