E.—l

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action must be taken to keep the expenditure within the revenue. The average cost of administration by the Boards over all districts was 5-13s. per head of the average attendance, as compared with. 5-71s. in the previous year ; the figure ranged in the various districts from 4-9s. to 8-35., the difference, between the lowest and highest cost being unaccountably great. The payments for incidental expenses of School Committees exceeded the receipts by £1,775, four Boards making transfers from the General Fund to make good the deficiency. The cost of incidental expenses averages 10-325. per head, and does not vary greatly in the different districts. The receipts and the payments for the training of teachers were both greater than in the preceding year, owing principally to the increased number of students drawing allowances, &c. Although the payments exceeded the receipts in the case of the accounts for manual instruction, technical instruction, public-school buildings, and maintenance of school buildings, in nearly every case amounts owing to the Boards at the end of the year were sufficient to make up the deficiency.' The large increase .in the cost of technical instruction was due to capital expenditure on new buildings. Several Boards have established workshops in connection with the manufacture of furniture and the erection and maintenance of buildings, and under proper management considerable saving in the cost of building works will result. The cost of the material used may be met in the first instance by transfers from the General Fund or the fund for the maintenance of buildings, and subsequently the other funds are charged with the output of the workshop according to the purpose for which the material is used. The Boards are being required to keep accounts in connection with the workshops on business lines, so that it may be seen whether the operations are a financial success. By the provisions of the Education Amendment Act, 1921-22, the expenditure of moneys from the Rebuilding Fund is restricted to works approved by the Minister ; and in order to provide increased amounts for buildings during the present period of financial stress that fund is made available for expenditure in connection with new buildings. Every Board had a cash credit balance at the end of the year, the balances ranging from £12 to £43,742 and totalling £94,389. When the amounts owing to and by the Boards are taken into account the total credit balance becomes £187,000, of which sum £134,000 constitutes the Rebuilding Fund referred to above. Education Reserves. The Education Reserves Amendment Act of 1914 provides for the revenue received from primary-education reserves to be paid by the Receiver of Land Revenue into the Public Account to the credit of a special deposit account called " The Primary Education Endowments Deposit Account." The moneys so received are applied without further appropriation than the Act mentioned towards the payment of amounts charged on the Consolidated Fund for the purposes of primary education. The revenue from this source during the year 1921-22 was £88,135. Kindergarten Schools. The Education Act does not provide for the establishment of State kindergarten classes, except in the case of practising schools attached to the four teachers' training colleges, in each of which a kindergarten class of not more than forty pupils may be included. Kindergarten schools under the control of free kindergarten associations are, however, conducted at five centres, the average attendance for 1921 being 734. The Government pays a subsidy of £l ss. to the pound upon moneys raised by voluntary contribution for the maintenance of these schools up to a limit of £3 2s. 6d. per head of the average attendance, the total amount paid on this account in the year 1921-22 being £2,310. In addition, a pound-for-pound subsidy is paid on moneys raised for buildings, sites, or initial equipment for the schools ; the sum paid in this manner for the last financial year being £381.