Reserve Bank of Australia Annual Report – 2010 Financial Statements Cash Flow Statement

Cash Flow Statement – For the year ended 30 June 2010
Reserve Bank of Australia and Controlled Entities

This statement meets the requirements of AASB 107 – Cash Flow Statements and the Finance Minister's Orders 2009-2010. 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 coins held at the Reserve Bank and overnight settlements balances due from other banks.

2010
Inflow/
(outflow) $M 		2009
Inflow/
(outflow) $M
Cash flows from operating activities
Interest received on investments 2,498 4,040
Interest received on loans, advances, and on net
overnight settlements balances		 27 38
Loan management reimbursement 1 1
Banking service fees received 20 20
Dividends received 11 5
Rents received 9 9
Net payments for and proceeds from investments 16,559 (1,824)
Interest paid on deposit liabilities (808) (1,784)
Interest paid on currency note holdings of banks (104) (167)
Staff costs (including redundancy) (167) (142)
Property, plant and equipment (37) (37)
Other (25) (32)
Net cash provided by operating activities 17,984 127
Cash flows from investment activities
Net expenditure on property, plant and equipment (56) (34)
Net cash used in investment activities (56) (34)
Cash flows from financing activities
Profit payment to Australian Government (5,227) (1,403)
Net movement in deposit liabilities (13,279) (4,740)
Net movement in loans and advances 1 2
Net movement in notes on issue 672 6,023
Other (15) (65)
Net cash used in financing activities (17,848) (183)
Net increase/(decrease) in cash 80 (90)
Cash at beginning of financial year 772 862
Cash at end of financial year 852 772
These Financial Statements should be read in conjunction with the accompanying notes.
Reconciliation of Cash Note 2010
$M		 2009
$M
Cash   8 29
Overnight settlements systems 6 844 743
  852 772
Reconciliation of net cash provided by operating activities
to Net Profits in terms of the Reserve Bank Act 1959		 Note 2010
$M		 2009
$M
Net Profit   (2,928) 8,806
Increase/(decrease) in interest payable   (7) (39)
Net loss/(gain) on overseas investments 2 (416) (1,469)
Net loss/(gain) on Australian dollar securities 2 (75) (142)
Net loss/(gain) on foreign currency 2 4,273 (5,029)
Decrease/(increase) in income accrued on investments   544 (190)
Depreciation of property 8 9 9
Depreciation of plant and equipment 8 17 14
Net payments for and proceeds from investments   16,559 (1,824)
Other   8 (9)
Net cash provided by operating activities   17,984 127
These Financial Statements should be read in conjunction with the accompanying notes.