Note 17. Borrowing Costs

Borrowing costs are finance charges in respect of finance leases for the Directorate’s fleet of vehicles and clinical equipment. Due to a change in the Whole of Government vehicle leasing arrangements with SG Fleet, from 23 April 2015 all such leases for the Directorate will be classified as operating leases (whose costs appear in supplies and services) rather than finance leases.  There will be no borrowing costs in respect of the Directorate’s fleet of vehicles in the next financial year.

 

2015
$’000

2014
$’000

Finance Charges

262

351

Finance Cost on Make Gooda

43

200

Total Borrowing Costs

305

551

  1. In 2013-14 there was a catch up of the discounting for make good provision to cover multiple years which increased the expenditure in that year.