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Schools. —There were eighty-three schools in operation in this district during the last quarter of the year, and the difficulty of the Board's position in financing is exemplified in the fact that of these fifty-three had an average attendance of under fifty scholars, and of that number twelve were aided schools, whilst only one had an average attendance of over three hundred. The roll number for the last quarter of the year gave an attendance of 7,019, and the average was 5,275, being a result of 7515 per cent. The increase is disappointing, owing to the fact that epidemics have prevailed at some of the larger centres of population. Several additional country schools will shortly be opened. The Board has done everything in its power to aid the outlying districts by establishing schools in new and sparsely-settled localities, where the roads are too bad to permit of the children travelling any distance; and this also may in some measure account for the poor average attendance as compared with the roll numbers. All schools with an average attendance of under twenty are now rated as aided schools, and receive only the Government statutory capitation grant, the teachers in these schools being appointed by the respective School Committees upon the approval of the Board. With a view to economy, as well as increased efficiency in the teaching staff, the Board has attempted to amalgamate some of the small schools near Wanganui. Its efforts have not, however, as yet been successful, although the matter is still under consideration. School Districts. —New school districts have been formed at Momahaki (near Waverley), at Fitzherbert East, Kairanga, Pohangina, and Birmingham, and at these places good school sites have been secured. Buildings.—The Board's operations with regard to buildings have been much curtailed, owing to the very limited grant for the purpose placed at its disposal. A circular was consequently issued to all School Committees informing them that no works could be undertaken beyond the erection of, and actual repairs to, schools and residences. New schools have, however, been erected at Linton, Fitzherbert East, Birmingham, Kairanga, and Kaupokonui, besides a new residence at Stanway. Extensive additions and repairs have been effected, or are in course of progress, to schools at Terrace End, Bunnythorpe, Marton, Stoney Creek, Eltham, Ngaire, and Hawera, and also to Awahuri and Crofton residences, whilst Kapuni School was assisted by a grant-in-aid. Additional school accommodation is now required at Palmerston North, Feilding, Hunterville, Campbelltown, and Upper Tutaenui; and new schools are immediately required at Momahaki, Bird Boad, and Pohangina, with the prospect of others at Ouroa and Skeet Boads, Otairi, Apiti Block, Wanganui Small Farm, and West Waitapu, with residences for the same. There are, besides, seventeen existing schools without residences, causing a heavy demand upon the Board's resources for house rent. Architects. —Messrs. Atkins and Clere, the Board's architects, having dissolved partnership, and Mr. Clere having left the district, the Board appointed Mr. A. Atkins to the position upon the same terms. School Furniture. —The contract for desks and school furniture having expired during the year, the Board accepted a fresh tender in Wanganui for two years at a reduction upon former prices. Scholarships.—The annual competition for scholarships took place in July. Ten competitors —eight boys and two girls —went up for the senior, and ten competitors —seven boys and three girls —went up for the junior scholarships. Three senior and four junior were awarded. The average age of the seniors was 14 years and 7 months, the girl being the youngest by a few months. The average age of the juniors was 12 years and 3 months, within a fraction, the girl being the youngest but one by nearly a year. The scholarships are open to all comers, and they are tenable for two years, with the exception of the last of the juniors, which can only be held for one year, in consequence of the funds at the Board's disposal not being sufficient. Bules and Begulations.—During the year the Board has revised the whole of its rules and regulations, and they are now in the printer's hands, and will be distributed to teachers and Committees without delay. School Committees. —In October the Board, as usual, requested the several School Committees to nominate auditors for its approval to audit the abstracts of the School Fund Accounts, and, where Committees failed to do so, the Secretary of the Board was appointed to perform the duty. The Board regrets to state that, whilst some of the Committees' accounts are rendered in accordance with the Act, repeated applications were made for others, which, when received, were found to be in a very incorrect and incomplete state, whilst some have not been received at all. Fitzherbert School District.—The Board, upon the representation of some of the settlers, considered it advisable to divide this district into three—viz., Fitzherbert, Linton, and Fitzherbert East —and ultimately erected schools in the two latter districts. On completion of the buildings, the original Fitzherbert Committee moved the Supreme Court to grant an injunction to restrain the Board from spending any money in the Fitzherbert East district, principally upon technical grounds. The Court refused to grant the injunction, and dismissed the case with costs against the plaintiffs. Holidays.—The Board has deemed it advisable to allow Committees to alter the date of the midsummer holidays when absolutely necessary to secure a good attendance, provided the term allowed by the regulations is not exceeded. Finance. —The books and accounts of the Board for the year ending the 31st December, 1888, were audited and passed in February, and the several returns required by Government were rendered, with the exception of No. 10—the summary of the School Committees' accounts. The General Account shows a credit balance of £3,400 12s. 2d., against which is charged a sum of £348 Bs. due to the Bees Bequest Bevenue Account, and £214 4s. sd. due to Committees (since paid), leaving a net credit in this account of £2,837 19s. 9d. The Building Account is overdrawn to the amount of £463 Bs. 3d., with liabilities amounting to £1,109 3s. 10d., making a total of £1,572 12s. Id. By deducting this sum from the balance in the General Account it will be seen that the Board has a net credit of £1,268 7s. Bd., all of which, however, is required for urgent works.