The Federation of Saskatchewan Indian Nations (FSIN) would like the provincial auditor to butt out of their business activities - specifically, the activities of the Saskatchewan Indian Gaming Authority (SIGA). But that's not likely to happen anytime soon, since the provincial auditor has a duty to ensure SIGA profits are spent lawfully.

SIGA was established in 1995 under the Non-Profit Corporations Act. The operators of SIGA are the FSIN and its Tribal Councils. The Saskatchewan Liquor and Gaming Authority licenses SIGA, through the Casino Operating Agreement, to operate and manage table games. Under this agreement SIGA is to use the net proceeds from the operations of licensed table games for aboriginal charitable or religious purposes.

Liquor and Gaming owns and manages the slot machines located in the SIGA casinos as required by section 207 of The Criminal Code of Canada. SIGA is able to deduct reasonable costs of operating the casinos from the slot machines and is required to remit the net profits to Liquor and Gaming. The revenue from the slot machines belongs to Liquor and Gaming. In other words, it is public money.

In 2001 the provincial auditor found that SIGA spent $30 million without meeting provincial audit standards. It wasn't quite so bad the following year, only $14 million of the public's money was spent outside the rules.

Business 101 teaches that without policies and procedures for controlling cash, inventory, and regular reporting the risk of loss errors greatly increase. As a result of inadequate policies, in 2002 SIGA had ancillary revenue of $4.4 million and incurred expenses of $5.8 million.

As indicated earlier, the 2002 audit report concluded SIGA spent $14 million of the public's money outside the rules. For example, two payments that the auditor believes are not authorized under the 1995 Casino Operating Agreement total $550,000. Of that $400,000 was paid to the FSIN and $150,000 to the Saskatchewan Indian Gaming Licensing (SIGL). In addition, SIGA spent approximately $3,100 for golf club memberships for certain staff, and paid approximately $1,400 in accommodation costs and golf course fees for some individuals.

Citizens deserve financial accountability for how public monies are collected and spent. The FSIN should support accountability and let the provincial auditor do his job.