OTTAWA - Aboriginal Affairs wants the Attawapiskat First Nation to repay more than $1.8 million in housing funding after an audit could not substantiate the spending.

The audit, finished in April,was a follow to an earlier audit that was ordered after the James Bay community declared a state of emergency in November 2011 over what it said was a housing crisis.

The auditors said the $1.8 million represents housing-related transactions that could not be substantiated in the audits.

The First Nation says most of the money relates to two major contracts and while the documentation related to these contracts may be incomplete, there is no evidence the money wasn't paid out properly.

The audit also says Attawapiskat should strengthen its oversight and monitoring of the third-party accountant that handles the accounting function for its capital projects.

The First Nation agrees with that recommendation.