Ottawa asks Federation of Sovereign Indigenous Nations to pay back $28.7 million after forensic audit

The union soldier regime is asking the Federation of crowned head Indigenous Nations (FSIN) to repay sir thomas more than $28.7 billion following a forensic audit into its spending.

In a letter dated March 13 and addressed to the FSIN, Indigenous Services Canada outlines its response to the findings of the forensic audit conducted by KPMG that reviewed FSIN’s use of federal funding between April 2019 and March 2024. That audit flagged $34 million in questionable, ineligible or unsupported transactions.

The March 13 letter goes through how nearly $24 million in "unsupported" expenditures and about $4.8 million in "ineligible" spending was identified and says the funds "are repayable."

“In addition to repaying these amounts, ISC expects that FSIN will implement appropriate corrective measures to address these concerns, strengthen internal controls, and ensure compliance with program requirements,” the letter states.

FSIN has until April 2 to respond with additional records or dispute the findings.

“We cannot disclose details of the correspondence as it relates to contractual obligations between Canada and the audit recipient,” a spokesperson from ISC said.

The department added it has processes in place — including forensic audits — to ensure public funds are used appropriately.

“Indigenous Peoples, and all people in Canada, deserve accountability for the use of public funds,” the statement said.

The letter raises concerns about how federal funds were managed.

The largest portion — over $23 million — relates to COVID-19 spending that auditors say lacked sufficient documentation to confirm eligibility. That includes shipping invoices, bills of lading, packing slips, customs declarations and proof of delivery. Another $12,500 was deemed ineligible because it was not COVID-19 related.

“While ISC recognizes that the urgency of pandemic response may have at times impacted recordkeeping, proof of PPE and food security shipments to FSIN's distribution centre is required to support the invoices that were provided to auditors,” the letter states.

Other issues identified in the audit include:

“The findings summarized above collectively demonstrate significant, systemic issues in FSIN's financial management, recordkeeping practices, and adherence to the terms and conditions of ISC funding,” the letter states.

The letter was shared online by Rob Louie, president of the Band Members Alliance and Advocacy Association of Canada.

In an interview, Louie said his organization received the audit material from an anonymous source, who is a representative of one of FSIN's constituent member bands in Saskatchewan.

“This money that flows to the FSIN comes from taxpayers in Canada,” Louie said. “The constituents have a right to know what’s going on.”

Reporter

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