National Indian Gaming Commission - - -- 

NOTTCE OF VIOLATION 

To: Wendsler Nosie, Chairman 

San Carlos Apacl~e Tribe 

P.O. Box 0 

San Carlos, Arizona 85550 

FAX: 928-475-2567 

TEL: 928-475-236 1 

Vicki Asenmeally, Chairman 

San Carlos Apache Tribal Gaming Conmission 

P.O. Box 1300 

San Carlos, Arizona 85550 

FAX: 928-475-2492 

TEE: 928-475-5936 

Maria Stevens, Acting Executive Director 

San Carlos Apache Tribal Ganing Commission 

(Agent for Sesvice of Process) 

P.O. Box 1300 

San Carlos, Arizona 85550 

FAX: 928-475-2492 

TEL: 928-475-5936 

Steve TitIa, Tribal Attorney 

San Carlos Apache Tribe 

Titla & Parsi, PLLC 

P.O. Box 1143 

245 S. Hill St. 

Globe, Arizona 85502 

FAX: 928-425-9048 

TEL: 928-425-8137 
Notification of Violation 

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

notice that the San Carlos Apache Tribe (Tribe), Iocated in San Carlos, Arjzona, and 

operating the Apache Gold Casino (Casino) located 5 miles East of Globe on 

Highway 70 in San Carlos, Arizona, has violated the NIGC regulations by failing to 

submit a timely annual audit. 

2. Authority 

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

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

person for violation of any provision of the ERA, NlGC regulations, or any 

provision of a tribal ordinance or resolution approved by the chairman. 25 

U.S.C. 5 2713; 25 C.F.R. $ 573.3 

3. A~pIicabIc Federal Laws and Tribal Ordinance Provisions 

A. 25. U.S.C. 9 27 P 0@)(2)(C). 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 NTGC. 

B. 25 C.F.R. 8 5 571.12 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 repartds) and 

any management letter(s) setting forth the results of the annual audi t(s) to the 

NIGC within I20 days afier the end of each gaming operation's fiscal year. 

C. San Carlos Apache Tribal Gaming Ordinance requires that the Tribe cause an 

annual audit to be conducted as foITows: 

Chapter II, Section 2.06 Audit 

A. The Tribe shaI1 cause to be conducted mually an 

independent audit of gaming operations and shall submit the 

resulting audit reports to the National Indian Gaming Commission. 

B. A11 gaming related contracts that resuIt in the purchase 

of supplies, services, or concessions in excess of $25,000.00 

annually, except contracts for professional legal and accounting 

sewices, shall be specificalIy included within the scope of the 

audit that is described in subsection A. above. 

Chapter III, Section 3.20 Duties of Director 

The Director shall, subject to the approval of the Gaming Office, perform 

all duties, exercise all powers, assume and discharge all responsibilities, 

and carry out and effect all purposes of this Code relating to the regulation 
of all gaming activity. In all decisions, the Director shall act to promote 

and ensure integrity, security, honesty, and fairness ofthe operation and 

administration oral1 gaming activity. The Directors duties sl~all include 

but not be limited to the 

following: 

(a) . . . (b) Correspond with the National Indian Gaming 

Commission and do whatever is necessary to 

complete compliance with the rules and regulations of that agency. 

Specifically, the Director shall arrange for an annual outside 

audit of authorized gaming and will provide a 

copy to the National Indian Gaming Commission. 

4. RoIe of Independent Audit Report 

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

accollntants is criticaI to the NTGG1s mission to.pratect the integrity of Indian gaming. 

A firm's abiIity to conduct m audit in accordance with general1 y 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 specificalEy, of the adequacy of the books and records, the 

functioning of the internal financial controls, and tlze disclosure of information having 

a bearing on the financial statements. 

5. Circumstances of the Violation 

A, The Tribe is a fcdernIly recognized Indian Nation with tribal headquarters in 

San Carlos, Arizona. 

B. The Tribe has operated its gaming facility, the Apache Gold Casino, from 

1994 to the present. In prior audits submitted to the NIGC, thehe fiscd year for 

the Casino ran from October 1 to September 30. In particular, in the Casino's 

most recent fiscal year, the Tribe retained the same 12 month period as iis 

fiscal year i.e., beginning October 1,2006 and ending September 30,2007. 

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

U.S.C. 2710(%)(2)(C). NIGC regulations require that a 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 fortl~ the results of the annual audit(s) to the 

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

571.13. 
D. Therefore, the Tribe's audit, based on the close of the Tribe's fiscaI year and 

the requirement for submission on or before 120 days from the dose of the 

fiscal year, was due to the NlGC on January 28,2008. 

E. In violation of NGC regulations, the Tribe failed to submit an annual 

independent audit report to the MGC until March 17,2008,49 days aiter the 

audit was due. 

6. Measures Required to Correct the Violation 

Audits must be received within 120 days of the end of a gaming operation's fiscal 

year. 25 C.F.R. $ 571 -13. While there is no remedial action that can correct the 2006- 

2007 audit, improved controls to assure timely compliance of the next audit should be 

put in place. 

7. Appeal 

Within thirty (30) days after senrice of this Notice of Violatian, The Tribe may appeal 

to rhe 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. The Tribe 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 &er filing a notice of appeal, the Tribe 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 the Tribe wishes to present oral testimony or witnesses at 

the hearing, the Tribe must include a request to do so with the suppIemental 

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. The Tribe may waive its right to an om1 bearing 

and instead elect to have the matter determined by the Commission solely on the basis 

of written suhmissians. 
8. Fine-Submission of Information 

The violation citd above may result in the assessment of a civil fine against Tribe in 

an amount not to exceed $25,000 per violation per day. Under 25 C.P.R. $ 575.5(a), 

the Trjbe may submit written information about the violation to the Chairman within 

fiiteen (1 5) days after service of this notice of violation (or such longer period as the 

Chaiman may grant for good cause). The Chairman shall consider any information 

submitted in determining the facts surrounding the violation and the amount of the 

AN~IELA COWAN 

Staff Attorney 
Certificate of Service 

1 certify that this Notice of Violation was sent by facsimile transmission nnd certified U.S. mail, 

return receipt requested, on this 90 day of May, 2008 to: 

Wendsler Nosie, Chainnan 

San Carlos Apache Tribe 

P.O. Box O 

San Cados, Arizona 85550 

FAX: 928-475-2567 

TEL: 928-475-236 1 

Vicki Asermeally, Chairman 

San Carlos Apache Tribal Gaming Commission 

P.O. Box 1300 

San Carlos, Arizona 85550 

FAX: 928-475-2492 

TEL: 928-475-5936 

Maria Stevens, Acting Executive Director 

San Carlos Apache Tribal Gaming Commission 

Agent for Service of Process 

P.O. Box 1300 

San Carlos, Arizona 85550 

FAX: 928-475-2492 

TEL: 928-475-5936 

Steve Titlq Tribal Attorney 

San Carlos Apache Tribe 

Titla & Parsi, PLLC 

P.O. Box 1143 

245 S. Hill St, 

Globe, Arizona 85502 

FAX: 928-425-9048 

TEE: 928-425-8137