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condition. Although the examination results are slightly lower than those of 1897, they consider that the standard of efficiency has been fully maintained, possibly in some subjects even raised. They attribute the apparent falling-off to prevailing sickness both before and during the examination of a considerable number of schools, including the large schools of Dunedin and suburbs. They mention also that the mean of the average ages of the pupils who passed Standards 111. to VI. is nearly three months lower than that of the pupils who passed these standards in 1897. The percentage of passes in Standards I. and 11., for which the headmasters are responsible as examiners, is 97-6, the same as that of last year. The percentage of passes from 111. to VI., for which Inspectors are responsible as examiners, is 82-7, nearly two less than that of last year. Hitherto the Education Department has required an examination report on each school so far only as the pass-subjects are concerned, but this year the Inspectors were instructed to report also on the class and additional subjects. This they regard as a step in the right direction. Though the Inspectors judge the efficiency of the schools by the percentage of marks gained in the subjects of examination rather than by the percentage of standard passes, they do not regard the latter as valueless, and they repeat the assertion made in last year's report—an assertion well worthy of consideration : "Every well-taught school gains a high standard pass, but not every school that gains a high standard pass is a well-taught school." After long and careful observation of the standard pass examination the Inspectors have come to the conclusion that its abolition would now be conducive to real education. Finance.—A certified statement of the Board's income and expenditure for the year is appended hereunto. The sum expended in teachers' salaries (including bonuses on classification) and bonuses for instructing pupil-teachers was £62,449 Is. 3d.; the amount paid to School Committees for incidental expenses was £5,594 12s. Id. ; the amount expended in the erection, enlargement, and improvement of school buildings and the purchase of sites was £7,108 19s. 9d. The serious falling-off in the attendance, already referred to, has reduced the Board's income on the General Account by over £3,000, without diminishing the expenditure in any appreciable extent, and the Board now finds itself for the first time in the position of being overdrawn on both the General and Building Accounts. By order of the Board, The Hon. the Minister of Education. P. G. Petde, Secretary.

Geneeal Statement of Beceipts and Expenditube for the Year ending 31st December, 1898. Receipts. £ a. d. Expenditure. £ s. d. To Government grant for buildings .. 9,555 0 0 By Balance .. .. .. .. 2,102 11 1 Local contributions for buildings .. 129 11 3 Office staff—Salaries .. .. 1,103 18 7 Government statutory capitation .. 61,751 1 6 Departmental contingencies.. .. 463 7 8 Scholarship grant .. .. .. 1,385 9 0 Inspectors'salaries .. .. .. 1,518 810 Inspection subsidy .. .. .. 500 0 0 Inspectors'travelling-expenses .. 600 0 0 Grant for training of teachers .. 300 0 0 Examination of pupil-teachers .. 39 0 7 Grant for manual and teohnical instruc- Teachers' salaries and allowances (intion .. .. .. .. 18 11 2 eluding rent, bonus, &c.) .. .. 62,449 1 3 Grant for Pomahaka Downs School .. 25 0 0 Incidental expenses of schools .. 5,594 12 1 Payments by School Commissioners .. 10,046 10 10 Training of teachers .. .. 1,140 16 6 District High School fees .. .. 152 19 6 Scholarships— School of Art and Design— Paid to scholars .. .. .. 1,314 0 0 Fees (three quarters) .. .. 258 15 9 Examination expenses .. .. 51 12 1 Government grant under Manual and School buildings— Technical Instruction Act .. 198 13 7 New buildings .. .. .. 2,970 12 5 Rents of school sites .. .. 25 1 0 Improvements of buildings .. 2,782 8 2 Sale of school sites .. .. .. 673 17 7 Furniture and applianoes .. .. 632 13 0 Truancy fines .. .. .. 6 4 0 Sites .. .. .. .. .226 5 0 Bent of offices .. .. .. 21 13 4 Plans, supervision, &o. .. .. 497 1 2 Science and art examination fees .. 18 4 0 Truant Offioer .. .. .. 81 2 9 Balance — £ s. rl. Truancy fines paid to School OomDr. Building Account 3,327 011 mittees .. .. .. .. 4 8 0 Cr. General Account 1,83118 3 Gymnastio instruction .. .. 176 8 8 1,495 2 8 Members'expenses .. .. .. 166 7 10 School of Art and Design .. .. 768 5 3 Manual and technical instruction grant 93 11 2 Board's new offices .. .. .. 1,616 9 1 Science and Art examinations .. 32 5 9 Interest .. .. .. .. 136 8 3 £86,561 15 2 £86,561 15 2 P. G. Pbyde, Secretary and Treasurer. Examined and found correct—J. K. Wabbubton, Controller and Auditor-General.

INSPECTORS' REPORT ON THE DISTRIOT HIGH SCHOOLS. g IR We have the honour to submit the following report on the higher work of the District High Schools for the year 1898. The tabular statements show the subjects taught, the number of pupils examined, and the amount of work done in each subject.

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