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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 .. .. 162 0 0 On Building Account " .. . . 82 5 4 Clerical assistance .. ... 500 On General Account .. .. 545 18 9 Departmental contingencies .. .. 198 19 11 On Petty Cash Account .. .. 5 0 8 Inspector's salary .. .. .. 175 0 0 Government grant for buildings .. 1,409 0 0 Inspector's travelling expenses .. 71 0 0 Progress payments on Hokitika new Examination of pupil-teachers .. 21 15 0 school .. .. .. 1,352 0 0 Teachers' salaries and allowances (inGovernment statutory capitation(£3lss.) 5,547 3 9 eluding rent, bonus, &c.) .. 5,108 19 2 Special capitation (55.) .. .. 369 16 3 Incidental expenses of schools .. 366 10 9 Scholarship grant (Is. 6d.) .. .. 140 6 1 Scholarships— Inspection subsidy .. .. .. 175 0 0 Paid to scholars .. .. .. 150 0 0 Sale of books .. .. .. 109 16 9 Examination expenses .. .. 12 2 0 Deposits on contracts .. .. 150 8 9 School buildings— Interest on fixed deposits .. .. 16 10 0 New buildings .. .. .. 1,767 5 6 Sale of debris, Hokitika School .. 4 0 0 Improvements of buildings.. .. 351 8 7 Furniture and appliances .. .. 42 11 7 Sites and improvements thereof .. 217 3 2 Plans, supervision, and fees .. 259 0 4 Advertising for tenders .. .. Id 2 0 School requisites .. .. .. 25 210 Deposits returned .. .. .. 149 8 9 Extraordinary expenses owing to fire at Hokitika, viz., — Bent of temporary premises .. 143 10 0 Altering and adapting same .. 154 1 6 Temporary furniture and appliances.. 35 9 9 Advertising .. .. .. 3 6 0 Miscellaneous .. .. .. 11 6 9 Balance at end of year — On Building Account .. .. 189 14 2 On General Account .. .. 208 16 1 On Petty Cash Account .. .. 1 12 6 £9,907 6 4 £9,907 6 4 Richard John Seddon, Chairman. John Smith, Secretary. I hereby certify that I have examined the above statement of accounts, and, having compared the same with the vouchers, ledger, bank pass-book, and other documents, find the same to be correct. —E. F. Rich, Auditor. Hokitika, 23rd March, 1887.

NORTH CANTERBURY. Sir,— Christchurch, 31st March, 1887. [Received, 16th May, 1887.] I have the honour to present the following report of the proceedings of the Education Board of North Canterbury for the year ended 31st December, 1886 : — Board.—The three members who retired by rotation on the 31st March, 1886, were Mr. C. C. Bowen, Mr. A. Saunders, and Mr. A. H. Cunningham, all of whom were re-elected. At a meetingheld on the Ist April Mr. Bowen was elected Chairman. The Board held twenty-three ordinary and tw ro special meetings during the year. The average attendance of members was 776. In the course of tho year important changes were made in the Board's system of administration. A Select Committee, of which Mr. Saunders was Chairman, was appointed to inquire into the condition of the schools in North Canterbury, and to suggest any reforms that might appear desirable. The Committee devoted a considerable time to their investigations and to the taking of evidence, and finally brought up an able and exhaustive report, which, with the evidence, was, by order of the Board, printed and circulated throughout the district. The principal recommendations were—(l) That, with the view of insuring a definite responsibility for the performance of executive duties, the several departments of the Board's executive work should be placed in charge of Committees specially appointed for the purpose; (2) that School Committees should receive more assistance from the Board in the choice of teachers, with which object the Board should call for applications, and, after setting aside any from applicants of whose qualifications it was not satisfied, should forward the rest to the School Committee for their consideration and selection; (3) that the number of pupil-teachers in the large schools should be reduced, and a greater number of female certificated teachers employed; (4) that, to assist the Board in the retention and promotion of deserving teachers, a permanent record should be kept of the services of all teachers employed in the district; (5) thai a special inquiry should be held into the working of the Normal School. This report was adopted by the Board on the 15th July, and its recommendations have been carried into effect. A Building Committee had existed since October, 1885 ; an Appointments Committee, charged with the duty of advising as to all appointments and dismissals of teachers, and of considering Inspectors' reports, was elected on the sth August, 1886; and the number has been completed by the election of a Finance Committee and a Normal School Committee. The Board has every reason to believe that, under the vigilant care of its several Committees, every branch of its business will be maintained on a thoroughly satisfactory and efficient footing. New Districts and Buildings.—New districts were formed in the year 1886 at Rotherham, Acton (near South Rakaia), and Westerfield; and the district of Governor's Bay South, in which there were two schools, was divided into two separate districts, called Charteris Bay and Teddington. New school buildings were erected at Charing Cross and Richmond, and a master's house at Charteris Bay, and a house for the master was bought at Hampstead. Additions were made to the

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