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of eligible teachers only, and carries out the provisions of the Education Act relative to the consulting of School Committees before appointments are made. Financial.—The returns contain details of the Board's income and expenditure, and generally of its financial position for the year 1884. On referring to the statement of accounts it will be seen that at the end of 1883 the overdraft in the Building Fund amounted to £1,673 14s. 6d., and that at the end of 1884 it had been reduced to £961 os. 3d., while the credit balance ou the Maintenance Fund is much the same in both years. The following is a statement of the accounts of the various School Committees, as audited by competent persons appointed by the Board : —■ Income. £ s. d. Expenditure. £ s. d. Balances .. .. .. 341 4 3 Cleaning schools and fuel .. .. 961 911 From the Education Board .. .. 1,069 14 8 Repairs to buildings, fences, &c. .. 321 9 0 From donations, subscriptions, &c. .. 523 14 10 Books, maps, and furniture .. .. 110 7 2 From other sources .. .. 305 19 8 Towards teachers' salaries .. .. 119 6 6 Committees' expenses, stationery, &c. .. 188 3 3 Sundries .. .. .. 166 7 3 Balances .. .. .. 373 10 4 £2,240 13 5 £2,240 13 5 The audit has been very carefully and satisfactorily made, and the books in general were correctly kept, only four Committees having been reported to the Board as keeping their accounts in a loose and unbusinesslike manner. As regards compulsory attendance, Savings Bank, and Life Insurance, there is little to report. Only one School Committee —viz., Arrowtown —has put in force the compulsory clauses of the Act during the year. The Teachers' Insurance scheme, under which their premiums are deducted from their salaries every month, is not taken advantage of to any great extent. At the beginning of the year 14 and at the end of the year 10 teachers were insured under this scheme, the total amount of premiums paid during the year being £127 7s. I have &c, John G. Smith, The Hon. the Minister of Education. Secretary.

General Statement of Eeceipts and Expenditure for the Year ending 31st December, 1884. Receipts. £ s. d. Expenditure. £ s. d. To Government grant for buildings .. 3,100 0 0 By Balance of account on 31st December, Government grant for Knapdale School 1883 .. .. .. .. 1,044 8 9 residence .. .. .. 230 0 0 Office staff, salaries .. .. .. 300 0 0 Subscriptions and donations for build- Clerical assistance .. .. .. 5 10 ings .. .. .. .. 100 0 0 Departmental contingencies .. .. 259 16 7 Government statutory capitation (£3155.) 14,584 17 1 Inspectors'salary .. .. .. 400 0 0 Special capitation (55.) .. .. 972 6 6 Inspectors' travelling expenses .. 130 0 0 Scholarship grant (Is. 6d.) .. .. 260 10 2 Examination of pupil teachers .. 918 6 Inspection subsidy .. ' .. .. 300 0 0 Teachers' salaries and allowances (inGrant for training of teachers .. .. 5 8 7 eluding rent, bonus, &c.) .. 16,116 5 2 Payments by School Commissioners — Incidental expenses of schools .. 1,069 14 8 For primary education .. .. 2,506 15 3 Training of teachers.. .. .. 5 8 7 Rents .. .. .. .. 10 0 0 Scholarships— Dr. balance of account on 31st December, Paid to scholars .. .. .. 280 16 8 1884 .. .. • • .. 303 0 1 Examination expenses .. .. 34 2 0 School buildings— New buildings .. .. .. 1,748 14 0 Improvements of buildings .. 674 15 8 Furniture and appliances .. .. 139 18 11 Sites .. .. .. .. 36 611 Plans, supervision, and fees .. 117 10 3 £22,372 17 8 £22,372 17 8 Thos. M. Macdonald, Chairman. John G. Smith, Secretary. I have compared this abstract with the Treasurer's books and vouchers, and I certify it to be correct.—H. Livingston, Auditor.

Statement of Assets and Liabilities on 31st December, 1884. A. Exclusive of Building Fund. Assets. £ s. d. Liabilities. £ s. d. Cash in bank on this account, 31st December, Duo to teachers .. .. .. .. 57 9 10 1884 .. .. .. 658 0 2 Due to committees .. ... .. 289 6 8 Balance .. .. .. 311 3 8 £658 0 2 £658 0 2 B. Building Fund only. Balance of account, 31st December, 1884 .. 769 15 6 Balance of amounts due, or to fall due, under contracts .. .. .. 534 14 9 Nil. £1,495 15 0

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