Office of the Special Trustee for American Indians Panel Briefing Presented by Rob Winter Director – Trust Operations National Intertribal Tax Alliance September 16 & 17, 2015 – Niagara Falls, NY 11/20/2018

Trust Services - Mission Responsible for all fiduciary accounting activities, reconciliation, and financial reporting related to the individual Indian, Alaska Native, and tribal trust funds under management by the Department of the Interior 11/20/2018

Trust Services – What We Do Manage over $4 billion in tribal trust funds and almost $900 million in individual Indian Monies (IIM) Manage over 400,000 tribal and individual Indian trust accounts Process and reconcile approximately 10 million financial transactions each year with an annual flow through of almost $1.6 billion Prepare the audited Tribal and IIM financial statements annually 11/20/2018

Trust Services – What We Do Issue more than 15,000 IRS Forms 1099 (INT, MISC, DIV). Work with beneficiaries to understand tax implications Process and close out more than 8,000 probate cases each year Process more than 700,000 routine file maintenance (address changes, banking changes, etc.) transactions each year 11/20/2018

Trust Services – What We Do Individual Indian Monies Pool Account $ 858,000,000 17% of Total Individual Indian Accounts 397,000 > 99% of Total Tribal Accounts $ 4,046,000,000 83% of Total Tribal Accounts 3,300 (for over 250 Tribes) < 1% of Total 11/20/2018

Trust Services – What We Do 11/20/2018

Trust Services – What We Do 11/20/2018

Trust Services – What We Do 11/20/2018

Trust Services – What We Do 11/20/2018

Trust Services – What We Do 11/20/2018

Trust Services – Trust Reforms Implemented monthly financial statement reporting along with an annual independent audit Resolved 60 audit deficiencies (7 of which were Material Weaknesses) identified by the first full audits which began in fiscal year 1996. By FY 2010 all deficiencies were resolved. FY 2014 audit revealed no deficiencies. Reconciled and balanced historical differences with Treasury (approximately $34 million) Resolved an over $5 million imbalance between the Individual Indian Monies Pool of Financial Assets and the amounts owed to IIM beneficiaries 11/20/2018

Trust Services – Trust Reforms Implemented an automated, centralized, and one-day receipting and distribution process through a commercial lockbox Implemented electronic disbursement methods (e.g. direct deposit and debit card) Assumed the financial distribution of probated accounts from BIA Implemented monthly and quarterly tribal and IIM statements of performance including land and lease information Implemented a paperless transactional tracking and control system, greatly reducing our carbon footprint Transitioned all check, statements of performance, and oil and gas explanations of payment to Treasury, utilizing their economies of scale to improve services 11/20/2018

Trust Services - Priorities Continued scrutiny of controls over financial processes and reporting IIM Direct (electronic banking) Implement the Daily Automated Reconciliation and Reporting Tool (DARRT) Streamline daily and monthly interest calculations Continue supporting the Land Buy Back Program distributions – Over $650 million distributed in less than two years Improving efficiencies and reducing errors in line with our strategic plan 11/20/2018

Questions?

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