NATIONAL INDIAN GAMING COMMISSION 

NOTICE OF VIOLATION 

TO: Port Gamble SWallarn Indian Tribe 

Attn: Ronald Charles, Chair 

(Agent for Service o f Process) 

3 1 9 5 2 Little Boston Road NE 

Kingston, WA 95364 

FAX: (360 )297-7097 

Port Gamble S'Klallam Gaming Board 

Attn: Rose E. Purser 

7959 Salish Lane NE 

Kingston, WA 98346 

FAX: (3GO) 297-1291 

Rogina Bcchvi th 

3 1 9 1 2 Little Boston Road NI;: 

Kingston, WAS 98364 

FAX: (360) 297-7097 

1. Notification of Violation 

The Chairman of the National Indian Gaming Commission (NTGC) hcrcby gives 

notice that the Port Gamble SXlallam Tribe (Respondent or Tribe). located in 

Kingston, Washington, has vioIated NTGC regulations by failing to submit a 

timely annual audit. 

2. Authority 

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

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

person for violation of any provision of the IGRPL, NIGC regdations, or any 

provision of a tribal gaming ordinance or resolution approved by the Chairman. 

25 U.S.C. 8 2713; 25 C.F.R. 8 573.3. 
3. Amlicable Federal Laws and Tribal Ordinance Provisions 

A. IGRA requires an annual audit of each gaming operation and requires that 

copy of the results of the annual audit be submitted to the NIGC. 25 

U.S.C. g 271 O(b)[2){C). 

B. 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 

letterds) setting forth the results of the annual audit(s) to the NlGC within 

I20 days after the end of each gaming operation's fiscal year. 25 C.F.R. 

69 571.12 and 571.13. 

C. NIGC regulations 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 he 

operated by a fmbe directly; by a management contractor; or, under certain 

conditions, by another person or other entity. 25 C.F.R. 502.1 0. 

4. RoIe of Independent Audit Report 

Submission of the annual independent audit report by a fim 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 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 

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 tFihal headquarters 

in Kingston, Washington. 

B. The tribe operated its gaming facility, The Point Casino, during all or part 

of 2007. 

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

U.S.C. 2710@)(2)(C). NIGC regulations require that a tnbe 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(s1 
and rnanagcment letter(s) setting forth the results of the annvaI audit(s) to 

the NIGC within 120 days afier the end of each gaming operation's fiscal 

year. 25 C.F.R. g$ 571.12,571.13. 

D. The fiscaI year for the gaming operation named in this violation ended 

December 3 1,2007. 

E. The audit report for the facility named in this violation was due to NIGC 

on or before April 29,2008. 

F. NIGC received the audit report for this facility on September 8,2008, 1 32 

days Iatc. 

G. The Tribe is in vioIation of NIGC regulations for failure to submit a timely 

annual independent audit report. 

6. Measures Required to Comct the Violation 

Audits must be received within 120 days of the end of a gaming operations fiscal 

year. 25 C.F.R. (j 57 1.13. While there is no remedial action that can correct the 

2007 audit, improved controls to ensure timely compliance of the next audit 

should be put in place. 

7. Appeal 

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 light 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 statcrnent that states with particularity tl~c relief 

desired and the grounds therefore and that includes, when available, supporting 

evidence in the form of affidavits. If Respondent wishcs to present oral testimony 

or witnesses at the hearing, Respondent must include n request to do so with the 

supplmental staterncnt. The request to present oral testimony or witnesses must 

specify the namcs of proposed witnesses and the general nature of their expectcd 

testimony, whether a closed heating is requested and why. Respondent may 

waives its right to an oral hearing and instcad elcct to have the mattcr determined 

by thc Commission solely on the basis of written submissions. 
8. Fine-Submission of Information 

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

Respondent in an amount not to exceed S25,000 per violation pet day. Under 25 

C.F.R. rj 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 pmiod as the Chairman may grant for good cause). The Chairman 

shall consider any infomation submitted in determining the facts surrounding the 

violation and the amount of the civil fine, if any. 

Staff Attorney 
Certificate of Service 

I certify that this Notice of Violation was sent by facsimile transmission and certified 

U.S. mail, return rcceipt requested, on this -.-day of October, 2008 to: 

&-- Dcna Wynn