Guy Lonechild, chief of the Federation of Saskatchewan Indian Nations, which oversees FNUC, wrote to officials in April saying the school would have to make cuts or close. (CBC)

Regina's troubled First Nations University of Canada was threatened with closure unless it took drastic measures to address financial and management issues, documents leaked to media Thursday reveal.

"[W]e have a chance — but only one chance, with no guarantee of success, to make our case [for federal funding]," Guy Lonechild, chief of the Federation of Saskatchewan Indian Nations (FSIN), wrote in a letter to the university's president and the chair of the board of governors on April 16.

The letter was leaked to media by an employee of the university.

Lonechild wrote the letter after meeting with federal officials, including Minister of Indian Affairs Chuck Strahl. The FSIN controls FNUC through a board of governors.

In January, allegations of financial mismanagement led the provincial and federal governments to cut off their funding for the school.

'The decisions taken in the next few days will determine whether or not the university continues its operations.'— Guy Lonechild, chief of Federation of Saskatchewan Indian Nations

Since then, the provincial government has agreed to restore about $5.2 million on condition that it be administered by the University of Regina. The latter institution agreed to a temporary arrangement under which it would manage FNUC's finances.

Federal funding remains in limbo.

Lonechild met with officials in Ottawa to try and get about $7.2 million in federal funding restored to FNUC.

"The decisions taken in the next few days will determine whether or not the university continues its operations," Lonechild wrote in the April 16 letter. "You both know that the situation is serious. Decisions must be taken now."

Lonechild wrote that he felt FNUC could make one of two announcements: that the university could be returned to financial health, or that the financial challenges could not be overcome and FNUC would have to cease operations.

"The former choice is difficult and painful," Lonechild said. "The latter would be a serious admission of failure of the institution and would dash the dreams and aspirations of our elders and our leaders."

He emphasized that there was "no time to waste" and that any further delays "will prove to be catastrophic."

Cuts made

Shortly after that letter was written, FNUC announced a number of staff layoffs and said it was preparing a detailed business plan to present to officials.

On Thursday, Joely BigEagle said more staff cuts were likely as the university prepares a new business plan.

"We are going to do whatever it takes to ensure that we have this university continue," BigEagle said. "It may continue in a different way, a different look. Restructuring is needed, but we are going to continue."

BigEagle also said that officials have applied to a federal program that funds First Nations education.

"We have definite, positive signs from ... the federal government that they are willing to look at what we have to give them in terms of the business plan," she said. "At least they're willing to possibly address a potential funding."

BigEagle said she fully expects FNUC to be operating at the start of the next academic year in the fall.

In the academic year that just finished, there were a reported 820 students enrolled at FNUC. Most attend classes at the main campus in Regina.