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teachers, and visits the schools periodically to superintend and assist their practice. The students in the Normal school are now required to go through a regular course of training in drill aud in gymnastic and calisthenic exercises. The Board has drawn up a scheme of staff and salaries, which it is introducing throughout the district as rapidly as circumstances permit. The principle of the scheme is that a teacher shall be allowed for every thirty-five children in average attendance. A school with an average of less than 35 has one teacher, a master. When the attendance exceeds 35, a mistress is allowed. At 71 a pupil teacher is added, at 105 another, and so on; every addition of 35 children to the attendance involving an addition to the teaching staff. Every third such additional teacher is an adult, and the two intervening appointments are filled by pupil teachers. When the attendance exceeds 175, an infant mistress is appointed. In small schools taught by a master only a sewing mistress is employed, who instructs the girls in needlework for at least two afternoons in the week ; but when there is a mistress, she is expected to teach sewing. The minimum salary of a master is £130, and of a mistress, £65 ; rising in each case in proportion to the attendance to a maximum of £350 for a master and £200 for a mistress. A certificate of any class above the lowest entitles the holder to a bonus (in addition to his salary) of from £10 to £80, according to its value. The pupil teacher system, established in 1871, has been brought extensively into use, and, on the whole, works very satisfactorily. The principal teachers of schools in which pupil teachers are employed are required to give them an hour's instruction on four days in the week before or after school hours, for which they receive payment. The term of a pupil teacher's agreement is four years, and the salary from £20 to £50 for males, and from £16 to £40 for females, according as they are in the first, second, third, or fourth year. The increase depends on their marking satisfactory progress as tested by annual examination. Arrangements are contemplated by which pupil teachers who have completed their term will be encouraged to spend the interval before sitting for the certificate examination in attending a course of technical training in the Normal School. The only instance of half-time schools occurs in Governor's Bay South. To suit the peculiar requirements of this district, two school rooms have been built, which are under the charge of one master, who teaches in them alternately for half the week. With this exception, there are no half-time schools in North Canterbury, and no occasion has arisen for the employment of itinerant teachers, as provided by section 88 of the Education Act. In four places, already named, where the number of children is not enough to warrant the formation of a school district, the Board contributes to the support of a school established by local efforts ; the rate of contribution being £6 10s. per head of the average attendance when the school is in charge of a certificated master, or £5 if it is conducted by a mistress. Such schools are subject to inspection, and the course of instruction is as prescribed by the standards. Evening classes, it is understood, have been for some time established in connection with the Kaiapoi school, and during last winter similar classes were held at Colombo Road. There may be some other instances. But such extra work is entirely voluntary on the part of the teachers, and is not assisted by, nor comes under the official cognizance of, the Board. I have, &c, The Hon. the Minister of Education. John Inglis, Chairman.

General Statement of Receipts and Expenditure for the Year ending 31st December, 1879. Receipts. £ s. d. Expenditure. £ s. d. To Balances, Ist January, 1879— By Office and Board— Maintenance Account .. .. 9,053 19 10 Office staff, salaries .. .. 1,124 0 0 Special Buildings Grant .. .. 7,446 11 1 Departmental contingencies .. 229 910 Grants from Government— School Inspection— Statutory Capitation (£3 155.) .. 32,66114 6 Salaries .. .. .. 1,000 0 0 Grants to Committees (10s.) .. 5,058 17 6 Travelling expenses and forage allowScholarships (Is. 6d.) .. .. 746 2 0 ances .. .. .. 264 12 6 Inspection subsidy .. .. 500 0 0 Examination of pupil teachers .. 109 12 11 Training .. .. .. 2,000 0 0 Teachers' salaries and allowances .. 34,417 14 6 Specially for Buildings .. .. 25,000 0 0 School Committees for educational purPayments by School Commissioners from poses .. .. .. 5,856 9 8 Education Eeserves .. .. 5,276 16 9 Scholarships— Arrears of rates collected .. .. 5 4 0 Paid to holders.. .. .. 770 0 0 Public Libraries vote .. .. 916'::'5 7 Expenses of examinations .. 132 12 11 Training fees .. .. .. 38Ji 8 Training of teachers .. .. 2,292 10 4 Bent of school site Mandeville Plains .. 2 10 0 School Buildings— Sales of school sites .. .. 78 2 0 New buildings .. .. .. 7,935 19 6 Deposits on contracts ' .. 249 4 0 Enlargement, improvements, and repairs 11,796 8 3 Interest .. .. .. 1,229 11 11 School furniture and appliances not included in preceding .. .. 1,877 18 4 Purchase of sites .. .. 1,132 10 4 Plans, supervision. <fcc. .. .. 1,378 3 9 Library Committees out of Public Libraries vote .. .. .. 916 5 7 Drill instructor .. .. .. 488 4 1 Solicitor's expenses on reserves .. 7 11 0 Eefund of deposits on contracts .. 413 10 3 Balance ... .. .. 18,622 12 1 £90,266 5 10 £90,266 5 10 John Inglis, Chairman. J. V. Colborne-Veel, Secretary. I have audited this account and have compared the vouchers and accounts relating thereto with the several items of income and expenditure, and find the same correct. The balance at the Bank on the 31st December, 1879, amounted to the sum of £18,622 12s. Id., as shown by the Bank Account and the cash book. 17th March, 1880. J. Ollivier, Provincial District Auditor.