Does the government have a tool to estimate how much money (bills, coins) is lost through destruction?

Question

Wether it's through fire, flood , natural disaster, vandalism,...

Does or is that money replaced or lost forever?

I know its's a crime to destroy currency but do you have to report lost money, let's say because of a housefire, to anybody?

Answer 1

Each year the Federal Reserve issues its Annual Report where it states the amount of currency destroyed in a given year and the methods of calculation of that amount. For example, its 2005 Annual Report states: "Currency processed (in millions of pieces): 36,463 36,242 34,832 34,208. Currency destroyed: 6,551 6,748 7,375 8,363. Coin received: 56,080 55,655 48,138 43,445."

Answer 2

No, you don't have to report destroyed currency to anyone. The government is constantly printing new money and retiring worn-out money from circulation, and the two don't have to balance out. They can control the total amount of currency in circulation as necessary to manage the economy.