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of the Act mentioned were adopted. So far, the administration under this Act has proved satisfactory. During the year thirty-four reserves in different parts of the district were leased. Of these, nine are sections in inland townships, fifteen are sections in village settlements, and ten are rural sections covered with bush, and ranging from 20 acres to 335 acres in extent. With the exception of two sections, the leases of which were forfeited previously, the lands let during the year had not been leased before. There was but little competition for them, owing, perhaps, to the quantity of Crown lands offered for selection, much of which will no doubt be made freehold. Mr. H. H. Bridge resigned his office as a Commissioner during the year, and Mr. J. H. Coleman was appointed in his stead. Enclosed is a copy of the general statement of receipts and expenditure for the past year, which has been examined and certified as correct by the Controller and Auditor-General. It is with pleasure to be noticed that the statement shows larger receipts than that for any previous year. I have, &c, The Hon. the Minister of Education. G. W. Williams, Chairman.

General Statement of Receipts and Expenditure for the Year ending 31st December, 1888.

13— E. 1.

\ecevpts. Primary Education Reserves. Seconaary Education Reserves. Total. To Credit balances on 1st January, 1888 ... Arrears of revenue for previous years—viz., rents, issues, profits or receipts from reserves Eevenues, viz.,— (1.) Eents, &c, of reserves for current year (2.) Other receipts for current year, viz.— Compensation for land taken for railway purposes ... Sale of timber Interest on deposits ... £ s. 594 19 a. 4 £ s. 52 9 a. 4 £ s. a. 647 8 8 371 11 9 44 4 6 415 16 3 1,892 6 6 212 5 3 2,104 11 9 5 0 27 10 22 15 0 0 4 5 0 0 27 10 0 22 15 4 Total receipts ... 2,914 2 11 308 19 1 3,223 2 0 Expenditun By Salaries and allowances to officers Printing, stationery, &c. Expenses of leasing — Auctioneer's commission Advertising, &c. Expenditure on reserves— Surveying, &c. ... ... ... Eates to local bodies, &c. Legal expenses Payments to Hawke's Bay Education Board Credit balances of account on 31st December, 1888 £ s. a. £ s. a. £ s. a. 100 0 0 9 5 10 -221 12 1 172 5 11 8 18 6 28 4 8 ,050 0 0 642 10 10 136 13 2 176 7 0 69 10 6 1 11 6 2,050 0 0 779 4 0 Total expenditure 2,914 2 11 308 19 1 3,223 2 0 Assets. Salance of cash on 31st December, 1888 jrears due on 31st December, 1888— (1.) Arrears of year 1887 (2.) Arrears of year 1888 £ s. <3. 642 10 10 £ s. 136 13 a. 2 £ s. a. 779 4 0 10 0 0 405 17 10 7 17 20 18 6 3 17 17 6 426 16 1 Total assets 1,058 8 8 165 8 11 1,223 17 7