BERMUDA COLLEGE FINANCIAL STATEMENTS MARCH 31, 2005 'o Office of the Auditor General Reid Hall, Penthouse 3 Reid Street Hamilton HM 11, Bermuda Tel: (441)296-3148 Fax: (441)295-3849 Email: oag@,oagberrnuda,brn Website: www.oagbermuda.gov.bm AUDITOR'S REPORT To the Minister of Education I have audited the statement of financial position of the Bermuda College as at March 31, 2005 and the statements of operations, changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Bermuda College's management. My responsibility is to express an opinion on these financial statements based on my audit. Except as explained in the following paragraphs, I conducted my audit in accordance with auditing standards generally accepted in Bermuda and Canada. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In common with many not-for-profit organizations, the Bermuda College derives a portion of its revenues from donations, the completeness of which is not susceptible to satisfactory audit verification. Accordingly, verification of these revenues was limited to the amounts recorded in the records of the Bermuda College and I was not able to determine whether any adjustments might be necessary to revenues, excess of revenues over expenses, assets, deferred contributions, deferred capital contributions, restricted contributions and net asset balances. As more fully described in note 13(b) to the financial statements, the Bermuda College has not obtained an actuarial valuation to determine the obligation associated with continued pay after retirement for long-serving employees. Accordingly, I was unable to determine the adjustment necessary to accrued liabilities, expenses and net assets for the year. I was unable to obtain sufficient appropriate audit evidence to support the accuracy and validity of expenses totaling $4,670,719. As a result, I am unable to determine whether adjustments might be necessary to expenses, excess of revenues over expenses, liabilities and net assets. In my opinion, except for the effect of adjustments, if any, which I might have determined to be necessary had I been able to satisfy myself concerning the completeness of donations, the liability for employee future benefits and the verification of expenses and liabilities as described in the preceding paragraphs, these financial statements present fairly in all material respects, the financial position of the Bermuda College as at March 31, 2005 and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in Bermuda and Canada. Hamilton, Bermuda November 1, 2012 s&--- Heather A. Jacobs Matthews, JP, FCA, CFE Auditor General BERMUDA COLLEGE STATEMENT OF FINANCIAL POSITION MARCH 31, 2005 2005 $ 2004 $ Restated (Note 17) ASSETS CURRENT ASSETS Cash and cash equivalents Accounts receivable Prepaid expenses Due from Coco Reef Resorts Limited (note 9) Due from the Government of Bermuda (note 12) Inventories 881,340 1,479,748 129,347 1,782,746 2,638,864 32,133,488 33,951,063 1,892,312 1,741,624 35,808,546 38,331,551 795,204 344,584 2,206,205 275,290 38,076 10,228 818,878 401,492 1,170,664 3,750,169 448,475 753,054 25,998,200 27,198,169 1,892,312 1,741,624 29,509,651 CAPITAL ASSETS (note 5) RESTRICTED ASSETS (note 4) 1,212,664 167,841 82,980 14,122 69,523 235,616 33,443,016 - 148,429 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts payable and accrued liabilities Deferred insurance proceeds (note 7) Deferred contributions (note 8) Due to the Government of Bermuda (note 12) Due to Coco Reef Resort Limited (note 9) Long-term debt, current position (note 6) LONG-TERM DEBT (note 6) DEFERRED CAPITAL CONTRIBUTIONS (note 10) RESTRICTED CONTRIBUTIONS (note 4) NET ASSETS Invested in capital assets Unrestricted (deficit) 30,876 5,342,229 956,666 5,598,348 (709,813) 6,298,895 4,888,535 35,808,546 38,331,551 The accompanying notes are an integral part of these financial statements. BERMUDA COLLEGE STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2005 2004 2005 $ $ Restated (Note 17) REVENUES Government of Bermuda operating grant (note 12) Student fees (note 11) Amortization of deferred capital contributions (note 10) Ancillary operations and other revenues Interest Restricted contributions (note 4) 18,532,161 6,035,777 5,626,870 2,151,605 2,130,245 1,964,871 365,646 355,985 150,000 142,500 119,697 6,228,947 4,842,731 2,549,967 2,089,575 1,710,959 331,082 452,632 150,000 142,500 1,137,515 19,043,196 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES 13,353,526 3,007,629 1,212,488 881,776 59,318 17,424 20,453,556 EXPENSES Academic studies Academic services Physical plant and maintenance Amortization of capital assets Administration Other expenses Public relations Career Center grant (note 12) Adult Education School grant (note 12) Ancillary operations 14,874,808 3,411,317 1,199,969 876,918 53,710 36,834 19,635,908 1,410,360 (1,103,747) The accompanying notes are an integral part of these financial statements. BERMUDA COLLEGE STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED MARCH 31. 2005 2005 2004 Restated (Note 17) Invested in capital assets Unrestricted $ BALANCE. BEGINNING OF YEAR Excess (deficiency) of revenues over expenses BALANCE. END OF YEAR 5,598.348 (256.119) 5.342.229 $ Total Total $ $ (709.813) 4.888.535 5.992.282 1.666.479 1.410.360 (1.103.747) 956.666 6.298.895 4.888.535 The accompanying notes are an integral part of these finanacial statements. BERMUDA COLLEGE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31, 2005 2005 2004 $ $ Restated (Note 17) CASH FLOWS FROM OPERATING ACTIVITIES Excess (deficiency) of revenues over expenses Items not affecting cash: Amortization of capital assets Amortization of deferred capital contributions Changes in non-cash working capital: Decrease (increase) in accounts receivable Decrease (increase) in prepaid expenses Increase in due from Coco Reef Resorts Limited Increase in due from the Government of Bermuda Increase in inventories (Decrease) increase in accounts payable and accrued liabilities (Decrease) increase in deferred insurance proceeds (Decrease) increase in deferred contributions Increase (decrease) in due to Government of Bermuda (Decrease) increase in Due to Coco Reef Resorts Limited Cash flows generated through (used in) operating activities 1.410,360 (1.103,747) 2,130,245 (1,199,969) 2,089,575 (1,212,488) 1,311,907 46,367 (14,122) (69,523) (87.187) (1.321,911) (45,885) (1.411.001) (275,290) (7,200) (10,228) (818,878) 284.997 275,290 14.400 (18,674) 818,878 1.005,481 (256,954) _ (37.389) CASH FLOWS FROM INVESTING ACTIVITY Purchase of capital assets (312,670) (1,423,708) (150,688) 150.688 (361.487) (766.940) 245,576 319,000 (316,462) (361,487) (518,826) CASH FLOWS FROM FINANCING ACTIVITIES Increase in non-cash restricted assets Increase in restricted contributions Proceeds of long-term debt Repayment of long-term debt Cash flows used in financing activities - BERMUDA COLLEGE STATEMENT OF CASH FLOWS (continued) FOR THE YEAR ENDED MARCH 31. 2005 2005 2004 $ $ Restated (Note 17) DECREASE IN CASH AND CASH EQUIVALENTS 331,324 (2.199,488) CASH AND CASH EQUIVALENTS. BEGINNING OF YEAR 881.340 3,080.828 1,212,664 881,340 CASH AND CASH EQUIVALENTS, END OF YEAR The accompanying notes are an integral part of these financial statements. BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 1. AUTHORITY i Bermuda College (the "College") was established under the Bermuda College Act 1974 to provide full and part-time education and training for persons over the compulsory school age. The College is managed and controlled by a Board of Governors (the "Board") under the provisions of this Act and amendments thereto. 2. SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared in accordance with accounting principles generally accepted in Bermuda and Canada. i For financial reporting purposes, the College is classified as a government not-for-profit organization and has adopted accounting policies appropriate for this classification. The policies considered particularly significant are set out below: (a) Revenue recognition The College follows the deferral method of accounting tor contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Restricted investment income is recognized as revenue in the year in which the related expenses are incurred. Unrestricted investment income is recognized as revenue when earned. (b) Cash and cash equivalents Cash and cash equivalents include all cash held with financial institutions that can be withdrawn without prior notice or penalty and time deposits with an original maturity of 90 days or less. (c) Inventories Inventories are valued at the lower of cost and net realizable value. determined using the "first-in, first-out" (FIFO) method. (d) Cost is Capital assets Capital assets are recorded at cost, less accumulated amortization. Contributed capital assets are recorded at fair value at the date of contribution. Amortization is calculated on a straight-line basis over the estimated useful lives: Buildings and car parks Furniture and fixtures Equipment Laptop project equipment - 40 years and 25 years, respectively - 10 years - 4 years for computers and 5 years for other equipment - 3 years BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31. 2005 2. SIGNIFICANT ACCOUNTING POLICIES (continued) (e) Financial instruments The College's financial instruments consist of cash and cash equivalents, accounts receivables, due from Coco Reefs Resorts Limited, due from the Government of Bermuda, inventories and accounts payable and accrued liabilities. It is management's opinion that the College is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying values due to their relative shortterm nature. Certain items such as prepaid expenses, capital assets, deferred contributions and deferred capital contributions are excluded from fair value disclosure as they are not financial instruments. (f) Contributed materials and services Contributed materials and services are recognized in the financial statements when a fair value can be reasonably estimated and when the materials and services are used in the normal course of the College's operations and would otherwise have been purchased. (g) Government of Bermuda contributions Contributions in the form of operating grants are recognized as revenue on the statement of operations. Contributions relating to the acquisition of capital assets are deferred and recognized as revenue on the same basis as the amortization expense of the related capital assets. (h) Use of estimates The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues earned and expenses incurred during the reporting period. Actual results could differ from these estimates. 3. ECONOMIC DEPENDENCE The College is economically dependent upon the Government of Bermuda for its daily operations, cash flow, capital development and capital acquisitions. 4. RESTRICTED ASSETS AND CONTRIBUTIONS The College receives funds from private sources to be used for the provisions of scholarships, support for the Corange Science Center and other programs for the advancement of students" education. BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 4. RESTRICTED ASSETS AND CONTRIBUTIONS (continued) Changes in the restricted assets and contributions balance are as follows: 2005 $ $ 1,741,624 Balance, beginning of year 2004 1.496,048 202,000 (36,834) (14,478) Restricted cash 308.048 419,292 360.731 109,386 295.306 444,379 293,531 106,770 1,139,986 601.638 1,892.312 Restricted assets and contributions are comprised of the following: Investments Bonds and government securities Equities Money market funds Fixed deposits 1,741.624 1,197,457 694,855 Balance, end of year 165,737 (17,424) 97,263 1,892,312 Add: contributions and interest Less: amounts recognized as revenue Add: unrealized (loss) gain on investments 1,741,624 The cost at March 31, 2005 for bonds and government securities is $318,151 (2004 $295,278) and for equities is $442,512 (2004 - $612,550). 5. CAPITAL ASSETS 2005 2004 Cost Net Book Value Net Book Value $ Buildings and car parks Land Furniture and fixtures Equipment Laptop project equipment Accumulated Amortization $ $ $ 42,461,192 2,686,240 6.224,318 3,981,720 1.179,182 15.816,206 4.043,994 3.643,508 895,456 26.644,986 2,686,240 2,180.324 338,212 283,726 27.738,464 2,686.240 2,302.619 546.953 676.787 56,532,652 24,399,164 32,133,488 33.951.063 BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31. 2005 6. LONG-TERM DEBT 2005 $ Loan payable to IBM bearing interest at 7.3% secured by laptops and related equipment, payable in monthly installments of principal and interest of $14,253 to September 2005 2004 $ 97.551 243,257 Loan payable to IBM bearing interest at 8.5% secured by laptops and related equipment, payable in monthly installments of principal and interest of $14.188 to December 2005 149.599 275.824 Loan payable to BELCO of $811,200, bearing interest at 8.5% per annum, secured by the energy controls system financed, payable in monthly installments of principal and interest of $11.675 to December 2009 545,909 635.465 793.059 1.154.546 344,584 401.492 448.475 753,054 Current portion Principal repayments required are as follows: Year Amount 2006 2007 2008 2009 2010 Thereafter 344.584 106,047 115,420 125.622 101,386 793.059 7. INSURANCE CLAIM RECOVERABLE/DEFERRED INSURANCE PROCEEDS During the prior year, the College sustained damage to its properties as a result of Hurricane Fabian. The insurance company agreed to compensate the College $640,090 for damages. The proceeds were received during the current year. As of March 31. 2005 all proceeds (2004 - $364,800) had been spent on repairs. BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 8. DEFERRED CONTRIBUTIONS Deferred contributions represent unspent resources for use on costs of specific programs and student tuition for certain programs. Changes in the deferred contributions balance are as follows: 2005 $ $ Balance, beginning of year Add: contributions Less: amounts recognized as revenue 38,076 23,676 14,400 Balance, end of year 9. 2004 30,876 (7,200) 38,076 DUE FROM/(TO) COCO REEF RESORTS LIMITED The amount due from Coco Reef Resorts Limited of $14,122 mainly represents annual electricity cost recoveries of $132,000 less assumption of liabilities as of March 31. 2005, of $117,878. The amount due to Coco Reef Resorts Limited was $Nil (2004 - $818.878). 10. DEFERRED CAPITAL CONTRIBUTIONS Deferred capital contributions represent contributions made by the Government of Bermuda for the construction of the College and for the initial contents of the school. The Government of Bermuda continues to provide grants for the ongoing capital requirements of the College. The contributions are amortized to revenue on the same basis as the amortized expense of the acquired capital assets. Changes in the deferred capital contributions balance are as follows: 2005 2004 $ Balance, beginning of year Less: amounts amortized to revenue 27,198.169 (1,199.969) 28.410.657 (1,212,488) Balance, end of year 25,998,200 27,198,169 BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31. 2005 11. STUDENT FEES In accordance with the College's policy of providing a number of free places for needy students for whom the tuition fees are a deterrent to enrolment, full time fees in the amount of $138,428 (2004 - $123,930) have been waived. 12. RELATED PARTY TRANSACTIONS The College is related in terms of common ownership to all Government of Bermuda departments and agencies. The College enters into transactions with these entities in the normal course of business and such transactions are measured at the exchange amount which is the amount of consideration established and agreed to by the related parties. Significant transactions with the Government of Bermuda are as follows: (a) Government grants The College received Government grants totaling $14,874,808 (2004 - $13,353,526) during the year. Included in Government grants is $142,500 (2004 - $142,500) which the College has been instructed by the Ministry of Education to pay to the Adult Education School. The College remits a quarterly distribution directly to the Adult Education School. The College had also been instructed to pay the amount of $150,000 (2004 - $150,000) to the Career Center. During the year the Government of Bermuda paid $1,014,808 on behalf of the College to settle a GEHI liability. This amount has been included as a Government grant. The remainder of the grants received in the amount of $13,567,500 (2004 - $13,025,401) are to be used for operations and capital expenditures. (b) Other amounts 2005 2004 Revenue (Expense) Revenue (Expense) Receivable (Payable) $ Student fees Training and Development Text books Facility rentals Superannuation Social insurance Insurance Payroll tax Miscellaneous Receivable (Payable) $ $ $ 463,843 69,260 2,917 75,805 (436,145) (161,521) (244,745) (477,293) (36,000) 266,913 32,519 - 39,991 (73,908) (25,811) (51,054) (119,127) (103,200) 375,325 112,370 11,975 85,525 (429,128) (161,114) (140,282) (476,119) - 148,600 20,000 5,497 60,509 (71,992) (30,462) - (117,650) (24,730) BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 13. EMPLOYEE FUTURE BENEFITS (a) Pension Employees of the College are covered by the Public Service Superannuation Fund (the "Fund"), which is a defined benefit plan administered by the Government of Bermuda Contributions to the Fund are required from both the employees and the College. These contributions represent the total liability of the College and are recognized in the accounts on a current basis. The College is not required under present legislation to make contributions with respect to actuarial deficiencies of the Public Service Superannuation Fund. The College's contributions to the Fund during the year total $436,145 (2004 - $429,128). (b) Retiring allowance The College provides its employees with greater than ten years of service with continued pay for a period of up to twelve weeks subsequent to their retirement. The length of the continued pay period is dependent on the length of service of the employee. Based on employees currently eligible for this benefit, the College has accrued $83,391 (2004 - $85,133). No actuarial study has been performed to determine the College's obligation associated with this employee future benefit. (c) Other benefits Other employee benefits include maternity leave, sick leave and vacation days. All these benefits are unfunded. Maternity leave does not accumulate or vest and therefore an expense and liability is only recognized when applied for and approved. There were no maternity benefits applied for or approved during the current year and therefore, no liability has been accrued in the accounts. Sick leave accumulates but does not vest, and like maternity leave, a liability is recorded only when extended leave is applied for and approved. There was no extended sick leave applied for or approved during the current year and therefore, no liability has been accrued in the accounts. Vacation days accumulate and vest and therefore a liability has been accrued at year end. The accrued vacation liability as of March 31. 2005 is $254,831 (2004 $264,535) and is included in accounts payable and accrued liabilities. --- - BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 14. LEASE COMMITMENTS The Board leases property to Coco Reef Resorts Limited. The lease was signed on June 12, 2003 for a term of 50 years. Rent is based on the following base rent for the following periods: A yearly base rent o o o o o o o May 1. 2003 - April 30, 2008 - one peppercorn (if demanded) May 1, 2008 - April 30. 2013 - $200,000 May 1,2013-April 30. 2018-$250,000 May 1. 2018 - April 30, 2024 - $300,000: May 1. 2024 - April 30, 2053 - rent shall increase from $300,000 by the percentage increase equivalent to the rate of increase in the consumer price index or to 110% of the passing rent whichever is greater and adjusted every seven years thereafter; May 1, 205 3 - April 30. 2128 - rent shall increase annually by an amount equivalent to the percentage increase in the consumer price index for the immediate preceding year provided that in any event that such rent shall be no less than the rent payable for the preceding year; and A yearly turnover rent equal to 20% of gross annual profits commencing May 1. 2003 Gross profits are as defined by Uniform System of Accounts for Hotels. No rent receivable has been recognized as of March 31. 2005 as Coco Reef Resorts Limited has had gross operating losses as at April 30, 2004, their fiscal year-end. 15. FINANCIAL RISK MANAGEMENT The College is exposed to various risks through its financial instruments. The Board has overall responsibility for the establishment and oversight of its risk management framework. The College manages its risks and risk exposures through sound business practices. The following analysis provides a measure of the risks at the reporting date. March 31. 2005. (a) Credit Risk Credit risk arises from cash held with banks and accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses on financial assets. The College determines, on a continuous basis, amounts receivable on the basis of amounts it is virtually certain to receive based on their estimated realizable value. BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 15. FINANCIAL RISK MANAGEMENT (continued) (i) Cash and cash equivalents Cash and cash equivalents consist of cash on hand, deposits with financial institutions that can be withdrawn without prior notice or penalty, and short-term deposits with an original maturity of 90 days or less. Credit risk associated with cash and cash equivalents is minimized substantially by ensuring that these financial assets are invested with financial institutions whose rating and status are consistently monitored by the College. (U) Accounts receivable Accounts receivable consist primarily of trade accounts receivable from billings of services provided. The College's credit risk arises from the possibility that a counterparty which owes the College money is unable or unwilling to meet its obligations in accordance with the terms and conditions in the contracts with the College, which would result in a financial loss for the College. This risk is mitigated through established credit management techniques and supplemented by use of professional credit agencies. In the year ended March 31, 2005. the maximum credit risk to which the College is exposed represents the fair value of its accounts receivable. (b) Liquidity Risk Liquidity risk is the risk the College will not be able to meet its financial obligations as they fall due. The College's objective in managing liquidity is to ensure that it will always have sufficient liquidity to meet its commitments when due, without incurring unacceptable losses or risking damage to the College's reputation. The College manages exposure to liquidity risk by closely monitoring supplier and other liabilities, focusing on generating positive cash flows from operations and establishing and maintaining good relationships with various financial institutions. (c) Market Risk Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the fair value of recognized assets and liabilities or future cash flows of the College's results of operations. The College has minimal exposure to market risk. (i) Foreign exchange The College's business transactions are mainly conducted in Bermuda dollars and. as such, it has minimal exposure to foreign exchange risk. (ii) Interest rate The College is exposed to changes in interest rates, which may impact interest revenue on short-term investments. BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31. 2005 16. CAPITAL MANAGEMENT The College's objective when managing capital is to hold sufficient unrestricted net assets to enable it to withstand negative unexpected financial events. The College seeks to achieve this objective through receipt of operating grants from the Government of Bermuda and excess of revenues over expenses. The College seeks to maintain sufficient liquidity to meet its short-term obligations as they come due. The College is not subject to any externally imposed capital requirements. 17. PRIOR PERIOD ADJUSTMENT Audit fees relating to fiscal years 2003 and 2004 were not recorded in the prior years. Therefore, accounts payable and accrued liabilities, other expenses and net assets were restated as at March 31. 2004. As a result, the 2005 balances have been restated. Accounts payable and accrued liabilities As previously stated (March 31. 2004) As restated $2,139,005 $2,206,205 Other expenses As previously stated (March 31. 2004) As restated $263,882 $331,082 Net assets As previously stated (March 31, 2004) As restated $4,955,735 $4,888,535 18. FUTURE ACCOUNTING POLICY CHANGES In December 2010, the Public Sector Accounting Board approved an amendment to the Introduction to the Public Sector Accounting Handbook. Effective for fiscal years beginning on or after January 1. 2012, government not-for-profit organizations are directed to use either the public sector accounting standards or public sector accounting standards for government not-for-profit organizations. The College is currently assessing the appropriateness and potential impact of the change in accounting standards on its financial statements for the year ending March 31, 2013. 19. SUBSEQUENT EVENT On May 4, 2009 the Board of Governors for the Bermuda College and Coco Reef Resorts Limited signed a Deed of Addendum to extend their lease for an additional term of 75 years. The total term of the lease shall now be a period of 125 years commencing May 1. 2003. BERMUDA COLLEGE NOTES TO THE FINANCIAL STATEMENTS MARCH 31, 2005 19. SUBSEQUENT EVENT (continued) In March 2011, an amendment to the Companies Act 1981 to make clear that the Minister responsible for administering the Act can sanction the leasing of land by a local company for a period of up to 131 years was passed. Coco Reef Resorts Limited's Memorandum of Association was amended to allow it to lease land for a period of up to 125 years with the prior sanction of the Minister of Finance. On May 19, 2011, the Minister of Business Development and Tourism granted permission for Coco Reef to lease the Coco Reef Resorts Limited and related lands for 125 years. On June 2, 2011, the Lease Addendum was signed by the College Board and Coco Reef Resorts Limited. The terms of the Addendum are identical to those contained in the first Addendum signed in May 4, 2009. 20. COMPARATIVE FIGURES Certain of the comparative figures have been reclassified and restated to conform to current year presentation.