EL— 1

Of the total number of pupils in attendance 91 per cent, were receiving free education under the Regulations for Free Places. Junior free places were held by 1,695 pupils, an increase of 156, and senior free places by 220 pupils, a decrease of 10. Over 50 per cent, of the pupils who entered the technical high schools in 1915 as first-year junior free pupils continued to attend in 1916, while about 22 per cent, of the pupils who completed the second year of their junior free places in 1915, having qualified for senior free places, continued to attend in 1916. Of the pupils who left on completing their junior free places in 1915, 28 per cent, qualified for and were admitted to senior free places at evening classes in 1916. The rates of capitation vary from £12 10s. a year for first-year free pupils to £15 for third-year free pupils, and from £8 ss. to £10 in the case of other pupils. Capitation amounting to £23,295 was earned in respect of 2,029 pupils, of whom 1,845 were free pupils, as compared with £20,985 for the previous year. The rates of payment for pupils who qualified for capitation were £11-93 in the case of free pupils and £6-97 in the case of other pupils. To earn the full rate an attendance of not less than 800 hours a year is required. The scale of payments hitherto in force has been recently amended with the view of simplifying the computation of claims and at the same time of augmenting the funds at the disposal of controlling authorities. Coincidentally, a system of regular monthly payments has been inaugurated, the total effect being to place the finances of the technical high schools in a more favourable position than heretofore. Under the new scale the rate of payment in respect of free pupils who qualified for capitation in 1916 works out at £12-7 per pupil. Financial. The total capitation earnings of all classes, including technical high schools, was approximately £58,066 (giving a rate of £2-9 per student as compared with £2-6 for the previous year), of which £24,723 was earned by classes conducted by Education Boards, £29,284 by classes conducted by Technical School Boards and Managers, and £4,059 by classes conducted by University Colleges and High School Boards. The following is a summary of receipts from all sources and of expenditure for 1916 in respect of classes conducted by Education Boards or High School Boards, or by Technical School Boards or Managers (including in each case technical high schools) : — , Classes conducted by RECEIPTS. Education or Technical School High School Boards or Boards. Managers. £ £ Capitation .. .. .. .. ..27,153 29,300 Class fees .. .. .. .. .. 3,822 4,834 Voluntary contributions and subsidies thereon .. 2,529 5.239 Grants for buildings, &c. .. .. .. ..1,997 1,602 Sundry receipts .. .. .. .. ..4,874 6,585 Totals for 1916 .. .. .. 40,375 47,560 Totals for 1915 .. •.. .. £40,131 £49,767 Expenditure. Staff salaries .. .. .. .. .. 23,722 29,072 Working-expenses .. .. .. ..8,642 12,109 Buildings, &c 6,017 5,193 Totals for 1916 .. .. ..38,381 46,374 Totals for 1915 .. .. ..£34,789 £46,084

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