Reserve Bank of Australia Annual Report – 2011 Financial Statements Cash Flow Statement

For the year ended 30 June 2011
Reserve Bank of Australia and Controlled Entities

This statement meets the requirements of AASB 107 – Cash Flow Statements and the Finance Minister's Orders 2010–2011. 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.

2011
Inflow/
(outflow) $M 		2010
Inflow/
(outflow) $M
Cash flows from operating activities
Interest received on investments 1,975 2,498
Interest received on loans, advances, and on net
overnight settlements balances		 42 27
Loan management reimbursement 1 1
Banking service fees received 20 20
Dividends received 4 11
Rents received 8 9
Net payments for and proceeds from investments 2,244 16,548
Interest paid on deposit liabilities (629) (808)
Interest paid on currency note holdings of banks (133) (104)
Staff costs (including redundancy) (174) (155)
Property, plant and equipment (39) (37)
Other (10) (26)
Net cash provided by operating activities 3,309 17,984
Cash flows from investment activities
Net expenditure on property, plant and equipment (25) (56)
Net cash used in investment activities (25) (56)
Cash flows from financing activities
Profit payment to Australian Government (750) (5,227)
Net movement in deposit liabilities (3,483) (13,279)
Net movement in loans and advances 1 1
Net movement in notes on issue 1,300 672
Other 5 (15)
Net cash used in financing activities (2,927) (17,848)
Net increase/(decrease) in cash 357 80
Cash at beginning of financial year 852 772
Cash at end of financial year 1,209 852
These Financial Statements should be read in conjunction with the accompanying notes.
Reconciliation of Cash Note 2011 $M 2010 $M
Cash   22 8
Overnight settlements systems 6 1,187 844
  1,209 852
Reconciliation of net cash provided by operating activities
to Net Profits in terms of the Reserve Bank Act 1959		 Note 2011 $M 2010 $M
Net Profit   (4,889) (2,928)
Increase/(decrease) in interest payable   13 (7)
Net loss/(gain) on overseas investments 2 94 (416)
Net loss/(gain) on Australian dollar securities 2 26 (75)
Net loss/(gain) on foreign currency 2 5,666 4,273
Decrease/(increase) in income accrued on investments   (25) 544
Depreciation of property 8 8 9
Depreciation of plant and equipment 8 18 17
Net payments for and proceeds from investments   2,399 16,559
Other   (1) 8
Net cash provided by operating activities   3,309 17,984
These Financial Statements should be read in conjunction with the accompanying notes.