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of the teachers was generally satisfactory, and in many cases good progress was made. A verv successful exhibition of manual work done by both pupil's and teachers was held at the conclusion of the classes. Physical Drill.—This subject is taught in every school in the district. In the seven largest schools cadet corps have been established, and the cadet movement has led both teachers and pupils to take a lively interest in their drill and physical exercises. Drill-classes for male teachers were conducted by Major Crawshaw during the year, and these are sure to lead to greater efficiency in the teaching of the subject. Buildings.—The total expenditure on buildings for the year was £2,017 165.; the amount for 1902 was £2,884 15s. This expenditure may be classified as follows :—New buildings, £787 17s. 3d.; repairs and improvements, £813 10s. 9d.; furniture and appliances, £183 3s. 2d.; sites £87 10s. 6d. ; plans, supervision, and sundries, £145 14s. 4d. The amount received from the Government for buildings was £2,l7s—ordinary grant, £1,900; rebuilding Kapua, £275. Among the more important works undertaken during the year were new schools at Kapua, Skipton, Chamberlain, and Willowbridge. Additions were made to both school and residence at Milford, and a residence was attached to the school at Waikakahi. Extensive repairs and painting were carried out at Timaru Main, Temuka, Orari South, Kingsdown, Sutherlands, Albury, Glenavy, Cave, Orari Gorge, Te Moana, Arundel, Claremont, Gapes Valley, and Hilton. The Board learns with some satisfaction that the new principle on which the Government votes for school buildings are to be distributed will put the Board in a slightly better position to meet the numerous demands for repairs and improvements to its buildings. Finance.—The balance-sheet will show that so far as the Maintenance Account is concerned the Board is in a good financial position, which has improved a little during the year. The Building Account was in credit £516 10s. 9d. on the 31st December, but against this were liabilities due and coming due on contracts and grants to Committees that reduced the balance to £31 19s. We have, &c, W. B. Howell, Chairman. A. Bell, Secretary. The Right Hon. the Minister of Education, Wellington.

General Statement of Receipts and Expenditure for the Year ending 31st December, 1903. Receipts. £ a. d. Expenditure. £ s d Balance at beginning of year .. .. 1,737 17 2 Staff salaries and clerical assistance 1,306 2 6 Grants from Government for— Office contingencies .. .. .. 313 13 6 Teachers' and pupil-teachers' salaries, Teachers' and pupil-teachers' salaries, and and allowances to pupil-teachers ..13,104 0 6 allowances to pupil-teachers .. ..16,464 17 7 Reserves revenue for primary education 3,344 13 9 Drill-instruction .. .. .. 25 0 0 Capitation at lis, 3d., and grant of £250 2,682 2 0 Incidental expenses of schools .. .. 1,046 5 9 Capitation at 6d. for relieving-teachers .. 108 2 3 Scholarships and examination expenses .. 369 0 8 Drill-instruction .. .. .. 25 0 0 Salaries of staffs of District High Schools, Other grants — Refund -of carriage on paid out of special receipts .. .. 860 11 4 South Kensington students' works .. 19 2 Manual and technical instructionReceipts from other sources—Rents, £88 Instructors' salaries and travelling ex17s. 9d.; truancy fines, £4 9s. 6d. ; Can- penses .. .. .. .. 146 18 5 nington S.C. balance, £4 6s. :S. Gilling- Students' travelling-expenses .. '. 313 6 ham, map, £1 Is.; Waimataitai gallery, School classes .. .. .. 41 8 5 Bs. ; plasticine sold, 4s. 3d. .. .. 99 6 6 Special classes .. .. .. 3 5 0 Grants from Government for— Associated classes .. .. .. 199 17 0 Scholarships.. ... .. .. 330 8 7 Maintenance of school buildings .. .. 1,063 13 3 District High Schools .. .. 775 10 0 House-allowances .. .. .. 222 10 0 Subsidy from Waimate High School Board 99 18 6 New schools, additions, sites, &c. .. 954 2 9 Grants from Government for manual and Buildings, class-rooms, furniture, &c, for technical instruction— manual and technical purposesCapitation on attendance at classes .. 262 1 7 School classes .. .. .. 34 5 2 Material for class-work .. ~ 6 6 9 Special classes .. .. ~ 21 15 6 Instruction of teachers .. .. 125 0 0 Associated classes .. .. .. 663 1 3 Subsidies on voluntary contributions and Balance at end of year .. .. .. 2,231 18 1 bequests .. .. .. .. 91 13 0 Grants from Government for— Maintenance of school buildings, &c. .. 1,900 0 0 House-allowances .. .. .. 219 10 0 New schools, additions, sites, &c. .. 275 0 0 Technical-school buildings, fittings, &e. 692 1 8 Other receipts— Willowbridge subsidy—Building Account 67 18 3 Interest on fixed deposit .. .. 20 0 0 Sale of closets, Greenhills .. .. 4 0 0 5 - 971 19 8 £25^971^1 Wm. B. Howell, Chairman. 11th March, 1904. A. Bell, Secretary.

OTAGO. Sir,— Education Office, Dunedin, 31st March, 1904. In accordance with the provisions of section 102 of " The Education Act, 1877," the Education Board of the District of Otago has the honour to submit the following report of its proceedings for the year 1903. Board.—At the beginning of the year the Board was composed of the following members : Rev. P. B. Fraser, M.A., Messrs. Thomas Mackenzie, M.H.R., James Mitchell, James Sim, Alexander Marshall, 8.A,, Robert Peattie, M.A., Donald Borrie, William Nicholson, and'

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