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6. District High Schools. Two district high schools as contemplated by the Act are much needed in Wellington City —one for boys and one for girls. Special grants of land and money would be required for these schools. The Board, in making these recommendations, are aware that sufficient primary school accommodation should first be provided. Still, the want of these schools, which would teach the elements of a more liberal education, is much felt. Good schools of the kind could be made almost, if not altogether, selfsupporting, if the first outlay for buildings could be got over. There is no public school in the Wellington or Wanganui District which can be looked upou as a district high school serving as a step from the primary school to the Wellington College; and the want of such schools will become daily more and more apparent. The Board therefore urge upon you the necessity of making due provision for establishing such high schools. 7. Examination and Classipication of Teachees. An examination of teachers for certificates, and of all pupil-teachers for classification, is held annually in the month of July. The report of the examiners on the results of the examination last July is attached. This report was confirmed and approved by the Board. It would be a great saving of labour and expense to the several Boards if one set of papers could be drawn up for the colony, and all teachers placed under one uniform classification. 8. School Books. Oeders and Regulations now in Foece. The information sought for by the Education Department under these headings will be found in the copy of the Eules and Regulations of the Board forming Appendix Gto this report. It is recommended that Collins's Series be substituted in the list for the Irish series, Nelson's being retained. 9. Eeceipts and Expenditure. The income of the Board from all sources has been £32,953 ss. 7d., and the total expenditure £34,010 16s. 5d., showing a debit balance of £1,057 10s. lOd. at the close of the year 1877. The amount of indebtedness, £1,057 10s. 10d., is derived from a debit balance of £1,732 Is. Bd. on the old account, less a credit balance of £674 10s. lOd. on the new account, as shown by the auditor's certificate. Item £5,026 10s. 10d., by balance on the expenditure side of the accounts, is made up of the original amount of overdraft at the bank (£5,000), plus the amount of debit balance at the end of 1876 (£26 Is. 10d.). Item £3,506 Ss. on the side of income represents a sum paid by Government as a compensation for the loss of rates. Item £96 15s. sd. is the amount of arrears of rates collected. A sum of £75 appears on tho expenditure side of the account as a payment to the Trust and Loan Company to form an insurance fund. The Board thus insures its own buildings by depositing a certain sum annually as a sinking fund. The total amount at the end of the year to the credit of this fund was £462 18s. 3d. 10. Education Eeseetes Fund. A separate balance-sheet of receipts and expenditure of the Board for the year in respect of education reserves will be found in Appendix H. The whole available income from this source amounts to £197 18s. 4d. only. 11. Scholarships. The Board is very badly endowed with scholarships. The Governors of the Wellington College offer four scholarships affording free education to boys from the primary schools. The following scholarships have been awarded by them : — December, 1875 ... ... ... ... William Field, Aramoho School „ 1876 ... ... ... ... Joseph Ludwig, Thorndon „ „ „ ... ... ... ... Kenneth Webb, „ „ „ 1877 ... ... ... ... Eeginald Greville, ~ „ „ „ ... ... ... ... William Callaghan, ~ „ „ „ ... ... ... ... William Riddler, „ ~ The Governors of the College, finding that the leading candidates for the past two years have been close upon each other in marks obtained, and that they are all candidates from Wellington City for whom boarding would not be required, have generously admitted more than the number of scholars originally allowed. The scholarship is held until the scholar reaches the age of sixteen. The subjects of examination and other particulars will be found in the regulations of the Board. 12. Inspector's Repoet. The report of the Inspector on the work of the schools will give all other information touching the condition and working of the schools which this Board thinks necessary to furnish for your information. I have, &c, C. J. Phaeaztn, The Hon. the Minister of Education, Wellington. Chairman.