NATIONAL INDIAN GAMING COMMISSION 

NOTICE OF VIOLATION 

TO: Peoria Tribe of Indians of Oklahoma 

Attn: John P. Froman, Chief 

Agent for Service of Process 

I IS South Eight Tribes Trail 

Miami, Oklahoma 74354 

FAX: (918) 540-2538 

Peoria Tribe Gaming Commission 

Attn: Bud Elk, Chainnan 

2 18 South Eight Tribes Trail 

Miami, Oklaf~orna 74354 

FAX: (918) 540-0308 

1. Notification of VioIatjon 

The Chairman of the National Indian Gaming Commission (NIGC) Ilereby gives 

notice that the Peoria Tribe of Indians of Oklahoma (Respondent or Tribe), 

located in Miami, Oklahoma, has violated NIGC regulations and its tribal gaming 

ordinance by failing to submit a timely annual audit. 

2. Authority 

Under the Indian Gaming Regulatory Act (IGRA) and NICC regulations, the 

Chairman of the NlGC (Chairman) may issue a Notice of Violation (NOV) to any 

person for violatian of any provision of the IGRA, NlGC regulations, or any 

provision of a tribal gaming ordinance or resolution approved by the Chairman. 

25 U.S.C. 8 2713; 25 C.F.R. 8 573.3. 

3. ApplicabIe Federal Laws and Tribal Ordinance Provisions 

A. IGRA requires an annual audit ~f each gaming operation and requires that 

copy of the results of the annual audit be submitted to the NIGC. 25 

U.S.C. 9 27 10(b)(2)(C). 

B. NlGC regulations require that a tribe cause to be conducted annual 

independent audits of the financial statenlcnts of each gaming operation on 

Indian lands and submit a copy of the audit report(s) and any management 
Eetter(s) setting forth the results of the annual audit(s) to thc MGC within 

120 days after the cnd of each gaming operation's fiscal year. 25 C.F.R. 

$9 571.13 and 571.13. 

C. NIGC regulations define "gaming operation" as "each economic entity 

that is licensed by a tribe, operates the games, receives the revenues, 

issues the prizes and pays the expenses." A gaming operation may be 

operated by a tribe directly; by a management contractor; or, under certain 

conditions, by another person or other entity, 25 C.F.R. 4 502.10. 

D. Section 1.1 (a) of the Peoria Tribe of Indians of Oklahoma Gaming 

Ordinance ("Ordinance"), the Tribe's approved gaming ordinance, 

provides that "the conduct of gaming activities provided for by this 

Ordinance on Tribal Lands regulation thereof shall conform with the 

Indian Gaming Regulatory Act, 102 Stat. 2467,25 U.S.C. (j 270 1 et seq., 

and the regulations promulgated by the National lndian Gaming 

Commission." 

Section 3. P (m) of the Ordinance provides that the Tribal Commission shall 

have the authority and the responsibility to "ta require, and cause to be 

conducted annually, outside independent audits of a11 gaming activity as 

required by the Indian Gaming Regulatory Act and submitting such audits 

to the National Indian Gaming Commission pursuant to 25 C.F.R. Section 

522.4 (b)(3); require, and cause to be conducted annually, outside audits of 

all contracts related to the conduct of gaming, with the exception of those 

contracts for professional IcgaI and accounting semi ces, whethcr those 

contracts be for supplies, services, or other subject matter whch the 

Commission determines to be re1 ated to gaming, and which are for a 

contract mount in excess of $25,000." 

F. Section 1 0.5 of the Ordinance requires that '"The Tribal Commission shall 

cause to be conducted, at least annually, an independent audit of gaming 

operations and shall submit the resulting audit reports to the National 

Indian Gaming Commission." 

4. RoIe of hdependent Audit Reflm 

Submission of the annual independent audit report by a firm of certified public 

accountants is critical to the NTGC's mission to protect the integity of Indian 

gaming. A firm's ability to conduct an audit in accordance with generalIy 

accepted auditing standards and sender an opinion on the financial statements 

preparcd in conformity with gcneralI y accepted accotinting principles provides a 

certain level of assurance as to the security of tribal gaming revenues. The audit 

report prepared and submitted on a timely basis is cvidcnce of, among other 

things, the integ-ity of the gaming operation and, more specifically, of the 

adequacy of the books and records, the hnctioning of the internal financial 
controls, and the discIosurc of infomation having a bearing on the financial 

statements. 

5. Circumstances of the Violgi 

A. Respondent is a federally recognized Indian Tribe with tribal headquarters 

in Miami, Oklahoma. 

B. The tribe operated its gaming operation, Buffalo Run Casino, during all or 

part of Fiscal Year 2007. 

C. The tribe operated its gaming operation, Peoria Gaming Center, during a11 

or part of Fiscal Year 2007. 

D. IGRA requires that tribes submit annual audits of tribal: gaming. 25 

U.S.C. 271 0@)(2)(C). NIGC regulations squire that a tribe cause to be 

conducted an anpal independent audit of the financial statements of each 

gaming operation on Indian lands and submit a copy of the audit report(s) 

and management letter(s) setting forth the results of the annual audit(s) to 

the NIGC within 120 days after the end of each gaming operation's fiscal 

year. 25 C.F.R. 48 571.12,571.13. 

E. The Ordinance requires that gaming activities and reguIation of gaming 

activities be conducted in accordance with lGFL4 and NIGC regulations. 

Section 1 .I (a) of the Peoria Tribe of Indians of Oklahoma Gaming 

Ordinance 

F. The fiscal year for Buffalo Run Casino ended March 31,2008. 

6. The fiscal year for Peoria Gaming Center ended March 31,2008. 

H. The audit reparts for fie gaming operations named in this violation were 

due to NIGC on or before July 29,2008. 

I. NIGC reccivcd the audit reports for these gaming operations on August 

20, 2008, 22 days late. 

J. The Tribe is in violation oFNIGC regulations for failure to submit a timely 

annual independent audit report for hvo gaming operations. 

6. Measures Required to Correct the Violation 

Audit reports must he received within 120 days of the end of a gaming operations 

fiscal ycar. 25 C.F.R. 6 571.1 3. 'Cnf le there is no remedial action that can correct 

the timely submission of t11c audit reports, improved controls to ensure timely 

submission of future audits sl~ould be put in place. 
7. Appeal 

Within thirty (30) days after service of this Notice of VioIation, Respondent may 

appeal to the full Commission under 25 C.F.R. Part 577 by submitting a notice of 

appeal, and, if desired request for hearing to the National Indian Gaming 

Commission, 144 1 L Street NW, Ninth Floor, Washington, DC 20005. 

Respondent has a right to assistance of counseI in sucll an appeal. A notice of 

appeal must reference this Notice of Violation. 

Within ten (1 0) days after filing a notice of appeal, Respondent must file with the 

Commission a suppIementa1 statement that states with particularity the relief 

desired and the grounds therefore and that includes, when available, supporting 

evidence in thc form of affidavits. If Respondent wishes to present oral testimony 

or witnesses at tlze hearing, Respondent must include a request to do so with the 

suppf emental statment. The request to present oral testimony or witnesses must 

specify the names of proposed witnesses and the genera1 nature of their expected 

testimony, whether a closed hearing is requested and why. Respondent may 

waives its right to an orat hearing and instead elect to have the matter determined 

by the Commission solely on the basis of written submissions. 

8. Fine-Submission of Information 

The violation cited above may resuIt in the assessment of a civil fine against 

Respondent in an amount not to exceed $25,000 per violation per day. Under 25 

C.F.R. # 575.5(a), Respondent may submit writden information about the violation 

to the Chairman within fifteen (1 5) days aRer service of this notice of violation 

(or such longer period as the Chairman may grant for good cause). The Chairman 

shall considaaq+w$mation submitted in determining the facts surrounding the 

violitidndthe ountoftl~ecivilfine,ifany. 

l'k-IJ8' N. HOGEN 

Chairman 

'TIEATHER L, MCMILE~N 

Staff Attorney 
I certify that this Notice of Violation was sent by facsimiIe transmission and cerlified 

U,S. mail, return rcccipt requested, on tllis -wday of September, 2008 to: