The Humane Society Yukon (HSY) has been cleared to receive the nearly $40,000 in government funding withheld for the last four months while it worked to get its books in order.

The troubled organization is not officially back in good standing with the Yukon's registrar of societies.

However, the Department of Community Services has decided the society has taken enough steps in the right direction to warrant the money.

Technically, getting into good standing with the registrar and meeting the conditions of a government contribution agreement are two separate processes, explained Matt King, a Community Services spokesperson.

"Good standing is not a direct requirement (in contribution agreements),” King said Tuesday. "We are required to look at risk, though, and not being in good standing affects risk.”

Situations are examined on a case-by-case basis, King said.

Under its contribution agreement with the government, the HSY, which runs the Mae Bachur Animal Shelter, received half of its $79,000 government funding for the year in April 2012.

The second half was scheduled to be delivered at the end of September.

That last amount of money was withheld after a report from the registrar said the then-board of directors lacked the appropriate financial records and was banning members from the shelter without cause.

The high-profile case made it all the way to the Yukon Supreme Court. A judge ordered the members be reinstated and a new board of directors be elected.

At the time, the court heard that the shelter was in financial crisis, forcing the organization to lay off employees and shut its doors to new animals.

Under the agreement with the government, the newly-elected board was required to present a financial statement for the 2011-2012 fiscal year as well as a budget and some statistical information, King said.

Now that that has been done, the money will be released later this week.

"The board is following through with the steps to come into good standing and has completed all the steps that are listed under our contribution agreement,” King said.

These types of contribution agreements with the government are signed on an annual basis.

The HSY does not currently have a funding agreement in place with the government for the 2013 fiscal year, but King said it would be open to discussing one.

For newly-elected HSY president Seann Springford, obtaining the large sum of money is a relief.

"I'm really pleased with YTG's response to the issue,” he said.

He believes the government is recognizing all the hard work being done to to straighten out concerns, he added.

Even with the influx of cash, the group is still about $10,000 in debt, he estimated.

A number of fund-raisers are being planned, including during the upcoming Yukon Sourdough Rendezvous festival.

Meanwhile, the HSY still needs to get back in good standing with the registrar, something that is required in order to hold some types of fund-raisers events like bingo.

To do that, a special meeting must be called to present all the completed financial statements to the membership.

If all goes as planned, that meeting could be held some time next month, Springford said.

At the Tlingit Street shelter, things are beginning to get back to normal. Animals from the public are being accepted again.

With only a small staff, the shelter can safely handle about 15 adult dogs and 10 adult cats, shelter manager Amanda Farrell said today.

There are currently 14 animals in the staff's care.