FSIN disputes claim it misspent over $34 million in federal funds

WATCH: FSIN is disputing the findings of a forensic audit that was unable to account for over $34 million in federal funding.

The Federation of Sovereign Indigenous Nations (FSIN) is disputing the findings of a forensic audit that was unable to account for over $34 million in federal funding.

Indigenous Services Canada (ISC) released a summary of results from the audit on Sep. 24, conducted after allegations were raised that federal dollars were being used for things not listed in the funding agreements.

Of the $47.1 million in transactions reviewed by auditor KPMG, about $34.2 million were flagged as either ineligible, questionable, or unsupported by documentation.

KPMG flagged over $23 million in questionable spending of ISC funds related to COVID-19, saying it was unable to obtain documentation to confirm the eligibility of the expenses.

Now, the FSIN says it “categorically rejects the suggestion that purchases lack documentation.”

“To dismiss this work as ‘questionable’ is baseless and disregards the reality that FSIN’s efforts protected Elders, children, and families.”

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In a news release Wednesday, the FSIN claims it provided receipts and invoices for every expenditure, but alleges it’s unable to parse the allegations fully because it hasn’t been provided the full report, despite multiple requests to ISC.

The FSIN provided a lengthy fact sheet of responses to media that you can read below.

It says some of the COVID-19 related funds were used to purchase, warehouse and distribute PPE to First Nations, including hiring casual workers, drivers and renting trucks to ship out the gear “as quickly as possible.”

“First Nations asked that the funding for PPE be provided to them directly; however, ISC insisted that the funding flow through the FSIN. FSIN opposed this recommendation several times as First Nations should be supported directly,” the statement said.

“The expenses categorized as questionable totaling $23,451,907 when divided by 166,681 represents approximately $140 per First Nations person in Saskatchewan for an average of $47 each year per person for PPE – all fully accounted.”

The FSIN alleges KPMG gave it just 10 days to respond to a list of 717 questions and data items, which it took 10 weeks to review.

“While FSIN had been prepared to provide any needed clarification during that period, it appears that the information provided was not used in their review.”

It also takes aim at the vague language employed by KPMG, including “may be in contravention,” or “questionable” — a term that is not defined, the FSIN says.

The organization, which represents the chiefs of 74 First Nations in Saskatchewan, says it’s facing “unwarranted attacks” in relation to the audit.

“These attacks seem to be fueled by malicious intentions and have contributed to heightened racial tensions by perpetuating negative stereotypes about First Nations.”

-This is a developing story, with more details to come