OFFICE OF THE SECRETARY

FOR IMMEDIATE RELEASE: September 11, 2001

Stephanie Hanna (O) 202/501-4633

BLUEPRINT FOR HISTORICAL TRUST ACCOUNTING PRESENTED

Bert T. Edwards, Executive Director of the Office of Historical Trust Accounting, today presented Interior Secretary Gale Norton with a Blueprint for Developing the Comprehensive Historical Trust Accounting Plan. The Blueprint responds to the first directive by Secretary Norton regarding Indian Trust reform announced on July 10, 2001. Secretarial Order 3231, which created the Office of Historical Trust Accounting, charged its new executive director to "prepare a comprehensive description and timetable for completion of all steps that are needed to staff and develop a comprehensive plan for a historical accounting that meets the Department's fiduciary obligations to IIM (Individual Indian Money) beneficiaries."

The Office of Historical Trust Accounting will build upon this Blueprint as the Comprehensive Plan is developed. The purpose of the Blueprint and Comprehensive Plan is first to develop and then to implement a valid, timely and cost-effective assessment of balances in IIM accounts so that account-holders can be assured of the accuracy and amount of monies in their accounts and the assets held in trust from which these funds are derived. The Comprehensive Plan must also be acceptable to the Court in the Cobell v. Norton case, and acceptable to the Congress.

"Secretary Norton has made it clear that she intends to hold this project to high standards and expects it to meet the test of expert, independent peer review," Edwards said.

"We are all aware that this is a complex and challenging task that deserves a methodical, thoughtful, open and flexible process from the circulation of this first Blueprint through implementation of the Comprehensive Plan," he continued.

Most Individual Indian Money Accounts result from the allotment and transfer of title to individual Indians of formerly tribal lands, following passage of the General Allotment Act of 1887. By 1891, Congress recognized that many allottees were unable to benefit financially from their land parcels and authorized the Department of the Interior to lease allotments on behalf of individual Indians, first disbursing funds through Indian agents on each reservation. In 1908, Congress authorized monies from rents, leases and sales of property for individual Indian property owners and their heirs to be deposited and disbursed centrally by Department of the Interior, which led to the establishment of IIM accounts within the Department of the Treasury.

There are now approximately 285,000 IIM account-holders and a wide variety of types of accounts, depending on the nature and source of the asset held in trust. Adding to the complexity of the trust accounting systems, property allotted to individual Indians was inherited through a system of undivided interests to each direct descendent or other heir. As a result, present-day allotted land parcels can vary from one to more than 1,000 owners with undivided interest.

At the direction of the Secretary, by November 7, 2001, the Office of Historical Trust Accounting will identify preliminary accounting work that would advance the orderly progress of the historical accounting project and can be done during the development of the Comprehensive Plan. The development of the Comprehensive Plan is expected to be completed by mid-2002.

The Blueprint is available on the Internet on the web site of the Office of Historical Trust Accounting: "http://www.doi.gov/ohta/"

Comments on the Blueprint are welcome via fax to 202/219-1139, via e-mail to [email protected] or by mail to the Office of Historical Trust Accounting, U.S. Department of the Interior, MS-3060 MIB, 1849 C Street, NW, Washington, DC 20240.

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