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Details of expenditure:—Office Staff: Former Secretary, £33 6s. Bd. ; half of conjoined offices of Secretary and Inspector, £250 ; clerk, £187 10s.; messenger, £20 : total, as above, £490 16e. Bd. Departmental Expenses : Office furniture, £18 10s. 9d.; printing, £116 4s. 9d. ; advertising, £94 4s. 10d.; stationery, £54 19s. 2d.; audit of accounts of former Board, £15 155.: total, as above, £299 14s. 6d. School-buildings: New schools, £1,601 17s. 4d.; enlargements and improvements, £3,596 2s. Id.; purchase of sites, £617 25.; schoolhouse rents, £77 ss. lOd.: total, as above, £5.892 7s. 3d. Total of statement, as above, £27,175 4s. lOd; Public Libraries Account, £556 75.: total of Board's audited statement, £27,731 lis. lOd.

Assets and Liabilities upon 31st December, 1878.

HAAVKE'S BAY. Sic, — Board of Education, Napier. In accordance with section 102 of the Education Act, the Board of the Education District of Hawke's Bay has the honor to submit its report upon the general working of the Education Act in this district for the year ending 31st December, 1878. Board. —The following are the names of the members of the Board : Miss Herbert; R. Harding, Esq.; S. Locke, Esq., R.M.; G. E. Lee, Esq.; J. D. Ormond, Esq., M.H.E. (Chairman) ; Captain Russell, M.H.R.; F. Sutton, Esq., M.H.E.; Rev. D. Sidey ; J. N. Williams, Esq. At the election of members in April last Henry Kenrick, Esq., R.M., was one of the successful candidates, but, Mr. Kenrick having resigned immediately afterwards, Mr. Locke was elected to the vacancy. Seventeen meetings have been held by the Board during the year, at which ninety-seven attendances were made by all the members present at all. The average attendance at each meeting was 5"7. District.—The powers of the Board are limited by the Act to the Counties of Cook, Wairoa, Hawke's Bay, and Waipawa, embracing an area of 8,578 square miles, and possessing a European population of about 19,000 persons. During the year several changes have taken place in the extent of the district, and the number of schools under the control of the Board. In April, the schools in the Cook County—viz., Gisborne, Matawhero, Ormond, and Frazertown —and formerly connected with the Auckland Board, were transferred to this Board in accordance with the Second Schedule of the Act; and since June the denominational schools in the district have received no Government subsidy, and have consequently ceased to be under the supervision and inspection of the Board. Schools. —There are thirty-one schools in active operation in the district: of these, four are subsidized schools, but they are subject in every respect to the regulations and supervision of the Board. During the year the Woodville aud Ormondville Schools have been opened in temporary buildings to meet the pressing wants of those districts. The schoolhouse at Ongaonga, which was closed in the early part of the year, has been reopened as a subsidized school, and is at present under the charge of a mistress. Buildings under Contract, etc. —Great efforts have been made by the Board during the past few months to supply with school buildings a number of districts where school accommodation is urgently needed. According to the number of children in the district, and compared with the present school space, it is estimated that accommodation will be required for about 2,000 children. No new schools have been completed, but schoolhouses are being erected at Napier, Clive, Taradale, Waipawa, Takapau, Woodville, and Matawhero, which, when completed, will afford accommodation for 1,000 children. Plans are also in preparation for schools at Port Ahuriri, Gisborne, Te Aute, Ormondville, Blackburn, Makaretu, and AVainui, which will provide accommodation for about 600 children. It is expected that by the end of June, 1879, all the contracts for schools will have been completed, and due provision made in those districts requiring the most urgent attention of the Board. Expenditure on School Buildings.—The amount expended on the purchase of sites for schools and school buildings for the year was £2,759 6s. 4d., but this amount only shows progress payments on buildings which are Bearing completion. The Building Fund schedule of accounts will show the various items connected with this expenditure. School Attendance. —The great changes in the district, aud tho unsuitability of the temporary buildings hired for school purposes, have affected greatly the attendance at the schools. The summarized quarterly attendance returns in the Appendix will show the number in attendance at the schools for the four quarters ending 31st March, 30th June, 30th September, and 31st December, 1878. It will be seen that the numbers attending the district schools show a gradual increase on each previous quarter, and when the new schools are opened it may safely be predicted that a large influx of children will find their way'into public schools. The number of children actually attending the district schools on the 31st December is stated in the returns to be 1,985.

Assets. lalance of building grant for financial year ending 30th June, 1879, not yet drawn... lalance at Bank, 31st December, 1878 £ s. d. 5,000 0 0 2,094 10 2 Liabilities. Balance due for purchase of school site iu Sydney Street Contract for Mungaroa School ... Payments due to School Committees for quarter ended 31st December, 1878 Balance of contract for additions to Mount Cook Girls' School Balance of contract for erection of new school at Opaki Purchase of site for school at Tawa Flat Sundry repairs to school properties £ «. d. 1,650 0 0 265 0 0 400 0 0 220 0 0 95 0 0 100 0 0 41 0 0 £7,094 10 2 Legal expenses* £2,771 0_0 £362 17 6 >eposit at Trust Loan and Investment Company £486 18 7 Legal expenses do not include the plaintiff's costs at the trial—the account for which has not yet been received.—C.J.P.