The Federation of Sovereign Indigenous Nations (FSIN) is speaking out over claims made in a federal forensic audit of some of its finances, after the investigation deemed more than $30 million transactions as “questionable.”
In a statement by FSIN, the organization which represents 74 Saskatchewan First Nations, said it has cooperated fully with the audit process and kept chiefs informed to the “greatest extent possible.”
It adds that Indigenous Services Canada (ISC), which ordered KPMG LLP to conduct the audit, has not responded to multiple requests for the full report.
“FSIN had planned to provide a full and complete response upon receipt of the detailed report from KPMG, as it is difficult to respond to any allegation without specific details,” the statement reads.
The forensic audit was requested by ISC’s Assessment and Investigation Services Branch (AISB) after receiving allegations about a lack of transparency over FSIN’s expenditures, including some relating to COVID-19 and travel, as well as payments made to a former employee and other claims.
One of the main focuses of the audit was COVID-19 expenses, with the federation having received $30,024,786 in related funding between April 2020 and March 2023.
KPMG said $23.5 million of those expenditures were considered “questionable.” That classification is given when KPMG says supporting documentation to determine eligibility was not received.
FSIN said receipts and/or invoices were provided for every expenditure and questioned which items KPMG is alleging are “incomplete.”
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“FSIN categorically rejects the suggestion that purchases under COVID lack documentation,” the statement says. “FSIN will directly address any such details once the full report is received. To dismiss this work as ‘questionable’ is baseless and disregards the reality that FSIN’s efforts protected Elders, children, and family.”
The organization goes on to say First Nations had requested personal protective equipment (PPE) from ISC to protect its people. FSIN said it set up warehouses to receive, repackage and distribute PPE after some First Nations communities asked it to coordinate distribution.
It goes on to lay out how the money was divided.
“The expenses categorized as questionable totaling $23,451,907 when divided by 166,681 represents approximately $140 per First Nations person in Saskatchewan for an average of $47 each year per person for PPE — all fully accounted,” the statement reads.
The FSIN also alleged in its statement, and a fact sheet it provided, that it was given 10 days to respond to a list of 717 questions and data items by KPMG, which it says it did.
“KPMG then required 10 weeks to review the information,” FSIN alleged. “While FSIN had been prepared to provide any needed clarification during that period, it appears that the information provided was not used in their review.”
In its audit, KPMG also made several recommendations, including for FSIN to obtain budgets and planning information to ensure activities align with funding requirements and to consider tracking expenditures that are “associated with a particular funding letter” to be clear on how funding is being spent.
Some First Nations communities raised concerns over the results of the audit after details were released, with the chief of the Saskatoon Tribal Council calling for change and demanding answers on the spending.
Chief Mark Arcand told reporters last Thursday he was “embarrassed” by the results and questioned who was being held accountable, and added that meetings should be held in the first week of October to learn more about the money.
Responding to these concerns, FSIN said in its statement it has faced “unwarranted attacks.”
“The FSIN has faced unwarranted attacks in relation to the forensic audit that was publicly called for by certain individuals leading up to the 2024 election and reiterated in a press conference two days prior to the election where support for a particular candidate was announced,” the statement reads. “These attacks seem to be fueled by malicious intentions and have contributed to heightened racial tensions by perpetuating negative stereotypes about First Nations.”
The election the FSIN referenced saw Bobby Cameron elected to a fourth term as the Federation’s chief.
Global News reached out to Indigenous Services Canada for comment on the FSIN’s response to the audit, but did not receive a reply by deadline.
FSIN said in its statement it is “confident” ISC will “fulfill their responsibility” to review the documentation provided by the organization and determine all expenditures are eligible, “with the exception of minor administrative errors that have since been corrected.”
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