DELEGATE RUSSELL BEGAYE
Questions and some just knowing statements, go to page 3 and stated twice on bullet point financial highlights, $12 million decrease in govt funds, fair value increase of $65.9 million. Fiduciary Fund decrease
Funds decreasing but fair value increase? Explain.
Govt analysis: govt assets exceeded liabilities by $1.8 m compared to Sept. 2010, $1.6 m.
Page 7: again similar thing, analysis of govt activities, where $10.2 m is offset by $7.5 m decrease.
Page 8: govt activities under change, $23 m decrease. Explain.
Page 9: govt funds, Sept. 30, 2011, $190 m in deferred revenue and represents advances from BIA and Indian Health that have not been spent.
Page 41: under G, pledged securities, $5.6 m pleage for Navajo Hospitalities Enterprise.
Page 47: here are tribal entities, where nation provides capital financing. NTUA $17.6 m and 39.7 m for NAPI and total $95 m pledged for enterprises.
Page 50: borrow money and after payback, pay interest first and then balloon payment. I just want to find out if common practice for Navajo Nation. Interesting practice, in terms of making interest payments first and then balloon payment.
Page 52: the nation’s 2011 contribution t othe plan, $44.6 m but required contribtion was $39.3 m so more than what received.
Page 70: Contengency Management Fund, starts with $11 m. Explain.
Question of just wanting to know, last page, talks about total private trust fund, $113 m at end of year.
Phelps asking about $20 m deficit. Page 61 schedule of original budget and expenditures. First column, $119 m and final $258 m and difference is $139 m.
And lot of difference is supplemental appropriations and carryovers. Budget presented on current year basis and expenditures tracked on current year and any other expenditures not for current year makes budget appear over expenditures – spending more than taking in.
But spending from revenue sheet and covered by carryover and supplemental from reserves.
KPMG JOHN KENNEDY
Page 3: for 2011 and 2010, first number is $65 m increase and $12.1 million in 2011, but 2010 healthy.
Assets exceeding liabilities, page 6: wat owe is net assets, $1.8 billion in assets at that particular time.
$10.2 m increase offset, 2011 increase due to $50 m Peabody settlement and increase federal grants so increased revenues but 2010, $92 m. So better investment in 2010 then 2011, $70 m better.
Page 8: follows wat just talking about. 2011 revenues decreased by $75 m profit due to investment income line item.
Deferred Revenues: BIA has 638 grants and moment Navajo receives, immediately drawdown and deposit in bank account until spsnd money, $190 m in 2011 Sept. Each grant has specific purpose.
Page 41: pledged certificate of deposit:
INTERRUPTION BY DELEGATE WITHERSPOON
Wording misleading, shouldn’t it be that haven’t expended for that specific purpose.
Page 41: Hospitality Enterprise borrowed money and bank asked collateral and so if Enterprise didn’t pay then bank take certificate of deposit.
Enterprises: Navajo gave seed money to start operation and what gave as informational background so Council and others aware of contributions.
DELEGATE RUSSELL BEGAYE
Says no obligation for repayment so not pay back
$59.1 m KeyBank Loan to build jails and courts and Sales Tax money used to repay
Not unusual to borrow money in method did for Casinos.
Page 52: Retirement Plan, 2011 $44 m contributions and only needed $39 million. but did to catch up cuz underfunded plan in previous years.
Litigation: fund for potential litigation.
There are a number of Trust Funds, starting with Handicap Services to Land Acquisition.
Page 43: indicates Sept. 30, 2011, receivables-Fire Rock received money from Land Acquisition and Hogback lists equity. Have chapter govt, scholarship, Navajo Hopi Rehabilitation Fund, and many show equity for Northern Edge.
How is authorization given from all these Funds to help finance gambling industry?
Each fund, when set up, has fund management plan and within plan it specifies fund invested according investment policies which specifies that fund invested into fixed income and equity instruments. When investment set up for Fire Rock or Nothern Edge, set up as equity and fixed income investments.
Each Fund is within Master Fund portfolio and investment done pro rata. Look at Permanent Trust Fund and largest and it bears largest portion of investment into each casiso. Fire Rock different cuz came entirely from Land Acquisition Trust Fund.
VOTE AT 4:24 PM
9 in favor, 4 opposed
Naabi Committee adjourns. Navajo Council begins 2014 Budget session on Sept. 3, 2013, at Council chamber in Window Rock, Ariz. The Council is scheduled to meet on the 2014 budget from Sept. 3 to 6, 2013. Meetings are open to public.