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Finance.—The building grant of 1897 not having been received in time to be credited in the accounts for the year ending 31st December, 1897, the account shows a debit balance of £1,131 10s. Id., the amount due to maintenance being £1,358 19s. 10d., and credit in bank £244 18s. Bd. The Maintenance Account shows a credit of £1,131 18s. Id., being cash in bank, £893 6s. 4d.; due from aided schools, £131 17s. lOd. ; due by Building Account, £1,358 19s. lOd.; making a total of £2,384 45., from which has to be deducted £1,252 ss. lid., the amount due to reserves revenue. Buildings.—The principal operations of the Board were : Erecting additions to Fairlie, Hannaton, and Waitohi Flat, and building residences at Seadown and Waimate. Owing to the excessively dry season, the Board was put to very considerable expense in building tanks and supplying water generally to a large number of schools. The building at Adair was painted, and provided with a new tank. At Albury the residence was distempered. A grant was made to Ashwick Flat towards improving the site. A shelter-shed was erected at Burkes Pass; Claremont was provided with a filter ; Fairview was granted an underground tank, and repaired generally ; Geraldine was fitted with a water-supply ; the Hakataramea site was fenced; Hazelburn was granted a curtain to separate the school; Hook was granted the cost of repairing the fences ; Hilton was granted a new tank ; repairs were done at Kingsdown ; a wash-house built at Milford; Otaio was painted and repaired, and granted a filter ; Upper Otaio was repaired ; Pareora residence repaired and a new tank built; Pleasant Point was painted and supplied with new closets ; Pleasant Valley was fenced ; Eangitata Island had a new grate provided; Eangitata Station was repaired : a new window was put in the Eangatira Valley school; St. Andrews had its tank repaired and new closets built; the Scotsburn site was fenced. The Timaru Main School storeroom was burnt, towards which Government gave a separate grant to restore ; besides this, there were alterations made to the main building. The Timaru South site was drained ; a grant was made to Waihao in aid of the erection of a shelter-shed, and the buildings were repaired and painted; the residence at Wai-iti was repaired, and the buildings painted and fences restored ; a concrete tank was built at Waitohi Flat; the buildings at Upper Waitohi Flat were painted; new fences were erected at Waituna Creek, and the school was partitioned by a heavy curtain; the buildings at Washdyke were painted; new ceilings put in the Woodbury school ; and repairs executed at Waimataitai. Furniture and other material were supplied to a number of schools, and small grants made in aid of School Committees. The Board has to thank the School Committees generally for the interest and attention they have given to the work and welfare of education in their respective districts. Influenza, scarlet fever, and other causes of a like nature, necessitating the closing of schools temporarily, have had a marked effect upon the average attendance, and the scarcity of water may have had a very predisposing influence towards the general unhealthiness. The Board, however, can congratulate itself still on the cordial relations existing between the School Committees, the teachers, and the Board. Pupil-teachers.—The annual examination of pupil-teachers was held in the last week of June, when thirty pupil-teachers, together with eight candidates for employment, presented themselves for examination. Twenty-seven pupil-teachers passed, and three failed. All the candidates for employment passed. Nine pupil-teachers of the third and fourth year sat for certificates at the Education Department's examination ; three passed the D examination, two obtained a " partial " D, two passed the E, and two obtained a " partial" E. Eight others, whose term of apprenticeship expired during 1897, presented themselves : and of these, two passed the D examination, four the E, and two secured a full E certificate with " partial " D. District High Schools.—A special report of the secondary work of the District High Schools was submitted to the Board by the Inspector. From this report it appears that thirty-one scholars took part in the examination at Waimate, and eleven at Temuka. The subjects taken were English, Latin, French, Euclid, and algebra. The Waimate High School Board continues its annual grant towards the teaching of the higher subjects in the Waimate District High School, and encourages attendance by awarding scholarships and exhibitions to successful pupils. I have, &c, The Hon. the Minister of Education. W. B. Howell, Chairman.

General Statement of Eeceipts and Expenditure for the Year ending 31st December, 1897. Receipts. £ s. A. Expenditure. £ a. A. To Balance— £ s. d. By Office staff—Salaries.. .. .. 358 6 6 Dr. On Building Account 1,533 0 1 Clerical assistance .. .. .. 5 0 0 Gr. On General Account 2,253 19 10 Departmental contingencies.. .. 254 17 3 720 19 9 Inspector's salary .. .. .. 599 0 0 Government grant for buildings .. 1,686 0 0 Examination of pupil teachers .. 63 12 3 Other receipts for buildings— Teachers' salaries and allowances (inSale of Geraldine residence .. 144 7 6 eluding rent, bonus, &c.) .. .. 15,416 7 8 Contribution, Burkes Pass .. 4 2 6 Incidental expenses of schools .. 1,323 14 9 Map .. .. .. .. 012 6 Scholarships— Government statutory capitation .. 14,468 17 11 Paid to scholars .. .. .. 322 11 11 Scholarship grant .. .. .. 344 9 3 Examination expenses .. .. 82 0 10 Inspection subsidy .. .. .. 300 0 0 School buildings— Donation to Fire Brigade .. .. 2 2 0 New buildings .. .. .. 866 0 6 Payments by School Commissioners .. 2,912 10 9 Improvements of buildings .. 363 710 District High School fees .. .. 187 15 0 Furniture and appliances .. .. 96 5 3 Contractors'deposits .. .. 30 0 0 Sites .. .. .. .. 3 7 6 Waimate subsidy .. .. .. ,150 0 0 Plans, supervision, and fees .. 87 2 6 Contributions, School Committees .. 27 10 0 Contractors'deposits .. .. 25 0 0 Rents .. .. .. .. 11 14 0 Balance — £ s. d. Refunds .. .. .. .. 18 18 7 Dr. Onßuilding Account 1,114 1 2 Or. On General Account 2,252 6 2 1,138 5 0 On deposit, Contract Account .. 5 0 0 £21,009 19 9 £21,009 19 9 Wm. B. Howell, Chairman. J. H. Bamfield, Secretary. Examined and found correct—J. K. Warburton, Controller and Auditor-General,