The Royal Australian Mint (the Mint), established in 1965, is Australia’s national mint and operates under the Currency Act 1965 to produce coinage for the currency requirements of the nation. The Mint is a listed entity within the Treasury portfolio and a non-corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013.
The audit was selected to consider ways in which entities can develop strategies to deal with financial challenges associated with changing technologies and business conditions. The audit also aimed to emphasise the need for entities to manage risks associated with using public funds for non-core business, and to conform with relevant legislative requirements.
The objective of the audit was to assess whether the Royal Australian Mint’s strategies for addressing the impacts of declining demand for Australian circulating coins are appropriate and effective.
To form a conclusion against the audit objective, the Australian National Audit Office (ANAO) adopted the following high-level criteria:
- Did the Royal Australian Mint have effective arrangements for developing strategies to address the impacts of declining demand for Australian circulating coins?
- Has the Royal Australian Mint’s implementation of the strategies supported it to effectively address the impacts of declining demand for Australian circulating coins?
- Has the Royal Australian Mint implemented the strategies in line with relevant legislative requirements?
The audit found that the Mint has developed and implemented strategies for addressing the impacts of declining demand for Australian circulating coins that are mainly appropriate and effective. While having increased returns from its commercial business, the Mint has not yet achieved its strategic goal of ‘filling the gap’ caused by the reduction in seigniorage through offsetting growth in earnings from its commercial business. Further, the current financial arrangements do not facilitate the return of the Mint’s commercial profits to the Australian Government to support the achievement of the Mint’s strategic goal.