Fractionation Update

The InterTribal Monitoring 

Association (ITMA) released their 

report on fractionation in December 

2008. The 15 recommendations from 

that report were reviewed in detail 

with tribal leaders at the ITMA 

meeting and workshop that was held 

April 2009 in Albuquerque, New 

Mexico. ITMA is now categorizing 

the 15 recommendations and 

incorporating them into detailed 

action plans that will be published in 

the next few weeks. 

ITMA is working with BIA, OST 

and other government offices and 

tribes to produce the most effective 

solutions to fractionation. Mary 

Zuni, ITMA’s Executive Director, 

noted that many issues overlap and 

are best considered collectively.

Department of the Interior

Offi ce of the Special Trustee 

for American Indians

Volume 9, Issue 2

Spring 2009

TRUST MATTERS

Table of Contents

Appraisal Backlog 1

Fractionation Update 1

Speeding Disbursements 2

Director JP Barham 2

Stable Asset Value 2

Advisory Board 2

FTO Outreach Events 3

Debit Card 4

Touring OST Albuquerque 4

Eliminating the Appraisal Backlog

Historically, backlog has been defi ned as any complete and valid appraisal 

request that is 91 days or older. The backlog also includes any appraisal 

report review request, received from a tribal appraisal program, that is 31 

days or older. (OAS is currently working on redefi ning “backlog.”)

In February 2009, OAS initiated a project to eliminate the backlog by 

July 1. The Deputy Chief Appraiser established a number of backlog teams 

(comprised of staff from OAS offi ces throughout the organization) that go 

on site to agency locations with large backlogs. This allows OAS review 

appraisers to become geographically competent at those locations. Appraisers 

can then perform appraisal reviews from their home locations.

Appraisal offi ces throughout the country have geared up and are energized 

about meeting the backlog challenge. The Northwest Regional Offi ce, for 

example, created a “gold star” 

to visualize their progress. 

The star is comprised of 

pieces of a puzzle with agency 

names printed on them. Once 

the work load for that agency 

is completed, the white portion 

is torn off showing a bit of 

gold. End result, the backlog 

is completely eliminated when 

they can see the whole gold 

star. The entire staff put their 

minds together to come up with 

this visual. They all signed the 

board and look forward to seeing 

gold.

While many things have contributed to the creation of the backlog over past 

years, OAS is aggressively taking steps to not only eliminate the backlog but 

to institute more effi cient and effective practices and processes to avoid future 

backlogs. These steps include developing alternative appraisal methodologies 

and techniques, like mass appraisal systems and market studies.

In addition, OAS is developing and implementing indefi nite-delivery/

indefi nite-quantity contracts for appraisal services that will result in a more 

effective and effi cient acquisition process. These contracts are being awarded 

on a reservation-by-reservation basis. In conjunction with this effort, OAS is 

analyzing each and every new appraisal request—whether from the Bureau 

of Indian Affairs, tribes, or third party entities—to determine the appraisal 

product that will best serve a client’s needs. 

OAS has a number of other projects on the burner. These are exciting times!

 Staff at the Nortwest Regional Offi ce (L-R): Philip 

 Graf, Rena Sanford, Tom McCorquodale, Dawn 

 Cordts-Buendia, Laura Manion, Ernest Flechsig
2 TRUST MATTERS

Stable Indian Trust Asset Value

The turbulence in the fi nancial markets has created concern and 

unease among many investors, including Indian trust benefi ciaries. 

Fortunately, the fi nancial trust assets of tribal and Individual Indian 

Money account holders have not been adversely affected by the 

current economic environment.

Trust assets invested by the Offi ce of Special Trustee for American 

Indians (OST) are limited by law to fi xed income securities issued by 

the U.S. Government and its agencies. They are among the highest 

quality instruments available. 

In September 2008, the U.S. Government took control of Fannie Mae 

(Fannie) and Freddie Mac (Freddie), which are U.S. Government 

agencies known as “Government Sponsored Enterprises” (GSEs). 

Because they are chartered by the U.S. Government, their fi nancial 

backing by the government is implied, but not guaranteed, as Treasury 

securities are. However, the takeover increased investor confi dence in 

the safety of fi xed income debt issued by Fannie and Freddie because 

the government has assured their long-term viability as an integral 

part of its plan to stabilize the housing crisis. 

OST invests trust funds in fi xed income securities issued by Fannie 

and Freddie and other government agencies because such securities 

offer higher income than comparable Treasury securities with almost 

the same safety of principal. As a result, OST’s trust funds have 

avoided the kinds of losses many other parts of investment markets 

have experienced in the past year. Interest rates have declined as the 

economy has slowed, but the principal value of Indian trust assets has 

remained secure. 

Dr. Barham 

Joins Staff

Dr. James P. 

Barham is a 

new Director 

with the Office 

of the Special 

Trustee for 

American 

Indians 

(OST). JP 

heads up OST’s 

Office of External Affairs. 

Prior to OST, JP was with the U.S. 

Department of Homeland Security 

where he served as the Chief of 

Communications, Office of Fraud 

Detection and National Security. A 

retired military veteran, JP entered 

OEA with more than 30 years of federal 

service in the areas of public affairs 

and communications.

JP is a graduate of the New England 

Institute of Hypnotherapy and a 

graduate of Concordia University, 

where he earned a Doctorate 

of Philosophy degree in 2003. 

Additionally, JP is a Certified Clinical 

Hypnotherapist who specializes 

in forensic hypnosis and pain 

management. 

JP looks forward to working with OST 

as it moves ahead with reforms. He 

is especially interested in enhancing 

OST’s relationships within Indian 

country.

Impacting Speed of Disbursements

The lockbox, established just over three years ago, is the 

place where payments for trust land use are remitted. When 

a payer includes a coupon (the stub on the invoice that is 

detached and returned) with a payment to the lockbox, then 

auto-match and auto-pay are activated. These functions, within 

the collection system, ensure accuracy and increase the speed 

with which income is paid to beneficiaries. 

While the use of coupons has risen, there is still room for 

improvement in two areas:

• invoices with coupons need to be provided to payers before 

their due date

• payers need to remit coupons with their payments

Please help spread the word to increase the rate of coupon use, which 

in fiscal year 2008 was 64.8 percent. That was the first year there were 

more payments submitted with coupons than without. Remember, 

increased use of coupons results in faster payments to beneficiaries! 

After all, OST employees know it’s all about the beneficiaries.

Advisory Board Passes

Probate Resolution

The Advisory Board of the Special 

Trustee convened on March 26, 2009, 

in Washington, D.C. At one point, they 

met with the team of senior managers 

of the Offi ce of the Special Trustee for 

American Indians (OST) to learn about 

progress on reforms. The agenda also 

included a brief meeting with Secretary 

Salazar. After that meeting, it was back 

to the business at hand, part of which 

was a discussion of an expedited probate 

process. The Board passed a resolution 

to study the development of a simpler 

probate administration system and to 

form a committee, chaired by Advisory 

Board member Professor David English, 

to work with the Department on this 

initiative.
Fiduciary Trust Offi cers (FTOs) are 

always thinking about what will 

help the Indian trust benefi ciaries 

at their agencies. The Offi ce of 

the Special Trustee for American 

Indians’ FTOs are local, primary 

points of contact for benefi ciaries. 

There are 51 FTO positions 

across the country, typically colocated with Bureau of Indian 

Affairs’offi ces.

Outreach events are one of 

the ways FTOs serve their 

benefi ciaries. Events provide 

training; enable benefi ciaries 

to get answers about their trust 

assets and issues; and offer OST 

an opportunity to search for 

Whereabouts Unknown (WAUs), 

Indian trust account holders for 

whom the OST does not have 

current contact information. Last 

year, FTOs participated in more 

than 5,000 outreach events. They 

worked with tribal leaders, nonprofi t organizations, educational 

institutions and other government 

agencies.

Recently, the Standing Rock 

Sioux Tribe and the First Nations 

Over 5000 Outreach Events in Fiscal Year 2008

Development Institute 

(FNDI) offered fi nancial 

and entrepreneurial 

training, in cooperation 

with OST’s Standing 

Rock Agency. The 

FNDI is a Native 

nonprofi t organization 

that has created 

fi nancial training 

materials suitable for 

individuals at all levels of 

experience. The sessions 

were open to local 

people interested in improving 

their personal fi nancial skills and 

setting fi nancial goals or building a 

business. Presenters for this series 

included staff from the Sitting Bull 

College, who explained 

the college’s new multiweek curriculum for 

entrepreneurs, and 

FNDI’s Shawn Spruce, 

a certifi ed fi nancial 

literacy trainer.

“This is the second series 

of fi nancial training 

offered in the Great 

Plains Region” said FTO 

Ed Grant. “When the fi rst 

workshops were held 

in September at the Fort Berthold 

Agency, we received feedback that 

everyone, not just tribal members 

on the reservations, could use 

training like this.”

FTOs in Oklahoma supported willpreparation services that included 

trust and non-trust assets. The 

sessions were open to Indian trust 

benefi ciaries from any tribe. The 

Oklahoma City University (OCU) 

Law School Clinical Program, the 

Oklahoma Bar Foundation, and the 

Cheyenne-Arapaho Tribes 

offered the program. OCU law 

school student interns with 

knowledge of wills, probates 

and trust law provided the 

service under the direction 

of a licensed and bonded 

supervising attorney. Their 

efforts were overseen by Casey 

Ross-Petherak, an attorney 

and assistant director of the 

school’s Native American 

Legal Resource Center. The 

students received coursework 

credit. Sessions in spring 

were held at locations near 

the Anadarko and Concho 

Agencies. Additional fall 

dates are being arranged for 

agencies located throughout the 

Southern Plains Region.

“Many of the benefi ciaries who 

had wills drafted at the fi rst 

session said they were thankful 

for the opportunity. They told 

me that without this service, 

they wouldn’t know where else 

to go. It’s diffi cult for them to 

fi nd affordable local lawyers 

who are knowledgeable about 

Indian trust law,” noted Henry 

Ware, a FTO at the Concho 

Agency.

 First fi nancial training class at the Standing Rock tribal 

 headquarter’s building. Cash vs. credit: What’s in your wallet?

 More than 80 seniors and juniors attended the fi nancial 

 training session held at the Sanding Rock High School.

VOLUME 9, ISSUE 2 3
The debit card program of the Offi ce of the Special Trustee 

for American Indians (OST) is a 2009 winner in the “Best 

Government Funded Prepaid Program” category of the 

Paybefore Awards. This annual competition recognizes 

excellence—worldwide—in the prepaid card industry. OST’s 

program was selected by a panel of fi ve industry experts who 

served as judges for this year’s competition. 

Instead of receiving disbursements by check, Individual 

Indian Money (IIM) account holders may choose to have their 

funds provided electronically through automatic transfers to a 

personal debit card account at Chase Bank. OST’s website has 

been updated with a section devoted to information about the 

debit card option. Visit www.doi.gov/ost/debitcard to access 

detailed information.

Electronic transfer to a Chase debit card account is fast, 

convenient and safe. There is no risk of checks being 

misplaced, stolen or lost in the mail. There is no cost to enroll 

for the service and the funds in a debit card account are immediately available to the account holder to make 

payments or purchases wherever MasterCard® or debit cards are accepted.

The debit card option is available even if you do not have an account at any other fi nancial institution. If you 

do have an account at another fi nancial institution, consider the direct deposit option fi rst.

To fi nd out how easy it is to get a Chase debit card account and receive your funds electronically, visit www.

doi.gov/ost/debitcard or contact the Fiduciary Trust Offi cer (FTO) at your local servicing agency. To fi nd your 

FTO, click on the map at www.doi.gov/ost/fto. You may also call the Trust Benefi ciary Call Center (TBCC), 

toll free, at 1-888-678-6836. The TBCC operates six days a week—Monday through Friday from 7 a.m. to 

6 p.m. and Saturday from 8 a.m. to noon, Mountain Time.

Choose the Debit Card for Your Disbursements hoose the Debit Card for Your Disbursements

Receiving the Paybefore Award (L-R): Rob Winter Receiving the Paybefore Award (L-R): Rob Winter

(Trust Services), Rien Heymering (Trust Accountability), (Trust Services), Rien Heymering (Trust Accountability), 

Margaret Williams (Trust Accountability), Bryan Margaret Williams (Trust Accountability), Bryan 

Marozas (Field Operations) Marozas (Field Operations)

Touring OST’s Albuquerque Facilities

Early in April, members of Senator Tom Udall’s staff in New Mexico toured the 

Albuquerque facilities of the Offi ce of the Special Trustee for American Indians 

(OST). The tour, which lasted several hours, was preceded by a slide presentation 

that provided an overview of operations and staffi ng. 

Later that month, several tribal members and representatives also took the 

opportunity to tour OST’s Albuquerque facilities after meeting with OST managers. 

OST was pleased to host the Confederated Salish and Kootenai Vice Chairman and 

tribal council members, the Confederated Tribes of the Warm Springs Reservation 

Chairman and council members, and the Sac & Fox Nation Principal Chief and a 

realty specialist.

Do you have special issues to discuss with OST management? Would you like a 

closer look at where and how your trust funds are managed? OST extends an open 

invitation to tour its Albuquerque operations. To schedule a visit, please contact 

your Fiduciary Trust Offi cer or Regional Trust Administrator, or call Rick Fielitz 

or Pat Gerard at 505-816-1313.

4 TRUST MATTERS

“The OST tour 

was well worth 

our time. Acting 

Special Trustee 

Donna Erwin and 

the other senior 

managers were very 

professional and 

provided us with a 

detailed and 

insightful look at 

the OST programs.” 

Ernest T. “Bud” Moran, 

Vice-Chairman, 

Confederated Salish 

and Kootenai Tribes