Reserve Bank of Australia Annual Report – 2005 Financial Statements Note 19

Note 19 CASH FLOW STATEMENT

The following cash flow statement appears as a matter of record to meet the requirements of AASB1026 – Statement of Cash Flows ; in the RBA's view, it does not shed any additional light on the RBA'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 year ended 30 June
2005
Inflow/
(outflow) $M 		2004
Inflow/
(outflow) $M
Cash flows from operating activities
Interest received on investments 2,159   1,767
Interest received on loans, advances, and on net overnight settlements systems 43   38
Loan management reimbursement 1   1
Banking service fees received 18   17
Rents received 6   5
Net payments for and proceeds from sale of investments (12,007)   (5,135)
Interest paid on deposit liabilities (874)   (581)
Interest paid on currency note holdings of banks (148)   (136)
Staff costs (including redundancy) (113)   (105)
Premises and equipment (26)   (24)
Other (24)   25
Net cash provided by operating activities (10,965)   (4,128)
Cash flows from investment activities
Net expenditure on property, plant and equipment (25)   (16)
Net cash used in investing activities (25)   (16)
Cash flows from financing activities
Profit payment to Australian Government (1,338)   (1,300)
Net movement in deposit liabilities 11,102   3,390
Net movement in loans and advances 2   2
Net movement in notes on issue 1,602   1,850
Other 7   (14)
Net cash provided by financing activities 11,375   3,928
Net increase/(decrease) in cash 385   (216)
Cash at beginning of financial year 623   839
Cash at end of financial year 1,008   623
Reconciliation of cash
Cash 16   6
Overnight settlements systems 992   617
  1,008   623
Reconciliation of net cash provided by operating
activities to Net Profits in terms of the Reserve Bank Act 1959
2005 $M 2004 $M
Net Profit 74   1,955
Increase/(decrease) in interest payable 46   88
Net loss/(gain) on overseas investments (443)   587
Net loss/(gain) on Australian dollar securities (31)   169
Net loss/(gain) on foreign currency 1,397   (1,829)
Decrease/(increase) in income accrued on investments 1   54
Depreciation of property 7   7
Depreciation of plant and equipment 11   9
Net payments for and proceeds from sale of investments (12,007)   (5,135)
Other (20)   (33)
Net cash provided by operating activities (10,965)   (4,128)