FSIN audit questions over $34 million in expenses

The Federation of Sovereign Indigenous Nation (FSIN) is being asked to explain expenses totalling $34,251,566.

The findings of an audit, conducted by Indigenous Services Canada, were shown to the executive leadership on Thursday in Saskatoon through a PowerPoint presentation. A copy of the KPMG report was provided to paNOW.

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The results are divided into the categories of ‘ineligible’, ‘questionable’, and ‘unsupported’. The summarized transactions reviewed show $3,732,982 as ineligible program expenditures, $30,362,990 as questionable and $155,595 as unsupported.

A large portion of the money flagged in the report is in regards to the $30,024,786 the FSIN received in COVID-19 related funding between April 1, 2020 and March 31, 2023.

“We reviewed $26,487,310 of COVID-19 expenditures, accounting for 88.2.% of the population,” the report read.

It found questionable expenditures from the COVID funding totalling $23,451,907.

There’s also questions related to $7,925,783 for administration fees and $962,796 for the money paid out for the FSIN’s new office building.

In another example cited in the report, photocopy charges exceeded actual costs by $73,974.

There’s also a reference of calculated overpayments to the former Executive Operating Officer, through salaries and contracts; $246,524 is classified as ineligible.

“The former EOO received a severance payment that appears to have been inappropriate as they were re-employed within one week of the payment, which appears to contravene with FSIN’s Human Resource Management Regulations, and the former EOO resigned prior to being terminated without cause by FSIN leading to the severance payout.”

At the time the audit was initially discussed in March of 2024, it was revealed the audit would cover all expenditures related to funding from April 1, 2019 to present day.

ISC has not yet confirmed the audit’s conclusion.

“To respect privacy, we do not comment on specific forensic audits beyond confirming if one is being undertaken. Once a forensic audit is final, a summary of the findings will be published on the Department website,” they said in an emailed statement.

A number of First Nations leaders have confirmed for paNOW that the findings are accurate, but stated they were not prepared to go on the record until the audit is posted on the ISC website.

paNOW also reached out to the FSIN for comment, but has not yet received a response.

Sources have also said the FSIN plans to appeal, adding supporters feel all the spending was justified and ISC should be the one that’s getting a forensic audit.

In the past months, both James Smith Cree Nation and Poundmaker have also confirmed forensic audits.

The Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada said the findings were presented to Federation of Sovereign Indigenous Nations on Sept. 11.

“As next steps, the audit report will be finalized and a summary letter will be sent to the FSIN detailing recommendations,” read the statement.

They will post a summary of the audit findings will be posted to the department website and be available to the public before September 30.

“Our policy is to provide a summary only. We are unable to speak to any further details at this time.”

ISC next steps

A statement provided by Indigenous Services Canada confirms that the audit report was presented on Thursday to the FSIN.

The ISC also states the next steps are for the finalization of the report and a summary letter to the FSIN detailing recommendations.

The report will be available to the public before the end of the month.