Reserve Bank of Australia Annual Report – 2001 Financial Statements Note 18 – Cash Flow Statement

The following cash flow statement appears as a matter of record to meet the requirements of AAS28; in the RBA's view, it does not shed any 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.

Statement of Cash Flows for the financial year ended 30 June 2001

2001
Inflow/(outflow) $M 		2000
Inflow/(outflow) $M
Cash flows from operating activities
Interest received on investments 2,274 2,022
Interest received on loans, advances, and on net overnight settlements systems 41 36
Loan management reimbursement 1 2
Banking service fees received 19 17
Rents received 9 7
Net payments for and proceeds from sale of investments (3,299) (5,344)
Interest paid on deposit liabilities (728) (388)
Staff costs (including redundancy) (84) (99)
Premises, equipment and stores (25) (26)
Other 15 21
Net cash provided by operating activities (1,777) (3,752)
Cash flows from investment activities
Net expenditure on property, plant and equipment 9 (22)
Net cash used in investing activities 9 (22)
Cash flows from financing activities
Profit payment to Commonwealth (1,479) (3,000)
Net movement in deposit liabilities 1,379 5,103
Net movement in loans and advances 7 16
Net movement in notes on issue 1,733 1,882
Other (13) 7
Net cash provided by financing activities 1,627 4,008
Net increase/(decrease) in cash (141) 234
Cash at beginning of financial year 821 587
Cash at end of financial year 680 821
Reconciliation of cash 30 June 2001
$M 		30 June 2000
$M
Cash 115 131
Overnight settlements system 565 690
680 821
Reconciliation of net cash provided by operating activities to Net Profits in terms of the Reserve Bank Act 2001
$M 		2000
$M
Net profit 3,149 2,292
Increase in interest payable (26) 72
Increase in interest receivable – 2
Net loss/(gain) on overseas investments (743) 232
Net loss/(gain) on Australian dollar securities (457) 128
Net loss/(gain) on foreign currency (320) (1,141)
Increase in income accrued on investments (100) (8)
Depreciation of property 7 7
Depreciation of plant and equipment 9 8
Net payments for and proceeds from sale of domestic and foreign investments (3,299) (5,344)
Other 3 –
Net cash provided by operating activities (1,777) (3,752)