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Needlewoek. —The system so long carried out of having the sewing of the girls sent to the Education Office for examination and marking still continues with one slight modification. Special examiners were appointed for Gisborne ; but the same plan of marking was followed, and the results as they "appear in the tabulation appended are estimated for all schools alike. The prizes which had so long been offered for competition by Captain Russell, M.H.R., were withdrawn by him last year, but Mr. Rechab Harding offered similar prizes for competition, and promises to continue the same for the coming year. The report of the examiners will be found among the appendices. In November, when the sewing examination took place, thirty-eight schools were represented, and the number of specimens was 1,441, as compared with 1,370 for 1888, and 1,154 for 1887. According to standards the specimens were classed as follows : Standard 1., 419 ; Standard 11., 334 ; Standard 111., 311; Standard IV., 203; Standard V., 113; Standard VI., 61. At the Gisborne District High School the girls in Standards V. and VI. are taught how to cut out their own dresses and to use the sewing machine, the Committee having purchased, two machines for the benefit of the school. The innovation is an important one, and a similar plan will no doubt be soon adopted by other schools in the district. Science Instruction.—With a view to improving the schools, the Board last year fostered the establishment of drawing classes for teachers in Napier, and, as pointed out by the Inspector, much good resulted therefrom. During the past year science classes have been conducted by Mr. Fergusson, an Owens College honours man in science, the conditions for attendance being the same; but the attendance has not been sufficient to warrant their continuance for another year. This is to be regretted, as no similar opportunities have been offered in the district for instruction in chemistry and elementary physics. Teachers who have not availed themselves of the opportunities held out by the Board will have no cause to complain should a regulation be passed requiring teachers to hold special certificates in science and art in addition to the ordinary certificates now issued by the Government. Building Fund.—This fund stiil continues in the same unsatisfactory position as it has been for the past two years. Consequent on the large increase in the average attendance in 1888 the Board, in anticipation of a larger building grant last year, decided to proceed with a number of additions and new buildings which had become most pressing. The works were completed in the early part of the year, but the smallness of the building grant, amounting to £1,120 165., was altogether insufficient to provide for additions at Woodville, Danevirke, Makatoku, Napier, Port Ahuriri, and new buildings at Blackburn and Te Aute. The consequence is that the Building Fund Account of the Board is largely overdrawn, and this at a time when rooms are being hired at Napier and Gisborne, new buildings required at Matamau and Makauri, and a new school wanted at Nuhaka and additions at Kumeroa, Ashley-Clinton, and Patutahi. Income and Expenditube.—The whole income of the Board for the year, including building grant, subsidy, fees, and endowments from Gisborne District High School, was £20,689 12s. 3d. Of this amount, £19,164 ss. 9d. was School Fund, provided for the ordinary work of carrying on the schools and for inspection, and £1,525 6s. 6d. (£1,120 16s. of this amount, although voted by General Government, has not yet been received) was building grant. The School Fund was augmented by a balance in hand from the previous year of £1,029 9s. lid., and the Building Fund by £334 9s. 7d., making a total of £22,053 11s. 9d. The expenditure shows that the cost of maintenance of the schools, including salaries of officers and teachers, grants to School Committees for cleaning and firing, bonuses to teachers, house allowances, instruction of pupil-teachers, and inspection, amounted to £18,328 2s. Id., leaving available a balance of £1,865 13s. 7d., out of which the sum of £30 18s. 6d. was paid in aid of the Building Fund, leaving a balance in hand to the credit of the School Fund of £1,834 15s. Id. The Building Fund was as follows: Income, General Government grant, &c, with balance from last year, £1,859 16s. Id.; expenditure, on buildings, plans, and appliances, £2,881 4s. lOd. : which leaves a debit balance at the close of the year 1889 of £1,021 Bs. 9d. I have, &c, The Hon. the Minister of Education. J. D. Okmond, Chairman.

Geneual Statement of Eeceipts and Expenditure for the Year ending 31st December, 1889. Receipts. & s. d. Expenditure. £ s. d. To Balance at beginning of year — By Office staff—Salaries .. .. 250 0 0 On Building Account .. .. 834 9 7 Departmental contingencies .. 205 5 8 On General Account .. .. 1,029 911 Inspector's and Secretary's salaries .. 500 0 0 Government grant for buildings .. 373 12 0 Inspector's travelling expenses .. 150 0 0 Statutory capitation .. .. 15,509 16 3 Examination of pupil-teachers .. id 19 9 Scholarship grant .. .. .. 355 0 0 Teachers' salaries and allowances (inInspection subsidy .. .. .. 300 0 0 eluding rent, bonus, &c.) .. 14,752 8 3 Payments by School Commissioners .. 2,649 13 6 Incidental expenses of schools .. 1,703 5 0 District High School fees and endow- Training of teachers, attendance at ments .. .. .. .. 349 16 0 science classes, &c. .. .. 43 0 0 Balance on 31st December, Building Scholarships'— Fund .. .. .. .. 2,142 4 9 Paid to scholars .. .. .. 349 5 0 Examination expenses .. .. 27 11 9 School buildings— New buildings .. .. .. 1,816 6 4 Improvements of buildings .. 681 110 Furniture and appliances.. .. 234 9 10 Sites .. .. .. .. 25 0 0 Plans, supervision, and fees .. 124 610 District High School .. .. 297 6 8 Balance on 31st December, 1889, on General Account .. .. 1,834 15 1 £23,044 2 (T £23,044 2 0 J. D. Oemond, Chairman. _ H. Hill, Secretary. Examined and found correct. —James Bdwaed FitzGekald, Controller and Auditor-General.