The accounting firm hired to audit the finances of the troubled Attawapiskat First Nation reserve in northern Ontario says there is little or no documentation for millions of dollars spent by the band, CBC News has learned.
The unreleased audit was intended to ensure that more than $100 million provided by the federal government to Attawapiskat between April 2005 and November 2011 was spent as it should have been.
CBC News has obtained a copy of the audit. The funding was intended for housing, sewage, education and other services.
In a letter dated Sept. 20, 2012, that was written by Deloitte to Chief Theresa Spence and copied to the Department of Aboriginal Affairs, that auditing firm says that of 505 transactions reviewed, more than 400 lacked proper documentation.
The letter says "an average of 81 per cent of files did not have adequate supporting documents and over 60 per cent had no documentation of the reason for payment."
The letter to Spence also says there is "no evidence of due diligence on the part of Attawapiskat of funding provided by Aboriginal Affairs and Northern Development Canada for housing projects and Health Canada for health-related projects."
Deloitte said it could not conclude that the payments made by the band council were in accordance with the terms and conditions of funding agreements with the federal government.
Deloitte reported its finding to Spence in late August. It's not known what she or the band council did in response to the findings.
State of emergency declared last winter
Spence declared a state of emergency on the reserve in the fall of 2011, citing a critical need for housing.
Amid much media coverage, the federal government pledged to provide emergency housing. About two dozen modular homes were built and trucked to the community over last winter's ice roads.
Spence has been on a hunger strike since Dec. 11, camped out in an aboriginal education centre on Victoria Island in the Ottawa River between downtown Ottawa and Gatineau, Que. She's demanding a meeting with Prime Minister Stephen Harper and Gov. Gen. David Johnston to discuss what she characterizes as "treaty issues" between First Nations and the Crown.
Harper agreed to meet with First Nations chiefs this Friday and Spence has said she will attend, but is not giving up her hunger strike until she sees the outcome of the meeting.
On Friday, reporters asked Grand Chief Stan Louttit, who represents the northern Ontario region that includes Attawapiskat, about the status of the audit, which the band council agreed to when the First Nations problems first came under scrutiny.
"It is very, very difficult to do business in a remote community," Louttit said. "The average Canadian out there, they see millions and millions, and they just get concerned and said, 'Hey, there's something going on there.'
"But I challenge those people, come to the community and look at the books, and come and live there for a couple of weeks and you'll see," he said.
"The audit speaks for itself," said Jan O'Driscoll, the press secretary for Aboriginal Affairs Minister John Duncan. "We agree with its conclusions and recommendations."
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