Reserve Bank of Australia Annual Report – 1999 Financial Statements Note 19 – Cash Flow Statement

The following cash flow statement appears as a matter of record to meet the requirements of AAS 28; in the Bank's view, it does not shed any additional light on the Bank's financial results. For the purpose of this statement, cash includes the notes and coin held at the Reserve Bank and overnight settlements system account balances with other banks.

Statement of Cash Flows for the financial year ended 30 June 1999

1999
Inflow/(outflow) $M		 1998
Inflow/(outflow) $M
Cash flow from operating activities
Interest received on investments 2,040 2,449
Interest received on loans, advances, and
on net overnight settlements systems		 24 29
Loan management reimbursement 2 2
Banking service fees received 28 22
Rents received 7 7
Net payments for and proceeds
from sale of investments		 (91) 4,435
Interest paid on deposit liabilities (190) (276)
Staff costs (including redundancy) (106) (130)
IMF Maintenance of Value adjustment (15) 20
Premises, equipment and stores (24) (26)
Other 20 30
Net cash provided by operating activities 1,695 6,562
Cash flows from investment activities
Net expenditure on property, plant and equipment 11 (1)
Net cash used in investing activities 11 (1)
Cash flows from financing activities
Profit payment to Commonwealth (2,726) (1,700)
Net movement in deposit liabilities (689) (8,209)
Net movement in loans and advances 38 11
Net movement in notes on issue 1,920 1,587
Proceeds from gold sales – 608
Other (31) (159)
Net cash provided by financing activities (1,488) (7,862)
Net increase/(decrease) in cash 218 (1,301)
Cash at beginning of financial year 369 1,670
Cash at end of financial year 587 369

Reconciliation of cash		 30 June1999
$M		 30 June1998
$M
Cash 109 85
Overnight settlements system 478 284
587 369
Reconciliation of net cash provided
by operating activities to Net Profits		 1999
$M		 1998
$M
Net profit 1,326 4,403
Increase in interest payable (10) (28)
Increase in interest receivable – 1
Net loss/(gain) on overseas investments 106 (105)
Net loss/(gain) on domestic government securities 276 (64)
Net loss/(gain) on foreign currency 108 (2,465)
Increase in income accrued on investments (6) 347
Depreciation of property 7 7
Depreciation of plant and equipment 7 6
IMF Maintenance of Value adjustment
(including accrual to end June)		 (15) 34
Net payments for and proceeds from sale
of domestic and foreign investments		 (91) 4,435
Write-off of Australian notes (19) –
Other 6 (9)
Net cash provided by operating activities 1,695 6,562