KPMG report on audit of 2011 Navajo govt budget

Navajo Nation Council’s Naa’biki’yati’ Committee has started.

The only item on their agenda is audits of tribal operating budgets for 2011.

Before Naabi’s agenda is read into the record, Speaker Johnny Naize announces that the reservation lost a youth to suicide. We do our best to avoid these tragedies, Naize said. He’ll be visiting with family tomorrow.

Naabi Committee adopts agenda and Legislative Services Director Tom Platero reads the audit legislation and notes that there were no public comments during the public review of audit legislation.

Budget & Finance Committee Vice Chairperson Jonathan Nez is the sponsor of the audit legislation. John Kennedy, Joaquin ? KPMG senior manager, Ruffkid KPMG senior partner.

Bringing 2011 audit to you now because of closure of finance building. KPMG did great work of expediting audit. Appreciate Office of the Controller and staff.

2011 audit: January 2013 went into building to sort through documents.
‘Audit completion was delayed due to the mold in Administration Building #1 and special prosecutor filings.”
Got 2 extensions from federal government and very, very rare.
All funding came thru cuz of extensions.
Presented financial statements to B&F.

History of Audit Adjustments: Kennedy shows graph. 220 adjustments which was high but cuz of closure of admin building. 2012 audit has substantially less adjustments.

Audit for primary tribal government in Window Rock, not chapters and enterprises.

Page 3: layman’s explanation of audit by Controller Grant and includes $50 million settlement with Peabody, oil and gas prices. Read to find out what has transpired during year.

Financial Statement Overview:
2011 – $319.3 million in tribal revenues and includes $50 m from Peabody

2010 – $227.4 million in tribal revenues generated

2011: 56 percent of expenditures of budget is for personnel
$14 m for travel, $2.5 million into pension fund

$85 m in reserves in 2011. Much better last 2 years.

Grant fund revenues:
Going up but with sequestration, will show downward trend.
Deferred revenues: $190 million in federal money

flat for year but market down across the board and little better than market.
Becomes larger, page 41 & 43, lot of money lent to Navajo Gaming – Fire Rock 2009, Northern Edge 2011, Flowing Water 2010.

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