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Savings-banks.—No savings-banks have been established. Neither Committees nor teachers seem to look favourably upon them, but for what reason does not appear. The training of children in habits of thrift ought to be considered as an essential part of school education, and the Board yet hopes to see savings-banks established in some of the larger schools of the district. Pupil- teachers.—The Board regrets that nothing has been done to assist those pupilteachers who have finished their period of service in the schools under the Board. Representations on their behalf have already been made to the department, and from the reply received it was anticipated that a grant would be made to the Board for the purpose of establishing Training College scholarships; but nothing has been done, and thus the only practicable mode of obtaining efficient teachers for this district has been closed.* Scholarships Examination.—The annual examination for scholarships was held in July. Only two candidates entered for Class A, and none for Class B. A scholarship of the annual value of ,£2O, and tenable for two years, was awarded to Harold Large, of the Napier District School, and he is now pursuing his studies at the Wellington College. The following is a list of the scholarship-holders under the Board.f The fewness of candidates for the scholarship examinations has led the Board to reconsider the regulations relating to scholarships, and they have been so modified that in future only one class of scholarships will be awarded, for which all children of school age may compete, and the subjects of examination will be those required to pass Standard VI., as stated in Regulation 7 of the Standard Regulations of the department. Income and Expenditure.—The income received by the Board as capitation allowance and inspection subsidy was £9,777 15s. 5d., which, added to .€99 3s. 4d., the balance on 31st December, 1881, gives a total income for the School Fund of £9,876 18s. 9d. The expenditure during the same period for salaries and payments to School Committees was £9,794 125., leaving a balance of £82 6s. 9d. to the credit of the School i'und. A detailed statement of income and expenditure for the year, together with the Inspector's and other reports, will be found appended. I have, &c, The Hon. the Minister of Education. J. D. Ormond, Chairman.

Statement of Receipts and Expenditure for the Year ending 31st December, 1882. Receipts. £ s. d. Expenditure. £ s. d. To Balance on 31st December, 1881— By Office staff, salaries ... ... ... 250 0 0 Building Account ... ... 915 9 5 Departmental contingencies ... ... 105 9 5 General Account... ... ... 118 8 0 Inspectors'salaries ... ... ... 500 0 0 Government grants for buildings ... 1,194 0 0 Inspectors'travelling expenses ... 150 0 0 Subscriptions and donations for build- Examination of pupil-teachers ... 51 15 2 ings ... ... ... ... 5 0 0 Teachers'salaries and allowances (includGovernment statutory capitation (£3155.) 8,101 3 4 ing rent, bonus, &c.) ... ... 7,948 13 8 Special capitation (55.) ... ... 293 13 9 Incidental expenses of schools— Scholarship grant (Is. 6d.) ... ... 62 10 0 Incidental expenses ... ... 877 10 9 Inspection subsidy ... ... ... 300 0 0 Ecnts of school-buildings ... ... 36 0 0 Grants for other purposes (Te Arai Railway fares of Te Aute children to School) .?. ... ... 12 10 0 Kaikora School ... ... 54 10 0 Payments by School Commissioners for Half costs of teachers' travelling primary education ... ... 1,067 18 4 expenses ... ... ... 1500 Other receipts— Insurance of school-buildings ... 71 4 6 For purchase of playground ... 515 0 0 Scholarships— Refund ... ... ... 1110 0 Paid to scholars ... ... ... 87 10 0 Deposits on contracts ... ... 20 0 0 Examination expenses ... ... 11 15 0 Dr. Balance of account on 31st December, School-buildings— 1882 (Building Fund Account) ... 597 5 4 New buildings ... ... ... 1,259 5 3 Improvements of buildings... ... 742 5 1 Furniture and appliances ... ... 351 13 0 Sites ... ... ... 460 0 O Plans, supervision, and fees ... 70 18 7 Deeds and advertising ... ... 66 15 4 Conveyance of apparatus ... ... 19 11 0 Other expenses— Deposit on contracts returned ... 20 0 0 Credit balance of account on 31st December, 1882 ... ... ... 67 11 5 £13,217 8 2 £13,217 8 2 H. Hill, Secretary. Examined and passed.—R. Macalister, Provincial District Auditor. [The sum of £14 15s. 4d. included in the original statement as a balance has been deducted from both sides.]

* Since the date of the Board's report arrangements have been made with the Wellington Board for the attendance of four pasßed pupil-teachers from Hawke's Bay District at the Wellington Training College. t Not reprinted here.