Yellowknife (Sep 22/04) - Despite major renovations and recent acquisitions, the Yellowknife Catholic School board is still in the black, according to its annual financial report.

The report was discussed at the board's first meeting of the new school year last Wednesday at Ecole St. Joseph school.

YCS started the 2005 fiscal year, which began July 1, with an operating fund surplus of $139,424. That's down from $216,022 at the beginning of the 2004 fiscal year, and $732,347 at the beginning of the 2003 fiscal year.

But the board isn't losing money, just spending it on projects.

YCS superintendent Kern Von Hagen said that traditionally YCS has had a "very healthy" surplus, but there were plans for the money.

In recent years, YCS has created and stocked the Kimberlite Career and Technical Centre at a cost of around $2 million, not including staff. It also spent $1.7 million to buy and renovate its central services building.

"If we were to apply all that to the surplus, we'd supersede even YK1 right now," Von Hagen said.

Recently, Yellowknife Education District No. 1 announced it had a $1 million surplus.

Another reason for the lack of surplus is that three YCS collective agreements have been resolved recently, said Von Hagen, who called budgeting a "balancing act."

"We've been healthier in the past," the superintendent said. "(Money is) a little tight, but we'll build it back up."

Von Hagen added that YCS hasn't had a budget deficit in at least 10 years.

The present surplus is "not a large amount," according to Mike Huvenaars, assistant superintendent for business with YCS.

Auditor John Laratta of Mackay LLP told the board that the Department of Education Culture and Employment recommends -- but doesn't order -- that school districts keep an overall reserve of five to 10 per cent of the money they receive yearly.

Laratta called the audit "clean."

Huvenaars said following the recommendation would amount to a surplus of around $600,000 for YCS, and for the time being that approach is unreasonable.