We recently released the 2020 Seneca-Cayuga Nation Annual Report. It is full of great information, and you should be sure to read it. The annual report talks about many ways the Seneca-Cayuga Nation is benefiting all members and our community. For example, in the last year the Substance Abuse program has served 56 people. $1,440,360.97 has been distributed to 1,457 members in benefits, and CARES Act funds were distributed to all tribal Elders. The Education Department made 1,345 payments to members for various scholarships and other education focused assistance.

All of the programs in the annual report need money to operate. Without a solid foundation of reliable revenue sources and good financial management the Seneca-Cayuga Nation would not be able to provide services, or invest in the future of our great Nation. There has been much improvement in how we budget, spend money, track finances, and invest in assets. These improvements are not always visible to the public, but they are critical to the long-term stability of our Nation. 

The Seneca-Cayuga Nation is funded by two primary sources. The first source is the businesses we own. These enterprises include Grand Lake Casino, Grand Lake Lodge, and the Seneca-Cayuga Tobacco Company. The second source is United States Federal Government allocations. These two sources of money represent the entirety of our income and all of our spending ability.

 

Money from the Federal Government comes with complex guidelines and limits on how it can be used. Because of this, those dollars must be used for specific programs, not for general Nation operations or benefits. Examples of federally funded programs include the NAHASDA Housing Rental & Emergency Program and the Seneca-Cayuga Nation Violence Prevention and Victim Services Program. 

Money generated by our tribally-owned enterprises have more flexibility in how it can be spent. Each month our business makes profit; this profit is used to pay benefits, fund programs, pay staff, maintain facilities, and buy supplies. The money is spent according to the budget established by the Business Committee.

Managing these two sources of income is a critical task for the financial health of our Nation. There are four areas related to finance that must be in place for financial health. First, we must plan for how we will spend money by having a well thought out budget. Second, we must have good record-keeping that tracks how money is spent. Third, we must have easy access to reports that tell us how much money is available so adjustments can be made to the budget as financial conditions change. Finally, there must be policies in place that control how money is spent, tracked, and accessed to ensure there is no fraud or mismanagement. 

The ongoing COVID-19 pandemic is an excellent example of why effective accounting and financial systems are critical. Applying for money from the CARES Act is a complex process requiring accurate information on short notice. We quickly applied for the Payroll Protection Program, the Coronavirus Relief Fund, and other grants. The Payroll Protection program made it possible for us to pay Nation employees, and the Coronavirus Relief Fund allowed us to make $2,000 payments to all Elders. Without a well-functioning accounting system, these applications would have been impossible. 

Improving Seneca-Cayuga Nation Financial Processes

One of the Business Committee's priorities the last few years has been to modernize and update our accounting practices. One of the most significant improvements has been to hire Finley & Cook, an accounting firm based in Shawnee, OK. Finley & Cook was hired in 2014 when the Business Committee recognized there were severe financial issues that needed to be solved. Finley & Cook provides accounting services, reporting, and other financial services to the Nation. The most important aspect of their work is providing outside accountability for executing sound accounting practices. It has been a long process to update our financial systems, but much progress has been made and now, our yearly audits are conducted on time and with minimal findings for areas of improvement. In 2012 the audit had 15 findings, which means that there were 15 specific problems with Nation finances found by the auditors. In 2017, 2018, and 2019 there were no findings. All audits are conducted by an independent auditor, and submitted to the Federal Audit Clearinghouse. The Office of Inspector General returns the result of the audit to the Nation. 

Number of Audit Findings by Year

Year	Financial Statement Findings	Federal Awards Findings and Questioned Costs	Total Findings
2012	14	1	15
2013	5	0	5
2014	5	0	5
2015	1	0	1
2016	2	0	2
2017	0	0	0
2018	0	0	0
2019	0	0	0

Audits conducted by outside audit firms have had no findings, or problems with Nation finances, the last three years. 

Improvements in our financial process have focused on four main areas: Basic bookkeeping, reducing expenses, cash flow management, and accurate data.

Basic Bookkeeping

The first area is basic bookkeeping—uniform policies for how money is spent and recorded means that every dollar can be tracked and budgeted. Purchases within the Seneca-Cayuga Nation administrative offices require a purchase order, and all receipts are scanned electronically, and the transaction recorded by Finley & Cook. There are nearly 1,000 transactions a year for supplies and equipment, in addition to benefit payments. There is a paper trail for every transaction. 

Reducing Expenses

There are several policies and procedures in place to ensure we get a good price when we buy supplies, equipment, and services. A purchase order is filled out and submitted for anything that needs to be ordered or bought. This means that the Procurement Department has an opportunity to search for the best price or batch orders together to get a better deal. Any purchase over $5,000 must be approved by two Business Committee members and the Chief. Anytime a contractor is hired for an expense over $3,500 we always get three quotes to compare pricing. We also keep an inventory list of what we have to avoid duplicate purchase. These policies and procedures minimize our expenses for supplies and equipment, as well as services provided by contractors such as plumbers and electricians.

Cash Flow Management

Accurately tracking transactions allows for cash flow management. Managing cash flow means ensuring there is enough money in the bank to meet our obligations. This ensures that when a member brings a benefit check to a dentist or eye doctor, they can be sure it will not bounce, and vendors can be sure they will get paid on time. In times of crisis such as the COVID-19 pandemic managing cash flow becomes even more critical as there is less money and hard decisions about which services and benefits can continue must be made.

Access to Financial Data

The third area of focus for improvement is access to accurate data and information for decision making. Finley & Cook prepares regular reports and audits, which gives everyone on the Business Committee a precise picture of the current state of finances. Useful data means that decisions can be made that take into account the current financial picture and projections for the future. It is a priority for the Seneca-Cayuga Nation to promote the wellbeing of every Seneca-Cayuga person, and good data means that we can make better decisions for the long term health of the Nation. 

Looking to the Future

Six years ago, the Seneca-Cayuga Nation was under investigation by the United States Justice Department for mismanagement of federal grants. We owed $1.2 million in unpaid taxes and fees, our checks regularly bounced, and there were no controls on how money was spent. Nation assets were in danger of being seized by the IRS. Today we comply with all Federal guidelines for grants. We have paid all the back taxes and negotiated the removal of fees. We know how much money we have, and we meet our obligations every month. There are systems in place to control how money is spent. Our yearly audit is completed on time, and for three years in a row there have been no findings, meaning that auditors found no problems with the financial management of the Nation.

As a Nation, we do face financial challenges. The current COVID-19 pandemic and the temporary closing of Grand Lake Casino means there is less money available for operations and benefits. We own property on Grand Lake called Royal Bay, which was purchased in 2012 by the previous administration. Unfortunately, the specifics of the purchase contract are in dispute, and until the court resolves them, we cannot invest in the property or start businesses there. For the most part, our Nation remains largely dependent on a single source of income, which is Grand Lake Casino. 

Despite these challenges, the Nation is in a strong financial position. We have spent the last six years building the financial foundation that our Nation needs. The financial foundation of basic bookkeeping, reducing expenses, cash flow management, and accurate data allow us to protect Nation assets, and make fair distributions of benefits to all Seneca-Cayuga people. Much of this work is behind the scenes and not visible, but it is vital to our long term health. April Gonzalez, Anita Bearpaw, and Thomas Weidman work tirelessly in the Accounting Department to keep our finances in order. Every employee of the Seneca-Cayuga Nation contributes to the financial health of the nation by working hard to keep expenses down and track transactions. We are thankful for the hard work everyone does to contribute to our long term financial health.

Today this foundation means that we can start looking to the future. We have good credit, useful data, minimal debt, and profitable businesses with great leadership at Grand Lake Casino and The Seneca-Cayuga Tobacco Company. We are well-positioned to make new investments in the business, infrastructure, and people needed so the Seneca-Cayuga Nation can continue to promote the well being of all Seneca-Cayuga people.