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Treasurer’s Report
Finance Board is an extension of Tribal Council tasked with overseeing the Band’s financial resources to ensure efficient and responsible utilization.
The current Finance Board members took office in August 2021. The Finance Board consists of the following Board Members: Chairman John Morseau; Vice-Chairman Steve Winchester; Secretary Alex Wesaw; Member Brandon Rapp; and Member Sam Morseau. Throughout 2021, Finance Board achieved great success by increasing the Band’s cash position and investment accounts to the largest balances since the Band’s federal reaffirmation. The Band possesses sufficient savings to operate government services for several months in case of a financial emergency. In 2022, Finance Board will continue to work towards building a selfsufficient financial future through prudent saving and investment. In 2021, Finance Board achieved an unprecedented level of saving and investment for the Band. The Band increased its unrestricted cash and investment balances by over $44 million in 2021 to end the year with unrestricted cash and investment funds of $76.5 million. The 2021 increase in unrestricted funds is more than double from $32.1 million at then end of 2020 and almost triple the $26.7 million at the end of 2019. The unrestricted cash balances do not include the Burial Fund nor the 2028 Debt Reserve Fund as these funds should be considered restricted since those funds serve a specific purpose. The increased cash and investments were the result of continued budget reductions from pre-pandemic levels, increases in RAP payments to the Band from the casino, and good investment performance for the year.
shonya béméndêk ė zhëwébêk
TREASURER HAPPENINGS
Finance Board’s goal for the Band’s unrestricted cash and investments is $100 million by the end of 2022. Substantial unrestricted cash and investment reserves ensure the Band will be prepared for future financial emergencies such as the recent pandemic. The Band can also use the annual investment income to fund government programs and services once the accounts grow to produce the required annual returns. Finance Board will continue to monitor the investment accounts, set goals for funding levels, and explore investment opportunities to achieve diversified returns. In addition to increasing the Band’s unrestricted cash and investment funds, Finance Board achieved several milestones concerning the Band’s restricted investment funds. The most important of which was the funding of the Burial Fund to a sustainably self-funding level. Finance Board contributed $11 million to the Burial Fund during 2021 for a total balance of approximately $13.6 million at the end of the year. The Burial Fund should generate sustainable average annual returns of at least $500,000. At $500,000, the Band will be able to fund the annual Burial Program expenses indefinitely under current projections solely from annual investment returns. Finance Board also fully funded the 2028 Debt Reserve Fund by contributing $1.82 million in 2022 for an ending balance of approximately $11.2 million for the year. The $11.2 million balance should grow at rate that easily exceeds the $13.2 million debt balloon payment due in 2028. The balloon payment concerns the Band’s debt to finance the Justice Center and Pokagon Health Service expansion. As a result of the contributions made to the fund in 2022, the Band no longer needs to contribute to the Debt Retirement fund to fulfil the balloon payment. Finance Board will continue to monitor through 2022 and assess the financial prudence of repaying the entire loan early.
Beaded Barrette, Linda Yazel
The the following chart provides the Band’s balances as of December 31, 2021. Pokagon Government Cash and Investment Summary
GOVERNMENT FUND $27,206,288
Restricted Cash
GOVERNMENT AND BUILDING SUPPORT FUND BUSINESS INTERRUPTION FUND $19,943,776
$29,343,762
ECONOMIC DEVELOPMENT FUND INDIAN HEALTH SERVICES
BIA 638 FUND
BIA ROADS FUND
HUD FUND
TREASURY CARES FUND $21,779,970
$21,540,087
$4,224,281
$2,263,493
$1,200,241
$19,743,530 Restricted Investment Accounts
BURIAL FUND 2028 DEBT RETIREMENT FUND ECONOMIC DEVELOPMENT FUND
MINORS TRUST $13,654,375
$11,239,393
$1,584,067
$308,523,071
TREASURY ARPA FUND $66,834,498
Wooden Spoon, Artist Unknown
As for staffing challenges, the Finance Board began the year by dealing with the resignation of Thomas Elder as the Director of Finance. The resignation placed additional duties on the Finance Board to oversee the operation of the Finance Department. Finance Board is very appreciative of the dedicated team members within the Finance Department who kept up with the Band’s financial responsibilities in the absence of a director. The Band hired the current Director of Accounting, Michael Dixon, during the summer and Mr. Dixon has worked diligently to fill vacant staff positions within the department and catch up the Band’s accounting. Finance Board looks forward to the continued success of Mr. Dixon and the Finance Department in 2022. Going into 2022, Finance Board will focus on reforming the Band’s financial and investment policies. Many of the Band’s financial policies need revision to address the current state of operations and to clarify uncertainty. Finance Board will focus on reforming the Band’s private equity investments to address the expectation that public equity and bond returns over the next decade will likely not replicate previous returns due to overvaluations and anticipated interest rate increases which will lower bond yields. As Chairman of the Finance Board, I finish by saying I am honored to be entrusted with the great responsibilities of Treasurer. I look forward to working with my fellow Finance Board members and I am fortunate that the Band, especially the Finance Department, has outstanding employees dedicated to serving our Pokagon Citizens. Migwetth,
