Navajo Council taking up Veterans Fund

SPONOR OF LEGISLATION/DELEGATE ALTON SHEPHERD
Asking for one amendment which is to carryover balance in Navajo Nation Veterans Trust Fund into 2014 budget.

I see this as final stage of this legislation which would provide funding for homes for veterans. We will continue to monitor this project which I believe will continue to grow.

At Naa’biki’yati’ Committee discussed extensively and it was passed.

LEGISLTION #0193-13: AMENDING THE NAVAJO NATION TRUST FUND, 12 N.C.C. SECTION 1171, TO PROVIDE FOR EQUAL DISTRIBUTION OF THE ANNAUL COMPREHENSIVE BUDGETED AMMOUNT BETWEEN THE NAVAJO NATION VETERANS TRUST FUND AND THE DEPARTMENT OF VETERANS AFFAIRS TO CONSTRUCT 15 HOMES AND TO PROVIDE MINOR RENOVATIONS AND REPAIRS FOR NAVAJO VETERANS IN EACH OF THE FIVE NAVAJO AGENCIES.

AMENDMENT 1
DELEGATE LORENZO BATES
Approve carryover of available Veterans Trust Fund from fiscal year 2013 to fiscal year 2014.

DELEGSATE LEONARD TSOSIE
We don’t have any dollar figures. How much will be used? How much will revert into Veterans Funds?

There is no dollar amount again. I have a serious problem and it’s not in the legislative act and look at whole section. If look at section 1176 of Veterans Trust Fund, you can spend Trust Fund until people vote with referendum.

And who choose these five veterans? And I see the names of some former chapter officials. And we have thousands of veterans.

We shouldn’t adopt this. What I also see is that there is a process for spending Veterans Trust Fund and there should at least be a vote.

I think we are being lawless. And even though Navajo government not obligated to help veterans; we do. This is responsiblity of U.S. government. There is so much need for children but yet helping adults. And if you ask a veteran, he or she will say, “Feed the children first.”

DELEGATE LEONARD PETE
I’m reading that balance of 2013 funds from Veterans Trust Fund would not revert into Veterans Trust Fund?

DELEGATE ELMER BEGAY
Veterans spoke about this legislation and now Delegate Bates sponsoring legislation for unexpended money from Veterans Trust Fund to not go back into Veterans Trust Fund.

Veterans said that if anyone wants to help them that they have to go all the way cuz they go all the way with their prayers.

DELEGATES BATES
look at budget and it states 4 percent would go towards construction of homes and the purpose of amendment is that if during this process that unexpended dollars would return to Veterans Fund. But this amendment allows money to stay there to complete construction of homes.

DELEGATE SHEPHERD
As far as understanding Delegate Tsosie’s question, $86.1 million as of Aug. 8, 2013, is principal balance and can’t touch.

My intent is amend codification by diverting 2 percent of the 4 percent setaside of tribal revenues that go into Veterans Trust Fund based on percentage.

DELEGATE TSOSIE
Where in the law does it state that it/unexpended Veterans Trust Fund money reverts back into Veterans Trust Fund?

at end of each year, dollars lapse, except for chapters which get an automatic carryover. In this situation, it is practice that any dollars from Permanent Trust Fund lapse back into Veterans Trust Fund.

DELEGATE NELSON BEGAY
The projection for funds for Veterans Trust Fund and other Trust Funds are received in increments which makes expenditures of available Trust Fund money difficult and time consuming which would then make construction of homes for veterans time consuming.

DELEGATE WALTER PHELPS
Veterans in my area support this but there’s a concern about amendment, especially since Council just finished discussing the 50-50 formula for distribution of tribal revenues to chapters.

DELEGATE BATES
50-50 formula doesn’t apply.

DELEGATE RUSSELL BEGAYE
I support amendment. This is for 15 homes in each of the five agencies for veterans.

VOTE ON AMENDMENT 1 BY DELEGATE BATES TO ALLOW CARRYOVER OF UNEXPENDED AVAILABLE VETERANS TRUST FUND AT 7:25 PM
13 IN FAVOR, 3 OPPOSED

Council getting ready to vote on 2014 budget

Navajo Council Delegate Jonathan Hale asked Council to hear from newly crowned 2013-14 Miss Navajo Nation Natasha Hardy during the Council’s special session on Friday, Sept. 9, 2013. Photo by Marley Shebala

NAVAJO COUNCIL GETTING READY TO VOTE ON PROPOSED 2014 BUDGET. LEGISLATIVE SERVICES DIRECTOR TOM PLATERO IS READING THE MORE THAN 30 AMEMDMENTS THAT THE COUNCIL APPROVED TO THE PROPOSED 2014 BUDGET.

Council approves $550,000 without waiver of law

NAVAJO COUNCIL DEBATE OVER APPROPRIATING $550,000 TO CHAPTERS FOR BURIAL COSTS BUT MONEY WOULD GO INTO “GENERAL ACTIVITY ACCOUNT” WHICH IS BASICALLY A DISCRETIONARY FUND OR SLUSH FUND.

DELEGATE JONATHAN HALE IS THE DELEGATE THAT MADE THE AMENDMENT FOR 110 CHAPTERS TO EACH RECEIVE $5,0000 FOR A TOTAL APPROPRIATION OF $550,000.

DELEGATE ALTONG SHEPHERD
Does the Council have to use the 50-50 formula for this $550,000 to each 110 chapters?

THE 50-50 FORMULA IS FOR HOW TRIBAL FUNDS ARE APPROPRIATED TO CHAPTERS AS SUPPLEMENTAL FUNDS. LAW MANDATES THAT 50 PERCENT OF THE FUNDS ARE DIVIDED BY 110 AND 50 PERCENT IS DIVIDED BY THE CHAPTERS’ REGISTERED VOTERS.

ACTING CHIEF LEGISLATIVE COUNSEL MARIANA KAHN
money must be distributyed by 50-50 formula. Case law regarding Appropriations Act mandates that any waiver of Appropriations Act must be taken to people.

If waiver language placed in appropriation then won’t take effect until people vote.

NAVAJO DEPARTMENT OF JUSTICE GOMEZ
Chapters should be notified before Council acts on $550,000 supplemental appropriation for Chapters or use 50-50 forumula.

DELEGATE HALE
Bigger chapters hoard money with 50-50 formula. This is just $5,000. We also appropriated funds for specific chapters and for specific uses.

DELEGATE LEONARD TSOSIE
Waiver of Appropriations Act is from Navajo Nation Supreme Court and AA is in Budget Instructions Manuel and Council never approved law that mandates Council to BIM.

Waiver is just illogical way for Navajo Supreme Court to explain decision. And current Navajo law does not state that.

SPEAKER NAIZE
We use to be straying away from amendment. any recommendations from attorneys?

NDOJ ATTORNEY GOMEZ
reading 50-50 formula mandates prior notice.

DELEGATE ALTON SHEPHERD
place in Speaker’s account so don’t need 50-50 restraint.

DELEGATE HALE
Speaker’s account should reflect that funds are for burial costs and by equal distribution.

DELEGATE WALTER PHELPS
if process easier and funds can be accounted for, then support.

DELEGATE PETE
my chapters provide but individual must be voting chapter member and limit is $125.

DELEGATE LORENZO BATES
based on modified amendment and 50-50 formual: Is speaker required to honor 50-50? And is this leaning towards Discretionary Fund for Speaker?

NDOJ ATTORNEY GOMEZ
if allocation is broken down by chapter then require compliance with 50-50 but if entity that has guidelines in place.

DELEGATE HALE
even if go into Speaker’s account, it’s still subject to 50-50 formula?! The social services dept has policies but how long will it take for assistance to clear red tape. My chapters have burial assistance policy.

2013-2013 Miss Navajo Nation Natasha Hardy came into Council chamber and introduced herself. She was crowned during Navajo Nation Fair last week in Window Rock, Arz.

VOTE ON DELEGATE JONATHAN HALE’S AMENDMENT FOR 110 CHAPTERS TO EACH RECEIVE $5,000. TOTAL APPROPRIATION IS $550,0000.
12 in favor, 5 opposed

DELEGATE JONATHAN NEZ WAS AMONG 5 THAT OPPOSED APPROPRIATION
* didn’t want to waive laws. Council already waived laws regarding Council approval of prior year audit and use of pesonnel lapse fund.

Chapter Discretionary Fund?

NAVAJO COUNCIL DEBATING WHETHER TO APPROPRIATE $5,000 TO EACH CHAPTER FOR “CHAPTER GENERAL ACTIVITY ACCOUNT” OR “DISCRETIONARY FUND” TO HELP FAMILIES WITH BURIAL COSTS BUT SOME DELEGATES ARE CONCERNED WITH HOW CHAPTER MIGHT USE $5,000 SINCE IN DISCRETIONARY FUND WHERE CHAPTER OFFICIALS COULD USE FOR ANYTHING THEY WANT. ONE OF THE DELEGATES REMINDED COUNCIL ABOUT REPORT COUNCIL RECEIVED THAT CHAPTER ELECTED OFFICIALS & STAFF HAVE RACKED UP THOUSANDS OF DOLLARS IN TRAVEL COSTS.

AMENDMENT 34
DELEGATE ALTON SHEPHERD
NNC authorizes $555,000 for all 110 chapters for general activity fund from Personnel Lapse Fund. Some goes into accounts but restricted but as far as O1 account, it can be moved around.
Sad to say, lost one baby boy in accident and members will come for help but 01 account has zero balance.
Know 12.5 there but goes into other account.
$5,000 per chapter.

DELEGATE LEONARD TSOSIE
Concerned cuz account not specific so could use for other purposes other than assistance such as burial. Don’t like funeral homes hostage. They want all payments and Navajo families resort to pawning to come up with money. Unfortunate.
If give this then add to $70 million and mix up.

DELEGATE LEONARD PETE
One of richest place is Chinle cemetery with all turquoise and silver. We do have plan of operation. For general activity fund, help with $125. Right now working with family that lost loved one during fair.
Just make that point.

DELEGATE SHEPHERD
To make sure don’t use to replenish funds for chapter elected officials and staff, place language that not allowed for such purposes.

DELEGATE JONATHAN HALE
We’re now talking about predatory business practices regarding mortuaries.
It’s up to each delegate to talk to chapters. When discussing regional roads planning, chapters said they wanted Navajo Department of Transportation to cover cost but chapters need to understand that they also need to contribute.

DELEGATE JONATHAN NEZ
Leaning towards where designated for certain purpose. This is developing local chapter discretionary fund and chapters might start feeling that this is re-occurring fund and it will start growing for a line item without policy.
So I was going to suggest is for Resources & Development Committee develop policy but does chapter want to fund.
We got report on chapter travel spending. There was a lot of money being allocated for officials and staff. $5,000 could be good cause for chapters to approve cuz need is there.
But here, we’re just putting more money there and chapters might move money around and might even put in travel.
There is concern over travel for chapter officials and staff.
So either specify thru policy here by RDC, other I can’t support.

DELEGATE RUSSELL BEGAYE
Casket costs about $5,000 so perhaps specify limit amount.

Navajo Council special 2014 session

Greetings Relatives/Frens,
I’m here at empty Navajo Council chamber waiting for Navajo Council to convene their 2014 Budget session.

The Council tabled the proposed 2014 tribal government operating budget on Friday, 9-6-13, after Delegate Jonthan Nez, who is also the Budget & Finance Committee vice chairperson, realized that the proposed 2014 budget with 30 amendments required approval by two-thirds of the 24-member Council which would be 16 “yes” votes.

BUT on Friday, there were only 16 delegates present and so 15 delegates voted yes and 1 opposed to table the budget. Delegate Nez called for the tabling motion with a directive for special Council session today at 1 pm.

The sole opposing vote on tabling the budget was Delegate Leonard Tsosie who supported Council approval of a continuing resolution of the 2013 budget.

The tribal government’s budget calendar begins on Oct. 1 and ends on Sept. 30 and so the Council needs to approve an annual budget with enough time for the president to review it and take action on it within the ten days that the president is allotted by tribal law.

I was going to write more about what the Council’s Resources & Development Committee did this morning but I got copies of some of the 30 amendments and so I need to copy really FAST cuz I have to return as soon as Council starts.

Here are links to Council committee meetings this week, including a meeting between Navajo Tribal Utility Authority and the RDC concerning energy development. NTUA is pushing for a coal gasification plant on the former Desert Rock location, which is near BHP Billiton coal mine. The proposed NTUA gasification plant is also on land that is under the jurisdiction of the Burnham Chapter.

Navajo Nation Council/Committees meeting schedule for week of 9-9-13
https://docs.google.com/file/d/0B7xhIWpNuJXiYWhFQWZvWjBDbzQ/edit?usp=sharing

Council’s proposed agenda for 9-9-13

Click to access 09SEP2013_NNC_Special_Session.pdf

Navajo Council website for pdfs of proposed Council/Committee agendas
http://www.navajonationcouncil.org/meetings.html

Using Navajo people’s money for gambling

AMENDMENT 11
DELEGATE LEONARD TSOSIE
For more than $1 m from Permanent Trust Fund shall be approved by Naa’biki’yati’ Committee

QUESTION OF PRIVILEGE
Delegate Shepherd
Is this in order? Otherwise just go round and round. Look at Title 2, that authority is given to Budget and Finance Committee to work with Investment Committee. Ask for legal advice from Navajo Department of Justice.

POINT OF ORDER
Delegate Katherine Benally
Conflict cuz attorney Gomez part of Investment Committee

NDOJ Gomez
Title 2, section 301, B-5: Budget and Finance Committee coordinate and all financial investments for tribe.
So under Title 2, regarding investments is delegated to Investment Committee so this amendment would require Title 2 to be amended and it’s in conflict with this section of Title 2.

ACTING CHIEF LEGISLATIVE COUNSEL MARIANA KAHN
The code reads as Gomez stated. Navajo Council has specified authorities for B&F just as other authorities have been assigned to other standing committees. I wish had more time research issue.

I believe entity that divides authority, whichis Council, implicitly retains powers & authorities it gives to committees,but manner in which Council wud reorder authorities and powers which is thru legislation and amendment process.

But the fact, I do believe, that Council retains overall authority but without time to resrarch law in which authority of praticular standing committee is usurped and taken back by main body, Council. Don’t have law books to research.

But understand Council divided up responsilibyt and had authority to re-order those authorities. But caution that do now that you would open possiblity to open for other standing committees.

Generally best order to do in resolutin format. But Council retains authority for overall standing committees. But this re-ordering of committee powers is cleaning done thru legislation.

SPEKAER NAIZE
Cud u develop legislation for upcoming Fall session.

DELEGATE TSOSIE
if look at Title 2, we are very specific and wat discovered in session is Trust Fund being spent left and right. and that from auditor. wat saying here is that for Council to kow what being spent and when that we have oversight authority. We are not re-ordering anything. For budget, with setaside and investment being discussed here that any expenditure of more than $1 million from Trust Fund come to Naabi.

if go with Gomez interpretation, then all power lies with B&F and annual budget would not come to Council.

But with power of Council reviewing annual budget, Council has power.
Under guise of investment, B&F has created Investment Committee to spend Trust money and know know that it’s being spent left and right.

Thot Ms Kahn going right way but she puts “however” in there.

This is budget session and when want to put restrictions on expenditures that is right of Council.

DELEGATE RUSSELL BEGAYE
Title 2, 5-B: word is coordinate, not approve. working presented by Delegate Tsosie – coordinate and review lies with B&F but approve is for Council. I want further opinion cuz B&F has no approval, like Title 2, 5, sections 15 and 18. I believe it’s being interpretated properly.

NDOJ GOMEZ
two sections regarding review & coordinate all investments of Navajo Nation and another one, 300 C-1:

DELEGATE TSOSIE
I want to stay with amendment cuz it’s part of budget. It’s in order as stated by Legislative Counsel that Council bigger than Budget & Finance. Title 2 is not shield but for all committees to work together. And if Council sees need for reorganization then has power to do that.

SPEAKER NAIZE
Rules Delegate Tsosie’s amemdment out of order.
Delegate Tsosie challenges and Delegate Leonard Pete seconds Tsosie’s challenge.

DELEGATE TSOSIE
impot for council to protect its power. to vote against challenge, allows Budget and Fince unfettered authority to spend Trust Fund. How many of you hvae been given information on what Budget and Finance doing. Thot only Permanent Trust Fund but all the other Funds being used.

The Investment Committee has abandoned Twin Arrows project and Twin Arrows unfinsihed. sign unfinished, gas station unfinished. no golf course.

And say when in budget season, if find problems with way Funds being used then no opportunity to question.

DELEGATE DANNY SIMPSON/Budget and Finance Committee member
Council says that with amendments that follow laws and policies and procedures but when want amendment, we go with own interpretation and accuse attorneys of no confidence.

Opinion made that proper process is go thru regular Council session but saying it’s okay to go outside laws and policies. I have no problem with this coming beore Council.

I support Speaker’s ruling that Delegate Tsosie’s amendment is out of order.

DELEGATE MEL BEGAY/Budget and Finance Committee member
amendment unrighteous especially when NDOJ and legislative counsel said another avenue. but point is that this about undermining committee process and get back at some council members.

If want to do that then let’s open the doors. let us review projects under approval of Resources & Development Committee. Let’s play that fairness. but if do that, it’s going to create animosity and begin in-fighting instead of allowing nation to grow.

DELEGATE KATHERINE BENALLY
Agree to do through regular Council session. Remember that pple approved Budget and Finance Committee’s investment into casinos. They didn’t say how much. It was the pple’s marching orders.

DELEGATE WITHERSPOON
the amendment essentially defines the approval of the Naabi Committee thru an amendment in relation to budget sesson. Delegate Begaye said that to coordinate and review was not approval. But in line with making changes to Title 2 & 7, it’s been done thru Council regular sessions and by overstriking and underlining.

so amendment wud be proper if stated that “presented” to Naabi until actual legislation for approval process.

The concern brot forth raises concerns cuz $11 m appropriation from Permanent Fund for use by Controller is concren. that consulting budget of $1 m is a concern. antoher concern is trvel, $315,541. HOw much of that expense related ot committees. Travel is double that of standing committees.

Fund shall be audited within 90 days, by end of March each fiscal year and report distributed to Council and President. Are we in compliance? And needs to be independent audit.

Glad amendment made but I don’t believe proper venue for Naabi to approve. We are not in regular session and under Title 2 but the reason for amendment raises my concern.

DELEGATE LORENZO BATES/Budget and Finance Committee chairperson
If allow this to happen, and the committee and any of us feels that another committe oversteps and not right, that allows that simply by circumventing Title 2. That is what it will cause.

For example, Law and Order approved re-priortizing projects. Shiprock at top and then removed to bottom. I disagreed but respected decision. That committee has authority.

Navajo Council delegated each committee authority and Council delegates B&F and when lok back at B&F action, what did we do wrong? Where are we not getting return on dollars? Hear conflicting opinions on TWin Arrows that should have been given more to Twin Arrows. We chose to go in phases on approving funds for Twin Arrows.

Permanet Trust Fund also gives B&F authority.

DELEGATE RUSSELL BEGAYE
We’re not changing Title 2. by putting this in we are adding provision in management plan to investment plan. $1.2 billion is in Trust Fund and pple are asking how the Trust Fund is being used and that is their right.

All they ask if that they are informed on how Trust Funds are being used and return on investments.

For example, when we do cross commission agreement with sheriff/counties, Law and Order discusses but final approval comes from Budget and Finance. so we do allow these kinds of things.

We are talking transparency especially with people’s Trust Funds for veterans, handicap, scholarships, senior citizens.

This amendment pertains to Title 2 and Budget and Finance authority and asked Delegate Tsosie to draft legislation for council. This is only allowed in regular session.

DELEGATE PHELPS
appreciate opposing positions. appreciate Delegate Tsosie. in reading Title 2, itme B-2, to review and recommend budgeting, invstment, management. it sounds okay that what Delegate Tsosie asking for is harmless. But another section, gives B&F authority to expend funds: appropriate, review…all sources. So there B&F privilege to do what want with Investments. Both supported by Code.

so what’s not clear to me is what is out of order. so need more clarification from advisors.

VOTE AT 5:24 PM
Green for Tsosie, Red for Speaker
5 green, 14 reds so Challenge Fails

Headstart kids get tribal credit card

After a lengthy “IN THE BUILDING” recess, the council votes on Delegate Phelps’ amendment 8: $3 million for electrical lines, water lines and other infrastructure for frmr Freeze & NPL.

COUNCIL VOTE AT 3:48 PM
15 IN FAVOR, 2 OPPOSED

PROPOSED AMEMDMENT 9
DELEGATE ALTON SHEPHERD
OOC assist Headstart with one P-card/tribal credit card with maximum credit amount of $50,000 a month, to help children at 96 Headstart facilities. Two bi-weekly meetings with Office of Controller on expenditures of P-card, ETC.

SCORED A COPY OF AMENDMENT:
OFFICE OF CONTROLLER & CONGROLLER WILL PROVIDE SUPPORT TO NAVAJO HEAD START BY COMPLETING THE FOLLOWING DURINGTHE FIRST MONTH OF THE FISCAL YEAR:

1. HEADSTART WILL BE GIVEN ONE P-CARD WITH A $50,000 EXPENDITURE LMIT PER MONTH TO BE USED FOR PURCHASES TO IMMEDIATELY ADDRESS THE NEEDS OF THE PROGRAM. THE P-CARD WILL GREATLY ASSIST THE PROGRAM IN PROVIDING SERVICES TO THE CHILDREN LOCATED THROUGHOUT THE 96 NAVAJO HEAD START CENTERS. NHS MANAGEMENT IS AARE OF THE PROCUREMENT REQUIREMENTS AND WILL CONTINUE TO ADHERE TO THEM IN THE USE OF THE P-CARD.

2. BI-WEEKLY MEETINGS WITH CURRENTLY ASSIGNED OFFICE OF THE CONTROLLER ACCOUNTANT AND NHS ACCOUNTING STAFF.

3. COLLABORATIVE REVIEW WITH NHS OF FILING OF MONTHLY FISCAL REPORTS FOR FY12 AND TIMELY FILING OF QUARTERLY SF-425 FISCAL REPORTS FOR FY13 AND REVIEW OF GENERAL LEDGER DEDTAIL. OFFICE OF CONTROLLER WILL PROVIDE NHS MANAGEMENT AND NHS FINANCE DEPARTMEN SUPPORTING DOCUMENTATION OF OFFICE OF THE CONTROLLER CALCULATIONS TO DETERMINE THE GRANT MONTHLY FISCAL REPORTS AND QUARTERLY SF-425 FISCAL REPORTS

4. TIMELY BREAKDOWN OF FORWARD FUNDED CASH FOR F713 INTO CORRECT EXTERNAL FUND ACCOUNT.

5. ‘READ ONLY’ ONLY ACCESS TO THE HEAD START RELATED EMPLOYEES AND EXPENDITURES FOR THE FMIS AND THE HRIS COMPONENT OF THE JD EDWARDS SYSTEM.

Just $3 m for frmr Freeze & NPL

DELEGATE PHELPS
We need more time to develop budgets for chapters.

SPEAKER NAIZE
Assign staff to help Phelps.

DELEGATE JONATHAN NEZ
maybe compromise, since PHelps has budgets for $3 m for frmr Freeze & NPL.

B&F has amendment #3, $10 m Infrastructure Development Fund, which is for buildings/chapters so put Cameron, Chilchinbeto, Chichiltah, Tonalea there for funding.

DELEGATE LEONARD TSOSIE
Thot $10 m for administrative buildings that were closed down. Otherwise, each delegate has need for chapter. I have big list. I represent 8 chapters.

And how can you say this is in order when there’s a blank line. Instructions to Delegate Phelps is that it is out of order instead of go and fix.

That is my point of order. Rule out of order and let’s go onto next amemdment.

SPEAKER NAIZE
I believe we are in order.

DELEGATE PHELPS
We will make clean and to point. for $3 m, waiting for Chief of Staff ARbin Mitchell to sign budget forms. Delegate K. Benally and I willing to take off chapters. So focused on original intent which is $3 million for frmr Freeze & NPL.

DELEGATE
During Naa’biki’yati’ Committee, it was clarified that these amendments are Council amendments, not programs. It’s our amendments and we will own up to them.

Just because doesn’t support amendment, doesn’t mean have to go beaucratic on us.

DELEGATE LEONARD TSOSIE
Phelps needs motion to withdraw his original amendment.

AFTER DEBATE ON COUNCIL FLOOR, COUNCIL CALLS RECESS:
MOTION TO RECESS, voting at 3:14 pm
9-9, Speaker Naize opposes so Vote is 9 in favor, 10 opposed

Housing for former Bennett Freeze?

UP AND BLOGGING FROM NAVAJO COUNCIL CHAMBER, WINDOW ROCK, ARIZ.
THE COUNCIL’S NAA’BIKI’YATI’ COMMITTEE IN SESSION TO TAKE ACTION ON DELEGATE KATHERINE BENALLY’S LEGISLATION: $220 MILLION BOND FOR CAPITAL IMPROVEMENT PROJECTS ACROSS THE REZ:

DELEGATE WALTER PHELPS HOLDING AMENDMENT FOR ADDITIONAL FUNDING FOR CIP ON FORMER BENNETT FREEEZE AREA:

DELEGATE DUANE TSINGINE
how many studies do you need/want? if this doesn’t pass, then regionalization or decentralization doesn’t pass then delegates from western agency will make amendment again. Housing is what former Bennett Freeze needs. I support this amendment.

DELEGATE DANNY SIMPSON
this $220 million bond is to get projects out to communities. The purpose of this and we use diferent terms but it’s to bring services. we hear about veterans waiting to get money and travel two time and only get $250 check and spend that trying to get check.

Accountablity! that’s what we heard during discussion of annual audit of 2011 Navajo budget. We want accountability at chapter level. And support support for frm Bennett Freeze. but need services at local level. Youth asking for jobs, scholarships. I’ll support Delegate Phelps amendment but only if it comes from Reserves or Personnel Lapse Fund.

Navajo Trust Funds funded gambling

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.
$59.1 million?
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.

GRANT
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.
KPMG agrees.
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

KPMG
Yes
$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.

DELEGATE WITHERSPOON
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?

CONTROLLER GRANT
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.