Yellowknife (Feb 11/05) - The Yellowknife Legion branch wasted no time finding ways to spend a $160,000 lottery proceeds surplus, as it handed over $50,000 to Facilities for Kids.

City Hall is currently investigating Legion finances after it was discovered that the club wasn't spending enough of its lottery proceeds on charities.

Under city bylaw, organizations must spend at least 55 per cent of lottery proceeds on charity.

The club was also charged with operating a lottery without a licence when it was found they didn't have one between late June and December last year.

Deputy mayor Wendy Bisaro said the Legion will be paying $3,000 to the city for the time they were not licensed.

"They agreed they ran these lotteries without licences and they will pay," Bisaro said.

Dave Devanna, director of finance at City Hall, said the Legion was running its raffles and fundraising events without a licence from June 28 until Dec.3, 2004, when the Legion finally renewed its licence.

Devanna said the amount of the licence, in this case $3,000, depends upon the number of events and the prize payout.

When news of the lottery surplus broke last week, the club said the money was left sitting in a bank because they haven't received enough applications from prospective charity groups to spend it all.

"Now we're getting proactive," said club vice-president Dave Paul, Wednesday, after he and club president Lloyd Lush presented the $50,000 cheque to Facilities for Kids president Kevin Stapleton.

Stapleton said he was "extremely happy" to receive the money. He said it will help pay for construction of a styrofoam landing pit in the gymnastics gym at the Multiplex.

It doesn't appear likely the Legion will have to wait very long to hand out the rest of the surplus.

Capt. Al Hoeft of the Salvation Army stopped by with a request letter of his own.

He said the Legion has consistently given money to the Salvation Army every year - typically about $5,000 around Christmas time.

"It's probably close to pushing $100,000 in the 15 years I've been here," said Hoeft.

"The Legion is an ongoing partner in all that we do."

-- with files from Dorothy Westerman