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year; and at the end of the year this account showed a credit balance of £2,780 13s. 6d. after providing for all liabilities thereon. For school buildings the sum of £12,450 was received from Government, and the expenditure amounted to £13,641 13s. Id. A balance of £1,655 3s. was owing from Building Account to Maintenance Account at the end of the year. The liabilities on Building Account at the end of the year amounted to £4,971 10s. 6d. a further sum of about £4,000 being required to complete all the works then authorised but not begun. Against these liabilities there is the balance of the building grant yet to be received for the current financial year. Buildings.—Many important works, such as the building of new schools and the improvement of existing schools, have to be postponed for lack of funds. Teachers' residences are needed in many districts in which the accommodation is both insufficient and inconvenient. Large demands are constantly arising for the repair and renewal of old buildings. Sites require clearing and fencing. Shelter-sheds and other outbuildings have to be erected or enlarged. A change of population or settlement necessitates the removal of the school to some other site. The Board is therefore compelled to ask that the funds for these purposes may be increased, not curtailed. A permanent staff of two foremen carpenters and two foremen painters is employed (under direction of the architect) to make necessary improvements and repairs. The demand for their services is increasing so greatly as to cause unavoidable delay in attending to some of the many and varied requirements. It is clear that the wants of 359 schools (scattered over a wide area) cannot be adequately met unless School Committees will continue to exercise close and vigilant supervision over the school properties in their districts. Where such local supervision is exercised many minor repairs and wants are duly supplied without waiting for the visit of the foreman, and the school premises are kept in a creditable state of repair. Where this is neglected, habits of untidiness are engendered, together with a spirit of carelessness and indifference, which may ultimately result in acts of abuse or even wilful and wanton damage to the school premises and apparatus. It bejioves those for whose benefit these buildings exist to guard them jealously against acts of vandalism and destruction, and to do all in their power to promote a loyal regard for the care of public property. Jubilee. —The Queen's Diamond Jubilee was celebrated by the observance of a week's holiday in all the schools. A special lesson setting forth the leading events and the progress of the Empire during the past sixty years was printed and circulated for use in the schools. A congratulatory address to Her Majesty was signed by 25,445 scholars of the schools throughout the education district, and was forwarded to His Excellency the Governor for presentation to the Queen. Her Majesty has expressed her great admiration of the artistic manner in which the address was illuminated and bound, and her cordial thanks to the scholars for their kind and touching expressions of loyalty. A duplicate of the address, with the signatures, and Her Majesty's reply, is to be deposited in the Auckland Free Library. Samuel Luke, Chairman.

General Statement of Eeceipts and Expenditure for the Year ending 31st December, 1897Receipts. £ a. A. Expenditure. £ a. A. To Balance— £ a. A. By Office staff—salaries .. .. 1,239 11 6 On General Account 3,743 19 11 Clerical assistance .. .. .. 89 16 0 Dr. Building Account 803 7 10 Departmental contingencies .. 693 6 9 2,940 12 1 Inspectors'salaries .. .. 1,941 13 4 Government grant for buildings .. 12,450 0 0 Inspectors'travelling-expenses .. 721 0 0 Subscriptions and donations for build- Examination of pupil-teachers .. 44 9 0 ings .. .. .. .. 30 0 0 Teachers' salaries and allowances (inOther receipts for buildings— eluding rent, bonus, &c.) .. 70,964 13 6 Government grant for rebuilding Incidental expenses of schools .. 9,032 5 5 Lucas Creek School .. .. 141 8 0 Training of teachers. .. .. 52 15 10 Proceeds of sale of Hobsonville Scholarships— teacher's house .. .. 125 0 0 Paid to scholars .. .. .. 1,607 10 0 Proceeds of sale of sample stores, Examination expenses .. .. 100 8 7 tanks, &o. .. .. .. 20 11 5 School buildings— Refund, overcharge by Kauri Timber New buildings .. .. .. 3,119 16 4 Company .. .. .. 12 6 Improvements of buildings .. 7,494 10 8 Punakitere School Committee, sale Furniture and appliances .. .. 1,486 810 of wire -.. .. .. 016 0 Sites .. .. .. .. 1,024 11 3 Rents of reserves, &c. .. .. 21 0 0 Plans, supervision, and fees .. 516 6 0 Government statutory capitation .. 83,844 19 3 Truant officer .. .. ... 130 0 0 Scholarship grant .. .. .. 1,648 2 8 Manual instruction classes .. .. 16 0 5 Inspection subsidy— Balance—■ £ a. A. Ordinary .. .. .. 500 0 0 On General Account 5,074 10 10 Native schools .. .. .. 150 0 0 Dr. Building Account 1,655 3 0 Grants in aid of manual instruction 3,419 7 10 classes .. .. .. 16 0 5 Payments by School Commissioners .. 1,788 4 8 Dacres' Committee—sale of closet .. 10 0 Refund from Ruakaka School Fund .. 15 14 3 £103,694 11 3 £103,694 11 3 Samuel Luke, Chairman. Vincent Eice, Secretary. Examined and found correct —J. K. Warburton, Controller and Auditor-General.

TAEANAKI. Sir,— New Plymouth, 4th March, 1898. In accordance with the provisions of section 102 of "The Education Act, 1877," I have the honour to submit the following report of the Board's proceedings for the year ending the 31st December, 1897: —