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Ages and Standards of Pupils.—ln the Appendix will be found a return of children of certain ages, the standards for which they were being prepared, and the number receiving instruction in each subject prescribed by the Act. The report of the Inspector of Schools will give more specific information on these subjects. Scholarships.—No scholarships were awarded by the Board during the past year. The only scholarships held were given by the College governors from the proceeds of moneys standing over from a public savings bank account. These moneys were placed in the hands of the College governors to found primary scholarships. These scholarships are awarded to boys of the age of twelve years and upwards, and are tenable to the age of sixteen years. The following scholarships were held during 1878: Charles Pownall aud Louis Barnett, Thorndon School; and Samuel Knight, Lower Hutt School. Training School.—This Board has considered, at several meetings, tho question of the establishment of a normal school. A letter was received from the Education Department in May last, stating that £1,000 would be at the disposal of the Board for a training school. The Board wish that this sum may be used for the purpose of erecting a lecture-room and teachers' library room on a section of land in Thorndon, recently acquired by the Board. If the Government will make a sufficient grant next year, the Board will appoint a normal master, and at once commence the work of normal training. The necessity of this work, and further suggestions on the matter, are more fully treated of in the Inspector's report. School Inspection.—A very full report of the state of education in this district for the past year will be found in the report of the Inspector of Schools attached. Rules and Regulations.—The rules and regulations of this Board have been thoroughly revised during the past year. A list of books in use is included in the rules and regulations. Libraries. —No school or public libraries are established in connection with the Board. School Districts. —The Board have during the past year divided the whole of the education district iuto school districts, and fixed their boundaries ; and School Committees have been elected for each district, in terms of the Act. A map has been made showing the boundaries of the districts. Examination of Teachers. —An examination of teachers for third-class certificates only, and for all pupil-teachers for classification, was made in July last. In Appendix No. 7 will be found a report of the examiners, and copies of the papers set. Suggestions for Amendment of the Act. —The Board wish to call the attention of the Government to the case Doherty v. the Education Board, and to append a copy of the judgment given in the case. The decision in this case has involved the Board in the payment of very heavy costs ; and, in order to avoid the risk of a similar one occurring again, which is always possible as the Act now stands, it is, in the opinion of the Board, advisable that an amendment should be made in the clause providing for dismissal of teachers. They would suggest the addition of the word " insubordination " after the words " immoral conduct," in clause 47, so that the latter portion of the clause would read as follows : " Nothing contained in this Act shall preclude or prevent the Committee from suspending, and the Board from peremptorily dismissing, any school-teacher for immoral conduct, insubordination, or gross misbehaviour." The Board would also draw the attention of the Government to clause 77, which provides for the acquiring of school sites "on the application of the Committee." If this is read (and it seems the only construction) to mean that there is no power to purchase except after such application, it is obviously a matter which requires amendment, as the Board, recognizing it to be one of its principal duties to provide the necessary schools, may often find it advisable to acquire sites without having previously received such application. The Board would also request the Government to take into consideration the advisability of providing that the Inspectors shall be appointed by, and be under the direct control of, the Education Department instead of the Boards; it being, in the opinion of this Board, very desirable that the schools under their control should be subject to inspectiou by au officer entirely independent of themselves. Conference.—The Board recommend that the Government should invite a conference of the Chairman of the Education Board and the Chairmen of School Committees, iv order that any points of " The Education Act, 1877," which appear to them uncertain, or capable of improvement, may be brought before the notice of the Government. I have, &c, The Hon. the Minister of Education. C. J. Pharazyn, Chairman.

General Statement of Income and Expenditure for the Year ended 31st December, 1878.

Income. £ s. d. 'o Balance on lst January, 1878 ... ... 674 10 10 Grants from Government —General ...15,289 7 11 „ „ Buildings ... 8,000 0 0 Net receipts from education reserves ... 238 19 0 Arrears of rates and fees collected ... 318 18 1 Incidental Receipts— Refund, teachers' salaries... ... 2134 „ half cost of fencing ... 3 13 6 „ tracing supplied to Wanganui... 110 School requisites —transfer ... 1 6 11 Rent of school site ... ... 15 0 0 Sale of school site ... ... 20 0 0 Rees Bequest Fund ... ... 2,591 4 3 Expenditure. £ s. d By Balance, Bank of New Zealand, old account 1,732 1 I Office and Board — Staff ... ... ... 490 16 I Allowance to members of Board ... 39 3 I Departmental expenses ... ... 299 14 I Inspection—Salary (half) ... ... 250 0 I ,, Travelling expenses ... 142 3 I Teachers'salaries and allowances ...12,930 16 I Committees, for educational purposes ... 460 7 I Insurance of buildings ... ... 47 5 ! Buildings—Works, &c. ... ... 5,892 7 I „ Plans, supervision, etc. ... 234 2 I Sundries —Commission on rates and fees ... 16 10 I ,, Interest ... ... 1 8 H „ Balance Rees Bequest ... 2,543 17 I Balance in hand ... ... ... 2,094 10 I £27,175 4 1< £27,175 4 10