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’ THIRTY-NINTH STATUS REPORT Interior Defendants hereby give notice of the filing of their thirty-ninth report due in accordance with the Order of December 21, 1999. A copy of the report is attached hereto. Dated: February 1, 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 February 1, 2010 the foregoing Notice of Filing of Interior Defendants’ Thirty-Ninth 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 JAN 262010 J. Christopher Kohn U.S. Department of Justice Civil Division Commcrcial Litigation Branch P.O. Box 875 Ben Franklin Station Washington, D.C. 20044-0875 Re: Cobell v. Salazar -Status Report to the Court Number Thirty-Nine Dear Mr. Kohn: Enclosed is the Department of the Interior's Status Report to the Court Number Thirty-Nine ((or the Period October 1,2009 through December 31, 2009). Please forward a copy to the Court. My signature on this report reflects my reliance on the assurances of those who have compiled the repmi that the information contained herein is accurate. Thank you for your assistance. Sincerely, ~."2~ Enclosure Status Report to the Court Number Thirty-Nine For the Period October 1, 2009 through December 30, 2009 February 1, 2010 February 1, 2010 Table of Contents TABLE OF CONTENTS INTRODUCTION......................................................................................................................... 1 I. OFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIANS ......................... 3 A. OFFICE OF HISTORICAL TRUST ACCOUNTING ............................................... 5 B. TRUST SERVICES – CURRENT ACCOUNTING ................................................. 11 C. OFFICE OF TRUST RECORDS ............................................................................... 15 D. TRUST ACCOUNTABILITY .................................................................................... 17 1. TRUST BUSINESS PROCESS MODELING ....................................................... 17 2. TRUST DATA QUALITY AND INTEGRITY ..................................................... 19 3. INDIAN FIDUCIARY TRUST TRAINING PROGRAM .................................... 21 4. RISK MANAGEMENT ........................................................................................... 23 5. TRUST REGULATIONS, POLICIES AND PROCEDURES ............................. 25 E. TRUST REVIEW AND AUDIT ................................................................................. 27 F. OFFICE OF APPRAISAL SERVICES ..................................................................... 29 II. INDIAN AFFAIRS.............................................................................................................. 31 A. TRUST REGULATIONS, POLICIES AND PROCEDURES ................................. 31 III. BUREAU OF INDIAN AFFAIRS .................................................................................. 33 A. FRACTIONATION ..................................................................................................... 33 B. PROBATE..................................................................................................................... 35 C. MINERAL ROYALTY ACCOUNTING AND DISTRIBUTION........................... 37 IV. OTHER TOPICS ............................................................................................................. 39 A. INFORMATION TECHNOLOGY ............................................................................ 39 B. CADASTRAL SURVEY.............................................................................................. 43 C. MINERALS MANAGEMENT SERVICE ................................................................ 45 ACRONYMS AND ABBREVIATIONS ................................................................................... 47 February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 2010 Introduction INTRODUCTION This Status Report to the Court Number Thirty-Nine (Report) represents the period from October 1, 2009, through December 31, 2009. 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 Historical Trust Accounting, Office of the Special Trustee for American Indians, Office of the Chief Information Officer, 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. February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 2010 Office of the Special Trustee for American Indians I. OFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIANS During this reporting period, the parties to the Cobell litigation announced a settlement, which requires legislation and Court approval. Interior managers and staff began evaluation of resource requirements to implement the settlement agreement. In conjunction with the settlement announcement, Secretary Salazar also established, by Secretarial Order 3292, the framework for a Secretarial Commission on Indian Trust Administration and Reform to oversee future management and administration of trust assets. Date: January 22, 2010 Name: Signature on File Donna Erwin Principal Deputy Special Trustee for American Indians February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 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 DCV tests and interest recalculations, as described below, were completed on an additional 14,723 and 20,424 Land-Based IIM accounts, respectively. Thus, in accordance with OHTA’s 2007 Plan, HSAs reflecting Electronic Ledger Era activity can now be prepared for 220,564 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. In addition to the items below, a report was completed during this reporting period summarizing the progress and findings of the DCV tests for all 12 BIA Regions. 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 December 31, 2009, 99.7% of the transactions in the dataset had been mapped. During this reporting period, transaction mapping for 1,108,125 transactions was completed. Of these, 36,670 were pre-December 31, 2000, transactions. The number of transactions that require mapping increases as IRMS transactions are restored to the dataset and current-period 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. 2 TCIS replaced CP&R on May 1, 2006. February 1, 2010 Office of Historical Trust Accounting As previously reported, the mapping of the PACER data through March 31, 2008, is 100% complete. The mapping of the CP&R data through April 30, 2006, is 99.7% complete. Treasury continued to work on providing OHTA with TCIS data. Once TCIS data are received, OHTA will extend its disbursement mapping. 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, 11 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 December 31, 2009, 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 has 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 current period 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 56,770,014 transactions to date, including 340,664 restored transactions. OHTA also has identified 3,452,992 IRMS account balance records, including 364,088 restored balances, of which 5,095 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 76,299,895 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. February 1, 2010 Office of Historical Trust Accounting OHTA continued interest recalculation work for IIM accounts in all BIA Regions. During this reporting period, an additional 20,424 accounts were completed, for a cumulative total of 231,714 tested accounts within all 12 BIA Regions. The accuracy of interest postings is quality-control checked by a professional accounting firm not involved in the interest recalculation effort. Paper Ledger Era Reconstruction of Paper Ledger Era IIM Accounts OHTA continued to research and examine IIM records from the Paper Ledger Era to determine the accuracy and reliability of transactions that should be included in HSAs. OHTA has made progress reconstructing accounts in each of the 12 BIA Regions. OHTA’s Paper Ledger Era database contains 333,766 transactions to date, of which 1,720 were digitized during this reporting period. Based on all Paper Ledger Era sampled accounts reconstructed and transactions digitized thus far for the Southern Plains Region, the estimated transaction population is 2.3 million and the estimated dollar throughput is $900 million respectively. 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 continued to search for documents and reconcile these transactions. Of these 250 transactions, 177 have been reconciled. 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 $434,129 of SDA balances, including interest, which raised the total dollars resolved and funds distributed as of December 31, 2009, to $54.1 million. As of December 31, 2009, a total of 10,524 OHTA SDA, involving $15,396,301 (plus interest through December 31, 2002), remained to be resolved and distributed. Of those remaining SDA, 71.9% had balances as of December 31, 2002, of less than $500 each, involving 4.0% of the remaining undistributed dollars. February 1, 2010 Office of Historical Trust Accounting 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. 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 September 30, 2009 $17,592,739 $17,661,692 $18,402,117 Dollars distributed from October 1, 2009, through December 31, 2009 $319,226 $94,554 $20,349 Dollars distributed from January 1, 2003, through December 31, 2009 $17,911,965 $17,756,246 $18,422,466 Percent of dollars distributed from October 1, 2009, through December 31, 2009 73.53% 21.78% 4.69% Percent of dollars distributed from January 1, 2003, through December 31, 2009 33.1% 32.8% 34.1% Total $53,656,548 $434,129 $54,090,677 100% 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. February 1, 2010 Office of Historical Trust Accounting Imaging, Coding and Digitizing Individual Indian Trust Documents OHTA completed imaging 661,392 IIM document pages, coding 177,233 IIM documents and loading 147,386 IIM documents into ART. As of December 31, 2009, ART contained 14.7 million coded IIM images and 11.8 million coded tribal images. The coded images to date total approximately 26.5 million, constituting 6.3 million IIM and tribal documents. Digitizing follows imaging and coding and involves adding the Paper Ledger Era transaction data to the electronic dataset. During this reporting period, OHTA digitized 5,813 balance file records, for a total of 263,782 balance file records digitized. OHTA also digitized 177 Paper Ledger Era transactions for litigation involving the Ft. Belknap Tribe. These records may be useful for IIM reconciliation work. 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 25, 2010 Name: Signature on File Bert T. Edwards, Executive Director Office of Historical Trust Accounting February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 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 17 receipt transactions posted to SDA that qualified in one of the exception categories. Remaining in current SDA are: $40,353.10 pending litigation on a commercial lease and an appeal on an agricultural lease; and $8,045.13 pending SOL opinions. A decision was made during this reporting period on the appeal of the agricultural lease that will permit the distribution of $19,045.56 during the next reporting period. The pending amounts reflect the amount of the original SDA deposit. Any interest earned is included in the amount paid at the time of distribution. OST and OHTA agreed that $96,085.23 awaiting SOL opinions and $7,044.45 awaiting cadastral surveys that were previously reported in this section of the Status Report to the Court will now be reported by OHTA to prevent duplicate reporting. 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, 11 of the top 100 WAU accounts, with combined account balances of approximately $1.0 million were updated with current addresses. During this reporting period, 7,273 accounts with a combined balance of $4.1 million were added to the WAU list, while 8,549 accounts with a combined balance of $7.6 million were updated with current addresses. As of December 31, 2009, there were 82,638 WAU accounts with a combined balance of $71.7 million. Currently there are 24 WAU accounts with balances greater than $100,000. The combined balance of these 24 WAU accounts makes up 6% of the current $71.7 million February 1, 2010 Trust Services – Current Accounting combined WAU account 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. Account Balance Correspondence Check Returned Account Setup No address Awaiting Address Confirmation Refused Unclaimed Mail Fee Only Total Equal to or over $100,000 13 10 0 0 1 24 Under $100,000 and equal to or over $50,000 35 22 1 0 0 58 Under $50,000 and equal to or over $5,000 2,344 719 1 3 79 3,146 Under $5,000 and equal to or over $1,000 5,312 1,529 5 9 180 7,035 Under $1,000 and equal to or over $100 9,917 4,263 44 10 360 14,594 Under $100 and equal to or over $1 16,891 8,497 144 25 646 26,203 Under $1 10,875 20,415 93 20 175 31,578 Total 45,387 35,455 288 67 1,441 82,638 c. Small Balance Accounts Current Status As of December 31, 2009, there were 20,998 accounts with a $.01 - $1.00 balance and no activity for the previous 18 months. The total in those accounts was $5,919.03. Statements are sent to account holders for these accounts on an annual basis pursuant to direction from Congress. February 1, 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 Thirty-Nine. The information provided in this subsection is accurate to the best of my knowledge. Date: January 15, 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 Thirty-Nine, and this information is accurate to the best of my knowledge. Date: January 21, 2010 Name: Signature on File Margaret Williams Deputy Special Trustee, Trust Accountability Office of the Special Trustee for American Indians February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 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 3,165 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 197,630 boxes has been completed as of the end of this reporting period. 194,198 indexed boxes have been sent to AIRR for permanent storage. Training OTR provided records management training for 112 BIA and OST records contacts and 34 tribal employees during this reporting period. OTR provides records management training to Tribes as they request training. Current Status Records Retention Schedules As previously reported, several records retention schedules for BIA electronic records systems remain at NARA for review. OTR continued to work with NARA to provide information and/or clarification as required by NARA. Delays and Obstacles Court orders in tribal litigation cases continue 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. February 1, 2010 Office of Trust Records 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January13, 2010 Name: Signature on File Ethel J. Abeita Director, Office of Trust Records Office of the Special Trustee for American Indians February 1, 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: . Produced six NIOGEMS oil and gas maps that identified new well site locations for the Ft. Berthold Agency. . Provided week-long on-site support to the Ft. Berthold Agency and the Indian Minerals Office at New Town, ND. This included technical assistance on TAAMS lease reports and Indian trust query module reports for oil and gas activities. . Modified the Indian trust query module reports based on input received from user requirements and completed testing of the module functionality. . Completed training courses on “Instructional Systems Design” and “Developing Training Materials” in order to provide support and serve as subject matter experts to OTT for curriculum development. Current Status Reengineering staff: . Transmitted the LTRO Handbook working draft to BIA for finalization. . Continued to provide technical support for identifying system requirements for various TAAMS modules. . Continued to provide technical support for conversion of RDRS to an oil and gas royalty management module within TAAMS. . Initiated the analysis, design and development of content outlines for potential training courses. . Continued development of production data in order to track and design a field monitoring process for wells on leased land on the Ft. Berthold Reservation. February 1, 2010 Trust Business Process Modeling 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 21, 2010 Name: Signature on File Margaret Williams Deputy Special Trustee, Trust Accountability Office of the Special Trustee for American Indians February 1, 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 266 land tracts in TAAMS Title (cumulative total 266) for Bristol Bay, Doyon, Calista, Bering Straits, Cook Inlet, Sealaska, Arctic Slope, Nana, Ahtna, Aleut, Chugach and Koniag Regional Corporations for ARO LTRO. . Encoded 266 realty documents in TAAMS Leasing (cumulative total 266) for Zuni Agency, Ramah Agency, Southern Ute Agency, Ute Mountain Agency and Northern Pueblos Agency. 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 10,119 transactions encoded into TAAMS (cumulative total 306,613) at the BIA LTROs and the contractor’s Albuquerque office. . Researching and validating 118 land tracts (cumulative total 418) for the Confederated Salish Kootenai tribes (Flathead Agency). . Researching 67 residential leases for cancellation (cumulative total 67) and scanning 378 leases into the TAAMS Trust Image Repository (cumulative total 378) for Palm Springs Agency. February 1, 2010 Trust Data Quality and Integrity . Resolving 220 outstanding BIA Post-QA review variances (cumulative total 2,120) for the various LTROs. TPMC’s contractor also assisted FIMO with distributing an additional $15,349.92 (cumulative total of $109,987.00) 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 15, 2010 Name: Signature on File Nolan J. Solomon Trust Reform Specialist, Trust Accountability Office of the Special Trustee for American Indians February 1, 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 During this reporting period, OTT staff completed training courses in “Instructional Systems Design” and “Developing Training Materials.” These courses strengthened OTT’s ability to design and develop new trust training curriculum. Current Status Cannon Financial Institute presented courses in Investment Fundamentals, Fiduciary Behavior, Probate, Asset Management, Risk Management, Guardianships, and Indian Fiduciary Trust Principles to 96 BIA, OST, tribal, contractor, and departmental personnel. In addition, the Cannon Review and Exam was delivered for two BIA and eight OST employees for the “Cannon Indian Fiduciary Trust Specialist” designation. OTT and OST Field Operations staff conducted three Accounting Technician Training sessions for 37 OST employees and one tribal employee. 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 15, 2010 Name: Signature on File Thomas Bird Bear Acting Director, Office of Trust Training Office of the Special Trustee for American Indians February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 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 risk-based 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 OST’s interim and annual statements of assurance. Current Status Risk management staff continued to evaluate and update RM-PLUS content for OST programs to determine where modifications were needed based on revised regulations and guidance. OST began 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 have oversight of Indian trust assets and provide further support for statements of assurance. As a result of the FY2009 self-assessments and testing efforts, 78 RM-PLUS corrective action plans remain open. 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 Thirty-Nine The information provided in this section is accurate to the best of my knowledge. Date: January 15, 2010 Name: Signature on File John Constable Program Analyst, Trust Accountability Office of the Special Trustee for American Indians February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 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 25 new or revised policies, procedures, handbooks and other documents. OTP completed programming and user testing for seven standardized reports for the policy and procedures tracking system. 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 56 policies, procedures, handbooks, forms and notices in varying stages of completion. 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 15, 2010 Name: Signature on File John Marshall, Director Office of Trust Regulations, Policies and Procedures Office of the Special Trustee for American Indians February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 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 three Indian trust examinations. OTRA issued sixteen draft reports and ten final Indian trust examination reports. In the ten Indian trust examination reports issued, nine offices were rated “satisfactory,” and one agency was rated “in need of improvement.” For the agency in need of improvement, OTRA reported two findings in Asset Management and four findings in Compliance. Records Assessments The records assessment is a focused evaluation of records maintenance and security. OTRA conducted 12 records assessments and issued 11 final records assessment reports. 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 15, 2010 Name: Signature on File Larry Morrin Director, Office of Trust Review and Audit Office of the Special Trustee for American Indians February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 2010 Office of Appraisal Services F. OFFICE OF APPRAISAL SERVICES Introduction The 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. Accomplishments OAS transmitted 1,536 real estate appraisals to clients; of these, 434 were completed using U/FAS in the Great Plains Region. OME, within NBC, completed minerals assessments for 95 parcels of the L’Anse Reservation in support of ILCO and 29 parcels within the Eastern Oklahoma Region for probate-related activities. Current Status Actual testing by OAS and BIA of the NBC-ARRTS program was again delayed due to organizational changes. Testing is now expected to be completed during the next reporting period, with implementation planned for the third quarter of FY2010. OAS has established a plan and a cost estimate for meeting a dramatic increase in appraisal requests under ILCP, which is anticipated under the proposed Cobell settlement. A series of six tribal consultations on OAS’s project to revise tribal-shares funding allocations were held in FY2009. OAS has reconciled and analyzed comments and available options and expects to propose options to OST management during the next reporting period. This section continues on the next page. February 1, 2010 Office of Appraisal Services Overdue Requests and pending work as reported by the regions are as follows: Region Appraisals Completed This Quarter Pending Work as of 12/31/09 (includes overdue requests) Overdue Requests As of 09/30/09 Overdue Requests As of 12/31/09 Northwest 161 290 0 0 Rocky Mountain 62 268 30 195 Midwest 59 161 13 9 Western 62 17 8 0 Southwest 33 32 6 0 Eastern Oklahoma 96 86 47 50 Navajo 56 125 0 6 Pacific 116 6 0 0 Alaska 29 186 0 65 Eastern 7 10 0 0 Southern Plains 329 430 1 4 Great Plains 526 35 15 5 TOTAL 1,536 1,646 120 334 Assurance Statement I concur with the content of the information contained in the Appraisal section of the Status Report to the Court Number Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 20, 2010 Name: Signature on File Eldred F. Lesansee Deputy Chief Appraiser Office of Appraisal Services February 1, 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 – During this 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. RACA anticipates obtaining all necessary Departmental approvals in time to allow for publication in the Federal Register during the next reporting period. RACA continued to work with SOL and subject matter experts to revise the CFR parts regarding conveyances of trust and restricted interests and land title and records; however, publication of these regulations is not planned until the probate updates have been finalized. 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 will continue throughout 2010 and 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. As previously reported, a complete draft of these regulations is not expected until later in CY2010. February 1, 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 19, 2010 Name: Signature on File Michele F. Singer Director, Regulatory Affairs and Collaborative Action Office of the Assistant Secretary – Indian Affairs February 1, 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 14 fractional interests and 3.17 acre-equivalents. Of the total interests acquired, 84% were interests of less than 2% ownership in the respective tracts of land. Current Status ILCO is reviewing the tools in AIPRA to develop potential alternatives to addressing fractionation. As a result of ILCP purchases, Tribes now have 100% ownership of 447 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 13, 2010 Name: Signature on File Brenda Walhovd Program Specialist, Indian Land Consolidation Office Bureau of Indian Affairs February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 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, 7,514 probate cases are in the case preparation stage. Of those, 528 cases await completion of an inventory. 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. Cash-only 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, 5,434 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, 4,017 cases are awaiting a decision. OHA also reported that deciding officials received 1,685 cases and decided 1,637 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, 2,567 cases were pending in the case closure stage. BIA closed 2,144 cases. February 1, 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 4,002 accounts in TFAS during this reporting period representing 3,947 estates. As of December 31, 2009, TFAS contained 31,443 open estate accounts, which is a decrease of 1,150 from the 33,099 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; and . Loss of case preparation personnel/contractors. Assurance Statement I concur with the content of the information contained in the Probate section of the Status Report to the Court Number Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 13, 2010 Name: Signature on File Adelita Guerue, Director Special Projects Chief, Probate Division Office of Trust Services Bureau of Indian Affairs February 1, 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 During this reporting period, MRAD training was completed. Current Status Testing of the MRAD module and reconciliation of RDRS distribution data continued. 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 14, 2010 Name: Signature on File Charlene Toledo Associate Deputy Bureau Director Trust Services, Trust Administration Bureau of Indian Affairs February 1, 2010 THIS PAGE INTENTIONALLY BLANK February 1, 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 Policies and Guidance: On December 22, 2009, the Interior CIO issued “Fiscal Year 2010 Annual End-User Federal Information Systems Security Awareness + Privacy and Records Management Training” to the bureau and office Chief Information Officers. This memorandum requires all users of Interior information systems to complete this training by July 31, 2010. Current Status Archiving software deployment: The Office of the Secretary is deploying the Enterprise Vault archiving software to aid in the migration of its email infrastructure from Lotus Notes/Domino to Microsoft Exchange. eVault is expected to archive all present and past Lotus Notes email, archive all present and future Microsoft Exchange email, enable faster backups, and improve disaster recovery. It is expected to also provide upgraded security, manageability, and search capabilities for retrieval of email, as well as other business content, to meet legal and regulatory compliance requirements. eVault has the same capabilities as ZANTAZ and could, in the future, replace ZANTAZ. 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 self-assessments, 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 152 weaknesses were eliminated and 1 new weakness was identified and added for trust systems. February 1, 2010 Information Technology . At the end of this reporting period, there were 9713 weaknesses associated with trust systems. Of the 971 open weaknesses, 55 (6%) are rated high, 658 (68%) are rated moderate and 258 (26%) are rated low. A-130 Certification and Accreditation: All trust systems that are currently tracked in CSAM have full ATO status. Reports: On November 16, 2009, OIG issued “FY 2009 FISMA Evaluation Report” (Report No. ISD-EV­MOA-0001-2009). The report states that DOI "does not fully comply with the Federal Information Security Management Act (FISMA) again this year. The decentralized organizational structure, fragmented governance processes related to the Information Technology (IT) program, lack of oversight, bureau resistance to Departmental guidance, and use of substantially under-qualified personnel to perform significant information security duties exasperates [sic exacerbates] the challenges in securing the Department's information and information systems." It made thirteen recommendations: . Realign the Department CIO to report directly to the Secretary of the Interior as required by 44 U.S.C. section 3506(a)(2)(A). . Realign personnel performing significant responsibilities for information security under the purview of the Department CIO. . Performance of significant information security duties should be consolidated and centralized to improve consistency, enhance efficiency, and reduce cost. . Rescind memorandum, Information Technology Resources Management, dated August 7, 2002, and Secretarial Order 3244. . Realign authority necessary to ensure compliance with FISMA under the purview of the Department CIO. . Realign incident response resources under the purview of the Department CIO. . Fully staff the incident response capability. . Standardize incident response tools and procedures. . Design and implement a standardized comprehensive and consolidated continuous monitoring program, to include continuous monitoring tools, processes, and procedures. . Establish and enforce minimum qualifications requirements for all personnel performing significant information security duties. . Implement FDCC guidelines as required by federal policy. Configurations should be standardized across the Department to improve efficiency and reduce costs. Implementation should include limiting the ability of end-users to change the configuration and [enhancing] the Department's ability to monitor for unauthorized changes. . The Department should routinely conduct testing and inspections, as well as ensure CIO guidance is fully implemented. The Department should verify POA&Ms are resolved as reported. 3 These statistics are not the result of a straight-line equation from one reporting period to the next. February 1, 2010 Information Technology . Establish and enforce standards for C&A package documentation in CSAM. Ensure consistency between the DEAR and CSAM systems. On November 10, 2009, the Interior CIO issued “FY 2009 Annual Assurance Statement on Internal Controls” to the Deputy Assistant Secretary - Human Capital, Performance, and Partnerships, the Deputy Assistant Secretary - Budget and Business Management, and the Director - Office of Financial Management. This memorandum “constitutes the summary assessment attesting to the adequacy of bureau, office, and departmental (common) controls related to information systems and information security programs” in Fiscal Year 2009. The CIO’s assurance statement was informed by bureau/office assurance statements, compliance evaluation and assessment activities conducted by the Department, and the OIG’s evaluations and reports. It acknowledged the OIG’s assertion of a significant deficiency; however, it concluded that for FY2009, in consideration of all available information and the apparent adequate level of compliance reflected in the OIG annual FISMA report as compared to prior years, Interior was generally compliant with FISMA. He recommended the Department declare a weakness/deficiency relative to insufficient Department CIO authorities and the need to strengthen IT and IT security governance processes across Interior’s bureaus/offices. On November 18, 2009, the Secretary submitted the FISMA report for FY2009 to OMB. In that report, the Secretary stated that the Department improved over the prior fiscal year in four of the ten key FISMA areas, and it has been rated “green” in status in E-Government security for the first time by OMB. He summarized the IG report and indicated that the Department is substantially compliant in six of the ten key FISMA areas and performing satisfactorily in two other areas. He stated that while the Department has been found deficient by the IG in the remaining two areas, namely System Inventory and Contingency Plan Testing, the CIO has made recommendations similar to those of the IG to address them. He also indicated that, based on available information, including bureau and CIO respective assurance statements, reasonable internal controls existed in FY2009 and that the Department was able to fulfill its mission in an efficient and effective manner, and was operating at an acceptable level of risk. The following report was among those government reports related to IT security across all federal agencies issued during this reporting period. . On November 17, 2009, GAO issued “Continued Efforts Are Needed to Protect Information Systems from Evolving Threats” (Report No. GAO-10-230T). Incidents: . On the evening of December 23, 2009, MMS began experiencing computer hardware malfunctions on its ZANTAZ email archiving system. From December 24 to December 28, 2009, no emails were archived. MMS, working with the vendor who provided the computer hardware, repaired the system on December 29, 2009, and email archiving resumed. All emails, including the backlog of messages from December 24 through December 28, 2009, were successfully archived by ZANTAZ. . Between September 8 and October 27, 2009, OHTA experienced five incidents involving the emailing of unencrypted sensitive information outside of DOI’s network. Each email contained trust data, but this data was not PII. In response, the OHTA CIO has taken February 1, 2010 Information Technology action to prevent the reoccurrence by identifying and correcting a prior miscommunication of policy that led to the incidents. All recipients of the e-mails were cleared to handle Trust data. OHTA confirmed that the emails have been removed from the recipients’ messaging systems. 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 Department Deputy CIO and OHTA BCISO positions are now vacant. Assurance Statement I concur with the content of the information contained in the Information Technology section of the Status Report to the Court Number Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 29, 2010 Name: Signature on File Sanjeev (Sonny) Bhagowalia Department of the Interior Chief Information Officer February 1, 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 24 completed survey projects in Indian Country during this reporting period. These surveys produced 63 plats, 506 miles of survey line and an additional 1,435 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 922 professional land surveyors enrolled in the CFedS training program, and 314 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 28,362 visits and the “Finding a CFedS” page received approximately 16,350 inquiries. . 59 new professional land surveyors started the program. 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 and BIA are exploring options to fund the CGIS initiative in FY 2010 and FY2011. February 1, 2010 Cadastral Survey 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. Assurance Statement I concur with the content of the information contained in the Cadastral Survey section of the Status Report to the Court Number Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 22, 2010 Name: Signature on File Donald A. Buhler Chief Cadastral Surveyor Bureau of Land Management February 1, 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 Thirty-Nine. The information provided in this section is accurate to the best of my knowledge. Date: January 19, 2010 Name: Signature on File Shirley M. Conway Special Assistant to the Associate Director Minerals Revenue Management Minerals Management Service February 1, 2010 THIS PAGE INTENTIONALLY BLANK STATUS REPORT TO THE COURT NUMBER THIRTY-NINE February 1, 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 Region office 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 successor to TAAMS vendor CGIS Cadastral Geographic Information Systems CI Manual Coding and Imaging Manual CIFTA Certified Indian Fiduciary Trust Analyst February 1, 2010 Acronyms and Abbreviations CIFTS CIO CIRC CISO CISSP CITE CMS COTS CP&R CPIC CREUMS CSAM CSIRC CSIRT CSSCTM DAA DCV DEARDDoS DLRM DM DMZ DNSDOI DOPDoS DQ&I DRMEA ENA EORO ERA ERO ESN ETP eVault FAMS FAR FBMS FDCC FFMIA FIMO FIPS FISMA Certified Indian Fiduciary Trust Specialist Chief Information Officer Computer Incidents Response Center Chief Information Security Officer Certified Information System Security Professional Certified Indian Trust Examiners Credential Management System Commercial off-the-shelf Check Payment and Reconciliation Capital Planning and Investment Control Colorado River Electrical Utility Management System Cyber Security Assessment and Management Computer Security Incident Response Capability Computer Security Incident Response Team Customer StrataStation Comprehensive Trust Management Plan Designated Approving Authority Data Completeness Validation DOI Enterprise Architecture Repository Distributed Denial of Service DOI Land and Resource Management Departmental Manual De-Militarized Zone Domain Name Server Department of the Interior Desk Operating Procedure Denial of Service Data Quality and Integrity Data Reference Model Enterprise Architecture Eastern Navajo Agency Eastern Oklahoma Region office Electronic Records Era Eastern Region office Enterprise Services Network Enterprise Transition Plan Enterprise Vault Facilities Asset Management System Federal Acquisition Regulation Financial Business Management System Federal Desktop Core Configuration Federal Financial Management Improvement Act Farmington Indian Minerals Office Federal Information Processing Standards Federal Information Security Management Act February 1, 2010 Acronyms and Abbreviations FMFIA FOIA FRC FRD FTM FTO FWS GAO GCDB GIS GLO GLADS GPRO GPS GSA GSS HSA HSPD-12 IAM IATO ICR ICRs IEA IEMSC IFTR IG IIM IITD ILCA ILCO ILCP IMIMDA InfoDat Interior IP IPJ IPS IPv6 IQCS IRM IRMS IRN IRS ISSDA Federal Managers’ Financial Integrity Act Freedom of Information Act Federal Records Center Functional Requirements Document Fiduciary Trust Model Fiduciary Trust Officer U.S. Fish and Wildlife Service Government Accountability Office Geographic Coordinate Data Base Geographic Information System General Land Office Great Lakes Agency Database System Great Plains Region office Global Positioning System General Services Administration General Support Systems Historical Statement of Account Homeland Security Presidential Directive 12 Indian Affairs Manual Interim Approval to Operate Internal Control Review Information Collection Requests Interior Enterprise Architecture Indian Energy & Mineral Steering Committee Indian Fiduciary Trust Records Inspector General Individual Indian Money Individual Indian Trust Data Indian Land Consolidation Act Indian Land Consolidation Office Indian Land Consolidation Project Instruction Memorandum Indian Mineral Development Act Indian Forestry Database Department of the Interior Internet Protocol Indian Probate Judges Intrusion Protection System Internet Protocol Version 6 Incidence Qualification and Certification System Information Resources Management Integrated Records Management System Isolated Realty Network Internal Revenue Service Indian Service Special Disbursing Agents February 1, 2010 Acronyms and Abbreviations ISA ISIT IT ITARS ITIMS ITRS IV&V LAN LCTS LMS LR2000 LRIS LTIC LTRO MA MAD/LCP MADS MMD MMS MOU MRAD MRM MRMSS MWRO NARA NBC NFR NILS NIOGEMS NIPTCNIRMC NIST NORC NPS NRO NWRO O&G OAS OCIO OHA OHTA OIG OIP OISP OME Information Security Assessment Internal Security Improvements Team Information Technology Indian Trust Appraisal Request Tracking System Integrated Transportation Information Management System Indian Trust Rating System independent verification and validation Local area network Land Consolidation Tracking System Learning Management System Legacy Rehost 2000 System Land Records Information System Land Tenure in Indian Country Land Titles and Records Office Major Application Management Accounting Distribution/Land Consolidation Program Management Accounting Distribution System Missing Mandatory Documents for Unrestricted Accounts Minerals Management Service Memorandum or Memoranda of Understanding Mineral Royalty Accounting and Distribution Minerals Revenue Management Minerals Revenue Management Support System Midwest Region office National Archives and Records Administration National Business Center Notice of Findings and Recommendations National Integrated Lands System National Indian Oil and Gas Evaluation and Management System National Indian Programs Training Center National Information Resource Management Center National Institute of Standards and Technology National Opinion Research Center National Park Service Navajo Region office Northwest Region office Oil and Gas Office of Appraisal Services Office of the Chief Information Officer Office of Hearings and Appeals Office of Historical Trust Accounting Office of the Inspector General Office of Information Policy Office of IT Security and Privacy Office of Minerals Evaluation February 1, 2010 Acronyms and Abbreviations OMB Office of Management and Budget 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 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 Region 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 Region 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 SPRO Southern Plains Region office SSA Social Security Administration February 1, 2010 Acronyms and Abbreviations SSAS Social Services Automated System SSM System Security Manager SSP System Security Plan ST&E Security Test and Evaluation Statements Historical Statements of Account STIGs Security Technical Implementation Guides SUS System Update Servers SWRO Southwest Region 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 Fund Accounting System TFR Trust Fund 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 Region office