TRUST MATTERS

Department of the Interior 

Office of the Special Trustee 

for American Indians 

January 2008 

Volume 8, Issue 1 

Advisory Board Approves Three Resolutions 

When meeting at a beautiful location in a picturesque setting, one might 

ask how much work can get done. The response is, a lot! The full ninemember Advisory Board to the Office of the Special Trustee for American 

Indians (OST) met January 17, 2008, in Palm Springs, home of the Agua 

Caliente Band of Cahuilla Indians. With all members in attendance, 

critical issues were addressed, resulting in the passage of three resolutions 

that will propel more reforms for Indian beneficiaries and tribes. 

The first resolution proposed by the Board is for OST to recommend 

legislation to the Department of the Interior to create a single account 

similar to an unclaimed property fund. This type of fund is used by states 

when assets, such as abandoned savings or checking accounts or money 

from pension plans, are available to people who cannot be located. The 

Board recommended that money from Individual Indian Money (IIM) 

accounts owned by people whose whereabouts have been unknown for 

several years be pooled into one unclaimed property account. Principal 

would remain in the unclaimed property account in perpetuity or until 

claimed by the owner. Savings would result from simplified accounting, 

including several thousand “whereabouts unknown” IIM accounts. 

Following the discussion of the first resolution was the introduction of 

a resolution on the topic of fractionation. 

Everyone in Indian Country knows this 

issue complicates the management of 

trust assets and underlies several other 

problematic issues. Fractionation occurs 

as land passes from one generation to the 

next and more and more heirs acquire a 

fraction of an undivided interest in the 

land. The Board recommended that 

Congress, working with the Bureau of 

Indian Affairs and Indian organizations, 

make an effort this year to develop a 

solution to fractionation. They referenced a solution roughly based on the 

tribal “Rosebud model” but with some exceptions. In operation since 

1947, this model set up a tribal land enterprise (TLE) to hold title to small 

fractional interests on the Rosebud Sioux reservation. Owners receive 

income based on their shares in the TLE. Because this model has been in 

operation for so many years, there has been time to identify and resolve 

difficulties unforeseen at its inception. The ultimate result of a solution to 

Keeping Everyone Informed 

OST’s Office of External Affairs 

(OEA) contracted with a firm in fall 

2007 to explore the development of 

effective communication strategies 

and products to 

better serve 

beneficiaries 

and to improve 

interaction 

among DOI 

employees in 

support of trust 

reforms. 

The company, Kauffman and 

Associates, Inc. (KAI), is an 

American Indian-owned small 

business that has been serving 

public and private clients since 

1990. 

After research with the targeted 

audiences—beneficiaries and DOI 

employees who work with OST on 

trust related issues—KAI presented 

two reports, one for each audience. 

Those findings, messages, and 

recommended materials have been 

distilled into a forward-thinking 

communication plan that contains 

new directions and products. After 

review and approval by OST’s 

senior management, the plan will 

be immediately implemented. 

Continued on page 2 
Page 2 Trust Matters 

Continued from page 1 

fractionation will be greater self-determination of Indian assets by Indians and reduced oversight by

federal employees. The resolution was approved by the Board. 

At the end of the day, another major issue was addressed and received the support of the full Board. A 

resolution about the disposition of OST was thoroughly discussed. Concerns were voiced that advances 

made by OST should not be reversed, nor should progress on trust reform cease. The consensus was that 

OST needs to continue in its role in the Department of the Interior as a focused, professional, independent 

fiduciary trust management organization with separate congressional funding. 

In addition to meeting with Special Trustee Ross Swimmer, the Board received a comprehensive presentation from the Principal Deputy Special Trustee Donna Erwin. She provided information about the debit 

card pilot program (an update is elsewhere in this issue); the latest audit; the 2007 report to Congress, 

Restoring Trust: The Reformation of Indian Trust Management (1994-2007); topics covered during OST’s 

Senior Executive Service retreat; and progress of the Workplace Improvement Team, which works with 

management by providing recommendations to increase employee engagement. She also updated 

members on the number of cases brought against the Department of the Interior by 103 tribes. The impact 

of so many cases is time consuming and onerous, competing for the same resources used to support programs and reforms. 

Special Trustee Swimmer took time twice during the day to provide interviews to members of the 

media—one from the largest local newspaper, The Desert Sun, and the other from KPSI, a radio station 

with a newstalk format. The Special Trustee helped spread the word about the American Indian Records 

Repository in Lenexa, Kansas; the Whereabouts Unknown initiative; and the debit card program, into 

which any account holder may enroll even though the pilot is only in three states. 

The meeting location is the home territory of the Honorable Richard Milanovich, a member of the 

Advisory Board and Chairman of the Agua Caliente Band of Cahuilla Indians. Other members of the 

Advisory Board are the Honorable Bill Anoatubby, Governor of the Chickasaw Nation of Oklahoma; 

Bobby Brooks, Vice President and Trust Officer of the Bank of Oklahoma; David English, Fratcher 

Missouri Endowed Professor of Law at the University of Missouri - Columbia; Honorable Jim Gray, 

Principal Chief of the Osage Nation in Oklahoma; Edward Holland, President and CEO of the Chota 

Capital Company, LLC, and member of the Cherokee Nation of Oklahoma; Fred Matt, former Chairman 

of the Confederated Tribes of Salish-Kootenai of the Flathead Reservation in Montana; Loren "Bat" 

Pourier, owner of Muddy Creek Oil and Gas, Inc., and member of the Oglala Sioux Tribe of South Dakota; and Helen Sanders, Chairman of the Allotees Association and Affiliated Tribes of the Quinault Reservation, and member of the Quinault Indian Nation of Washington. The next meeting of the Advisory 

Board will be held in Washington, DC, in March. 

i

from the establishment of the OST to significant

ing. 

magazine. The article, 

Cobell v. Kempthorne 

about trust reforms and the Cobell lawsuit will ai

OST Receives Media Coverage OST is sharing the stories of trust reforms with national media as another way of delivering information to beneficiaries and other stakeholders. The Special Trustee was a guest on the Federal News Radio program FEDtalk. This live interview was aired 

from Washington, DC, on 1050 AM and was simultaneously ava lable over the Internet. The hosts of the show asked questions about everything 

 reforms. Of course OST’s lack of Internet access and, therefore, email was a great mystery to 

the hosts. An audio file is archived on the Internet at www.federalnewsradio.com. Drop down the list of programs in the navigation bar at the top, 

click on the FEDtalk link then look for the January 4, 2008, button on the right side of the page. Happy listen

Less than a week after his appearance on FEDtalk, the Special Trustee was interviewed by a writer for In These Times

which focuses on the class action lawsuit, is scheduled to appear in the March issue of the magazine. 

Not all media coverage is national. Staff at the OST Albuquerque office talked with a reporter from a radio station in Alaska. A four-part series 

r this spring. Meanwhile, the Special Trustee reached out to media in Palm Springs during the 

quarterly meeting with his Advisory Board in January (see mention in the Advisory Board article in this issue). Recommendations about local 

media outlets, particularly American Indian media, are always appreciated. Contact Debby Pafel, OST Public Affairs Specialist, on 202-208-4289. 
Volume 8, Issue 1 

Independent Auditor’s Report 

Available in 2007 Annual Report 

The fiscal year (FY) 2007 auditor’s report on 

financial statements of tribal and other trust funds 

(Tribal) and Individual Indian Money (IIM) trust 

funds is available on the website of the Office of 

the Special Trustee for American Indians. 

Go to www.doi.gov/ost/documents/audits.html 

to view the report. 

The audit of financial statements was completed 

by the independent public accounting firm KPMG 

LLP. The report contains FY 2007 and FY 2006 

financial statements. 

The annual report that is online also contains a 

memorandum from the U.S. Department of the 

Interior, Office of the Inspector General, and a 

letter from the Special Trustee. 

The letter lists several accomplishments during 

FY 2007 that improved services to trust beneficiaries. A few highlights are: 

• Completed the conversion of all remaining BIA 

regions to systems that enable tracking leasing 

activity, ownership, and income distribution 

electronically 

• Produced and distributed booklets, brochures, 

and statement inserts to beneficiaries 

• Delivered over 700,000 quarterly performance 

statements to beneficiaries 

• Distributed tribal account statements on 

CD-ROM to all requesting tribes 

• Received over $286 million through a centralized commercial lockbox and distributed over 

90% of the funds received to beneficiaries’ 

accounts within ten business days 

• Established self-governance and selfdetermination agreements with 38 tribes for real 

estate appraisals and individual Indian 

beneficiary trust functions and extended the first 

TrustNet connectivity to a self-governance tribe 

• Conducted or participated in 2,676 outreach 

events 

Page 3 

OST Fiscal Year 2009 

Budget Requests 

The Department of the Interior’s Office of 

the Special Trustee for American Indians 

(OST) budget request for fiscal year 2009 

is $181.6 million, a reduction of $7.7 million 

compared to FY 2008 enacted funding due 

to the completion of some trust reform 

efforts, elimination of the Indian Land 

Consolidation Program, and management 

efficiencies. 

The proposed budget includes increased 

funding for several key programs, including 

an increase of $1.7 million to address the 

Office of Hearings and Appeals probate 

backlog and $815,000 for Office of Trust 

Services. 

Decreases in the budget request include 

reductions of $3.3 million as a result of the 

completion of certain trust reform and project task efforts. The budget also includes 

a $530,000 reduction in travel and relocation expenses, as part of a Departmentwide travel reduction. OST will focus on 

travel by only essential personnel to events 

that support goals and objectives identified 

in the Comprehensive Trust Model (CTM) 

plan. Attendance via teleconferences and 

other communications technology will also 

be utilized when appropriate. 

This budget request does not include funding for the Indian Land Consolidation 

program. This program did not provide a 

cost effective solution to the critical issue 

of fractionation. The Department remains 

committed to finding a solution for Indian 

land consolidation. A working group is 

being formed to explore an alternative 

strategy that will be beneficial to both 

individual Indian land owners and tribes. 

Visit the OST website at www.doi.gov/ost 

to view the fiscal year 2009 budget 

request. 
Debit Card Pilot Program: Gaining Momentum

The Chase MasterCard® debit card pilot program

was launched in the states of Arizona, Oklahoma, 

and Washington on December 3, 2007, when debit 

card enrollment began. The first debit card transaction occurred on January 4, 2008. The debit card 

pilot program will run through June 2008, after 

which the program will be evaluated for improvements before it is expanded to IIM account holders 

nationwide. 

The voluntary debit card program gives Individual 

Indian Money (IIM) account holders the convenience

and security of receiving their funds electronically, 

rather than by check, and eliminates fees associated 

with cashing checks. Beneficiaries do not need a 

bank account to participate. OST partnered with the 

Department of the Treasury to offer the debit card 

option. 

To view more information about the Chase 

MasterCard® debit card pilot program visit the 

OST website at www.doi.gov/ost. The following

frequently asked questions, and more, are listed 

there. On the website, select the “What’s New” 

button then click the debit card link. 

FREQUENTLY ASKED QUESTIONS (FAQs) 

AND IMPORTANT INFORMATION 

ABOUT THE CHASE DEBIT CARD PILOT PROGRAM 

Is the debit card program different than direct 

deposit? Yes. Account holders with an existing relationship with a financial institution may continue to choose 

to receive their funds through an electronic transfer 

directly to their checking account. The debit card is an 

additional option for beneficiaries who wish to receive 

their IIM funds electronically, and may be particularly 

helpful for beneficiaries who do not have an existing 

checking account. 

How can I get information or enroll in the new Chase

debit card pilot program and is enrollment free? Call 

the OST Trust Beneficiary Call Center toll free at 

1-888-678-6836, if you have questions about the program 

or to request an enrollment packet. 

Can I enroll in the new Chase debit card pilot program 

with my Fiduciary Trust Officer? Yes. 

If I don’t like the Chase debit card for any reason, 

can I close my debit card account? Yes, you can stop 

participation in the debit card program at anytime and for 

any reason. Just call the Trust Beneficiary Call Center toll 

free at 1-888-678-6836 for assistance with this process. 

Any funds remaining on your card when you cancel will 

still be available for your use until they are depleted. 

How will I get my money? Instead of receiving a check, 

OST will transfer your trust funds to Chase for automatic 

deposit into your Chase debit card account. Your funds 

are available for your use with your debit card as soon as 

Chase bank credits the funds to your debit card account. 

Do I need to know the balance on my Chase debit 

card account in order to make a purchase? It is very 

important for you to know the balance on your new debit 

card before making purchases, so that you won’t have 

your transaction denied. You can only use your debit card 

to spend the amount that you have in your debit card 

account. Merchants will not have access to information 

about your account balance. 

Will I receive debit card account statements from 

Chase? You will receive periodic statements from Chase 

showing your debit card account activity. Your statements 

will be sent to your mailing address unless you choose to 

receive your statements at an email address. 

Will I continue to receive account statements from 

OST? Yes. OST will continue to send a quarterly 

statement to you. This statement will not show any 

activity from use of your debit card. 

Where can I use my new Chase debit card? You can 

use your debit card: 

• At an ATM for cash withdrawals or account balance 

inquiries (please note the information on possible 

fees above). 

• At retail locations where MasterCard® is accepted to make purchases or to get cash from your debit card 

account. 

• At Post Offices to purchase stamps, mail supplies, 

and money orders. 

• To make purchases by phone or on the Internet. 

Will OST know how I use my Chase Debit Card and 

where I spend my debit card funds? No.