PART 1: STRATEGIC POSITION

2. STRATEGIC COMMERCIAL DIRECTIONS

2.1. The Government requires the Corporation, in fulfilling its statutory functions as set out in the South Australian Forestry Corporation Act 2000, to be a business enterprise with the principal responsibility to manage plantation forests for the benefit of the people and economy of the State and pursue the following strategic commercial directions:

2.1.1 Manage plantation forests for commercial production in line with best practice standards for forestry operations and environmental management;

2.1.2 Undertake, and where appropriate commercialise, forestry related research for the benefit of the Corporation and the State; and

2.1.3 Maximise the value of the Corporation whilst achieving other key requirements of Government set out herein.

3. ECONOMIC DIRECTIONS

The Government is committed to the ongoing development of the South Australian economy through mechanisms that foster:

• Economic growth, investment and reinvestment in South Australia;

• Development of exports and entry to overseas markets;

• Research, development and commercialisation of technology; and

• Development of a strong information technology base.

To this end, the Corporation shall:

3.1 foster and support the growth of an internationally competitive forestry industry within South Australia;

3.2 encourage and facilitate regionally based economic activities based on forestry and other industries;

3.3 support regional resource protection initiatives and programs;

3.4 support the concept of environmental sustainability which assists in the protection of natural assets and market accessibility; and

3.5 support cooperative research activities within the forestry industry.

4. GOVERNMENT POLICIES

4.1 In pursuing the strategic objectives in the context of the Government’s directions, and undertaking its functions and exercising its powers, the Corporation shall act in accordance with the Government’s:

4.1.1. Governance framework for public corporations;

4.1.2. Policies generally applying to its commercial agencies; and

4.1.3. Policies specifically applying to the Corporation.

4.2 The Corporation in developing its operating policies shall have regard to other Government policies and strategies, and the roles and responsibilities of other Government agencies.

PART 2: THE CORPORATION’S OPERATIONS

5. COMMERCIAL OPERATIONS

5.1. General

For the purposes of the Public Corporations Act 1993, all operations of the Corporation are commercial operations, except for those operations referenced as non-commercial operations in Section 6.

5.2. Scope of Operations

The Corporation’s principal operations will be based in South Australia. The Corporation may also undertake activities related to the commercial management of plantation forests (including land acquisition and disposal) within Victoria in the Green Triangle Region, as defined by the National Plantations Inventory of Australia (NFI 1997), published by the Bureau of Resource Science.

5.3. Subsidiaries, Joint Ventures and Other Arrangements

With the approval of the Treasurer and the Minister, the Corporation may pursue commercial opportunities through subsidiaries, joint ventures or other appropriate arrangements, provided that the services delivered under the arrangements relate to forestry or ancillary services.

5.4. Investment Activities

The Corporation may invest:

5.4.1 in the development and continuation of the Corporation’s business, consistent with this Charter and directly related to its legislative functions;

5.4.2 in commercial operations beyond South Australia and the Green Triangle Region, as defined by the National Plantations Inventory of Australia (NFI 1997), published by the Bureau of Resource Science, in accordance with risk management and other financial arrangements agreed with the Minister and the Treasurer;

5.4.3 Surplus funds so as to maximise the return in accordance with sound investment practices appropriate to the nature of the funds invested.

6. NON-COMMERCIAL OPERATIONS

6.1 The Corporations non-commercial operations, in terms of the Public Corporation Act 1993, include those operations which are:

6.1.1. listed in Schedule 1 to this Charter;

6.1.2. subject to an agreement between the Corporation and a purchasing Minister; or

6.1.3. agreed to be non-commercial by the Minister and the Treasurer.

6.2. The Corporation is required to perform all non-commercial operations efficiently.

6.3. Non-commercial operations are to be costed and funded in accordance with arrangements determined by the Minister and Treasurer.

PART 3: FINANCIAL AND COMMERCIAL MANAGEMENT

7. FINANCIAL AND COMMERCIAL MANAGEMENT

7.1. Performance Targets

The financial and commercial targets to be met by the Corporation shall be those set out in the annual Performance Statement.

7.2. Form and Content of Accounts and Financial Statements

The Corporation must prepare financial statements based on Australian Accounting Standards, generally accepted accounting principles and practices, including the Financial Management Framework and other applicable instructions of the Treasurer issued under the Public Finance and Audit Act 1987.

7.3. Accounting and Internal Auditing Systems and Practices

The Corporation must establish and maintain:

7.3.1. financial and accounting processes, practices and systems in accordance with appropriate standards of practice; and

7.3.2. effective internal auditing of its operations in accordance with appropriate standards of practice and the Public Corporations Act 1993.

7.4. Reports on Operations

In addition to statutory reporting, the Corporation must provide the following reports to the Minister and the Treasurer:

7.4.1. quarterly performance monitoring report, including Statement of Financial Position, Statement of Financial Performance, Capital Investment Statement and Statement of Cash Flows;

7.4.2. quarterly Forward Estimates reports covering the Budget year and the three out years;

7.4.3. quarterly reports on its commercial operations beyond South Australia;

7.4.4. other information as requested from time-to-time by the Minister or the Treasurer; and

7.4.5. exception reports on any other information which in the opinion of the Board should be provided.

7.5. Asset Management

7.5.1. The Corporation must develop Asset Management Plans reflecting prudent commercial practice.

7.5.2. The Corporation shall consult other agencies and take account of any Government requirements in the disposal of surplus land (excluding easements) and buildings.

7.5.3. The Corporation will undertake appropriate risk management actions.

7.6. Borrowing

The Corporation shall not borrow without the approval of the Treasurer.

8. DATE OF OPERATION

This Charter comes into operation upon the signature of the Minister and the Treasurer, and is binding on the Corporation.

HON MICHAEL ARMITAGE, MP MINISTER FOR GOVERNMENT ENTERPRISES Date: 26 June 2001

HON ROB LUCAS, MLC TREASURER Date: 27 June 2001

SCHEDULE ONE Non-Commercial operations

The following activities of a non-commercial nature shall be performed by the Corporation:

• Native forest management

• Community use of forest reserves

• Forestry industry development

• Forestry policy and legislative support

• Community protection (including fire) and forest industry support activities

• Other activities as directed by the Minister.

			CONTENTS

Contents ForestrySA Home
	CHARTER OF THE SOUTH AUSTRALIAN FORESTRY CORPORATION
	1. INTRODUCTION 1.1. This Charter has been prepared by the Minister for Government Enterprises and the Treasurer, following consultation with the South Australian Forestry Corporation, in accordance with Section 12 of the Public Corporations Act 1993. 1.2. This Charter should be read in conjunction with: • The Public Corporations Act 1993; • The South Australian Forestry Corporation Act 2000; • The Forestry Act 1950; and • The Public Finance and Audit Act 1987. 1.3. Expressions used in this Charter have the same meaning as in the Public Corporations Act 1993. 1.4. In this Charter, the South Australian Forestry Corporation is referred to as “the Corporation”. 1.5. This Charter sets out the Government’s strategic objectives, priorities and requirements for the Corporation.		CORPORATE PROFILE CORPORATE SCORECARD EXECUTIVE INTRODUCTION CORPORATE OVERVIEW LEGISLATION ADMINISTERED BY FORESTRYSA SIGNIFICANT ACHIEVEMENTS AND INITIATIVES 2003-2004 KEY INITIATIVES AND TARGETS FOR 2004-2005 CORPORATE STRUCTURE SOUTH AUSTRALIAN FORESTRY CORPORATION BOARD AND CORPORATE GOVERNANCE FREEDOM OF INFORMATION STATEMENT CHARTER OF THE SOUTH AUSTRALIAN FORESTRY CORPORATION SOCIAL SOCIAL SCORECARD COMMUNITY FORESTRY SPONSORSHIPS AND MAJOR COMMUNITY EVENTS Forest Reserves COMMUNITY EVENTS FORESTRY DEVELOPMENT POLICY ABORIGINAL RECONCILIATION STATEMENT HUMAN RESOURCES MATTERS ORGANISATIONAL DEVELOPMENT EQUAL EMPLOYMENT OPPORTUNITY PROGRAMS OCCUPATIONAL HEALTH, SAFETY & INJURY MANAGEMENT ENVIRONMENTAL ENVIRONMENTAL SCORECARD FORESTRYSA’S ENVIRONMENTAL MANAGEMENT POLICY INTEGRATED MANAGEMENT SYSTEMS AND CONTINUAL IMPROVEMENT INTEGRATED RISK MANAGEMENT RESEARCH AND FOREST HEALTH NATIVE FOREST MANAGEMENT FOREST FIRE PROTECTION ENERGY EFFICIENCY ACTION PLAN ECONOMIC ECONOMIC SCORECARD BUSINESS PERFORMANCE PRODUCTION ACTIVITIES CONTRACTURAL ARRANGEMENTS FRAUD USE OF CONSULTANTS ACCOUNT PAYMENT SUMMARY INTERNATIONAL TRAVEL FOREST STATISTICS FINANCIAL STATEMENT STATEMENT OF FINANCIALperformance AT 30 JUNE 2004 STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2004 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2004 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 1 ROLE AND FUNCTION OF THE SOUTH AUSTRALIAN FORESTRY CORPORATION 2 summary of significant accounting policies 3 CHANGES IN ACCOUNTING POLICIES 4 FUNDING 5 CHANGE IN NET MARKET VALUE OF GROWING TIMBER 6 PROFIT 7 INCOME TAX 8 BAD AND DOUBTFUL DEBTS 9 AUDITORS REMUNERATION 10 RECEIVABLES 11 INVENTORIES 12 OTHER CURRENT ASSETS 13 (a) PROPERTY, PLANT AND EQUIPMENT 13 (b) PROPERTY, PLANT AND EQUIPMENT MOVEMENT SCHEDULE 14 Tax asssets 15 CREDITORS AND ACCRUALS 16 Employee benefits 17 INTEREST BEARING LOAN 18 tax liabilities 19 OTHER LIABILITIES 20 EQUITY 21 contributed equity 22 RETAINED PROFITS 23 DIVIDENDS PAID AND PROPOSED 24 RESERVES 25 EXPENDITURE COMMITMENTS 26 STATEMENT OF CASH FLOWS 27 SCHEDULE OF ADMINISTERED ITEMS 28 REMUNERATION OF DIRECTORS AND EMPLOYEES 29 RELATED PARTY DISCLOSURES 30 FINANCIAL INSTRUMENTS AUDITOR GENERAL’S REPORT GLOSSARY

	PART 1: STRATEGIC POSITION 2. STRATEGIC COMMERCIAL DIRECTIONS 2.1. The Government requires the Corporation, in fulfilling its statutory functions as set out in the South Australian Forestry Corporation Act 2000, to be a business enterprise with the principal responsibility to manage plantation forests for the benefit of the people and economy of the State and pursue the following strategic commercial directions: 2.1.1 Manage plantation forests for commercial production in line with best practice standards for forestry operations and environmental management; 2.1.2 Undertake, and where appropriate commercialise, forestry related research for the benefit of the Corporation and the State; and 2.1.3 Maximise the value of the Corporation whilst achieving other key requirements of Government set out herein. 3. ECONOMIC DIRECTIONS The Government is committed to the ongoing development of the South Australian economy through mechanisms that foster: • Economic growth, investment and reinvestment in South Australia; • Development of exports and entry to overseas markets; • Research, development and commercialisation of technology; and • Development of a strong information technology base. To this end, the Corporation shall: 3.1 foster and support the growth of an internationally competitive forestry industry within South Australia; 3.2 encourage and facilitate regionally based economic activities based on forestry and other industries; 3.3 support regional resource protection initiatives and programs; 3.4 support the concept of environmental sustainability which assists in the protection of natural assets and market accessibility; and 3.5 support cooperative research activities within the forestry industry. 4. GOVERNMENT POLICIES 4.1 In pursuing the strategic objectives in the context of the Government’s directions, and undertaking its functions and exercising its powers, the Corporation shall act in accordance with the Government’s: 4.1.1. Governance framework for public corporations; 4.1.2. Policies generally applying to its commercial agencies; and 4.1.3. Policies specifically applying to the Corporation. 4.2 The Corporation in developing its operating policies shall have regard to other Government policies and strategies, and the roles and responsibilities of other Government agencies. PART 2: THE CORPORATION’S OPERATIONS 5. COMMERCIAL OPERATIONS 5.1. General For the purposes of the Public Corporations Act 1993, all operations of the Corporation are commercial operations, except for those operations referenced as non-commercial operations in Section 6. 5.2. Scope of Operations The Corporation’s principal operations will be based in South Australia. The Corporation may also undertake activities related to the commercial management of plantation forests (including land acquisition and disposal) within Victoria in the Green Triangle Region, as defined by the National Plantations Inventory of Australia (NFI 1997), published by the Bureau of Resource Science. 5.3. Subsidiaries, Joint Ventures and Other Arrangements With the approval of the Treasurer and the Minister, the Corporation may pursue commercial opportunities through subsidiaries, joint ventures or other appropriate arrangements, provided that the services delivered under the arrangements relate to forestry or ancillary services. 5.4. Investment Activities The Corporation may invest: 5.4.1 in the development and continuation of the Corporation’s business, consistent with this Charter and directly related to its legislative functions; 5.4.2 in commercial operations beyond South Australia and the Green Triangle Region, as defined by the National Plantations Inventory of Australia (NFI 1997), published by the Bureau of Resource Science, in accordance with risk management and other financial arrangements agreed with the Minister and the Treasurer; 5.4.3 Surplus funds so as to maximise the return in accordance with sound investment practices appropriate to the nature of the funds invested. 6. NON-COMMERCIAL OPERATIONS 6.1 The Corporations non-commercial operations, in terms of the Public Corporation Act 1993, include those operations which are: 6.1.1. listed in Schedule 1 to this Charter; 6.1.2. subject to an agreement between the Corporation and a purchasing Minister; or 6.1.3. agreed to be non-commercial by the Minister and the Treasurer. 6.2. The Corporation is required to perform all non-commercial operations efficiently. 6.3. Non-commercial operations are to be costed and funded in accordance with arrangements determined by the Minister and Treasurer. PART 3: FINANCIAL AND COMMERCIAL MANAGEMENT 7. FINANCIAL AND COMMERCIAL MANAGEMENT 7.1. Performance Targets The financial and commercial targets to be met by the Corporation shall be those set out in the annual Performance Statement. 7.2. Form and Content of Accounts and Financial Statements The Corporation must prepare financial statements based on Australian Accounting Standards, generally accepted accounting principles and practices, including the Financial Management Framework and other applicable instructions of the Treasurer issued under the Public Finance and Audit Act 1987. 7.3. Accounting and Internal Auditing Systems and Practices The Corporation must establish and maintain: 7.3.1. financial and accounting processes, practices and systems in accordance with appropriate standards of practice; and 7.3.2. effective internal auditing of its operations in accordance with appropriate standards of practice and the Public Corporations Act 1993. 7.4. Reports on Operations In addition to statutory reporting, the Corporation must provide the following reports to the Minister and the Treasurer: 7.4.1. quarterly performance monitoring report, including Statement of Financial Position, Statement of Financial Performance, Capital Investment Statement and Statement of Cash Flows; 7.4.2. quarterly Forward Estimates reports covering the Budget year and the three out years; 7.4.3. quarterly reports on its commercial operations beyond South Australia; 7.4.4. other information as requested from time-to-time by the Minister or the Treasurer; and 7.4.5. exception reports on any other information which in the opinion of the Board should be provided. 7.5. Asset Management 7.5.1. The Corporation must develop Asset Management Plans reflecting prudent commercial practice. 7.5.2. The Corporation shall consult other agencies and take account of any Government requirements in the disposal of surplus land (excluding easements) and buildings. 7.5.3. The Corporation will undertake appropriate risk management actions. 7.6. Borrowing The Corporation shall not borrow without the approval of the Treasurer. 8. DATE OF OPERATION This Charter comes into operation upon the signature of the Minister and the Treasurer, and is binding on the Corporation. HON MICHAEL ARMITAGE, MP MINISTER FOR GOVERNMENT ENTERPRISES Date: 26 June 2001 HON ROB LUCAS, MLC TREASURER Date: 27 June 2001 SCHEDULE ONE Non-Commercial operations The following activities of a non-commercial nature shall be performed by the Corporation: • Native forest management • Community use of forest reserves • Forestry industry development • Forestry policy and legislative support • Community protection (including fire) and forest industry support activities • Other activities as directed by the Minister.


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