25 EXPENDITURE COMMITMENTS	Note	Year ended 30 June 2004 $’000	Year ended 30 June 2003 $’000
(a) Operating Leases
Non cancellable operating leases contracted for but not capitalised in the accounts:
Due not later than one year		838	873
Due later than one year but not later than five years		814	697
Due later than five years		131	270
Total operating lease commitments		1 783	1 840
These operating lease commitments are not recognised in the financial report as liabilities.
The property lease is non cancellable, with rental payable monthly in advance. Rental provisions within the lease agreement require the minimum lease payments to be increased by 3 percent per annum. An option exists for the property to be leased for a further period of 5 + 5 years at the end of the rental agreement.
Plant and equipment leases are non cancellable, with rental payable monthly in arrears. Rental provisions within the lease agreements apply fixed rates for the full term of each lease. No options exist to renew the leases at the end of the term of the leases.
(b) Capital Expenditure Commitments
During 2002-03 SAFC entered into a contract for the supply of replacement fire trucks at an estimated total program cost of $9 330 000 and is anticipated to be completed by October 2005. The remaining liability of $6 870 000 has not been provided for in the Statement of Financial Position as the contract is equally proportionally unperformed as at 30 June 2004.
(c) Contingent Liabilities
The Corporation has no contingent liabilities.

26 STATEMENT OF CASH FLOWS	Note	Year ended 30 June 2004 $’000	Year ended 30 June 2003 $’000
(i) COMPONENTS OF CASH
For the purpose of the statement of cash flows, cash includes cash on hand and deposit account. Cash as shown in the Statement of Cash Flows is reconciled to the beginning and end of period Statement of Financial Position as follows:
Cash		19 704	13 428
(ii) RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO OPERATING PROFIT AFTER TAX
Net cash provided by operating activities		30 847	27 687
Other reconciliation movements:
Net change in value of growing timber		14 756	21 020
Depreciation and amortisation		(1 612)	(1 461)
Doubtful debts		–	2
(Increase)/Decrease in Employee Benefit provisions for:
Long Service Leave		(3)	(135)
Annual Leave		(85)	(132)
Workers compensation		120	141
Accrued Salaries and Wages		402	(70)
Other Employee Benefits		(1)	142
Movement in Income Taxes Payable and Future Income Tax Benefit		(938)	(421)
(Loss) on sale of property, plant and equipment		(110)	(37)
Changes in assets and liabilities:
Increase in receivables		1 644	978
(Decrease) in inventories		(446)	(809)
Increase in prepayments		270	(8)
Decrease/(Increase) in creditors and accruals		(1 101)	283
Decrease in unearned revenue		22	49
Profit from ordinary activities after related income tax expense		43 765	47 229

27 SCHEDULE OF ADMINISTERED ITEMS	Note	Year ended 30 June 2004 $’000	Year ended 30 June 2003 $’000
Ips Fund
SAFC administers a fund on behalf of a collective group interested in the effective control of the Ips beetle. The fund is for the publication of research findings. The only asset of the fund is cash and there are no liabilities at 30 June.
Summary of cash flows
Cash at beginning of year		10	10
Interest received		1	–
Cash at end of year		11	10

28 REMUNERATION OF DIRECTORS AND EMPLOYEES
(i) Director’s remuneration
Income paid or due and payable to or on behalf of directors.		172	181
The number of directors whose income was within the following bands:		Number	Number
$10 000–$19 999		4	–
$20 000–$29 999		–	1
$30 000–$39 999		2	3
$40 000–$49 999		1	–
$50 000–$59 999		–	1
(ii) Employee remuneration		$’000	$’000
Income paid or due and payable to or on behalf of employees whose income was $100 000 or more.		701	383
The number of executive officers whose income was within the following bands:		Number	Number
$100 000–$109 999		1	1
$110 000–$119 999		1	1
$120 000–$129 999		1	–
$140 000–$149 999		1	–
$160 000–$169 999		–	1
$210 000–$219 999		1	–