Secretary-Treasurer’s Report
Secretary/Treasurer’s Report
Greetings Leech Lake Band members! I am honored to provide you with this update regarding the activities undertaken in the month of July 2024, including a financial report through the first three quarters of FY24.
Tribal Government Quarter 3 Financial Report
This report covers the first three quarters of FY24, which ran from July 1, 2023 to March 31, 2024, covering nine months of the total fiscal year.
Through the third quarter of FY 24, the total revenue for the General Fund was $21,474,721, reflecting a decrease of $1,647,737 over the same period last year, for a year over year decrease of 7.1%. Total General Fund expenditures through the third quarter were $22,400,420, reflecting a $1,920,170 decrease over the same period last year, for a year over year decrease in General Fund expenditures of 7.9%.
Through the third quarter of FY 24, the total revenue for the Special Revenue Fund was $60,300,888, reflecting a decrease of $7,671,377 over the same period last year, for a year over year decrease of 11.3%. Total Special Revenue Fund expenditures through the third quarter were $64,019,654, reflecting a decrease of $2,331,463 over the same period last year, for a year over year decrease in Special Revenue expenditures of 3.5%.
Through the third quarter of FY 24, the total revenue for the Indirect Cost Pool was $9,310,532, reflecting a decrease of $683,214, for a year over year decrease of 6.8% for the same period last year. Total Indirect Cost Pool expenditures for the same period were $11,101,103, reflecting an increase of $459,666 over the same period last year, for a year over year increase of 4.3% in Indirect Cost Pool expenditures.
Regarding the FY 24 budget performance through the third quarter of FY 24, 57.31% of General Fund Direct Funding was expended through March 31, 2023, reflecting $19,412,440 in actual General Fund Direct Funding expenditures. Through the same period, Special Revenue Direct Funding was 72.36% of total FY 24 spending, reflecting $2,136,500 in actual Special Revenue Direct Funding expenditures through the first quarter of FY 24.
Enterprise Quarter 3 Report
On our enterprise side, through the third quarter of FY24, Net Revenue from all units increased by 5.4% over last year, while the Total Cost of Goods increased by 9.3% over last year. Total Payroll Expense decreased slightly by 1.0% over last year. Total Operating Expenses increased by 2.2% over last year. The total Net Profit from all units of enterprise activity through the third quarter of FY 24 increased by 78.9% over the same period last year.
We are very glad to continue to see overall Net Profit continue to increase by such substantial margins.
General Finance and Audit Update
July 1, 2024 started Fiscal Year 2025, which runs from July 1, 2024 to June 30, 2025. We started the Fiscal Year with a duly approved budget, which was adopted by the RBC at the April 2024 quarterly meeting in accordance with the Budget Ordinance. Preliminary estimates show we completed Fiscal Year 2024 on budget.
Work is also continuing on our annual audits. On July 25, 2024, I met with our external auditors from REDW to discuss ongoing matters and estimates on getting our audits caught up. They are working on Fiscal Year 2022 (which ran from July 1, 2021 to June 30, 2022), and hope to have that completed within the next several weeks. Work will then commence on FY23 audit. If this audit is completed by March 2025, we will be caught up with our external audits and reporting.
We are working diligently to reduce and even eliminate audit findings with internal updates to our processes, a newly updated purchasing policy, completing property/asset inventories correctly, and updating our software and reporting systems. As always, more work needs to be done and there is room for improvement. But I am very pleased with the progress our finance team has made in the last two years.
MCT Update
On July 8, 2024, the Minnesota Chippewa Tribe held a regular Tribal Executive Committee meeting in Bois Forte. At the meeting, the six RBC Chairs were sworn into office, including Leech Lake Chairman Faron Jackson for his third term and I was elected Treasurer for the Minnesota Chippewa Tribe. At the meeting, a number of matters were discussed, including a proposal to eliminate the requirement for a secretarial election in the Constitutional Amendment process, as well as discussion on updating our enrollment criteria.
On July 12, 2024, the Executive Director resigned from her position. The job is posted and the Tribal Executive Committee is going through the process to fill the position.
US Senate Steering Committee Update
On July 10, 2024, I was invited to the United State Senate Democratic Steering Committee to discuss tribal sovereignty with various U.S. Senators. Several Senators were in the room, including Senators Tina Smith and Amy Klobuchar. Brian Schatz of Hawaii, who chairs the Senate Committee on Indian Affairs was present as was Senator Richard Durbin, Senate Majority Whip and Chair of the Senate Judiciary Committee. The opportunity was a great time to meet with these senators face-to-face and discuss in detail the importance of tribal sovereignty, treaty rights and current legislative priorities.
Cannabis Update
On July 15, 2024, I met with the Cannabis Regulatory Commission to discuss their current needs and ongoing priorities. They are the body that regulates the cannabis industry on the Reservation. We discussed the current status of the regulations, possible updates to the Leech Lake Cannabis Regulatory Act, funding priorities and licensure processes. The meeting overall went very well.
On July 21, 2024, the Minneapolis Star Tribune published an article regarding the Leech Lake Cannabis Company’s Sweetest Grass dispensary that contained untrue information; namely that produce sold in the dispensary was illegally transported over state lines and was not in compliance with Minnesota statutes. We had an RBC briefing on the matter on July 24, 2024, with members of the Cannabis Company and the Regulatory Commission to discuss the concerns. It is clear that this article contained false information and we are working to ensure that accurate information is reported going forward.
The Cannabis Company is complying with applicable federal and tribal laws and regulations (the State has no jurisdiction to regulate our cannabis industry on Leech Lake), and we will continue to ensure that remains the case. The cannabis industry is a new area for Leech Lake, but our overarching goal is to develop a safe and transparent industry that benefits the people of Leech Lake.
Land Restoration Ceremony Update
On July 17, 2024, Leech Lake leaders welcomed many visitors and band members to celebrate the return of 11,700 acres of land from the Chippewa National Forest. This ceremony recognized a milestone in the restoration of our land base. We will continue to work diligently with our federal and state partners to get back our land within our Reservation.
Tiwahe Initiative Update
On July 29, 2024, I met with the finance team and Crystal Keung, a consultant working with tribes and the federal government on the Tiwahe Initiative. For Fiscal Year 2025, Leech Lake was chosen as one of a handful of tribes to join this initiative, which includes the first increase to our self-governance funding base in decades.
The Initiative allows us to structure the services we provide to our community in the way that will best meet our needs. The innovative approach stresses grassroots involvement in helping to address the issues facing our families. Overall, I am very excited for this Initiative and the potential it brings to the table. There are matters to continue to iron out with regard to funding, but we are working diligently to get this accomplished and begin to implement this Initiative for our families.
State Legislators Visit
On July 30, 2024, Representative Heather Keeler (DFL-Moorhead), Representative Athena Hollis (DFL-St. Paul), and Representative Robert Bierman (DFL-Apple Valley) visited Leech Lake and met with various tribal government departments. After meeting with RBC members for breakfast and discussions on priorities, the legislators toured the Justice Center, the Ahnj Be Mah Diz Recovery Center, the Bug O Nay Ge Shig School, the Bena Community Center (for a discussion of School Trust Land located on the Reservation), the St. Regis Superfund site, and the Sweetest Grass Dispensary.
The visit provided a great opportunity to showcase the great work being done by our tribal government employees, the progress we are making in some programs, and the need for additional resources to combat issues facing our community.
This concludes my report for July 2024. If you have any questions or concerns, please reach out to me at any time. It is a pleasure and an honor to serve each of you! Chi-Miigwech.
Leonard “Lenny” Fineday
Secretary-Treasurer