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progress is being made by the pupils. The number of those thus taking advantage of the higher education placed within their reach has doubled itself during the year, and, though a much larger attendance still is desirable, the increase which falls to be recorded may be taken as an earnest of greater things to come. The approval of the Board has been given to a new set of regulations and a rearrangement of the syllabus of instruction in secondary subjects, to take effect from the commencement of the year. The Waimate High School Board of Governors has generously continued to contribute towards the cost of maintaining an extra teacher in Waimate, and the consent of the Education Board was given to the request of the Governors for a voice in the appointment of this teacher. Pupil-teachers.—The annual pupil-teachers' examination was held in June last, and was, as usual, conducted by the Board's Inspector. The usual returns and reports are appended. I have, &c, The Hon. the Minister of Education. Samuel W. Goldsmith, Chairman.

General Statement of Receipts and Expenditure for the Year ending 31st December, 1886. Receipts. £ s. d. Expenditure. £ s. d. To Balance at beginning of year— By Office staff, salaries.. .. .. 255 0 0 On Building Account .. .. 34 12 11 Clerical assistance .. .. .. 5 0 4 On General Account .. .. 1,589 2 9 Departmental contingencies .. 316 10 11 Government grant for buildings .. 2,452 17 0 Inspector's salary and travelling exOther receipts for buildings — Fairlie penses.. .. .. .. 450 0 0 Creek School Committee .. 14 0 0 Examination of pupil-teachers .. 50 18 6 Government statutory capitation (£3 Teachers' salaries and allowances (in--155.) .. .. .. .. 10,099 8 1 eluding rent, bonus, &c.) .. 11,637 1 6 Special capitation (55.) .. .. 760 0 0 Incidental expenses of schools .. 1,299 0 0 Scholarship grant (Is. 6d.) .. .. 256 6 8 Scholarships— Inspection subsidy .. .. .. 300 0 0 Paid to scholars .. .. .. 257 0 0 Payments by School Commissioners for Examination expenses .. .. 22 19 7 primary education .. .. 2,000 2 8 School buildings— District High School fees .. .. 37 6 3 New buildings .. .. .. 1,993 17 4 Contributions of School Committees .. 143 12 11 Improvements of buildings .. 304 4 1 Bents .. .. .. .. 16 16 3 Furniture and appliances .. .. 307 6 9 Waimate, secondary master .. .. 75 0 0 Sites .. .. .. .. 106 3 1 Plans, supervision, and fees .. 150 15 3 Balance at end of year — General Account .. .. .. 1,229 8 8 £18,385 5 6 £18,385 5 6 Samuel W. Goldsmith, Chairman. J. H. Bamfield, Secretary. I have audited this account, and have compared the items with the vouchers, and find it correct. —J. Ollivier, Provincial District Auditor. 18th March, 1887.

OTAGO. Sir,— Education Office, 31st March, 1887. In accordance with section 102 of " The Education Act, 1877," the Board of the Education District of Otago has the honour to submit the following report on the educational affairs of the district for the year 1886 : — Board.—At the beginning of the year the Board consisted of the following members : Messrs. Henry Clark, John McKenzie, William Elder; Professor Shand, Rev. James MacGregor, D.D. ; Messrs. Alexander C. Begg, Michael Fraer; Dr. William Brown, and Mr. John F. M. Fraser. Messrs. Henry Clark, John McKenzie, and William Elder were the members who retired in terms of section 15 of the Act. Seven candidates were nominated for the vacancies, and the voting resulted in the re-election of Messrs. Clark and McKenzie, and the election of the Hon. Thomas Dick. In February, Professor Shand, one of the oldest members of the Board created under the present Education Act, and for several years a member of the Board created under the provincial Act, resigned his seat. The Board, when accepting Professor Shand's resignation, unanimously passed the following resolution : " That, in accepting Professor Shand's resignation as a member of the Board, the Board regrets that he has felt it necessary to take this step, and expresses its high appreciation of the many services rendered by Professor Shand to the cause of education in the colony." The extraordinary vacancy was filled by the election of Mr. James Green. At the first meeting of the Board in April Mr. M. Fraer was re-elected Chairman. Dr. William Brown and Mr. James Fulton, M.H.R., were appointed members of the Board of Governors of the Dunedin Boys' and Girls' High Schools, and Mr. Neil Fleming was appointed the Board's representative on the Waitaki High School Board. Mr. Alexander C. Begg continued to represent the Board as Education Reserves Commissioner. During the year the Board held fifteen meetings. There were twelve meetings of the Finance Committee, and twelve of the Appointments Committee. Number of Schools. —At the close of 1885 175 schools were in operation. In the course of the year new schools were opened at Incholme, Arthurton, Tomahawk, Miller's Flat, White Sow Valley, and Albert Town. The number of schools in operation during the whole or a part of the year was, therefore, 181, or 184 if the six half-time schools be counted as separate schools. The establishment of schools at Lee Stream, Table Hill, and Round Hill has been sanctioned. Buildings were in course of erection in these districts at the close of the year. The following statement shows the classification of the schools according to their average attendance (two half-time schools