NOTICE OF VIOLATION 

To: Glen Edwards, Chairman (Agent for Service of Process) 

Swinomish Gaming Commission 

12885 Casino Drive 

Anacortes, WA 98221 

Fax: (360) 299-1618 

Brian Cladoosby, Chairman 

Swinomish Indians of Swinomish Reservation, Washington 

P.O. Box 817 

LaConner, WA 98257 

Fax: (360) 466-5309 

James Jannetta 

Swinomish Tribal Attorney 

P.O. Box 817 

LaConner, WA 98257 

Fax: (360) 466-5309 

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

that the Swinomish Indians of the Swinomish Reservation (hereafter referred to as 

"Respondent"), located in Anacortes, Washington, is in violation of the Indian Gaming 

Regulatory Act (IGRA), NIGC regulations and its Gaming Ordinance for failure to 

submit annual audits and quarterly statements of gross assessable revenue. 

2. Authority. 

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

NIGC (hereinafter "Chairman") may issue a Notice of Violation (hereinafter "NOV") to 

any person for violation of any provision of the IGRA, NIGC regulations, or any 

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

C.F.R. 3 573.3. 
3. Applicable Federal and Tribal Laws: 

A. 25 U.S.C. 5 2710(b)(2)(C) - An annual audit of each gaming operation is 

required and a copy of the results of the annual audit must be submitted to 

the NIGC. 

B. 25 C.F.R. $5 571.12 and 571.13 - 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 NIGC within 120 days after the end of each 

fiscal year. 

Section 16-02.040 of the Swinomish Indians of the Swinomish 

Reservation's Gaming Ordinance - In compliance with 25 U.S.C. 5 

2710(b)(2)(C)and (D) and Appendix A, Section 5 of the Tribal-State 

Compact, all gaming activities shall be subject to an audit by independent 

certified public accountants, not less than annually, and copies of the 

annual audit shall be provided to the NIGC. All contracts for supplies, 

services, or concessions for a contract amount in excess of $25,000 

annually (except contracts for professional legal or accounting services) 

relating to Class I1 or Class I11 gaming shall be subject to such audits. 

4. Role of Independent Audit Report. 

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

accountants is critical to the NIGC7s 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. The circumstances of the violation are: 

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

in LaConner, Washington. 
B. Respondent continuously operated its gaming facility, Swinomish 

Northern Lights Casino, during all or part of fiscal year 2005. 

C. To date the NIGC has not received audit reports or management letters for 

Swinomish Northern Lights Casino for fiscal year 2005. 

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

2710(b)(2)(C). 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 NIGC within 120 days after the end of each fiscal 

year. 25 C.F.R. 5s 571.12-13. Respondent is therefore in violation of IGRA, 25 U.S.C. 

27 1 O(b)(2)(C), NIGC regulations, 25 C.F.R. 5 5 57 1.12- 13, and Respondent's Gaming 

Ordinance at section 16-02.040 for failure to submit an annual independent audit report to 

the NIGC. Respondent's fiscal year ended on December 25, 2005. Therefore, 

Respondent's annual audit was due on April 24,2006. 

7. On April 26, 2006, the Tribe requested an extension for filing of the audit due to 

unforeseen circumstances. The NIGC advised the Tribe that it does not grant extensions 

for the preparation and submission of audits. 

8. To correct this continuing violation, Respondent shall submit an independent audit report 

and management letter for 2005 within 15 days of receipt of this letter. 

9. Appeal. 

Within 30 (thirty) 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, 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 NOV. 

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 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 elect to have the 

matter determined by the Commission solely on the basis of written submissions. 

10. 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. 5 575.5(a), 

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

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

Commission may grant for good cause). The r7any Chairma information 

submitted in determining the facts surrounding the olation and the ount of the civil 

fine, if any. 

Dated this &Ih day of August, 2006 

National Indian Gaming Commission 

Staff Attorney C/ 
CERTIFICATE OF SERVICE 

I certify that the Notice of Violation: NOV-06-16 for the Swinomish Indians of Swinomish 

Reservation has been sent by facsimile and U.S. mail this zh day of August, 2006, to: 

Glen Edwards, Chairman (Agent for Service of Process) 

Swinomish Gaming Commission 

12885 Casino Drive 

Anacortes, WA 98221 

Fax: (360) 299-1618 

Brian Cladoosby, Chairman 

Swinomish Indians of Swinomish Reservation, Washington 

P.O. Box 817 

LaConner, WA 98257 

Fax: (360) 466-5309 

James Jannetta 

Swinomish Tribal Attorney 

P.O. Box 817 

LaConner, WA 98257 

Fax: (360) 466-5309