Recently-released audits conducted for Aboriginal Affairs show that two northern Saskatchewan First Nations failed to meet auditing standards set out in federal funding agreements.
The KPMG audits released this week say that only 20 per cent of federal money audited that was spent by the Montreal Lake Cree Nation was spent for its intended purpose.
The documents also say 49 per cent of money audited that was spent by the Black Lake Denesuline Nation did not meet federal auditing standards.
The audits identified $157,756 spent by the Montreal Lake administration and $403,651 spent by the Black Lake band that was in non-compliance of the funding agreements — and said that the federal department would try to recover the money.
KPMG also says the bands failed to keep proper records of band council meetings and provide fully transparent records of fiscal expenditures.
As well, the audits say the bands do not have clearly defined roles for chief and council in financial matters.
The audits were conducted in the winter of 2013 and cover the time period from April 2010 to March 2012.
The documents are part of the first batch of audits of First Nation bands recently released to the public and part of new federal financial transparency legislation.
Ottawa says it will be releasing new audits every three months.
An audit of the Peter Ballantyne Cree Nation is scheduled to be released in the coming months.