Reserve Bank of Australia Annual Report – 2007 Financial Statements Cash Flow Statement

For the year ended 30 June 2007
Reserve Bank of Australia and Controlled Entities

This statement meets the requirements of AASB 107 – Cash Flow Statements and the Finance Minister's Orders 2006–2007. 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.

2007
Inflow/
(outflow) $M		 2006
Inflow/
(outflow) $M
Cash flows from operating activities
Interest received on investments 4,274 2,933
Interest received on loans, advances, and on net overnight settlement systems 58 50
Loan management reimbursement 1 1
Banking service fees received 17 19
Dividends received 4 5
Rents received 7 6
Net payments for and proceeds from sale of investments (24,177) (16,363)
Interest paid on deposit liabilities (3,226) (1,735)
Interest paid on currency note holdings of banks (179) (166)
Staff costs (including redundancy) (135) (128)
Premises and equipment (31) (28)
Other 20 (18)
Net cash provided by operating activities (23,367) (15,424)
Cash flows from investment activities
Net expenditure on property, plant and equipment (59) (31)
Net cash used in investing activities (59) (31)
Cash flows from financing activities
Profit payment to Australian Government (1,477) (1,383)
Net movement in deposit liabilities 22,626 13,976
Net movement in loans and advances 2 2
Net movement in notes on issue 2,223 2,441
Other 63 (14)
Net cash provided by financing activities 23,437 15,022
Net increase/(decrease) in cash 11 (433)
Cash at beginning of financial year 575 1,008
Cash at end of financial year 586 575
Reconciliation of cash Note 2007 $M 2006 $M
Cash   15 15
Overnight settlements systems 6 571 560
  586 575
Reconciliation of net cash provided by operating activities
to Net Profits in terms of the Reserve Bank Act 1959 		Note 2007 $M 2006 $M
Net Profit/(Loss)   (1,393) 2,093
Increase/(decrease) in interest payable   (75) (59)
Net loss/(gain) on overseas investments 2 80 826
Net loss/(gain) on Australian dollar securities 2 117 137
Net loss/(gain) on foreign currency 2 2,577 (1,898)
Decrease/(increase) in income accrued on investments   (529) (148)
Depreciation of property 8 6 7
Depreciation of plant and equipment 8 10 15
Net payments for and proceeds from sale of investments   (24,177) (16,363)
Other   17 (34)
Net cash provided by operating activities   (23,367) (15,424)