National Indian Gaming Commission 

NOTICE OF VIOLATION 

To: Kalispel Tribe of Indians 

Attn: Glen Nenema, Chairman 

(Agent for Service of Process) 

P.O. Box 39 

1481 N. LeClerc 

Usk, WA 99180 

FAX: (509) 445-1705 

KaIi spel Tribal Gaming Agency 

Ath: Debbie Flandro, Chairperson 

1 OW. Hayford Rd . 

Usk, WA 99 1 80 

FAX: (509) 343-2579 

Miller Nash LLP 

Attn: Christine M. Masse, P.C. 

4400 Two Union Square 

601 Union Street 

SeaitIe, WA 98101 

FAX: (206) 622-7485 

1. Notification of Violation 

The Chaiman of the National Indian Gaming Commission CPJIGC) hereby gives 

notice that the Kalispel Tribe of Indians, located in Usk, Washington, has violated 

NIGC regulations by failing to submit a timely annual audit. 

2. Authority 

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

Chairman of the NTCC (Chairman) may issue a Notice ofviolation (NOV) to any 

person for vioIation of any provision of the Indian Gaming Regulatory Act (IGRA), 

NIGC regulations, or any provision of a tribal gaming ordinance or resolution 

approved by the Chairman. 25 U.S.C. (j 2713; 25 C.F.R. tj 573.3 
3. Applicable Federal Laws and Tribal Ordinance Provisions 

A. 25. U.S.C. 5 27 1 O(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. 

B. 25 C.F.R. $ $ 571.12 and 57 1.13 - NIGC regulations require that a tribe cause 

to be conducted mual 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 letter(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. 

Section 11-6.04 of the Kalispel Tribal Gaming Ordinance - 

The Board's duties shall include but not be Iimited to the following: 

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 Board shall arrange for an annual outside audit of 

authorized gaming and will provide a copy to the National Indian Gaming 

Commission. The audits wilI include all gaming related contracts resulting in 

expenditures of $25,000 or more in any year, except fox professional legal and 

accounting services. 

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? 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 financia1 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, the Kalispel Tribe of Indians, is a federally recognized Indian 

Nation with tribal headquarters in Usk, Washington. 

B. Respondent operated its gaming facility, the Northern Quest Casino, during all 

or part of the foIlowing years: 2006 and 2007. The fiscal year began on 

October 1,2006 and ended September 30,2007. 
C. The NIGC received an untimely financial statement for the fiscal year ending 

September 30,2007. The statement was due to the NlGC on January 28, 

2008. By NIGC regulation, these audits are due 120 days after the end of the 

Tribe's fiscal year. 

D. The audit was received by the NIGC on April 1,2008. Therefore, the audit 

was 63 days late. 

E. IGRA requires that tribes submit annuaI audits of each gaming facility. 25 

U.S.C. Ij 27 10(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 120 days after the end of each fiscal year. 25 C.F.R. 5 (i 571. E 2, 

571 -1 3. The Nation is therefore in violation of these regulations for failure to 

submit a timely annual independent audit report. 

6. Measures Required to Correct the Violation 

There is no way to correct a late audit submission. The regulations require that these 

audits be received within 120 days of the end of a gaming operation's fiscal year. 25 

C.F.R. (j 571.13. 

7. Appeal 

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

appeal to the hII 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 heating 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. 5 575.5(a), Respondent may submit written information abo~~t the violation to 

the Chairman within fifteen (1 5) days after service of this notice of violation (or such 

longer period as the Chairman may grant for good cause). The Chainnan shall 

consider any information submitted in determining the facts surrounding the vioIation 

and the amount of the civil fme, if any. 

Staff Attorney 
Certificate of Service 

I certify that this Notice of Violation was sent by facsimiIe transmission and certified U.S. mail, 

return receipt requested, on this 30th day of April, 2008 to: 

KalispeF Tribe of Indians 

Attn: Glen Nenema, Chairman 

(Agent for Service of Process) 

P.O. Box 39 

1481 N. LeClerc 

Usk, WA 99 I 80 

FAX: (509) 445-1 705 

Kalispel Tribal Gaming Agency 

Attn: Debbie Flandro, Chairperson 

100 N. Hayford Rd. 

Usk, WA 99 1 80 

FAX: (509) 340-6753 

Miller Nash LLP 

Attn: Christine M. Masse, P.C. 

4400 Two Union Square 

601 Union Street 

Seattle, WA 98101. 

FAX: (206) 622-7485