The Rundown  
                                 April 7th Regular Tribal Council Meeting

    Call To Order: The regularly scheduled Bad River Tribal Council Meeting scheduled April 7, 2010,
    was slated for three items on the Agenda. The first item was stricken from the itinerary due to
    employment obligations and rescheduled for the Special Tribal Council Meeting (April 8, 2010). All
    seven Council Members were present.

    Moment Of Silence: Chairman Wiggins opened a moment of silence by addressing those in
    attendance and called for some type of positive conclusion concerning tonight’s Agenda.


    Approval Of Minutes: Minutes for March 3, March 25 Council Meetings were reviewed and
    approved. Minutes for March 29 meeting were incomplete and unavailable at this time.


    Financial Reports: December and January’s Financial Reports were tabled once again. Tribal
    Membership raised question as to why this is the case. Treasurer stated they had “forgotten about
    them.” Also in regard to February’s Financial Report; January’s payroll is reflected in and included.  
    Financial Report for the month of February were read and approved as follows:


    February’s General Financial Report:

    Aging:                                  +$0                   -$6,254.01
    Amnicon Bay:                      +$85.90            -$0
    Cell Tower:                         +$1,743.15        -$57.63
    Cigarette Tax:                     +$28,269.86      -$28,269.86
    Cigarette Revenue:             +$0                    -$13,750
    Community Donation:         +$0                     -$5,759.85
    Dog Warden:                       +$0                    -$8,468.17
    Education:                           +$0                    -$1,362.93
    Enrollment:                          +$0                    -$10,723.80
    Tribal Court Fees:               +$385                -$30
    Fire Dept:                            +$20,223           -$4,652.54                      
    Forestry Crop:                     +$6.59               -$0
    Forestry Crop/Ten Percent: +$130.93           -$991.28
    Food Distribution:                 +$0                    -$4,385.68
    Gas Pipeline:                        +$59.28             -$0
    General:                               +$18,477.56      -$85,303.02
    Gravel/Snowplowing:            +$0                    -$5
    Interest Transfer Acct:          +$503.82           -$908.85
    Internal Auditor:                    +$0                    -$5,752.32
    Judicial/Legal:                       +$0                    -$15,933.27
    Land Purchase:                    +$1,400.80         -$0
    Library:                                 +$0                     -$3,570.89
    Off-Reservation:                   +$0                     -$2,489.77
    Ojibwe Language:                 +$0                     -$5,033.33
    Phone Cost:                          +$592.14            -$3,934.91
    Police Commission:               +$0                     -$807.39
    Police Dept:                           +$36.90              -$42,851.52
    Realty/Leases:                      +$40                   -$5,976.86
    Septic System:                       +$1,000              -$6,375.48
    Special Projects:                    +$0                     -$64,241.77
    Space Cost/Building:             +$27,073.44       -$64,692.99
    Summer Feeding:                  +$0                     -$382.22
    Summer Youth:                      +$0                     -$513.83
    Tribal License Plates:            +$4,802              -$1,132

    Totals For February
    Revenue: $104,808.32
    Expense:  $394,066.59
    *Loss: -$289,250.27


    *   Membership raised question in regard to the Interest Transfer Account. Wanted to know if it was an
    Interest Account, why is there a negative reflection in the monthly statement. Bonnie Greene stated
    the Account in question is actually the Interest generated collectively from all of the Accounts that is
    floated into the General Account to cover bills for programs that may have already been closed.


    *   Tribal Member was concerned about the Cigarette Tax Revenue Account. Member stated if it’s a
    Revenue Account why does it reflect losses. Bonnie Greene stated the Account is based on the
    claims which are done twice a month and the timeframe varies from when we receive our check from
    the State. Member requested if the Treasurer could check into the payment timeframe as it didn‘t
    seem right that the State would make sporadic payments..


    *   Concern was raised in regard to the Special Projects Account. Membership wanted to know what it
    was and why we Expended $64,000 plus. Bonnie Greene stated it was several Program Accounts
    lumped into one thing, such as; Aging, Tribal Court, etc. Membership stated the programs mentioned
    already have their own respective Accounts. Bonnie Greene explained these programs don’t have the
    full funding so the Tribe uses the Special Projects Account to cover the remaining costs. Membership
    was curious as to what the difference was between Special Projects and the Inter-Fund Transfers.
    Membership requested if the Special Projects Account could be broken down further so we may get a
    clearer picture of where our monies are being spent and see exactly how much we are subsidizing
    these Programs. Chairman Wiggins requested that the Treasurer look into and address this issue as
    this topic keeps surfacing at the Meetings.


    *   Tribal Member raised the issue as to when we are going to get a Tribal Budget in place. Member
    was also under the impression we were exercising Tribe-wide cost cutting. Further stated  it is difficult
    to keep a firm grasp on cost effectiveness when the Special Projects Account involves such a broad
    range of Program spending.  Chairman Wiggins stated we are looking into costs and the Tribal
    Budget is still being built as we speak and building the budget is going to take some time, but the goal
    is to have a budget in place in July of 2011.

    *   Tribal Member felt that Government and business should be kept separate as there is presently
    zero         accountability.

    *   Membership requested an update on our Accounting Department’s transition to the MIP Accounting
    Software as our goal date (April 1, 2010) has already come and gone. Bonnie Greene stated she
    wants to make sure the Accounting Staff is fully trained and knows what they’re doing before the Tribe
    switches to the new system. Greene further stated there are several little things we need to work out
    before we get in there, such as; purchase orders for example. Tribal Operations Manager stated we
    are sort of waiting for some feedback from the Auditor who will be back this week. Tribal Ops. Also
    mentioned that Property Management modules are being worked into place; Inventory List and a
    Property List. There is also a draft in the works for purchase orders and procurement policy. There is
    also an ongoing debate as to whether or not our business Enterprises will follow along with the
    Governmental side in our transition or will our Enterprise Accounting stay with MAS 90; as the general
    guidance from our Auditor is that MAS 90 is easier to work with from an Enterprise standpoint. In
    closing Tribal Ops. stated we must “Make sure our Accounting structure and our Tribal Accounts are
    solid before we make the jump.”

    Enterprise Report for month of February was read and accepted as follows:

    February’s Enterprise Financial Report:

    Casino:           +$1,179,832.07       -$614,459.62        (-$58,813.10 transferred out)
    Accounting:     +$0                          -$30,387.24
    Bar:                 +$25,379.73            (-$7,821.30 cost of goods)      -$13,033.25   (+$4,526.22 total)
    $1.04?
    Food Service:  +$77,547.03           (-$43,014.22 cost of goods)     -$55,677
    Shuttle:            +$0                             -$7,310.16
    Smoke Shop:   +$52,524.77            (-$50,814.56 cost of goods)    -$11,786.33
    Lodge:             +$38,152.83            (-$129.03 cost of goods)         -$38,565.77


           Total Casino Complex:
            Revenue:  +$1,373,436.43  
    Cost of Goods:  -$401,778.07
             Expense:  -$771,219.77   
    Transfers Out:  -$58,813.10
                 *Profit:  +$441,625.89


    Water & Sewer:       +$1,154.16    -$43,120.22  
             Recycling:     +$761.28       +$22,108.91
                Daycare:    +3,893.50      -$10,921.83
      Grocery Store:     +$89,078.80      (-$73,681.74 cost of goods)    -$29,484.57
          Gas Station:     +$286,913.03    (-$269,728.99 cost of goods)   -$23,970.91

               
               Enterprise Totals:
            Revenue:    +$1,755,237.20  
    Cost of Goods:    -$445,188.80
             Expense:    -$900,825.81
    Transfers Out:    -$58,813.10
                 *Profit:    +$350,409.49

    *   Member asked Chairman if anyone was identifying and keeping track of spending trends. Is it more
    or less than previous months. This issue was brought up at previous meetings. Member wanted to
    know if this had been set into motion.  Also was wondering if Promotions are being considered in
    regard to Restaurant spending/losses. Chairman Wiggins stated we currently don’t have anyone on
    staff to analyze that sort of data, aside from our Chief Financial Officer, but we do have our
    Departmental Managers that we are holding accountable and we are also currently looking to improve
    our current Enterprises across the board. Member wanted to know how are we keeping track of these
    things if nobody is looking into this data. Chairman Wiggins stated we are presenting Financial
    Reports every month and we’re doing the best we can.

    *   Tribal Member wanted to know when the Shareholders/Members are going to receive a Financial
    Meeting. Since the Audit findings were presented it is now time to sit down and address these things
    and find out what‘s going on. Member stated everything seems to revolve around a Budget and the
    only way to arrive at a working Budget is to analyze historical data and spending trends. Chairman
    Wiggins agreed and stated “we are working on it.”

    Monthly Reports:

    Council Member Connors raised question to a $280,000 carry over in the TANIF Program. Chairman
    Wiggins stated we are currently investigating the TANIF Program and General Assistance due to
    strong Community concern. Chairman further stated he will have an official answer formulated for
    Council Member Connors. Treasurer stated regardless, there shouldn’t be that much carry over.

    *   Tribal Membership stated years ago, the Tribe had purchased a $40,000 Inventory Scanning
    System that would essentially eliminate any pilfering of goods at the Store. Was wondering if that
    might be a possible cause of why the Store is currently suffering huge losses.  Secretary questioned
    as to what pilfering was. Further stated she has never heard of any pilfering before. Membership
    stated if the scanning system had been utilized we would have our questions in regard to pilfering
    answered.  Secretary stated she has never known of any new Inventory System being entered into
    the Store’s registers and if they did then she has no idea, but she has been at the Store every single
    day and is unaware of any new system. Chairman Wiggins assured Membership that Internal Controls
    are in place, along with our Surveillance Cameras. Secretary further stated every penny is accounted
    for in the registers through daily, weekly, and monthly reports. Member stated that was all fine, but the
    Store is still losing huge amounts of money. Chairman Wiggins stated the IGA Store is a vital part of
    our Community and he will do his best to address these concerns.

    *   Member Questioned what was going on with the fraudulent check case at the IGA Store. Treasurer
    stated the Chief of Police has turned the case over to the District Attorney’s Office and there are two
    felony counts involved. Further stated she will check into the matter for any update.

    *   Tribal Member reminded Chairman to approve the Agenda. Member also raised concern over the
    structure of the Meetings, as there is a Meeting tonight and one also tomorrow. Was this in all
    actuality, two separate Meetings, or was this an adjournment and continuance. Member also wanted
    to know how Stipends were going to be paid. Chairman stated this was indeed two separate Meetings
    and Council will be getting a Stipend for both Meetings.  Membership was still confused as to the
    structure of the Meeting set-up and their respective Agendas. Chairman Wiggins stance was the short
    Agenda for tonight’s Meeting was to give due diligence and due process to a very important issue in
    our Community and the shortened Agenda was to ensure enough discussion time for tonight‘s topic.  
    Chairman stated we could recess but we’re not. Also this Tribal Council has been very conservative in
    regard to Stipends spending and he would hold his Administration up against any previous
    Administration as far as Stipends are concerned. He also mentioned cost-cutting strategies that the
    current Council has implemented as far as travel spending.

    Agenda was accepted approved as amended.

    5 Minutes:

    *   Tribal Member questioned why our Tribe doesn’t have a Land Committee per the Constitution.
    Member felt very strongly about the formation of a Land Committee and the adherence of our
    Constitution. Chairman Wiggins said he would look into it.

    *   Tribal Member inquired as to whether or not the Tribal attorney has advised the Council to start
    adhering to our Corporate Charter. Has he reported back to the Tribal Council with an answer.
    Member felt that maybe the reason why he hasn’t is because the Attorney has nothing to report other
    than to follow our written laws. Chairman asked a previous Chairman in attendance if his
    Administration followed the Corporate Charter. Ex-Chairman informed Chairman Wiggins, the answer
    was yes. Tribal Member stated the Charter is still law which needs to be followed.  Chairman Wiggins
    stated that was just one interpretation. Chairman further stated the argument for legal is that the
    Charter had been intact before we had asserted our sovereignty and endeavored into Gaming.

    *   Wage Comparisons were  discussed along with Tribe-wide Salary Caps.

    *   Membership raised concern over possible lay-offs and Unemployment Benefits. Chairman stated
    he was made aware that Accounting hasn’t paid Unemployment Taxes since January 2009 until
    January of this year.

    *   Tribal Member wanted to know what the holdup was with the new Head-Accountant position.
    Member was informed that Interviews for the position are being held tomorrow.

    Regular Agenda:

    Housing Board/Patti Neveaux:   Three ex-Housing employees brought grievance before Tribal
    Council. Several varying accusations were made against current Housing Board. Among the
    accusations mentioned were lack of adherence to (1)Procedural, (2) Procurement, and (3) Personnel
    Policies and Procedures. Patti Neveaux felt the three ex-employee terminations were cruel, vindictive,
    and tainted with political agendas. The Housing Board denied these allegations. It was also the
    Housing Board’s firm stance these specific matters revolved around Personnel issues and at the
    counsel of their Attorney, Paul Arbuckle, the Board declined to delve further into these issues in Open
    Session as there are Policies and Procedural Guidelines which needed to be followed in dealing with
    Personnel issues.

    Patti Neveaux requested a motion be made by Tribal Council to remove and disband the Housing
    Board. More allegations were made against the Housing Board involving elder abuse, nepotism, and
    verbal threats. The Housing Board vehemently denied the allegations but wouldn’t get into specifics
    during Open Session as these issues directly involved Personnel matters.

    Tribal Council voiced their thoughts on the Housing Board/employee termination conflict. Vice-Chair
    Lemieux felt we should get a new Board. Council Member Greene believed Policies and Procedures
    had been broken and something needs to be done with the Housing Board. Secretary Ford felt the
    Council wasn’t in any position to make a decision without talking to the Housing Board before a
    decision. Treasurer Burns indicated a time duration discrepancy involving Board terms. Stated the
    letter presented to Council by Patti Neveaux was presented as factual, when indeed it wasn’t factual.
    Council Member Connors felt in order to make a decision, Council needs to hear the other side of the
    story from the Housing Board. Council Member Corbine felt the allegations should be looked into, but
    stated getting rid of the Housing Board is pretty drastic. Chairman Wiggins stated that it is the Council’
    s duty to address the overall Housing issue. It was his belief that some Policies and Procedures were
    not followed. Chairman also felt the Council must approach with caution in regard to a plan of action
    and felt a planned approach was prudent as the Tribe is on the cusp of receiving a large sum of Low-
    Income Housing Tax Credits and we must ensure there is no operational lapse.

    Chairman Wiggins stated a decision isn’t going to happen now, but this issue isn’t going to “disappear
    into the night.” A direct response is needed from the Housing Board to Tribal Council and further
    exploration of this issue is merited. Chairman does have questions as to why the Housing Board would
    make huge Personnel moves when Housing was on the cusp of getting a new Director. Chairman
    Wiggins took responsibility for the huge disconnect between the Housing Board and Tribal Council.
    Chairman is looking to set up an Open Meeting (but Council reserves the right to go into Executive
    Session) sometime next week and expects a direct response from the Housing Board.

    There was a motion to remove the Housing Board vacancy from the agenda until Council investigation
    was done. Motion to strike Agenda Item #2 from Agenda failed 4-2

    Housing Board Vacancy:   Tribal Council held secret ballot vote. Luanne Mcutchen won the vacant
    seat with 2 votes.


    Meeting ended around 10 PM.
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