The federal government has requested the Federation of Sovereign Indigenous Nations (FSIN) to repay more than $28.7 million following a detailed examination of its expenditures. Indigenous Services Canada, in a letter dated March 13 to the FSIN, responds to the findings of a forensic audit by KPMG, which scrutinized FSIN’s utilization of federal funding from April 2019 to March 2024. The audit identified $34 million in transactions that were questionable, ineligible, or lacked supporting documentation.
The letter dated March 13 outlines that nearly $24 million in expenditures were categorized as “unsupported,” and approximately $4.8 million as “ineligible,” with both amounts deemed repayable. Additionally, Indigenous Services Canada expects FSIN to implement corrective actions to address the identified issues, enhance internal controls, and ensure compliance with program guidelines.
FSIN has until April 2 to either provide additional records or challenge the audit findings. According to a statement to CBC News, Indigenous Services Canada confirmed sending the letter on March 13, emphasizing the importance of accountability in the utilization of public funds.
The audit highlighted concerns about the management of federal funds, particularly regarding COVID-19 spending. The audit pointed out documentation gaps in over $23 million related to COVID-19 expenditures that lacked sufficient proof of eligibility, including shipping invoices, bills of lading, and customs declarations. Furthermore, around $12,500 was flagged as ineligible due to unrelated COVID-19 expenses.
Various issues were identified in the audit, such as the misuse of administration fees, ineligible purchases of fleet vehicles, unclear travel expense justifications, questionable procurement practices, and improper payments to a former employee and their consulting company. These findings collectively indicate systemic financial management issues within FSIN.
Rob Louie, president of the Band Members Alliance and Advocacy Association of Canada, shared the letter online after receiving it from an anonymous source connected to one of FSIN’s constituent bands in Saskatchewan. Louie emphasized the importance of transparency, stating that taxpayers’ money allocated to FSIN necessitates accountability and transparency for the constituents.