The Federation of Sovereign Indigenous Nations (FSIN) must explain $34,251,566 in expenses, revealed in an audit by Indigenous Services Canada (ISC). It categorized $3,732,982 as ineligible, $30,362,990 as questionable, and $155,595 as unsupported expenditures.

Of the $30,024,786 in COVID-19 funding received by the FSIN between April 1, 2020, and March 31, 2023, an audit reviewed $26,487,310 (88.2%) and found $23,451,907 in questionable expenditures.

The audit reveals $7,925,783 in admin fees and $962,796 for a new office building are questionable, with photocopy charges alone overcharged by $73,974.

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The audit stemmed from a request by the First Nation Council itself, following concerns raised during a 2019 meeting with federal officials over a community suicide crisis.

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The audit, announced in March 2024, covers all expenditures from April 1, 2019, to the present, but the ISC has not yet confirmed its conclusion.

“To respect privacy, we do not comment on specific forensic audits beyond confirming if one is being undertaken. Once a forensic audit is final, a summary of the findings will be published on the Department website,” the department said in a CKOM statement.

First Nations leaders confirmed the audit findings are accurate and will comment once the report is publicly posted on the ISC website, which is expected by month-end. The FSIN plans to appeal. 

This follows recent forensic audits of James Smith Cree Nation and Poundmaker. Another audit found $74.6 million missing from Makwa Sahgaiehcan First Nation, with no financial records.

Nearly a decade after the federal government suspended enforcement of Canada's Indigenous transparency law, most Alberta First Nations have ceased publicly publishing financial audits.

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On September 9, Indigenous activist Hans McCarthy and the Canadian Taxpayers Federation announced a legal challenge to enhance financial transparency rights for band members.

Hans McCarthy, Frog Lake First Nation member, stated, “As a community, we are a family and it’s upsetting that we have to become activists just to find out what is happening with our own First Nation’s money.”

“This court case is important,” he said, “because it’s going to help all bands while increasing accountability in my community.”

The First Nation’s trust fund, sourced from resource company kickbacks, significantly decreased from $102 million in 2013 to under $9 million by 2024. The ISC refused disclosure of band council resolutions on the fund.