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Schools.—Four new schools have been opened during 1897, viz.: Wakfetrara, Western Spit, Pohui, and Waimate Valley. The last two are aided schools, in which the parents have to provide the buildings and guarantee a salary of £80 a year, while the Board furnishes the apparatus, and gives a capitation allowance of £4 10s. per head per annum on average attendance. Two new schools, with residences, will be opened shortly at Whetekura and Elsthorpe, two special settlements recently established. Towards the cost of these two school buildings the Government granted, from funds set apart by Parliament for this purpose, the sum of £110, while the Board paid from its ordinary funds the sum of £933. In addition to these buildings, a teacher's residence has been erected at Takapau and Wairoa, and additions have been made to the following schools :_ Te Arai, Wairoa, Weber, Ormondville, and Porangahau ; also, alterations have been carried out in Hampden and Woodville. School Committees.—As in former years, the relations between the Board and the School Committees have been of the most cordial character. There have been no complaints of any importance during the year from the School Committees to the Board; while the Board has duly considered every request made by the Committees, and, as far as necessity called for and the Board funds allowed, have carried out their requests. It is with special gratification that the Board calls attention to the care taken of the school buildings by many of the Committees during the recent bush fires. It was entirely owing to their exertions that serious loss has not occurred. Scholarships.—ln the year 1897 there were forty-two scholarship holders from the public schools attending the Napier High Schools and the Gisborne District High School. Four of the scholarships were of the value of £50 per annum each, nine of £30 45., eight of £12 45., and twenty-one of £10 4s. The sum allowed, is dependent on the place of the pupil's residence. The larger sums are given to children from the country districts. The whole sum expended was £783 12s. A portion of this amount is provided by the School Commissioners. Very few of the scholarship holders have surrendered their scholarships during the year as compared with former years. This may be accounted for by the fact that fewer eligible openings have presented themselves than formerly for the pupils. Sewing.—The Board has much pleasure in reporting that sewing has been very carefully taught in all the schools during the year. The ladies of the district, who have for many years given their time and attention to this branch of school work, have reported most favourably on the results for the year. The examination by these ladies has the advantage of stirring up a healthy rivalry among both pupils and teachers. Technical Education.—Nothing has been done in this direction during the past year, chiefly because the Board has had no funds for the purpose. The Board has provided £1,430 17s. Id. out of the school fund for school buildings and repairs, and has considered such claims to have a prior claim, as without this contribution the schools started in the out-districts could not have been provided for. As settlement progresses, the claims for small isolated districts increase, and are a rowing charge on the school fund. Pupil-teachers.—The reversion to the old regulations has been found to work satisfactorily. It is worthy of note that a number of third- and fourth-year pupil-teachers, and even a few secondyear, have gone up for certificate examination, and in most cases have obtained their certificates or a partial pass. The account of the Board's income and expenditure for the year, duly audited by the Government Auditor, is appended hereto. The amount paid for teachers' salaries, bonuses on results, and instruction of pupil-teachers, was £20,061 ss. 3d. ; the amount paid to School Committees, £2,221 Bs. 5d.; and the amount expended on school buildings, repairs, &c, £3,549 15s. sd. I have, &c, The Hon. the Minister of Education. J. D. Ormond, Chairman.

General Statement of Eeceipts and Expenditure for the Year ending 31st December, 1897. Receipts. Expenditure. £ s. d. To Balance— £ s. d. £ s. d. By Office staff—Salaries .. .. 360 0 0 Dr. On Building Account 469 1 9 Departmental contingencies .. .. 289 7 1 Cr. On General Account 4,553 0 9 Inspector's salary .. .. .. 520 0 0 4,083 19 0 Inspector's travelling-expenses .. 175 0 0 Government grant for buildings .. 3,060 0 0 Examination of pupil-teachers .. 73 10 3 Subscriptions and donations for build- Teachers' salaries and allowances (inings .. .. .. .. 12 0 0 eluding rent, bonus, &c.) .. .. 20,061 5 3 Other receipts for buildings—Transfer Incidental expenses of schools .. 2,221 8 5 from School Fund .. .. 1,430 17 1 ScholarshipsGovernment statutory capitation .. 21,064 2 0 Paid to scholars.. .. .. 511 2 0 Scholarship grant .. .. .. 521 5 2 Examination expenses ... .. 36 12 0 Inspection subsidy .. .. .. 300 0 0 School buildings— Payments by School Commissioners .. 2,717 13 0 New buildings .. .. .. 1,960 2 1 District High School fees .. .. 383 14 6 Improvements of buildings .. 935 11 1 Contribution, teacher's salary .. 36 4 2 Furniture and appliances .. 407 17 3 Rent of reserve .. .. .. 3 0 0 Plans, supervision, and fees .. 246 5 0 Transfer to Building Fund .. .. 1,430 17 1 Exchange on cheques .. .. 28 3 6 Balance — On Building Account .. .. 483 19 11 On General Account .. .. 3,871 14 0 £33,612 14 11 £33,612 14 11 E. T. Fannin, Treasurer and Secretary. Examined and found correct—J. K. Warburton, Controller and Auditor-General.