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Penny Banks.—The circulars issued by the Department in reference to Penny Banks called forth no response from the school committees. The Te Aro Penny Bank, long established, and entirely independent of the Board, is the only one in operation. District High School. —Applications made to the Department for constituting the Terrace and Featherston Schools District High Schools, have been met with the reply that the matter should stand over for the report of the Commission on higher education. Normal School. —The new Normal School containing students' lecture room, school of art, class room, and laboratory is nearly ready for opening ; and the room built as an educational museum for the colony is now available for the purpose. The Board are about to draw up rules and regulations for the conduct of the Normal School, and they are are desirous of knowing specifically what amount of grant will be available during the current year for salaries and maintenance. Buildings Required.—Particulars as to the building grant required have already been forwarded to you. Inspector's Report.—Touching matters indicated in your letter of the Bth December, information will be found in the report of the Inspector attached as appendix. School of Art.—A school of art class for teachers has been opened in one of the rooms of the Wellington Athenaeum during the present year, and instruction was given by the late Mrs. Holmes, a lady well qualified for the work. Her loss was a public one. The Board have continued the classes under the direction of her daughters ; but it is now found that only the pupil teachers and a few female teachers in charge of schools voluntarily attend. The new school of art room in the Normal School will give better facilities for the instruction of the classes. The cost of £100 per annum for salary has been allowed by the Department, to become a charge upon the vote for Normal training. I have, &c, The Hon. the Minister of Education. C. J. Pharazyn, Chairman.

General Statement of Receipts and Expenditure for the Year ending 31st December, 1879. Receipts. £ s. d. Expenditure. £ s. d. To Balances Ist January, 1879. Office and BoardMaintenance Account .. .. 132 11 6 Office staff, salaries .. .. 270 0 0 Special Buildings Grant .. .. 1,961 18 8 Departmental contingencies .. 803 4 7 Grants from Government — School Inspection— Statutory capitation (£3 155.) .. 13,857 3 9 Salaries .. .. .. 500 0 0 Grants to Committees (10s.) .. 1,847 12 6 Travelling expenses .. .. 162 6 4 Inspection subsidy .. .. 300 0 0 Teachers' salaries and allowances .. 12,880 17 2 Specially for buildings .. .. 11,800 0 0 School committees for educational purArrears of rates collected .. .. 150 0 0 poses _ .. .. .. 1,626 7 6 From Public Libraries vote .. .. 415 10 0 Scholarships, expenses of examinations .. 21 0 0 Arrears of school fees .. .. 6 17 0 Training of teachers .. .. 76 6 8 Eefund overpayment, teachers' salaries .. 0 10 0 Insurance of school buildings.. .. 37 17 6 Eents of school sites .. .. 66 16 6 School BuildingsSale of old building .. .. 34 4 0 New buildings.. .. .. 6,632 0 6 Deposits on contracts .. .. 148 14 0 Enlargement, improvements, and reOverdraft .. ... •• 378 3 7 pairs .. .. .. 1,591 810 School furniture and appliances not included in preceding .. .. 812 10 2 Purchase of sites .. .. 4,600 0 0 Plans, supervision, &c. .. .. 221 1 3 Library Committees, out of Public Libraries vote .. .. .. 415 15 0 Eents of school sites and buildings .. 238 7 8 Deposits on contracts .. .. 98 14 0 Standard prizes .. .. .. 19 12 10 Education reserves (moiety of fencing) .. 92 8 6 Commission on school fees collected .. 0 8 0 £31,100 _6 6 £31,100 6 6 C. J. Pharazyn, Chairman. Robert Lee, Secretary. Note. This Balance Sheet, with accounts, &0., duly passed examination by Mr. E. Macalister. Owing to absence on sick leave, his signature cannot now be obtained.—For Provincial District Auditor, P. W. Teli-okd.

Statement of Assets and Liabilities for the Year ending 31st December, 1879. maintenance account. Assets. Liabilities. £ s. d. N Overdraft .. .. .. .. 157 16 10 Grant to Committees for December quarter .. 447 12 6 £605 9 4