National Indian Gaming Commission 

NOTICE OF VIOLATION 

To: Puyallup Tribe of Indians 

Attn: Herman Dillon, Sr. (Agent for Service of Process) 

Chairman of the Puyallup Tribal Council 

3009 E. Portland Ave. 

Tacoma, WA 98404 

I. Notification of Violation 

The Chairman of the National Indian Gaming Commission hereby gives 

notice that the Puyallup Tribe of Indians ("Tribe" or "Respondent"), located in 

Tacoma, Washington, has violated the Indian Gaming Regulatory Act ("IGRA"), 

NIGC regulations and the approved Puyallup Tribe of Indians Tribal Gaming 

Ordinance ("'Ordinance"), Res. No. 060900, as follows: 

Count 1 : The Tribe has failed to submit a timely audit report for the gaming 

operation known as BJ's Bingo, in violation of IGRA, 25 U.S.C. 3 2710(b)(2)(C), 

NIGC regulatjons, 25 C.F.R. 571.12 and 571.13, and the Tribe's Ordinance, 

Sections 4.03(b)(iv) and 5.01. 

Count 2: The Tribe has failed to submit a timely Agreed Upon Procedures ("ALP") 

report for the gaming operation known as BJ's Bingo in violation of NIGC 

regulations, 25 C.F.R. tj 542.3Cf). 

Under IGRA and NIGC regulations, the Chairman of the NIGC ("Chairman") may 

issue a Notice of Violation ("NOV") to any person for violation of my provision of 

ERA, NIGC regulations, or any provision of a tribaI gaming ordinance, regulation or 

resolution approved by the Chairman. 25 U.S.C. 8 27 13Caj; 25 C.F.R. 5 573.3. 
3. AppIicable Federal Laws and Tribal Ordinance Provisions 

TGRA provides that an individually owned Class D gaming operation that 

was operating on September 1,1986, may continue to operate if such 

gaming operation is licensed and regulated by an Indian tribe pursuant to 

an ordinance approved by the WIGC in accordance with 25 U.S.C. 5 2712; 

income to the Indian tribe from such gaming is used only for the purposes 

described in 25 U.S.C. § 27IO(b)(2)(B); not less than 60 percent of the net 

revenues is income to the Indian tribe; and the owner of such gaming 

operation pays an appropriate assessment to the NlGC under 25 U.S.C. 

Ij 271 7(a)(E) for regulation of such gaming. 25 U.S.C. 8 271 0@)(4)(B)(i). 

IGRA provides that the NIGC shall monitor Class I1 gaming conducted on 

Indian lands on a continuing basis. 25 U.S.C. 2706(b)(l). 

IGRA provides that the NIGC may demand access to and inspect, 

examine, photocopy, and audit all papers, books, and records respecting 

gross revenues of Class I1 gaming conducted on Indian lands and other 

matters necessary to cany out the duties of the NIGC under this chapter. 

25 U.S.C. 9 2706(b)(4). 

IGRA provides that the NIGC shall promulgate such regulations and 

guidelines as it deems appropriate to implement the provisions of this 

chapter. 25 U.S.C. 9 2706(b)(10). 

IGRA requires an annual audit of each gaming operation and requires that 

a copy of the results of the annuaI audit be submitted to the WIGC. 25 

U.S.C. 8 2710(b)(2)(C). 

NIGC regulations require that a tribe cause to be conducted annual 

independent audits of the financia1 statements of each gaming operation on 

Indian lands and submit a copy of the audit report(s) and any management 

Ietta(s) setting forth the results of the annual audit(s) to the NIGC within 

120 days after the end of each fiscal year. 25 C.F.R. 3 5 571.12 and 57 1.13. 

The Tribe's Ordinance requires that the Tribe cause to be conducted 

annually an independent audit of gaming operations and to submit the 

resulting audit report to the NIGC. Puyallup Trihe of Indians Tribal 

Gaming Ordinance Sections 4.03(b)(iv) and 5.0 1. 

NIGC regulations require that each Class II Tribal gaming authority, in 

accordance with the Tribal gaming ordinance, establish and implement 

tribal internal control standards (TICS") that equal or exceed the Ievel of 

control set forth in the NIGC Minimum Internal Control Standards 

("MICS'?. 25 C.F.R. $ 542.3(c). 
1. MGC regulations require that each Class II gaming operation develop and 

implement an internal control system that, at a minimum, complies with 

the TICS. 25 C.E.R. 5 542.3(d). 

J. NIGC regulations require that a tribe cause an independent certified public 

accountant ("CPA") to perform an AUP to verify that the gaming 

operation is in compliance with the NIGC MKS and submit two copies of 

the report to the NIGC within I20 days of the gming operation's fiscal 

year end. 25 C.F.R. 6 542.3Cf). 

K. The Tribe's Ordinance was enacted in order to set the terms and conditions 

for gaming activity conducted within the exterior boundaries of the 

Puyallup Indian Reservation. Puyallup Tribe of Indians Tribal Gaming 

Ordinance, Section 1.01. 

L. The Ordinance authorizes Class 11 gaming as defined in IGRA and by 

regulations promulgated by the NIGC. Puyuliup Tribe of Indians Tribal 

Gaming Ordinance, Sections 2.03 and 3.01. 

M. The Ordinance authorizes the Tribe to license and regulate Class TI gaming 

activities owned by any person or entity other than the Tribe and 

conducted on Jhdian lands within the Tribe" jurisdiction. PuyaEEup Tribe 

of Indians Tribal Gaming Ordinance, Section 4.04(a). 

N. An individuaIIy owned Class It gaming operation that is licensed and 

regulated by the Tribe, and was operating on September 1, 1986, may 

continue to operate if the gaming operation remains in full compliance 

with a11 applicable Tribal and federal laws. Puyallzsp Trihe of hdians 

Tribal Gaming Ordinance, Section 4.04(b)(i)(A). 

0. The Ordinance requires that each place, facility, or location on Indian 

lands within the Tribe's jurisdiction which conducts Class I1 gaming must 

be subject to annual outside audits that are provided to the Tribe and the 

NIGC. PuyaUup Tribe of Indians Tribal Gaming Ordinance, Section 

4.031a) & (b)(iv). 

P. The Ordinance requires that the Tribe promulgate regulations for control 

of internal fiscal affairs of a11 gaming operations, including prescribing 

minimum procedures for safeguarding the gaming operation's assets and 

revenues, incIuding recording of cash and evidences of indebtedness, and 

mandatory count procedures. Such procedures shall establish a controlled 

environment, accounting system and control procedures that safeguard the 

assets of the organization, assure that operating transactions are properly 

recorded, promote operational efficiency, and encourage adherence to 
prescribed policies. Puyallup Tribe ofIndians Tribal Gaming Ordinance, 

Section S.O2(a). 

4. Role of Independent Audit Rwort and Agreed Upon Procedures 

Submission of the annual independent audit report by a firm of CPAs is critical to the 

NIGC's mission to protect the integsity of Indian gaming. A CPA firm's ability tto 

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 principles provides a certain leveI of assurance as to the security of hbal 

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. 

Submission of the AUP report by a firm of CPAs is critical to the NIGC's mission to 

protect the integrity of Indian gaming. A firm's ability to conduct testing and identify 

internal control deficiencies provides a certain level of assurance as to the security of 

tribal gaming revenues. Since gaming transactions are based on cash or cash 

equivalents, gaming operations generally are considered to possess a high level of 

inherent risk. The AUP report prepared and submitted on a timely basis is evidence 

of, among other things, the integrity of the gaming operation and, more specifically, 

the adequacy of the internal control standards associated with gaming and gaming 

related transactions and activities. 

5. Circumstances of the Violation 

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

Tacoma, Washington. 

B. Respondent has licensed an individually owned Class II gaming operation 

known as BJ's Bingo, located within the exterior boundaries of the PuyaIIup 

Indian Reservation and the City of Fife, Washington. 

C. The fiscal year fox BJ's Bingo ends on March 31 of every calendar year. 

D. BJ's Bingo operated gaming activities, and Respondent regulated such gaming 

activities, during all or part of the fiscal year ending March 3 1,2007. 

E. IGRA requires that tnbes submit annual audits of each gaming faciIity. 25 

U.S.C. 3 27 1 O(b)(Z)(Cj. MGC 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 management letter(s) setting forth the results of the annuaI audit(s) to the 
NIGC within 120 days after the end of each fiscal year of the gaming 

operation. 25 C.F.R. $5 57 1.12, 571.13. "Gaming operation" means each 

economic entity that is licensed by a tribe, operates the games, receives the 

revenues, issues the prizes, and pays the expenses. 25 C.F.R. $ 502.10. 

F. The audit report for tribal Iicensee BJ's Bingo was due to the NIGC on July 

30,2007. As required by NTGC regulations, the annual audits are due 120 

days after the end of the gaming operation's fiscal year, but because that day 

(July 29,2007) fell on a Sunday, the report was due the folIowing business 

day (July 30,2007). 

G. The audit report was received by the NIGC on October 5,2007. Therefore, 

the audit report was 67 days late. 

H. NIGC regulations require that tribes submit AUP reports for each gaming 

facility within 120 days aRer the gaming operation's fiscal year end. 25 

C.F.R. 5 542.310. 

I. The AUP submission for tribal licensee BJ's Bingo was due to the NIGC on 

July 30,2007. As required by NIGC regulations, AUP submissions are due 

120 days after the end of the gaming operation's fiscal year, but because that 

day (July 29,2007) fell on a Sunday, the AUP submission was due the 

following business day (July 30,2007). 

J. The AUP" submission was received by the NlGC on October 15,2007 

Therefore, the AUP submission was 77 days Iate. 

6. Measures Required to Correct the Violation 

Late submission of an annual audit cannot be corrected. NIGC regulations require 

that audits be received within 120 days of the gaming operation's fiscal year end. 25 

C.F.R. jilj 571.12 and 571.13 

Late submission of an AUP report cannot be corrected. NIGC regulations require that 

AUP reports be received within 120 days of the gaming operation's fiscal year end. 

25 C.F.R. 9 542.3(f). 

7. Appeal 

Within thirty (30) days after service of this NOV, 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, 1441 L 

Street, N W, Ninth Floor, Washington, DC 20005. Respondent has a right to 

assistance of counsel in such an appeal. A notice of appeal must reference this NOV 
Within ten (1 0) 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 specify 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 eIect 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.E.R. 5 575.5(a), Respondent may submit written information about the violation to 

the Chairman within fiReen (1 5) days after service of this NOV (or such longer 

period as the Chairman may grant for good cause]. The Chairman shall consider any 

information submitted in determining the facts surrounding the violation and the 

rrnouardirhciT iirny. 

,/ 

National 1ndiancaming Commission 

National Indian Gaming Commission 
Certificate of Service 

I certify that this Notice of Violation was sent by facsimile transmission and certified U.S. mail, 

return receipt requested, on this 6th day of December, 2007 to: 

PuyalIup Tribe of Indians 

Attn: Herman Dillon, Sr. (Agent for Service of Process) 

Chairman of the PuyaIlup Tribal Council 

3009 E. Portland Ave. 

Tacoma, WA 98404 

~eMe Moore