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members' attendance at which has been : Denniston, 15; Lumsden, 14 ; Matheson, 14; Moir, 4 ; Wilson, 3 ; Wade, 1. The average attendance at the schools for the year has been, boys, 50 ; girls, 39. There has been no change in the ordinary teaching staff during the year. Miss Waymouth was appointed teacher of drawing for both schools, and in the latter part of the year Mr. Sergeant Blackmore was appointed drill-instructor. With the consent of the Education Board for Southland, the Board secured the services of Mr. Gammell for the examination of both schools at the close of the year's work in December. The Board may here observe that six boys and one girl, pupils at the schools, presented themselves at the annual University Matriculation Examination. The boys' and girls' schools still continue to be held in the building erected some years ago for a girls' school, an arrangement forced on the Board by financial considerations, but which they continue to consider to be most inconvenient and disadvantageous to both schools, there being no playground attached to either; and the natural objection of parents to their daughters being placed in what, to a certain degree, becomes practically a mixed school, a circumstance which the Board believes has tended to decrease the roll of attendance at the girls' school. The Board, having previously received the consent of the Government to the sale of certain of its endowment lands, in terms of "The High Schools Eeserves Act, 1880," with the view of providing a fund for school-building purposes, were hopeful of being able before now to have proceeded with the erection of a separate boys' school; but the prevailing depression in the land market has operated against effecting sales on the terms fixed upon to the extent proposed. The lands proposed to be submitted to sale have in the meantime been offered for lease, also without result, subjecting the Board to the somewhat oppressive tax upon its resources in the shape of fencing costs, county rates, and rabbit-extermination charges. The lease of Section 10, Block XIV., New Eiver Hundred (90 acres 3 roods 38 perches), having expired, it has been re-let for the term of seven years at a rental of 10s. per acre. The following sections, as village allotments, in the Township of Athol Extension, have been disposed of on deferred payment: Section 96, 9 acres 2 roods 16 perches, £48 15s. ; Section 98, 10 acres 2 roods 16 perches, £53 155.; Section 99, 10 acres 2 roods 16 perches, £53 15s. ; Section 107, 20 acres 1 rood 24 perches, £102 10s. ; and Eural Section 37a, Wairio, 313 acres 2 roods, £471. The leases of Sections 37 and 38, Wairio, were offered at 2d. per acre, but failed to find a purchaser; and the lease of Section 1 of 8, Wairaki, leased last year at 6d. per acre, has been abandoned, and remains unoccupied. An offer to purchase Sections 37 and 38, Wairio, at £1 per acre on deferred payment was approved by the Board, but objected to by the Government. The balance-sheet for the year, duly audited, is appended to this report. Geoege Lumsden, Chairman.

2. Statement of Eecbipts and Expendituee for the Year ending 31st December, 1884. Receipts. £ s. d. Expenditure. £ s. cl. "To Balance from last year.. .. .. 284 11 5 By Reserves— Reserves— Charges for management .. .. 55 19 11 School Commissioners .. .. 96 1 4 Rents .. ~ .. .. 44 10 0 Rents .. .. .. .. 577 14 11 Stationery (boys) .. ~ .. 27 13 7 Sold .. .. .. .. 775 9 0 Extra subjects (paid to teachers) .. 33 18 0 School fees (boys) .. .. .. 429 1 0 Cleaning .. .. ~ 28 14 0 Stationery .. .. .. 31 13 6 Printing and advertising .. .. 11 6 6 Extra subjects .. .. .. 19 12 0 Fuel and light .. .. .. 6 5 1 School fees (girls) .. .. .. 326 16 0 Salaries .. ~ .. ~ 850 0 0 Stationery .. .. .. 27 9 4 Stationery (girls) .. .. .. 29 6 0 Extra subjects .. ... .. 12 12 0 Extra subjects (paid to teachers) .. 15 8 0 Cleaning .. .. .. .. 32 15 0 Printing and advertising .. .. 11 9 v Fuel and light .. .. .. 6 5 1 Salaries .. ~ .. .. G25 0 0 Repairs .. .. .. .. 17 5 6 Insurance .. .. .. .. 3 15 0 Interest .. ~ .. .. 15 8 Sundries (postage-stamps, cheque-book, &c.) 514 7 Secretary's salary, including office-rent, fire, and light .. .. .. 50 0 0 Balance, Bank of New Zealand, fixed deposit .. .. .. .. 300 0 0 Balance, current account .. 424 9 1 £2,581 0 6 £2,581 0 6 Geoege Lumsden, Chairman. Chaeles Eout, Secretary and Treasurer. I have examined this abstract and compared it with the Treasurer's books and vouchers, and I ■certify it to be correct. —H. LivraasiON, Auditor.