Review of FSIN financial records identifies $34 million of suspicious and unauthorized transactions
A recent forensic audit, commissioned by Indigenous Services Canada, has unveiled a total of $34 million in questionable, ineligible, and unsupported transactions at the Federation of Sovereign Indigenous Nations (FSIN) between the years 2020 and 2024. The audit, conducted by consulting firm KPMG, highlighted that out of $47.1 million in transactions reviewed, $34.3 million were deemed inappropriate. This amount included $3.7 million marked as “ineligible,” $30.4 million categorized as “questionable,” and $156,000 labeled as “unsupported.”
The report presented by KPMG shed light on the nature of these “questionable” expenses, which were noted as lacking comprehensive supporting documentation. Most of these expenses were linked to consultant fees where the reasons for the procurement and the delivered outcomes appeared unclear or poorly defined. Despite multiple requests for comments on this matter, FSIN representatives have refrained from responding to CBC’s inquiries.
The audit, which took place in response to allegations of financial mismanagement brought to the attention of Indigenous Services Canada, focused on transactions spanning from 2020 to 2024. Among the flagged transactions, the largest sum of $23.5 million pertained to questionable expenses associated with COVID-19 funding. Over the course of April 1, 2020, to March 31, 2023, the FSIN had received $30 million in funding related to the pandemic. KPMG’s careful examination uncovered that only $3 million of the audited transactions were deemed eligible, calling into question the remaining $26.5 million instead. Additionally, $8 million in administration fees and various “internal charges,” such as excessive photocopying costs amounting to nearly $74,000, also raised concerns.
The forensic audit also highlighted payments made to a former employee, indicating that $246,524 paid to this individual was considered “ineligible.” KPMG revealed that the individual in question had received payments through a contract with FSIN to their personal company for services that appeared to align with their role as an employee. Moreover, the employee was given an inappropriate severance package, as outlined by the audit report.
Indigenous Services Canada has announced plans to finalize the audit report and send a summary letter to FSIN detailing recommendations. The audit findings will then be made available to the public before September 30, as per departmental policy. Calls for transparency and accountability within the organization have surfaced in response to these startling revelations, with Indigenous communities emphasizing the importance of good governance and financial stewardship rooted in traditional values.