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WAITAKI HIGH SCHOOL. 1. Seceetaey's Eepoet. Sir,— Oamaru, 4th March, 1886. I have the honour to forward herewith the annual report of the Waitaki High School. As was anticipated last year, the numbers of the school have continued to increase steadily term by term. They now stand at fifty-eight, as against forty-eight for last year. Tho numbers at the beginning of next session—judging from the applications received—will stand at about seventy boys, and there is no reason to suppose that the increase of numbers which has continued every term since the school was opened will be checked. Tho growth of the attendance has enabled the Board to make two additions to the staff. Mr. Sidney Gilbert, of King's College, London, has taken the duties of house master and tho English work of the second and third divisions. He has also taken the lower half of the school in chemistry and drawing. The partition of the school into three divisions has greatly improved the progress of the boys ; but one more master at least is necessary for the complete graduation of tho school. M. Ledez has undertaken the French work of the two highest divisions. He is a good disciplinarian, and has shown energy and skill in his teaching. Botany, geology, physical geography, and physics have been taught by Mr. Gifford, the latter subject with the help of apparatus procured from England. The average age of the lowest division is over thirteen years, of the Second Division fourteen years eleven months, and of the highest division sixteen years. Two excellent fives courts have been built to the south of the main building. They have been paved with asphalt, and are in constant use. Some gymnastic apparatus has also been put up, and tha boys are now able to occupy themselves during the intervals and dinner hour, much to the advantage of tho tone of the school. The cadet corps has made very good progress under the care of Sergeant Macpherson, and the members have won their share of the prizes offered by the Government to the cadets of the district. If the numbers of the school continue to increase a large schoolroom will be required, in which all the school can be assembled for public purposes. In the daytime it could be divided into class rooms, and it would thus fully provide for some seventy more boys. The health of the school has been excellent. I have, &c, Tho Secretary, Education Department. Geoege Sumptee, Secretary.

2. Statement of Eeceipts and Expenditure for the Year ending 31st December, 1885. Receipts. £ s. d. Expenditure. £ s. d. To Balance in hand and in bank at beginning By Balance at beginning of year .. .. 275 16 3 of year .. .. .. .. 0 7 9 Office—Salary .. .. .. 15 0 0 Grant from vote of the General Assembly 500 0 0 Other office expenses .. .. .. 17 16 4 Reserves sold .. .. .. .. 240 0 0 Teachers' salaries and allowances .. 927 19 4 Current income from reserves .. .. 711 5 8 Printing, stationery, and advertising .. 36 19 6 Interest on Endowment Account . .. 7G 5 0 Cleaning, fuel, light, &c. .. .. 67 9 5 School fees .. .. .. .. 452 6 6 Book and stationery account and other Books, &0., sold, and other refunds .. 71 IS 1 temporary advances .. .. 81 910 Building Society's debentures withdrawn 379 11 11 Works .. .. .. 215 6 6 Fencing, repairs, &c. .. .. .. 119 11 2 Rents, insurance, and taxes .. .. 28 17 8 Interest on current account .. .. 10 9 8 Expenses of endowments .. .. 6 3 6 Interest on loan on school buildings .. 280 0 0 School appliances .. .. .. 24 0 0 Balance in hand and in bank at end of year .. .. .. 324 15 9 £2,431 14 11 £2,431 14 11 H. J. MILLEE, Chairman. Geoege Sumptek, Secretary. I have compared this abstract with the treasurer's book and vouchers, and I certify it to be correct. —H. Livingston, Auditor. Note. —At last audit I left a printed form of school roll, to furnish a means of ascertaining the amount of uncollected fees, and asked the Chairman to get it filled in. This was not done, and consequently that part of the accounts cannot be audited. I will supply another form, and I trust it will be used during the current year. There is no available check on the amount received from sale of school books. I may mention that the practice of the other high schools in Otago is to make the pupils procure their books direct from the bookseller,—H. L.

3. Statement of Assets and Liabilities at 31st December, 1885. Assets. £ s. d. Liabilities. £ s. d. Cash in Colonial Bank .. .. .. 322 410 Loan on mortgage .. .. .. 4,000 0 0 Petty cash in band .. .. .. 210 11 Home Commissioner, re headmaster .. 212 16 0 Bants uncolleoted .. .. .. 394 15 0 Salaries .. .. .. .. 74 10 0 Fees uncollccted, per Rector's returns .. 207 1 0 Scholarship Fund .. .. .. 100 0 0 Deferred-payment balance .. .. G'JC 16 0 School buildings Reserves vested in Board by " Waitaki High School Act, 1878 " £ £ The items, "Cash in hand," "Bank," "Bents uncollected," " Deferred-payment balances," " Loan on mortgage," and " Scholarship Fund," are correctly stated.—H. Livingston, Auditor.

4. Eepoet of the Inspeotoe-Geneeal to tho Hon. the Ministeu of Education. Qamaru) Waitaki High School. —lnspected 7th December. The school examination was going