New mac-mini has bluetooth problem

I was setting up a brand new out-of-the-box mac mini for our church. Migrated the information in from its predecessor ok. All seemed well until I tried to pair the bluetooth keyboard and mouse. The bluetooth panel came up but did not discover any devices. Tried cycling power on the keyboard and mouse - no change. Cycled bluetooth on/off - no change. Rebooted the system - still no change. The keyboard and mouse work ok with the old mac mini we are replacing but the new mac mini won't discover or pair with them.

Luckily I had a USB keyboard and mouse along so I can still run the system but I need to get the Bluetooth running