Yellowknife (Oct 22/03) - Yellowknife Catholic Schools ended its fiscal year with plenty of cash in reserve funds, but faces a growing operating deficit, said Mike Huvenaars, assistant superintendent of business.

Board trustee Nancy Gardiner presented the finance report to the board based on the audited financial statements of the district by MacKay LLP chartered accountants.

The report was for the fiscal year ending June 30, 2003. The district received a clean audit opinion for the year.

YCS is showing a $169,295 operating deficit, and a deficit is expected for next year as well, according to the report.

The financial report said the deficit is partly due to a $55,263 over-run on maternity benefits and moving costs and spending $81,375 more than was budgeted on support teachers and classroom assistants.

Despite the operating deficit, YCS has $1,519,108 cash in three separate reserves.

"Our financial situation is good," said Huvenaars. "We have enough operating money for the year."

YCS anticipates spending the $934,427 capital reserve on the construction of the Career and Technical Centre currently being built.

"Because we have this commitment to build the CTC, a lot of it (the reserve) is spoken for," says Huvenaars.

The centre will be finished within the 2003/2004 fiscal year.

The district meets the Department of Education, Culture, and Employment guideline of maintaining a surplus of five to 10 per cent of operating revenue for this audit, but will not next year.

According to the finance report, YCS equity will fall well below the guideline for 2003-2004.

YCS recognizes the need to increase revenue and decrease spending to meet the guideline, Huvenaars said.

He said the district is looking at ways to increase revenue for next year, including fundraising through the toy lending library, and an increase to the operating grant to match enrolment increases.