An Aboriginal aid agency in charge of 2011 flood evacuees has been stripped of its federal funding effective immediately.

According to a statement posted tonight by Aboriginal and Northern Development Affairs minister, Bernard Valcourt, the Manitoba Association of Native Firefighters is in default of their agreement and "has not proven they can competently deliver the services Manitoba First Nations deserve."

It states funds will be withdrawn "immediately" and that the organization has been told the agreement will not be renewed.

Evacuees still out of their homes from the 2011 flood were transferred to the Red Cross earlier this year.

However, MANFF still managed short-term evacuations, training and equipment for fire departments on Manitoba First Nations reserves.

Valcourt calls on the provincial government to sign an agreement with his government so that "together we can ensure First Nations receive the support they deserve."

Its not clear how much MANFF receives in federal funding and no one from the department was available to comment.

Audit summary

The statement is accompanied by a summary of a KPMG audit ordered by the government in 2013 after allegations of misappropriation of funds surfaced.

The summary states that despite more than $90 million advanced to MANFF in just over two years, the organization did not produce financial records or bank reconciliations.

It also says that a full accounting of the organization was not available at the time of the forensic audit.

MANFF's CEO and CFO are cited in the investigation as "not demonstrating leadership" when the short-term evacuation turned into a long term situation.

Management had little consideration for "value for money" when Mona Lisa Ristorante was paid more than a million dollars for "night time snacks."

The report also states that $1,000 bonuses were given to a "few employees for unknown reasons."

One employee was paid approximately $42,000 in overtime for 2011-2013 and "supporting evidence for some overtime claims is incomplete."

It also says that a number of transactions are missing.

The report also found more than $61,000 in Canad Inns loyalty points that were accumulated for hotel rooms housing evacuees were given to MANFF board members.

Emails to MANFF have not been returned and a department spokesperson has indicated no one is available Friday night to speak about the findings.