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Wairio, and Riversdale; and new residences have been erected at Edendale, Wyndham, Riversdale, Otatara Bush, Pukerau, Heddon Bush, and Wrey's Bush. The lower department in the Central and South Schools, Invercargill, and Riverton District High School, being overcrowded, additional accommodation was found to be necessary. An extension of the present buildings, capable of containing a hundred pupils, is in the course of erection at each of the schools, and will be ready for occupation at the end of the annual holidays. Tenders have also, been accepted for new school-buildings at Otama, East Hokonui, Thornbury, Spar Bush, and Pairlight, the premises (private property) ■which were used as a school at the latter place having been burned down. Demands for the erection of schools at Waikaka, Fernhills, and for extensions to the Winton and Waianiwa Schools, are very urgent, and will require to be dealt with by the Board in the beginning of next year. The establishment of schools at East Forest Hill, Nightcaps, Longridge, Kennington, Taringatura, and Redan Valley, cannot be long delayed, as the children in these localities, being at long distances from other schools, are growing up without the means of education. Some of the older schools of the district, such as Clifton, Long Bush, and Fortrose, are fast falling into decay, and will require to be replaced by new buildings of a larger size to accommodate the increased number of children. To carry out these necessary and, in most cases, urgent works, the Board has no doubt that the Government will take into account the exceptional circumstances of this district, and provide funds requisite for extending the means of education to those localities which are at present entirely destitute of them. Financial. — Board's Accounts : In Return No. 4* the financial position of the Board on the 31st December is fully stated. The debit balance there set down, £896 19s. 7d., is that arrived at from the bank's point of view—namely, the difference between the total income and expenditure for the year, without specifying the balances of the General and Building Funds separately. From the bank's point of view the Building Fund is overdrawn to the extent of £1,057 11s. 3d., and the General Account has a credit balance of £160 11s. Bd. The difference between these two sums gives that set down in the balance-sheet by the direction of the Auditor—namely, £896 19s. 7d. The balance-sheet is correct by either way; but the second is more convenient for carrying forward the balances of each of the separate funds to the transactions of the following year. — Committees' Accounts : The following is an abstract of the accounts of the School Committees for 1882 :— Income. £ s. d. 'Expenditure. £ s. d. From the Education Board ... 1,044 16 8 Cleaning schools and fuel ... ... 558 9 2 From donations, subscriptions, &c. ... 259 6 0 Repairs-to buildings, fences, &c. ... ... 311 4 4 From other sources ... ... ... 306 0 5 Books, maps, and furniture ... ... 78 19 10 Balances ... ... ... ... 160 13 8 Contributions towards teachers'salaries ... 156 12 4 Committees' expenses, stationery, &c. ... 136 17 7 Sundries ... ... ... ... 239 19 8 Balances ... ... ... ... 288 13 10 £1,770 16 9 £1,770 16 9 Referring to the subjects suggested in your Circular No. 82/9, as deserving to be noticed in this report, I have to state that no savings-bank has been as yet established in any school in the district; that the compulsory clauses of the Education Act have not been enforced by any School Committee; and that the life-insurance scheme, by which premiums are paid by deductions from the monthly salaries of the teachers, has been taken advantage of by ten out of sixty-four headmasters, and by two out of five male assistants, the whole sum paid as premiums for the year amounting to £126 3s. Id. I have, &c, John G. Smith, Secretary. The Hon. the Minister of Education, Wellington.

Statement of Receipts and Expenditure for the Year ending 31st December, 1828. Receipts. £ s. d. Expenditure. £ s. d. To Balance on 31st December, 1881 — By Office staff, salaries... ... ... 279 0 Building Account ... ... 1,023 10 11 Clerical assistance ... ... ... 210 0 General Account... ... ... 540 3 3 Departmental contingencies ... ... 238 15 4 Government grants for buildings ... 2,590 0 0 Inspectors' salaries ... ... ... 341 0 0 Government statutory capitation (£3 15b.) 12,612 11 6 Inspectors' travelling expenses ... 119 3 4 Special capitation (55.) ... ... 739 6 8 Examination of pupil-teachers ... 2 11 0 Scholarship grant (Is. 6d.) ... ... 223 9 6 | Teachers' salaries and allowances (inInspection subsidy ... ... ... 300 0 0 eluding rent, bonus, &c.) ... 13,488 13 9 Payments by School Commissioners for Incidental expenses of schools .. 1,014 16 8 primary education ... 1,565 6 9 : Insurance of school-buildings... ... 132 15 0 Other receipts — | . ScholarshipsBent reserve ... ... ... 7 0 0 Paid to scholars ... ... ... 208 6 8 Deposits, contracts ... ... 248 19 6 Examination expenses ... ... 29 3 0 Books sold ... ... ... 19 14 4 School-buildings— Balance of account on 316t December, New buildings ... ... ... 2,845 11 6 1882 —overdraft ... ... SOfi 19 7 Improvements of buildings ... 1,513 17 4 Furniture and appliances ... ... 93 5 8 Sites ... ... ... ... 59 13 2 Plans, supervision, and fees ... 158 14 6 Other expenses— Deposits refund ... ... ... 173 9 0 Books bought ... ... ... 25 5 8 Lectures—Town scholars ... 10 10 0 £20,767 1 7 £20,767 1 7 Thos. M. Macdonald, Chairman. John G. Smith, Secretary.

# Appended to Board's report.

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