OPA

The Cherokee Indian Tribe of Oklahoma and the Suquamish Tribe of Washington are the first recipients of grants awarded by the Bureau of Indian Affairs under a new economic development initiative started this year, Interior Assistant Secretary Ken Smith announced today. The initiative provides federal funding as seed money to attract private sector investments on reservations.

The Cherokees will receive $125,000 to expand their existing horticulture operation by enlarging the retail garden center, the greenhouse and the nursery. The total project cost will be $500,000 with the tribe making an in-kind contribution of $125,000 and a local bank lending the balance of $250,000.

The Suquamish will receive $26,500 for an $106,000 tourism project to complete an exhibition facility that would attract visitors and develop a market for cultural products. The balance of the funding would consist of a grant of $5,100 from a foundation and a bank loan of $74,400. The principal attraction at the center will be "The Eyes of Chief Seattle" which has been on exhibit at the Seattle Museum and at Nantes, France. The reservation is within 25 miles of the city of Seattle.

Eligibility criteria for the grants require that at least 75 percent of the funding come from non-federal sources; that a business plan shows a reasonable potential for a profitable, self-sustaining business; and that the tribe has a stable government and has separated project management from tribal politics.

The 1983 appropriation for the Bureau of Indian Affairs provided $5 million for this initiative.

Applications from nine other tribes for grants are now being reviewed and at least ten other applications are expected to be submitted before September 30.

The maximum grant for anyone project is $500,000 and the minimum is $25,000.

The Reagan Administration has announced support for a bill to transfer title to 25,000 acres of land within Caja del Rio National Forest to the Indians of Cochiti Pueblo in New Mexico Interior Assistant Secretary Ken Smith, testifying before the House Interior and Insular Affairs Committee July 26, said the land had been fraudulently taken from the Pueblo in the early 19th century and failure to return it to its rightful owners would be a grave injustice.

The land has "considerable symbolic, religious and economic significance to the Pueblo," Smith said.

Smith said that Interior Secretary James Watt strongly supported the bill, H.R. 3259. He commended Watt for working closely with the Administration to initiate return of the land to the Cochiti Pueblo.

The Cochiti's claim to the land is based on a 1744 purchase of the land from a Spanish grantee. The Indians were deprived of the 25,000-acre tract by a fraudulent conveyance in 1805. A Spanish colonial court subsequently declared this 1805 conveyance void -- but that court order was lost and the document not uncovered until 1979. U.S. courts, in the meantime, had denied the Cochiti claim, foreclosing the possibility of correcting the title through the court system.

Assistant Secretary Smith, in a May 13 briefing paper to Secretary Watt, said: "It is clear that the loss of this land in the past has been a grave injustice to the Pueblo de Cochiti. By the 1848 Treaty of Guadalupe Hidalgo, the United States was obligated to respect and protect vested Indian property rights. Had the recently-discovered Spanish Colonial Court decree been available at the time the question of the Pueblo's title was pending in courts of the United States, the Pueblo's title to the Santa Cruz Spring Tract would almost certainly have been confirmed."

Smith, in his testimony pointed out that the Cochiti claim is unique. "It represents the only known case of an Indian tribe pressing for land restoration on the basis of a paper title acquired by purchase."

The legislation expressly limits future use of the land to its present uses and specifically grants access through the land to existing recreational areas.

Interior Assistant Secretary Kenneth. L. Smith announced today that Management Concepts, Incorporated (MCI) of Falls Church, Virginia has been awarded a $5 12,000 contract for a detailed study of the results of the Alaska Native Claims Settlement Act of 1971 (ANCSA).

The Secretary of the Interior, under ANCSA, must report to Congress in 1985 on actions taken to implement the act and the status of Alaska Natives.

The Secretary's report could have a major impact on future Congressional actions affecting the Alaska Natives, including possible modifications of the ANCSA provisions. The study to be done by MCI will provide the background information necessary for a thorough and complete report, Smith said. In addition, he said, the Secretary and his staff have established good working relationships with the Native leadership and will have developed considerable additional information from many Alaskan sources. The act created 13 Native regional corporations and a larger number of village and other corporations to receive approximately $1 billion dollars and 40 million acres of land in full settlement of the Alaska Natives' aboriginal claims in the state.

All restrictions on the sale or alienation of properties received under ANCSA will expire in 1991. The study to be done by Management Concepts Incorporated must include comparisons of the status of Alaska Natives before and after the implementation of ANCSA. The status of the Native corporations will be reported, including an evaluation of their economic stability and viability, their management capabilities and predictions of future developments. The contract with MCI requires that problems and issues related to ANCSA be identified and recommendations for solutions provided. The contract requires MCI to distribute a draft report in May 1984 to all affected Native groups, the state government and certain other agencies and organizations for review and comment The final report is due June 30, 1984. MCI was one of twelve bidders for the contract. The company has done more than 25 research and education projects in Alaska since 1979. Work with American. Indian or Alaska Native groups constitutes about 40 percent of the firm's activities.

Ken Smith, Interior Assistant Secretary for Indian Affairs, today announced a "major initiative to bring a high level of fiscal accountability to both Indian tribes and the Bureau of Indian Affairs."

In a letter to tribal leaders across the nation Smith noted that he has received more than 150 audit reports from the Interior Inspector General in the past two years which have identified weaknesses or abuses in tribal or local BIA financial management procedures.

"Too often in the past," Smith said, "problems in either the Bureau or tribal administrations have been identified and then, apparently, ignored. I have advised BIA officials that I will not tolerate such non-responses."

Smith said waste or wrongful use of federal funds in any "Bureau or tribally-operated program has an impact on all Indian programs. Pressure is created to cut back or halt funding across the board for all Indian programs."

In his letter to tribal leaders, Smith identified the kinds of assistance provided by the BIA to help tribal governments develop effective administrative systems and avoid the kinds of problems identified in the past by the Inspector General. Included were self-evaluation process for the tribes; a project to help small tribes develop basic management capabilities; and a program to give tribes on-site technical assistance for their accounting systems, payrolls and other administrative functions.

Smith emphasized the need for a good annual audit for every tribe. "I know of no management tool that is more useful or beneficial. "He said the audits would help tribes to identify problems and develop solutions for them He added that they would be useful also in dealing with Congress and the Office of Management and Budget. The Inspector General's office, Smith said, planned to expend 15 staff years in FY 1984 to audit tribes with indicated problems.

Dear Tribal Leader:

In the past two years, approximately 150 audit reports from the Inspector General's Office on Indian programs have come to my office for our attention and response. Some of these audits dealt with BIA operations and programs; others were about tribal administration of federal funds. Some of the audits we've done as part of a regular cycle of review; some were requested by BIA or tribal officials and others were initiated because of obvious problems in the program operations. The same kind of scrutiny is given to the programs of other Bureaus and Agencies within Interior and throughout the government.

A few of the audits reported that Indian programs were going well; most of them, however, identified weaknesses or abuses and called for corrective actions.

The Inspector General's Office provides a valuable service to the Bureau and to Indian tribes in making these audits. Clearly, however, the value of the audits is lost if no corrective action or response occurs. Too often in the past, problems in either Bureau or tribal administrations have been identified and then, apparently, ignored. I have advised BIA officials that I will not tolerate such non-responses.

My principal concern in this letter to you today is to make you aware of the work of the Inspector General in helping us to eliminate abuses and misuses of Federal funds in Indian programs and the need for all of us to actively cooperate in that work.

You must be aware that publicity about the waste or wrongful use of Indian funds in any Bureau or tribally-operated program has an impact on all Indian programs. Pressure is created to cut back or halt funding across the board for all Indian programs.

Just this week, I received a newspaper clipping of an editorial in a midwest newspaper complaining about the lack of accountability • for federal Indian funds. The editorial said:

"The U.S. government, in typical fashion, throws chunks of money their way, but does a lousy job of keeping track of that money and whether it is truly helping the Indians". The editorial cited a General Accounting Office report that charged BIA with allowing tribes to use federal funds irresponsibly. The editorial concluded: ''It is perhaps admirable for our national leaders to have nice sentiments about the Indians. But, to truly help the Indian people, we should insist that our government untangle its administration of Indian funding''.

However right or wrong an editorial or news report about the abuse of federal funds for Indian programs may be, such publicity hurts Indian people.

The Inspector General's reports are designed to help us, but they can hurt us if we do not act on their recommendations.

We know there are improvements that need to be made in programs directly operated by BIA. We are working on these.

For example, the Inspector General has committed five staff years of effort to review the Individual Indian Money (IIM) Account System at three area offices and t the central office. That effort has assisted us as we proceed with improvements underway in IIM management.

Another identified area of concentration for FY 1984 is BIA's procurement function. We want to insure that the dollars available for Indian programs are more effectively utilized. The Inspector General has completed audits at two area offices and questionable practices were identified. Two more audits are now in process and nine staff years of resources are committed to review nine additional locations.

To assist tribal governments to develop effective administrative systems, and thus avoid the kinds of problems identified in the past by the Inspector General, we have initiated several actions.

1) The BIA has helped 220 tribes to complete self-evaluations which identified tribal administrative needs. Those areas in which tribes indicated the most need for assistance were: planning and control; monitoring and evaluation; and property management.

2) Through our Tribal Administrative and Accounting Services (TAAS) division, the BIA has been providing on-site technical assistance to tribes in selected situations. This has included analyzing accounting systems, redesigning payroll systems, reviewing school imprest funds, and automated accounting systems.

3) We established the Small Tribe Core Management Program to assist the smaller tribes develop fundamental management capabilities, including needed accountability functions. These programs will continue in 1984, with a planned expansion of the range of expertise available through TAAS. We will also be: a) developing models of various administrative systems; b) exploring the feasibility of using private sector service organizations to provide technical assistance; and c) exploring with groups of small tribes the feasibility of receiving their accounting service from a single accounting firm.

Another matter of concern has been the spiraling administrative costs incurred by tribes in their operation of programs under contracts. According to an analysis completed just recently by the Inspector General, administrative costs for 81 tribes included in the study increased by 47 percent over the past five years while direct program costs increased by only 2.4 percent. We realize there are many reasons for the disparity in these figures -- and that many of the factors are uncontrollable. We believe that some steps can be taken to keep this trend more under control.

We also realize that almost all federal regulations are written for relatively large communities of people -- states, counties, cities. Large tribes can usually cope with these regulations, but they create problems for small tribes. The BIA will review its regulations and seek ways to provide relief for smaller tribes.

Let me emphasize the importance and value of a good, solid annual audit. I know of no management tool that is more useful or beneficial. You realize, I know, that you cannot intelligently manage tribal assets and programs if you do not have accurate, informative records showing how you use your money. You must also be aware that the availability of federal funds in the future will be substantially affected by the ability of tribes to demonstrate that funds were properly used. Every tribe should have an annual audit on its total operation -- both tribal and federal -- by a certified public accountant. Many of you do. These audits help you to identify problems and to develop solutions for them. They will also help to improve the atmosphere in dealing with the Congress, Office of Management and Budget and other Federal agencies. It is also the first thing that any financial institution will ask you for when you talk about financing for your tribal enterprises.

The Inspector General has committed 15 staff years in FY 1984 to audit tribes with indicated problems. The tribes involved in these audits should be committed to do what is necessary to correct problems or deficiencies identified. The Bureau will give you all assistance possible to help you do this. All tribes should similarly use the audits and the contract monitoring activities of the Bureau as means for improving management to more effectively use both tribal and federal funds.

We are continuing our efforts to improve the management and administration of BIA programs -- and we realize there is still much to be accomplished. We are determined that needed changes will be made and we will welcome any assistance offered by the tribes and the Inspector General. What all of this adds up to is that BIA and the tribes have weaknesses.

We are all in this together; let's address them together. All programs -- federal and tribal -- suffer when there is a lack of accountability. The trend throughout the Federal Government in all programs is to assure that all funds are properly accounted for, that funds are spent for the purposes appropriated, and that waste and abuse are avoided. The requirements of this administration for accountability are going to be more stringent for all Federal programs, and we must be prepared to meet these standards.

I look forward to working with you in the task we have ahead of us. I know together we can do it.

Sincerely,

Interior Assistant Secretary Ken Smith has approved an economic development grant of $358,666 to a Navajo tribal enterprise for the expansion of a potato production and processing business.

The grant is part of a Bureau of Indian Affairs program to provide "seed money" for the development of profit-making enterprises on Indian reservations. At least 75 percent of the project funds must come from non-federal sources.

The project of the Navajo Agricultural Products Industry (NAPI) will cost approximately $1.5 million. It will provide additional potato storage facilities, a fresh-pack facility and related equipment. Financing for the project, in addition to the grant, will come from a $700,000 bank loan and the contribution of equipment by NAPI.

The fresh-pack line will allow NAPI to sort and package potatoes into sizes and grades for specific markets to realize a maximum financial return. Management anticipates that the fresh-pack operations will provide 25-35 additional job opportunities on the reservation.

Grants to eight other tribes have been approved by the Assistant Secretary and other applications are being reviewed. The program , initiated this year, received an appropriation of $5 million for 1983.

Interior's Assistant Secretary for Indian Affairs Ken Smith has assigned Charles Hughes the Bureau of Indian Affair's top financial official, to full time implementation of reforms and improvements which were initiated in the past year in the BIA's management of finances and trust funds

“The scope depth and importance of the efforts and their stage of development now require that these projects receive concentrated attention from all affected Bureau employees including my own office” Smith said.

In a memo to BIA central office directors and area directors, Smith said the new projects that Hughes will be working on include:

* Redesigning the finance system on an accelerated scheduled;

* Trust fund management, including a review of investments and reconciliation of accounts;

* Voucher processing, streamlining existing procedures and implementing a new automatic system;

* Debt collection and correction of accounts receivable records;

* Implementation in 1984, one year ahead of schedule, of a system for planning and reporting program accomplishments; and

* Achieving the Office of Personnel Management’s 30-day processing time for retirement papers

Smith said active participation by all levels of BIA would be required because the efforts involve operations and activities under the control of line officers throughout the Bureau. “The Deputy Assistant Secretary . . . and I will be apprised regularly of progress and problems in each of the initiatives.” he added.

Smith had previously informed Indian tribal leaders, in a July 26 letter, that the tribes needed “to develop effective administrative systems” for the management of both tribal and federal funds. He said that inadequate accountability, the abuse or misuse of funds and other deficiencies identified by the Interior Inspector General created pressures to cut back funding for Indian programs.

Smith told the tribal leaders that he had initiated actions to correct problems within the BIA.

Some other management efforts in 1984, Smith said, will include a review of the method used for distributing the BIA funds and a study of alternatives; completion of a plan for assessing national charges against operating offices, and development for the Office of Management and Budget and the Department of a number of special studies related to the 1985 budget.

Kenneth L. Payton, former deputy director of the Bureau of Indian Affairs' Albuquerque area office, received the Distinguished Service Award of the Department of the Interior today in a ceremony in Washington, D.C.

Interior Secretary James Watt made the presentation to Payton "in recognition of 32 years of outstanding leadership and superior performance in service to the Indian people and the Bureau of Indian Affairs."

Payton, a Cherokee Indian born in Picher, Oklahoma, retired in 1982, after a year in Washington, D.C. serving as the acting deputy assistant secretary and the top official in charge of BIA.

A graduate of Oklahoma State University, Payton joined the Bureau as a soil scientist in 1950. He spent most of his career working with the tribes of New Mexico. He was the superintendent of the Mescalero Apache agency from 1961 till 1966 when he was appointed superintendent of the huge United Pueblos agency.

He was elected by his peers to be the first chairman of BIA's National Superintendents' Committee.

Interior Secretary James Watt cited the Cherokee Historical Association of North Carolina for service to the community at the Interior Department's 49th Awards Convocation in Washington D.C., today.

The Public Service Award of the Department was given to Frank H. Brown, chairman of the Cherokee Historical Association and John A. Crowe, principal chief of the Eastern Band of Cherokee Indians.

The award was for "activities that have perpetuated the history and culture of the Cherokee Indians of North Carolina, strengthened the economy of the Cherokee Indian Reservation and all of western North Carolina, and promoted an appreciation for the natural resource treasures of the Great Smoky Mountains."

The association, started in the late 1940's, has produced an outdoor, historical drama, Unto These Hills, which has been seen by some four million people since its first performance in 1950.

The Drama tells the story of the Cherokee hero, Tsali, who gave his life so that a remnant group of Cherokees could remain in their homeland the Great Smoky Mountains, when most of the Indians from the Southeast were being removed to Oklahoma.

The association also collected Cherokee artifacts and constructed in 1976 a modern museum in which to display them.

The Interior citation notes that the association “Has pulled from a dark chapter in American History worthwhile lessons in understanding and cooperation to bring about its unique accomplishments in local and regional community enterprise.

Leaders of the Ak-Chin Tribe in Arizona and the Department of Interior have signed an "agreement in principle” for the revision of legislation designed to assure the Tribe of a permanent water supply, provided in an economically efficient manner, according to William P. Horn , Interior Deputy Under Secretary .

Horn said that revisions in the 1978 Act, which detailed the means to provide the Ak-Chin reservation with rights to adequate water, are necessary because "problems which have developed in the interim would result in significantly increased costs and reduce the possibility of providing a sufficient and permanent water supply."

The settlement follows more than a year of negotiations with Tribal leaders, Horn said.

The agreement in principle provides:

A permanent water supply for Ak-Chin in 1988

The means of securing interim water until 1988.

A reduction cost to the United States Government

Interior Secretary James Watt and the Tribe will be seeking support from both Congress and Arizona officials to have the agreement codified into new legislation, Horn said.

The first meeting of the Presidential Commission on Indian Reservation Economies will be held 1n Washington, D. C. October 19-20, Co- Chairmen Robert Robertson and Ross Swimmer announce d today.

President Reagan established the Commission in January “to advise the President on what actions should be taken to develop a stronger private sector on federally recognized Indian reservations, lessen tribal dependence on federal monies and program s, and re duce the stifling federal presence in Indian affairs.” The President appointed Robertson, Vice President of the Occidental International Corporation in Washington, D. C., and Swimmer, Chief of the Cherokee Nation of Oklahoma and a bank president in Tahlequah, Oklahoma as Co-Chairmen.

The nine members of the Commission, five of them Indians, will be sworn in October 19 at 10 a.m. at the beginning of the meeting in the Columbia Ball Room of the Capitol Holiday Inn, at 6th and C Streets, S. W. The agenda will include a review of studies and information already available, discussion of a work plan for the next few months and initial planning for a series of hearings in the field. The Commission is expected to complete its work by November 30, 1984. Roy Sampsel, former Deputy Assistant Secretary for Indian affairs in the Department of the Interior, has been appointed Executive Director for the Commission.

For additional information call Roy Sampsel at 202/343-3107.