The Montreal Lake Cree Nation is conducting a forensic audit on the construction of a new health facility.
The project in 2016 was estimated to cost approximately $8 million, but that has now ballooned to $12 million with the building only 75 percent complete.
The audit is expected to address where the additional $4 million came from.
Chief Frank Roberts suspects programming dollars were used to fund the build.
“We wanted to know where did the resources go? That’s where a lot of the program dollars were not used in the program areas. We believe that they were being used to offset some of the costs in the new health center,” Roberts said.
The audit began a sweeping overhaul of how the First Nation managed its finances, with an increased focus of communication and transparency.
Roberts says previously one person handled the entire budget, but did not communicate with department managers as to what their yearly allowance was.
He says that has changed directing that money be used for what it intended for.
“We have setup mechanisms in place where all monies geared towards capital projects will go to the capital projects account. And program dollars of course will only be spent in programs,” explained Roberts.
Roberts says the First Nation did not complete budgets for the fiscal years 2017 and 2018.
The forensic audit is only looking into a quarter of the First Nations $17 million debt. A large portion of the remaining $13 million, Roberts says is from housing and bank loans, which he says the First Nation is paying off.
“A lot of the other debt is in regards to loans with the bank. We have CMHC units that we pay down the debt on those on a yearly basis,” said Roberts.
Roberts says the First Nation has conducted several community meetings to update members of the situation.
The forensic audit is expected to be completed in January with the full results being given to the community.
The health center is projected to be finished next summer.
(Photo: Montreal Lake Cree Nation administration building. MBC file.)