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of the principle of applying the Building Fund to its legitimate use of providing for new work, but it will be difficult, if not impossible, for the Board to maintain buildings in an efficient state of repair out of the ordinary fund without seriously interfering with the teaching power of the schools or restricting the capitation hitherto allowed to Committees for minor repairs and cleaning the schools. It is therefore evident that some source of revenue must be available to the Board for repairs, or it is to be feared the buildings will gradually become dilapidated. Committees.—The residents within the various school districts manifest a greater interest in the education of children, as is shown by the active contests during the election of School Committees. The School Committees, as a consequence, show a greater interest in the promotion of primary education by the proper conduct of the schools and the enforcing of the attendance of children. A greater interest is also taken in providing funds locally for beautifying and keeping in good order the school grounds and providing physical recreation for the children. The Board is convinced that this proper recognition of local duties will continue to be maintained, to the great benefit of the schools and education generally. The relation between the Board and the various Committees continues in harmony. Owing to financial considerations, the applications of the Committees for local works could not always be granted. The Board has always endeavoured to act fairly by all by providing new schools in out-districts, and by increasing the accommodation for children in schools already established, so far as the means at the disposal of the Board would admit. The total receipts of the various School Committees for the year were £943 17s. 2d., and the expenditure £773 os. 2d., leaving a credit balance of £170 17s. at the end of the year. Income and Expenditure.—The revenue of the Board from all sources for the year was £8,509 6s. 5d., and the expenditure £8,470 Is., leaving a balance of £39 ss. sd. For further details with regard to educational matters in this district I refer you to the Inspector's report, which furnishes much valuable information. The Hon. the Minister of Education. Thomas Kelly, 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 .. 2 311 By Balance at beginning of year .. .. 282 17 5 Government grant for buildings .. 1,145 17 9 Office staff, salaries .. '.. .. 175 0 0 Ditto (special) .. .. .. 250 0 0 Departmental contingencies .. .. 145 7 3 Other receipts for buildings — Sale of Inspector's salary .. .. .. 400 0 0 material .. .. .. 3 6 3 Inspector's travelling expenses .. 50 0 0 Government statutory capitation (£3 Examination of pupil-teachers .. 3 3 0 155.) .. .. ~ ~ 5,937 8 0 Teachers' salaries and allowances (inSpecial capitation (55.) .. ~ 419 9 5 eluding rent, bonus, &c.) .. 5,200 10 3 Scholarship grant (Is. 6d.) ~ ~ 113 14 5 Incidental expenses of schools .. 747 2 7 Inspection subsidy .. .. .. 200 0 0 Training of teachers ~ .. 66 0 0 Payments by School Commissioners for Scholarships— primary education ~ .. 342 8 8 Paid to scholars .. ~ .. 141 5 0 Management of High School .. .. 50 18 7 Examination expenses .. .. 3 4 0 Sale of old building .. .. ~ 15 0 School buildings— Half cost of fencing .. .. .. 4 4 6 New buildings .. .. ~ 896 11 6 Refund .. .. ~ .. 013 0 Improvements of buildings .. 164 14 7 Sale of books .. .. .. 5 010 Furniture and appliances .. .. 62 0 0 Hon. H. Scotland's scholarships .. 25 0 0 Sites .. .. .. .. 71 2 9 Contractors' deposits ~ ~ 10 0 0 Plans, supervision, and fees .. 53 0 0 Balance at end of year— Interest on School Building Account .. 8 2 8 On General Account .. .. 26 4 5 Balance at end of year— On Scholarship Account .. ~ 319 8 On Building Account .. ~ 61 13 5 On Deposit Account ~ .. 10 0 0 £8,541 14 _5 £8,541 14 5 Thomas Kelly, Chairman. Examined and passed. —C. Rennell, Auditor. E. Veale, Secretary.

GREY. Sir, — Education Office, Greymouth, 4th May, 1887. In accordance with section 102 of "The Education Act, 1877," the Board of the Education District of Grey has the honour to present a report of its management during the past year. School Commissioners. —The Commissioners, Major Keddell, R.M. (Chairman), and Messrs. Nancarrow and Ronayne, held office from the Ist January to the 31st March. During that period the Commissioners held seven meetings. " The Westland and Grey Education Boards Act, 1885," came into force on the Ist April, 1886. Under this Act a Board was constituted, consisting of six members, three to be nominated by the Governor, and three elected in the manner provided by " The Education Act, 1877." The three members nominated Were Messrs. Nancarrow, Marshall, and Nicholas; and the three elected, Messrs. Kerr, Petrie, and Helms. Mr. Nicholas held office Until June, when his sudden and lamented death caused a Vacancy on the Board, which was filled by the nomination of Mr. Frank White. Mr. Nancarrow was elected Chairman of the Board. He also held the position of representative of the Board on the Greymouth High School Board. The Board held ten meetings from the Ist April to the 31st December, making a total of seventeen meetings for the year. School Attendances.—At the end of the year nineteen schools were open, being an increase of two upon the preceding year, represented by the Teremakau Settlement School and the Lake