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introduction of manual subjects into the lower classes. Owing in some measure to a want of the necessary knowledge on the part of the teachers, but more particularly, the Board ventures to think, to the formalities to be observed in order to obtain the Minister's approval, little headway has been made. In a number of cases where the programmes submitted have been accepted the Board has made, out of its very limited means, an advance in order to provide funds for the purchase of material. No assistance has as yet been forthcoming from the Department for apparatus. The Board is convinced that solid progress cannot be expected without some modification of the existing regulations, which in some respects have proved extremely harassing during the past year. With a large number of schools to deal with, it is absolutely essential that the means of securing official recognition of the classes should be as simple as possible, and that the applications of the Board for payment of capitation earned should meet with a ready response. The classes in woodwork have been continued at the Normal School and at Leeston, at which latter centre steps have been taken to establish a class in ironwork. The cookery classes at Doyleston have also continued in operation. During the last term of the year woodwork classes under Mr. Sandford, and technical classes under Mr. Just, were held at Lyttelton. The report of the instructor shows the number of pupils who have attended the woodwork classes during the year, together with the attendances for each quarter. During the year, in order that teachers might prepare themselves for giving instruction to their pupils, the Board has paid the fees of a large number of teachers in attendance at approved classes in manual and technical instruction. At the date of this report about three hundred teachers are attending the several classes at the Normal School, School of Art, and School of Domestic Instruction, in which connection it is pointed out that the Board's ability to continue free instruction must necessarily be limited by the amount granted by the Department for the purpose. I have, &c, The Hon. the Minister of Education, Wellington. D. Buddo, Chairman.

General Statement of Eeceipts and Bxpenditueb for the Year ending 31st December, 1901. Receipts. Expenditure £ s. d. Balance— £ s. d. Office Staff—Salaries .. .. .. 895 3 0 On Building Account .. .. 98 12 0 Departmental contingencies .. .. 496 9 2 On General Account.. .. .. 3,167 14 3 Inspectors' salaries and travelling-ex-Government grant for buildings .. 8,688 13 5 penses .. .. .. .. 1,677 10 3 Other receipts for buildings— Truant Officer's salary and expenses .. 154 16 11 Sale of old material .. .. .. 54 19 10 Examination of pupil-teachera .. .. 59 0 5 Part oost of fencing and repairs .. ■ 12 6 0 Scholarships— Contractors'deposits .. .. 149 19 3 Paid to scholars .. .. .. 1,211 10 0 Statutory capitation— Examination expenses .. .. 105 10 4 Amount paid by Government.. .. 48,852 4 1 Training of teachers .. .. .. 1,749 12 7 Amount paid by School Commissioners 12,990 18 8 Teachers'salaries .. .. .. 54,912 17 8 Addition to statutory capitation —For Teachers' house allowances .. .. 408 1 9 teachers'salaries .. .. .. 2,814 9 0 Incidental expenses of schools .. .. 6,579 5 0 Scholarship grant .. .. .. 1,298 310 School buildingsDistrict High School—Capitation .. 28 10 0 New buildings .. .. .. 2,071 0 2 Inspection subsidy .. .. .. 500 0 0 Improvements of buildings .. .. 4,957 10 5 Grant for training of teachers .. .. 500 0 0 Rebuilding schools destroyed by fire .. 293 3 11 Manual and technical instruction— Furniture and appliances .. .. 210 13 11 Capitation for— • Sites .. .. .. .. 429 3 8 School classes .. .. .. 9 7 6 Plans, supervision, and fees .. .. 583 13 1 Special classes (ordinary) .. .. 41 7 2 Manual and technical instruction— Associated classes (ordinary) .. 61 12 6 Salaries .. .. .. .. 93 8 0 Grants for— Travelling-expenses .. .. .. 13 6 Encouragement of swimming .. 45 1 5 Payment to teachers'classes.. .. 163 17 9 Apparatus .. .. .. 100 0 0 Capitation paid to managers of assoTeachers' classes .. .. .. 200 0 0 oiated classes .. .. .. 93 211 Teachers' railway fares .. .. 34 0 3 Material .. .. .. .. 712 10 Other receipts— Buildings .. .. .. .. 13 9 4 Sale of timber .. .. .. 016 7 Apparatus .. .. .. .. 31 17 11 Fees .. .. .. .. 29 4 9 Incidentals .. .. .. .. 27 16 3 Grants for rebuilding schools destroyed Other expenses — by fire .. .. .. .. 233 8 0 Contractors' deposits refunded . .. 233 0 3 Rent of buildings, sites, and reserves .. 43 4 3 Exohange on cheques .. .. 23 0 3 Refund of insurance premium .. 019 4 Gammack scholarships .. .. 218 010 Half-cost of Stewart's appeal case .. 3 2 0 Reserve 777, exchange .. .. 0 10 Truancy Office—Court fees .. .. 10 0 Enoouragement of swimming.. .. 45 12 6 Education Acts .. .. .. 0 7 0 Royal visit expenses .. .. .. 22 7 1 Gammack scholarships .. .. 200 0 0 Reserves at Kaikoura—Bush, &c, not to Akaroa High School Board—Grant .. 25 0 0 be removed : Advertising .. .. 2 0 0 Balanoe — On Contractors' Deposit Acoount .. 50 14 6 On Building Aocount .. .. 408 18 7 On General Account .. .. 1,953 15 4 £80,185 1 1 £80,185 1 1 D. Buddo, Chairman. H. C. Lane, Secretary. Examined and found correct.— J. K. Waebueton, Controller and Auditor-General. 12— E. 1.