Reserve Bank of Australia Annual Report – 2008 Financial Statements Cash Flow Statement

For the year ended 30 June 2008
Reserve Bank of Australia and Controlled Entities

This statement meets the requirements of AASB 107 – Cash Flow Statements and the Finance Minister's Orders 2007–2008. 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.

2008 Inflow/(outflow) $M 2007 Inflow/(outflow) $M
Cash flows from operating activities
Interest received on investments 4,972 4,274
Interest received on loans, advances, and on net overnight settlements systems 62 58
Loan management reimbursement – 1
Banking service fees received 17 17
Dividends received 4 4
Rents received 8 7
Net payments for and proceeds from sale of investments 24,082 (24,177)
Interest paid on deposit liabilities (2,329) (3,226)
Interest paid on currency note holdings of banks (199) (179)
Staff costs (including redundancy) (120) (135)
Premises and equipment (34) (31)
Other (5) 20
 Net cash provided by operating activities 26,458 (23,367)
Cash flows from investment activities
Net expenditure on property, plant and equipment (23) (59)
Net cash used in investing activities (23) (59)
Cash flows from financing activities
Profit payment to Australian Government (1,085) (1,477)
Net movement in deposit liabilities (26,824) 22,626
Net movement in loans and advances 8 2
Net movement in notes on issue 1,775 2,223
Other (33) 63
 Net cash provided by financing activities (26,159) 23,437
Net increase/(decrease) in cash 276 11
Cash at beginning of financial year 586 575
Cash at end of financial year 862 586
Reconciliation of cash Note 2008 $M 2007 $M
Cash   9 15
Overnight settlements systems 6 853 571
  862 586
Reconciliation of net cash provided by operating activities to Net Profits in terms of the Reserve Bank Act 1959 Note 2008 $M 2007 $M
Net Profit   1,430 (1,393)
Increase/(decrease) in interest payable   14 (75)
Net loss/(gain) on overseas investments 2 (506) 80
Net loss/(gain) on Australian dollar securities 2 34 117
Net loss/(gain) on foreign currency 2 1,137 2,577
Decrease/(increase) in income accrued on investments   238 (529)
Depreciation of property 8 9 6
Depreciation of plant and equipment 8 13 10
Net payments for and proceeds from sale of investments   (24,082) (24,177)
Other   7 17
Net cash provided by operating activities   26,458 (23,367)