Reserve Bank of Australia Annual Report – 2004 Financial Statements Note 19 – Cash Flow Statement

The following cash flow statement appears as a matter of record to meet the requirements of AASB1026 – Statement of Cash Flows; 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 RBA and overnight settlements system account balances with other banks.

Statement of Cash Flows For the year ended 30 June

2004
Inflow/(outflow) $M		 2003
Inflow/(outflow) $M
Cash flows from operating activities
Interest received on investments 1,767 2,011
Interest received on loans, advances, and
on net overnight settlements systems		 38 38
Loan management reimbursement 1 1
Banking service fees received 17 23
Rents received 5 4
Net payments for and proceeds from sale of investments (5,135) (73)
Interest paid on deposit liabilities (581) (492)
Interest paid on currency note holdings of banks (136) (136)
Staff costs (including redundancy) (105) (94)
Premises and equipment (24) (25)
Other 25 (105)
Net cash provided by operating activities (4,128) 1,152
Cash flows from investment activities
Net expenditure on property, plant and equipment (16) (16)
Net cash used in investing activities (16) (16)
Cash flows from financing activities
Profit payment to the Australian Government (1,300) (1,889)
Net movement in deposit liabilities 3,390 744
Net movement in loans and advances 2 2
Net movement in notes on issue 1,850 242
Other (14) (2)
Net cash provided by financing activities 3,928 (903)
Net increase/(decrease) in cash (216) 233
Cash at beginning of financial year 839 606
Cash at end of financial year 623 839
Reconciliation of cash 2004
$M		 2003
$M
Cash 6 17
Overnight settlements systems 617 822
623 839
Reconciliation of net cash provided by operating
activities to Net Profits in terms of the Reserve Bank Act		 2004
$M		 2003
$M
Net Profit 1,955 2,173
Increase/(decrease) in interest payable 88 22
Net loss/(gain) on overseas investments 587 (1,036)
Net loss/(gain) on Australian dollar securities 169 (49)
Net loss/(gain) on foreign currency (1,829) 150
Decrease/(increase) in income accrued on investments 54 48
Depreciation of property 7 7
Depreciation of plant and equipment 9 9
Net payments for and proceeds from sale of investments (5,135) (73)
Other (33) (99)
Net cash provided by operating activities (4,128) 1,152