Saskatoon Tribal Council’s chief and other First Nations communities are demanding answers and calling for change after an audit found “questionable” expenses by the Federation of Sovereign Indigenous Nations (FSIN).
The audit, made public this week, found about $30.3 million in expenditures between April 2019 and March 2024 that it deemed “questionable,” with about $3.7 million deemed “ineligible.”
“I was embarrassed,” Saskatoon Tribal Council Chief Mark Arcand told reporters.
Conducted by KPMG LLP on behalf of Indigenous Services Canada’s Assessment and Investigation Services Branch (AISB), the audit was launched after AISB received allegations about a lack of transparency in the organizations, as well as concerns about its expenses and use of administration fees.
“You’ll hear other chiefs talk about our struggles as First Nations people,” said Arcand. “Underfunded, right? Lack of housing, lack of investments, that’s important to all of us … When this number came out, I was embarrassed because I was like how could our leadership do this to our people?”
FSIN represents 74 Saskatchewan First Nations.
Arcand said he’s concerned about a lack of communication and who is being held accountable.
“When we think about the organization, we think of the people. This money belongs to the people, to the grassroots people, it’s there to make a difference in people’s lives,” Arcand said. “Somebody’s making these bad decisions inside and we have to get to the bottom of this.”
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Among the questionable expenditures flagged, the majority were related to COVID-19, with about $23.5 million in expenses.
The audit notes an expenditure is deemed “questionable” when complete supporting documentation was not received. Items are considered “ineligible” where documentary evidence was obtained to confirm that the expenditures were not eligible to be claimed under specific Indigenous Services Canada program funding requirements.
Another $5.6 million in administration fees were deemed questionable, with issues surrounding fleet vehicles and payments to a former employee also flagged.
Chief Kelly Wolfe of Muskeg Lake Cree Nation said the varying costs are why First Nations leaders in Saskatchewan are calling for answers.
“What we’re wanting is answers from the executive, their silence speaks volumes,” he said.
Global News reached out to FSIN and its chief, Bobby Cameron, on Friday but has not received a response. Global News previously reached out to FSIN on Thursday about the audit.
KPMG’s audit contained several recommendations, including that FSIN obtain budgets and planning information to ensure activities align with funding requirements and ensure reporting on funding use is received from recipients. It also recommended the federation consider tracking expenditures that are “associated with a particular funding letter” to be clear on how funding is being spent.
James Smith Cree Nation Chief Kirby Constant called the audit “just a start.”
“The report is not the full story,” he said. “It’s just a sample of what’s been going on in FSIN, but even in that narrow scope, the results are still unacceptable.”
A spokesperson for Indigenous Services Canada told Global News on Thursday it would take action on the findings and recommendations of the audit.
Arcand told reporters Friday he has had “zero communication” with any of the FSIN executive.
It’s why he said they’re calling on FSIN to hold meetings in the first week of October to learn more about the money, especially as the audit only looked at samples of finances not all expenditures.
“I want us to have meetings right away and talk about this openly and honestly in our boardrooms and say where are we, what are we doing,” Arcand said.
“How do we actually address the elephant in the room? We have to have these tough discussions and we’ve got to show all these questions.”
—with files from Global News’ Grace Miller
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