Contents

Message from the Chairman of the Board 2 Message from the President & CEO 3 Board of Directors 4 Band Council Resolutions 6

Reports Licensing 8 Compliance 10 Communications 12 Management 13

Financial statements 14

Indigenous Gaming Regulators Annual Report 2012-2013

2012 - 2013 Annual Report 1 Chairman of the Board

On behalf of the Indigenous Gaming Regulators (IGR) Board of Directors and the Federation of Indian Nations (FSIN) I present the IGR 2012/2013 Annual Report. IGR had another excellent year due to the dedication of the board, management and staff.

Six years have passed since IGR began licensing on-reserve charitable gaming. During the past year, over ninety percent of on-reserve charitable gaming became licensed by IGR. The outstanding statistics of the past year can only lead to greater autonomy for and propel IGR to shift into Phase II of the SIGL Regulatory Agreement, which will include registering gaming employees

The success at IGR is due to the commitment of First Nations leaders and charities upholding the vision of the FSIN Chiefs-in-Assembly for our own First Nations regulator. IGR embodies the ideal of self-determination. First Nations jurisdiction over gaming can only be achieved through the successful operation of First Nations gaming institutions such as IGR. As is illustrated by this publication, IGR continues to operate above and beyond all industry standards for regulators. message Thank you to the First Nations communities who continue to support IGR and contribute to our success.

FSIN Vice-Chief Bobby Cameron Chairman IGR Board of Directors

2 Indigenous Gaming Regulators President & CEO message

On behalf of IGR management and staff, I present the 2012/2013 Annual Report. I am pleased to report that this fiscal year was immensely successful for IGR in terms of licensing on-reserve charitable gaming. We have exceeded and maintained licenses for seventy-five percent of Bingo operations from the Grandfathered Bingo Operations List. We have licensed an astounding ninety percent of on-reserve charitable gaming.

IGR began licensing charitable gaming on April 2, 2007. Six years have passed since IGR embarked on Phase I (licensing charitable gaming operations) of the three phase plan for licensing implemented by the Federation of Saskatchewan Indian Nations (FSIN) Chiefs-in-Assembly in the SIGL Regulatory Agreement. In the consecutive years that followed IGR has experienced many successes and tremendous growth in the numbers of licenses issued for on-reserve charitable gaming.

Once again, IGR received an unqualified audit. This is because our administration policies, procedures and processes remain strong at IGR. We at IGR are ready to take on the challenges around implementing Phase II of the SIGL Regulatory Act, and begin the registration of gaming employees.

We are proud that IGR remains the only First Nations regulator in . This is due to the commitment of the Board of Directors, management and staff, to the vision of First Nations leaders, of a First Nations regulator for First Nations citizens. We will continue to work diligently for the communities and charities we represent.

Thank you to all of the First Nations leaders and charities who have supported and continue to support IGR. Without their input and guidance we would not have had such a successful year. They make a huge difference in the lives of First Nations citizens and IGR is proud to be a part of the process.

Sincerely

Gregory Ahenakew President & CEO Indigenous Gaming Regulators Inc.

2012 - 2013 Annual Report 3 Senator George PeeAce Board of Directors Senator George PeeAce is from the Yellowquill First Nation in Territory. In 1972, he was hired as band administrator for his Chief Leo Omani home reserve. He later served on Council and was elected district Chief Leo Omani is from the in Treaty representative. He was elected Chief of Yellowquill 6 Territory. He serves on the IGR Board of Directors as the in 1983 and served as a Vice Chief of the FSIN representative for the Prince Albert Grand Council (PAGC). from 1988 to 1991. He was appointed to the There are sixty-four IGR licensed charitable gaming operations FSIN Senate in 2000 and serves as the Senate’s in the PAGC territory. IGR licenses and regulates the table representative on the IGR board games at the Northern Lights Casino in PAGC territory.

Chief Todd Peigan

Chief Todd Peigan is from the Pasqua Chief Robert First Nation and represents the Fill Opikokew Hills Qu’appelle (FHQ) Tribal Council on the IGR Board of Directors. There

directors Chief Robert Opikokew is from the Canoe Lake are three IGR licensed charitable gaming operations in the First Nation in Territory. Chief Opikokew FHQ Territory. IGR licenses and regulates the table games at is a new member on the IGR Board of Directors the Living Sky Casino in Swift Current, Saskatchewan. Chief and represents the Meadow Lake Tribal Council Peigan is confident that IGR will accomplish their mandate in (MLTC). There are twelve IGR licensed charitable their quest to license all the First Nations with charitable gaming gaming operations in the MLTC Territory. operations.

Dwayne Paul

Dwayne Paul of is the representative Chief Darin Poorman for the Tribal Council (STC). Chief Darin Poorman is from the There are fourteen licensed charitable gaming and represents the Touchwood operations in the STC territory. In addition, IGR Agency Tribal Council (TATC) on the Indigenous Gaming licenses and regulates the table games at the Regulators Board of Directors. There are six IGR licensed Dakota Dunes Casino in the Whitecap Dakota charitable gaming operations in the TATC territory. First Nation.

4 Indigenous Gaming Regulators Board of Directors directors

Chief Norman Whitehawk Chief Steven Jim Chief Norman Whitehawk of Cote First Nation represents the Tribal Council Chief Steven Jim is from the Witchekan Lake First (YTC) on the IGR Board of Directors. There are three Nation in Territory. He serves on the IGR IGR licensed charitable gaming operations in the YTC Board of Directors for the Agency Chiefs Tribal Council territory. IGR licenses and regulates the table games at (ACTC). There are four IGR licensed charitable gaming the Painted Hand Casino in Yorkton, Saskatchewan. operations in the ACTC territory.

Chief Lori Whitecalf

Chief Lori Whitecalf from Sweetgrass represents the Agency Tribal Council (BATC). There are four IGR licensed charitable gaming operations in the Chief Calvin Sanderson BATC Territory. IGR also licenses and regulates the Chief Calvin Sanderson table games at the Gold of the Chakastapaysin Eagle Casino in North First Nation represents , Saskatchewan. Chief Whitecalf believes that the Independent First Nations on the IGR Board of it is important that we as First Nations people control Directors. Currently, there are fifteen IGR licensed our own interests such as regulating our own gaming. charitable gaming operations within the independent First Nations.

Councilor Debbie Maxie

Councilor Debbie Maxie is a member of the White Bear First Nation. She represents the Southeast Treaty (SET) 4 Tribal Council on the IGR Board of Directors. IGR licenses and regulates the table games at the Bear Claw Casino in SET 4 Territory.

2012 - 2013 Annual Report 5 Band Council Resolutions

Under the terms of the 2002 Gaming Framework Agreement, each First Nation must pass a BCR to designate a gaming licensing authority if they are involved in gaming activities on-reserve. First Nations have a choice in designating their regulator. They may choose IGR, the provincial government (SLGA) or a First Nations or Tribal Council Authority. However, the licensing authority must have the capacity to regulate and be a duly recognized licensing authority.

Saskatchewan First Nations have shown confidence in IGR’s ability to provide them with licensing & regulatory services. Of the 75 Saskatchewan First Nations, IGR has received endorsement from 71 of the 73 First Nations who conduct gaming on their First Nations lands. IGR thanks the First Nations listed below for their continued support. First Nation Date signed

Ahtahkakoop First Nation June 15, 2004 Beardy’s & Okemasis First Nation April 24, 2001 Big Bear Band July 03, 2004 April 23, 2004 Birch Narrows Nation April 29, 2003 Black Lake Denesuline Nation February 14, 2005

BCRs Buffalo River Dene Nation April 23, 2001 Canoe Lake First Nation August 05, 2003 Carry the Kettle First Nation October 2007 Chakastapaysin Nation September 03, 2003 Clearwater River Dene Nation October 12, 2004 Cote First Nation January 23, 2004 October 06, 2003 Cumberland House Cree Nation February 26, 2002 July 22, 2003 English River First Nation October 01, 2004 Fishing Lake First Nation May 19, 2000 July 14, 2004 Fond Du Lac Denesuline Nation March 14, 2007 George Gordon First Nation August 18, 2004 Hatchet Lake Denesuline Nation March 13, 2007 Island Lake First Nation May 01, 2003 September 04, 2003 Joseph Bighead aka: Big Island Cree April 13, 2010 Kahkewistahaw First Nation September 20, 2004 Kawacatoose First Nation June 03, 2004 January 12, 2004 Key First Nation February 03, 2004 Kinistin First Nation April 09, 2001 April 26, 2001 Little Black Bear First Nation March 26, 2004

6 Indigenous Gaming Regulators Band Council Resolutions

Little Pine First Nation September.17, 2003 Lucky Man First Nation - No Gaming on Reserve March 17, 2003

Makwa Sahgaiehcan First Nation May 07, 2003 BCRs Mistawasis First Nation November 02, 2001 Montreal Lake Cree Nation November 01, 2005 September 29, 2004 Mosquito Grizzly Bear’s Head, Lean Man First Nation July 10, 2001 Muscowpetung First Nation December 10, 2004 May 22, 2001 February 09, 2004 April 30, 2004 Nekaneet First Nation April 28, 2003 May 08, 2001 September 21, 2004 One Arrow First Nation March 20, 2004 Onion Lake First Nation April 15, 2003 August 30, 2004 Peepeekisis First Nation August 17, 2004 Pelican Lake First Nation March 17, 2003 Peter Ballantyne Cree Nation December 18, 2004 Peter Chapman First Nation September 02, 2003 Pheasant Rump Nakota First Nation March 08, 2006 November 29, 2004 January 21, 2005 May 26, 2003 Red Pheasant First Nation July 07, 2004 Sakimay First Nation October 21, 2003 July 25, 2001 September 08, 2003 Standing Buffalo Dakota Nation May 25, 2001 May 08, 2001 Sturgeon Lake First Nation January 13, 2004 Sweet Grass First Nation April 21, 2005 Thunderchild First Nation March 16, 2004 Wahpeton Dakota Nation February 26, 2003 Waterhen Lake First Nation April 09, 2003 White Bear First Nation October 02, 1996 Whitecap Dakota First Nation June 07, 2004 Witchekan Lake First Nation January 15, 2004 Wood Mountain First Nation - No Gaming on Reserve May 30, 2003 Yellow Quill First Nation May 14, 2003 Young Chippewayn First Nation September 01, 2004

2012 - 2013 Annual Report 7 Licensing

IGR licenses and regulates on-reserve charitable gaming which includes Bingos, Breakopens (Nevadas), Raffles, Texas Hold’em Poker Tournaments Monte Carlo Events and SIGA Table Games. Licensed charitable and religious groups raise funds for meaningful causes through these activities. IGR is responsible for ensuring accountability for the conduct and management of operations we license. We work with various stakeholders, including our licensees, to develop policies, while monitoring trends and developments in the industry. This ensures that our licensees are successful in their fundraising activities, while demonstrating integrity, transparency and accountability in all their activities.

The Licensing Department is responsible for laying the foundation for the integrity of on-reserve charitable gaming by establishing standards through which charitable organizations are licensed and regulated. The Licensing Department is directly involved in every detail of the licensing and reporting processes for charitable or religious organizations participating in gaming activities on designated First Nations.

Each Year the Licensing Department works with First Nations communities and hundreds of volunteer groups to authorize the conduct and management of fundraising events for charitable or religious purposes. The eligibility of these groups to conduct charitable gaming events is established, through a comprehensive application and approval process.

The Licensing Department works diligently to ensure charitable groups understand how charitable gaming on First Nations is regulated and how they can benefit from conducting gaming events. Licensing staff members often provide information about charitable gaming through training sessions targeting specific areas such as financial reporting and management of operations. Special presentations for conferences or

Report meetings can also be requested. The IGR Licensing Department has an officer assigned to each First Nation charity. These officers provide one-on-one advice and assistance to First Nations with training sessions on topics such as completing events reports, banking requirements and use of proceeds. To set up training sessions or any other on charitable gaming activities in your community please call 477-5700 in Saskatoon or toll free at 1-877-477-4114.

IGR continually reviews and refines licensing procedures and policies to streamline workflow and improve the turn-around time in processing applications. The Licensing Department will continue to improve communication with clients and other stakeholders to increase awareness of the licensing policies, standards and processes. Such efforts improve workflow, information-sharing and promote high standards of client service.

The department employs various strategies to train our licensees on conducting charitable gaming events and the related reporting requirements. This past year, a variety of IGR licensees attended regional charitable gaming workshops hosted in 2 centrally located First Nations communities. During the 2012/13 fiscal year the Licensing Department had 86 community visits to facilitate the one-on-one training.

Licences

The number of licences issued by IGR continues to be steady. 91 Charitable gaming licences were issued in 2007/2008 106 Charitable gaming licences were issued in 2008/2009 128 Charitable gaming licences were issued in 2009/2010 145 Charitable gaming licences were issued in 2010/2011 146 Charitable gaming licences were issued in 2011/2012 137 Charitable gaming licences were issued in 2012/2013

8 Indigenous Gaming Regulators Licence Type 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Report Bingo 40 57 71 87 93 87 Breakopen 25 31 39 38 34 30 Raffle 8 1 5 9 8 2 Municipal Raffle 0 0 4 0 5 4 Monte Carlo 0 0 0 0 0 0 Texas Hold’em 9 2 4 6 4 4 Table Games 9 5 5 5 6 6

Note: 2007-2008 Four (4) Table Games licences expired in June therefore, renewals account for the high number of licenses issued under the table games column. Also the fifth Casino (Dakota Dunes) opened up later that year.

Charitable Gaming Grants

The charitable gaming grant program was implemented in 2006-07 to help stabilize revenue to the charitable gaming sector which was negatively affected by the opening of casinos, and the introduction of the VLT program in the province. Through the grant program, the provincial government issues payments based on 25 percent to the net revenue generated by an organization through licensed gaming activities up to a maximum of $100,000 per year per organization. IGR calculates this percentage on behalf of the licensed charities. Calculations are based on reporting of all licensed charitable gaming activities. In this fiscal year 2012-2013 $453,919.00 in grant payments were recommended by IGR.

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 181,969 248,471 334,397 329,365 424,856 453,919

Note: IGR was not operational until April 2, 2007, Therefore, 2006 – 2007 grant is reflected as such.

2012 - 2013 Annual Report 9 Compliance

Audit Services

The IGR Audit Services Department conducts audits and financial reviews of the books and records of First Nations charitable gaming activities on an on-going basis. These audits are conducted in accordance with Canadian Generally Accepted Auditing Standards, and include the examination of evidence supporting each charitable organization’s reported revenues and expenses.

In the 2012/13 fiscal year, audits were performed on 16 charitable gaming licences, including:

• 11 Bingo Licences • 4 Breakopen Licences • 1 Raffle Licence

The results of these audits are used in the calculation of the charitable gaming grants available to each organization. In the 2012/13 fiscal year, In addition, the Audit Services Department conducted 275 charitable gaming grant financial reviews, including:

• 225 Bingo reviews • 11 Raffle reviews • 4 Texas Hold’em reviews • 35 Breakopen reviews

Report Inspection Services

The Inspection Services Department conducts inspections of on-reserve charitable gaming activities to ensure that these operations are conducted in accordance with the terms and conditions of their license. In the 2012/13 fiscal year, 110 charitable gaming inspections were conducted, including:

• 74 Bingo inspections • 24 Breakopen inspections • 11 Raffle inspections • 1 Texas Hold’em inspections

The Inspection Services Department also conducts inspections of Table Games at all SIGA casinos to monitor compliance with the Table Games Terms and Conditions, rules of play, and employee procedures as outlined in the SIGA Live Games Manual. In the 2012/13 fiscal year, 427 casino inspections were conducted at the following locations:

• 55 at Bear Claw Casino • 94 at Dakota Dunes Casino • 74 at Gold Eagle Casino • 65 at Living Sky Casino • 73 at Northern Lights Casino • 66 at Painted Hand Casino

10 Indigenous Gaming Regulators INDIGENOUS GAMING REGULATORS Report AUDIT AND INSPECTION SERVICES As At March 31, 2013 2012-2013 2011-2012 2010-2011 2009-2010 2008-2009 INSPECTION SERVICES: Casino Bear Claw Casino 55 55 54 53 49 Dakota Dunes Casino 94 92 93 94 85 Gold Eagle Casino 74 79 70 62 62 Living Sky Casino 65 65 58 57 - Northern Lights Casino 73 78 72 57 55 Painted Hand Casino 66 62 58 53 53 Subtotal Casino Inspections 427 431 405 376 304

Charitable Gaming Bingo 74 79 74 53 19 Raffle 11 9 4 1 1 Breakopen 24 17 21 23 3 Texas Hold’em 1 3 8 3 6 Subtotal Charitable Gaming 110 108 107 80 29 Inspections TOTAL INSPECTIONS 537 539 512 456 333

AUDIT SERVICES: Charitable Gaming Audits: Bingo 4411 11 11 6 6 Raffle 1 1 1 1 Breakopen 4 3 4 4 3 Texas Hold’em 1 1 Total Charitable Gaming 4916 16 16 12 9 Audits

Charitable Gaming Grant Financial Reviews: Bingo 225 230 173 165 94 Raffle 11 9 2 2 4 Breakopen 35 3 22 31 32 Texas Hold’em 4 7 4 4 6 Total Financial Reviews 275 249 201 202 136

2012 - 2013 Annual Report 11 Communications

The IGR Communications Department strives to keep the First Nations communities and other stakeholders informed on developments with on reserve charitable gaming and to maintain IGR’s high corporate profile. In the past six years the Communication Department made 749 community visits indicated on the chart below. As of April 2, 2013, IGR has been operational for six successful years. During this time, IGR staff members conducted informational and consultative workshops to First Nations governments, on-reserve charities, and interested patrons at trade shows events. Our workshops included information on what IGR is all about, legalities around charitable gaming, how to apply for charitable gaming licenses and how licensing benefits on-reserve charities.

IGR Management and Staff have accomplished another successful year. In the fiscal year 2012/2013, the IGR Licensing and Communications Department made a total 100 community visits to conduct workshops for informational or training purposes. Communications staff members attended 13 trade shows where they provided information to countless numbers of volunteers who operate charitable gaming on-reserve.

Report The Gaming Rules Newsletter was published 5 times in the fiscal year 2012/2013 and distributed to First Nations communities and institutions to ensure constant and effective communication of charitable gaming issues as they arose. The IGR Communications Department designs various advertising tools that are printed and distributed widely to reach a large segment of First Nations leaders, as well as on-reserve charitable gaming volunteers and beneficiaries of charitable gaming. New advertising campaigns were developed and distributed by the department in 2012/2013.

Our achievements at IGR are due in large part to the guidance and support received from the members and stakeholders we serve, as well as our very dedicated Board of Directors.

12 Indigenous Gaming Regulators Report

2012 - 2013 Annual Report 13 INDIGENOUS GAMING REGULATORS INC.

FINANCIAL STATEMENTS

March 31, 2013

14 Indigenous Gaming Regulators Deloitte LLP 122 1st Ave. S. Suite 400, PCS Tower Saskatoon SK S7K 7E5 Canada

Tel: (306) 343-4400 Fax: (306) 343-4480 www.deloitte.ca INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF INDIGENOUS GAMING REGULATORS INC.

We have audited the accompanying financial statements of Indigenous Gaming Regulators Inc., which comprise the statements of financial position as at March 31, 2013, March 31, 2012, and April 1, 2011, and the statements of operations and members’ equity and cash flows for the years ended March 31, 2013 and March 31, 2012, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Indigenous Gaming Regulators Inc. as at March 31, 2013, March 31, 2012 and April 1, 2011 and the results of its operations and cash flows for the years ended March 31, 2013 and March 31, 2012 in accordance with the Canadian accounting standards for not-for-profit organizations.

Chartered Accountants June 3, 2013 2012 - 2013 Annual Report 15 INDIGENOUS GAMING REGULATORS INC. STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY years ended March 31

2013 2012

REVENUE Operating funding (Note 6) $ 3,089,598 $ 2,936,879 Amortization of deferred contributions related to equipment and leasehold improvements (Note 7) 101,935 89,719 Other income 40,276 49,276 Gain on disposal of equipment 25,900 33,500 3,257,709 3,109,374

EXPENSES Salaries and benefits 2,245,051 2,107,918 Office and equipment costs 200,072 200,821 Board of directors 152,065 163,611 Staff travel and sustenance 123,161 125,046 Amortization 101,935 89,719 Professional development 60,614 38,537 Advertising and promotion 57,393 58,525 Membership Services Agreement (Note 5) 55,000 55,000 Automotive expenses 50,018 47,706 Consultants 49,094 50,585 Meeting expenses 39,275 19,896 Miscellaneous 33,487 48,927 Telephone 30,574 36,002 Audit fees 14,980 12,519 Stationery and supplies 14,110 28,627 Photocopying and printing 11,592 8,716 Books, subscriptions and membership dues 9,663 8,913 Budget review committee 4,403 4,397 Postage and courier 4,310 3,109 Bank charges and interest 912 800 3,257,709 3,109,374 EXCESS OF REVENUE OVER EXPENSES AND MEMBERS' EQUITY $ - $ -

16 Indigenous Gaming Regulators 1 INDIGENOUS GAMING REGULATORS INC. STATEMENTS OF FINANCIAL POSITION as at

March 31, March 31, April 1, 2013 2012 2011 (Note 2) (Note 2) CURRENT ASSETS

Cash $ 888,728 $ 396,354 $ 319,522 Short-term investments - 400,000 300,000 Accounts receivable 1,895 9,113 19,344 Prepaid expenses 38,452 54,551 28,041 929,075 860,018 666,907 EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Note 4) 59,786 60,918 62,459 OTHER ASSETS 18,800 18,800 18,800 $ 1,007,661 $ 939,736 $ 748,166

CURRENT LIABILITIES

Accounts payable and accrued liabilities (Note 5) $ 216,180 $ 188,849 $ 202,809 Deferred revenue (Note 6) 712,895 671,169 464,098 929,075 860,018 666,907 DEFERRED CONTRIBUTIONS RELATED TO EQUIPMENT AND LEASEHOLD IMPROVEMENTS (Note 7) 78,586 79,718 81,259 MEMBERS' EQUITY - - - $ 1,007,661 $ 939,736 $ 748,166

APPROVED BY THE BOARD

...... Director

...... Director

2012 - 2013 Annual Report 17

2 INDIGENOUS GAMING REGULATORS INC. STATEMENTS OF CASH FLOWS years ended March 31

2013 2012

CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES Excess of revenues over expenses $-$- Adjustment for: Gain on disposal of equipment (25,900) (33,500) Amortization of deferred contributions related to equipment and leasehold improvements (101,935) (89,719) Amortization 101,935 89,719 (25,900) (33,500) Changes in non-cash working capital Accounts receivable 7,218 10,231 Prepaid expenses 16,099 (26,510) Accounts payable and accrued liabilities 27,330 (13,960) Deferred revenue 41,726 207,071 66,473 143,332

CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES Disposal (purchase) of short-term investments 400,000 (100,000) Proceeds from disposal of equipment 25,901 33,500 Purchase of equipment (100,804) (88,178) Deferred contributions related to equipment and leasehold improvements 100,804 88,178 425,901 (66,500) NET INCREASE IN CASH 492,374 76,832 CASH POSITION, BEGINNING OF YEAR 396,354 319,522 CASH POSITION, END OF THE YEAR $ 888,728 $ 396,354

18 Indigenous Gaming Regulators

3 INDIGENOUS GAMING REGULATORS INC. NOTES TO THE FINANCIAL STATEMENTS year ended March 31, 2013

1. NATURE OF ORGANIZATION

Indigenous Gaming Regulators Inc. (the “Corporation”), formerly Saskatchewan Indian Gaming Licensing Inc., was incorporated under The Non-Profit Corporations Act of Saskatchewan on July 28, 1995.

The Corporation was established as part of the 1995 Gaming Agreement between the Federation of Saskatchewan Indians Inc. (the “FSI”) and the Province of Saskatchewan. On June 11, 2002, the Corporation signed the SIGL Regulatory Agreement and FSI signed the 2002 Framework Agreement with the Province of Saskatchewan. These agreements give the Corporation the capacity to license and regulate lottery schemes on reserve and Saskatchewan Indian Gaming Authority Inc.’s (“SIGA”) table games.

2. IMPACT ON THE CHANGE IN THE BASIS OF ACCOUNTING

The Corporation has elected to apply Canadian accounting standards for not-for-profit organizations (the “new standards” or “ASNPO”).

These financial statements are the first financial statements for which the Corporation has applied ASNPO.

The financial statements for the year ended March 31, 2013, were prepared in accordance with the accounting principles and provisions set out in Section 1501, First- time Adoption by Not-for-Profit Organizations, for first time adopters of this basis of accounting.

There was no impact to the financial statements as a result of adopting the new standards.

The Corporation has not elected to adopt any of the exemptions available under Section 1501.

3. SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with Canadian ASNPO and include the following significant accounting policies:

2012 - 2013 Annual Report 19

4 INDIGENOUS GAMING REGULATORS INC. NOTES TO THE FINANCIAL STATEMENTS year ended March 31, 2013

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

Use of Estimates

The preparation of the financial statements in conformity with Canadian ASNPO requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosures for contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. The main area of measurement uncertainty is related to the estimated useful lives of equipment for purposes of calculating amortization. Actual results could differ from those estimates.

Revenue Recognition

The Corporation follows the deferral method of accounting for its contributions. Under the deferral method, contributions are recognized in the year in which related expenses are incurred based on plans approved by the Budget Review Committee of the Corporation. The Budget Review Committee consists of two representatives from the Corporation, two from Saskatchewan Liquor and Gaming Authority and one independent member.

Equipment and Leasehold Improvements

Equipment and leasehold improvements are recorded at cost and amortized using the straight-line method over the asset’s useful life at the following rates:

Vehicles 2 years Furniture and equipment 5 years Computer equipment 3 years Leasehold improvements 5 years (term of the lease)

A full year of amortization is recorded in the year of acquisition.

Funding used for equipment and leasehold improvements is deferred and amortized on the same basis as the asset to which it relates.

Management has performed an evaluation of long lived assets and has not identified indications that their carrying value is less than their recoverable amount.

Other Assets

Other assets consist of cultural art which is not expected to depreciate in value and therefore is not amortized. 20 Indigenous Gaming Regulators 5 INDIGENOUS GAMING REGULATORS INC. NOTES TO THE FINANCIAL STATEMENTS year ended March 31, 2013

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

Short-Term Investments

Short-term investments are comprised of guaranteed investment certificates and are recorded at amortized cost.

Financial Instruments

The organization initially measures its financial assets and financial liabilities at fair value. The organization subsequently measures all its financial assets and financial liabilities at amortized cost.

Financial assets measured at amortized cost include cash, short-term investments and accounts receivable.

Financial liabilities measured at amortized cost include accounts payable and accrued charges.

Transaction costs related to financial assets and financial liabilities are included or deducted in the initial measurement of the asset or liability.

4. EQUIPMENT AND LEASEHOLD IMPROVEMENTS

Net Book Value Accumulated March 31, March 31, April 1, Cost Amortization 2013 2012 2011

Vehicles $ 137,869 $ 103,087 $ 34,782 $ 34,151 $ 34,051 Furniture and equipment 190,674 171,071 19,603 11,964 9,586 Computer equipment 115,587 110,186 5,401 13,386 15,988 Leasehold improvements 140,145 140,145 - 1,417 2,834 $ 584,275 $ 524,489 $ 59,786 $ 60,918 $ 62,459

2012 - 2013 Annual Report 21 6 INDIGENOUS GAMING REGULATORS INC. NOTES TO THE FINANCIAL STATEMENTS year ended March 31, 2013

5. RELATED PARTY TRANSACTIONS

Related parties to the Corporation include the FSI and its economic and community development and education entities and Saskatchewan Tribal Councils and First Nations. Included in accounts payable and accrued liabilities is $13,753 (March 31, 2012 - $NIL; April 1, 2011 - $29,721) owing to the FSI.

On October 18, 2002, the Corporation and the FSI signed the Membership Services Agreement whereby the Corporation pays a fee of $55,000 per annum for corporate, political, and technical management and support services provided by the FSI.

6. OPERATING FUNDING

2013 2012

Funding received from SIGA $ 3,232,128 $ 3,232,128

Add: Revenue deferred from prior year 671,169 464,098

Less: Revenue deferred to future year (712,895) (671,169) Funding of additions to equipment and leasehold improvements (100,804) (88,178) $ 3,089,598 $ 2,936,879

7. DEFERRED CONTRIBUTIONS RELATED TO EQUIPMENT AND LEASEHOLD IMPROVEMENTS

March 31, March 31, April 1, 2013 2012 2011

Deferred contributions, beginning of year $ 79,718 $ 81,259 $ 61,523

Contributions from operating funding used for equipment and leasehold improvement additions 100,804 88,178 92,400

Net book value of disposed equipment and leasehold improvements - - (729)

Amortization for the year (101,935) (89,719) (71,935) $ 78,587 $ 79,718 $ 81,259

22 Indigenous Gaming Regulators

7 INDIGENOUS GAMING REGULATORS INC. NOTES TO THE FINANCIAL STATEMENTS year ended March 31, 2013

8. COMMITMENTS

The Corporation has obligations under operating leases for office space and equipment. Future annual minimum lease payments are as follows:

2014 $ 7,075 2015 7,075 2016 1,315 2017 1,315 2018 658

9. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The Corporation, through its financial assets and liabilities, has exposure to the following risks from its use of financial instruments: credit risk, market risk and interest rate risk.

Credit Risk

The Corporation’s principal financial assets are cash, short-term investments, and accounts receivable, which are subject to credit risk. The carrying amounts of financial assets on the balance sheet represent the Corporation’s maximum credit exposure at the balance sheet date. The Corporation does not have significant exposure to any individual customer as accounts receivable relate largely to credits/returns from operational expenditures. The credit risk on cash and short-term investments is limited because the counterparties are chartered banks with high credit-ratings assigned by national credit-rating agencies.

Interest Rate Risk

The interest bearing short-term investments have a limited exposure to interest rate risk due to their short-term maturity.

Fair Values

The fair values of cash, accounts receivable, and accounts payable and accrued liabilities approximate their carrying values due to their short-term maturity.

2012 - 2013 Annual Report 23

8 • Accountability • Teamwork • Respect • Integrity • Professionalism

IGR’s core values 24 Indigenous Gaming Regulators