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Financially, the Board has reason to congratulate itself on the satisfactory result of its first year's control of technical education in Southland. The total sum received up till the 31st December was £399 lis. 4d., and the expenditure for the same period was £418 17s. The chief items of receipts were as follows : Government grants for (1) capitation £54 ss. 3d., (2) apparatus £114 18s. 7d., (3) subsidy on voluntary contributions £7 12s. 6d. ; from students' fees, £213 Is. 6d.; amount handed over to the Board by the Technical Classes Association, £9 13s. 6d. The aggregate of expenditure was made up as follows : Instructors' salaries, £253 15s. ; material, £11 16s. Id. ; apparatus, £127 19s. Bd. ; rent, £1; and incidentals, £24 6s. 3d. The foregoing figures do not represent the aggregate financial results of the year's operations, as several sums due by the Government in respect of capitation earned by the classes were not received before the close of the year, while considerable liabilities also existed at that date. It is perfectly safe to assume, however, that the general financial results of the year's work will be a substantial sum to the credit of the Technical Instruction Account wherewith to commence and carry on next year's operations. Repoet of Inspectors of Schools. It remains to say something of handwork. The subject has for many years occupied an important place in our infant departments in the form of kindergarten exercises. It is now taking definite shape in the upper classes also. During the past year there were taken up, in addition to the usual kindergarten, paper cutting and mounting, modelling in plasticine and (in one school) brushwork. The visit of the Department's technical Inspectors in June, and the special grant, with the consequent establishment of classes for the instruction of teachers, have tended to win for handwork a still more prominent position in our primary-school course. We estimate that the absolute limit to the usefulness of this new subject will be attained by two hours' instruction per week. That would give something like five hundred lessons of an hour's duration to an average school course. Approximate Cost of Paper. —Preparation, not given; printing (1,650 copies), £15 4s.

By Authority : John Mackay, Government Printer, Wellington.—l9o2. Price 9d.]