National Indian Gaming Commission .. - .- 

NOTICE OF VIOLATION 

To: A.T. Stafne 

Chairman and Agent for Service of Process 

Assiniboine and Sioux Tribes of Fort Peck 

PO Box 2027 

Poplar, MT 59255 

FAX: (406) 768-5478 

TribaI -State Agreements Oversight Commission 

Am: Helen Ricker, Acting Chairperson 

P.0. Box 1027 

Poplar, MT 59255 

FAX: (406) 768-3356 

1. Notification of Violation 

The Chairman of the National Indian Gaming Commission (MGC) hereby gives 

notice that the Assiniboine and Sioux Tribes of Fort Peck (Respondent, Tribe, or 

Tribes), located in Poplar, Montana, have violated NlGC regulations by faiIing to 

submit timely annual audits. 

2. Authority 

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

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

person for vioIation of any provision of the Indian Gaming Regulatory Act (IGRA), 

NIX regulations, or any provision of a tribal gaming ordinance or resoIution 

approved by the Chairman. 25 U.S.C. $2713; 25 C.F.R. 8 573.3 

3. Applicable Federal Laws and Tribal Ordinance Provisions 

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

copy of the results of the annual audit be submified to the NIGC. 25 U.S.C. 

27IoIb2121(CSB. NXGC 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. $502.10. See also 25 U.S.C. $2710(b)(4). 

C. MGC regulations require that a tribe cause to be conducted anma1 

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 

letterls) setting forth the resuEts of the annual audit(s) to the NIGC within 120 

days after the end of each fiscal year. 25 C.F.R. $8 57 1.12 and 571.13 

Section 41 1 of Title 20 to the Assiniboine and Sioux Tribes of the Fort Peck 

Indian Reservation Gaming Ordinance (Ordinance), the Tribes" approved 

gaming ordinance, requires that "[elach Iicensee, including the Tribes, shall 

arrange for an annual outside audit for presentation to the National Indian 

Gaming Commission." It further requires that 'Wle tribal subdivisions shall 

provide their audit reports to the Tribes for review at least thirty (30) days 

before they are due to the Commission, and the Tribes shall forward all audit 

reports to the Commission." 

E. Section 206 of the Ordinance defines ''tribal subdivision" as, among other 

things, "the community organization of each Reservation community." 

4. Role of Independent Audit Report 

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

accountants is critical to the NIGCfs mission to protect the integrity of Indian gaming. 

A firm's ability to conduct an audit in accu~ce with generaIly accepted auditing 

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

with generally accepted accounting 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 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 

PopIar, Montana. 

B. Respondent licensed the following gaming operations which were open and 

operating during all or part of the Tnbal Gaming Operations' fiscal year from 

October I, 2006 to September 30,2007: 

rn B&S Laundry, Brockton, Montana 

TJ's Quickstop, Poplar, Montana 

• Silver Wolf Casino, Wolf Point, Montana 
C Git-N-Go, Wolf Point, Montana 

Tribal Express Casino, Poplar, Montana 

C. The andit reports for the above-named gaming operations were due to the 

NIGC on January 28,2008, 120 days after the gaming operations' fiscal years 

ended on September 30,2007. 

11. The NIGC received audit reports for all gaming operations on Aprjl30,2008, 

93 days after the deadline. 

E. IGRA requires that tribes submit annual audits of each gaming operation. 25 

U.S.C. 5 2710@)(2)(C). NIGC regulations require that a tribe cause ta be 

conducted an annual independent audit of the finmcid 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 audi t(s) to the 

MGC within 120 days after the end of each fiscal year. 25 C.F.R. $5 571.12, 

571.13. Respondent has therefore violated these regulations, as well as 

Section 4 11 of the Ordinance, for failure to submit timely annual independent 

audit reports. 

6. Measures Required to Correct the Violation 

There is no way to correct this violation for an untimely audit report submission. The 

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

year. 

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

appeal to the fulI Commissjon 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, 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 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 

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

the hearing, Respondent must incIude 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 525,000 per violation per day. Under 25 

C.F.R. 8 575.5(a), Respondent may submit written information about the violation to 

the Chairman within fifteen (1 5) days after service of this notice of violation (or such 

longer period as the Chairman may grant for good cause). The Chairman shall 

consider my information submitted in determining the facts surrounding the violation 

and the amount of the civil fine, if any. 
Certificate of Service 

X certify that this Notice of VioIation was sent by facsimile transmission and certified U.S. 

mail, return receipt requested, on this & y" day of June, 2008 to: 

A.T. Stafhe 

Chairman and Agent for Service of Process 

Assiniboine and Sioux Tribes of Fort Peck 

PO Box 1027 

Poplar, MT 59255 

FAX: (406) 768-5478 

Tribal -State Agreements Oversight Commission 

Attn: Helen Ricker, Acting Chairpason 

P.O. Box 1027 

Poplar, MT 59255 

FAX: (406) 768-3356