National Indian Gaming Commission 

(1 rl 

NOTICE OF VIOLATION 

To: General Counsel (Agent for Service of Process) 

Post Office Box 128 

Towaoc, CO 81 134 

Selwin White Skunk, Chairperson 

Ute Mountain Ute Tribe 

P.O. Box 248 

Towaoc, CO 81 334 

FAX: (970) 565-0941 

Sonya Ketchurn, Executive Director 

Ute Mountain Ute Gaming Commission - 

P.O. Box BB 

Towaoc, CO 81334 

FAX: (970) 565-0941 

1. Notification of Violation 

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

the Ute Mountain Ute Tribe (Respondent or Tribe), located in Towaoc, Colorado, is in 

violation of the Indian Gaming Regulatory Act (IGRA), NIGC regulations, and the Tribe's 

Gaming Ordinance for failure to submit a timely annual audit 

2. Authoriq 

Under regulations of the National Indian Gamrng Commission, the Chairman of the NIGC 

(Chairman) may issue a Notice of Violation (NOV) to any person for violation of any 

provision of the Indian Gaming Regulatory Act (IGRA), NIGC regulations, or any provision 

of a tribal gaming ordinance or resolution approved by the Chairman. 25 C.F.R. § 573.3. 

3. Applicable Federal and Tribal Laws 
A. 25 U.S.C. § 2710@)(2)(C) - IGRA requires an annual ault of each gaming 

operation and requires that a copy of the results of the annual audit be submitted 

to the NIGC. 

B. 25 C.F.R. §§ 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 au&t(s) to the 

NIGC within 120 days after the end of each fiscal year. 

C. Section 204(a)(14) of the Ute Mountain Ute Reservation Gaming Ordmance, as 

amended- the Tribe's approved gaming ordinance - requires Respondent, 

through its agent, the Ute Mountain Ute Gaming Commission, to obtain outside 

annual audits for all of its gaming operations and to submit the results of those 

au&ts to the NIGC. 

4. Role of Independent Audit Re~ort 

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

is critical to the NIGC's mission to protect the integnty of Indian gaming. A firm's ability to 

conduct an audit in accordance with generally accepted aulting 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 integnty 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 Triie with tribal headquarters in 

Towaoc, Colorado. 

B. Respondent operated its gaming facility, Ute Mountain Casino, during all or part 

of the following year 2003 & 2004. 

C. The NIGC received an untimely audit report for the fiscal year ending 

September 30,2004. The audit report was due to the NIGC on January 28,2005, 

120 days after the end of the Tribe's fiscal year. The audit was received by the 

NIGC on April 28,2005. 

D. IGRA requites that tribes submit annual audits of each gaming facility. 

25 U.S.C. 2710@)(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. 5s 571.12, 

571.13. The Tribe is therefore in violation of these statutes and regulations, as 

well as section 204(a)(14) of the Tribe's Gaming Ordinance, for failure to submit 

a timely annual independent audit report. 

6. Measures Rewired to Correct these Violations 

There is no way to rectify the late submission of the 2004 audit. The regulations requite that 

audits be received within 120 days of the end of the fiscal year. 

7. Appeal 

Within 30 (hrty) 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. 

8. Fine--Submission of Information 

The violation cited above may result in the assessment of a civil he against Respondent in 

an amount not to exceed $25,000 per violation per day. Under 25 C.F.R. § 575.5(a), 

information about the violation to the Chairman within 15 

notice of violation (or such longer period as the Chairman of the 

good cause). The Chairman shall consider any information 

g the facts surrounding the violation and the amount of the civil 

Chairman 

National Indian Gaming Commission 
Staff Attorney . 
Certificate of Sewice 

I certify that this Notice of Violation was sent by facsimile and mailed on this 3rd day 

of June 2005 to: 

General Counsel (Agent for Service of Process) 

Post Office Box 128 

Towaoc, CO 81 134 

Selwin White Skunk, Chairperson 

Ute Mountain Ute Tribe 

P.O. Box 248 

Towaoc, CO 81334 

FAX: (970) 565-0941 

Sonya Ketchum, Executive Director 

Ute Mountain Ute Gaming Commission 

P.O. Box BB 

Towaoc, CO 81334 

FAX: (970) 565-0941 

1 And Lord 

Staff Attorney