Proud Future

ᏌᏊ ᎠᏥᎸ ᏂᏓᏳᏓᎴᏅ From One Fire to a ᎠᏢᏉᏙᏗ ᏅᏩᎦᏗᏗᏒᎢ Proud Future

Popular Annual Financial Report for the fiscal year ended September 30, 2012 Dear Cherokee Nation Citizen: We are pleased to present the Cherokee Nation’s very first Popular Annual Financial Report.This report was prepared with you in mind and is part of the Cherokee Nation’s continuing effort to keep you better informed. Many of you have asked for financial information and highlights of the Cherokee Nation in a format that is easily readable and understandable. In this report, you will find brief descriptive information about the Cherokee Nation and its service departments and programs.

The information in this report summarizes the Nation’s financial position based on the detailedfinancial statements found within our Fiscal Year 2012 Comprehensive Annual Financial Report (CAFR). The financial statements were prepared in conformance with Generally Accepted Accounting Principles (GAAP) and audited by an independent accounting firm. Cherokee Nation received an unqualified, or clean, audit opinion. For additional information and detail, please visitwww.cherokee.org to view the current year’s CAFR.

The balances presented in this report are for the general government and are presented in an unaudited, non-GAAP format. Financial information on the Nation’s subsidiary component units from the CAFR has been excluded, but contact and general information can be found on page 15.

We would like to thank the Nation’s professional staff in Financial Resources and Communications for their time and talent in preparing this report.

Thank you for taking the time to read this report. ABOUT THIS THIS ABOUT REPORT

Bill John Baker S. Joe Crittenden Lacey A. Horn Principal Chief Deputy Principal Chief Treasurer

2 TABLE OF CONTENTS About This Report 2 About Cherokee Nation 4 Money Sources and Uses 5 Financial Highlights 6 Organizational Highlights 8 Health Services 10 Education Services 11 Human Services 12 Community Services 13 Career / Commerce Services 14 Components 15 Directory 16

Cherokee Warrior Memorial located at the W.W. Keeler tribal complex in Tahlequah, Oklahoma. 3 Osiyo! The Cherokee Nation is a sovereign nation. Upon settling in Indian Territory (present day Oklahoma) after the Indian Removal Act, the Cherokee people established a new government in what is now the city of Tahlequah, Oklahoma. A constitution was adopted in September of 1839, 68 years prior to Oklahoma’s statehood.

Today, the Cherokee Nation is one of the largest Indian tribes in the United States with more than 317,000 citizens world-wide. More than 120,000 Cherokee Nation citizens reside within the 9,234-square mile, 14-county jurisdiction that covers most of northeastern Oklahoma.

Services we provide include health and human services, education, employment and housing services, economic and infrastructure development and environmental protection.

With more than 8,750 employees, the Cherokee Nation and its subsidiaries together are one of the largest employers in northeastern Oklahoma. The tribe has a widespread positive

impact on the Oklahoma economy annually. ABOUT CHEROKEE NATION CHEROKEE ABOUT

4 MONEY SOURCES AND USES 5 2.53% : 0.25% 0.08% : 0.36% : ings : ibutions ibutions

6.74% m Debt er estment Earn ants & Contr v ment : rn vices : 8.84% ants & Contr ve icted Gr icted In ibal Go Interest on Long-T Tr Human Ser Capital Gr Unrestr Unrestr 61.45% : : 12.31% 18.3% : . ibutions vices : 15.67% vices and Misc vices :12.38% ants & Contr vices : 56.01% 5.08% unity Ser ating Gr ges for Ser es : x Education Ser Dividends from Component Units Dividends from Component Ta Comm Health Ser Char Oper Where the Money Comes From Money Comes the Where Where the Money Goes Where the Money 6 FINANCIAL HIGHLIGHTS TOTALASSETS NET netassets Unrestricted netassets Restricted Invested incapitalassets, netofrelateddebt Net Assets TOTAL LIABILITIES liabilities Othernoncurrent Compensatedabsences Capitalleases Notespayable debt andlong-term revenue grant Deferred revenue Unearned liabilities Othercurrent Accounts payable liabilities andaccrued Liabilities TOTAL ASSETS Capitalassets outflow Deferred Otherassets notesreceivable Long-term cash, Restricted cashequivalentsandinvestments assets Othercurrent Notesreceivable Inventories Accounts receivable, net Investments Cashandcashequivalents Assets

$ 4,332 $ $ 52,859 $138,194 260,501 $ $ 47,837 $ $ 269,332 $ 1,017 $ 66,051 $ 100,644 $ 130 $ 7,201 $ $ 8,931 $ $ 147,142 $ 265,232 $ $ 102,637 $ 529,833 $ $ 1,557 $ 4,053 $ 9,024 $ 2,593 $ 4,049 $ $ 15,285 $ 38,126 $ 24,341 $ 18,431 $ As ofSeptember 30, 2012 TOTAL TOTAL (dollars inthousands) may beusedtomeetthegovernment’s ongoingobligations. Of thisamount, fiscal year 2012 by The Nation’s assetsexceededitsliabilitiesattheendof Net Assets (in millions) 200 225 250 275 300 $66 million 2012 2011 2010 Year $269 million financial statements in the CAFR atwww.cherokee.orgfinancial statements intheCAFR * For additional information, please seenotestobasic

are unrestricted netassets areunrestricted $269,332 $244,427 $222,386 Net Assets (netassets). that

The net assets increased by $25 million, which is largely Revenues TOTAL General Revenues: attributable to increased dividends received in the General Motor fuel tax $ 7,435 Fund from Component Units during fiscal year 2012. Motor vehicle tax $ 8,960 FINANCIAL HIGHLIGHTS Tobacco tax $ 3,943 Sales tax $ 3,111 Unrestricted grants and contributions $ 11,676 Unrestricted investment earnings $ 1,142 500 Dividends from component units $ 56,806 500 Miscellaneous revenue $ 6,327 TOTAL GENERAL REVENUES $ 99,400 400 Program Revenues: 400 Charges for services $ 78,989 (in millions) (in millions) Operating grants $ 283,446 300 Capital grants $ 366 300 TOTAL PROGRAM REVENUES $ 362,801 TOTAL REVENUES $ 462,201 200 200 Expenses

Revenues, Expenses and Revenues, Governmental Activities: Revenues, Expenses and Revenues, 100 Tribal government $ 29,428 100

Change in Net Assets Change in Net Health Services $ 244,547 Change in Net Assets Change in Net Education Services $ 54,061 Human Services $ 38,575 Community Services $ 68,391 Interest on long-term debt $ 1,569 TOTAL GOVERNMENTAL ACTIVITIES $ 436,571 Business-type Activities: Change in TOTAL BUSINESS-TYPE ACTIVITIES $ 725 Year Revenues - Expenses = Net Assets TOTAL EXPENSES $ 437,296

2010 $ 421,490 $ 405,811 $ 15,679 CHANGE IN NET ASSETS $ 24,905 2011 $ 433,807 $ 411,766 $ 22,041 NET ASSETS, BEGINNING $ 244,427 201 2 $ 462,201 $ 437,296 $ 24,905 NET ASSETS, ENDING $ 269,332

* For additional information, please see notes to basic For the year ended September 30, 2012 financial statements in the CAFR at www.cherokee.org (dollars in thousands) 7 1,000,000

1,000,000 320,000 3.5

315,000 3

800,000 (in millions) 310,000 750,000 2.5

305,000 2 Health Facilities (number of patient visits) (number Public Schools

Cherokee Nation Citizens Cherokee 300,000 500,000 1.5 Motor Vehicle Tag Dollars to Tag Vehicle Motor 600,000 150,000 2,500 150 *

2,000 125,000 100 1,500 100,000 1,000 50 75,000 (families served)

500 (miles constructed) (individuals assisted) Rental Assistance Food Distribution Food 400,000 and Bridges Roads 50,000 0 0

* American Recovery and

Reinvestment Act funds used ORGANIZATIONAL HIGHLIGHTS ORGANIZATIONAL 200,000 8

0 Miss Cherokee Christy Kingfisher

Cherokee Nation Elected Officials

Cherokee Nation operates one hospital and nine health centers, including the new Vinita Health Center, which opened in fall 2012.

Cherokee Nation Tax Commission

9 10 HEALTH SERVICES as infantsandchildrenunderfive ofage. years women, isdirectedtoward pregnantornursing The program aswell Women, InfantsandChildren (WIC) toschoolsandcommunities topromotehealthy lifestyles.Outreach services Healthy Nation Cancer Education, ofthetribe’s Comprehensive assistanceandscreeningsarepart Cancer Programs by theCherokee operated Nation. ambulanceparamedic-level service (CNEMS)isastate-licensed MedicalServices Cherokee NationEmergency Emergency MedicalServices A chemicaldependencyresidentialcentertoaidIndianadolescents. Jack Brown Center promotingmentalhealth.programs aidsinmentalhealth,This service substanceabuse andcommunity-based Behavioral Health in 2012. andonehospitaltogetherassisted961,936patients Nine healthcenters Medical HealthCentersandHospital include: Among numerous healthprograms, someservices healthcaresystemintheU.S. tribal thelargest Cherokee Nationoperates Control Plan.

the Indian Health Service through theGovernmentthe IndianHealth Service Performance andResults Act. achieve accreditation by DetNorske Veritas andhasreceived 18awards from Cherokee (CNHS)wasthefirsttribalhealthsystem to NationHealthServices

DIABETES EDUCATION PARTICIPANTS CALLS RESPONDEDBYCNEMS CALLS WIC PARTICIPANTS SERVED O 961,936 127,510 NS PATIENTCNHS VISITS 89,183 4,422

Cherokee Nation Education Services works to cultivate the development of skilled and knowledgeable Cherokees through administration of programs 324 that focus resources on serving people of all ages. Programs include: Head Start HEAD START STUDENTS EDUCATION SERVICES Preparing pre-K children for school.

Immersion School Promotes revitalization and use of the Cherokee language through educating 2,447 children in a cultural environment. SCHOLARSHIPS AWARDED Sequoyah Schools Middle school and high school education for Native American students in grades 7-12. College Resources Center Scholarships to qualified Native American students attending an accredited college. 100 Johnson O’Malley (JOM) IMMERSION ELEMENTARY STUDENTS Co-Partner Program designed to provide supplemental and/or operational support to public schools within Cherokee Nation boundaries. Arts Outreach Arts programs for schools and community groups. 284 Directed Studies Program SEQUOYAH STUDENTS Provides financial aid to higher education students aimed at strengthening the Cherokee Nation government and economy. Language Technology Technology that promotes and aids use of the Cherokee syllabary to communicate. Learn & Serve Sub-grants that provide opportunities for K-12 students.

In the past 10 years, Cherokee Nation has distributed $28 million from car tag revenues to local school districts in unrestricted support. 11 12 HUMAN SERVICES include: programs assistance.heating andenergy ExamplesofHumanServices fromchildcareanddevelopment tolow-income range These services citizens andtootherNative jurisdiction. throughoutitstribal Americans toits programs manyThe CherokeeHumanServices Nationoffers foster care, shelter andchildprotective services. crisis oruncertainty. includeadoption,and consistencyintimesofcrisis Services systemfor childrenandfamilieswhoneedstability support A fully integrated Children, Youth &Family Services licensing andeducationalresources. Provides qualitychilddevelopment andchildcareservices. Includestraining, Child Care &Development Center cases.approach tochildsupport theirchildrenby usingaholistic, cultural Ensures thatallparentssupport Services Child Support assistancetoqualified andburial Native energy Americans. alongwithemergency, thatincludeFoodDistribution ofservices An array Family Assistance

FAMILIES SERVED THROUGH FOOD DISTRIBUTION CHILDREN AIDED BYCHILDSUPPORT SERVICES CHILDREN SERVED BY CHILD CARE SUBSIDYCHILDREN SERVED BYCHILDCARE ELDERS-IN-NEED PROGRAM PARTICIPANTS 47,582 8,700 1,265 3,230 18,643 TRANSIT SYSTEM PASSENGERS Community Services improves the quality of life for Cherokee families by assisting with housing, roads, water, sanitation and environmental health. Community

Services programs include: COMMUNITY SERVICES Transit Bus Services Provides tribal employees and the general public with low-cost transportation 542 also known as “park-n-ride” transit routes. CASES ASSISTED FOR COMPLIANCE BY ENVIRONMENTAL PROTECTION Roads Constructs and repairs roads and bridges in the 14-county Cherokee Nation jurisdiction. Engineering and Sanitation Assists with sanitation facilities for homes and communities. 379 PRIVATELY OWNED HOMES REHABILITATED Environmental Health Helps to ensure that tribal facilities are operated in a safe and sanitary manner, and provides tribal members with services and information to lead environmentally healthy lifestyles. Community Organization Training and Technical Assistance 72.8 Facilitates opportunities for partnerships between Cherokee Nation MILES OF ROADS AND BRIDGES BUILT and local communities. Community Youth Development Assists youth in excelling through group and community action. Housing Rehabilitation Making homes safe for our citizens. Priority is given to the elderly, disabled and Cherokee Nation families.

13 14 CAREER/COMMERCE SERVICES needs aremet. Works withbusinesses andemployerstoensuretheirworkforce Programs for BusinessesandEmployers GED testingisalsoprovided. Assesses skillsandinterests, leadingtogoodcareerchoices. Assessments andCertifications for youth, bothsummerspecific and year-round. Educational, vocational, andemployment programs leadership Youth Programs retaining unsubsidized employment thatleadstoself-sufficiency. thatassistindividuals inattainingand Provides employment services Employment Programs needs.Assists individualswiththeireducationalandvocational training Vocational andEducational Programs include, services. Programs amongothers: rehabilitation andsupportive encompassingeducation,sufficiency throughprograms training, habitsandskillsthatpromoteemployabilitymaintain work andself- individualstoachieve develops and Career andencourages Services and preserving theCherokee culture andheritage. and preserving whilepromoting opportunities creation andexpansionoftourism Build sustainable Cherokee communities andcitizens throughthe Community Tourism to createviable art. businesses throughcultural support Develops talentsalongwithbusiness andmarketing DevelopmentArtist for Cherokee citizens. development services through business financing, and government contracting smallbusiness developmentEncourages andentrepreneurship Small Business Assistance Center Self-Sufficiency Programs andbusiness objectives.their personal examplesinclude: Program financial assistanceis achieve available tohelpentrepreneurs ofCherokee citizenssecurity andcommunities. Educationand isdedicatedtohelpingbuildCommerce theeconomic Services and financialcoaching. foreclosure prevention services, homebuyers’ educationclasses Assistance Program,implementation ofaMortgage iSave, through the increatingfinancialsecurity Assists participants

Cherokee Nation Businesses Cherokee Nation Home Health Services 777 W. Cherokee St., Catoosa, OK 74015 1630 N. Cedar, Tahlequah, OK 74464 918-266-6700 www.cherokeenationbusinesses.com 888-281-6910 www.cnhhs.org Cherokee Nation Businesses is a parent company of a diversified Cherokee Nation Home Health Services is a tribally incorporated not- portfolio of businesses owned by the Cherokee Nation. Industries for-profit home health care agency that is Medicare and Medicaid included are environmental consulting, gaming, health care, certified to provide state-licensed home health care. Services provided hospitality, manufacturing & distribution, real estate and technology. are home health, outreach and hospice. COMPONENTS

Housing Authority of the Cherokee Nation Cherokee Nation Waste Management 1500 Hensley Dr.,Tahlequah, OK 74464 925 W. Hickory, Stilwell, OK 74960 918-456-5482 www.housing.cherokee.org 918-696-8107 The Housing Authority of the Cherokee Nation provides Cherokee Cherokee Nation Waste Management includes a landfill, green citizens with various means of housing assistance. Services include technologies and recycling. home construction, low-income rental, rental assistance and home insurance. Cherokee National Historical Society P.O. Box 515, Tahlequah, OK 74465 Cherokee Nation Comprehensive Care Agency 918-456-6007 www.cherokeeheritage.org 1387 W. 4th St., Tahlequah OK 74464 The Cherokee National Historical Society dba Cherokee Heritage 918-431-5554 www.eldercare.cherokee.org Center is a 501(c)3 historical society and museum that seeks to The Cherokee Nation Comprehensive Care Agency is a community preserve the historical culture of the Cherokee people. PACE program that enhances the quality of life and autonomy for frail older adults, while enabling them to live in their home and Cherokee Nation Foundation in the community for as long as possible. 115 E. Delaware, Tahlequah, OK 74464 918-207-0950 www.cherokeenationfoundation.org The Cherokee Nation Foundation is a 501(c)3 charitable organization that provides higher education assistance to Cherokee students and strives to revitalize the Cherokee language.

15 Cherokee Nation Directory 918-453-5000 • 800-256-0671 • Fax 918-458-6219

Administration Community Services Marshal Service 918- 453-5618 918-207-3879 918-207-3800 Career Services Education Services Tax Commission (Car Tags) 918-453-5555 918-207-3865 918-453-5100 Cherokee FIRST Information Center Financial Resources Tribal Council 918-207-3936 918-453-5402 918-207-3900 or 800-995-9465 Cherokee Nation Businesses Health Services Tribal Registration (Enrollment) 918-266-6700 918-453-5657 918-458-6980 Cherokee Nation Industries Housing Authority of the Cherokee Nation Veterans Office 800-259-6505 918-456-5482 or 800-837-2869 918-453-5695 Commerce/Small Business Assistance Human Services 918-453-5536 918-453-5422 Communications/PR/Web Human Resources 918-453-5541 918-453-5292

P.O. Box 948 Tahlequah, OK 74465-0948 918-453-5000 www.cherokee.org

Wado! 16 (Thank You)