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evidently the intention of the framer of the scale of comparative values of these Certificates, that the teachers should advance as well as the pupils—in fact, that one is contingent upon the other, the Board adjusted the Scale to meet such an idea. Quabtebly Beturns.—ln consequence of the incorrect manner in which some of the quarterly returns were sent in by teachers, the Board issued a set of instructions for their guidance in making up these important documents. These instructions were drawn, not only with a view of insuring accuracy on behalf of teachers now in the employ of the Board, but also as a guide to new teachers who may hereafter enter the service, and who are not acquainted with the forms. The Board is of opinion that if they are carefully followed, the returns should be rendered as nearly perfect as possible, and it will impress upon teachers the necessity of strict attention to this matter. School Penny Banks.- —There are not any School Penny Banks in this district. Area or School Sites. —The Board passed a resolution last year that no school shall be erected upon a site of less than one acre, but in a great many histances the sites comprise double that area. Wherever it has been possible the school grounds have been fenced down the centre, as well as round the sides, for the purpose of separating the sexes during play hours. Ventilation and Lighting op School Booms.—ln the generality of schoolrooms under the Board, ventilation has been secured by means of syphon ventilators in the roof, the roofs being open or unlined. Ordinary double-hung sashes admit the light, and these, where possible, are so placed as to direct the rays from a side angle. The windows, in most cases, are fitted with inside green blinds. School Furniture.'—The Board at first adopted a dual desk, but finding it very expensive, and the benefits derived far from commensurate with the extra cost, as compared with the long desk, it has since adopted the latter kind. These have generally fixed seats, although the Board has a pattern with a loose form, which some of the committees prefer. For further information respecting maps and school furniture the Board would refer you to the Inspector's report. Finance.'—The financial position of the Board is not in such a flourishing condition as could be desired, the causes for which were fully pointed out in last year's report, and need not here be recapitulated. The Board has apportioned the grants to the best of its ability, and believes that the division has been beneficial to the district, and given general satisfaction. The general account shows an overdraft of £816 Os. 2d., with liabilities besides amounting to £438 7s. 10d., whilst the building account shows a credit balance of £355 18s. Bd., with liabilities amounting to £2,770 16s. 4d., which will probably be wiped out by a vote from the supplementary grant on account of school buildings. Whilst the Board has been most anxious to reduce the overdraft on the general account, it regrets to say that it shows a considerable increase. The Board has already referred to this matter so often, and to the special claim which it believes it has upon the consideration of the Government, that it now refrains from further comment, although it is still of opinion that when the causes which led to it are investigated, it will meet with that relief which the justice of the case demands. The Board is of opinion that the amount of clerical work required to be performed by the Secretary cannot be much longer continued without assistance, and whilst wishing to observe every care and economy in the departmental expenditure, it feels that this matter must receive early consideration. In the several tables accompanying the report, are shown the returns required by Government, to which the Board would direct your attention for statistical information. Bespecting educational matters generally, the state of the schools throughout the district, and such further information as is required by Circular No. 43, the Board respectfully begs to refer you to the Inspector's report, and trusts that the information therein set forth will accord with your wishes. I have, &c, The Hon. the Minister of Education. W. H. Watt, Chairman.

General Statement of Receipts and Expenditure for the Year ending 31st December, 1879. Receipts. £. s. d. Expenditure. £ s. d. To Balance, Ist January, 1879, By Overdrafts Ist January, 1879. Special Buildings Grant .. .. 4,000 0 0 Buildings .. .. .. 3,633 3 0 Grants from Government — General Account .. .. 582 19 5 Statutory Capitation (£3 155.) .. 8,972 19 3 Office and BoardGrants to Committees (10s.) .. 1,199 12 6 Office staff, salaries .. .. 308 6 8 Scholarships (Is. 6d.) .. .. 90 0 0 Departmental contingencies .. 438 18 7 Inspection Subsidy .. .. 300 0""0 School Inspection— Special for Buildings .. .. 11,000 0 0 Salaries .. .. .. 400 0 0 Payments by School Commissioners Travelling expenses .. .. 50 0 0 from Education Eeserves.. .. 89 7 3 Examination of pupil teachers .. 48 11 8 Subscriptions and donations, for ordinary Teachers' salaries and allowances .. 9,118 1 2 purposes .. .. .. 5 5 0 School Committees, for educational purFees for District High Schools .. 84 0 0 poses .. .. .. 862 5 10 From Public Libraries vote .. .. 226 12 0 Scholarships—Paid to holders .. 90 0 0 Interest on investments in the Eees' School Buildings— Bequest Account .. .. .. 196 4 0 New buildings .. .. 5,113 9 1 Government Grant, refund of the amount Enlargement, improvement, and repaid to the late Patea Board .. 75 6 0 pairs .. .. .. 4,219 19 9 Bank interest received for amount on School furniture and appliances not fixed deposit .. .. .. 45 0 0 included in preceding .. .. 1,054 1 3 Bank overdraft on General Account .. 816 0 2 Purchase of sites .. .. 216 10 0 Plans, supervision, &c. .. .. 193 8 11 Library Committees, out of Public Libraries vote .. .. .. 223 3 5 Sundries, as per details of expenditure .. 191 8 9 Bank balance (building account) .. 355 18 8 £27,100 6 2 £27,100 6 2 W. H. Watt, Chairman. A. A. Browne, Secretary. Note.—Owing to the mode in which the Board keeps its accounts, it has been necessary in compiling Tables 1 and 2 of the Appendix to throw out an excess balance of £4,355 18s. Bd. on each side of the general statement, so as to show the •exact amount of income and expenditure. This reduces the totals as given in Tables 1 and 2to £22,744 7s. 6d. 2