NATIONAL INDIAN GAMING COMISSEON 

NOTICE OF VIOLATION 

TO: Pauma Band of Mission Indians 

Attn: Christobal Devess, Chairman 

(Asen! for Senrice of Process) 

P.O. Box 369 

Pauma Valley, California 92061 

FAX: (7GO) 742-3422 

Pauma Gaming Commission 

Atln: konora Cline 

P.O. Box 89 

Pauma ValIcy, California 

FAX: (760) 742-3387 

Mark Radoff, Tribal Attorney 

609 Sot~th Escondido BIvd 

Escondido, CA 92025 

FAX: (760) 746-8941 

1. Notification of Violation 

The Chaiman of the NationaI Indian Gaming Commission (NIGC) hereby gives 

notice that the Pawna Band of Mission Indians (Respondent or Tribe), located in 

Pauma Valley, California, has violated NIGC reguIations by failing to sulmit a 

timely annual: audit. 

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

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

pcrson for violation of any provision of the ERA, NlGC regulations, or any 

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

25 U.S.C. 5 2713; 25 C.F.R. $ 573.3. 
3. Applicable Federal Laws and Tribal Ordinance Provisions 

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

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

U.S.C. 6 271 O(b){2)(C). 

B. NEGC reguIations 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 reportrs) and any management 

lctter(s) setting forth the resuIts of the annuaI audit(s) to the NIGC within 

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

st571.12 and 571.13. 

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

that is licensed by a tribe, operates the games. reccives 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 othcs entity. 25 C.F.R. 5 502.1 0. 

4. Role of Independent Audit Report 

Submission of the mud 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 

prepmired 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 internaI fmancial 

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 Pauma VaIIey, California. 

B. The Tribe operated its gaming facility, Casino Pauma, during all or part of 

2006-2007. 

C. IGRA requires that tribes submit annual audits of each garning facility. 25 

U,S.C. S, 27 '1 0@)(2)(C). NZGC regulations require that a tribe cause lo be 

conducted an mual independent audit of the financial statements of each 

gaming operation on Indian lands and submit a copy of the audit rcportls) 

and management lcttcr(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. 8s 571.12. 571.13. 

13. The fiscal year for the gaming operation named in this violation ended 

September 30,2007. 

E. The audit report for the facility named in this violation was due ro NIGC 

on or hefore January 28,2008. 

F. NTGC received the audit report for this facility on February 29,2008, 32 

days late. 

G. The Tribe is in vioIation of NIGC regulations for failure to submit a timely 

annual independent audit report. 

6. Measures Required to Correct the VioIation 

Audits must be received within 120 days of the end of a gaming operations fiscal 

year. 25 C.F.R. 5 57 1.13. While there is no remedial action that can correct the 

2007 audit, improved controls to ensure timely compliance of the next audit 

should bc put in place. 

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

appeal to the full Commissien 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 counsel in such an appeal. A notice of 

appeal must reference this Notice of Violation. 

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

Commission a supplemental statement that states with particularity the reIief 

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

evidence in the form of afidavits. 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 

specifi the names of proposed wihesses and the general nature of their expectcd 

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

waives 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 ciied above may result in the assessment of-a civil fine against 

Respondent in an amount not to exceed $25,000 per vioIaiion per day. Under 25 
C.F.R. 3 575.5Ca). Respondent may submit written information about the violation 

to the Chairman within fifteen (1 5) days aftcr service of this notice of vio !ation 

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

shall consider any information submitted in determining the facts surrounding thc 

violation and the amount of the civil fine, if any. 

*- -1KA1 I-El . MCMILLAY 

Staff Attorney 
Certificate of Service 

I certify that this Notice of Violation was sent by facsirniIe transmission and certified 

U.S. mail, return receipt requested, on this -%@day of August, 2008 to: 

Pauma Band of Mission Indians 

Attn: Christobal Devers, Chairman 

(Agent for Service of Process) 

P.O. Box 369 

Pauma Valley, CnIifornia 92061 

FAX: (760j 742-3422 

Paurna Gaming Commission 

Am: Leonora Cline 

P.O. Box 89 

Pauma Valley, California 

FAX: (760) 742-33 87 

Mark Radoff, Tribal Attorney 

609 South Escondido BIvd 

Escondido, CA 92025 

FAX: (760) 746-8941