Assembly of First Nations Cancels Forensic Audit Amid Financial Impropriety Allegations

Assembly of First Nations Halts Forensic Audit Amid Financial Scrutiny

OTTAWA, July 9, 2024 – In a significant turn of events, the Assembly of First Nations (AFN) has decided against proceeding with a forensic audit of its finances, a move initially championed by former national chief RoseAnne Archibald. The decision came to light during the AFN’s general assembly in Montreal on Tuesday, marking a pivotal moment for the organization which has been under a cloud of financial allegations.

The emergency resolution to cancel the audit was passed following advice from the accounting firm BDO, which had conducted a preliminary review of the AFN’s financial practices. The firm’s investigation, which scrutinized severance packages, contracts, and credit card usage among other things, led to the conclusion that a forensic audit was "not warranted."

RoseAnne Archibald, who had been at the forefront of calls for the audit amidst accusations of financial impropriety within the AFN, was ousted as national chief in June 2023. Despite her removal, Archibald maintained that the audit should proceed. However, chiefs at the assembly voted otherwise, directing the organization to align its operations with the Canada Labour Code instead.

The BDO review, which included interviews with past and present AFN employees as well as Archibald herself, highlighted the need for the AFN to overhaul its financial policies and enforcement mechanisms. The resolution adopted by the chiefs emphasizes the importance of updating policies related to contracting procedures and the strict enforcement of credit card usage. It mandates that failure to submit receipts for expenses will lead to the cancellation of issued credit cards, signaling a move towards greater financial accountability within the organization.

Interestingly, an amendment that would have required the AFN to implement these procedural changes within a year was rejected, leaving the timeline for these reforms open-ended.

This development comes at a time when the AFN has been under scrutiny for its financial management practices. The decision to forego a forensic audit, while controversial, reflects the organization’s preference for internal policy reform over external investigation. As the AFN moves forward, the focus will be on its ability to implement these changes effectively and restore confidence in its financial governance.

The resolution and the circumstances leading up to it underscore the complexities of managing finances within large organizations and the challenges of balancing transparency, accountability, and operational efficiency. The AFN’s next steps will be closely watched by those within and outside the organization, as it seeks to navigate through this challenging period.