575.5(a), the Tribe may submit written information about the violation to the
Chairman within 15 days after service of this NOV (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 (Joe January 2018.



statements for fiscal year 2014 were received by the NIGC on January 5,
2016; 250 days late. The audit financial statements for fiscal year 2013 were
received by the NIGC on September 17, 2014; 140 days late. The audit
financial statements for fiscal year 2013 were received by the NIGC on
August 8, 2013; 100 days late.

6. Measures Required to Correct the Violation

No remedial action can correct the violation of failing to submit financial statements
and audits within 120 days of the end of the fiscal year. 25 U.S.C. § 2710(b)(2)(C),
and 25 C.F.R. § 571.13(a).The Tribe should implement improved controls to ensure
timely submission of future financial statements and audits.

7. Appeal

The Tribe may appeal this Notice of Violation within 30 days of service. The Tribe
may either 1) request a hearing before a Presiding Official under 25 C.F.R. Part 584,
or, 2) 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 pursuant to
25 C.F.R. Part 585. In any event, an appeal of this Notice of Violation should be
submitted to the NIGC at the following address:

NIGC Attn: Office of General Counsel
1849 C Street NW

Mail Stop #1621

Washington, DC 20240

The Tribe has a right to assistance of counsel in such an appeal. If you file a notice of
appeal, you must refer to this Notice of Violation.

If the Tribe elects to have a hearing, the Tribe must file a brief with the Commission
(within ten days after filing a notice of appeal) which states with particularity the
relief desired and the grounds in support including, when available, supporting
evidence in the form of affidavits. If the Tribe prefers a closed hearing, it must
include, with the brief, a request to do so and why. If the Tribe wishes to present oral
testimony or witnesses at the hearing, the Tribe must include a request to do so with
the brief. The request to present oral testimony or witnesses must specify the names
of proposed witnesses and the general nature of their expected testimony. The Tribe
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 the Tribe
in an amount not to exceed $50,276 per violation per day. Under 25 C.F.R. §


Certificate of Service

I, Dena Wynn, certify that on January 18, 2018, NOV-18-01 was sent by Email and Certified
Mail with return receipt requested to:

Kami Sue Miller, Executive Director
Moapa Indian Gaming Commission
1 Lincoln Street

P.O. Box 340

Moapa, NV 89025

Courtesy copy to:

Darren Daboda, Chairman

Moapa Band of Paiute Indians of the
Moapa River Indian Reservation

1 Lincoln Street

P.O. Box 340

Moapa, NV 89025

—

fra Wynn
Legal Administrative Specialist
National Indian Gaming Commission



National Indian Gaming Commission

To:

NOTICE OF VIOLATION

NOV-18-01

Kami Sue Miller, Executive Director
Moapa Indian Gaming Commission
1 Lincoln Street

P.O. Box 340

Moapa, NV 89025

1. Notification of Violation

The Chairman of the National Indian Gaming Commission (NIGC) hereby gives
notice that the Moapa Band of Paiutes (Tribe), located on the Moapa River Indian
Reservation, and operating the Moapa Paiute Travel Plaza and the Moapa Tribal
Store has violated the Indian Gaming Regulatory Act (IGRA), NIGC regulations, and
the Tribe’s gaming ordinance by failing to submit timely annual audits.

2. Authority

Under 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
IGRA, NIGC regulations, or any provision of a tribal gaming ordinance or resolution
approved by the Chairman. 25 U.S.C. § 2713; 25 C.F.R. § 573.3.

3. Applicable Federal Laws and Tribal Ordinance Provisions

A. 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. 25 U.S.C. §
2710(b)(2)(C).

B. 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. 25 C.F.R. § 502.10.

C. NIGC regulations require that a tribe engage an independent certified public
accountant to provide annual independent audits of the financial statements of
each gaming operation located on Indian lands for each fiscal year. 25 C.F.R.
§ 571.12(b).

D. The NIGC regulations further require a tribe to submit a copy of the financial
statements and audits, with any management letter(s) and other


documents/reports 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.
§ 571.13.

E. The Moapa Band of Paiute Indians Tribal Gaming Code, Chapter 5, section
503, approved by the NIGC Chair on April 26, 1994 (Ordinance), requires
“All gaming authorized under this Code shall be audited by an independent
public accountant, at least annually” and “copies of the annual audit shall be
provided to the Council and the Commission.”

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 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. The Moapa Band of Paiute Indians is a federally recognized Indian tribe with
Tribal headquarters on the Moapa River Indian Reservation, in Moapa,
Nevada. The Tribe entered into a compact with the State of Nevada in 1995,
and the gaming operations, Moapa Paiute Travel Center and Moapa Tribal
Store, commenced in 1996.

B. The Tribe operated its gaming operation, Moapa Paiute Travel Center, located
at Interstate 15 Exit 75, Moapa Nevada, from January 1, 2016 to December
31, 2016.

C. During fiscal year 2016, the Moapa Paiute Travel Center offered Class III
gaming.

D. The Tribe operated its gaming operation, Moapa Tribal Store, located at 1
Lincoln Street, Moapa Nevada Interstate 15 Exit 75, Moapa Nevada, during
fiscal year 2016.

E. During fiscal year 2016, Moapa Tribal Store offered Class III gaming.


. Based on the most recent financial statements and audit submitted to the
NIGC, for fiscal year 2015, the fiscal year for Moapa Paiute Travel Plaza and
the Moapa Tribal Store runs from January 1 to December 31.

. IGRA requires that tribes submit annual audits of each gaming operation. 25
U.S.C. § 2710(b)(2)(C). NIGC regulations require that a tribe engage an
independent certified public accountant to provide annual independent audits
of the financial statements of each gaming operation located on Indian lands
for each fiscal year. 25 C.F.R. § 571.12(b). The NIGC regulations further
require a tribe submit a copy of the financial statements and audits, with any
management letter(s) and other documents/reports 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. §§ 571.13. Further, the Tribe’s Ordinance
requires the Tribal gaming agency to provide an annual independent audit to
the National Indian Gaming Commission.

. Therefore, the financial statements and audits for the Tribe’s gaming
operations’ for fiscal year 2016 were due to the NIGC on or before April 30,
2017.

The Tribe failed to submit the fiscal year 2016 financial statements and audits
to the NIGC by April 30, 2017.

The Phoenix Region Office received a letter dated April 17, 2017, from the
Moapa Tribal Chair, Darren Dadoba, requesting that the NIGC extend the
deadline to submit the FY2016 annual financial audit report from April 30,
2017, to August 1, 2017, because of delays in the completion of audit services
for fiscal years 2014 and 2015 were hindering completion of the 2016 audit.

. The Phoenix Region Office received a second letter dated May 9, 2017, from
the Tribe informing the NIGC that the fiscal year 2016 annual financial audit
report would be completed and submitted by June 30, 2017.

. On June 2, 2017, the NIGC issued a letter to Tribal Chairman, Darren
Daboda, stating that IGRA and the NIGC regulations do not allow for an
extension of time to submit audited financial statements, and that the NIGC
could not accommodate their request for an extension. Mr. Thomas further
requested that the Tribe submit the fiscal year 2016 audit of the financial
statements immediately.

. The audited financial statements for fiscal year 2016 were submitted by the
Tribe to the NIGC on July 17, 2017; 78 days late.

. The Tribe has a documented history of late audit financial submissions to the
NIGC. The audit financial statements for fiscal year 2015 were received by
the NIGC on September 30, 2016; 153 days late. The audit financial