Asset Reform efforts and the Secretary's commitment to fund and provide for significant Indian trust asset reform initiatives by the year 2000.

The Department's current trust management systems do not readily allow for measurement of outcome-related performance goals as systems are decentralized, and practices vary from location to location. The Department's strategy for moving towards results based trust-management operations is, in 1999 and 2000, to replace trust asset systems, cleanup account data, and eliminate trust processing backlogs. In 2001, outcome-related performance measures will be emphasized for ongoing operations, and baseline measures will be developed. In 2002 and beyond, specific performance goals will be set for improving baseline operations.

In addition to the annual performance goals outlined in this annual performance plan, the annual performance plan included in the 2000 Congressional Justification will integrate additional annual goals identified in the Secretary's High Level Implementation Plan, including specific goals for eliminating probate backlogs, OST and BIA data cleanup, appraisal backlogs, and others.

Mission goal 3 will be further addressed when initial training sessions are completed and measures of customer satisfaction are defined.

II.1.3 Related Budget Accounts, Budget Activities, Sub activities. Funding needed to accomplish the three mission goals are provided in two OST Sub activities:

(1) Executive Direction; and (2) Program Operations, Support, and Improvements.

II.1.4 Proposed Legislation. The Administration will work with Congress to develop two legislative proposals that comprehensively address many of the decades-old Indian trust funds problems.

Legislative Proposal to Address Fractionated Ownership. The first of these efforts addresses one of the root causes plaguing trust management: fractionation of Indian lands. The Administration submitted its legislative proposal to address fractionation to the Congress in June 1997. The Department's legislative proposal would (1) consolidate existing fractional interests through an acquisition program which conveys the interests to Tribes with "liens" on future income generated on the property until the purchase price is recouped; and (2) prevent future fractionation through enactment of inheritance limitations.

The Administration's bill was introduced in the House on 10/24/97 as H.R. 2743. The House Resources Committee held a hearing on the Department's legislation on July 29, 1998. Although the bill was not reported out of Committee, $5 million was provided for an Indian Land Consolidation Pilot that will begin in early 1999, and $10 million is included in FY 2000 Budget. The Department will work with Congress in an effort to develop a consensus bill.

Settling the Past. The second effort addresses settling claims relating to past management of trust funds. Efforts are proceeding on two tracks: legislative settlement for tribal accounts and litigation for individual accounts.

Tribal.

In November 1997, the Department submitted its final report detailing its recommendations on settling disputes of tribal trust fund accounts. The recommendations encompassed in the report are the culmination of a five-year, $21 million effort to reconcile tribal trust accounts as mandated by Congressional directives beginning in 1987, and reconfirmed in the American Indian Trust Fund Management Reform Act of 1994. The Department recommended a legislative approach that utilizes informal dispute resolution mechanisms. The Administration forwarded legislation implementing the Department's recommendations on April 23, 1998.

The Administration's bill was introduced in the House as H.R. 3782 on April 30, 1998. A Joint Senate Indian Affairs Committee and House Resources Committee hearing was held on July 22, 1998. The bill was not reported out of Committee. The Department will work with Congress to enact similar legislation in the 106th Congress.

IIM Litigation. In June 1996 a lawsuit entitled Elouise Pepion Cobell et al. v. Bruce Babbitt et al. was filed on behalf of approximately 300,000 holders of Individual Indian Money (IIM)

accounts.

Plaintiffs seek retrospective ("correcting the accounts") and prospective relief (“fixing the system") involving the trust management of IIM accounts. Plaintiffs' claims for "prospective" and "retrospective" relief were bifurcated. The March 1999 trial date for the prospective portions of the case was recently vacated by the court. No trial date has been set for the retrospective portion of the case.

II.1.5 Impact of FY 2000 Budget Changes. The total FY 2000 request for OST is $100 million, a net $60.5 million increase over amounts appropriated in FY 1999. This funding level is needed to fund and provide for significant Indian trust asset reform initiatives by the year 2000. Funding for BIA and OHA components of the Trust Management Improvement Project (TMIP) and BIA's Indian Land Consolidation Pilot are reflected in OST's budget.

The FY 2000 Budget Request would provide the following:

A total of $65.3 million for trust systems improvements to fund the requirements of the TMIP identified in the High Level Implementation Plan, an increase of $48 million over the FY 1999 Appropriation level. These funds will be used to acquire or upgrade trust management and accounting systems, clean-up account data, and eliminate backlogs in trust asset processing functions. In FY 1998 the Department acquired, piloted, and installed TFAS, suitable for both tribal and IIM accounts. By December 1999, OST plans to have TFAS implemented in all 12 Area offices. BIA will replace its key trust systems (lease management, accounts receivable, land records, and trust resources management) by the end of 2000, after a pilot in

Billings, Montana in June of 1999.

Extensive data clean up efforts precede the implementation of these new systems. Additional Sub projects in the trust management improvement project funded under OST are aimed at decreasing probate backlogs to ensure trust beneficiaries receive timely distributions of trust assets; improvements to the appraisal function; and strengthening support functions that are needed in order to ensure adequate internal controls, adequate record keeping, clear and cogent policies and procedures and a well trained, capable staff.

A total of $10 million to continue consolidating fractionated Indian lands. These funds would expand the pilot program to consolidate fractional land ownership interests of two percent or less of trust/restricted allotted lands. This action will be consistent with the strategic goal of maximizing the economic benefit and utilization of individual and Tribally owned trust/restricted lands in a manner consistent with the Federal Government's role to protect and preserve such lands.

An increase of $1.9 million to fund the Office of Trust Litigation Support and Records activities necessary to assist in ongoing litigation, including Cobell vs. Babbitt document production requirements and funding needed to prepare and begin implementation of a Tribal settlement legislative proposal.

II.2 FY 2000 Annual Performance Plan Goal Detail and Narrative

By September 30, 2000, complete 100 percent of the milestones of the 13 Sub projects in the High Level Implementation Plan. (DOI)

FY 2000 Annual Performance Goal:

(06.01.01.00) By September 30, 2000, 100 percent of the milestones of the 13 Sub projects in the High Level Implementation Plan will be completed.

Goal Narrative. The High level Implementation Plan provides information on and describes each of the 13 Sub projects, responsible Bureaus and Offices, supporting tasks, critical milestones, work plans, resource estimates, and accountable officials. Improvements outlined in the Plan represent the Department's first comprehensive, coordinated, inter-Bureau effort to correct the many well-documented problems associated with the Department's management of Indian trust funds. $65.3 million is requested in the FY 2000 Budget request to address this annual performance goal.

Long-term Goal:

By September 2001, ensure that 100 percent of trust resource Tribes have access to their trust asset information to promote increase tribal management and control of trust assets. (OST/BIA)

FY 2000 Annual Performance Goal:

(06.01.05.00) By September 2000, ensure that 90 percent of Tribes have access to their trust asset information.

Goal Narrative. Adequate systems will be acquired and distributed to Tribes to account for and report trust fund balances. This includes PC hardware for local use, user software. communications, printers, security, user documentation, installation, and maintenance costs.

Long-term Goal:

By September 2003, title ownership information will be current and accurate, and provided in a timely manner in order to assure trust lands are adequately managed and the income derived from these lands are properly collected and allocated. (BIA)

FY 2000 Annual Performance Goal:

(06.01.02.00) By September 2000, 100 percent of systems needed are operational and in use to ensure that title ownership information is current and accurate, and the income derived from these lands are properly collected and allocated.

Goal Narrative. Following successful testing and piloting, the TAAMS system will proceed t full implementation. Funding in the amount of $15.3 million is requested in the FY 2000 Budget