Reserve Bank of Australia Annual Report – 2012 Financial Statements Cash Flow Statement

Cash Flow Statement – for the year ended 30 June 2012
Reserve Bank of Australia and Controlled Entities

This statement meets the requirements of AASB 107 – Cash Flow Statements and the Finance Minister's Orders for Financial Reporting. 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.

2012
Inflow/
(outflow) $M		 2011
Inflow/
(outflow) $M
Cash flows from operating activities
Interest received on investments 1,961 1,975
Interest received on loans, advances, and on net overnight settlements balances 41 42
Loan management reimbursement 1 1
Banking service fees received 23 20
Dividends received 9 4
Rents received 9 8
Net payments for and proceeds from investments (5,957) 2,244
Interest paid on deposit liabilities (778) (629)
Interest paid on currency note holdings of banks (123) (133)
Staff costs (including redundancy) (177) (174)
Property, plant and equipment (38) (39)
Other (31) (10)
Net cash provided by operating activities (5,060) 3,309
Cash flows from investment activities
Net expenditure on property, plant and equipment (17) (25)
Net cash used in investment activities (17) (25)
Cash flows from financing activities
Profit payment to Australian Government – (750)
Net movement in deposit liabilities 496 (3,483)
Net movement in loans and advances – 1
Net movement in notes on issue 3,536 1,300
Other – 5
Net cash used in financing activities 4,032 (2,927)
Net increase/(decrease) in cash (1,045) 357
Cash at beginning of financial year 1,209 852
Cash at end of financial year 164 1,209
These Financial Statements should be read in conjunction with the accompanying notes.
Reconciliation of cash Note 2012 $M 2011 $M
Cash   29 22
Overnight settlements systems 6 135 1,187
  164 1,209
Reconciliation of net cash provided by operating activities
to Net Profits in terms of the Reserve Bank Act 1959		 Note 2012 $M 2011 $M
Net Profit/(Loss)   1,076 (4,889)
Increase/(decrease) in interest payable   (25) 13
Net loss/(gain) on overseas investments 2 (426) 94
Net loss/(gain) on Australian dollar securities 2 (188) 26
Net loss/(gain) on foreign currency 2 228 5,666
Decrease/(increase) in income accrued on investments   140 (25)
Depreciation of property 8 7 8
Depreciation of plant and equipment 8 18 18
Net payments for and proceeds from investments   (5,957) 2,399
Other   67 (1)
Net cash provided by operating activities   (5,060) 3,309
These Financial Statements should be read in conjunction with the accompanying notes.