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3h ago

KPMG Audit Flags $34M in FSIN Spending as Questionable or Ineligible

Indigenous Services Canada says it is reviewing the findings to determine next steps.

Cowessess First Nation Chief Erica Beaudin during a media for the Federation of Sovereign Indigenous Nations in Saskatoon, Sask., on Aug. 29, 2023.
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People gather for the FSIN election grand assembly at TCU Place in 2024. A recent audit found around $23 million of more than $30 million provided to the federation during the COVID-19 pandemic was "questionable" due to a lack of documentation.

Overview

  • Auditors examined $47.1 million in FSIN transactions from 2019 to 2024 and flagged about $34.2 million as questionable, ineligible or unsupported.
  • Roughly $30 million in COVID‑19 funding was reviewed, with about $23.5 million deemed questionable due to missing documentation and no clear evidence that purchased PPE reached member First Nations.
  • Nearly $8 million in administration fees drew scrutiny, including more than $5.2 million routed to chief and vice‑chief offices contrary to FSIN policy.
  • KPMG questioned fleet spending after 22 vehicles costing about $1.4 million were purchased, including executive vehicles without mileage records and a $367,929 payment in October 2023 lacking support.
  • The report cited an apparently improper severance and rehiring of a former employee with potential overpayments of $246,524 and raised concerns over travel expenses that may have contravened FSIN policy.