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Scholaeships.—The annual examination for scholarships was held in Wanganui in June. The number of candidates examined for the junior scholarships was ten—six boys and four girls , and for the senior scholarships, nineteen —nine boys and ten girls. Scholarships, each tenable for two years, were awarded to two boys in the junior class, and two girls and two boys in the senior class. In future the senior scholarships will be tenable for three years, and the examination will take place in December instead of in June. The amount expended on scholarships during the year was Paid to holders, £345, examination expenses, £21 14s. 9d total, £366 14s. 9d. Pupil-teachebs.—The annual examination of pupil-teachers and cadets was held in June, when sixty candidates presented themselves for examination. Their classification and the results of the examination are shown in the subjoined table:— Examined. Failed. Passed. Class I. 15 2 13 Class 11. 16 4 12 Class 111. .. 29 12 17 Totals 60 18 42 It is but fair to add that several of the candidates in the Third, or lowest, Class had been, at the time of the examination, less than twelve months in the service of the Board. The Board dispensed with the services of two pupil-teachers who failed for the second time to pass the annual examination. Of the sixty candidates examined, forty-three; were females and seventeen males. Notwithstanding the fact that female pupil-teachers are paid at a lower rate than males, the number of females offering themselves for employment is considerably in excess of the number of males. For the extra work of training the pupil-teachers and supervising their studies, the sum of £405 15s. sd. was paid to the head teachers of the various schools for the year ending the 30th June last. Inspection.—At the December meeting of the Board the resignation of Mr. W E. Spencer, M.A., B.Sc, was accepted with regret. Mr James Milne, M.A., who has for the last four years held the position of headmaster of the Waverley School, has been appointed to succeed Mr Spencer. Finance.—The statement of receipts and expenditure shows a credit balance in the Building Account of £2,963 17s. 6d., and in the General Account of £2,111 12s. lid., against which in the Building Account there are liabilities amounting to £2,645 12s. Id., and in the General Account liabilities of £790 19s. 7d. The Building Account will thus show a bare credit of £493 ss. sd. to meet the whole of the requirements of the district and when it is considered that the Board must paint a large number of buildings during the current year, the actual amount available for the erection of buildings and improvements will be nil, although the demands for increased accommodation and necessary repairs are numerous and urgent. I have, &c, The Hon. the Minister of Education. Gilbeet Caeson, Chairman.

Genekal Statement of Eeceipts and Expbnditueb for the Year ending 31st December, 1894. Receipts. £ s. d. [ Expenditure. £ s. d. To Balance at beginning of year — By Office staff—Salaries 100 0 0 On Building Account 1,420 4 3 Clerical assistance 8 0 8 On General Account .. 360 16 3 Departmental contingencies 405 14 6 Government grant for buildings 3,350 0 0 Inspectors'salaries 687 10 0 Subscriptions and donations for build- Inspectors' travelling expenses 270 0 0 ings 2 0 0 FJxamination of pupil-teachers 52 0 4 Other receipts for buildings— Teachers'salaries and allowances 22,545 16 10 School sites leased 17 1 6 Incidental expenses of schools 1 277 17 6 School sites sold . 66 13 4 Training of teachers 100 0 0 Contractors' deposits 136 0 6 Scholarships— Government statutory capitation 25,083 17 8 Paid to scholars 345 0 0 Government scholarship grant 466 14 9 Examination expenses 21 14 9 Inspection subsidy 300 0 0 School buildings— Payments by School Commissioners . 1 353 110 New buildings 1 136 7 3 Rent of buildings 10 17 6 Improvements to buildings 275 9 0 Technical School— Furniture and appliances 374 12 4 Government grant 200 0 0 Sites 86 6 11 Education Board 100 0 0 Plans, supervision, and fees 90 5 7 School fees 156 11 6 Contractors' deposits 65 1 0 Eees bequest 195 1 1 Technical School — Apparatus refund 8 11 11 Salaries and fees 239 5 6 Science apparatus 134 2 8 Furniture 29 12 0 Working and other expenses 88 6 4 Balance— On Building Account 2,963 17 6 On General Account 2,11112 11 Technical School 18 18 6 £33 727 12 1 £33 727 12 1 A. A. Bkownb, Secretary Examined and found correct.—Jambs Edwakd FitzGeeald, Controller and Auditor-General.