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3. Statement of Assets and Liabilities at 31st December, 1886. Assets. £ s. d. Liabilities. £ s. d. Petty cash in hand .. .. .. 2 8 6 Overdraft at Colonial Bank of New Zealand 222 1 9 Bents uncollected .. .. .. 362 9 0 Loan on mortgage .. .. .. 3,500 0 0 Fees uncollected.. .. .. .. 175 6 6 Scholarship Fund .. .. .. 100 0 0 Deferred-payment balances .. .. 656 16 0 Salaries .. .. .. .. 74 10 0 John Reid, Chairman. George Sumpter, Secretary and Treasurer. The items petty cash, rents and fees uncollected, and deferred-payment balances on debit side, and overdraft, loan, and scholarships on credit side, are correctly stated.—H. Livingston, Auditor.

4. Work of Highest and Lowest Forms. Highest Form. —Latin : Virgil's iEneid, Book V.; Smith's Principia, Part 11. (all); Bradley's Arnold, Exercises 1.-XXVH.; Public School Primer. Arithmetic: Text-books, Brook Smith and Hamblin Smith (all). Algebra: Text-books, Hall and Knight, and Hamblin Smith, to problems on fractional simultaneous equations. Euclid: Text-book, Hamblin Smith, Books 1.-VI. Trigonometry : Measurement of angles, trigonometrical ratios, easy formulas, and equations involving them. French: Moliere's Bourgeois Gentilhomme, Femmes Savantes; La Fontaine's Fables (Macmillan's edition); Chardenal, Parts I. and II.; Blouet's translations into French ; French repetition. English: Gardiner's History (all), Bain's Higher English Grammar (all), weekly essays, Horton's History of the Romans, Clarke's Geography (all), repetition from Milton (700 lines), Geikie's Physical Geography, political economy. Mechanics: Text-book, Balfour Stewart's Physics, composition and resolution of forces; simple machines, motion of falling bodies, and elementary hydrostatics. Lowest Division. —Latin: Cook's Latin Course, 1-50; Via Latina, Exercises 1-20. French: Chardenal, Part 1., Exercises 1-110. English : Hall's Grammar ; Gardiner's History, First Period. Petrie's»Geography (with maps). Mathematics : Hamblin Smith's Algebra (to division) ; Euclid, Book 1., Propositions 1-22; arithmetic, miscellaneous.

5. Scholarships held during the Last Quarter of the Year. School: Five of £10 10s. Jones : One of £10 10s. Besiclents : One of £10 10s. Shrimski : One of £10 10s.

6. Report of the Inspector-General of Schools to the Hon. the Minister op Education. Waitaki High School (17th November, 1886). —The staff here is not a large one, but the instruction is very good. The tone and discipline seem to be quite satisfactory, and I observe a decided improvement in the attainments of the pupils, who are quite as far advanced as could be expected, considering that the school is of recent foundation.

OTAGO HIGH SCHOOLS. 1. Report of the Board. Sir,— Dunedin, 12th April, 1887. In accordance with section 8 of "The Otago Boys' and Girls' High Schools Act, 1877," and in terms of your circular dated Wellington, the 30th December, 1886, I have the honour to forward herewith the report of the Board of Governors of the Otago Boys' and Girls' High Schools for the year ended the 31st December, 1886. The Board has pleasure in reporting that the work of the schools has been carried on satisfactorily during the year, and that, notwithstanding the commercial depression, the attendance in both schools shows signs of a steady increase. With the view of extending the benefits of the schools, the Board gave during the year free education to thirty-six holders of Education Board's scholarships, and also to fifteen competitors for Education Board's senior scholarships who gained 50 per cent, of the attainable marks. Owing to a large decrease in its revenue, consequent on the non-payment of pastoral and perpetual-lease rents, the Board was during the year reluctantly compelled to make reductions in the number of, as well as in the amount of salaries paid to, its teaching staff, by which an annual saving of £1,058 was effected. In order to be empowered to reduce rents where deemed advisable, the Board has taken advantage of " The Public Bodies' Leaseholds Act, 1886," by becoming a leasing authority in terms of that Act; and it is now in treaty with several of its tenants for a readjustment of their rents on an equitable basis. The Board has to report that at the commencement of the year 1886 the holder of the Gray Russell Scholarship failed to pass the necessary examination, and consequently it was not awarded. A number of candidates have now signified their intention of entering for it this year, and considerable competition is anticipated. The particulars asked for in your circular before referred to were posted on the 7th instant, and an audited copy of the statement of receipts and expenditure will be forwarded in the course of a few days. I have, &c, The Hon. the Minister of Education, Wellington. D. M. Stuart, Chairman.

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