Native American Press / Ojibwe News (Bemidji, Minnesota), 2002-11-29

              INDEX
NEWS AROUND INDIAN COUNTRY
NEWS BRIEFS
COMMENTARY/EDITORIALS
CLASSIFIEDS
2
3
4
7
Tribal council should
take auditor's advice
to heart, really clean
house
page 5
Traditional methods
used to help Navajos
stop drinking
page 6
Former member of
gang gives warning
page 4
The future of
Leech Lake
page 4
Commentary
Forensic audits let genie
of accountability out of
the bottle at Red Lake,
Leech Lake
page 4
Leech Lake gets audit report
Editor s Note: See a complete copy
of the forensic audit report on pages
7-8
by Molly Miron, Staff Writer
Unaccounted for travel advances,
undocumented credit card expenses
and double payroll payments - these
are just some ofthe problems a forensic audit turned up in the Leech
Lake Band of Ojibwe.
"I think everyone here wants some
kind of accountability,'.' said Don
Romero, business and technology
consultant for RSM McGladrey, a
San Diego accounting firm conducting a forensic audit ofthe Leech
Lake Tribal Government
Romero submitted his phase one
draft report to the Leech Lake Tribal
Council on Monday and to a public
forum of tribal members on Tuesday,
November 26*.
' 1 think this is fantastic," Romero
said ofthe approximately 250 people
filling the Palace Casino Bingo Hall
on Tuesday. 'T ve done this for other
tribes and hardly anyone shows up.
Refonn is not an easy process, especially after years and years of abuse
and years and years of not enough
accountability."
The major push for a forensic audit ofthe tribe's finances began when
Secretary/Treasurer Archie LaRose
was elected in June.
LaRose hired Majestic Eagle
Mentoring to run an audit on the
tribe's businesses and departments.
However, the audit was stopped by a
restraining order. A former tribal official serving on the audit panel gave
an appearance of conflict of interest
At that point RSM McGladrey was
called in.
McGladrey is charging between
$50,000 and $60,000 for the audit
VOICE-  OF      THE       PEOPLE
photo: Bill Lawrence
Don Romero, forensic auditor and business and technology consultant at
RSM McGladrey, presents findings from Leech Lake's preliminary audits
on Tuesday, November 26lh in the Paradise Room at the Palace Casino in
Cass Lake. Leech Lakers (from left to right): tribal chairman candidate and
telecommunications manager Frankie Reese, tribal chairman candidate
and former public safety director Rocky Papasadora, and acting controller
Burton Howard listen to the auditors' findings.
web page: www.press-on.net
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Ojibwe News
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Volume 15 Issue 26       November 29,2002
and expects to complete the second
phase, which will involve further
scrutiny of financial accounts at the
management level, in about three
weeks. The audit will not look at tribe
gaming finances.
"We wanted to start with the council transactions first," Romero said.
"The council was unanimous that
they want the people to know. Nobody is trying to hide information
from you."
Romero said he was impressed
that the Tribal Council members
made clear they want to "clean their
own house first"
Present at the fomm Tuesday were
LaRose and District 1 Rep. Luke
Wilson. Absent were District 2 Rep.
Lyman Losh and District 3 Rep. Richard Robinson, who also serves as
interim chairman pending the Feb. 11
special election.
The audit was conducted from
Oct. 28 to Nov. 15 and covers Tribal
Council activities from My 1,1998
to the present. Romero said he stands
by the findings, but in seeking out
records he found many were incomplete are missing.
"It creates the opportunity for rumors and hearsay and that has to be
cleaned up right now. If you have
good accounting and follow-up a lot
of that goes away," he said.
Wide mismanagement
Travel advances are a major
source of unaccounted funds. The audit found $40,000 in open accounts
dating to 1999 for council members
and possibly as much as $800,000 in
outstanding travel advances altogether, Romero said.
Tribal policy requires travel ad-
LEECH LAKE AUDIT to page 7
Forensic audit update, Red Lake
gaming enterprises
By Bill Lawrence
In the July 12 and August 23 editions, Press/ON published the Preliminary and Part U Reports of the forensic audit of the Red Lake Gaming
Enterprises. Press/ONrecently obtained an update to the reports dated
November 14,2002 from Red Lake tribal treasurer Darrell Seki. Seki
told Press/ON that Don Romero, a Business & Technology Consultant
for RSM McGladrey, Inc., would be in Red Lake on December 3 to discuss the Report with the Red Lake Tribal Council. He said he wasn't sure
ofthe time yet due to Romero's travel plans and that those who want to
attend should contact the council office next Monday for the correct
meeting time.
The forensic audit ofthe construction costs ofthe hotel and water park
at the Thief River Falls casino and the expansions at the Thief River Falls
and Warroad casinos was authorized by Red Lake Tribal Council Resolution No. 83-02, dated May 14,2002.
At a September 10, Red Lake Tribal Council Meeting, Romero told the
council that according to preliminary numbers the hotel and water park
constmction and casino expansion costs was nearly $12 miUion overspent. He also told the council that although the audits uncovered examples of a "lack of business management, our test work did not reveal
purchases unrelated to the expansion."
The text of Forensic Audit Update Report is reproduced below.
RSM McGladrey
November 14, 2002
Red Lake Tribal Council
Mr. Darrell Seki, Sr, Tribal Treasurer
P.O. Box 550. Highway 1 East
Red Lake, MN 56671
Subject - Forensic Audit Update, Red take Gaming Enterprises
Introduction
During the periods of August 19 to 23, and September 9 to 13, 2002, we gathered information
from the accounting records ofthe Red Lake Nation and interviewed employees of Red Lake
Gaming Enterprises relating tbe expansion of your Wanoad and Thief River Falls businesses.
Our objective during this engagement was to understand and report to the Tribal Council how the
funds approved by Tribal naolution for these projects differed from what was actuaUy spent and
why these differences occurred. This is an update ofthe report issued July 7.2002 and a
summary ofthe presentations made to the Tribal Council and members ofthe Red Lake Nation in
September.
Scope
Tbe scope of this review included interviews of key employees and analyses of information on
significant purchases with the intent of.
»    Reviewing the overaU Business Plan used to manage the project (such as physical inspections
and financial updates)
• Reviewing Tribal Council Minutes
• Reviewing the history of payments and approvals
Completing a detailed review ofthe construction costs related to the expansion ofthe
Warroad Casino, Thief River FaUs Casino, and costs of the proposed "new casino" at Red
Lake
• Completing the review ofthe Lakeview Restaurant purchase
To complete this assessment, we looked at the following support;
• Vendor invoices and change orders
• Internal controls used in justifying, approving, rerx>rting, verifying and recording these
expenses
• Schedules from the external auditors
»    Construction contracts and agreements
For the comparison of budget versus actual we used data from the audited financial statements at
September 30, 2001. We also reviewed in detail, selected expenses of tbe expansion at Thief
R ivi-r Fslta hoth annroved bv the Tribe and those outside the approvals.
After discussion with management, we agreed the Lakeview Restaurant purchase was outside the
intended scope of this engagement.
Update
Our report dated July 7, 2002, noted doe Gaming Expansion consisted of two construction bonds
approved by tribal resolution:
Non-Taxable - S7,240,000 - Covers the construction and opening ofthe Waier Park at Thief
River Falls (TRF)  The non-taxable loan is defined as operations on tribal lands.
Taxable - $19,760,000 - Covers the construction ofthe Wanoad Motel (14 miUion) and the
expansion ofthe Warroad Casino (5 miUion). The taxable loan is defined as operations on trust
land and land purchased.
Budget (budgeted funds spent up to Sept 2001 - Approved by Council)
Water Park at Thief River $ 7,240,000
Hotel at Thief River SI 9.267.000
and Warroad Expansion
Total Budget S26.307,000
We reviewed the payment history provided by MiUer Schroeder for the budgeted funds and found
the payments to be supported and approved. The expenditures outside the above budget arc in
question as there was no business case or project plan.
Projects Spending (actual funds spent at September 2001)
Water Park aU nief River $ 7,344,000
Hotel at ThiefRiver and Warroad Expansion $22,279,000
TRF Casino Expansion $ 8.672.000
Total Spending iiS,292J.W
These summaries show cost overruns of approximately $ 11,788,000 not approved by tribal
resolution. These overruns were funded by a $4 million loan from the Tribe, with the remainder
from TRF casino operating capital.
RED LAKE AUDIT to page 5
Neal McCaleb
announces
resignation
Cites Cobell v. Secretary of
Interior as reason
By Jean Pagano
Neal McCaleb, Assistant Secretary for Indian Affairs, announced
his resignation from
the Depart- J
ment of Interior on
Thursday
21 November.
McCaleb,
67, has
held the
post of Assistant Secretary for Indian Affairs since June 2001. His resignation is effective at the end of
December 2002.
McCaleb was appointed by
President Bush in April 2001 and
was later confirmed by the Senate
in June of the same year. As the
head of the Bureau of Indian Af-
MCCALEB to page 6
Neal McCaleb
i^oiteemm awl*« «■"■■ !«*
WWertiKOiiie   mm
photo VincgntHill
American Indian community demonstrators march past the intersection of ']Sh St. and Chicago Avenue in South Minneapolis during a Community March for Justice' on November 18,h. The march, from the Minneapolis American Indian
Center in south Minneapolis to downtown City Hall, was, organizers wrote, "to demand action from the City Council for
American Indian victims of violence and unsolved murders. ... American Indian victims are still waiting for justice. Many
murders, sexual assaults and crimes of violence go unsolved. The cases do not get the attention they deserve from law
enforcement or the media. The American Indian community demands increased resources, complete investigations,
and the resolution of unsolved murderers. We demand that American Indian victims be treated humanely, with respect
and dignity. The American Indian community calls on the Minneapolis Police Department and all citizens to be active
participants in justice and to work toward a productive partnership between police and the community."
Angry
Anishinabeg in
»3oi*th Mpls
march on
City Hall
Fueled by the Mpls Police
Dept's shoddy handling, and
questionable investigation ofthe
recent death of Carol Garbow, a
Leech Lake Ardshinabe enrollee,
approximately 200-300 angry-
outraged Arushinabeg, including
a few chimook sympathizers,
marched on City Hall last Friday
to protest scores of unsolved killings, rapes, and other violent
crimes against American Indians.
The demonstrators marched in
MARCH to page 6
Justin Huenemann, co-chair of MUID, gave a speech which a November 22nd
March participant described as "eloquent and moving" on behalf of the
American Indian victims of violence. The marchers crowded into the first floor
hallway on the 8,h Street side of Minneapolis City Hall to listen to speakers. The
audience included Minneapolis Mayor R. T. Rybak and Police Chief Robert
Olson (to Huenemann's right). News analysis and more photos on page 4.
Ojibwe artist opens exhibition in Minneapolis
by Clara NiiSka
Joe 'Mishakeebaneesh'
Geshick is opening an exhibition, "The Feeding of the
Spirit," at Horst Galleries, 315
Lincoln Street Northeast, in
Minneapolis on Friday, December 6th, from 6-10 p.m. Opening events will include Ojibwe
singing and drumming, as well
as the more formal exhibition-
opening traditions of the Minneapolis art connoisseur community. The exhibition will be
open through January 10th.
Joe Geshick's art work
achieved international recognition during the sixteen years he
spent living and painting in 'artist quarter' warehouse digs in
downtown St. Paul. He and his
fiancee LeeAnn McCombs, a
weaver and fiber artist, moved
to Ely last year and are, LeeAnn
said, very much enjoying the
less harried pace and rural quiet
of the northcountry.
Joe, a Bois Forte enrollee,
studied art at the Art Students
League in New York during the
late 1970s, as well as working at
the Museum of the American Indian, and teaching art at Lac la
Croix reserve in Canada and in
Reno, Nevada.
Joe's work has been described
by reviewers as characterized by
"clear, integral designs and
richly textured layers of earth
tones," which "express a sense
of calmness and simplicity, illustrative of fundamental strength
and deep spiritual connection
with the natural world." Many
of Joe's recent paintings are
masterpieces reflecting Joe's
mastery of renaissance techniques of complexly layered
glazes of earth tones, and most
of his work expresses and explores his traditional Ojibwe
spiritual orientation.
The Healer
Oil painting by Joe Geshick, who describes his work: "this painting reflects
my deepest respect for medicine people. It was inspired by my uncle Bob
Geyshick, a medicine man who lived in Canada all his life. He died six
years ago. Even as a young boy living on the reservation, medicine people
have always impressed me deeply. The Healer represents a special kind of
person who has been given a gift of knowledge and wisdom by God. This
gift comes through dreams and it enables them to heal the sick and to help
guide other people with words of wisdom through their journey in life."
In addition museum-quality
oil paintings, Joe's current work
includes high-quality Giclee reproductions, art prints, and the
covers for many of Louise
Erdrich's books.
Joe Geshick also exhibits his
work online at http://
www. sundancefinearts .com.
Neadeau pleads
guilty to assault
with dangerous
weapon
St Paul, MN—Thirty-six-year-old
Duane James Neadeau from the Red
Lake Indian Reservation pled guilty
November 27,2002, in United States
District Court to assault with a dangerous weapon. Neadeau pled guilty before Judge Donovan Frank in St Paul.
ITJiiring his guilty plea hearing,
Neadeau admitted that on April 19,
2001, he assaulted another member of
the Red lake Band of Chippewa Indians with aknife.
Neaudeau faces a maximum potential penalty often years in prison and/
or a $250,000 fine. The actual sentence will be deteimined by Judge
Frank based on the federal sentencing
guidelines. A sentencing date has not
been set
The case is the result of an investigation by the Federal Bureau of Investigation and Red Lake Law Enforcement Assistant United States Attorney Joe Dixon prosecuted the case.
Tarrow sentenced
for robbery
St Paul, MN—Twenty-on-year-old
Douglas Wayne Tamow was sentenced today in United States District
Court for robbing the Gas Hut located
on the 'Trading Post" area ofthe Red
Lake Indian Reservation.
Tamow was sentenced to 57 months
in prison and three years supervised release by Judge Donovan Rank in St
PauL Tarnow pled guilty in August
2002 to one count of robbery.
At approximately 5:00 p.m on the
evening of May 17,2002, the attendant at the Gas Hut was making
change for a customer when Tamow
started taking cash from the register. A
surveillance video showed Tamow
fleeing the scene.
ROBBERY to page 5