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FGMSD-78-17 1 (1978-02-15)

handle is hein.gao/gaobaawrp0001 and id is 1 raw text is: DOCUhh3T RESURE 05084 [8 0 08541091 I/7 Bore Effective Controls over Bureau of Indian Affir Administrative Costs Are Needed. FGHSD-78-17; v- Ii ',68s febrnary. 15, 1978. RWoased l bcuary 27, 1978. 35 pp. Report to Sen. Robert C. Byrd. Chairman, Senate Lssittee on Appropriations: interior Subcommittee; by Ilat: .3. Staats, Comptroller Ge aral. Issue Area: accounting and Finaacial Reporting (2600). Contact: Financial and General lanageneat Stedies Div. Padqet Function: General Government: Central Fial Operatoaas (803). Orqanizatiou Concerned: Bureau of Ind. an affairs; Department of the Intsrior. Congressional. Relevance: Senate Com4.ttee on ppropriaticns: Interior Subcommittee. Sen. Robert C. Byrd. Authority: Budget and Accounting Procedures Act of 950. The Bureae of Indian Affairs was asked by congressional committees to reduce costs of adainistering Indian programs for fiscal years (FTs) 1977 and 197a by about $8.5 million because evidence suggested that costs were excessive. Findinqs/Conclusions: BIA reduced costs by about S9009000 and then, rather than reduce the remaining administrative costs as directed, it reduced funds for Indian progress. It also avoided reductions in administrative costs by such actions as netting the reduction against other program costs and allocating then to the many BIA offices without identifying the amount of reduction; reducing funds for computer operations and recovering funds by receiving reinbursement from Indian programs for services; and failing to re~dce personel, claiming that reductions would have prevented it from providing essential services. BILOs arguments for maiataining its adminietrative costs level are inconsistent with audit report disclosures that shortcominqs in personnel organizations$ operating budgets to management and other adverse conditions have resulted in unnecessarily high costs. *eaknesses in the Bureau's financial manaqement system preventel it from controlling .osts effectively and contributed to its high administrative costs. Recomendations: Congress should exercise Metter controlc over DI1s administrative costs by changing its method of appropriating funds four this purpose, using either separate appropriations or a dollar limitation, and should also specify amounts for personnel costs. If either of these recosmendations is adopted, the Secretary of the Interior should require BIA to change its bedqets and related justifications to show total adniAistrative costs and personnel by specific offices and proqra category. He should also direct hIA to: revise its accoundtinq system to use its orgenizations' operating budgets to control costa and prevent unauthozized deviation& fra operatinq budgets, establish fund controls that will keep area

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