E.—l

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that an annual grant of something under £1,500 is entirely inadequate to meet current outlay and provide, as must be done, for an ever-increasing demand for the establishment of schools in newlysettled districts. During 1889 more than double the amount received was expended on the works referred to in the preceding paragraph. Inspection of Schools. —At the commencement of the year the Board resolved to appoint an Assistant Inspector of Schools, the experience of past years having proved conclusively that the work of examining and inspecting such a large number of schools and pupils was too onerous for one Inspector to overtake. Applications for the office were invited by advertisement. After a careful scrutiny of the qualifications of the respective candidates (twenty-one in number) the Board unanimously resolved to appoint Mr. George D. Braik, M.A., to the vacancy. Mr. Braik accepted office, and commenced his duties in April. Nearly all the schools in the district have been examined, and two-thirds of them inspected, in terms of the department's regulations issued by Order in Council. The annual report of the Board's Inspectors, copy of which is transmitted herewith, supplies all requisite information regarding the condition of education generally throughout the district. Detailed statistical information concerning (1) the numbers of pupils presented in the various standards, (2) the numbers who passed and failed, and (3) the percentages gained in "pass," " class," and " additional " subjects in the several schools examined, is given in the appendix to the Inspector's report. Eegulations of the Board. —The process of revising the Board's regulations was commenced in April last, and during the following six months occupied the unremitting attention of a special committee appointed for the purpose, as well as the earnest consideration of the Board itself. The entire code of regulations came under review, and to each separate set numerous amendments or alterations were made ; indeed, in some instances the regulations previously In force were entirely remodelled. This last remark is more particularly applicable to the regulations affecting pupilteachers. The scale of teachers' salaries was also recast, it being found that the former scale, with a percentage reduction applied, did not operate at all fairly in its application to certain grades of schools. Valuable memoranda for teachers respecting the introduction of suitable lessons in " physical exercises and singing " have been added to the regulations. This addition, it is expected, will be the means of inducing many teachers to give greater prominence than has hitherto been bestowed to these very essential adjuncts to the common-school course. Financial.—The income of the Board from all sources for the year ended the 31st December last, including credit balance at the commencement of the year, was £28,241 18s. Id., made up principally as follows: Statutory capitation grant, £21,043 6s. 2d.; payments by School Commissioners of Otago, £2,753 ss. Id.; scholarship grant, £571 6s. 9d.; inspection subsidy, £300; building grant, £489 7s. 6d. (£978 155., as first instalment of this grant, being paid at the close of 1888, and included in that year's accounts). These, with several smaller payments from other sources, constituted the Board's revenue, as above stated. The Board's balance-sheet, duly certified to by the Auditor-General, shows in the aggregate how this amount has been expended. A sum of £20,099 os. 7d. has been paid as salaries and allowances to teachers ; £1,439 7s. 6d. to Committees for incidental expenses ; and £2,949 6s. sd. for new buildings, repairs, appliances, &c. A reference to Departmental Eeturn No. 7 will show in detail the school district and purpose to and for which such sums have been granted by the Board. The financial condition of the Board, so far as its Maintenance Fund is concerned, is satisfactory, but with reference to the Building Fund the reverse is the case. On the latter there is a debit balance of £1,272 9s. 9d., which, with an amount of £260 16s. due or to fall due under contracts as on the 31st December, makes a deficit of £1,533 ss. 9d. Against this has to be placed the annual grant due by Government for buildings, and a sum of £385 due for reinstatement of North Invercargill school building —a total of £1,853 2s. 6d. ; thus leaving a credit balance of only £319 6s. 9d. wherewith to carry on the current year's operations—a sum scarcely sufficient to provide for six weeks' ordinary expenditure. By order of the Board. The Hon. the Minister of Education. John Neill, Secretary.

General Statement of Receipts and Expenditure for the Year ending 31st December, 1889. Beceipts. & s. d. t Expenditure. £ s. d. To Balance at beginning of year — By Office staff—Salaries .. .. 418 15 0 On Building Account .. .. 1,007 19 8 Departmental contingencies.. .. 490 1 1 On General Account .. .. 1,869 16 11 Inspectors'salaries .. .. .. 536 11 3 Government grant for buildings .. 489 7 6 Inspectors' travelling expenses .. 144 5 2 Ditto for rebuilding Hokonui School.. 160 0 0, Examination of pupil-teachers .. 13 7 0 Subscriptions and donations for build- Teachers' salaries and allowances (inings .. .. .. .. 18 8 6 eluding rent, bonus, &c.) .. 20,099 0 7 Government statutory capitation .. 21,043 6 2 Incidental expenses of schools .. 1,439 7 C Scholarship grant .. .. .. 571 6 9 j Scholarships— Inspection subsidy .. .. .. 300 0 0 Paid to scholars .. .. .. 44G 7 4 Payments by School Commissioners .. 2,753 5 1 j Examination expenses .. .. 18 0 9 Rents of reserves .. .. .. 27 6 6 I School buildings— Deposit on contract.. .. .. 110 New buildings .. .. .. 1,800 910 Improvements of buildings .. 772 7 9 Furniture and appliances .. .. 163 13 4 Sites .. .. .. .. 28 6 7 Plans, supervision, and fees .. 184 8 11 Libraries, subsidies.. .. .. 25 5 4 Balance at end of year— Dr. on Building Account £1,272 9 9) ~ „.., Or. on General Account 2,934 0 5} i' bbl iU S £28,241 _18_1 j £28,241 1.8 1 Alfred Baldey, Chairman. John G. Smith, Treasurer. Examined and found correct.—James Edwabd FitzGerald, Controller and Auditor-General.