The management of the Perth Mint is overseen by its Board of Directors, which is composed of:<br
1. the Under Treasurer of the State, or their delegate;
2. the Mint’s Chief Executive Officer and Deputy Chief Executive Officer; and non-executive Directors drawn from the Perth business community.
3. The Government appoints the non-executive Directors, ultimately giving it direct control over the Perth Mint in accordance with its 100% ownership.
The sole Government ownership also results in a consistent approach to risk, avoiding continual Board conflicts that can exist in public companies with shareholders with diverse objectives.
Due to the commercial activities of the Mint, the Government has traditionally appointed Directors with relevant business experience to provide independent and knowledgeable review of the activities of management. This is further enhanced by a Board with a majority of non-executive Directors and a non-executive Chairman.
The presence of a Government representative on the Board ensures the Government is fully and frequently informed of the activities of Perth Mint management. A consequence of this is that all Board papers, including monthly financial reports, are reviewed by officers of the West Australian Treasury, providing additional scrutiny.
Gold Corporation is audited annually by the State Auditor General to ensure compliance with the Financial Management Act 2006 and the Gold Corporation Act 1987. It should be noted that the Auditor General is appointed by the Governor and reports directly to Parliament, thus operating independently of the Government. As the Auditor General notes, “this independence is the cornerstone of public sector audit in the Westminster system of government”.
In addition, the Auditor General appoints a major accounting firm to undertake the external audit on their behalf. This contrasts with normal corporations, who appoint their own external auditor. With the external auditor appointment out of the hands of management, and with the external auditor’s work subject to further review by the Auditor General, the Perth Mint operates under a far more onerous audit regime than that applying to public or private companies.