Examination of the Bureau of Engraving and Printing Fund's Financial Statements for the 15 Months Ended September 30, 1976, and for Fiscal Year 1977

Operations of the Bureau of Engraving and Printing are financed through the Bureau of Engraving and Printing Fund, and costs are recovered from agencies using the Bureau's services.

One contractor has produced the paper for U.S. currency for some time; another firm who had manufactured the paper in prior years cannot produce the supply without significant alterations in its business. In spite of the lack of competition, the Bureau's cost reviews have found the contractor's negotiated price reasonable. The latest contract is for an estimated 27.7 million pounds of paper at $32 million. During fiscal year (FY) 1977, 1.9 billion food coupons were printed. The Bureau contracts out the printing of coupons and bills the Department of Agriculture for the cost. The Bureau does not have the authority to borrow from the Treasury to finance machinery and equipment but may include a surcharge in the selling price of its products to set up a reserve to replace capital equipment. It also uses lease-purchase agreements to acquire equipment which will cost about $3.4 million in interest over the life of the agreements. The financial statements presented fairly the financial position of the Bureau and the results of its operations and changes in financial position for the periods examined, in conformity with prescribed principles and standards.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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