National Indian Gaming Commission 

NOTICE OF VIOLATION 

To: Confederated Salish and KooEenai Tribes 

Attn: James H. Steele, Jr., Chairman 

P.O. Box 278 

Pablo, MT 59855 

FAX: (406) 275-2806 

Confederated Salish and Kootenai Tribal Gaming Commission 

Attn: Fornest Lester, Chairman and Agent for Service of Process 

P.O. Box 278 

Pablo, MT 59855 

FAX: (406) 676-4264 

I. Notification of Violation 

The Chaiman of the National Tndian Gaming Cemmission (NIX) hereby 

gives notice that the Confederated Salish and Kootenai Tribes (Respondent or 

Tribe), located in Pablo, Montana, have violated NIGC regulations by failing to 

submit a timely annual audit. 

2. Authority 

Under the Indian Gaming Regulatory Act (ERA) and NGC regulations, the 

Chaiman 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 

resoIution approved by the Chairman. 25 U.S.C. 27 13; 25 C.F.R. 9 573.3 

3. Applicable Federal Laws and Tribal Ordinance Provisions 

A. IGM requires an annual 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. Ij 2710(b)(2)(C). 

B. NIGC regulations require that a tribe cause to be conducted annual 

independent audits of the financia1 statements of each gaming operation 

on Indian lands and submit a copy of the audit report(s) and any 
management l&ter(s) setting forth the results of the annuaI auditls) to 

the NIGC within 120 days after the end of each fiscal year, 25 C.F.R. 

$5 571.12 and 571.13. 

C. NIGC regulations and the Tribal Gaming Ordinance 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 opcrated by a tribe directly; by a 

management contractor; or, under certain conditions, by another person 

or other entity." 25 C.F.R. 502. E 0; Confederated Salish and Kootenai 

Tribes Tribal Gaming Ordinance, "Gaming Operation" p3. 

D. The Tribal Gaming Ordinance requires that "[tlhe Commission shall 

cause to be conducted annually an independent audit of Gaming 

Operations and shall submit the resulting audit reports to the NIGC." 

Confederated Salish and Kootenai Tribes Tribal Gaming Ordinance 

5 1 0.03(a). 

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 af Indian 

gaming. A firm's abiIity 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 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 internal financial 

contmls, 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 Pablo, Montana. 

B. Respondent operated the foIlowing gaming facilities during all or part of 

the S&K Gaming fiscal year from October 1,2006 to September 30, 

2007: 

rn Kwataqnuk, Polson, Montana 

rn Gray Wolf Peak Casino, Missoula, Montana 
C. The fiscal yew for all gaming operations named in this violation ended 

September 30,2007. 

D. The NIGC has not received any audit reports for tho gaming operations 

whose fiscal years ended September 30,2007. The audit reports were 

due to the NIGC on Janzrq 28,2008. 

E. IGRA requires that tribes submit annual audits of each gaming facility. 

25 U.S.C. I$ 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 management letter(s) setting forth the results of the annual 

audit(s) to the NIGC within 120 days afier the end of each fiscal year. 

25 C.F,R $9 571 .EZ, 571.13, The Tribe is therefore in violation of these 

seguIations for failure to submit a timely annual independent audit 

report. 

6. Measures Required to Correct ithe Violation 

There is no way to correct this vioIation for an untimely audit report 

submission. The regulations require that audits be received within 120 days of 

the end of the fiscal year. 

Additionally, however, there is a continuing violation because the Tribe has yet 

to submit any audit reports for the fiscal year ended September 30,2007. The 

continuing violation ceases upon the NIGC's receipt of the delinquent audit 

reports. 

Within thirty (313) days after senrice of this Notice oSViolation, Respondent 

may appeal to the full Commission under 25 C.F.R. Part 573 by submitting a 

notice of appeal, and, if desired, request for hearing to the National Indian 

Gaming Commission, 144 I L Street, W, 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 (TO) 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 dosed 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 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 Chaiman within fifteen (15) days after service of this notice of 

violation (or such longer period as the Chairman may grant for good cause). 

The Chairman shall consider any information submitted in determining the 

facts surrounding the YioIation and the amount of the civil fine, if any. 

/ 

d- Dated this of Joly, 2008. 
Certificate of Service 

I certify that this Notice of Violation was sent by facsimiIe transmission and certified U.S. 

mail, return receipt requested, on this )&day of July, 2008 to: 

Confederated Salish and Kootenai Tribes 

Ath: James H. Steele, Jr., Chairman 

P,O. Box 278 

Pablo, MT 59855 

FAX: (406) 275-2806 

Confederated Salish and Kootenai Tribal Gaming Commission 

Attn: Forrest Lester, Chairman and Agent for Service of Process 

P.O. Box 278 

Fort Thompson, SD 59855 

FAX: (406) 636-4264