FSIN issued over $200K in ‘potential overpayments’ to Dawn Walker, sources say

WATCH: A deeper look into the FSIN expenses that were flagged in a federal audit reveals who was receiving some of this money.

Among the millions of dollars of questionable spending revealed in a federal audit performed on the Federation of Sovereign Indigenous Nations, some of it is tied to its former executive operating officer Dawn Walker.

Walker is known for her high-profile disappearance and abduction of her child in July of 2022, which she orchestrated for months before the pair were found in Oregon City as a large and highly publicized search and rescue effort was underway back in Saskatoon.

Multiple sources close to the organization have told CTV News ineligible spending flagged in an Indigenous Services of Canada audit performed by KPMG was Walker’s salary and contracts during the audit period.

An audit revealed on Sept. 24 found more than $34 million in questionable, ineligible or unsupported spending.

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Auditors reviewed more than half a million dollars paid to Walker, the former CEO and executive operating officer, over seven separate agreements. A summary of the audit shows $246,524 listed as ineligible and described as “potential overpayments.”

In addition to her salary, Walker was contracted through a personal company “to perform services that appear to align with their responsibilities as an employee of FSIN.”

Walker appears to have received $104,332 through this contract.

Walker then received a severance payout that “appears to have been inappropriate as they were re-employed within one week of the payment,” according to the audit summary.

The summary report goes on to say this appears to contravene FSIN’s human resource regulations. Walker also resigned prior to being terminated without cause by FSIN, leading to the severance payout.

CTV News reached out to Walker via her legal counsel but did not receive a response.

The FSIN did not respond to multiple requests for an interview but did issue a lengthy media release on Wednesday responding to the audit summary report.

The FSIN says it handed over documentation showing part of Walker’s salary was assigned to her company.

“Precedent exists where employees assign their salary in various ways, including voluntary settlement of debts, voluntary payments for child/spousal support,” the release said.

The FSIN further explained a settlement agreement was negotiated based on a “harassment matter” and says a clerical error is to blame for Walker being given her full severance instead of a deducted amount, which resulted in roughly $48,000 in overpayment.

The FSIN says it hasn’t been given full access to KPMG’s detailed report and therefore cannot determine how KPMG calculated the overpayment amounts, but it appears to be the salary Walker assigned to her company plus the severance package, which KPMG says is not allowed — a point FSIN disputes.

In a statement to CTV News, ISC says it will share line by line audit samplings with FSIN, but it does not provide copies of the audit report to funding recipients as the information is deemed “highly sensitive.”

“The FSIN had urgent and temporary need of the former employee’s services and consulted external legal counsel regarding contracting an employee after severance prior to proceeding,” FSIN’s release said.

The FSIN says the salary paid to Walker flagged as ineligible by KPMG was made under a court order. It says KPMG didn’t find any policy or legislation to label the spending as ineligible and maintains court-ordered payments are legal obligations of the FSIN.

Walker previously served as the FSIN’s CEO, where she oversaw nearly 100 employees and its overall budget.