FEDERATION OF SOVEREIGN INDIGENOUS NATIONS RESPONDS TO ISC/KPMG REVIEW OF FORENSIC AUDIT AND LETTER
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Treaty 6 Territory, Saskatoon SK) – The Federation of Sovereign Indigenous Nations (FSIN) is responding to the release by Indigenous Services Canada (ISC) of their review of the FSIN’s forensic audit.
Yesterday, the FSIN and First Nations Chiefs provided an exclusive to Global Saskatoon. The video can be found on FSIN’s Facebook page.
First Nation leadership reaffirmed that the ongoing audit is not a matter of misuse of funds, but a fundamental disagreement in interpretation, one that has been applied retroactively and without full and proper consideration of the facts. Contrary to the narrative promoted by a small group of individuals who have been attacking the FSIN for several years, at no point has there been any finding of fraud, personal gain, or intentional wrongdoing. Instead, the issues raised relate to classification, allocation, and evolving interpretations of administration.
“FSIN has acted in good faith every step of the way,” said Chief Bobby Cameron. “The FSIN has been transparent, responsive, and accountable; our stewardship of funds exceed standard industry practices and are based on the best of western and traditional self-government practices. Our top priority when the COVID pandemic hit was to implement our inherent and treaty rights under the Famine and Pestilence clause and we did so proving that the FSIN will continue to be treaty-focused and treaty-based for the benefit of all First Nations in Saskatchewan.”
In a detailed response provided to ISC on February 27, 2026, FSIN addressed each concern raised in the Notice of Default and funding restrictions, including outstanding reporting, audit delays, and alleged ineligible expenditures. FSIN confirmed that all identified reporting requirements have been met or corrected and highlighted that ISC’s own delays, cancelled meetings, and errors in reporting systems contributed to the current situation. The response also outlined that FSIN provided documentation for all expenditures reviewed, including responding to over 700 audit-related questions and data items within an extremely compressed timeline of 10 business days in comparison to the auditors taking 16 months for their initial review of FSIN’s documents. The auditors then required an additional 10 weeks to review this information.
The FSIN Fact Sheet, submitted alongside FSIN’s response on February 27th, 2026, further demonstrated that expenditures identified by KPMG were supported by documentation and aligned with FSIN policies, governance approvals, and funding agreement requirements. The Fact Sheet also details the significant operational pressures faced by FSIN during the audit period, including responding to the COVID-19 pandemic, wildfire evacuations, and community crises, all while maintaining support to First Nations across Saskatchewan.
At the center of the dispute is ISC’s position on administration fees. FSIN maintains that administration fees are intended to support governance, operations, and the infrastructure required to deliver programs, consistent with how all governments function. Canada itself funds administration, leadership, infrastructure (buildings), and operational systems through centralized revenues and does not require strict program-by-program allocation. The application of a more restrictive interpretation to First Nations governments creates an inconsistent and inequitable standard. FSIN defends First Nations right to administration as own-source revenue just like any non-First Nation government or organization.
“First Nations governments cannot be expected to operate under a different set of rules than every other government in this country,” said Chief Erma Merasty of the Shoal Lake Cree Nation. “Administration, including administration fees, is not optional. It is what allows us to serve our people.”
FSIN also raised serious concerns regarding the public narrative surrounding the audit. Despite full cooperation and transparency, the process has contributed to a perception that does not reflect the facts.
This reinforces a long-standing pattern where First Nations institutions are placed under heightened scrutiny while their perspectives are not fully represented. Canada’s own Auditor General has consistently criticized Indigenous Services Canada for their excessive reporting burden on First Nations for decades.
“This is not just about FSIN,” said Chief Roger Redman of the Standing Buffalo Dakota Nation. “If this approach continues, it will impact every First Nation and organization across Canada. It risks limiting how we govern, how we deliver services, and how we support our communities.”
The letter and annex received from Rob Harvey on March 13th, 2026 has been shared on social media. It is unfortunate that ISC did not take measures to clarify that all those that are named in the document sent by ISC - that assisted in our efforts to protect First Nations during COVID, that provided exceptional support as consultants and that ultimately worked towards the mandates provided by First Nations leadership - did nothing wrong nor criminal. FSIN appreciates the work performed by all those listed and all those that continue to support our mandates. ISC has been exceptionally irresponsible and their numbers and assertions are simply wrong.
On October 2, 2025, when asked about FSIN requesting the full forensic report, ISC at first denied that, we made the request despite making the request numerous times. FSIN then confronted ISC with the numerous emails that were sent requesting the report and provided them an opportunity to correct this misinformation. FSIN is still not in receipt of the full audit despite the numerous requests and that it is an industry standard that those subject to audits receive the full report."
FSIN remains committed to transparency and accountability. However, that accountability must be grounded in fairness, consistency, and respect for the Treaty relationship.
“We will always stand for our Nations, our governance, and our people,” Chief Cameron concluded. “Canada wasted two years and a ridiculous amount of money pursuing a forensic audit based on misinformation and a political stunt. It is time to end this and move forward on our mutual goals of Treaty Protection and Promotion for the betterment of our Nations.”
The allegations listed in KPMG LLP’s partial and redacted report includes the following allegations raised by the complainants:
$17 million received for COVID-19 relief did not reach the communities it was intended for.
Response: In addition to documentation showing the dates of PPE delivered, the amount, and which FSIN employees made the deliveries all over Saskatchewan, numerous confirmations of deliveries have been signed by Chiefs in Saskatchewan. The efforts of FSIN staff that put their health and the health of their families at risk to deliver PPE during COVID should be celebrated – not denied.
Vehicles purchased from the COVID-19 administration funds were not used for COVID-19 purposes.
Response: The purchases of fleets were from overall administration fees charged to funders – not just ISC funds. FSIN asserts that First Nations and First Nations organizations should be treated the same as non-First Nations organizations in that administration fees are own source revenue. Fleet purchases benefit ALL areas funded by FSIN including areas funded by ISC and therefore should be considered eligible despite being own source revenue.
$5 million of funding that was meant to be for the purchase of PPE to be distributed by James Smith Cree Nation did not meet the needs of the community.
Response: Like many First Nations, the James Smith Cree Nation (JSCN) identified the need to have PPE for their members and members of all First Nations to protect them. JSCN originally submitted proposals to purchase and provide PPE to First Nations across Canada, then across Saskatchewan, then ultimately were approved to provide $5.5 million of PPE to First Nations Saskatchewan – particularly northern Saskatchewan. In 2023/2024, the JSCN notified FSIN Treasury Board that they were paying rent for storage of PPE post-pandemic – contrary to this allegation that the PPE did not meet the needs of the community – and requested funds to dispose of the leftover, expired PPE.
Saskatoon Tribal Council bought their own face masks through ISC when they should have received them through FSIN.
Response: Contrary to this allegation, the FSIN Treasury Board approved an agreement to flow $20,000 to the Saskatoon Tribal Council for the purchase of PPE. STC advised that only the Tribal Chief could sign the agreement and FSIN employees sent the agreement numerous times to the Tribal Chief with no response. FSIN employees then dispersed PPE to First Nations in Saskatoon through community partners in the city and was advised by one community partner that STC contacted them advising that they cannot allow the FSIN to distribute from their location or STC would no longer do business with them. FSIN also delivered the following PPE directly to STC member nations.
The Federation of Sovereign Indigenous Nations represents 74 First Nations in Saskatchewan and is committed to honouring the spirit and intent of the Treaties, as well as promoting, protecting, and implementing Treaty promises made more than a century ago—promises that remain legally and morally binding today.
For more information or to coordinate interviews, please contact FSIN Communications at communications@fsin.com
