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Statement of Receipts and Expenditure for the Tear ended 31st December, 1880. Receipts. £ b. d. Expenditure. £ s. dTo Balance from 1879 ... ... ... 105 13 4 By Printing and advertising ... ... 214 6 School Commissioners, Auckland... ... 85 11 3 Balance at Bank of Now Zealand ... 188 10 1 £191 4 7 £191 4 7 I hereby certify that I have examined the above statement, and that I find it to be correct. 3rd February, 1881. L. A. Durrieu, Auditor.

WANGANUI INDUSTRIAL SCHOOL. Head Mastee's Repoet to the Teustees. My Loed and Gentlemen, — I have the honor to inform you that on this occasion I only intend to include (with your permission) in my annual report the work which has been done during the six months ending 30th June, 1880. Ido so, because, having written a lengthy and exhaustive account last March, of the general arrangements in connection with the school and the work done by it, for the information of the Trustees and the General Synod, I scarcely think it necessary to recapitulate the facts therein contained. During the last six months the number of boys on the school roll amounted to 26, out of which number 25 attended daily. The class of work generally, I am very pleased to say, has much improved, i.e., the work accomplished has been of a much higher order of merit than that done during the corresponding terms of last year (1879). This has been more particularly noticeable in English subjects: History, geography, essay writing, mapping, grammar. This fact wras made very apparent at the last midwinter examination, when the boys at the head of the list obtained nearly full marks in almost all the above-mentioned subjects. Comparing the papers set and the answers obtained with those of 1879, the masters of the school are decidedly of opinion that the work has been of a successful character. In mathematics, during the past six months, the fourth form have read the first two books of Euclid and as far as the twentieth proposition of the third, and appeared, from the results obtained at the recent examination, to have acquired a fair grounding in the greater part of the work read. In the third form, all the boys (8), with two exceptions, obtained three-fourths marks on their paper, which included propositions I—2o, Book I. In the second form one boy, Wicksteed, obtained full marks, and four others obtained within eight marks of the maximum number. Arithmetic has been very carefully treated, and already I see the signs of improvement in the general work; although I cannot say that all the boys are making the same steady improvement that a few are certainly doing. This branch of the school-work is nearly always found to be slow of development, and, in order to encourage the boys to make progress in this particular study, the masters have set arithmetical problems for home work, and have found this plan answer satisfactorily. Algebra is taught twice a week, and the boys at the head of this class have been reading as far as the problems relating to equations of one unknown quantity. In classics the work has been of a varied character. The fourth form have read the second book of Caesar, a few Odes of Horace, and about 250 lines of __Eneid, Book 11. A marked improvement is found in the syntactical knowledge, and the masters regret that more time cannot be found for taking the separate classes in the Latin authors. The lower forms showed, at the recent examination, that they understood the elementary parts of the Principia as far as the end of the active voice. Indeed, the chief difficulty that exists appears to lie in the fact that, after the boys have left the supervision of the masters in school, they find the time which they ought to occupy in preparing their school-work for the following day taken up, by either helping their parents in their pursuits or in some other way ; the result is that careful preparation is rarely obtained. On the whole, lam pleased with the work done. The boys themselves seem to have taken a fresh interest in their studies, and this in itself has caused the masters much gratification. I may take this opportunity to state that during the past six months, I have made arrangements whereby I receive pupils residing at a distance as boarders in the schoolhouse. There are five at present. The space is very limited, and, as I have had direct applications for three more boys recently, and inquiries have been made respecting two others, I feel it necessary to state that unless some extension takes place I shall be compelled to refuse these latter applicants. The Right Reverend the Lord Bishop of Wellington, I have, &c, Wellington. G. R. Saunders.

Receipts and Expenditure for the Tear ending 31st December, 1880. Receipts. £ s. d. Expenditure. £ a. d. To Rents ... ... ... ... 686 6 9 By Salaries ... ... ... ... 544 1 8 School fees ... ... ... ... 171 5 0 School porter ... ... ... 26 0 0 Prizes, &c. ... ... ... ... 19 0 6 Borough rates ... ... ... 17 4 0 Law costs ... ... .., ... 24 15 6 Advertising, printing, stationery, __c. ... 18 7 6 Insurance ... ... ... ... 9 12 6 Repairs ... ... ... ... 19 12 4 Interest ... ... ... ... 20 14 8 Sundries ... ... ... ... 0 5 8 E. Churton's commission on £857 10s., at 5 per cent. ... ... ... 42 17 6 Balance ... ... ... ... 114 19 11 £857 II 9 £857 ,11 9 Edwaed Chueton, 24th February, 1881. Attorney to Trustees.