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G-enebal Statement of Eeceipts and Expenditure for the Year ending 31st December, 1901. Receipts. Expenditure. £, b. d. Balance— £ a. d. £ s. d. Office staff—Salaries .. .. .. 80 0 0 On General Account, Cr. . . 654 7 5 Departmental contingencies .. .. 159 9 7 On Building Account, Dr. .. 228 18 11 Inspector's salaries and travelling-expenses 394 0 0 425 8 6 Truant Officer's salary and expenses .. 16 0 0 Government grant for buildings .. 900 0 0 Scholarships—Paid to scholars .. .. 139 0 0 Other receipts for buildings— Teachers'salaries .. .. .. 6,413 8 11 Special grant, Rai Valley .. .. 142 10 0 Teachers' house allowances .. .. 13 0 0 Richmond Brook and Starborough .. 174 0 0 Incidental expenses of schools .. .. 480 710 Rent of old school building .. .. 9 0 0 School buildings— Sale of old building .. .. .. 10 0 0 New buildings .. .. .. 1,291 9 0 Statutory capitation— Improvements of buildings .. .. 236 7 1 Paid by Government .. .. .. 6,460 12 6 Furniture and appliances .. .. 50 010 Paid by School Commissioners .. 260 0 0 Rent of buildings used for school purposes 26 0 0 Addition to statutory capitation—For Sites .. .. .. .. 169 16 11 teachers'salaries .. .. .. 435 15 6 Plans, supervision, and fees .. .. 39 15 6 Scholarship grant .. .. .. 130 19 4 Manual and technical instruction— Inspection subsidy .. .. .. 200 0 0 Shorthand classes .. .. .. 15 0 0 Grant for manual and technical instruction 75 0 C Travelling-expenses of teachers attendGrant for swimming .. .. .. 416 0 ing lectures .. .. .. 712 6 Other receipts— Other expenses— Rent of school reserves .. .. 813 3 Books purchased .. .. .. 263 4 0 Fees, shorthand classes .. .. 6 0 0 Deposits .. .. .. .. 15 0 0 Books sold .. .. .. .. 269 6 6 School libraries .. .. .. 14 0 Alquist (rent) .. .. .. 10 0 0 Refund, Alquist (rent) .. .. 10 0 0 Refund of subsidy .. .. .. 210 0 Drawing-examination fees .. .. 0 4 10 Balanoe — £ s. d. Building Account, Dr. . . 806 18 3 General Account, Cr. .. 510 18 6 295 19 9 £9,820 16 2 £9,820 16 2 A. P. Seymouk, Chairman. John Smith, Secretary. Examined and found correct. — J. K. Warbueton, Controller and Auditor-General.

NELSON. Sir,— Education Office, Nelson, 19th March, 1902. I have the honour to lay before you a report of the proceedings of the Education Board of the District of Nelson for the year 1901. The Board.—For another year there has been no change in the personnel of the Board, the retiring members having again been re-elected. The following are the members of the Board : viz., Messrs. George Talbot (Chairman), John D. Beuke, Thomas Bailie, Philip Best, William Lock, William Henry Phillips, William Norris Franklyn, Andrew Thomas Maginnity, and Thomas J. Baigent. During the year the Board has held twelve monthly, thirteen adjourned, and two special meetings, the average attendance at each meeting being 7'B. District High Schools. —According to the report of the Inspector, good work continues to be done at the District High School at Westport, and the increased attendance tends to prove that the establishment of the school supplies a need that must have been keenly felt. The rollnumber at the beginning of the year was twenty-seven ; at its close thirty-three. A district high school having been sanctioned for Motueka, a new room in which to carry on the work of secondary education is being erected and is expected to be ready for occupation by the end of January. A proposal is being made for the establishment of a district high school at Reefton ; but this is a matter that will require very careful consideration before any definite action is taken. Elementary Schools. —There were 124 of these schools open at the end of the year 1900, six of which have been closed. Three new schools have been opened, so that the number of schools at work at the end of the past year was 121. School Districts. —One new school district has been constituted during the year (Birchfield), bringing the total number up to sixty-eight. Attendance of Scholars. —The average weekly number on the roll of the schools of the district during the previous year was 5,844-75 ; during the past year it was 5,715-75 —a decrease of 129. The average attendance during the previous year was 4,844-75, and during the past year 4,73350 —a decrease of 111-25. This continuing decrease in the number of children in the public schools of this education district is very extraordinary, and appears to be unaccountable. School Buildings.—During the year new schools have been erected at Denniston and Upper Tadmor, a new room has been added to the Central School in Nelson and to the junior division of the Westport District High School, and a teacher's house has been built at Millerton. These comprise the more important of the buildings erected during the year; while the sum of £825 has been expended in minor works—repairs, painting, and general upkeep of school buildings. Board's Funds. —The Board's General Account showed a debit balance at the beginning of the year of £471 15s. 9d., with liabilities £144 os. 10d.; at the end of the year the debit balance was £1,361 4s. Id., and the liabilities £401 13s. The Building Account at the beginning of the year had a credit balance of £1,790 Bs. lid., with liabilities amounting to £2,181 13s. ; at the end of the year the credit balance was £823 2s. 4d., with £2,000 due from the Government, and liabilities £810 16s. I cannot conclude this report without pointing out the fact that this large debit balance on the General Account is not the result of any extravagance on the pare of the Board, but is the outcome of the refusal of the Audit Department to permit the Board to adjust its two accounts by the repayment to the General Account of certain sums of money which had aforetime been lent to the Building Fund. I have, <fee, The Hon. the Minister of Education, Wellington. Geo. Talbot, Chairman. 11— E. 1.