NATIONAL INDIAN GAMING COMMISSION 

NOTICE OF VIOLATION 

NOV-09-30 

TO: Crow Creek Sioux Tribe 

Attn: Brandon Sazue, Sr., Chairman 

(AGENT FOR SERVICE OF PROCESS) 

PO Box 50 

Fort Thompson, SD 57339 

FAX: (605) 245-2470 

Crow Creek Gaming Commission 

Attn: Tina Grey Owl 

PO Box 437 

Ft. Thompson, SD 57339 

FAX: (605) 245-2647 

I. Notification of Violation 

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

notice that the Crow Creek Sioux Tribe (Respondent or Tribe), located in Fort 

Thompson, South Dakota, has violated MGC regulations by failing to submit a 

timely annual audit. 

2. Authority 

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

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

person for violation of any provision of the IGM, NIGC regulations, or any 

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

25 U.S.C. $2713; 25 C.F.R. $573.3. 

3. ApvIicable Federal Laws 

A. IGRA requires an annuaI 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. 5 27 1 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 

Eetter(s) setting forth the results of the annual audit(s) to the NIGC within 

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

5s 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 be 

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

conditions, by another'person or other entity. 25 C.F.R. $ 502.10. 

4. Role of Independent Audit Remrt 

Submission of the annuaI 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 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 af 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 federaIly recognized Indian Tribe with tribal headquarters 

in Fort Thompson, South Dakota. 

B. The tribe operated its gaming operation, Lode Star Casino & Hotel, during 

a11 or part of 2007 and 2008. 

C. TGM requires that tribes submit annuaI audits of each gaming facility. 25 

U.S.C. 5 271 U(b)(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 I20 days after the end of each gaming operation's fiscaI 

year. 25 C.F.R. $8 571.12, 571.13. 

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

September 30,2008. 
E. The audit report for the gaming operation named in this violation was due 

to NIGC on or before January 28,2009. 

F. NIGC received the audit report for this gaming operation on February 25, 

2009,28 days late. 

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

annual independent audit report. 

6. Measures Required to Correct the VioIation 

Audits must be received within 12Q days of the end of a gaming operations fiscal 

year. 25 C.F.R. 9 57 1.13. While there is no remedial action that can correct the 

untimely filing of the Fiscal Year 2008 audit, improved controls should be put 

into place to ensure the timely submission of the next audit. 

Within thirty (30) days after service of this Notice of Violation, Respondent may 

appeaI to the full Commission under 25 C.F.R. Part 577 by submitting a notice of 

appeaI, and, if desired, request for hearing to the National Indian Gaming 

Commission, 144 f 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 supplementaI statement that states with particularity the relief 

desired and the grounds therefore and that incrudes, 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 oraI 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 

waives its sight to an oral hearing and instead elect to have the matter determined 

by the Commission soIely 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 fifteen (15) days after service of this notice of violation 

(or such Ionger period as the Chairman may grant for good cause). The Chairman 
shaH consider any information 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 receipt requested, on this 4th day of June, 2009 to: