Self-Governance 2.0

1. Self-Governance2.0

2. Objectives Advise about OMB Passback request for a paper on Tribal Self-Governance 2.0 that expands the principles of Self-Governance Develop tribal workgroup Brief discussion of other models of U.S. government-to-government financial relationships As part of 2.0, how to increase the number of Self-Governance Tribes

3. Self-Governance Tribes 258 Tribes in Self-Governance, out of 567 Tribes 105 Funding Agreements Included in Self-Governance are 11 consortiain Alaska 3

4. Self-Governance • Briefly the Self-Governance Program was intended to: • Formalize relations between the United States and Indian Tribes on a government-to-government basis • Allow Indian Tribes to determine internal priorities, redesign programs and reallocate resources to more effectively and efficiently meet the needs of our tribal communities • Promote greater social, economic, political self-sufficiency among Indian Tribes 4

5. Self-Governance • Establish better tribal accountability through local autonomy • Reduce the size and inefficiency of the Bureau of Indian Affairs by shifting the agency’s role from day-to-day management of tribal affairs to protectors and advocates • “Shaping Our Own Future: An Overview and Red Paper Issued by the Jamestown Klallam and Lummi Indian Tribes and the Quinault Indian Nation,” 1989 5

6. Goals for 2.0 STREAMLINE oversight process PROVIDE Tribes lump sum funding agreements for all programs, not just TPA base ALLOW Tribes to determine how the funds are spent ALLOW Tribes to track performance data and outcomes REPORT how the funds were spent as part of the single audit process

7. Questions Can it be done administratively? Is there a need for a change to the Indian Self-Determination Act? Which Tribes are interested in doing this? What criteria, if any, should be used to select Tribes for participation? How would the lump sum be calculated? How can the number of Self-Governance Tribes be increased? 7

8. Questions Define what is meant by “all programs?” A-133 Single Audits check compliance with OMB circulars, require accounting and management systems, do not necessarily report on how funds are spent, what kind of reporting is envisioned beyond single audits, if any? Should the role of the federal government be defined in tribal self-governance plans? Should the role of OST and other federal offices be identified and defined? 8

9. Questions Should an information dissemination network be established and used to identify best practices? Should venture capital be made available? Should strategies to develop income and employment be developed for implementation? Should a process and IT system be developed to adjust lump sum funding to appropriations for a given year? 9

10. Current Activity • Alert Tribes that this process is beginning • Solicit tribal ideas • Develop a small workgroup of tribal representatives • Continue discussions with U.S. agencies that have government-to-government financial relationships with territories and foreign governments

11. First Steps to 2.0 for Consideration Determine what needs to be done internally to reduce regional reprograming of funds back to OSG Determine what needs to be done to avoid OSG doing fund returns back to the regions Determine what additional funds, not in a Tribe’s TPA base, can be moved as a part of a lump sum amount 11

12. First Steps to 2.0 for Consideration Determine if Tribes should track performance data and outcomes Maintain that a single audit is all that is needed for purposes of reporting Determine how to address competitive, special need, or earmarked, non-recurring funds or programs 12

13. First Steps to 2.0 for Consideration • Determine if any BIA review and monitoring of programs are required: • Trust Program Evaluation • Law enforcement, courts, and detention 13

14. Brainstorming about 2.0 Should there be a standardized, simplified funding document for all federal programs? (contrary to original self-governance principles) What else? 14

15. Ongoing Comparative Research of Other Government-to-Government Programs • Millennium Challenge – Country Compacts • US AID – Country Agreements • Insular Affairs – Compacts of Free Association • State Department – Country Agreements 15

16. Ongoing Comparative Research • Millennium Challenge, USAID, Insular Affairs, and the State Department • Internal financial and program processes for offices that move US monetary aid as a lump sum to foreign countries • Delegation of roles and responsibilities • Accountability standards for the countries 16

17. DOI – Insular Affairs • “Compacts of Free Association” between the United States and territories: • American Samoa • Guam • Commonwealth of the Northern Mariana Islands • U.S. Virgin Islands • Republic of Marshall Islands • Federated States of Micronesia • Republic of Palau • Each gets a lump sum payment and also other discretionary funds 17

18. DOI – Insular Affairs Insular Affairs FY 2012 VS. 18

19. Compact of Free Association • Goals • To support the “long-term security interests of the United States in the western Pacific and Caribbean and address serious economic and fiscal problems impacting the insular areas…” • To provide funds for said territories to become economically self-sustaining by a date certain • Example: Micronesia Compact’s projected date of expiration is 2023 19

20. Implementing “Compact of Free Association” • Implementation • Requires monitoring, quarterly reports, heavy federal interventions and involvement in territories’ financial and programmatic internal operations • Single Lump Sum • A good idea • Accountability pieces are very intrusive in terms of financial operations as compared to how Self-Governance is organized 20

21. State Department • Some discussion has started with the State Department concerning U.S. assistance to foreign countries • Discovered a Treasury program that helps foreign countries with financial infrastructure

22. Challenges To Tribes that are NOT Self-Governance Every year there are at least 3 or 5 tribes that apply to enter Self-Governance Some of these Tribes do not have 3 years of audits that are free of material weaknesses and these Tribes are not accepted to the Self-Governance Program because the statutory/regulatory criteria is not met What can be done to address this?

23. Challenges To All Tribes A remotely located tribe loses its finance person or CFO and is unable to find expertise in the community. A Tribe continually does not submit its Single Audit year after year. A new tribal administration arrives and the tribal finance office undergoes a total replacement. What happens? 23

24. U.S. Department of Treasury, Office of Technical Assistance (OTA) • Core Mission: • To develop strong financial sectors • To develop sound public financial management • Where: • Countries where federal U.S. assistance is provided and there is a strong commitment to reform

25. OTA’s Five Core Areas Budget Policy and Accountability Banking and Financial Services Government Debt Issuance and Management Financial Crimes Revenue Policy and Administration

26. OTA’s Technical Assistance • OTA has the ability to assist in areas, such as: • Auditing • Accounting • Information technology system development • Macroeconomic and monetary policy management • Infrastructure finance

27. OTA’s Technical Assistance OTA currently operates programs in more than 50 countries. Use of the Office’s services are free to the countries requesting service 27

28. OTA Structure Offers Ideas for Technical Assistance Model for Tribes • OTA – a starting point for Tribal TA? • Tribes might receive assistance for: • Addressing audits • Reviewing financial management systems • Stabilizing financial infrastructure when tribal governments change hands

29. Technical Assistance Possibilities Develop a federal contract with Indian organization or agency that could directly contract with individuals who have expertise in tribal finance for all federal grant/contracted/compacted programs available to Tribes OR Develop a federal office with a team of financial and audit experts on tribal finances

30. Technical Assistance Possibilities The organization could provide a core group of seasoned tribal finance and audit experts The organization would provide its services for free to the Tribes The organization would help Tribes with recruitment of finance and audit staff

31. Technical Assistance Possibilities • The organization could provide internships and jobs for Native students through regional university-tribal partnerships • Develop students and staff expertise in: • Finance • Accounting • Audits • All federal and state programs that Tribes receive

32. The End or the Beginning Comments, Questions, and Concerns Sharee.Freeman@bia.gov Director, Office of Self-Governance