FSIN disputes federal demand to repay $12.4 million in audited funding

The Federation of Sovereign Indigenous Nations says it is challenging Indigenous Services Canada's demand to repay about $12.4 million in expenditures reviewed in a forensic audit. APTN News, which obtained an October 14 letter from the department, reported that the department seeks repayment of transactions determined to be ineligible. FSIN rejects that conclusion.

Global News reported an October 14 statement in which FSIN said the parties had narrowed their disagreements through discussions, but that federal representatives had confirmed almost $8 million in personal protective equipment purchases as substantiated, and those costs were later added back to the amount claimed. FSIN said the remaining approximately $4.4 million largely concerns administration fees. Indigenous Services Canada confirmed the letter to Global News but did not provide a comment.

APTN reported that the federal letter treats the amount as a debt to the Crown and seeks repayment by November 13. FSIN says it has launched legal action. FSIN Chief Bobby Cameron said staff co-operated and provided the requested records. "ISC may have concluded its process, but this matter is not concluded for the FSIN," he said.

According to Global News, the KPMG forensic audit covered federal funding from April 2019 to March 2024, and Indigenous Services Canada identified $28.7 million in ineligible and unsupported expenses earlier this year. The legal challenge and repayment process remain unresolved.