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£ s. d. Note.—Arrears of fees from 1886 .. .. .. .. .. 175 6 6 First term of 1887 .. .. .. .. .. .. 142 16 0 Second term of 18S7 .. .. .. .. .. 134 8 0 Third term of 1887 .. .. .. .. .. 118 6 0 570 16 6 Collected in 1887, less scholarship £10 .. .. .. 324 6 0 Uncollected, 31st December, 1887 .. .. .. .. £246 10 6 Accompanied by detailed statement of rents due and incomplete purchases; the latter not including interest due and overdue. The expenditure is not all in the minutes. —H. Livingston, Auditor.

3. Statement of Assets and Liabilities at 31st December, 1887. Assets. £ s. d. Liabilities. £ s. d. Cash in bank and in hand .. .. 46 4 1 Loan on buildings .. .. .. 3,500 0 0 Eents unoollected .. .. .. 287 10 3 Scholarship lund .. .. .. 100 0 0 Pees uncollected, boys .. .. .. 246 10 6 Salaries .. .. .. .. 74 10 0 Fees uncollected, girls .. .. .. 7 2 2 Deferred-payment balances .. .. 556 16 0 School buildings. Eeserves vested in Board by " The Waitaki High School Act, 1878." Wm. Chbistie, Chairman. Geobge Sumptee, Secretary. The items cash in hand and bank, rents uncollected, deferred-payment balances, fees uncollected, loan, scholarship, and salaries, are correctly stated.—H. Livingston, Auditor.

4. Woek of Highest and Lowest Classes. Highest. —Latin : Cicero, De Officiis, Book I.; Horace, Odes, Book 1., and Ars Poetica; Smith's Principia, Book 11., pp. 1 to 79 ; Bradley's Arnold, pp. 1 to 79 ; Simpson's Caasarian Prose, Public School Latin Primer. French : Chardenal's Second Course, all; Chardenal's Advanced Course, to Ex. 30; La Fontaine's Fables (Moriarty's cd.). English: Bain's Higher English Grammar, Clarke's Geography, Gardiner's English History, Bansome's English History, Horton's History of the Eomans. Mathematics: Arithmetic, general (textbook, Hamblin Smith); algebra to quadratics (textbook, Hamblin Smith) ; trigonometry to ratios of multiple angles; (textbooks, Lock and Todhunter's). Mechanics: Elementary dynamics, statics, and hydrostatics. Science: Botany, Hooker's Primer; Thome's textbook, and practical work. German: Emil Otto's Course. Lowest.— Science: Botany, Hooker's Primer, and practical work. Latin: To Ex. 84, Macmillan's Latin Course. French: To Ex. 144, auxiliary verbs, three conjugations. English: History, Second Period, Gardiner; Geography, to p. 81, Petrie; Grammar, Hall's, to Ex. 62. Arithmetic : Square root, discount and present value, compound interest, and problems. Algebra : To fractions. Euclid, Book 1., Props. Ito 25. Drawing : Freehand.

5. SCHOLAESHIPS HELD AT THE SCHOOL DUBING THE LAST QuAETEE OF THE YEAB. School. —At £10 10s., 6 (free education). Residents.—kt £10 10s., 1.

6. Eepobt op the Inspectob-Geneeal of Schools to the Hon. the Ministeb of Education. WaitaM High School, 28th September. —The pupils in this school have a good opportunity of acquiring sound knowledge. I am glad to notice that a good beginning has been made in the collection of specimens for a school museum.

OTAGO HIGH SCHOOLS. 1. Bepobt of the Boaed. Sib,— Dunedin, 4th April, 1888. In accordance with section 8 of " The Otago Boys' and Girls' High Schools Act, 1877," and in terms of your circular dated the 12th December, 1887, I have now the honour to forward herewith report of the Board of Governors of the Otago Boys' and Girls' High Schools for the year ended the 31st December, 1887. I am pleased to report that the attendance in both schools has shown a steady increase, and also that the general work has been carried on satisfactorily during the year. The continued depreciation in the value of pastoral as well as agricultural produce has compelled the Board to make further reductions in the salaries of its teaching staff. The retrenchment thus effected amounts to £543 per annum, which, with a similar retrenchment of £1,058 in 1886, will, it is hoped, enable the Board to keep its expenditure on a level with its income, unless, indeed, a further shrinkage in revenue is experienced. I may add that the Board has also found it necessary to raise the school fees from £8 to £9 10s. per annum. The reduction in salaries and increase in rate of school fees came into operation at the commencement of the present year.