Do you see anything wrong with the code?
Yes. Why are you adding the three fields together before you compare them?
I would probably do something like this: (assuming the fields are in the order you wish to sort them in)
@Override public int compare(final Report record1, final Report record2) {
int c;
c = record1.getReportKey().compareTo(record2.getReportKey());
if (c == 0)
c = record1.getStudentNumber().compareTo(record2.getStudentNumber());
if (c == 0)
c = record1.getSchool().compareTo(record2.getSchool());
return c;
}