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strong interest in athletic sports, which the Governors think is a very desirable qualification in the master of a public school. . _. A considerable sum has been expended during the year—about £400—m building a_ concrete water-tank, together with new baths and other improvements and alterations, at the Boys' College; and other exceptional expenses, amounting to a further sum of about £200, have been incurred. The Governors cannot conclude this report without referring in grateful terms to the generous contribution made by Miss Edger to the college funds by the appropriation of £30 per annum for two additional scholarships in the Girls' College. The audited accounts of both colleges for the year 1886, together with a comparative statement of the rolls for 1885 and 1886, and a schedule showing the number, value, and present position of the scholarships connected with both colleges, are appended to this report. By order of the Council of Governors. Oswald Curtis, Secretary.

2. Statement of Eeoeipts and Expenditure, Nelson College, for the Year ending 31st December, 1886. Receipts. £ s. d. Expenditure. £ s. d. To Balance at beginning of year .. 378 90 By Office—salary .. .. .. 200 0 0 Current income from lands .. .. 451 6 6 Other office expenses .. .. 45 6 0 Interest on moneys invested .. .. 916 0 3 Teachers' salaries and allowances .. 1,549 18 3 School fees .. .. • • • • 835 16 6 Boarding-school account .. .. 952 10 0 Boarding-school fees. . .. .. 1,359 8 7 Examiners' fees .. .. .. 11 11 0 Refunds .. .. • ■ • ■ 267 14 11 Scholarships and exhibitions .. .. 282 10 0 Stationery ' 33 7 6 Prizes, printing, stationery, and advertising .. .. .. .. 101 8 2 Light (cleaning and fuel included in boarding account) .. .. 43 5 5 Temporary advances.. .. .. 100 0 0 Fencing, repairs, &c. .. .. 413 10 9 Insurance and taxes .. .. .. 106 10 3 Furniture .. .. .. .. 67 19 0 Travelling expenses (Principal, from England) .. .. .. 103 12 9 Sundries not classified .. .. 114 14 2 Balance at end of year .. .. 149 7 6 £4,242 3 3 £4,242 3 3 Auditor's certificate attached to accounts as kept in the college books. Printed copy herewith. Oswald Curtis, Secretary.

3. Statement of Eeceipts and Expenditure, Nelson College for Girls, for the Year ending 31st December, 1886. Receipts. £ s. d. Expenditure. £ s. d. To Grant from vote of the General As- By Dr. balance at beginning of year .. 2,523 11 3 sembly .. .. .. 500 0 0 Office—salary .. .. .. 100 0 0 Paid by School Commissioners .. 206 0 0 Other office expenses .. .. 30 0 0 School fees .. .. .. .. 1,119 9 2 Teachers' salaries and allowances .. 998 8 2 Boarding-school fees .. .. 399 13 0 Boarding-school account .. .. 583 411 Dr. balance at end of year .. .. 2,663 17 10 Examiners'foes .. .. .. 7 7 0 Scholarships .. .. .. 30 0 0 Printing, stationery, and advertising .. 83 3 11 Cleaning, fuel, light, &a. .. .. 36 17 0 Purchases and new works .. .. 31 16 9 Fencing, repairs, &c. .. .. 20 6 0 Rents, interest, insurance, and taxes .. 418 2 9 Auditors' fees .. .. .. 5 5 0 Furniture .. .. .. .. 20 17 3 £4,889 0 0 £4,889 0 0 Oswald Curtis, Secretary.

4. Work op Highest and Lowest Forms, Nelson College. Highest Form. —Latin : Virgil, Mr\. IV. and VI.; Livy, Book XXII. (part only) ; composition, and unseen translation. English: Grammar, composition, Pope's Essay on Man. Mathematics : Arithmetic, algebra, Euclid, trigonometry, statics. French: Translation, grammar, and composition. History : William 111. to death of George 111. Lowest Form. —Latin : Principia Latina, Part 1., to passive voice. English: Composition and analysis. Geography : British Isles, Australia, and New Zealand; general physical. Arithmetic : To decimals.

5. Work of Highest and Lowest Forms, Nelson College for Girls. Highest Form. — Arithmetic: General subject. Algebra: To binomial theorem. Euclid: First six books. Trigonometry :To solution of triangles. Latin: Virgil's ißneid, Books XL and XII.; Livy, Book I. (part) ; grammar and composition : Roman history. English: Study of modern literature, Mrs. Browning and Tennyson, Shakespeare's Tempest and King Lear, Morris's Elementary Historical Grammar; essays, writing, parsing, and analysis. English History : From William 111. to accession of Victoria. Geography : Physical and political of North America and of New Zealand. French : Bossuet's Funebres Oraisons, Moliere's Le Misanthrope, grammar, and composition. German : Act I. of Schiller's Maria Stuart, parts of Otto's German Grammar.