During its most recent audit of the United States Mint’s processes and control over gold bullion acquisition for bullion and numismatic programs, the Treasury Department’s Office of Inspector General found “that the Mint cannot ensure most gold coins produced are minted from newly mined U.S. gold in compliance with the Gold Bullion Coin Act of 1985 and the Presidential $1 Coin Act of 2005.”

In its Semi-Annual Report to Congress — April 1, 2024-Sept. 30, 2024, OIG auditors noted the compliance issues were the result of “the Mint’s lack of documentation from its gold refiners certifying the amount of newly mined U.S. gold acquired. We also found it questionable whether the Mint’s methodology used to determine what constitutes newly mined U.S. gold is permissible under current U.S. law and that the Mint’s website represented certain gold coins as minted entirely from U.S. gold, which may mislead purchasers.”

While investigators determined in their probe that the bureau did not receive illicit gold and that the precious metal is responsibly sourced, “further engagement with its gold suppliers and refiners would enhance controls over the process.”

Mint officials overseeing bullion acquisition failed to request or secure any documentation from gold refiners concerning the origin of the gold or relating to supply chain issues, primarily relying on the gold refiners’ “adherence to the London Bullion Market Association’s Good Delivery List to ensure that gold acquired by the Mint is responsibly sourced.”

The Good Delivery List represents the list of gold and silver refiners whose products are acceptable to be traded on the London bullion market after undergoing stringent required qualifications.

Recommendations

OIG auditors explained that Mint management concurred with the department’s findings and supported implementation of procedures overseeing refiners by securing proper documentation that ensures compliance with U.S. law.

As part of the Mint’s review of its compliance regulations, “the Mint should publish its procedures for acquiring newly mined U.S. gold in the Federal Register” and “update its website for accuracy,” according to the OIG’s recommendations for compliance with Public Law 99-185 and Public Law 109-146.

The Treasury OIG’s Semi-Annual Report to Congress — April 1, 2024-Sept. 30, 2024, can be found in its entirety online at https://oig.treasury.gov/system/files/2024-12/September-2024-SAR-for-508-complaint-locked.pdf.

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