National Indian Gaming Commission 

NOTICE OF VIOLATION 

To: Narcisco Cunanan, Chairman 

Nooksack Indian Tribe 

P.O. Box 157 

Deming, WA 98244 

Fax-(360) 592-5721 

Francine Adarns, Chairperson 

Nooksack Gaming Commission 

P.O. Box 960 

Deming, WA 98244 

Fax (360) 592-2111 

Edward Wurtz, General Counsel 

Nooksack Indian Tribe 

P.O. Box 157 

Deming, WA 98244 

Fax (360) 592-5721 

NOTICE OF VIOLATION 

1. Notification of Violation 

The Chairman of the National Indian Gaming Commission WGC) hereby gives 

notice that the Nooksack Indian Tribe (Tribe), which opesares the Nooksack River 

Casino in Deming, Washington, has violated the NIGC regulations by failing to 

submit: a timely annual audit. 

2. Authority 

Under the Indian Gaming Regulatory Act (IGM) and NIGC reguIations, the 

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

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

approved tribal gaming ordinance. 25 U.S,C. 5 2713 and 25 C.F.R. 5 573.3. 
3. A~plicable Laws 

A. 25. U.S.C. 5 2710@$(2)(C). IGRA requires an annual audit of mch gaming 

c)pcration and requires that a copy of the results of the annual audt be 

submitted to the NIGC. 

B. 25 C.P.R 5s 571.12 and 571.13. NIGC regulations require that a tribe 

engagc an independent cded public accountnnt to provide an annual 

independent au&t to be prepared in accordance with generally accepted 

accounting principles and conducted in accordance with generally accepted 

auditing standards of the financial statements of each gaming operation nn 

Indian lands and submit a copy of the au&t rcport(s) and any managmclnt 

Iettet(s) setting foah the results of the annual audit(s1 to the NlGC within 

120 days after the end of each gaming operation's fiscal year. 

C. Title 56, C&g Ordinance of The Nooksack Indian Tribe, 56.05.020 

Audits provides: Thc Commission shall c~use yeafly independent audits to be 

conducted of dl garmng activities in Class I1 and Class 111 Gming, and said 

audits shd be provided to the Chkn of thc National Indian Gaming 

Commission. 

4. Role of Independcot Audit Re~ort. 

Submission of the annd independent audit report by a £inn of certified public 

accountants is critical to she NIGCk mission to protect the integrity of hdan gaming. A 

firm's ability to conduct an audit in accordance with generally accepted audting 

standards and rendcr an opinion on the hmdal statements prepared in conformity with 

generally accepted accounhg principles provides a certain level of assurance as to the 

securio- of tribd gaming revenues. Tke audit report prepared and submitted on a timely 

basis is evidence of, among other thp, the integrity of the gamtag operation and, more 

specifically, of the adequacy of the books and records, the Functioning of the internal 

financial con~ols, and the disclosure of information having a ba&g on the hnancial 

statem en ts. 

5. Circumst~nces of the Violation 

A. The 'Tribe is a fcderauy recognized In&n Nation mi& tribal headqmers in 

Deming, Washington. 

R. 'l'he 'Tribe has operated its gaming facility, the Nooksack River Casino, from 

I994 to the present The hscal year for the Casino ran ham Januq t ,2007 to 

Uccclnber 3 1,2007. 
Y Gah requires that tribes submit annual audits of cach gaming bulity- 25 U.S.C. 

fj 2720(b)(Z)(C). NIGC reguIations require hat a ttibe cause to be conducted an 

annual independent audit of the financial statements of each gaming opcmtion 

on Indian lands by engaging an independent certifted public accountant to 

provide an annual independent audit to be prepared in accordance with generally 

accepted accounting principles and conducted ia accordance with generally 

accepted auditing standards. A copy of the au&t report and management letter 

setting forth the results of the annual audit must be submitted to the NIGC 

with& 120 dnys after the end of cach fiscal ycar. 25 C.F.R 5% 571.12,571.13. 

D. Based an the close of the Tibe's fsd par and the requirement for submission 

on or bcfore 120 days from the dose of the fiscal year, the Tribe's independent 

annual audit by a ceraed public accountant prepared in accordance with 

gcneraIly accepted accounting principles and conducted in accordance with 

generally accepted auclrting standards, mas due to the NIGC on or before Apd 

29, 2008. 

E. On Apd 28,2008, Ryan Becker, Nooksrtck River Casino Chicf Financial Ofhcer, 

submitted financial d&tnents he called "a draft audit" of the pmmg 

operation's 2007 fiscal year to the NIGC. The submitted hsnd documents 

were not slgned by the ceded public accountant that performed the "draft 

audit." 

F. Pursuant to the American Institute of Certified Public Acco~~1mnts, in order to 

be in compliance with generally accepted accountiog principles and generally 

accepted audtting smdards, an independent standard certified public accountant 

audit must include the signature of the accountant who did the audit. See Public 

Company Accounting Oversight Board, Reports on Audited Financial 

Statements, AU Section 508.08(i), auditor's standard report. 

G. ImmedrateIy upon receipt of the draft audit submission from the Tribe, the 

NIGC staff spoke with Mr. Becker by telephone and advised him that what he 

called a "draft au&t7' without a certified public accaunrant signature could not 

hlhll the Tribe's obligation to submit a copy of an annual independent audit 

pursuant to 25 C.P.R. $5 571.12, 571.13. 

H. On Iune 30,2007, the Tribe submitted an annual independent audit report to the 

NIGC whch was 60 dqs late. 

6. Measures Required co Correct the Violation 

Audits must be received within 120 days of the end of a gaming operation's fiscal year. 

25 C.F.R 57 1-13. While there is no rernedd action that can correct the violation of 

failing to submit the 2006-20137 audit on a timely basis, improved controls to assure 

timely complkncc of the next au&t should be put in place. 
Within thrrty (30) days after servjce of this Notice of Violation, The Tribe may appeal to 

the full Commission under 25 C.F.R. Part 577 by submitting a notice of appal, and, if 

desired, request for hearing to the National Indran Gaming Cornmission, 1441 L Street, 

NV, Ninth Floor, Washmgron, DC 20005. The Tribe has a right to assistance of counsel 

in such an apped A noticc of appeal must reference this Notice of Violation. 

Within ten (I 0) days after filing a notice of appeal, the Tribe must fiIe with the 

Commission a supplemental statement that states with pdcularity the relief desired and 

the grounds therefore and that includes, whcn available, supporting evidence in the form 

of affidavits. If the Tribe wishes to present oral testimony or witnesses at the hearing, the 

Tribe must include a request to do so with the suppiemental statement. The request to 

present oral testimony or witnesses must specify the names of proposed witnesses and 

thc peral nature of their expected testimony, whether a closed hearing is requested and 

why. The Tribc may zyvaive its right to an oral hearing and instead elect to have the matter 

determined by the Commission solcly on the basis of written submissions. 

8. Finc-Submission of Information 

The violation cited above may result in the assessment of a civil he against Tribe ia an 

amount not to exceed 825,000 per violation per d~y. Undex 25 C.F.R. 5 575.5(a), the 

Tribe may submit written information about the violation to the Chairman within frftecn 

(15) days zlfter service of rhis noticc of Yiohtion (or such longer period as the Chairman 

may pt for pod cause). The Chairman shall consider any information submitted in 

determinin ounding the violation and the amount of the dvil he, if any. 

Staff Attorney 
Certificate of Senrice 

I certifg that this Notice of Violation was sent by facsnm.de transmission and certified U.S. mail, 

return receipt requested, on hs wA'day ofJuly, 2008 to: 

Nmcisco Cunanan, Chkan 

Nooksack Indian Tribe 

P.O.Uox 960 

Deming, WA 98244 

Fax-(360) 592-5721 

Francine Adams, Chairperson 

Nooksack Gaming Commission 

P.0.Box 960 

De-, WA 98244 , 

Pax (360) 552-2 1 1 1 

Edward Wurtz, General Counsel 

Nooksack Indian Tribe 

P.O.Box 157 

Duniug, WA 98244 

Fax (360) 592-5721