TREASURY DIRECTIVE: 51-02

Date: January 6, 1989

Sunset Review: TBD

Expiration Date: TBD

SUBJECT: Processing Losses Resulting from Gold and Silver Programs

1. PURPOSE. This directive prescribes the acceptable limits on the processing losses allowed in the gold and silver program operations of the United States Mint and the accounting treatment of such losses.

2. SCOPE. The provisions of this directive are applicable to the United States Mint and the Financial Management Service.

3. DETERMINATION OF PROCESSING LOSSES. Based on technological studies and surveys conducted by the Mint, Attachment 1 states the acceptable limit on processing losses incurred by the Mint for each program utilizing gold and silver metal.

4. ACCOUNTING TREATMENT. In every case where losses less than the approved allowance are incurred, the loss will be charged to the related program. The Bullion Fund will be credited for the entire value of gold and silver used in the program including lost metal. Losses associated with incidental appropriated programs will be charged to the annual appropriation (e.g., assay losses from audits). Losses occurring from weight differentials that arise as the result of an audit or other administrative review will be chargeable to the annual appropriation. Losses related to numismatic programs will be charged as a cost of the program.

5. REEVALUATION. Periodically the United States Mint will reevaluate the loss allowance limits shown in Attachment 1 and report to the Treasurer of the United States the results of its findings and any recommended changes in the limits.

6. EXTRAORDINARY LOSSES. Losses that exceed the acceptable limits determined by the procedures in paragraph 4. and shown in Attachment 1 will be reported to the Office of the Inspector General for investigation. The treatment of any such losses will be resolved by the Treasurer of the United States on a case-by-case basis.

7. CANCELLATION. Treasury Directive 51-02, "Processing Losses Resulting from Gold and Silver Programs," dated February 15, 1988.

8. AUTHORITY. Section 207 of the Coinage Act of 1965 (31 U.S.C. 5133(b)(2), authorizes the Secretary of the Treasury to establish limitations on the necessary loss allowance for operations of the United States Mint.

9. OFFICE OF PRIMARY INTEREST. Office of the Treasurer of the United States.

Katherine D. Ortega

Treasurer of the United States

Attachment

Attachment 1

The following schedule is the approved loss allowance for each of the indicated Mint programs.