Reserve Bank of Australia Annual Report – 2009 Financial Statements Cash Flow Statement

CASH FLOW STATEMENT For the year ended 30 June 2009
Reserve Bank of Australia and Controlled Entities

This statement meets the requirements of AASB 107 – Cash Flow Statements and the Finance Minister's Orders 2008–2009. 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 balances due from other banks.

2009
Inflow/
(outflow)
$M		 2008
Inflow/
(outflow)
$M
Cash flows from operating activities
Interest received on investments 4,040 4,972
Interest received on loans, advances, and on net overnight settlements balances 38 62
Loan management reimbursement 1 –
Banking service fees received 20 17
Dividends received 5 4
Rents received 9 8
Net payments for and proceeds from investments (1,824) 24,082
Interest paid on deposit liabilities (1,784) (2,329)
Interest paid on currency note holdings of banks (167) (199)
Staff costs (including redundancy) (142) (120)
Property, plant and equipment (37) (34)
Other (32) (5)
Net cash provided by operating activities 127 26,458
Cash flows from investment activities
Net expenditure on property, plant and equipment (34) (23)
Net cash used in investing activities (34) (23)
Cash flows from financing activities
Profit payment to Australian Government (1,403) (1,085)
Net movement in deposit liabilities (4,740) (26,824)
Net movement in loans and advances 2 8
Net movement in notes on issue 6,023 1,775
Other (65) (33)
Net cash provided by financing activities (183) (26,159)
Net increase/(decrease) in cash (90) 276
Cash at beginning of financial year 862 586
Cash at end of financial year 772 862
Reconciliation of cash Note 2009
$M		 2008
$M
Cash   29 9
Overnight settlements systems 6 743 853
  772 862
Reconciliation of net cash provided by operating activities to Net Profits in terms of the Reserve Bank Act 1959 Note 2009
$M		 2008
$M
Net Profit   8,806 1,430
Increase/(decrease) in interest payable   (39) 14
Net loss/(gain) on overseas investments 2 (1,469) (506)
Net loss/(gain) on Australian dollar securities 2 (142) 34
Net loss/(gain) on foreign currency 2 (5,029) 1,137
Decrease/(increase) in income accrued on investments   (190) 238
Depreciation of property 8 9 9
Depreciation of plant and equipment 8 14 13
Net payments for and proceeds from investments   (1,824) 24,082
Other   (9) 7
Net cash provided by operating activities   127 26,458