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- calendar_today October 15, 2026
FSIN Disputes Federal Order for Repayment
The Federation of Sovereign Indigenous Nations (FSIN), which represents 74 First Nations in Saskatchewan, has announced it will challenge Indigenous Services Canada (ISC) in court over an order to repay more than $12.3 million in federal funding. The dispute follows an audit examining FSIN's management of federal funds between April 2019 and March 2024.
Details of the ISC Audit and Repayment Order
According to a news release from FSIN, the organization has received the final decision from ISC but does not accept the order or the department’s classification of $12,376,807.40 as ineligible spending. FSIN Chief Bobby Cameron stated, "ISC may have concluded its process, but this matter is not concluded for the FSIN." The FSIN has initiated legal action disputing ISC’s conclusions, though specific details about the legal proceedings have not been provided.
PPE Purchases and COVID-19 Funding in the Spotlight
FSIN claims that almost $8 million of the challenged amount relates to personal protective equipment (PPE) bought during the COVID-19 pandemic. The organization asserts that ISC representatives had previously confirmed, during a June 12 discussion, that these PPE expenses were substantiated and should not be considered ineligible. "We are surprised that this would be added back on despite the ample evidence provided and the advice of their own ISC staff," the FSIN release said.
Chief Bobby Cameron emphasized confidence that an independent review will prove all expenditures were eligible, stating that "when this matter is subjected to a fair and independent review, all expenditures will be proven eligible and the allegations proven false."
KPMG Audit Findings and Questioned Expenses
The forensic audit was conducted by accounting firm KPMG on behalf of ISC, reviewing FSIN’s transactions from April 2019 to March 2024. KPMG audited $47.1 million in FSIN transactions, flagging $34.3 million for review. Of that sum, $3.7 million was labeled "ineligible," $30.4 million as "questionable," and $156,000 as "unsupported." Questionable expenses were primarily linked to consultant fees, where deliverables or procurement rationale were unclear.
The largest flagged portion involved COVID-19 relief funding. Between April 2020 and March 2023, FSIN received $30 million in COVID-19 funding; KPMG audited $26.5 million of these funds and determined that only $3 million of the transactions reviewed were eligible. The audit also raised concerns about $8 million in administration fees and internal charges, including nearly $74,000 for excess photocopying charges.
Specific Audit Highlights and Allegations
KPMG’s report specified that $23.5 million of the questionable expenditures involved COVID-19-related costs. Additionally, payments to a former FSIN employee were highlighted, with $246,524 classified as ineligible. The audit stated the individual was paid through a personal company to perform services similar to their duties as an FSIN employee and received a severance package deemed inappropriate.
Continuing Dispute and Response from ISC
At the time of publication, ISC had not responded to CBC’s request to clarify when the repayment decision was delivered to FSIN, nor the specifics contained in that directive. FSIN maintains that it will seek a fair legal review to address the federal funding repayment order and the broader fsin audit dispute.
With files from Chris Edwards.
Source: cbc.ca.
