Reserve Bank of Australia Annual Report – 2006 Financial Statements Cash Flow Statement

CASH FLOW STATEMENT For the year ended 30 June 2006
Reserve Bank of Australia and Controlled Entities

This statement meets the requirements of AASB 107 – Cash Flow Statements and the Finance Minister's Orders 2005–2006. In the RBA's view, due to the nature of central banking activities, this statement does not shed 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.

2006
Inflow/
(outflow) $M 		2005
Inflow/
(outflow) $M
Cash flows from operating activities
Interest received on investments 2,933 2,159
Interest received on loans, advances, and on net overnight settlement systems 50 43
Loan management reimbursement 1 1
Banking service fees recieved 19 18
Dividends received 5 4
Rents received 6 6
Net payments for and proceeds from sale of investments (16,363) (12,002)
Interest paid on deposit liabilities (1,735) (877)
Interest paid on currency note holdings of banks (166) (148)
Staff costs (including redundancy) (128) (115)
Premises and equipment (28) (26)
Other (18) (28)
Net cash provided by operating activities (15,424) (10,965)
Cash flows from investment activities
Net expenditure on property, plant and equipment (31) (25)
Net cash used in investing activities (31) (25)
Cash flows from financing activities
Profit payment to Australian Government (1,383) (1,338)
Net movement in deposit liabilities 13,976 11,102
Net movement in loans and advances 2 2
Net movement in notes on issue 2,441 1,602
Other (14) 7
Net cash provided by financing activities 15,022 11,375
Net increase/(decrease) in cash (433) 385
Cash at beginning of financial year 1,008 623
Cash at end of financial year 575 1,008
Reconciliation of cash 2006 $M 2005 $M
Cash 15 16
Overnight settlements systems 560 992
  575 1,008
Reconciliation of net cash provided by operating activities
to Net Profits in terms of the Reserve Bank Act 1959 		2006 $M 2005 $M
Net Profit 2,093 84
Increase/(decrease) in interest payable (59) 42
Net loss/(gain) on overseas investments 826 (444)
Net loss/(gain) on Australian dollar securities 137 (31)
Net loss/(gain) on foreign currency (1,898) 1,385
Decrease/(increase) in income accrued on investments (148) 1
Depreciation of property 7 7
Depreciation of plant and equipment 15 10
Net payments for and proceeds from sale of investments (16,363) (12,002)
Other (34) (17)
Net cash provided by operating activities (15,424) (10,965)