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(iv.) Income from the secondary-school reserves controlled by the Land Boards divided among the secondary schools in the several land districts in proportion to the number of pupils in average attendance (lower departments excluded) : (v.) Government payments — (a) For teachers' salaries and incidental expenses ; (6) subsidies on voluntary contributions ; (a) capitation for manual-instruction classes : (vi.) Special Government grants for buildings and apparatus : (vii.) Tuition fees of pupils : (viii.) Boarding fees of pupils : (ix.) Miscellaneous sources, such as interest on moneys, donations, and income from special endowments (for scholarships, prizes, &c), rent of premises, &c. The revenue derived from sources (i) to (iv) is the income from endowments, the " net annual income derived from endowments" being this sum less the expenditure incurred in connection with the endowments and school property and upon building purposes approved by the Minister. The " net annual income " and receipts from tuition fees are deducted from the amount payable to the High School Board by the Department for salaries. The following is a summary of the receipts and payments of all operative secondary schools : — Summary of the Statements or Receipts and Payments for the Year 1922 furnished by the Governing Bodies of Public Operative Secondary Schools. Receipts. Pay meiiU. Endowments — £ £ Sales .. .. .. .. .. 451 Endowments (including proportion of office oxLands vested in High Sohool Boards .. 4(i,84:i penses) .. .. .. .. 0,812 Secondary-education reserves .. .. 10,413 ; Teachers'salaries and allowances .. .. 150,705 Interest on moneys invested .. .. 075 I Incidental expenses of secondary departmentsGovernment grants— Office expenses and salaries (exoluding endow ■ Grants for buildings, sites, rent, apparatus, dents) .. .. .. .. 5,016 &c., and subsidies .. .. .. 42,489 Printing, stationery, and advertising .. 3,090 For salaries .. .. .. .. 123,859 Cleaning, heating, lighting, and care of sohoolFor incidental expenses •• .. .. 27,353 grounds .. .. .. .. 12,778 Tuition fees .. .. .. .. 10,278 ; Material, examinations, prizes, games, and Lower Department Account .. .. 0,309 ! other incidentals .. .. .. 4,043 Hostels Account .. .. .. .. 03,442 Maintenance of buildings, rates, and taxes .. 0,809 Loans, interest, &c, .. .. .. 8,316 Sites, buildings, furniture, and apparatus .. 01,099 Technical Classes Account .. .. .. 4,770 Lower Department Acoount .. .. 7,134 Voluntary contributions, income from property Hostels Account .. .. .. .. 00,571 not reservos, refunds, and sundries .. 8,904 Loans repaid, and interest .. .. .. 7,070 Technical Classes Account .. .. .. 5,237 Scholarships, manual instruction, advances to pupils, and miscellaneous .. .. 8,594 £349,221 £345,624 The total amount expended was £79,500 less than in the previous year, the reduction being principally in the item, " Sites, new buildings, furniture, and apparatus." The expenditure of £61,000 on new buildings, &c, included, among other items, part of the cost of a new boys' school at Auckland, of rebuilding the boys' school at Oamaru, of a new site at Whangarei, of additions to the buildings at Hamilton and New Plymouth, and of a hostel at («orc. The Government's contribution towards the expenditure was £46,000. The cost of maintenance, including salaries and incidental expenses, was practically the same as in the previous year. The Department pays the Boards the cost of salaries (less net income from endowments), and also a grant of £2-5 per pupil to cover the cost of incidental expenses. The cost of incidentals ranged in the various schools from £1-6 to £4-6, the average cost being £2-25. The total net income from endowments, being the sum the Boards contributed towards the cost of salaries, was £.17,000. As stated above, the majority of the hostels are being managed without any financial loss, and when certain changes are made in the administration of one or two of them it should be unnecessary for any of them to lose money on the year's working. Several secondary-school Boards have raised loans on the security of their income from endowments with which to carry out their building operations, the loans being repaid gradually from the said income. The total indebtedness of all Boards on this account is about £75,000, the value of their property, of course, far exceeding this amount.

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