Certificate of Service

I certify that this Notice of Violation was sent by mail and facsimile on this 6" day of
July, 2004 to:

Charles W. Murphy, Chairman (Agent for Service of Process)
Standing Rock Sioux Tribe

P.O. Box D

Fort Yates, ND 58538

FAX: 701.854.8595

Tribal Council (Agent for Service of Process)
Standing Rock Sioux Tribe

P.O. Box D

Fort Yates, ND 58538

Andr& Lord
Staff Attorney


Andrea Tord
Staff Attorney


Certificate of Service

I certify that this Notice of Violation was sent by mail and facsimile on this 6" day of
July, 2004 to:

Charles W. Murphy, Chairman (Agent for Service of Process)
Standing Rock Sioux Tribe

P.O. Box D

Fort Yates, ND 58538

FAX: 701.854.8595

Tribal Council (Agent for Service of Process)
Standing Rock Sioux Tribe

P.O. Box D

Fort Yates, ND 58538

_——

Andrea Lord
Staff Attorney



National Indian Gaming Commission

To:

NOTICE OF VIOLATION

NOV-04-03

Charles W. Murphy, Chairman (Agent for Service of Process)
Standing Rock Sioux Tribe

P.O. Box D

Fort Yates, ND 58538

Tribal Council (Agent for Service of Process)
Standing Rock Sioux Tribe

P.O. Box D

Fort Yates, ND 58538

. Notification of Violation

The Chairman of the National Indian Gaming Commission (NIGC) hereby gives notice
that the Standing Rock Sioux Tribe (Respondent), located in Fort Yates, North Dakota, is
in violation of the Indian Gaming Regulatory Act (IGRA), NIGC regulations, and its
Gaming Ordinance for failure to submit an annual audit and late submission of an annual
audit.

. 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 the Indian Gaming Regulatory Act, NIGC regulations, or any provision
of a tribal gaming ordinance or resolution approved by the Chairman. 25 C.F.R. § 573.3.

. Applicable Federal and Tribal Laws

A. 25 U.S.C. 2710(b)(2)(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 the NIGC.

ploy Hanh


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) setting forth the results of the annual audit(s) to the
NIGC within 120 days after the end of each fiscal year.

Cc. Section 23-404 of the Standing Rock Sioux Tribe’s Ordinance No. 198 -
the approved gaming ordinance requires the Tribe to obtain outside annual
audits for all of its gaming operations and to submit the results of those
audits to the NIGC.

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 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 integrity 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 Tribe with tribal headquarters
in Fort Yates, North Dakota.

B. Respondent operated its gaming facility, Bear Soldier Jackpot Bingo,
during all or part of the following years: 2002, and 2003.

Cc. To date the NIGC has not received audit reports for:

i. Bear Soldier Jackpot Bingo:
1. Fiscal Year 2003.

Dz The NIGC received the audit report for Bear Soldier Jackpot Bingo for
the fiscal year ended December 31, 2002 on May 17, 2004. The 2002
fiscal year audit was due April 30, 2003.

E. The audit report for Bear Soldier Jackpot Bingo for the fiscal year ended
December 31, 2003 has not been received by the NIGC. The 2003 fiscal
year audit was due April 30, 2004.


6. Measures Required to Correct this Violation

To correct the continuing violation, Respondent must submit an independent audit report
within 15 days of receipt of this letter for the years listed in paragraph 5 of this notice.

There is no way to rectify the late submission of the 2002 audit. The statute requires that
the audit be received within 120 days of the end of the fiscal year.

7. 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.

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. § 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 njay grant for good cause). The Chairman shall consider any
infopriat tion submftted in determining the facts surrounding the violation and the amount
pie civil fineAf any.
4

mh this ot day 9, July, 26

Philip N. LL

Chairman
National Indian Gaming Commission