National Indian Gaming Commission 

NOTICE OF VIOLATION 

To: Chairman C. Michael Harwell (Agent for Service of Process) 

Otoe-Missouria Tribe of Oklahoma 

81 5 1 Highway 177 

Red Rock, OK 74651 

FAX: (580) 723-4273 

Chairman Billie Tohee 

Otoe-Missouria Gaming Commission 

8151 Hwy 177 

Red Rock, OK 74651 

FAX: (580) 723-4273 

1. Notification of Violation 

The Chairman of the National Indian Gaming Commission ("NIGC") hereby gives notice 

that the Otoe-Missouria Tribe of Oklahoma ("Respondent" or "Tribe"), located in Red 

Rock, Oklahoma, is in violation of the Indian Gaming Regulatory Act ("IGRA"), NIGC 

regulations and the Tribe's gaming ordinance for failure to submit timely annual audits. 

2. Authority 

Under regulations of the National Indian Gaming Commission, the Chairman of the 

NIGC ("Chairman") may issue a Notice of Violation ("NOV") to any person for violation 

of any provision of the Indian Gaming Regulatory Act ("IGRA"), MGC regulations, or 

any provision of a tribal gaming ordinance or resolution approved by the Chairman. 25 

C.F.R. 5 573.3. 

3. Avvlicable Federal and Tribal Laws 

A. IGRA requires an annual audit of each gaming operation and requires that a copy 

of the results of the annual audit be submitted to the MGC. 25 U.S.C. 5 

27 1 O(b)(2)(C). 

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

audits of the financial statements of each gaming operation on Indian lands and 
submit a copy of the audit report(s) and any management letter(s) setting forth the 

results of the annual audit(s) to the MGC within 120 days after the end of each 

gaming operation's fiscal year. 25 C.F.R. $8 571.12 and 571.13. 

C. Section 1-2 of the Otoe-Missouria Tribal Gaming Act ("Act"), as amended, the 

Tribe's approved gaming ordinance, declares that one of the purposes of the Act 

is to regulate the conduct of gaming owned and operated by the Otoe-Missouria 

Tribe of Oklahoma or its officially licensed agents, on Indian lands of the OtoeMissouria Tribe of Oklahoma in compliance with Public Law 100-497, October 

17, 1988, 102 Stat. 2467, the Indian Gaming Regulatory Act. 

D. Section 2-2 of the Act grants the power to the Otoe-Missouria Tribal Gaming 

Commission to establish policy to and take all actions necessary to carry out the 

provisions of this Act in compliance with IGRA. 

E. Section 3-4 requires the Tribe to cause annual audits of all gaming activity under 

a Class I1 license to be conducted within the existing independent tribal audit 

system and to provide all audit information to the National Indian Gaming 

Commission. The Act also states that the management and operation of any Class 

I1 gaming facility shall be subject to all applicable provisions of the IGRA. 

4. Role of Independent Audit Report 

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

accountants is critical to the NIGC's mission to protect the integrity of Indian gaming. A 

firm's ability to conduct an audit in accordance with generally accepted auditing 

standards and render an opinion on the financial statements prepared in conformity with 

generally accepted accounting principals 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 evidence of, among other things, the integrity of the gaming operation and, more 

specifically, of the adequacy of the books and records, the functioning of the internal 

financial controls, and the disclosure of information having a bearing on the financial 

statements. 

5. Circumstances of the Violation 

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

Rock, Oklahoma. 
B. Respondent operated its gaming facility, Seven Clans Casino, during all or part of 

the following years: 2003 and 2004. 

C. The NIGC has not received timely submitted audit reports for the fiscal years 

ending December 3 1, 2003 and December 3 1, 2004. The audit reports were due 

to the NIGC on April 29, 2004 and April 30, 2005, respectively, 120 days after 

the end of each gaming operation's fiscal year. The audit reports were received 

May 24,2004 and December 5,2005, respectively. 

D. IGRA requires that tribes submit annual audits of each gaming facility. 25 U.S.C. 

2710(b)(Z)(C). NIGC regulations require that a tribe cause to be conducted an 

annual independent audit of the financial statements of each gaming operation on 

Indian lands and submit a copy of the audit report(s) and any 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. 55 571.12, 

571.13. The Tribe is therefore in violation of these statutes and regulations, as 

well as its Gaming Ordinance, for failure to comply with IGRA. 

6. Measures Reauired to Correct these Violations 

There is no way to rectify the untimely of submission of any annual audits. The 

regulations require that audits be received within 120 days of the end of the gaming 

operation's fiscal year. 

7. Appeal 

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

to the fill 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, 1441 L Street, 

NW, Ninth Floor, Washington, DC 20005. Respondent has a right to assistance of 

counsel in such an appeal. A notice of appeal must reference this Notice of Violation. 

Within ten (10) days after filing a notice of appeal, Respondent must file with the 

Commission a supplemental statement that states with particularity the relief desired and 

the grounds therefore and that includes, when available, supporting evidence in the form 

of affidavits. If Respondent wishes to present oral testimony or witnesses at the hearing, 

Respondent must include a request to do so with the supplemental statement. The request 

to present oral testimony or witnesses must specie the names of proposed witnesses and 

the general nature of their expected testimony, whether a closed hearing is requested and 

why. Respondent may waive its right to an oral 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 result 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. 9 575.5(a), 

Respondent may submit written information about the violation to the Chairman within 

15 days after service of this notice of violation (or such longer period as the Chairman of 

may grant for good cause). The Chairman shall consider any 

in determining the facts surrounding the violation and the amount 

PH~IPN. HOGE 

~hai&nan 

National Indian Gaming Commission 

0 WENDY . HELGEMO 

Staff Attorney 
Certificate of Service 

I certify that this Notice of Violation was sent by facsimile and mailed on this 18th 

day of January, 2006 to: 

Chairman C. Michael Harwell (Agent for Service of Process) 

Otoe-Missouria Tribe of Oklahoma 

8 15 1 Highway 177 

Red Rock, OK 7465 1 

FAX: (580) 723-4273