INDIGENOUS GAMING REGULATORS INC.

ANNUAL REPORT INDIGENOUS GAMING REGULATORS INC. 2005 - 2006 400 - 203 Packham Avenue , SK Canada S7N 4K5 (p) 306.477.5700 (f) 306.477.5704 (e) [email protected] (w) www.igr.ca (t) 1.877.477.4114 “Stick Dice, a game of chance generally played by women, often began with wagers being placed. Up to 10 players would sit in a circle on blankets or hides.

Four large sticks were used as dice (plain on one side and painted on the other) in the game. Each player received Chekutnak four tally sticks marked 10s, and 10- tally sticks marked 1s. Vision, Mission and Values ...... 2 Stick Dice TABLE OF CONTENTS To determine who should go first, each player rolls a stick. Mandate ...... 3 The last player to have her stick land with the marked side up begins. Once the game has started, players roll the four Chairman of the Board Message ...... 4 stick dice and collect tally sticks representing points for different roll variations. The other players give the roller President and CEO Message ...... 5 tally sticks that equal the value of the roll. Once out of tallies, a player would have one more chance to roll the Board of Directors ...... 6 dice. The game continues until one player collects all of the tallies. Licensing Agreement ...... 8

Different variations of Stick Dice exist, including differing Capacity Building ...... 9 points for combinations of the dice. One description gathered by Culin, from Muskowpetung First Nation, Partnerships ...... 10 describes the game as played by either men or women, in any numbers, in groups of four.” BCRs - Support ...... 12

Courtesy of the Indian Cultural Centre Membership ...... 13

Organizational Chart ...... 14

IGR Departments & Organization...... 16

“These are Northern Woods ‘Stick Dice’ or This photograph is provided courtesy of IGR in the Community...... 16 Brad Harrison and the Beaver River "Chekutnak", a traditional native gambling game. The photo was taken inside a tipi where I was taught how to play. The pieces are Banner, , Saskatchewan. Financial Statements ...... 19 flicked backwards in your hand onto the surface, then the points are added up, each in turn. This surface being a buffalo hide blanket, Beaver River Banner (Weekly) Current IGR Board of Directors...... 28 PO Box 700 Pierceland, SK S0M 2K0 the score shown is six, out of a possible twelve per throw.” Brad Harrison - Beaver River Banner Call: 306-839-4496 IGR Staff Information ...... 29 Fax: 306-839-2306 [email protected]

01 IGR ANNUAL REPORT 2005 - 2006 MISSION, VISION AND VALUES

The Indigenous Gaming Regulators Inc., The Indigenous Gaming Regulators Inc. (IGR) is a non-profit corporation and an institution of the Federation as an institution of the Federation of of Saskatchewan Indian Nations (FSIN). Saskatchewan Indian Nations, shall: IGR’s mandate flows from the FSIN Chiefs-in-Assembly, via the 2002 Framework Agreement.

function as a lawful and credible licensing authority that MANDATE The mandate of IGR is to license and regulate on-reserve has the capacity and ability to license and regulate lottery charitable lottery schemes (defined as bingos, breakopens, schemes on-reserve, in an impartial and unbiased fashion, raffles and Saskatchewan Indian Gaming Authority casino pursuant to section 207 of the Criminal Code, including table games) for First Nations that have designated IGR as performing other related regulatory functions and tasks as their regulator. required from time to time; In order to achieve this, IGR is negotiating a Licensing Agreement with Saskatchewan Liquor and Gaming act at all times in the public interest by ensuring that the Authority (SLGA) on behalf of the First Nations. This licensing and regulation of lottery schemes and the agreement will result in IGR assuming authority over registration of gaming employees and gaming suppliers are licensing and regulation of all on-reserve charitable conducted in a fair, consistent and ethical manner; and gaming. This is the first step towards First Nations jurisdiction over gaming. implement sound business and administrative practices to

carry out the operations of the corporation in an efficient and This licensing agreement is specified under Part 10 of the cost effective manner, while upholding high standards of 2002 Framework Agreement signed by the Province of trust, honesty, integrity, credibility, competence and Saskatchewan and the FSIN through the accountability within the First Nations gaming industry. Chiefs-in-Assembly. This is detailed in the 2002 SIGL Regulatory Agreement, signed by SLGA and Saskatchewan Indian Gaming Licensing Inc. (now IGR). Both of these documents are available at www.igr.ca.

02 03 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 CHAIRMAN OF THE BOARD MESSAGE PRESIDENT AND CEO MESSAGE

Let me begin by expressing my delight at having been re-assigned the Over the past year, the IGR team, led by the Board of Directors, has been Indigenous Gaming Regulators file in November 2005. It is a pleasure to act building the capacity to fully undertake our mandate. In order to do this, we as Chairman of the IGR Board of Directors, and to participate in the have focused our efforts on three major areas of development: negotiating a development of this uniquely First Nations organization. Licensing Agreement; gathering input and building support in First Nations communities; and building a strong, professional and competent staff at IGR. Through the foresight, ingenuity and determination of Saskatchewan First Nations Leadership, IGR is poised to become the only First Nations gaming Much of the past year has been spent in negotiations for a Licensing regulator in Canada. This means that Saskatchewan First Nations will take Agreement that meets the needs of First Nations communities and follows full control over our gaming activities, which is a strong step towards the guidance provided by First Nations leadership and the IGR Board of re-asserting our right to self-determination, and our Treaty and Inherent Directors. We are pleased to report that the main components of the Right to self-government. Agreement have been established, and the Agreement will now be subject to an internal ratification process. For more information please see the article on Through the various agreements IGR has negotiated with the provincial the Licensing Agreement on page 8 in this report. government, we have affirmed our ability to operate and manage our affairs in the gaming industry. IGR is proud of the support we have received from First Nations leaders, partners and individuals across Saskatchewan. We have confirmed Vice Chief Lawrence Joseph Saskatchewan First Nations Chiefs, past and present, reached a designation from 92% of the First Nations in this province by Band Council Greg Ahenakew groundbreaking agreement when they opened the SIGA casinos. IGR, at the Resolution. direction of First Nations leaders, has persisted in establishing our authority over gaming in the Province of Saskatchewan. We have been working to build partnerships with our communities and the people involved in charitable gaming to ensure that our work addresses the Over the past year we have laid the foundation and negotiated the terms needs of First Nations people. These partnerships have been the key in and conditions that will facilitate IGR’s institution as a fully operational developing terms and conditions to bring to the negotiating table. regulatory body. This has brought us to the point where we are ready to begin to regulate charitable gaming in a manner that is appropriate to First In the last year we have continued our efforts to build a strong team at IGR, Nations values, traditions and methods. recruiting qualified staff in all departments and providing training to existing staff when necessary. Our focus in these three areas has allowed us to build a This year, IGR has become one of the many achievements that First Nations strong First Nations owned and operated regulatory body. people can point to when we articulate our right and our ability to do things our way. In short, IGR’s work over the past year is yet another victory On behalf of the IGR staff, I would like to thank those who have worked with for Saskatchewan First Nations people. us and provided advice to help IGR achieve its objectives.

On behalf of the IGR Board of Directors and staff, I wish to thank Saskatchewan First Nations leaders, Elders and individuals for their vision, patience and determination in accomplishing our mission.

04 05 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 BOARD OF DIRECTORS

Chairman of the Board Vice Chairman FSIN Vice Chief Lawrence Joseph Chief Garry Standing is a member of the . is from the Wahpeton Dakota Nation. He has been the Fourth Vice Chief of the He represents the Prince Albert FSIN since 1997. Grand Council.

Jeff Ahenakew Tom Bear Chief Chief Guy Lariviere is from the Ahtahkakoop is a councillor from the Reginald Bellerose is from the Canoe Lake First Nation. He Big River First Nation. He is from the First Nation. He represents the Battlefords represents the Agency Muskowekwan First represents the Meadow Tribal Council and the Chiefs Tribal Council. Nation. He represents Lake Tribal Council. Ahtahkakoop First the Touchwood Agency Nation. Tribal Council.

Chief Chief Felix Thomas Chief Gilbert Panipekeesick Senator is from the Kinistin Irvin Starblanket is from the Sakimay First George PeeAce Nation. He is from the Starblanket Nation. He is the Tribal Chief is from the Yellowquill represents the Saskatoon First Nation. He of the Yorkton Tribal Saulteaux First Nation. Tribal Council. represents the File Hills Council. He represents the FSIN Senate. Qu’Appelle Tribal Council.

06 07 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 Over the past fiscal year, IGR has been able to reach agreement In accordance with the provisions of the 2002 Framework Agreement, in order to exercise full jurisdiction in relation to all forms of gaming on reserves, the First Nations regarding all the terms and conditions of First Nations chari- LICENSING CAPACITY need to develop the capacity to do so effectively and efficiently. The SIGL Regulatory table gaming. Resolving the terms and conditions is a major Agreement stipulates that, prior to becoming a fully operational regulatory authority, breakthrough in negotiations, because it represents an impor- AGREEMENT BUILDING IGR must undergo an assessment of its capacity to license and regulate charitable tant step in achieving our goal of becoming a fully operational gaming pursuant to paragraph 207(1)(b) of the Criminal Code. The Capacity Assessment regulatory body. will be conducted by a mutually agreed upon independent third party.

The objective of this independent assessment is to confirm that IGR has the required The establishment of the terms and conditions moves IGR into documented business processes, forms, and staff to effectively execute the licensing the ratification process for an Agreement-in-Principle (AIP). The and regulatory activities. next step is for both the Federation of Saskatchewan Indian Nations and the province to take the agreement through their IGR looks forward, with confidence, to this capacity assessment. The Board of Directors, respective ratification processes. Senior Management and staff have undertaken to build capacity required to meet its mandate in the most effective and efficient manner. The preparations are designed to meet and, in many cases, exceed the standards employed by gaming regulators across For IGR, this means that the AIP is ready to be presented to the the country. IGR Board of Directors for approval. If approved, the AIP will move forward to the FSIN’s Indian Government Commission Completed preparations include: and, of course, the Chiefs-in-Assembly. development and expansion of financial, administrative and operational policies, Once this is complete, the AIP becomes a binding Agreement, procedures and forms for charitable gaming licensing; and IGR can begin its regulatory work in its full capacity. creation of a strong, competent team through a sound recruitment and retention strategy; We will continue to work on subsequent phases of the process that include Phase 2 – Registering Charitable Gaming Employ- research of best practices within the industry, including: ees and Phase 3 – Registering Gaming Suppliers who provide • amendments to the Criminal Code of Canada; gaming services and equipment. Further, the SIGL Regulatory • the history of gaming in Canada; • gaming policy and procedures from other Canadian jurisdictions; and Agreement allows us to perform any other gaming related • gaming regulation and operations; functions as agreed to by IGR and SLGA. establishing and maintaining a reference library of research materials regarding IGR representatives will continue to negotiate a licensing gaming; and agreement with the province, asserting First Nations’ jurisdic- tion over gaming regulation. investment in the professional development of our Board of Directors, management and staff through training in the areas of: • negotiations, conflict resolution, stress management; • table games; • casino auditing, investigations, audit, fraud; and • effective written and oral communications.

08 09 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 “The key to the success of our work depends on the exchange of information between IGR and the 75 PARTNERSHIPS First Nations in Saskatchewan.”

The key to the success of our work depends on the sharing and exchange of information with the 75 First Nations in Saskatchewan. IGR invested in a strong communications strategy by having staff attend over 78 community events in the last 12 months. The majority of these events were Chief and Council Meetings and Charitable Gaming Workshops.

Chief and Council Meetings focus primarily on updates on new develop- ments and discussions about jurisdiction and IGR’s role. We address any other questions and ongoing interests of First Nation leaders. The first round of meetings was initiated to gather the leaderships’ support and obtain signed BCRs designating IGR as the regulator. 8080 Charitable Gaming Workshops are designed to provide details on the process of issuing licences, eligibility and use of proceeds criteria. By IGR Community Visits in 2005-2006 informing our communities about the rules and regulations regarding 7070 charitable gaming now, we anticipate there will be fewer compliance IGR recognizes the importance of being accessible to the leadership and the problems when IGR begins regulating. citizens of our communities. 6060 IGR hosted a province-wide symposium in Saskatoon on May 25, 2005 to IGR can now be reached toll-free at 1-877-477-4114 if there are questions or discuss charitable gaming, specifically bingo. Approximately 50 partici- concerns about charitable gaming and regulation. This number can also be used pants representing various First Nations attended the event. IGR followed 5050 to schedule a meeting with IGR’s Community Liaison Officers. up on this symposium by contacting bingo operators with a questionnaire IGR has a new website address and design at www.igr.ca. designed to gather operational and administrative information on current charitable gaming activities. Through these consultations, communities 4040 IGR’s “Gaming Rules!” newsletter continues to be printed quarterly. We send this provided IGR with input to guide the discussions for the development of information to all 75 communities and all FSIN institutions. the First Nations Bingo Model, and the terms and conditions for conduct and management of bingos. Cumulative Our Community Liaison Officers also attend FSIN Assemblies, major First Nations 3030 sporting events, pow-wows and cultural gatherings. IGR increased visits to the communities during the months of January, February and March to update the communities on the Bingo Model and 2020 our progress in the negotiations.

We are proud of the progress we have made. We are committed to 1010 continuing our work with First Nations to ensure the transition to IGR Monthly regulated gaming is as easy as possible for First Nations charities. 00 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

10 11 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 Pheasant Rump Montreal Lake Sweet Grass Black Lake Black Lake Poundmaker Poundmaker BCRS Peter Ballantyne Peter Ballantyne MEMBERSHIP Muscowpetung Muscowpetung FIRST NATIONS SUPPORT Piapot Piapot Clearwater Clearwater English River English River Moosomin Moosomin Okanese Okanese Kahkewistahaw Kahkewistahaw Young Chippewayn Young Chippewayn First Nations that choose to appoint IGR to administer Over the past year, IGR has had the privilege of gathering support Pasqua Pasqua from the 75 First Nations in Saskatchewan. Gordon Gordon licensing and to regulate charitable gaming become Peepeekisis Peepeekisis Flying Dust Flying Dust Members of Indigenous Gaming Regulators. Their Chief (or We are pleased to report that IGR has been designated through Band Red Pheasant Red Pheasant his/her proxy) becomes eligible to vote at IGR’s Annual Big Bear Band Big Bear Band Council Resolutions (BCRs) by 67 First Nations. Ahtahkakoop Ahtahkakoop General Membership Meeting (AGMM). Whitecap Whitecap Kawacatoose Kawacatoose Two First Nations have signed documents stating they do not Muskowekwan Muskowekwan The purpose of the AGMM is to ensure the Membership Big River Big River participate in any sort of charitable gaming on their land. Little Black Bear Little Black Bear Little Black Bear has significant decision-making authority and control of its One Arrow One Arrow One Arrow gaming regulation institution, IGR. Members have the Thunderchild Thunderchild Thunderchild The remaining six First Nations have not yet designated any gaming Muskoday Muskoday Muskoday opportunity to ratify Board appointments, approve the Key First Key First Key First Auditor’s report, and vote on other issues relevant to the regulator. We believe that once an agreement is signed we will have Cote Cote Cote nearly 100% of the First Nations designating IGR. Witcheken Lake Witcheken Lake Witcheken Lake effective implementation of IGR’s mandate and objectives. Sturgeon Lake Sturgeon Lake Sturgeon Lake Keeseekoose Keeseekoose Keeseekoose This forum also provides IGR Members with a venue to Sakimay Sakimay Sakimay address their concerns, offer input, and ask questions of Cowessess Cowessess Cowessess Little Pine Little Pine Little Pine the IGR Board of Directors and Senior Management. Shoal Lake Shoal Lake Shoal Lake James Smith James Smith James Smith Makwa Sahgaiehcan Makwa Sahgaiehcan Makwa Sahgaiehcan The AGMM is held in conjunction with the FSIN’s All Chiefs’ 6 Not Signed Chakastapasin Chakastapasin Chakastapasin Assembly and requires 20 voting Members to be present 2 No Gaming Peter Chapman Peter Chapman Peter Chapman Canoe Lake Canoe Lake Canoe Lake in order to obtain quorum. Day Star Day Star Day Star Red Earth Red Earth Red Earth Yellow Quill Yellow Quill Yellow Quill IGR’s AGMM was held on March 14, 2006 in Saskatoon. Makwa Sahgaiehcan Makwa Sahgaiehcan Makwa Sahgaiehcan Island Lake Island Lake Island Lake Discussion included approval of the 2004-2005 audited 67 Signed Birch Narrows Birch Narrows Birch Narrows Nekaneet Nekaneet Nekaneet financial statements, confirmation of the Board of Onion Lake Onion Lake Onion Lake Directors and adoption of corporate bylaws. Waterhen Waterhen Waterhen Pelican Lake Pelican Lake Pelican Lake Pelican Lake Wahpeton Wahpeton Wahpeton Wahpeton IGR has obtained BCRs from 67 of Saskatchewan’s 73 First Cumberland House Cumberland House Cumberland House Cumberland House Cumberland House Nations who conduct gaming on their land. This represents Mistawasis Mistawasis Mistawasis Mistawasis Mistawasis Saulteaux Saulteaux Saulteaux Saulteaux Saulteaux 92% support for First Nations owned and controlled regulation Mosquito Grizzly Mosquito Grizzly Mosquito Grizzly Mosquito Grizzly Mosquito Grizzly of our gaming activities. Standing Buffalo Standing Buffalo Standing Buffalo Standing Buffalo Standing Buffalo Muskeg Lake Muskeg Lake Muskeg Lake Muskeg Lake Muskeg Lake Ocean Man Ocean Man Ocean Man Ocean Man Ocean Man Star Blanket Star Blanket Star Blanket Star Blanket Star Blanket Lac La Ronge Lac La Ronge Lac La Ronge Lac La Ronge Lac La Ronge Beardy’s Okemasis Beardy’s Okemasis Beardy’s Okemasis Beardy’s Okemasis Beardy’s Okemasis Buffalo River Buffalo River Buffalo River Buffalo River Buffalo River Kinistin Kinistin Kinistin Kinistin Kinistin Fishing Lake Fishing Lake Fishing Lake Fishing Lake Fishing Lake Fishing Lake White Bear White Bear White Bear White Bear White Bear White Bear 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 This chart shows the yearly accumulation of BCRs designating IGR since 2000. The darker boxes represent the new designations in each year.

12 13 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 ORGANIZATIONAL CHART

Community Liaison Officer

Community Liaison Officer Community Liaison Officer

Manager Manager Manager Regulatory Communications Finance Audit and Inspection Services

Network Administrator

Manager Human Resources Vice President Licensing Vice President Management Manager and Audit Services Licensing and Communications Sr. Licensing Officer Office Manager Administrative Assistant Licensing Administrative Assistant Officer

Executive Assistant

President and Chief Executive Officer

Board of Directors

First Nations

14 15 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 IGR DEPARTMENTS & ORGANIZATION

IGR's Departments and Organization Management and Audit Services This division is the responsibility of the Vice President of Management and Audit Services. It is comprised of five departments. The following is a summary of IGR's departments and their roles within the organization. These include: Finance, Audit and Inspection Services, Human Resources, Computer Services and Office Management.

President and CEO's Office The Finance Department is responsible for accounts payable, accounts receivable, payroll services, budgeting, financial The President and CEO provides organizational leadership and strategic direction to the staff and management of statement preparation and analysis. IGR. Under the guidance of the Board of Directors, the President and CEO determines best organizational practices to carry out IGR’s mandate. The President and CEO is ultimately responsible for all business and opera- The Audit and Inspections Services Department is responsible for all aspects of auditing and compliance by developing and tional decisions for the organization, and he and the two Vice Presidents constitute Senior Management within implementing audit and investigative procedures and techniques to ensure uniformity in the regulation of all gaming activi- IGR. ties.

Licensing and Communications The Human Resources Department is responsible for human resources management, policy development, training and This division is the responsibility of the Vice President of Licensing and Communications. organizational development.

To date, the on-going work of the Licensing department is the development of policies and procedures to The Computer Services Department is responsible for the operation of the computer infrastructure, for planning acquisition, support a fully functional regulatory body. It is vital to the success of the organization that IGR's licensing disposal and maintenance of computer systems and for providing operational and administrative support. processes be well established. The Office Management Department is responsible for purchasing, building maintenance, janitorial services, vehicle booking IGR's Communications department has been of particular importance to the organization by increasing our and maintenance, reception services and central registry. presence in the communities and providing information regarding charitable gaming regulation at every oppor- tunity.

IGR IN THE COMMUNITY

2005 FSIN Pow-wow - Koria and IGR’s Cathy Laliberte presents door Mackenzie at the IGR Booth prize winner Roland Desjarlais with his gift at the 2005 FSIN Winter Legislative Assembly.

IGR and members of Buffalo River First Nation exchange Vice Chief Lawrence Joseph and Fond du Lac Chief gifts. Victor Fern shake hands during IGR’s trip to the community in March 2006. Councillor Florence Crookedneck is in the background. Vice Chief Lawrence Joseph addressed the students and IGR President and CEO Greg Ahenakew addresses IGR’s teachers of St. Maria Goretti school in Saskatoon who took 2005 Charitable Gaming Symposium. 16 part in IGR’s Christmas card contest. 17 IGR ANNUAL REPORT 2005 - 2006 INDIGENOUS GAMING REGULATORS INC.

FINANCIAL STATEMENTS

MARCH 31, 2006

19 FINANCIALS FINANCIALS

INDIGENOUS GAMING REGULATORS INC. STATEMENT OF OPERATIONS AND MEMBERS' EQUITY year ended March 31, 2006

2006 2005

REVENUE Operating funding (Note 5) $ 1,847,148 $ 1,762,781 Amortization of deferred contributions related to equipment and leasehold improvements (Note 6) 104,213 107,711 Other income 25,793 10,032 Loss on disposition of equipment and leasehold improvements (1,527) (988) 1,975,627 1,879,536

EXPENSES Salaries and benefits 1,112,654 1,024,433 Office and equipment costs 152,367 162,396 Board ofdirectors 128,463 107,114 Amortization 104,213 107,711 Staff travel and sustenance 69,827 75,081 Membership Services Agreement (Note 4) 55,000 55,000 Consultants 53,759 88,122 Advertising and promotion 49,878 46,012 Professionaldevelopment 47,027 32,130 Legalfees 38,740 46,594 Telephone 37,281 32,774 Stationery and supplies 37,141 33,710 Meeting rooms 20,089 14,090 Automotive expenses 16,594 10,365 Miscellaneous 14,746 9,699 Books, subscriptions and membership dues 11,569 7,226 Photocopying and printing 9,556 12,478 Audit fees 6,360 5,365 Budget review committee 5,750 4,500 Postage and courier 4,022 4,325 Bank charges andinterest 591 411 1,975,627 1,879,536 EXCESS OF REVENUE OVER EXPENSES AND MEMBERS' EQUITY $ - $-

20 21 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 FINANCIALS FINANCIALS

INDIGENOUS GAMING REGULATORS INC. STATEMENT OF CASH FLOWS year ended March 31, 2006

2006 2005

CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES Excess of revenues over expenses $-$ - Adjustment for: Loss on disposition of equipment and leasehold improvements 1,527 988 Amortization of deferred contributions related to equipment and leasehold improvements (104,213) (107,711) Amortization 104,213 107,711 Other income (2,564) (1,369) (1,037) (381) Changes in non-cash working capital Decrease (increase) in accounts receivable 8,974 (7,601) Increase in prepaid expenses (16,473) (1,948) Increase (decrease) in accounts payable and accrued liabilities 51,814 (26,386) Increase (decrease) in deferred revenue (71,497) 242,918 (28,219) 206,602

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Disposal (purchase) of short-term investments (300,000) 300,000 Proceeds from disposition of equipment and leasehold improvements 1,037 381 Purchase of equipment and leasehold improvements (44,970) (104,855) Deferred contributions related to equipment and leasehold improvements 44,970 104,855 (298,963) 300,381 NET INCREASE (DECREASE) IN CASH (327,182) 506,983 CASH POSITION, BEGINNING OF YEAR 572,994 66,011 CASH POSITION, END OF THE YEAR $ 245,812 $ 572,994

22 23 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 FINANCIALS FINANCIALS

INDIGENOUS GAMING REGULATORS INC. INDIGENOUS GAMING REGULATORS INC. NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS year ended March 31, 2006 year ended March 31, 2006

1. NATURE OF ORGANIZATION 2. SIGNIFICANT ACCOUNTING POLICIES - continued

Indigenous Gaming Regulators Inc. (the “Corporation”), formerly Saskatchewan Indian Equipment and Leasehold Improvements Gaming Licensing Inc., was incorporated under the The Non-Profit Corporations Act of Saskatchewan on July 28, 1995. Equipment and leasehold improvements are recorded at cost and amortized using the straight-line method over its useful life at the following rates: The Corporation was established as part of the 1995 Gaming Agreement between the Federation of Saskatchewan Indians, Inc. (the “FSIN”) and the Province of Furniture and fixtures 5 years Saskatchewan. On June 11, 2002, the Corporation signed the SIGL Regulatory Leasehold improvements 5 years Agreement and FSIN signed the 2002 Framework Agreement with the Province of Vehicles 4 years Saskatchewan. These agreements give the Corporation the capacity to license and Computer equipment 3 years regulate lottery schemes on reserve and Saskatchewan Indian Gaming Authority Inc.’s table games. A full year of amortization is recorded on any additions. Funding used for equipment and leasehold improvements is deferred and amortized on the same basis as the asset to which it relates. 2. SIGNIFICANT ACCOUNTING POLICIES Short-Term Investments These financial statements have been prepared in accordance with Canadian generally accepted accounting principles and reflect the following significant accounting policies: Short-term investments are comprised of GICs and are recorded at the lower of cost or market value. At March 31, 2006 the cost approximates the market value. Use of Estimates

The preparation of the financial statements in conformity with Canadian generally 3. EQUIPMENT AND LEASEHOLD IMPROVEMENTS accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the Accumulated Net Book Value financial statements and the reported amounts of revenues and expenses during the Cost Amortization 2006 2005 year. Actual results could differ from those estimates. Furniture and fixtures $ 232,114 $ 167,786 $ 64,328 $ 77,861 Revenue Recognition Leasehold improvements 120,028 87,019 33,009 49,052 Vehicles 73,276 36,638 36,638 54,957 The Corporation follows the deferral method of accounting for its funding. Under the deferral method, funding is recognized in the year in which related expenses are Computer equipment 108,828 96,334 12,494 26,405 incurred based on plans approved by the Budget Review Committee of the Corporation. $ 534,246 $ 387,777 $ 146,469 $ 208,275 The Budget Review Committee consists of two representatives from the Corporation, two from Saskatchewan Liquor and Gaming Authority and one independent member.

24 25 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 FINANCIALS FINANCIALS

INDIGENOUS GAMING REGULATORS INC. INDIGENOUS GAMING REGULATORS INC. NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS year ended March 31, 2006 year ended March 31, 2006

4. RELATED PARTY TRANSACTIONS 7. COMMITMENTS

Related parties to the Corporation include FSIN and its economic and community The Corporation has obligations under operating leases for office space and equipment. development and education entities and Saskatchewan Tribal Councils and First Future minimum lease payments are as follows: Nations. Included in accounts payable is $570 (2005 - $13,713) owing to the FSIN. 2007 $ 131,797 On October 18, 2002 the Corporation and the FSIN signed the Membership Services 2008 112,449 Agreement whereby the Corporation pays a fee of $55,000 per annum for corporate, 2009 2,809 political, and technical management and support services provided by FSIN.

8. FINANCIAL INSTRUMENTS 5. OPERATING FUNDING 2006 2005 The carrying values of cash, accounts receivable and accounts payable and accrued liabilities approximate their fair values due to the relatively short period to maturity of Funding received: these instruments.

Saskatchewan Indian Gaming Authority, Inc. $ 1,820,620 $ 2,084,685 Add: Revenue deferred from prior year 548,593 305,675 Less: Revenue deferred to future year (477,096) (548,593) Funding related to equipment and leasehold improvements (44,969) (78,986) $ 1,847,148 $ 1,762,781

6. DEFERRED CONTRIBUTIONS RELATED TO EQUIPMENT AND LEASEHOLD IMPROVEMENTS

2006 2005

Deferred contributions, beginning of year $ 208,275 $ 238,369 Contributions from operating funding used for equipment and leasehold improvement additions 44,969 104,855 Net book value of disposed equipment and leasehold improvements (2,562) (27,238) Amortization for the year (104,213) (107,711) 26 $ 146,469 $ 208,275 27 IGR ANNUAL REPORT 2005 - 2006 IGR ANNUAL REPORT 2005 - 2006 CURRENT IGR BOARD OF DIRECTORS IGR STAFF INFORMATION

I N D I G E N O U S G A M I N G R E G U L A T O R S I N C. (IGR) 400 - 203 Packham Avenue Saskatoon, Saskatchewan S7N 4K5 Phone: (306) 477-5700 Fax: (306) 477-5704 Toll Free 1-877-477-4114

The IGR Board of Directors is comprised of representatives appointed from each of the Tribal POSITION TITLE CONTACT PHONE NUMBER President and Chief Executive Officer Greg Ahenakew (306) 477-5703 Councils associated with the FSIN, one representative for the Independent First Nations and one representative from the FSIN Senate. The Board Chairman is the FSIN Executive member holding Vice President the IGR portfolio. Licensing and Communications Diego Monteiro (306) 477-5702 Vice President Management and Audit Services Linda Scott (306) 477-5701

Executive Assistant to the CEO Shirley Courchene (306) 477-5703

Manager Human Resources Sally Moccasin (306) 477-5706 Manager Finance Wendi LeBrun (306) 477-5708 Manager Communications Corie Amundson (306) 477-5824 JUNE 2006 Manager Regulatory Audit and Inspection Services Doug Atkins (306)477-5709 Manager Licensing Catherine Laliberte (306) 477-5707 Office Manager Leanne Anderson (306) 477-5719

Network Administrator Jeff Lowe (306) 477-5715

Sr Licensing Officer Bonnie Jimmy (306) 477-5717 Licensing Officer Kelvin Billingsley (306) 477-5713 Community Liaison Officer Rene Wuttunee (306) 477-5826 Administrative Assistant Ellen Desjarlais (306) 477-5711 Administrative Assistant Selma Greyeyes (306) 477-5714

The IGR Board of Directors from top left: Chief Reginald Bellerose (TATC), Council- lor Tom Bear (ACTC), Chief Garry Standing (Vice Chairperson) (PAGC), Chief Sarah Gopher (Independent Nations), Chief Gilbert Panipekeesick (YTC), Vice Chief Lawrence Joseph (Chairperson) (FSIN), Chief Guy Lariviere (MLTC). From bottom left: Jeff Ahenakew (BTC), Chief Felix Thomas (STC), Senator George PeeAce (FSIN Senate), Chief Irvin Starblanket (FHQTC).