OTTAWA, June 29 /CNW Telbec/ - The Royal Canadian Mint today released the
findings of a third party review related to the unreconciled difference
between the Corporation's rolling inventory and the physical count of precious
metals for the 2008 fiscal year.
The scope of the review, conducted by Deloitte and Touche, was to
specifically determine if the unreconciled difference in gold was the result
of an accounting or transaction recording error. The report concluded that
"the unaccounted for difference in gold does not appear to relate to an
accounting error in the reconciliation process, an accounting error in the
physical stock count schedules, or an accounting error in the recordkeeping of
transactions during the year."
The Deloitte and Touche report identified three other areas for
1. A technical review of operations - As the Mint applies scientific
processes and formulae to various aspects of refining, such as process
losses, the Mint may wish to review and update its benchmarks and/or
third party studies regarding such technical processes and formulae.
2. An accounting review of prior periods - Precious metal reconciliations
have been performed by the Mint twice annually in prior years.
Although, in theory, revisiting prior period reconciliations could
explain the difference, it would be difficult to complete such a
review due to the passage of time, the availability of supporting
documentation and the turnover of Mint staff.
3. Security reviews - A more in-depth review of systems security and an
assessment of potential inappropriate activity by both internal and/or
"As a Crown Corporation, we understand that Canadians hold us to a high
standard of accountability and the Mint's Board of Directors will continue to
work closely with management in ensuring that this matter is pursued
vigorously," said James B. Love, Chairman of the Board of the Royal Canadian
"In response to the report's recommendations, the Mint has engaged third
parties to assist the Corporation in its review of specific aspects of its
operations, including refinery processes and internal controls," said Ian E.
Bennett, President and CEO of the Royal Canadian Mint. "We have also requested
the RCMP's assistance to investigate the matter and the Mint has committed to
fully co-operate with them."
The amount of the unreconciled precious metals at this stage is
approximately $15.3 million. Mr. Bennett emphasised that "the Mint will
aggressively continue its efforts both internally and with outside experts to
determine the sources of the unreconciled difference." In the interim and on
the basis of the Deloitte and Touche report, the Corporation has notified its
insurance carriers that it intends to file a claim under its "All Risks"
insurance policy which, if successful, will largely offset the amount of any
The full Deloitte and Touche report and executive summary are available
online at www.mint.ca. Accompanying these documents is a backgrounder on the
Royal Canadian Mint's refinery operations and key questions.
About the Royal Canadian Mint
The Royal Canadian Mint is an ISO 9001-2000 certified company, recognized
as one of the largest and most versatile mints in the world. With facilities
in both Ottawa and Winnipeg, the Mint is a commercial Crown Corporation which
produces and manages the distribution of circulation coins and provides advice
to the Government of Canada on matters related to coinage. The Mint also
designs, produces and markets numismatic coins and gift products and also
manufactures coins and blanks for countries around the world. The Mint
operates full-service gold and silver refineries, offers storage services to
Canadian and international customers and produces precious metal products for
the investment community. For a complete overview of the Mint's products and
services, visit www.mint.ca.
For further information:
For further information: Christine Aquino, Director, Communications,
Royal Canadian Mint, (613) 993-9999, firstname.lastname@example.org