SaskatchewanThe Federation of Sovereign Indigenous Nations (FSIN) is being advised to review its policies on procurement, hiring, capital assets, accounting practices and expense approvals after a forensic audit of its books flagged $34 million in questionable transactions.Indigenous Services Canada posted summary report online WednesdayHannah Spray · CBC News · Posted: Sep 24, 2025 6:57 PM EDT | Last Updated: 3 hours agoA media event outside the Federation of Sovereign Indigenous Nations building in Saskatoon is shown in a file photo. Indigenous Services Canada has posted online its summary report into an audit of the organization that found $34 million in questionable transactions. (Liam Richards/The Canadian Press)The Federation of Sovereign Indigenous Nations (FSIN) is being advised to review its policies on procurement, hiring, capital assets, accounting practices and expense approvals after a forensic audit of its books flagged $34 million in questionable transactions.After Indigenous Services Canada (ISC) received allegations about lack of transparency and inappropriate expenditures, the federal department retained consulting firm KPMG last year to conduct the audit. The summary report of the findings was posted online Wednesday afternoon.It contains many details CBC previously reported after FSIN leadership was briefed earlier this month, along with a list of eight recommendations.The FSIN represents 74 First Nations in Saskatchewan. One of the biggest amounts of money the audit examined was funding related to COVID-19 that was meant to help FSIN members.The summary report said the FSIN received $30 million in COVID-related funding between April 1, 2020, and March 31, 2023. The audit looked at 88 per cent of related expenditures, or $26.5 million, and classified $23.5 million as questionable.The report recommended the FSIN get budgets and planning information from the recipients, document purchases and ensure reporting on funding use.”FSIN could consider tracking the expenditures associated with a particular funding letter to clearly present how ISC funding has been spent. This will also allow for easier tracking of expenditure eligibility,” the report said.In addition to the COVID-19 expenditures, the report contains findings related to eight other allegations of inappropriate transactions in areas ranging from travel expenditures to the use of administration fees.For example, the audit questioned $8 million in administration fees and “internal charges,” including more than $5.2 million in funds “directed towards the offices of the chief and vice chiefs, which is not included as a covered cost in FSIN policy.”The audit also flagged payments to a former employee, classifying $246,524 paid to that person as “ineligible.” KPMG said the person received money through a contract with FSIN to a personal company “to perform services that appear to align with their responsibilities as an employee,” and received a severance package that appears to have been inappropriate.Fleet vehicle questionsThe report noted that the FSIN appears to have purchased five new vehicles for the entire executive team twice — first in March 2022 and again in October 2023. The FSIN claimed the vehicles “encounter extreme conditions and incur a significant number of kilometres each year,” but did not provide supporting documents such as mileage records.”Therefore, we have considered the $367,929 paid for the vehicles purchased in October 2023 to be a questionable expenditure,” the report said.The audit also identified nine vehicles that were sold by FSIN to staff or executives for a total of $88,600.The report recommended FSIN establish a capital asset policy, obtain a fair value assessment of vehicles before auctioning them off to staff, or “consider trading in fleet vehicles to the dealership when new fleet vehicles are purchased instead of auctioning to employees.”Fleet usage charges in two of the years studied (2022 and 2023) also exceeded actual costs by nearly $100,000, an amount classified as questionable in the audit.CBC News reached out to the FSIN as well as its top executives for comment, but did not receive replies on Wednesday.Indigenous Services Canada provided a statement in response to an interview request.”We will take action on the findings and recommendations. We are carefully considering next steps, and will consult with any appropriate authorities as required,” the statement said.ABOUT THE AUTHORHannah Spray is a reporter and editor for CBC Saskatoon. She began her journalism career in newspapers, first in her hometown of Meadow Lake, Sask., moving on to Fort St. John, B.C., and then to the Saskatoon StarPhoenix.
Audit recommends FSIN review policies after flagging $34M in questionable expenses
