E.—l,

" Maintenance, renewal, and rebuilding of school buildings (including apparatus, fencing, furniture, &c.); " Maintenance of school residences ; " Rent of buildings used for school purposes." In January, 1905, another circular was issued in the same terms; but, following upon the report of the Education Committee dated the 2nd November, 1904, it contained the following additional statement of the objects on which the grant could be expended : — " Small Alterations and Additions : The total amount expended for all schools in the district under this head in any calendar year not to exceed 7 per cent, of the ordinary grant for school buildings, and the additional floor-space provided in any one school or residence out of the same vote in any calendar year not to exceed 400 square feet." In February, 1906, the circular took the following form :— " The ordinary grants for school buildings are distributed out of an item which is thus described in the vote for school buildings, Consolidated Fund : ' Grants to Education Boards for general maintenance of school buildings, rebuilding, furniture, fittings, sites, fencing, rents, &c.' " The amount allotted to your education district for the current year is £ " This grant is made to the Board primarily for the following purposes :— " (a.) To provide for maintenance and repairs of school buildings, furniture, fittings, &c. " (b.) To meet the cost of rebuilding worn-out schools, and of replacing worn-out furniture, fittings, fencing, &c. " The Board, after having made due provision for the requirements named above, may, at its discretion, devote the whole or part of the balance of the grant to additions to buildings, or, if need be, to new school buildings." This circular was objected to by the Audit Department on the ground that the terms of the vote did not allow of the expenditure of any part of the fund upon new buildings, and, the contention appearing to be well founded, the Boards were, in February, 1907, directed to cancel the last paragraph. It has appeared desirable to examine into the condition of the Maintenance Fund so far as it can be ascertained from the various returns rendered by the Boards to the Department. One of these returns purports to give the result of the year's transactions on the various special accounts, and from this the following summary of the assets and liabilities of the Maintenance Fund has been compiled.

Table F4.—School Building Maintenance Account: Assets and Liabilities.

XV

1905. 1906. Balances. Assets. Total. Balances. Assets. Total. tuckland 'aranaki Vanganui Vellington lawke's Bay .. larlborough .. lelson £ s. a. 6,617 11 4 1,515 6 3 5,954 9 8 3,885 17 3 4,090 2 8 1,655 8 6 1,789 15 4 16 13 0 Dr. 84 3 11 8,519 11 5 1,443 12. 0 5,497 2 6 4,998 5 11 £ s. d. 2,971 0 0 288 0 0 2,114 18 8 1,809 0 0 3,140 0 0 858 0 0 2,910 0 0 622 5 0 997 0 0 2,558 15 11 1,349 0 7 2,330 2 0 3,725 19 9 £ s. d. 9,588 11 4 1,803 6 3 8,069 8 4 5,694 17 3 7,230 2 8 2,513 8 6 4,699 15 4 638 18 0 912 10 1 11,078 7 4 2,792 12 7 7,827 4 6 8,724 5 8 £ s. d. 9,136 15 3 2,376 6 11 6,390 15 1 5,028 15 4 6,598 5 11 2,230 12 2 4,864 3 7 699 13 5 902 18 2 11,865 12 8 2,082 17 5 10,294 15 10 8,392 8 5 £ s. a. 1,247 13 5 Dr. 165 0 0 621 17 5 1,131 18 6 639 10 0 248 0 0 Dr. 455 10 8 214 7 6 272 0 0 Dr. 461 10 6 1,713 7 10 1,227 10 0 1,459 0 0 £ s. a. 10,384 8 8 2,211 6 11 7,012 12 6 6,160 13 10 7,237 15 11 2,478 12 2 4,408 12 11 914 0 11 1,174 18 2 11,404 2 2 3,796 5 3 11,522 5 10 9,851 8 5 !rey Vestlana forth Canterbury Louth Canterbury )tago louthland Totals .. 45,899 11 11 25,674 1 11, 71,573 13 10 70,864 0 2 7,693 3 6 78,557 3 8