E.—6

The revenue derived from the sources (i) to (iv) is the income derived from endowments, and the " net annual income derived from endowments " is the , iverage of this revenue for the three preceding years, less the expenditure upon the endowments and investments, upon buildings approved by the Minister, and less mortgage and other charges. The capitation payment on account of free pupils was fixed for 1918 as an amount per free pupil equal to the deficiency of the net annual income per head of roll number below £13 10s. Six Boards were paid the full rate, the rates paid to the remaining Boards ranging from £2 18s. Id. to £13 9s. 3d. In addition to the capitation payment, where the total annual income from endowments is less than £2 per head an annual grant of £200 is paid, and in all other cases a grant of £.100. Certain conditions as to staffing and salaries of teachers have to be fulfilled before full rates of payment on account of the attendance of free pupils can be claimed. The total income from endowments ranged in the various schools in 1918 from £0-544 to £24-195 per head of the roll number, while the " net annual income "as defined above ranged from nil to £10-596. The difference in the financial position of the various schools is to a large extent adjusted as already indicated by the capitation rates being on a sliding scale, with the result that the total income per free pupil from the two sources —capitation and " net annual income " from endowments —amounted in every case to £13 10s. The following is a summary of the receipts and payments of all secondary schools (lower departments included, Wanganui Collegiate and Christ's College Grammar Schools excluded) for the year 1918 : — Summary of the Statements oi? Receipts and Payments for the Year 1918 furnished by the Governing Bodies of Secondary Schools. (Wanganui Collegiate and Christ's College Grammar Schools not included.) ~ , , Receipts. ~ , Payments. ~ , Endowments— r £ s. d. J £ s. d. Sales and mortgage-money repaid .. 799 3 3 Endowments (including proportion of Lands vested in High School Boards .. 41,745 13 9 office expenses) .. .. .. 0,024 9 7 Secondary-education reserves .. 9,753 11 0 Teachers'salaries and allowances .. 99,482 5 9 Interest on moneys invested.. .. 889 16 11 Incidental expenses of secondary departGovernment grants — ments — Grants for buildings, sites, rent, appa- Office expenses and salaries (excluding ratus, &c, and subsidies .. .. 3,783 11 7 endowments) .. .. .. 3,358 5 7 Capitation for free places .. .. 82,517 3 5 Printing, stationery, and advertising .. 2,666 0 (i Capitation for manual instruction .. 2,082 2 ti Cleaning, heating, lighting, and care of School fees .. .. .. .. 10,744 12 0 school-grounds .. .. .. 8,009 Hi li Lower Department Account .. .. 4,625 10 6 Material, examinations, prizes, games, Boarding-school Account .. .. 34,689 4 3 and other incidentals .. .. 2,030 2 4 Loans, transfers from Capital Account, Manual instruction (excluding buildings, interest, &c. .. .. .. 460 14 1 &o.) .. .. .. .. 1,457 13 4 Technical ('lasses Account .. .. 2,102 2 3 Sites, buildings, furniture, apparatus, Voluntary contributions, income from taxes, &o. .. .. .. 29,747 1 4 property not reserves, refunds, and Lower Department Account .. .. 4,657 12 9 sundries .. .. .. .. 10,583 11 2 Boarding-school Account .. .. 32,303 2 8 Loans repaid and interest .. .. 8,336 7 4 Tochnical Classes Account .. 2,404 5 7 Scholarships, advances to pupils, and miscellaneous .. .. .. 5,827 12 4 £204,776 16 8 £206,364 15 7 As will be observed, the total payments exceeded the receipts by £1,588 ; loans, however, amounting to about £4,000 were repaid, while loans raised and included in the receipts above amounted to only £400. The total expenditure on salaries (excluding lower departments) was £99,482, and on incidentals (which include office administration, caretaking, school material, &c), £16,064, as compared with £90,534 and £14,808 respectively for the previous year. The expenditure per head of roll number on salaries amounted to £11-70 and on incidental expenses to £1-89, the latter figure ranging in the various schools from £1-45 to £3-58. The expenditure on buildings, &c, was £29,747, as compared with £30,209 m the previous year. The income from endowments was £2,621 greater than in the previous year, and the Government grants for buildings were £2,830 greater. The payments on account of buildings, sites, &c, differed very little from the amount paid in 1917. The Education Act stipulates that the total expenditure on staff salaries and incidental expenses must not be less than the total amount calculated at the rate of £13 10s. per free pupil, together with the amount of tuition fees received. As the latter sum in 1918 amounted to £107,534, and the expenditure on the items

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