IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ELOUISE PEPION COBELL, et al., ) ) Plaintiffs, ) ) v. ) Case No. 1:96cv01285-JR ) KEN SALAZAR, Secretary of the ) Interior, et al., ) ) Defendants. ) _________________________________) NOTICE OF FILING OF INTERIOR DEFENDANTS’ FORTIETH STATUS REPORT Interior Defendants hereby give notice of the filing of their fortieth report due in accordance with the Order of December 21, 1999. A copy of the report is attached hereto. Dated: May 3, 2010 Respectfully submitted, TONY WEST Assistant Attorney General MICHAEL F. HERTZ Deputy Assistant Attorney General J. CHRISTOPHER KOHN Director /s/ John J. Siemietkowski ROBERT E. KIRSCHMAN, Jr. Deputy Director (D.C. Bar No. 406635) JOHN R. KRESSE JOHN J. SIEMIETKOWSKI Trial Attorneys Commercial Litigation Branch Civil Division P.O. Box 875 Ben Franklin Station Washington, D.C. 20044-0875 Phone (202) 514-3368 Fax (202) 514-9963 CERTIFICATE OF SERVICE I hereby certify that on May 3, 2010, the foregoing Notice of Filing of Interior Defendants’ Fortieth Status Report was served by Electronic Case Filing, and on the following who is not registered for Electronic Case Filing, by facsimile: Earl Old Person (Pro se) Blackfeet Tribe P.O. Box 850 Browning, MT 59417 Fax (406) 338-7530 /s/ Kevin P. Kingston Kevin P. Kingston THE SECRETARY OF THE INTERIOR WASHINGTON APR 282010 J. Christopher Kohn U.S. Department ofJustice Civil Division Commercial Litigation Branch P.O. Box 875 Ben Franklin Station Washington, D.C. 20044-0875 Re: Cobell v. Salazar -Status Report to the Court Number Forty Dear Mr. Kohn: Enclosed is the Department ofthe Interior's Status Report to the Court Number Forty (for the Period January 1, 2010 through March 31,2009). Please forward a copy to the Court. My signature on this report reflects my reliance on the assurances ofthose who have compiled the report that the information contained herein is accurate. Thank you for your assistance. Sincerely, ~ru~?~ Enclosure Status Report to the Court Number Forty For the Period January 1, 2010 through March 31, 2010 SDEPARTME U MARCH 3,1849 TNTHEINTERIOR May 3, 2010 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Table of Contents TABLE OF CONTENTS INTRODUCTION........................................................................................................................ 1 I. OFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIANS ......................... 2 A. OFFICE OF HISTORICAL TRUST ACCOUNTING ............................................... 3 B. TRUST SERVICES – CURRENT ACCOUNTING ................................................... 8 C. OFFICE OF TRUST RECORDS ............................................................................... 11 D. TRUST ACCOUNTABILITY .................................................................................... 13 1. TRUST BUSINESS PROCESS MODELING ....................................................... 13 2. TRUST DATA QUALITY AND INTEGRITY ..................................................... 14 3. INDIAN FIDUCIARY TRUST TRAINING PROGRAM .................................... 16 4. RISK MANAGEMENT ........................................................................................... 17 5. TRUST REGULATIONS, POLICIES AND PROCEDURES ............................. 18 E. TRUST REVIEW AND AUDIT ................................................................................. 19 F. APPRAISALS AND VALUATIONS ......................................................................... 20 II. INDIAN AFFAIRS.............................................................................................................. 23 A. TRUST REGULATIONS, POLICIES AND PROCEDURES ................................. 23 III. BUREAU OF INDIAN AFFAIRS .................................................................................. 25 A. FRACTIONATION ..................................................................................................... 25 B. PROBATE..................................................................................................................... 26 C. MINERAL ROYALTY ACCOUNTING AND DISTRIBUTION........................... 28 IV. OTHER TOPICS ............................................................................................................. 29 A. INFORMATION TECHNOLOGY ............................................................................ 29 B. CADASTRAL SURVEY.............................................................................................. 32 C. MINERALS MANAGEMENT SERVICE ................................................................ 35 ACRONYMS AND ABBREVIATIONS ................................................................................... 36 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Introduction INTRODUCTION This Status Report to the Court Number Forty (Report) represents the period from January 1, 2009, through March 31, 2010. The Report is presented for the purpose of informing the Court of actions taken since the issuance of the preceding quarterly report. The Report includes delays in and obstacles to trust reform activities. A report on the progress of the historical accounting of individual Indian beneficiary funds managed by Interior is a primary part of the Report.1 This Report is prepared in a manner consistent with previous reports to the Court. Managers from the Office of the Secretary, Office of Historical Trust Accounting, and Office of the Special Trustee for American Indians, Bureau of Indian Affairs, Bureau of Land Management, and Minerals Management Service submit reports on the status of their respective Indian trust activities. A glossary of acronyms and abbreviations is included in this Report. The glossary is located at the end of the Report. This Report contains information on the broad trust reform efforts underway at Interior. Accordingly, it may include information on reform efforts that are not within the scope of the Cobell litigation. 1 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Office of the Special Trustee for American Indians I. OFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIANS The Cobell litigation settlement still awaits the enactment of legislation and Court approval. On April 8, 2010, the Court granted Interior’s motion to allow certain Justice Department and Interior officials and staff to communicate about the settlement with class members. The Court also approved a third extension of time for Congress to act on the settlement. If the settlement is ultimately approved, OHTA’s work on IIM accounts will be primarily limited to resolving SDA. If not, OHTA will reassess its 2007 Plan in light of the Court of Appeals’ most recent decision. As a result, OHTA has suspended much of its work on IIM accounts. Date: April 22, 2010 Name: Signature on File Donna Erwin Principal Deputy Special Trustee for American Indians 2 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Office of Historical Trust Accounting A. OFFICE OF HISTORICAL TRUST ACCOUNTING Introduction OHTA’s historical accounting includes all transactions in IIM accounts open on or after October 25, 1994 (the enactment date of the American Indian Trust Fund Management Reform Act), through the earlier of the date of account closure or December 31, 2000. OST has regularly issued account statements to IIM account holders since the end of 2000. Accomplishments and Current Status Electronic Ledger Era HSAs reflecting Electronic Ledger Era activity can now be prepared for 220,577 Land-Based IIM accounts from the Electronic Ledger Era (in addition to the 66,130 Judgment and Per Capita IIM accounts awaiting Court approval for mailing). Data Completeness Validation: Confirming Completeness of Land-Based IIM Accounts through System Tests DCV is a process consisting of multiple tests: Transaction and Disbursement Mapping, Balance Comparison, Account Number Review, and System Conversion. Transaction Mapping: This test confirms that transfer and reversal transactions are correctly posted within the IIM accounting systems (i.e., that no transactions are missing from the electronic dataset). As of March 31, 2010, 99.7% of the transactions in the dataset had been mapped. During this reporting period, transaction mapping for 1,303,081 transactions was completed. Of these, 6,883 were pre-December 31, 2000, transactions. The number of transactions that require mapping increases as IRMS transactions are restored to the dataset and post-December 31, 2000, TFAS transactions are added to the dataset. Disbursement Mapping: This test confirms the status of disbursements issued during the timeframes of the Treasury CP&R System and TCIS2 for check payments and the Treasury PACER System for electronic payments. Additionally, this test is used to identify cancelled disbursements to ensure that they have been re-credited to an IIM account. Disbursement Mapping is updated as data are received from Treasury on current check and electronic disbursements. During this reporting period, Treasury provided OHTA with TCIS data from April 2005 through May 2009 as well as PACER data from April 2008 through May 2009. These data were added to OHTA’s database during this reporting period. Additionally, mapping was completed for 98.1% of the TCIS records and all of the PACER data through May 2009. The mapping of the CP&R data through April 30, 2006, is 99.7% complete. 2 TCIS replaced CP&R on May 1, 2006. 3 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Office of Historical Trust Accounting Balance Comparison: This test confirms that transactions to be included in an HSA correspond to the December 31, 2000, TFAS balance. This test was completed for TFAS data in 2007 and is 97.9% complete for IRMS data. During this reporting period, two out-of-balance accounts were resolved. Account Number Review: This test ensures that OHTA provides the appropriate transactions to each IIM account holder who would receive an HSA regardless of whether the account number was reused or changed historically. As of March 31, 2010, 99.9% of the accounts in the dataset had been reviewed. During this reporting period, work continued on identifying new accounts and identifying when an account number had been reused historically and/or an account has multiple names but was owned by a single individual. The number of transactions reviewed increases as IRMS transactions are restored to the dataset and post-December 31, 2000, TFAS transactions are added to the dataset. System Conversion: These tests involve several tasks to determine the accuracy of system conversions, including from the Paper Ledger Era to the Electronic Ledger Era, and from IRMS to TFAS during the Electronic Ledger Era. To verify the accuracy of the conversion to electronic data, OHTA continued to examine and update its list of IIM accounts from the Electronic Ledger Era that appeared to have also existed during the Paper Ledger Era. The OHTA copy of the Electronic Ledger Era IRMS database contains 56,770,016 transactions to date, including 340,666 restored transactions. OHTA also has identified 3,453,082 IRMS account balance records, including 364,182 restored balances, of which 88 IRMS balances were restored during this reporting period. This test identifies transactions and balances that were in BIA’s original IRMS-IIM electronic dataset, but were not found in the copies of that dataset provided by BIA to OST and in turn by OST to OHTA. The OHTA copy of the TFAS database contains 79,735,566 transactions. To date, no missing transactions have been identified in the TFAS electronic database. Interest Recalculation for Land-Based IIM Accounts The objective of interest recalculation is to provide a detailed estimate of the interest that should have been posted to an IIM account, applying the same interest distribution policies that BIA and OST used historically. The interest recalculation also serves as an additional data completeness test since missing transactions in the dataset would cause an exception in the interest recalculation. The recalculated interest is then compared to the actual posted interest to identify variances. During this reporting period, OHTA performed no additional interest recalculation on Land-Based IIM accounts, so the cumulative total of 231,714 tested accounts within all 12 BIA Regions was unchanged. 4 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Office of Historical Trust Accounting Paper Ledger Era Reconstruction of Paper Ledger Era IIM Accounts OHTA suspended its work reconstructing Paper Ledger Era IIM Accounts at the beginning of this reporting period. Reconciliation of Paper Ledger Era Transactions As previously reported, OHTA randomly selected 250 transactions from the Southern Plains Region for its pilot reconciliation project. OHTA’s search for documents to reconcile remaining transactions has been put on hold. To date, 185 of these 250 transactions have been loaded into ART. Of these transactions, 167 have been fully reconciled, 11 partially reconciled, and seven determined to be out-of-scope. A report on this pilot project is expected to be completed during the next reporting period. Judgment and Per Capita IIM Accounts Results to date are summarized in Status Report to the Court Number Twenty-Nine. No further work was conducted on these accounts during this reporting period. OHTA still awaits approval from the Court to mail 66,130 HSAs to Judgment and Per Capita IIM account holders. OHTA SDA Distribution Project – Undistributed SDA Balances During this reporting period, OHTA’s work resulted in the distribution of $652,721 of SDA balances, including interest, which raised the total dollars resolved and funds distributed as of March 31, 2009, to $54.7 million. As of March 31, 2010, a total of 10,481 OHTA SDA, involving $14,952,537 (plus interest from December 31, 2002), remained to be resolved and distributed. Of those remaining SDA, 72.1% had balances as of December 31, 2002, of less than $500 each, involving 4.1% of the remaining undistributed dollars. As reflected in the table below, OHTA’s distribution of residual SDA balances continues to show that only about one-third of undistributed SDA funds belonged to IIM account holders. OHTA’s work has also confirmed that, historically, Interior credited monies into the IIM accounting systems that were never intended for individual Indians. 5 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Office of Historical Trust Accounting OHTA SDA DISTRIBUTION PROJECT (1) SDA Resolved Dollars Transfer to Tribal Accounts Transfer to IIM Accounts Paid to Non-Indian, Third Party and Other (2) Dollars distributed as of December 31, 2009 $17,911,965 $17,756,246 $18,422,466 Dollars distributed from January 1, 2010, through March 31, 2010 $244,905 $236,854 $170,962 Dollars distributed from January 1, 2003, through March 31, 2010 $18,156,870 $17,993,100 $18,593,428 Percent of dollars distributed from January 1, 2010, through March 31, 2010 37.5% 36.3% 26.2% Percent of dollars distributed from January 1, 2003, through March 31, 2010 33.17% 32.87% 33.96% Total $54,090,677 $652,721 $54,743,398 100% 100% Note (1) Includes historic SDA principal and interest postings through the date of distribution (i.e., total distribution amounts). Note (2) Includes transfers to Treasury, account reclassifications, transfers to non-Indian parties and transfers to Interior’s Federal Finance System. Imaging, Coding and Digitizing Individual Indian Trust Documents OHTA completed imaging 102,250 IIM document pages, coding 13,139 IIM documents and loading 12,612 IIM documents into ART. As of March 31, 2010, ART contained 14.8 million coded IIM images and 12.5 million coded tribal images. The coded images to date total approximately 27.3 million, constituting 6.6 million IIM and tribal documents. Digitizing follows imaging and coding and involves adding the Paper Ledger Era transactional data to the electronic dataset concerning IIM and tribal records. These records may be useful for IIM reconciliation work. 6 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Office of Historical Trust Accounting Delays and Obstacles OHTA responds to information needs of SOL and DOJ in the Cobell v. Salazar litigation and 94 tribal trust cases pending in multiple federal district courts and the Court of Federal Claims. As a result, other OHTA work has received lower priority and fewer resources. Specifically, OHTA now expects that it will not be able to complete the historical accounting activities within the time frames estimated in the 2007 Plan. Assurance Statement I concur with the contents of the information contained in the Office of Historical Trust Accounting section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 22, 2010 Name: Signature on File Bert T. Edwards, Executive Director Office of Historical Trust Accounting 7 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Trust Services – Current Accounting B. TRUST SERVICES – CURRENT ACCOUNTING Introduction Current accounting activities focus on: (a) special deposit accounts; (b) whereabouts unknown accounts; and (c) small balance accounts. a. Special Deposit Account Activity Current Status BIA is responsible for distributing SDA funds received since January 1, 2003 (prospective receipts). Current SDA are those which cannot be distributed due to pending appeals of range rates and mineral leases, SOL opinions and cadastral surveys. During this reporting period, there were no receipt transactions posted to SDA that qualified in one of the exception categories. Decisions rendered on the litigation of a commercial lease and an appeal of an agricultural lease permitted the distribution of $21,307.54 and $19,045.56, respectively, during this reporting period. Remaining in current SDA is $8,045.13 pending SOL opinions. The pending amount reflects the amount of the original SDA deposit. Any interest earned is included in the amount paid at the time of distribution. b. Whereabouts Unknown Accounts Current Status OST continues to secure current addresses for account holders of the rolling top 100 highest dollar balance WAU accounts. During this reporting period, eight of the top 100 WAU accounts, with combined account balances of approximately $745,000 were updated with current addresses. During this reporting period, 5,092 accounts with a combined balance of $2.3 million were added to the WAU list, while 10,662 accounts with a combined balance of $6.6 million were updated with current addresses. As of March 31, 2010, there were 77,068 WAU accounts with a combined balance of $70.5 million, including 23 WAU accounts with balances equal to or greater than $100,000. The combined balance of these 23 WAU accounts made up 5.6% of the $70.5 million balance. IIM accounts coded as WAU earn interest in the same manner as all other IIM accounts. The following table illustrates the number of accounts stratified by account balance and WAU category. 8 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Trust Services – Current Accounting Account Balance Correspondence Check Returned Account Setup No address Awaiting Address Confirmation Refused Unclaimed Mail Fee Only Total Equal to or over $100,000 16 6 0 0 1 23 Under $100,000 and equal to or over $50,000 40 17 1 0 0 58 Under $50,000 and equal to or over $5,000 2,277 719 2 4 79 3,081 Under $5,000 and equal to or over $1,000 5,075 1,570 3 7 179 6,834 Under $1,000 and equal to or over $100 9,552 4,101 38 8 352 14,051 Under $100 and equal to or over $1 15,881 7,281 128 26 623 23,939 Under $1 11,401 17,410 85 23 163 29,082 Total 44,242 31,104 257 68 1,397 77,068 c. Small Balance Accounts Current Status As of March 31, 2010, there were 98,209 accounts with a balance of $15.00 or less (totaling $14,118.13), including 19,293 accounts with a $1.00 or less balance and no activity for the previous 18 months (totaling $5,323.03). In previous reports OST only reported on accounts with a balance of at least $.01. This report now includes accounts with zero balances, most of which were added over the last several years during OST’s conversion to TAAMS. As previously reported, this conversion required the addition of IIM accounts for land holdings with no income. Statements are sent to account holders for these accounts on an annual basis pursuant to direction from Congress. 9 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Trust Services – Current Accounting Assurance Statements I concur with the content of the information contained in the Whereabouts Unknown Accounts subsection of the Current Accounting Activities section of the Status Report to the Court Number Forty. The information provided in this subsection is accurate to the best of my knowledge. Date: April 22, 2010 Name: Signature on File Bryan Marozas Program Manager, Trust Beneficiary Call Center Office of the Special Trustee for American Indians I express no opinion on the content of the Whereabouts Unknown Accounts subsection, above. I concur with the content of the information contained in the balance of the Current Accounting Activities section of the Status Report to the Court Number Forty, and this information is accurate to the best of my knowledge. Date: April 22, 2010 Name: Signature on File Margaret Williams Deputy Special Trustee, Trust Accountability Office of the Special Trustee for American Indians 10 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Office of Trust Records C. OFFICE OF TRUST RECORDS Introduction The Office of Trust Records was established in 1999 to develop and implement a program for the economical and efficient management of trust records, consistent with the 1994 Act, the Federal Records Act and other statutes and implementing regulations. The OTR records management program has been developed and implemented, and continues to evolve, to ensure that necessary Indian records are maintained, records retention schedules are consistent with retention needs, and records are safeguarded throughout their life-cycles. The American Indian Records Repository, located in Lenexa, Kansas, was built by Interior in collaboration with NARA for the purpose of consolidating and preserving Indian records at one NARA regional records center. Accomplishments American Indian Records Repository Approximately 2,385 boxes of inactive records were moved from BIA and OST field locations to the Lenexa Annex for indexing during this reporting period. Indexing of approximately 199,935 boxes has been completed as of the end of this reporting period. 195,981 indexed boxes have been sent to AIRR for permanent storage. Training OTR provided records management training for 148 BIA and OST records contacts and 17 tribal employees during this reporting period. OTR provides records management training to Tribes as they request training. OTR initiated training specifically addressing electronic records management and trained 327 BIA and OST employees and seven tribal employees. Current Status Records Retention Schedules NARA approved two BIA electronic records schedules: Document Management Program and Facilities Management Information Systems. Several other records retention schedules for BIA and electronic records systems remain at NARA for review. OTR continued to work with NARA to provide information and/or clarification as required by NARA. 11 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Office of Trust Records Delays and Obstacles Court orders in tribal litigation cases continued to restrict movement of records to AIRR, which limits Interior’s ability to consolidate Indian records in a central location, thus hindering its ability to provide records to parties in litigation. Assurance Statement I concur with the content of the information contained in the Office of Trust Records section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 16, 2010 Name: Signature on File Ethel J. Abeita Director, Office of Trust Records Office of the Special Trustee for American Indians 12 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Trust Business Process Modeling D. TRUST ACCOUNTABILITY 1. TRUST BUSINESS PROCESS MODELING Introduction Interior is working to build a highly effective fiduciary trust services organization by implementing the business objectives contained in the Comprehensive Trust Management Plan. The CTM laid the groundwork for the development of the Fiduciary Trust Model. The FTM is being implemented to transform the current trust business processes into more efficient, consistent, integrated and fiscally responsible business processes that meet the needs and priorities of the beneficiaries. Implementation of the FTM is a collaborative effort of BIA, OST, BLM, MMS and OHA, and is integrated with Interior’s other trust reform initiatives. Accomplishments Reengineering staff completed the analysis and design phases for new trust training courses: . Introduction to Leasing Indian Trust Land . Indian Oil and Gas Management . Introduction to Administrative Indian Land Law . Rights-of-way on Indian Trust Land Current Status Reengineering staff continued to: . Provide technical support for conversion of RDRS to an oil and gas royalty management module within TAAMS. . Develop content for the new trust training courses. . Develop production data for tracking and designing a field monitoring process for wells on leased land on the Ft. Berthold Reservation. Assurance Statement I concur with the content of the information contained in the Trust Business Process Modeling section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 23, 2010 Name Signature on File Margaret Williams Deputy Special Trustee, Trust Accountability Office of the Special Trustee for American Indians 13 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Trust Data Quality and Integrity 2. TRUST DATA QUALITY AND INTEGRITY Introduction The success of trust reform depends, in part, on the accuracy of data generated from the maintenance of trust assets, ownership of trust assets, distribution of trust income, and management of trust accounts. The DQ&I project focuses on three primary initiatives. The first initiative is assisting BIA with document encoding into TAAMS leasing and title modules. The second initiative involves the validation and correction of CDE to their respective source documents. CDE are those trust data elements that are needed to provide: (1) timely and accurate payments to beneficiaries; (2) timely and accurate periodic statements of performance to beneficiaries; and (3) effective management of the assets. CDE include, but are not limited to, beneficiary name, account number, tract identification number, and land ownership interests. The third initiative is implementation of a Post-QA review process, which helps ensure ongoing accuracy of CDE by comparing TAAMS document encoding to the respective source input document. Accomplishments During this reporting period, TPMC's contractors completed the following tasks: . Encoded 1,249 land tracts in TAAMS Title (cumulative total 1,249) for Eastern Oklahoma Region LTRO. . Scanned 1,005 documents into the TAAMS TIR (cumulative total 1,005) for Palm Springs Agency. . Updated status of 9,780 beneficiary addresses as a result of a mass mailing to ensure accurate account addresses in TFAS. Current Status TPMC’s contractors continued to assist BIA and Tribes with TAAMS Leasing post-conversion cleanup efforts and daily operations by: . Conducting Post-QA review of 21,225 transactions encoded into TAAMS (cumulative total 327,838) at the BIA LTROs and the contractor’s Albuquerque office. . Researching and validating 139 land tracts (cumulative total 557) for the Confederated Salish Kootenai Tribes (Flathead Agency). . Researching 67 residential leases for cancellation (cumulative total 67), which included curing 18 leases (cumulative total 18) prior to cancellation for Palm Springs Agency. 14 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Trust Data Quality and Integrity . Researching 18,189 Multiple Owner Identification Numbers (cumulative total 18,189) for OST. . Researching ownership on 331 land tracts (cumulative total 331) for Minnesota Agency and Great Lakes Agency. . Researching ownership on 108 land tracts (cumulative total 108) for Northwest Regional Office LTRO. . Encoding 24 range permits into TAAMS Leasing (cumulative total 24) for Colville Agency. . Resolving 306 outstanding BIA Post-QA review variances (cumulative total 2,426) for the various LTROs. TPMC’s contractor also assisted FIMO with distributing an additional $16,131.43 (cumulative total of $126,118.43) to IIM account holders affected by FIMO’s oil and gas lease re-numbering issue, as previously reported. Current royalty receipts are distributed on a monthly basis. Assurance Statement I concur with the content of the information contained in the Trust Data Quality and Integrity section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 22, 2010 Name: Signature on File Nolan J. Solomon Trust Reform Specialist, Trust Accountability Office of the Special Trustee for American Indians 15 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Indian Fiduciary Trust Training Program 3. INDIAN FIDUCIARY TRUST TRAINING PROGRAM Introduction Interior has a continuing responsibility to provide adequate staffing, supervision and training for trust fund management and accounting activities. Fiduciary trust training is essential to the success of Interior’s trust reform efforts and forms an integral part of all training for Interior employees who are involved in the management of Indian trust assets. Accomplishment OTT staff initiated use of the Microsoft Live Meetings application in conducting five sessions with 328 field staff to provide guidance on new or revised desk operating procedures. This allowed employees to meet and collaborate in real time, nationwide. Current Status Cannon Financial Institute presented courses in Asset Management, Risk Management, Trust Accounting, and Indian Fiduciary Trust Principles to 47 BIA, OST, tribal, contractor, and departmental personnel. OST and BIA staff presented one Trust Fundamentals course to 22 OST, BIA, and departmental personnel. Assurance Statement I concur with the content of the information contained in the Indian Fiduciary Trust Training Program section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 22, 2010 Name: Signature on File Thomas Bird Bear Acting Director, Office of Trust Training Office of the Special Trustee for American Indians 16 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Risk Management 4. RISK MANAGEMENT Introduction The Deputy Special Trustee-Trust Accountability is responsible for overseeing OST’s risk management program, which is implemented by the Trust Program Management Center. TPMC risk management staff identify and document OST programs, policies, procedures and processes, both trust and administrative activities. TPMC staff also develop, operate and maintain riskbased management tools to support and monitor the risk levels and implementation of corrective actions. In addition, TPMC staff facilitate program reviews, which include testing of program operations, financial reports, and compliance with the law. These tests and reviews provide the basis for interim and annual statements of assurance. Accomplishment Risk management staff completed its update of RM-PLUS content for OST programs, based on revised regulations and guidance. Current Status Risk management staff continued to assist with the Interior Office of Financial Management-led intra-bureau OMB Circular A-123, Appendix A testing efforts. These efforts test key internal controls within Interior bureaus that manage Indian trust assets and also support statements of assurance. OST began testing its internal controls as part of OMB Circular A-123 requirements. As a result of the FY2009 self-assessments and testing efforts, 62 RM-PLUS corrective action plans remain open. Sixteen corrective action plans were closed during this reporting period. As previously reported, none of these CAPs were considered material enough to result in a qualified statement of assurance for OST. Assurance Statement I concur with the content of the information contained in the Risk Management section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 22, 2010 Name: Signature on File John Constable Program Analyst, Trust Accountability Office of the Special Trustee for American Indians 17 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Trust Regulations, Policies and Procedures 5. TRUST REGULATIONS, POLICIES AND PROCEDURES Introduction The Office of Trust Regulations, Policies and Procedures was established within OST on April 21, 2003, to assist Interior in establishing “consistent, written policies and procedures for trust fund management and accounting” as stated in the 1994 Act. OTP oversees and facilitates the development, promulgation and coordination of trust-related regulations, policies, procedures and other materials to guide the proper discharge of Interior’s fiduciary responsibilities. OTP is separate from the Office of Regulatory Affairs and Collaborative Action, AS-IA. RACA activities are reported in the Indian Affairs section of the report to the Court. Accomplishments OTP published 47 new or revised policies, procedures, handbooks and other documents. Current Status The TBCC procedures directive remained in the approval process. As of the end of the reporting period, OTP’s work-in-progress consisted of 64 policies, procedures, handbooks, forms and notices in varying stages of completion. OTP initiated planning, training, site development, and testing to move the electronic fiduciary library from the legacy OST trust portal to the new Microsoft SharePoint trust portal, which is scheduled for implementation by the end of this calendar year. Assurance Statement I concur with the information contained in the Office of Trust Regulations, Policies and Procedures section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 22, 2010 Name: Signature on File John Marshall, Director Office of Trust Regulations, Policies and Procedures Office of the Special Trustee for American Indians 18 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Trust Review and Audit E. TRUST REVIEW AND AUDIT Introduction OTRA reports directly to the Special Trustee for American Indians. OTRA was created by OST as a response to trust initiatives developed during the tribal consultation process of 2002. OTRA conducts performance audits, examinations and reviews of Interior entities as well as Tribes that perform fiduciary trust activities. Examinations are routinely conducted at locations that perform trust operations, resulting in a performance rating. Also, compliance reviews are undertaken in response to information and complaints received from beneficiaries, employees and the public. Current Status Indian Trust Examinations OTRA conducted six Indian trust examinations. OTRA issued eight draft reports and 16 final Indian trust examination reports. In the 16 Indian trust examination reports issued, 15 offices were rated “satisfactory” and one was rated “superior.” Records Assessments The records assessment is a focused evaluation of records maintenance and security. OTRA conducted nine records assessments and issued six final records assessment reports. OTRA also conducted one investigative records review – that found no problems – and issued an associated report. Assurance Statement I concur with the content of the information contained in the Trust Review and Audit section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 27, 2010 Name: Signature on File Larry Morrin Director, Office of Trust Review and Audit Office of the Special Trustee for American Indians 19 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Appraisals and Valuations F. APPRAISALS AND VALUATIONS Introduction OST’s Office of Appraisal Services is responsible for Indian land valuations required by various regulations governing Indian trust lands. To meet these requirements, an appraisal or other generally accepted valuation methodology is used to determine fair market value of Indian lands. OME is part of the Office of Valuation Services within the Office of the Secretary. OME is responsible for valuing the mineral estates for Indian lands required by various regulations governing Indian trust lands. To meet these requirements, various mineral economic evaluation methodologies (including comparables analyses) are performed to determine stand alone value or the contributory value to the overall fair market value of Indian lands. Accomplishments OAS transmitted 2,257 real estate appraisals to clients; of these, 1,062 were completed using the U/FAS in the Great Plains Region. In support of AIPRA probate activities and ILCP, OAS completed 5,310 appraisals. In support of ILCP, OME completed minerals assessments on 12,318 parcels. Mineral Assessment/Market Analysis Studies (or some version thereof) were performed for eight Indian reservations: Bad River (WI); Chehalis (WA); Gila River (AZ); Lac Courte Oreilles (WI); Lac du Flambeau (WI); Red Cliff (WI); Skokomish (WA); and White Earth (MN). Each report depicts which parcels were completed and which, if any, were set aside for further analysis/review for a variety of technical reasons. Out of the possible 12,352 parcels that were analyzed, 34 were set aside for further analysis. Current Status OAS completed testing for OST users of the NBC-ARRTS program. Although technical issues arose that prevented BIA user testing, OAS expects to complete BIA testing during the next reporting period. ARRTS implementation is now expected to begin on a pilot basis in the fourth quarter of FY2010. OAS initiated a series of four appraisal review courses to meet the appraisal industry’s qualification standards and meet NBC/ASD compliance audit recommendations. During this reporting period, OAS appraisers completed the first two courses. The final two courses are scheduled for the next reporting period. The position of Deputy Director of OAS has been filled by Ms. Iris Crisman. Ms. Crisman comes from the Navajo Regional Office OST/OAS where she was the Regional Supervisory Appraiser. She previously was a Senior Appraiser and also an Account Executive for the Bonneville Power Administration, Department of Energy. 20 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Appraisals and Valuations Past due requests and pending work as reported by the regions are as follows: Region Appraisals Completed This Quarter Pending Work as of 3/31/10 (includes Past Due requests) Past Due Requests As of 12/31/09 Past Due Requests As of 3/31/10 Northwest 201 858 0 0 Rocky Mountain 65 459 195 265 Midwest 20 251 9 19 Western 10 59 0 8 Southwest 30 6 0 0 Eastern Oklahoma 118 67 50 28 Navajo 33 137 6 79 Pacific 11 24 0 0 Alaska 64 150 65 14 Eastern 1 19 0 0 Southern Plains 567 201 4 0 Great Plains 1137 56 5 7 TOTAL 2257 2287 334 420 The OME Management Analyst position that had been empty for two years was filled as of March 1, 2010. This section continues on the next page. 21 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Appraisals and Valuations Assurance Statement I concur with the content of the information concerning the OME minerals assessments in the accomplishments section of the Office of Appraisal Services section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 27, 2010 Name: Signature on File Robert L. Davidoff Chief, OVS – Office of Minerals Evaluation I express no opinion on the content of the OME minerals assessments paragraphs. I concur with the content of the information contained in the balance of the Office of Appraisal Services section of the Status Report to the Court Number Forty, and this information is accurate to the best of my knowledge. Date: April 27, 2010 Name: Signature on File Eldred F. Lesansee Director, Office of Appraisal Services 22 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Trust Regulations, Policies and Procedures II. INDIAN AFFAIRS A. TRUST REGULATIONS, POLICIES AND PROCEDURES Introduction The Office of Regulatory Affairs and Collaborative Action in the Office of the Assistant Secretary – Indian Affairs is responsible for review and revision of all regulations governing Interior’s management of the Indian trust. RACA is separate from OST's Office of Trust Regulations, Policies and Procedures, whose activities are reported in the OST section of the Status Report to the Court. Current Status Regulatory Initiative – As previously reported, during the last reporting period, RACA began circulating for Departmental approval the package of revisions to the 2008 regulations related to probate processing, hearings and appeals. Updates to these regulations are necessary because, a few weeks following their publication, Congress amended the authorizing statute, the American Indian Probate Reform Act. These updates were submitted to SOL for approval. RACA now anticipates publication in the Federal Register during the next reporting period. AS–IA leadership and staff, including RACA, re-prioritized the remaining Indian trust management regulations that have been part of the regulatory initiative. The priority regulations, after probate, include provisions related to leasing, grazing, rights-of-way, and trespass. Amendments to the CFR parts regarding conveyances of trust and restricted interests, and regarding land title and records are on hold. RACA continued to engage the U.S. Institute for Environmental Conflict Resolution to facilitate working sessions throughout Indian Country on the draft leasing, grazing, rights-of-way, and trespass regulations. This consultation process is still expected to continue throughout CY2010 and to culminate in the proposal of these regulations in the Federal Register for public notice and comment. 25 CFR 200 to 207 – Minerals Leasing, Development, Exploration and Reclamation – These new CFR parts will reorganize and update current provisions related to leasing, development and exploration of minerals to increase user friendliness. The complete draft of these regulations is not expected until after the above-described priority regulations have been published; however, a renewable energy subpart will be included in the leasing regulations to establish a framework for renewable energy leasing in Indian country. 23 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Trust Regulations, Policies and Procedures Assurance Statement I concur with the content of the information contained in the Trust Regulations, Policies and Procedures – Indian Affairs section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 21, 2010 Name: Signature on File Michele F. Singer Director, Regulatory Affairs and Collaborative Action Office of the Assistant Secretary – Indian Affairs 24 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Fractionation III. BUREAU OF INDIAN AFFAIRS A. FRACTIONATION Introduction Fractionation of Indian trust and restricted land results from the federal Indian policy of the 19th century. Fractionation occurs as land passes from one generation to the next, and an increasing number of heirs or devisees acquire an undivided interest in the land. This is a complex and potentially emotion-charged issue, due primarily to cultural differences, historical legacy and family associations of the present owners with the original Indian owners of those lands. Efforts to address this complex issue have been coordinated primarily through the BIA Indian Land Consolidation Office, which has sought to help Tribes make use of the opportunities offered by the Indian Land Consolidation Act, as amended in 2004. ILCO operates several acquisition projects which purchase interests in fractionated tracts and transfer title to the Tribes. A total of 20 reservations located in seven BIA Regions have participated in ILCP. Accomplishments During this reporting period, ILCP acquired 2,026 fractional interests and 4,255.05 acreequivalents. Of the total interests acquired, 84% were interests of less than 2% ownership in the respective tracts of land. Current Status ILCO continued to review various provisions in AIPRA to develop potential alternatives to addressing fractionation. As a result of ILCP purchases, Tribes now have 100% ownership of 449 total tracts since the beginning of the program. Assurance Statement I concur with the content of the information contained in the Fractionation section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 16, 2010 Name: Signature on File Brenda Walhovd Program Specialist, Indian Land Consolidation Office Bureau of Indian Affairs 25 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Probate B. PROBATE Introduction BIA, OHA and OST must coordinate their work to complete the probates of Indian estates. Information on the status of probates is contained within the ProTrac system. Each BIA regional office and corresponding agency is responsible for opening new cases, examining initial information provided and updating case data in the ProTrac system. Current Status Case Preparation Case preparation is the initial stage of the probate process. During this stage information is researched and gathered regarding the identity and whereabouts of potential heirs, and an inventory of the trust assets of an estate is prepared. According to ProTrac, 8,543 probate cases are in the case preparation stage. BIA prepared 2,028 cases and submitted them to OHA for determination. Case Adjudication Depending on the complexity of the case or the tribal affiliation of decedents and location of trust lands, probates are adjudicated by ALJs, IPJs or ADMs, or by the State of Oklahoma district courts for estates of the Five Civilized Tribes of Oklahoma and Osage Indians. Cashonly cases with a date-of-death IIM balance of $5,000 or less are assigned initially to one of the ADM’s for summary disposition after review for completeness of the probate file. The Office of Hearings & Appeals is receiving more requests for land purchases at probate, both from Tribes and co-owners. OHA anticipates a continuing and growing need for appraisals in order to complete these purchases in a timely manner. According to ProTrac, 8,152 probate cases are pending in the case adjudication stage, which includes cases decided by OHA that are within the 45 day appeal period and cases pending in the Eastern Oklahoma state district court. As reported by OHA, 4,160 cases are awaiting a decision. OHA also reported from ProTrac that deciding officials received 2,096 cases and decided 1,953 cases. Case Closure – BIA Cases in the closing stage have been adjudicated. During this stage, if land is part of the estate, BIA updates land ownership information in TAAMS, which may entail preparing supporting documentation for distribution and closure of the estate account. According to ProTrac, 3,673 cases were pending in the case closure stage. BIA closed 1,749 cases. 26 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Probate Financial Case Closure – OST Financial case closure is the posting and recording of ownership and distribution of assets after the case has been adjudicated and land ownership information has been updated by BIA if necessary. OST reported that it distributed funds and closed 1,561 accounts in TFAS during this reporting period representing 1,544 estates. As of March 31, 2010, TFAS contained 32,496 open estate accounts, which is an increase of 1,053 from the 31,443 open estate accounts at the end of the last reporting period Delays and Obstacles The following obstacles have been identified as having an impact on the progress of the probate program: . Continued fractionation of ownership of Indian lands; . Cultural differences regarding the subject of death and funerals; . Loss of case preparation personnel/contractors; and . Initiatives compelled by the proposed Cobell litigation settlement. Assurance Statement I concur with the content of the information contained in the Probate section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 30, 2010 Name: Signature on File Adelita Guerue, Director Special Projects Chief, Probate Division Office of Trust Services Bureau of Indian Affairs 27 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Mineral Royalty Accounting and Distribution C. MINERAL ROYALTY ACCOUNTING AND DISTRIBUTION Introduction The Royalty Distribution and Reporting System maintains data about individual Indian oil and gas leasehold interests. RDRS also determines the allocation of oil and gas income – derived from trust property – to be paid to Indian beneficiaries. RDRS is a legacy system currently running on a mainframe computer at the Indian Affairs Data Center in Herndon, Virginia. The Royalty Management Oil and Gas Project Team, which includes staff from BIA, OST, and MMS, developed the Mineral Royalty Accounting and Distribution module in TAAMS. When implemented, the module is expected to streamline, standardize and provide additional functionality to support the business process for disbursing oil and gas revenue. Accomplishments The project team completed testing of the new data file provided by MMS, including resolution of data processing errors detected during testing. Current Status Testing of the MRAD module and reconciliation of RDRS distribution data continued and is expected to be completed during the fourth quarter of FY2010. Implementation is scheduled for the first quarter of FY2011. The outcome of the February 3, 2010, data comparison between RDRS and TAAMS is 601 leases, 298 tracts and 5,358 ownership interests with discrepancies. Assurance Statement I concur with the content of the information contained in the Mineral Royalty Accounting and Distribution section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 23, 2010 Name: Signature on File Charlene Toledo Associate Deputy Bureau Director Trust Services, Trust Administration Bureau of Indian Affairs 28 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Information Technology IV. OTHER TOPICS A. INFORMATION TECHNOLOGY Introduction This section describes the status of Interior IT systems, particularly trust systems. In addition, this section describes various efforts being made to improve IT security within Interior, pursuant to OMB Circular A-130 Appendix III. Accomplishments As reported in the previous status report to the court, OS was implementing eVault as a replacement for the ZANTAZ email live capture system. OS has completed this implementation and, with eVault now capturing OS email, OS has stopped using ZANTAZ as its email live capture system. Similarly, BIA and AS-IA completed implementation of eVault and subsequently discontinued live capture using ZANTAZ. ZANTAZ will continue to maintain email captured in its system. Policies and Guidance: . On February 5, 2010, the Interior CIO issued “The Department of the Interior (DOI) Enterprise Data-At-Rest (DAR) Encryption Initiative” to the bureau and office CIOs. This directive details the initiative to ensure compliance with OMB memoranda M-06-16, Protection of Sensitive Agency Information, and M-06-15, Safeguarding Personally Identifiable Information and authorizes Department-wide planning for it. . On February 24, 2010, the Interior CIO issued “Internal Control Review (ICR) Guidance for Fiscal Year (FY) 2010” to the heads of bureaus and offices. This directive provides specific guidance for IT system owners and BCISOs for conducting annual assessments of system security controls in accordance with OMB Circular A-123 and FISMA. . On March 16, 2010, the Interior CIO issued “Risk Acceptance and Approval for use of Outlook Web Access and Lotus iNotes” to the assistant secretaries and heads of bureaus and offices in his capacity as the DAA. This memo states that the DAA formally accepts the risk engendered by exempting Interior’s web-based email interfaces from remote access requirements for other Interior systems. 29 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Information Technology Reports . On March 29, 2010, the Interior CIO issued “Response to the FY 2009 FISMA Evaluation Report (Report No. ISD-EV-MOA-0001-2009)” to the Assistant Inspector General for Information Technology. This memo “provides the Department’s plan to address the thirteen (13) recommendations included in the Report…[and] acknowledges that information security remains a major challenge.” . On March 29, 2010, the Interior CIO issued “Response to the Final Report – Evaluation of Information Technology System Configuration (Report No. ISD-EV-MOA-00032009)” to the Assistant Inspector General for Information Technology. This memo “provides the Department’s planned corrective actions, anticipated milestones, and estimated completion dates to address the . . . eight (8) recommendations included in the Report.” Current Status Prevention and Monitoring: ESN perimeter security controls, which are the first line of defense, blocked over one million network attacks during this reporting period. As previously reported, DOI-CIRC continues to adhere to US-CERT incident reporting requirements and procedures. Plan of Action and Milestones: Interior continued to identify, prioritize, track and correct security weaknesses using the POA&M process. This process includes the proactive identification of weaknesses through selfassessments, independent financial audits, and findings based on OIG reports. In order to prioritize resources and remediation efforts, the risk level of each weakness is rated as high, medium, or low. . During the reporting period, Interior reported to OMB that 179 weaknesses were eliminated and 50 new weaknesses were identified and added for trust systems. . At the end of this reporting period, there were 8093 weaknesses associated with trust systems. Of the 809 open weaknesses, 57 (7%) are rated high, 534 (66%) are rated moderate and 218 (27%) are rated low. A-130 Certification and Accreditation: Except for the new OST LockBox system, which has IATO status, all trust systems that are currently tracked in CSAM have full ATO status. Training and Awareness: Interior continued the 2010 Role-Based Security Training and Security Awareness Training as required by FISMA. Incidents: 3 These statistics are not the result of a straight-line equation from one reporting period to the next. 30 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Information Technology . On February 7, 2010, an OHTA employee reported a possible theft of an unencrypted USB drive. It contained a document with seven account numbers, for either tribal trust accounts, SDAs or IIM accounts. The incident was reported to the Department of Homeland Security Federal Protective Service, who has jurisdiction over the OHTA facility. DHS interviewed individuals who potentially had access to the device, but was unable to confirm whether the device was lost or stolen. Based on an assessment of risk to potentially affected individuals or accounts, OST and OHTA determined that the information in the document was in and of itself not sensitive. Risks are further mitigated through established internal controls. These controls require individuals to provide additional identifying or authenticating information, not contained in the document, to gain access to additional account information or request transactions for these accounts. OHTA took measures to prevent similar future incidents, which included: replacement of all unencrypted USB drives at the office facility with FIPS 140-2 certified encrypted drives, logical restriction of the USB ports on all desktops within the office space to allow only connections from the encrypted drives, redaction of the official copy of the document to remove the account numbers, and communication to the entire staff of that office to remind them that documents containing sensitive data must be encrypted when stored on mobile media. Delays and Obstacles Staffing: During this reporting period: . The AS-IA Deputy CIO continued to serve as the acting BIA CIO until a replacement BIA CIO is hired. . The Director of the Enterprise Infrastructure Division was appointed to serve as the acting Department Deputy CIO until May 31, 2010. . The SOL Acting Assistant Director of Information Management continued to serve as the acting SOL CIO. Assurance Statement I concur with the content of the information contained in the Information Technology section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 27, 2010 Name: Signature on File Sanjeev (Sonny) Bhagowalia Department of the Interior Chief Information Officer 31 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Cadastral Survey B. CADASTRAL SURVEY Introduction Cadastral surveys provide assurance that land boundaries for individual Indian and tribal trust and restricted lands are identified appropriately. By federal law, surveys of Indian lands are to be performed under BLM’s direction and control and in conformity with the rules and regulations under which other public lands are surveyed. Official surveys, whether preexisting or new, identify the location of land boundaries of Indian trust assets and determine official acreage. The official surveys are integral to realty transactions, resource management activities, litigation support and the federal system of patent, allotment and land tenure records maintained by BLM, BIA and local governments. Ownership information, distribution of land-based trust assets, and management of land-based trust accounts may be related to or based upon the information recorded in official surveys. Accomplishments Survey Production BLM approved a total of 43 completed survey projects in Indian Country during this reporting period. These surveys produced 95 plats, 813 miles of survey line and an additional 1,424 survey monuments in Indian Country. Certified Federal Surveyor Program The BLM Cadastral Program deployed the CFedS program in FY2007. During this reporting period: . There were 981 professional land surveyors enrolled in the CFedS training program, and 351 CFedS certified. There were 48 states (plus DC and the Virgin Islands) represented with licensed surveyors either enrolled or certified in the program. . The CFedS web site had approximately 25,587 visits and the “Finding a CFedS” page received approximately 14,200 inquiries. . 59 new professional land surveyors started the program. . An additional continuing education course was developed, “Swamp Land Grants, Omitted Area and Island Surveys.” The course is helpful for surveying Indian land that contains a water boundary or un-surveyed areas. 32 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Cadastral Survey Current Status Implementation of the FTM The CGIS, as described in the TAAMS Spatial Pilot Project, is a key element of the FTM for enhanced management of Indian lands. The CGIS has not been implemented throughout Indian Country because of a lack of resources; however, OST, BIA, and Interior’s CIO are exploring options to fund the CGIS initiative. The Records Update and Verification Project, funded by the American Recovery and Reinvestment Act, was deployed. The project is improving positional information and verifying BLM land status records, which will help facilitate development of CGIS by private and governmental entities, including Tribes. Findings from OIG The OIG report "Department of the Interior's Management of Land Boundaries" (Audit No. CIN- MOA-OOOl-2009) “found that BLM's Cadastral Survey program has been missing the opportunity to identify and perform surveys on high risk lands where significant potential revenues could be collected by the Department and/or Indian tribes.” Among the report’s eight recommendations to BLM, OIG recommended that the boundary evidence procedures for the Department, BLM and BIA be made consistent. BLM and BIA are responding to that recommendation by drafting detailed procedures to follow those general procedures found in the Departmental Manual “Standards for Indian Trust Lands Boundary Evidence” (303 DM 7). OIG also recommended that BIA and tribal employees receive training comparable to that received by BLM employees at the National Training Center. BLM’s April 2, 2010, response concurred with seven of OIG’s recommendations and suggested a modification of one recommendation. Delays and Obstacles Funding of the FTM Proper planning, scheduling and implementation of future FTM work are dependent on funding. The reduced level of funding in Interior’s FY2010 appropriation – $300,000 less than FY2009 – continued to impact negatively the implementation of the FTM initiatives. Planning survey projects involves long-term commitment of professional services. Uncertainty of funding impacts the planning for resources, which increases overall costs. For example, if enacted, the proposed FY2011 decrease of $13,000,000 in the budget for the Alaska Conveyance Program – which transfers federal land to Alaska Natives, Alaska Native corporations, and the state of Alaska – will dramatically increase the time-line for those conveyances. 33 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Cadastral Survey Assurance Statement I concur with the content of the information contained in the Cadastral Survey section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 30, 2010 Name: Signature on File Donald A. Buhler Chief Cadastral Surveyor Bureau of Land Management 34 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Minerals Management Service C. MINERALS MANAGEMENT SERVICE Introduction Minerals Revenue Management, an MMS program, is responsible for collecting, accounting for, and distributing mineral revenues from both federal and Indian mineral leases, and for evaluating industry compliance with laws, regulations and lease terms. MRM maintains reported information and distributes revenues at the lease level. BIA maintains individual Indian ownership records that are used to provide information to OST for disbursement of the lease revenues to individual Indian beneficiaries. Current Status Indian Oil Valuation Rule As previously reported, MMS expects to address issues regarding the “major portion” calculation for oil produced from Indian leases in a Negotiated Rulemaking Committee following Departmental review and decision. Assurance Statement I concur with the content of the information contained in the Minerals Management Service section of the Status Report to the Court Number Forty. The information provided in this section is accurate to the best of my knowledge. Date: April 16, 2010 Name: Signature on File Shirley M. Conway Special Assistant to the Associate Director Minerals Revenue Management Minerals Management Service 35 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Acronyms and Abbreviations ACRONYMS AND ABBREVIATIONS 1994 Act (or Act) American Indian Trust Fund Management Reform Act of 1994 2007 Plan Plan for Completing the Historical Accounting of Individual Indian Money Accounts A-123 Office of Management and Budget Circular A-123, Management’s Responsibility for Internal Control A-130 Office of Management and Budget Circular A-130 Appendix III ACSM American Congress on Surveying and Mapping ADM Attorney Decision Makers AFMSS Automated Fluid Mineral Support System AIMS ActivCard Identity Management System AIPRA American Indian Probate Reform Act AIRR American Indian Records Repository ALIS Alaska Land Information System ALJ Administrative Law Judges ARO Alaska Regional Office ARRA American Recovery and Reinvestment Act ARRTS Appraisal Request and Review Tracking System ART Accounting Reconciliation Tool AS-IA Assistant Secretary-Indian Affairs ASD Appraisal Services Directorate ASM Accounting Standards Manual ATLAS AgWare Trust Land Appraisal System ATO Authority to Operate BCISO Bureau Chief Information Security Officer (formerly BITSM) BIA Bureau of Indian Affairs BIAM Bureau of Indian Affairs Manual BILS BLM Indian Lands Surveyors BISS Box Index Search System BITSM Bureau Information Technology Security Manager BLM Bureau of Land Management BOR Bureau of Reclamation BPA Blanket Purchase Agreement BRM Business Reference Model C&A Certification and Accreditation CAP Corrective Action Plan CARS Cadastral Automated Request System CBS San Carlos Irrigation Continental Billing System CDE Critical Data Elements CFedS Certified Federal Surveyor CFI Continuous Forest Inventory CGI Software vendor for TAAMS CGIS Cadastral Geographic Information Systems CI Manual Coding and Imaging Manual 36 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Acronyms and Abbreviations CIFTA Certified Indian Fiduciary Trust Analyst CIFTS Certified Indian Fiduciary Trust Specialist CIO Chief Information Officer CIRC Computer Incidents Response Center CISO Chief Information Security Officer CISSP Certified Information System Security Professional CITE Certified Indian Trust Examiners CMS Credential Management System COTS Commercial Off-The-Shelf CP&R Check Payment and Reconciliation CPIC Capital Planning and Investment Control CREUMS Colorado River Electrical Utility Management System CSAM Cyber Security Assessment and Management CSIRC Computer Security Incident Response Capability CSIRT Computer Security Incident Response Team CSS Customer StrataStation CTM Comprehensive Trust Management Plan DAA Designated Approving Authority DCV Data Completeness Validation DEAR DOI Enterprise Architecture Repository DDoS Distributed Denial of Service DLRM DOI Land and Resource Management DM Departmental Manual DMZ De-Militarized Zone DNS Domain Name Server DOI Department of the Interior DOP Desk Operating Procedure DoS Denial of Service DQ&I Data Quality and Integrity DRM Data Reference Model EA Enterprise Architecture ENA Eastern Navajo Agency EORO Eastern Oklahoma Regional Office ERA Electronic Records Era ERO Eastern Regional Office ESN Enterprise Services Network ETP Enterprise Transition Plan eVault Enterprise Vault FAMS Facilities Asset Management System FAR Federal Acquisition Regulation FBMS Financial Business Management System FDCC Federal Desktop Core Configuration FFMIA Federal Financial Management Improvement Act FIMO Farmington Indian Minerals Office FIPS Federal Information Processing Standards 37 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Acronyms and Abbreviations FISMA Federal Information Security Management Act FMFIA Federal Managers’ Financial Integrity Act FOIA Freedom of Information Act FRC Federal Records Center FRD Functional Requirements Document FTM Fiduciary Trust Model FTO Fiduciary Trust Officer FWS U.S. Fish and Wildlife Service GAO Government Accountability Office GCDB Geographic Coordinate Data Base GIS Geographic Information System GLO General Land Office GLADS Great Lakes Agency Database System GPRO Great Plains Regional Office GPS Global Positioning System GSA General Services Administration GSS General Support Systems HSA Historical Statement of Account HSPD-12 Homeland Security Presidential Directive 12 IAM Indian Affairs Manual IATO Interim Approval to Operate ICR Internal Control Review ICRs Information Collection Requests IEA Interior Enterprise Architecture IEMSC Indian Energy & Mineral Steering Committee IFTR Indian Fiduciary Trust Records IG Inspector General IIM Individual Indian Money IITD Individual Indian Trust Data ILCA Indian Land Consolidation Act ILCO Indian Land Consolidation Office ILCP Indian Land Consolidation Project IM Instruction Memorandum IMDA Indian Mineral Development Act InfoDat Indian Forestry Database Interior Department of the Interior IP Internet Protocol IPJ Indian Probate Judge IPS Intrusion Protection System IPv6 Internet Protocol Version 6 IQCS Incidence Qualification and Certification System IRM Information Resources Management IRMS Integrated Records Management System IRN Isolated Realty Network IRS Internal Revenue Service 38 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Acronyms and Abbreviations ISSDA Indian Service Special Disbursing Agent ISA Information Security Assessment ISIT Internal Security Improvements Team IT Information Technology ITARS Indian Trust Appraisal Request Tracking System ITIMS Integrated Transportation Information Management System ITRS Indian Trust Rating System IV&V Independent Verification and Validation LAN Local area network LCTS Land Consolidation Tracking System LMS Learning Management System LR2000 Legacy Rehost 2000 System LRIS Land Records Information System LTIC Land Tenure in Indian Country LTRO Land Titles and Records Office MA Major Application MAD/LCP Management Accounting Distribution/Land Consolidation Program MADS Management Accounting Distribution System MMD Missing Mandatory Documents for Unrestricted Accounts MMS Minerals Management Service MOU Memorandum or Memoranda of Understanding MRAD Mineral Royalty Accounting and Distribution MRM Minerals Revenue Management MRMSS Minerals Revenue Management Support System MWRO Midwest Regional Office NARA National Archives and Records Administration NBC National Business Center NFR Notice of Findings and Recommendations NILS National Integrated Lands System NIOGEMS National Indian Oil and Gas Evaluation and Management System NIPTC National Indian Programs Training Center NIRMC National Information Resource Management Center NIST National Institute of Standards and Technology NORC National Opinion Research Center NPS National Park Service NRO Navajo Regional Office NWRO Northwest Regional Office O&G Oil and Gas OAS Office of Appraisal Services OCIO Office of the Chief Information Officer OHA Office of Hearings and Appeals OHTA Office of Historical Trust Accounting OIG Office of the Inspector General OIP Office of Information Policy OISP Office of IT Security and Privacy 39 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Acronyms and Abbreviations OMB Office of Management and Budget OME Office of Minerals Evaluation within NBC ORM Office of Regulatory Management OSM Office of Surface Mining OST Office of the Special Trustee for American Indians OTFM Office of Trust Funds Management OTP Office of Trust Regulations, Policies and Procedures OTR Office of Trust Records OTRA Office of Trust Review and Audit OTT Office of Trust Training OVS Office of Valuation Services PACER Payments, Accounting, Claims and Enhanced Reconciliation System PAR Performance and Accountability Report PII Personally Identifiable Information PIV Personal Identity Verification PLSS Public Land Survey System PMB Policy, Management and Budget PMSO Project Management Support Office POA&M Plans of Actions and Milestones Post-QA Post Quality Assurance PPA Office of Planning and Policy Analysis PRIS Production and Response Information System PRO Pacific Regional Office ProTrac Probate Case Management and Tracking System QA Quality Assurance QC Quality Control RAF Recommended Action Forms RAS Rangeland Administration System RACA Regulatory Affairs and Collaborative Action RDRS Royalty Distribution and Reporting System REM Real Estate Module RFP Request for Proposal RM-PLUS Risk Management Assessment/Evaluation tool RMRO Rocky Mountain Regional Office ROCIS Regulatory Information Service Center/Office of Information Regulatory Affairs Consolidated Information ROW Rights-of-Way SANS SysAdmin, Audit, Network, Security SCADA Supervisory Control and Data Acquisition SDA Special Deposit Accounts SDLC System Development Life Cycle SMEs Subject Matter Experts SMS System Management Servers SOL Office of the Solicitor SOW Statement-of-Work 40 STATUS REPORT TO THE COURT NUMBER FORTY May 3, 2010 Acronyms and Abbreviations SPRO Southern Plains Regional Office SSA Social Security Administration SSAS Social Services Automated System SSM System Security Manager SSP System Security Plan ST&E Security Test and Evaluation STIGs Security Technical Implementation Guides SUS System Update Servers SWRO Southwest Regional Office TAAMS Trust Asset and Accounting Management System TAP Technical Architecture Profile TBCC Trust Beneficiary Call Center TCIS Treasury Check Information System TESC Trust Executive Steering Committee TFAS Trust Funds Accounting System TFR Trust Funds Receivable TIR Trust Image Repository TPMC Trust Program Management Center TRAC Trust Tracking and Coordination Treasury Department of the Treasury TRM Technical Reference Model TRO Temporary Restraining Order TSPP TAAMS Spatial Pilot Project U/FAS Undivided/Fractionated Appraisal System UAT User Acceptance Testing US-CERT United States Computer Emergency Readiness Team USGS United States Geological Survey USPAP Uniform Standards of Professional Appraisal Practice VBNS Very High Performance Backbone Network Service VPN Virtual Private Network WAN Wide Area Network WAU Whereabouts Unknown WRO Western Regional Office 41