National Indian Gaming Commission 

NOTICE OF VTOLATION 

NOV-07-04 

To: Pawnee Nation 

Attn: George Howell, President 

P.O. Box 470 

Pawnee, OK 74058 

FAX: (9 I 8) 762-6446 

Pawnee Nation Gaming Commission (Agent for Sewice of Process) 

Attn: Phammie Littlesun Knifechief, Chairman 

P.O. Box 514 

Pawnee, OK 7405 8 

FAX: (9 1 8) 762-4029 

McAfee & Taft 

Attention: David Ketelsleger, Attorney 

Two Leadership Square, 1 oth Floor 

Oklahoma City, OK 73 1 02 

FAX: (405) 235-0439 

1. Notification of Violation 

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

notice that the Pawnee Nation, located in Pawnee, OK, has violated NIGC regulations 

by faiIing to submit a timely annual audit. 

2. Authority 

Under the Indian Gaming Regulatory Act (IGRA) and NIGC regulations, 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), 

NTGC regulations, or any provision of a tribal gaming ordinance or resolution 

approved by the Chairman. 25 U.S .C. Ij 27 13; 25 C.F.R. fi 573.3 

3. Applicable Federal Laws and Tribal Ordinance Provisions 

A. 25. U.S .C. g 277 O(b)(Z)(C) - IGRA requires an annual audit of each gaming 

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

submitted to tlie NZGC. 

R. 25 C.F.R. $9 571.12 and 571.13 - NTGC regulatjons 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 audi t(s) to the 

N7GC within 120 days after the end of each fiscal year. 

C. Article 11, Section 2.6(2) of the Pawnee Nation Gaming Ordinance - 

(2) Annual Audits, At least once each calendar year, a complete audit, 

which may be encompassed within the existing independent Tribal audit 

system, will be conducted by a certified public accountant designated by 

the Tribal Gaming Commission for each Gaming Operation and Gaming 

Facility. The resulting audit reports shall be submitted promptly to the 

Tribal Gaming Commission and the National Indian Gaming Commission. 

4, Role of Independent Audit Relsort 

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

accountants is critical to the NTGC1s 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 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 financia1 controls, and the disclosure of information having 

a bearing on the financial statements. 

5. Circumstances of the Violation 

A. Respondent is a federally recognizec! Indian Nation with tribal headquarters in 

Pawnee, Oklahoma. 

B. Respondent operated its gaming facility, the Pawnee Trading Post & Casino, 

during all or part of the following years: 2005 and 2006. The fiscal year 

mded December 3 1,2006. 

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

December 31,2006. The audit report was due to the NIGC on April 30,2007. 

By NIGC regulation, the annual audits are due 120 days after the end of the 

Nation's fiscal year. 

D. The audit report was received by the NIGC on July 5,2007. Therefore, the 

audit report was 65 days late. 

E. IGRA requires that tribes submit annual audits of each gaming facility. 25 

U.S,C. 9 2710(b)(2)(C). NTGC reguiations require that a tribe cause to be 

conducted an annual independent audit o F the financial statements of each 
gaming operation on Indian lands- and submit a copy of the audit report(s1 and 

management 1etterEs) setting forth the results of the annual audit(s) to the 

NlGC within 120 days after the cnd of each fiscal year. 25 C.F.R. $5 571.12, 

571.13. The Nation is therefore in violation of these regulations for failure to 

submit a timely annual independent audit report. 

6. Measures Required to Correct the Violation 

There is no way to correct a late audit report submission. The regulations require that 

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

Within thirty (30) 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, 144 1 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 (1 0) days after filing a notice of appeal, Respondent must file with the 

Commission a supplemental statement that states with particu1arity 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 supplementaI 

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 instcad elect to have the rnattcr determined by the Commission solely on 

the basis of written submissions. 

8. Fine-Submission of Information 

The violation cited above may result in the asscssment of a civil fine against 

Respondent in an amount not to exceed $25,000 per violation per day. Under 25 

C.F.R. (i 575.5(a), Respondent may submit written information about the violation to 

the Chairman within fifteen (1 5) 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 violation 

and the amount of the civil fine, if any. 

Dated this ZJ of July, 2007. 
Staff Attorney 
Certificate of Service 

I certify that this Notice of Violation was sent by facsimile transrnissi~n and certified U.S. mail. 

return receipt requcstcd, on this 25- day of July, 2007 to: 

Pawnee Nation 

Attn: George Howell, President 

P.O. Box 470 

Pawnee, OK 74058 

FAX: (91 8) 762-6446 

f awnee Nation Gaming Commission (Agent for Service of Process) 

Attn: Phammie Littlesun Knifechief, Chairman 

P.O. Box 514 

Pawnee, OK 74058 

FAX: (9 1 8) 762-4029 

McAfee & Tafl 

Attention: David Ketelsleger, Attorney 

Two Leadership Square, 1 Olh Floor 

Oklahoma City, OK 73 102 

FAX: (4053 235-0439 

/~ebecca Chapman /