	Background

The Mint and BEP, which are part of the Treasury Department, produce the  nation’s coins and currency. How Security Is Provided at the Mint, BEP, and Selected Other Organizations

The Mint and BEP use their own police forces to protect their facilities and  the money they produce. Eight of the 12 coin and currency organizations in  the other G7 nations responded to our requests for information. Four  organizations reported that they only used their own security forces; 2  organizations said they used their own security forces supplemented with  contractor personnel; 1 organization said it used an outside agency to  supplement its own security force; and 1 organization said that it used an  outside agency to provide its security. The six casino and banking  businesses that we contacted, which handle large amounts of cash, used  either their own security staff or contract staff. We reviewed these incidents with Mint and  BEP security officials in terms of what happened, why, and how they  occurred, and what steps have been taken to prevent thefts from recurring. Further, both the Mint and BEP have  had threat assessments conducted regarding their facilities and have  generally implemented the recommendations that were made to improve  security. Thefts at the Mint

Although we requested that the Mint provide information on thefts that  occurred during the past 10 years, the Mint indicated that it did not have  records of thefts that occurred more than 5 years ago and provided records  regarding incidents that occurred from 1998 through 2002. Thefts at BEP

BEP reported 11 incidents of theft from 1993 through 2002 involving about  $1.8 million. Potential Benefits and Costs of Having the Secret Service Provide Mint and BEP Security

According to the Secret Service, if it were given the responsibility of  protecting the Mint and BEP, those agencies could benefit from the Secret  Service’s expertise in protection and criminal investigations. However,  unlike the Secret Service’s Uniformed Division, the Mint and BEP police  are already familiar with the coin and currency production processes,  which is an advantage in identifying security risks. Potential Costs Associated with Having the Secret Service Protect the Mint and BEP

If the Secret Service protected the Mint and BEP, the government could  incur additional costs because the Secret Service requires more initial  training for its officers than the Mint and BEP police, Uniformed Division  officers can retire with less government service than the Mint and BEP  police, and the Secret Service would have to increase management and  overhead to handle the additional workforce. The Mint Director said that the Mint concurred with the findings and  conclusions that apply to the Mint. BEP and Secret Service liaisons with  GAO provided by E-mail technical comments regarding the draft report,  which we incorporated where appropriate, but did not provide overall  comments on the report. We also asked the 12 coin and currency producing organizations in the six  other G7 nations (Canada, France, Germany, Italy, Japan, and the United  Kingdom); the Federal Reserve; and businesses that handle a large amount  of cash, such as banks and casinos, about who provides their security, why,  and whether they had experienced thefts of items in value of more than  $1,000 in each incident during the last 10 years.
Why GAO Did This Study

The U.S. Mint and the Bureau of Engraving and Printing (BEP), which produce the nation's coins and currency, provide their own security and have experienced some problems with theft by employees. Although security is necessary to carry out the agencies' missions, their primary function is producing money. In light of these thefts, a congressional committee asked GAO whether the Mint and BEP should continue to provide their own security or whether the United States Secret Service should provide their security. Among the issues that GAO was asked to address were (1) how do the Mint, BEP, and other organizations that produce or handle large amounts of cash provide their security; (2) what thefts have occurred at the Mint and BEP and what steps have they taken to prevent thefts from recurring; and (3) what are the potential benefits and costs of having the Secret Service provide Mint and BEP security? The Mint said it generally agreed with the findings and conclusions that applied to the Mint. BEP and the Secret Service provided technical comments regarding the report, which GAO incorporated where appropriate, but had no overall comments on the report.

What GAO Found

The Mint and BEP use their own police forces to provide security. Eight of the 12 coin and currency organizations in the other G7 nations responded to our requests for information. Four organizations reported that they only used their own security forces; 2 organizations said they used their own security forces supplemented with contractor personnel; 1 organization said it used an outside agency to supplement its own security force; and 1 organization said that it used an outside agency to provide its security. Private businesses that handle large amounts of cash, such as banks and casinos, that we contacted said they used either their own security staff or contractor staff. The Mint and BEP have experienced some thefts by employees over the last decade. The Mint, which did not have records of security incidents that occurred more than 5 years ago, reported 74 incidents of theft involving about $93,000 from 1998 though 2002, while BEP reported 11 incidents of theft from 1993 through 2002 involving about $1.8 million. Both the Mint and BEP had threat assessments made of their facilities and processes and took corrective action to enhance security. The Secret Service said that if its Uniformed Division were charged with the responsibility of protecting the Mint and BEP, the two agencies could benefit from the Secret Service's expertise in protection and criminal investigations. However, unlike Secret Service police officers, Mint and BEP security personnel are already familiar with the coin and currency production processes, which is a benefit in identifying security risks in these manufacturing facilities. Further, if the Secret Service protected the Mint and BEP, the government could incur additional costs because the Secret Service requires more training for its officers than the Mint and BEP police. The Secret Service police officers also are provided more costly retirement benefits than the Mint and BEP police.