The Federation of Sovereign Indigenous Nations (FSIN) has expressed its inability to provide a comprehensive response to a critical forensic audit without access to the complete report, which identified $34 million in “questionable” expenses. Representing 74 First Nations in Saskatchewan, the organization asserts that it adhered to all protocols, furnished extensive documentation to support its actions, and maintains a robust financial control system.
Following allegations of transparency issues and improper expenditures at FSIN, Indigenous Services Canada (ISC) published a summary report of the forensic audit. This prompted a group of First Nations leaders to demand clarifications from FSIN leadership. FSIN refrained from commenting on the audit until recently, highlighting the need to peruse the full audit report, not just the public summary, to adequately address the allegations.
FSIN’s news release indicated that ISC had not responded to multiple requests for the complete report. However, an ISC spokesperson clarified that while FSIN had not requested the full audit, they had sought details of the audit findings, including the full report. ISC plans to share the line-by-line audit samplings with FSIN promptly but will not provide the full report due to its sensitive nature containing protected and personal information.
The audit, conducted by KPMG on behalf of ISC, focused on a significant allegation concerning $30 million in COVID-19-related funding received by FSIN between April 1, 2020, and March 31, 2023. The audit highlighted $23.5 million in related expenditures as questionable. FSIN refuted the claim of undocumented COVID-related spending, stating that receipts and invoices were provided for all expenditures.
FSIN emphasized the urgent and essential response to the COVID-19 pandemic, underscoring the impact on reducing infections and saving lives, particularly among vulnerable populations. Additionally, the audit summary report identified eight other instances of inappropriate transactions, spanning travel expenses to administration fee usage.
In response, FSIN attached a 10-page “fact sheet” to its news release, detailing its rebuttals to each allegation. The audit summary report recommended that FSIN enhance its policies on procurement, hiring, accounting practices, and expense approvals.
FSIN proposed that not all First Nation entities are adequately prepared for extensive audits and suggested the establishment of a First Nations auditor general by Ottawa. The organization criticized the audit process, stating that it may set them up for failure and called for systemic changes to promote transparency and accountability as collaborative efforts to enhance First Nations’ capacities.
CBC attempted to seek further comments from FSIN without success. ISC stated that it has established protocols to thoroughly investigate any allegations and take appropriate actions when necessary.
