The Federation of Sovereign Indigenous Nations (FSIN) is urged to reassess its policies concerning procurement, hiring, capital assets, accounting procedures, and expense approvals following a forensic audit that identified $34 million in potentially questionable transactions. Indigenous Services Canada (ISC), prompted by concerns of transparency and improper spending, commissioned consulting firm KPMG to conduct the audit, with the summary report now available online.
The FSIN, representing 74 First Nations in Saskatchewan, was scrutinized for its handling of COVID-19 funding meant for its members, with the audit revealing that out of $30 million received for pandemic-related purposes between April 1, 2020, and March 31, 2023, $23.5 million was deemed questionable. Recommendations from the report include obtaining budget and planning details from recipients, documenting purchases, and ensuring proper reporting on fund utilization.
Aside from COVID-19 expenditures, the audit highlighted eight other instances of potential mismanagement, such as travel expenses and administration fee usage. Notably, $8 million in administration fees and internal charges, including funds directed to the offices of the chief and vice chiefs, were questioned for not aligning with FSIN policy. The audit also flagged payments to a former employee amounting to $246,524 as ineligible, citing inappropriate severance packages and contractual agreements.
In terms of fleet management, the report raised concerns about the purchase of vehicles for the executive team, lack of supporting documentation for vehicle usage claims, and discrepancies in fleet usage charges surpassing actual costs by nearly $100,000 in certain years. Recommendations included establishing a capital asset policy, assessing fair vehicle values before selling to staff, and considering trade-ins with dealerships for new fleet vehicles.
Despite attempts to reach out to FSIN and its executives for comments, responses were not received. Indigenous Services Canada acknowledged the findings and recommendations, expressing a commitment to taking appropriate action and consulting relevant authorities as necessary.