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We have recently erected a gymnasium, in which (thanks to the kindness of Professor Carrollo, who first assisted us with his advice as to the most approved building to erect and how best to furnish it, and then took in hand the training of the lads) you have this evening witnessed a gymnastic performance. A balance-sheet will be presented you showing receipts and expenditure, moneys earned, cost of management, &c, from which you will see we are in a sound financial position, though we have been extravagant enough to purchase a new piano. Before closing, kindly allow us a word or two as to the method of admission of inmates. As reported at most of our previous annual meetings, we do not admit any boy or girl who has been convicted of theft or any offence of the kind. All the boys and girls on the roll are of good character. Being orphans, or having parents unable or unwilling to care for them, they have through no fault of their own come under the category of neglected or destitute children. Before admission each one must have been committed to an industrial school by a Magistrate, and from that school we take them. We wish to emphasize this, as many applications are made to us to take children who have not been so committed, and our refusal to accept them has caused disappointment. To prevent as far as practicable the accession to our ranks of any child not in good health, and of moral character, each inmate before being enrolled is taken on probation for at least one month, and subjected to a medical examination as to his health. Of the domestic arrangements of the institution we need not speak. They are open to your inspection this evening, and as they now are so you will find them on any occcasion should you care to pay a visit. We promise you a cordial welcome on the afternoon of any day except Sunday. The improvement of the religious, social, and moral qualities of the inmates is kept prominently in view. We recognise the hand of our Father in Heaven in the success which has attended our efforts in the past, and pray that in all our future work we may have His help and guidance. W. C. Daldy, Chairman.

COSTLEY INSTITUTE. Balance-sheet to 31st Decembeb, 1898. Receipts. Expenditure. £ a. d. £ s. d. To Costley bequest .. .. .. 12,150 0 oBy Land, buildings, furni- £ s. d. R.Hodge .. .. .. .. 67a 3 9 turo .. .. 4,258 7 0 Savings-Bank .. .. .. 369 19 7 Less written off for deBalance Ro venue Acoount .. .. 1,309 14 9 preeiation .. 258 7 0 4,000 0 0 Mortgages and interest .. ~ 10,072 7 6 Savings-Bank Trust Aocount .. 369 19 7 Cash balance .. .. .. 2 15 5 Bank balanoe .. .. .. 56 15 7 £14,501 18 1 £14,501 18 1 Revenue Account foe the Yeae ending 31st Decembee, 1898. Receipts. Expenditure. £ a. d. £ s. d. To Maintenance .. .. .. .. 891 12 BBy Interest Acoount .. .. .. 489 910 Boys' wages .. .. .. .. 13 13 6 Boys' earnings .. .. .. 396 13 1 General expenses .. .. .. 43 19 0 Balance .. .. .. .. 63 2 3 £949 5 2 £949 5 2 £ a. A. £ a. d. To Balance .. .. .. .. 63 2 3 By Balance 31st December, 1897 .. .. 1,631 4 0 Written off for depreciation .. .. 258 7 0 Balance Revenue Aocount .. .. 1,309 14 9 £1,631 4 0 £1,631 4 0 Examined and compared with the books, vouchers, and securities, and found to agree therewith. lam of opinion that the above balance-sheet presents a true position of the Costley Institute as on the 31st December, 1898. Auckland, 31st March, 1899. O. B. Waymouth, C.A. Eng., Auditor. Approximate Cost of Paper.— Preparation, not given; printing(l,37s copies), £1 6s.

By Authority : John Mackay, Government Printer, Wellington.—lB99. Price 3d.]

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