Financial Management: Indian Trust Fund Accounts Cannot Be Fully Reconciled

GAO discussed the Bureau of Indian Affairs' (BIA) efforts to reconcile Indian trust fund accounts and make needed management improvements to ensure the accounts' future accuracy. GAO noted that: (1) BIA has spent 4 years and $16 million to reconcile Indian trust fund accounts, which it has not fully reconciled; (2) BIA is requesting $6.8 million for fiscal year 1996 to continue the detailed reconciliation; (3) even with additional funding, BIA will not be able to provide reasonable assurance that the account balances are accurate due to missing lease and accounting records, the inability to verify that all earned revenues were collected and posted and disbursed correctly, and the lack of accurate, up-to-date ownership information; (4) BIA has made some improvements in its management of the trust funds, such as acquiring better accounting systems and developing written policies and procedures; and (5) further actions are needed to ensure accurate lease and ownership information, which is the basis for posting most trust fund receipts and disbursements.