Reserve Bank of Australia Annual Report – 2003 Financial Statements Note 19 – Cash Flow Statement

The following cash flow statement appears as a matter of record to meet the requirements of AAS 28 – 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 Reserve Bank and overnight settlements system account balances with other banks.

Statement of Cash Flows For the financial year ended 30 June

2003
Inflow/(outflow) $M
2002
Inflow/(outflow) $M
Cash flows from operating activities
Interest received on investments 2,011 2,056
Interest received on loans, advances, and on net overnight settlements systems 38 32
Loan management reimbursement 1 1
Banking service fees received 23 21
Rents received 4 5
Net payments for and proceeds from sale of investments (73) (622)
Interest paid on deposit liabilities (492) (484)
Interest paid on currency note holdings of banks (136) (78)
Staff costs (including redundancy) (94) (94)
Premises and equipment (25) (25)
Other (105) 9
Net cash provided by operating activities 1,152 821
Cash flows from investment activities
Net expenditure on property, plant and equipment (16) 12
Net cash used in investing activities (16) 12
Cash flows from financing activities
Profit payment to Australian Government (1,889) (2,834)
Net movement in deposit liabilities 744 (2,872)
Net movement in loans and advances 2 8
Net movement in notes on issue 242 4,762
Other (2) 29
Net cash provided by financing activities (903) (907)
Net increase/(decrease) in cash 233 (74)
Cash at beginning of financial year 606 680
Cash at end of financial year 839 606
Reconciliation of cash 2003
$M
2002
$M
Cash 17 20
Overnight settlements systems 822 586
839 606
Reconciliation of net cash provided by operating
activities to Net Profits in terms of the Reserve Bank Act
2003
$M
2002
$M
Net Profit 2,173 1,868
Increase/(decrease) in interest payable 22 (30)
Net loss/(gain) on overseas investments (1,036) (207)
Net loss/(gain) on Australian dollar securities (49) 99
Net loss/(gain) on foreign currency 150 (360)
Decrease/(increase) in income accrued on investments 48 65
Depreciation of property 7 7
Depreciation of plant and equipment 9 8
Net payments for and proceeds from sale of investments (73) (622)
Other (99) (7)
Net cash provided by operating activities 1,152 821