Federal officials say they don't have enough evidence to investigate fraud allegations made by teachers dismissed from a school on the Paul Band First Nation, west of Edmonton.
"Those allegations or suggestions have not been proven to us. ... We've never received any hard evidence from any teachers that this has taken place," Indian and Northern Affairs Canada spokesman Glenn Luff said Tuesday.
"And by virtue of the fact that we do our own on-site compliance reviews of student attendance, we are satisfied that what we're funding the Paul Band First Nations for is consistent with the number of students attending the school."
Late last month, the principal, a teaching assistant and all but one of seven teachers at the school learned their contracts wouldn't be renewed next year.
According to published reports, Chief Daniel Paul said the move was undertaken to give the school a "clean slate" in September.
Instead, some teachers said the dismissals were in retaliation for grievances they filed earlier this year, alleging they were asked to lie about student numbers and attendance hours to get more funding from the federal government.
Olga Cummings was one of several teachers who wrote a letter to the band council in January. In her letter, Cummings alleges she was asked to add the names of three students who haven't been in her class for years to the nominal roll or attendance figures.
"I point blank said, 'It's fraud. I won't do it,'" Cummings told CBC News.
Two other teachers have alleged that the school's director of education pressured them to inflate the attendance records of at least 50 students.
Nearly 100 students are enrolled at the school.
According to Indian and Northern Affairs Canada, the school receives $6,800 in funding for each student. Students needed to be in class at least 40 per cent of the time between Sept. 23 and Oct. 15 for the school to qualify.
The teachers sent letters to the band chief and council, INAC and the federal Indian Affairs Minister Chuck Strahl about the matter.
Luff says INAC hasn't been given any hard evidence the teachers were asked to inflate records, which would include a request contained in an email, letter, or audio recording or copies of ledgers.
Chief Daniel Paul turned down interview requests from CBC News. The school's director of education also did not return phone calls.