Inappropriate Use of an Indian Trust Fund To Subsidize BIA Activities
FGMSD-80-78
Published: Oct 07, 1980. Publicly Released: Oct 07, 1980.
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Highlights
The Indian Moneys, Proceeds of Labor Trust Fund is supposed to finance the Bureau of Indian Affairs' (BIA) operation of Indian schools and agencies which should generate the trust fund's revenue. However, BIA uses the fund to support other administrative activities that are funded directly by appropriations. Contrary to law, trust fund revenue is generated from sources unrelated to authorized trust fund activities.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should repeal legislation which authorizes the trust fund known as "Indian Moneys, Proceeds of Labor" and then, in consultation with BIA, it should transfer moneys to appropriate sources such as other Indian trust funds, or to the Treasury as miscellaneous receipts. |
Closed – Implemented
|
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Interior | The Secretary of the Interior should make certain the BIA revised accounting system is submitted to GAO for approval and include adequate fund controls to keep its organizational costs within amounts budgeted. |
Closed – Not Implemented
BIA has not revised its accounting system as promised. GAO has made essentially the same recommendation in a September 8, 1982 report (AFMD-82-71).
|
| Department of the Interior | The Secretary of the Interior should require BIA to follow applicable laws and regulations to manage the types of revenue that have been placed in the trust fund and make sure the amounts of revenues from such sources are fully disclosed to Congress. |
Closed – Not Implemented
The law eliminating the fund specified how the money in the fund should be divided among other appropriations. BIA currently discloses amounts in the other funds to Congress.
|
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Topics
Accounting systemsAdministrative costsAppropriationsFederal facilitiesFinancial managementLeasesNative American educationNative AmericansTrust fundsWater transportation