E.—l

As will be seen from their report, the Inspectors consider that the prescribed table of standard passes is a very inadequate expression of the condition of the schools, that the new regulations make the standard pass too easy, and that the too easy passing of the pupils in the standards below Standard VI. must necessarily reduce the efficiency of the work done in Standard VI. It is their opinion that a pupil who fails in two important subjects of any class should not be promoted to a higher class. A considerable number of the passes included in the table annexed to the Inspectors' report are passes with failure in two important subjects. In the pass and additional subjects the general marks are the same as those of last year ; but in the class subjects the mark has dropped from satisfactory to fair. The Inspectors think that the lower mark is due to two circumstances—(l) that the Dunedin and suburban and some other large schools are unrepresented in the table; (2) that the working-year of the schools represented in it was too short for the achievement of good educational results. The schools represented in the table worked on the average only 193 days, and those unrepresented in it only 196 days. In other words, the average number of working-days on which the schools were closed was 66-J-, or a little over thirteen weeks. The results show that more than half of the small schools in which a Standard VII. class is taught are doing work of quality that ranges from satisfactory to very good. In their report the Inspectors discuss the question of making better provision than is now made for instruction in work beyond the standard requirements. By order of the Board. The Hon. the Minister of Education, Wellington. P. G. Pryde, Secretary.

General Statement of Eeceipts and Expenditure for the Year ending 31st December, 1901. Receipts. Expenditure. £ a. d. Government grant for— £ b. d. Balance.. .. .. .. 1,960 15 3 Buildings .. .. .. 6,000 0 0 Office stafi—Salaries .. .. 1,146 010 Removal of school buildings at Lauder .. 160 0 0 Departmental contingencies .. .. 364 9 1 Other receipts for buildings— Inspectors'salaries and travelling-expenses 2,225 0 0 Local contributions .. .. 40 8 5 Truant Officer's salary and expenses .. 77 2 0 Pembroke Churoh .. .. 19 3 0 Examination of pupil-teachers .. 27 18 7 Statutory capitation— Scholarships— Paid by Government .. .. 56,422 14 6 Paid to scholars .. .. .. 1,276 11 3 Paid by School Commissioners .. 9,451 14 4 Examination expenses .. .. 55 9 6 Addition to statutory capitation — For Training of teachers .. .. 915 9 2 teachers'salaries.. .. .. 2,074 14 0 Teachers'salaries .. .. .. 55,997 13 1 Scholarship grant .. .. .. 1,300 15 1 Teachers'house allowances .. .. 240 0 0 District High Schools—Capitation .. 599 10 0 Pupil-teachers' lodging-allowances .. 192 0 0 Inspection subsidy .. .. .. 500 0 0 Incidental expenses of schools.. .. 4,656 19 8 Grant for training of teachers .. .. 500 0 0 School buildings— Manual and tcohnical instruction — New buildings .. .. .. 2,302 19 1 Capitation for— Improvements of buildings .. .. 3,060 9 4 School classes at Tokomairiro .. 29 3 8 Rebuilding schools destroyed by fire .. 6 8 0 Special classes (School of Art and Furniture and appliances .. .. 229 14 11 Design) .. .. .. 354 16 6 Rent of buildings used for school purGrants for— poses .. .. .. 28 15 0 Training of teachers -~ .. 200 0 0 Sites .. .. .. .. 79 0 0 Swimming .. .. .. 47 17 6 Plans, supervision, and fees.. .. 347 0 10 Grants for rebuilding schools destroyed by Pembroke Churoh buildings.. .. 19 3 0 fire .. .. .. .. 46 10 0 Manual and technical instruction— Grant for Pomahaka Sohool .. .. 40 0 0 Salaries, School of Art and Design .. 656 18 4 Distriot High Sohool fees .. .. 610 0 Payments to Committees (Tokomairiro) 29 3 8 Fees for manual and teohnical instruction 278 3 0 Grant, Dunedin Technical Classes AssoOther receipts— ciation .. .. .. 75 0 0 Truancy fines .. .. .. 18 0 Incidentals, School of Art and Design .. 75 2 3 Rent of offices (School Commissioners).. 81 5 0 Other expenses — Science and art examinations (fees) .. 15 4 6 Truanoy fines paid to Sohool Committees 2 8 0 Transfer of balances of Committees of Members' expenses .. .. 261 15 11 schools closed .. .. .. 36 2 2 Gymnastio instruction .. .. 166 2 0 Rents of school-sites .. .. 48 12 0 Interest and bank account .. .. 46 12 3 Sale of ink-wells .. .. .. 14 0 Scienoe and art examinations .. 15 4 6 Expenses of Royal visit: School Com- Inspection expenses .. .. 16 10 6 missioners and High Schools Board Manual and technical instruction of "The Local Authorities Indemnity Aot, ■ 613 4 teachers .. .. .. 107 13 1 1901": Reception of Duke and Swimming .. .. .. 16 5 0 Duchess of Cornwall and York Royal visit: "The Local Authorities^ Rent of room .. .. .. 10 0 Indemnity Act, 1901" „., _ Reoeption of Duke and Duchess of f Cornwall and York J Balance— £ s. d. On General Acoount, Cr. 4,005 3 11 On Building Acoount, Dr. 2,442 13 9 1,562 10 2 £78,263 9 0 £78,263 9 0 P. G. Peyde, Secretary and Treasurer. Examined and found correct. — J. K. Warburton, Controller and Auditor-General.

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