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4. Scholarships. Boys' School. —There were twenty-eight Education Board scholarships held at the school, twentyone free places granted by the Governors, and 153 Government free places. Girls' School. —The number of Education Board scholarships was fifteen, free places granted by the Governors twenty-nine, and 114 Government free places.

SOUTHLAND HIGH SCHOOL. Staff. Mr. H. L. Fowler, M.A.; Mr. F. W. Hilgendorf, M.A., B.Sc.; Mr. J. McKinnon; Mr. J. G. Mackay ; Miss E. Stevenson, M.A.; Miss J. R. Barr, M.A.; Miss B. Ayton, A.A.; Mr. J. Hanna. 1. Report of the Governors. At the commencement of the year the Governors comprised Messrs. J. L. McG. Watson and A. F. Hawke, appointed by His Excellency the Governor ; Messrs. W. Macalister and J. C. Thomson, elected by the' Southland Board of Education; and Mr. G. Froggatt, Mayor of Invercargill. Mr. Macalister was re-elected Chairman. Owing to the large increase of pupils, which rose from 112 in December, 1902, to 188 in January, 1903, it was necessary to increase the school accommodation, as the school buildings were already taxed to the utmost. The only course open was to utilise a large room in the Rector's residence, which was very inconvenient, and interfered very considerably with the comfort and ease in the changing of the classes for the different lessons. It involved also additional work on the part of the teachers. This difficulty has since seriously increased with the additional number of pupils which are now in attendance. The use of a hall at a little distance from the school was secured, as the pupils now attending could not possibly be taught in the school buildings. The arrangement is exceedingly inconvenient, and it is absolutely indispensable that the school accommodation be extended. The schools were separated at the end of the year, the Rector having charge of the boys only, and a Lady Principal being appointed for the girls' school. At the beginning of the year 1903 Miss Brown resigned, her place being filled by Miss J. R. Barr, M.A. (N.Z.). It was also found necessary to appoint another assistant mistress, and in March Miss B. Ayton, A.A. (Tasmania), received the appointment. At the end of the year Mr. Fowler resigned the rectorship ; Mr. T. D. Pearce, M.A., was appointed Rector of the Boys' School. Mr. J. McKinnon was appointed assistant master of the boys' side in March. The cadet corps is still maintaining the state of efficiency that has characterized it for the past two or three years. The Board, in conjunction with the Southland Board of Education and the Southland Farmers' Union, inaugurated for last winter a series of lectures on agricultural science ; Mr. Hilgendorf delivered the lectures on agricultural chemistry, which were much appreciated. The gymnasium erected by the Board a year or two since is supplying a felt need, and is being satisfactorily availed of by all the schools for which it was specially built and also by the citizens of Invercargill.

2. General Statement of Accounts for the Year ended 31st December, 1903. Receipts. £ s. d. Expenditure. £ s. d. Balance at beginning of year .. .. 464 8 0 Office salary .. .. ..75 0 0 Endowments— Other office expenses .. .. .. 9 5 3 Current income from reserves .. .. 774 3 4 Other expenses of management .. .. 20 0 0 Paid by School Commissioners .. .. 193 17 9 Teachers' salaries and allowances . . 1,480 14 9 School fees .. .. ■ • • • 1,036 4 3 Instructor, gymnasium school, salary .. 150 0 0 Books, &c, sold, and other refunds .. 14 0 Athletics .. .. .. .. 910 6 Interest on current account .. .. 12 0 0 Printing, stationery, and advertising .. 98 13 10 Rent? from freeholds .. .. •• 55 0 7 Cleaning, fuel, light, &o. .. .. 151 111 Donations for prizes .. . • • ■ 6 10 Site and buildings, from current revenue — Subsidies in aid of gymnasium .. .. 157 10 0 Purchases and new works .. .. 190 10 8 Technical school and fees .. .. 28 10 0 Fencing, repairs, &c. .. .. 98 3 7 Rates, insurance, and taxes .. .. 33 5 2 Interest on current account .. .. 2 4 0 Expenses of survey, sales, management, &c. 23 16 2 Chemicals and appliances .. .. 18 0 9 Technical classes ffl ■ • ■ • • • 59 14 8 Furniture and fittings] .. .. .. 95 6 9 Balance at end of year .. .. .. 213 10 11 £2,728 18 11 £2,728 18 11 W. Macalister, Chairman. Charles Rout, Secretary. Examined and found correct, except that the expenditure " Other expenses of management, £20 " is the allowance which has been made to two members of the Board for their expenses of visiting Wellington, but for which there is no authority of law.— J. K. Warburton, Controller and Auditor-General.