A forensic audit urges FSIN to review spending policies after $34M in questionable transactions flagged, including COVID-19 funds.
Audit Recommends FSIN Review After $34M in Questionable Spending
Findings Posted Online
Indigenous Services Canada (ISC) released a summary report Wednesday detailing the results of a forensic audit into the Federation of Sovereign Indigenous Nations (FSIN). The review, conducted by consulting firm KPMG, identified $34 million in questionable transactions, prompting calls for the FSIN to overhaul its financial and governance policies.
Why the Audit Was Ordered
The audit followed allegations of financial mismanagement and a lack of transparency. ISC commissioned KPMG last year to investigate FSIN’s books. The summary report, now public, includes eight recommendations for strengthening procurement, hiring, accounting, capital asset management, and expense approvals.
COVID-19 Funds Under Scrutiny
A major focus of the audit was $30 million in COVID-19 relief funding FSIN received between April 2020 and March 2023. Of the $26.5 million examined, auditors classified $23.5 million as questionable. The report recommended stricter documentation of expenditures, detailed planning from funding recipients, and clearer reporting to ensure accountability.
Administration and Employment Concerns
The audit questioned $8 million in administration fees and internal charges, including more than $5.2 million directed to the offices of FSIN’s chief and vice chiefs—costs not allowed under existing policies. Auditors also flagged $246,524 in payments to a former employee, citing conflicts between their contract work, employment responsibilities, and severance package.
Fleet Vehicle Purchases
The report raised red flags over FSIN’s purchase of new vehicles for its executive team twice in less than two years. Five vehicles bought in October 2023 at a cost of $367,929 lacked supporting mileage records. Nine other vehicles were sold to staff for $88,600, with auditors recommending fair-value assessments or dealership trade-ins in future. Excess fleet charges of nearly $100,000 were also classified as questionable.
Response From Stakeholders
Maple News Wire contacted FSIN leadership for comment but did not receive a response by publication. ISC said in a statement it will act on the findings and consult with appropriate authorities. The FSIN represents 74 First Nations across Saskatchewan, and the audit’s findings are expected to spark debate over transparency and governance in Indigenous funding management.
Stay connected with Canada’s latest headlines — follow Maple News Wire on Instagram | Facebook | X | LinkedIn.
