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While signalling a near three-week window to respond and provide documentation, Indigenous Services Canada has concluded a financial audit and informed the Federation of Sovereign Indigenous Nations (FSIN) it owes over $28 million.
The letter to the FSIN, dated March 13, is the latest update to a story that dates back almost two years, and comes after months of back and forth between the federal government and the organization that represents 74 Saskatchewan First Nations.
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The essential findings of the revised audit, which covered the time period from April 1, 2019 to March 31, 2024, are for a total amount of ineligible and unsupported expenses of $4,805,760.58, and $23,938,821.07. The majority was attributed to COVID-19 expenditures.
Rob Louie, president of the Band Members Alliance and Advocacy Association of Canada (BMAAAC), received an unredacted copy of the letter. He said he has been most troubled by the way FSIN chiefs have downplayed the significance of the audit’s findings.
“I found it troubling because if this happened in, let’s just say, a non-native or a white organization or the Government of Saskatchewan, heads would roll. You know, law enforcement would be brought in. There’d be a shakeup and a turnover.”
Another area covered by the audit was travel expenses, and $1.2 million spent on fleet vehicles could not be supported with documentation.
“This is very heart-wrenching because we have a lot of our people that are homeless on the streets, who will never see a used vehicle, let alone a new one.”
Another expenditure that stood out for Louie was the over $100,000 paid out to a former employee’s consulting company, and over $240,000 paid out to the employee.
Other expenses mentioned in the audit are $1.9 million in ineligible administration costs, over $808,000 spent on a new FSIN office building, and $410,795 on internal charges and cost allocations.
When asked how the association was able to get the letter, Louie explained the BMAAAC is a registered national non-profit and works with a number of different lawyers. A former forensic accountant providing pro-bono services recommended they set up a whistleblower hotline and confidential contact for chiefs and financial clerks at band offices.
“So we did that, and [Thursday] night, I received probably the bombshell of all bombshells in the last month, and that was this unredacted forensic audit that was connected on FSIN,” Louie said.
He said he hopes there are real consequences and not just recommendations.
According to a statement provided by Indigenous Services Canada, a letter was sent to FSIN on March 13.
They explained once a forensic audit is finalized, the department communicates a summary of the findings to the funding recipient. Following this, the department’s regional office works with the funding recipient to action any recommendations and potential recoveries.
“We are unable to disclose whether any sanctions or monetary recoveries are being pursued, as this information relates to contractual obligations between Canada and the audit recipient,” they said.
According to the letter received by BMAAAC, the FSIN has until April 2 to respond, which may include supplying supporting documents.
paNOW reached out to FSIN for comment but had not received a response at the time of publication.
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