National Indian Gaming Commission 

NOTICE OF VIOLATION 

To: John Morales, Chairman (AGENT FOR SERVICE OF PROCESS) 

Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation 

P.O. Box 1027 

Poplar, MT 52955 

FAX: (406)768-5478 

Commissioner Sidney Bird 

Tribal-State Agreements Oversight Commission 

P.O. Box 1027 

Poplar, MT 59255 

FAX: (406)768-5478 

1. Notification of Violation 

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

that the Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation (Respondent, 

Tribe, or Tribes), located in Poplar, Montana, is in violation of the Indian Gaming 

Regulatory Act (IGRA) and NIGC regulations for failure to timely submit 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 IGRA, NIGC regulations, or any provision of a tribal gaming ordinance 

or resolution approved by the Chairman. 25 C.F.R. 6 573.3. 

3. Applicable Federal and Tribal Laws 

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

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

6 27 lO(b)(2)(C). 

B. NIGC 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. 4 502.10. 
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. §§ 571.12 and 571.13. 

D. Section 101 of the Assiniboine and Sioux Tribes of the Fort Peck Indian 

Reservation Gaming Ordinance (Ordinance), the Tribes' approved gaming 

ordinance, declares that IGRA provides for certain Federal regulation of Indian 

gaming and that tribal regulation of gaming activity is vital to the protection of 

trust lands and the interests of the Tribes and their members. 

E. Section 41 1 of the Ordinance requires that each licensee, including the Tribes, 

shall cause to be conducted an annual outside audit of the operation for 

presentation to the NIGC. The tribal subdivisions shall provide their audit reports 

to the Tribes for review at least thirty (30) days before they are due to the NIGC 

and the Tribes forward all audit reports to the NIGC. 

F. Section 206 of the Ordinance defines "tribal subdivision" as the community 

organization of each Reservation community, non-profit entities organized to 

raise hnds and operate programs to promote the health and welfare of tribal 

members andfor to organize and operate ceremonies, celebrations and powwows 

and tribal school boards. 

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 (GAAP) and render an opinion on the financial statements prepared in 

conformity with GAAP 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 hnctioning 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 

Poplar, Montana. 

B. Respondent licensed a gaming operation, B & S Laundry, during all or part of 

2003,2004 and 2005. 
Respondent licensed a .gaming operation, Dad's Bar, during all or part of 2003, 

2004 and 2005. 

Respondent licensed a gaming operation, T.J.'s Quick Stop, during all or part of 

2003,2004 and 2005. 

Respondent operated a gaming operation, Tribal Express Casino, during all or 

part of 2003,2004 and 2005. 

Respondent licensed a gaming operation, Silverwolf Casino, during all or part of 

2003,2004 and 2005. 

The Tribes did not timely submit an audit report for B & S Laundry, Dad's Bar, 

T.J.'s Quick Stop, Tribal Express Casino or Silverwolf Casino for the fiscal year 

ending September 30, 2003. Audit reports were due to the NIGC on or before 

January 28, 2004, 120 days after the end of the Tribes' fiscal year. NIGC 

received audits for B & S Laundry, Dad's Bar, T.J.'s Quick Stop and Tribal 

Express Casino on July 6, 2004. NIGC received the audit for Silverwolf Casino 

on August 30,2004. 

The Tribes did not timely submit an audit report for B & S Laundry, Dad's Bar, 

T.J.'s Quick Stop or Tribal Express Casino for the fiscal year ending September 

30,2004. Audit reports were due to the NIGC on or before January 28,2005, 120 

days after the end of the Tribes' fiscal year. NIGC received audits for B & S 

Laundry, Dad's Bar, T.J.'s Quick Stop and Tribal Express Casino on May 26, 

2005. NIGC received the audit for Silverwolf Casino on January 30,2005. 

The Tribes have not submitted an audit report for B & S Laundry, Dad's Bar, 

T.J.'s Quick Stop or Tribal Express Casino for the fiscal year ending September 

30, 2005. Audit reports were due on or before January 28, 2006, 120 days after 

the end of the Tribes' fiscal year. 

The Tribes did not timely submit an audit report for Silverwolf Casino for the 

fiscal year ending September 30,2005. Audit reports were due to the NIGC on or 

before January 28, 2006, 120 days after the end of the Tribes' fiscal year. NIGC 

received the audit for Silverwolf Casino on July 14,2006. 

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

5 2710(b)(2)(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 fiscal year. 25 C.F.R. 55 571.12, 571.13. The Tribes 

are therefore in violation of these statutes and regulations, as well as Sections 101 
and 41 1 of the Ordinance, for failure to timely submit annual independent audit 

reports. 

7. Measures Required to Correct these Violations 

There is no way to rectify the late submission of an annual audit. NIGC regulations 

require that audits be received within 120 days of the end of the fiscal year. 25 C.F.R. 

5 571.13. 

8. Appeal 

Within 30 (thirty) days after service of this notice of violation, 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 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 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. 
9. 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 notice of violation (or such longer period as the Chairman of 

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

g the facts surrounding the violation and the amount 

Commission