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Financial Statements of the Government of New Zealand for the Year Ended 30 June 2007

Reconciliation of Net Cash Flows From Operations to Operating Balance

(for the year ended 30 June 2007)

Forecast   Actual
Original Budget Estimated Actual   30 June 2007 30 June 2006
$m $m   $m $m
    Reconciliation Between the Net Cash Flows from Operations and the Operating Balance    
7,683 11,150 Net Cash Flows from Operations 12,620 12,112
    Items included in the operating balance but not in net cash flows from operations    
    Valuation Changes    
17 (323) Decrease/(increase) in GSF pension liabilities 920 (279)
(674) (1,742) (Increase)/decrease in ACC liabilities (1,020) (1,321)
Decrease/(increase)/decrease NPF guarantee 49 (54)
Increase/(decrease) in commercial forests 27 15
(4) (281) Unrealised net foreign-exchange gains/(losses) 42 502
548 525 Other valuation changes 516 1,242
(113) (1,821) Total Valuation Changes 534 105
   

Property, Plant and Equipment Asset Movements

   
(2,918) (3,099) Depreciation (3,144) (2,708)
(Losses)/gains on sale of physical assets (316) 811
(2,918) (3,099) Total Property, Plant and Equipment Movements (3,460) (1,897)
    Other Non-Cash Items    
(167) (817) Student loans (225) (1,671)
(89) (89) Amortisation of goodwill (99) (75)
808 1,060 Other 1,193 945
552 154 Total Other Non-Cash Items 869 (801)
    Movements in Working Capital    
22 (1,402) (Decrease)/increase in taxes receivable (1,145) 3,225
307 (825) (Decrease)/increase in other receivables (136) 366
161 194 Increase/(decrease) in inventories 85 (39)
74 2,217 (Increase)/decrease in payables (704) (1,598)
564 184 Total Movements in Working Capital (1,900) 1,954
5,768 6,568 Operating Balance 8,663 11,473

The accompanying notes and accounting policies are an integral part of these statements.

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