Page 50 University of Technology, Jamaica Notes to the Financial Statements 31 March 2020 (expressed in Jamaican dollars unless otherwise indicated) 30. Impact of Covid 19 The COVID-19 outbreak has developed rapidly in 2020, with a significant number of infections. Measures taken by various governments to contain the virus have affected economic activity. We have taken several measures to monitor and mitigate the effects of the COVID-19 virus, such as safety and health measures for our people (such as social distancing of both staff and students) and the rapid migration to online delivery of its tuition services. At this stage, the impact on our business and results has been a reduction in student registration which resulted in a reduction in our revenue and increase in our receivables. The Ministry of Education, Youth and Information outlined in their commitment letter its continued willingness to provide necessary support to reorganize and restructure the operation of the University to maintain the institution’s path to improve its financial viability. This is evidence in an increase in the subvention income subsequent to the period end. We anticipate that if the number of infections reduce and the economies start to reopen that we will be able to facilitate more face-to-face learning. We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our operations in the best and safest way possible without jeopardizing the health of our people. 31. Prior Year Adjustment Cash and cash equivalents recognised in prior year included solely cash at bank, cash in hand and bank overdraft. According to IAS 7, for an investment to qualify as a cash equivalent it must be readily convertible to a known amount of cash and be subject to an insignificant risk of changes in value. Therefore, repurchase agreements with maturity date three months or less from the date of acquisition were reclassified to cash and cash equivalents (Note 19). The impact of the reclassification on the statement of cash flow as at 31 March 2019 is as follows. Previously reported Reclassification adjustments Reclassified balance $’000 $’000 $’000 2020 Short term investments, net 21,710 1,342,574 1,364,284 Cash and cash equivalents at year end 213,548 1,342,574 1,556,122 University of Technology, Jamaica 166
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