Application of Antideficiency Act to Overinvestment of Indian Trust Funds

According to an audit report entitled "Major Improvements Needed in the Bureau of Indian Affairs" Accounting System," GAO/AFMD-82-71, September 8, 1982, the Bureau, because of poor accounting practices, frequently overestimates the actual amount of Indian trust fund assets available for investment at any given time. Investment decisions based on such unreliable information often result in trust fund investments that actually exceed available trust assets, this practice is possible, we understand, because investments are made with checks drawn on the United States Treasury, which makes funds available based upon cash reserve estimates by the Bureau. Overinvestments have therefore been covered by other funds of the Treasury.