CHILOQUIN, Ore. – The Klamath Tribal Council has declared a 120-day Financial State of Emergency for the Klamath Tribes Administration, taking immediate action to strengthen financial management and reporting and move the Tribes toward a modern financial structure.
“We are committed to keeping our people informed and taking the steps necessary to strengthen our financial systems,” Tribal Chairman William E. Ray Jr. said. “Our focus is on building stronger systems, supporting our employees and making sure the Tribes have the financial structure needed to serve our people.”
The Tribal Council adopted Resolution No. 2026-065 on Sept. 3, 2026, by an 8-0 vote, with one abstention. A Council review identified outstanding federal and state reporting, federal funds awaiting drawdown, and financial processes that needed updating. In some cases, the Tribes temporarily covered program costs from tribal accounts while recovering federal funds.
The emergency does not reflect a lack of resources. It is designed to strengthen financial controls, complete outstanding reporting and drawdowns, and protect essential tribal operations as the Tribes modernize their financial systems. “I fully understand the concerns about the current financial situation,” Ray said. “Based on my 42 years of federal employment and experience managing federal funds, I have faith that these actions will help move the Tribes toward a modern financial structure.”
The resolution prioritizes payroll, employee benefits, insurance and federal reporting. Chief Executive Officer Duane Sherman Sr. is leading the Administration’s work to complete outstanding financial obligations and reporting. The Tribes will also use outside financial expertise, including transferring knowledge and skills to tribal staff.
A new 2026 Financial Management Manual will establish written procedures for grants, drawdowns, reporting and approvals. The Tribal Council will receive weekly written status reports throughout the emergency period.
“This is a problem of systems, and we are fixing the systems,” Tribal Treasurer Brandi Hatcher said. “Our employees who have carried this weight deserve tools that work. Our members deserve an accurate accounting of every dollar entrusted to the Tribes.”
The Tribal Council will continue reviewing financial operations throughout the 120-day emergency period and report to the General Council at its next scheduled meeting, as required by the Klamath Tribes Constitution and governing documents.
