One of the primary objectives of Self-Governance is to provide the maximum flexibility to Tribal governments to design programs, activities and services to address Tribal priorities and respond to local concerns. When programs intended to serve Indian people have been managed by the Bureau of Indian Affairs (BIA) and Indian Health Service (IHS) in the past, or managed by Tribes under P.L. 93-638 grants and/or contracts, most of the decision making and funding priorities were made by the Federal bureaucracy. Tribal or local concerns often did not fit into the funding and program parameters established under BIA and IHS policies and regulations. Most of the BIA and IHS guidelines, policies and regulations are prepared for national application and are not tailored to specific Tribes, Reservations, or local conditions.

Self-Governance is designed to allow Tribes to plan and implement BIA and IHS programs, activities, and services that best meet their needs. In effect, along with existing Tribal responsibilities, Tribal governments become the primary policy makers for the programs, services and activities on their Reservations, including the allocation of fiscal resources. Under Self-Governance, Tribes become responsible for BIA and IHS programs, services, functions, and activities assumed by the choice of the Tribe.

Legislative Requirements

As outlined in both the permanent Self Governance law (P.L. 103-413) and the Self-Governance demonstration legislation (Title III, P.L. 100-472, as amended), a qualified Tribal applicant shall:

Tribes which meet the legislative requirements, depending on which programs they wish to compact, should send a tribal resolution and cover letter to either the Department of the Interior Office of Self-Governance or the Indian Health Service Office of the Tribal Self-Governance.

Additionally, interested Tribes may request additional information from the Self-Governance Communication and Education Office of the Department of the Interior. This Office was formed to share information regarding the purpose, process, and benefits of Self-Governance. The Lummi Nation serves as administrator for the Communication and Education Project and has been distributing materials and information, providing educational workshops, coordinating national conferences and other forums discussion concerning critical Self-Governance issues.

As the demand for Tribal-specific technical assistance and interest in Self- Governance has greatly increased, it is helpful to contact other participating Self-Governance Tribes, Tribal leaders, and Self-Governance Coordinators. Information such as specific Self-Governance job descriptions, sample Tribal budget ordinances, internal personnel policies and procedures, other administrative and fiscal processes, and Tribal laws can be obtained and reviewed for application and adaptation to each Tribe's unique governmental and administrative structure.

Internal Reorganization

The planning basis for internal Tribal reorganization should be determined by the particular needs of the individual Tribal government and should take into consideration the requirements included in the law, provisions contained in the Tribe's Constitution, Tribal Laws, Tribal policies and procedures, the Self-Governance Compact and Annual Agreement, and the federal audit requirements as reflected in OMB Circular A-87. How an Indian Tribe reorganizes it's government for participation in Tribal Self-Governance is solely an internal Tribal matter for each individual Tribe to decide.

The "new partnership" and reaffirmation of the "government-to-government" relationship under Self-Governance enhances the authority, responsibility, and opportunity to function as an independent Tribal government. Under a typical 638 contract, a Tribe's obligation was principally to the Contracting Officer at the Area or Agency level who reported to the multiple layers of the BIA and IHS bureaucracies. Tribes and Tribal program managers often had to respond to the 638 contract/grant "Scopes of Work" rather than to the elected Tribal Council or needs of their people.

Under a Self-Governance Compact, the participating Tribe, the Department of the Interior and/or the Indian Health Service identify "Designated Officials" as the individuals responsible for resolving issues, problems, or for any matter arising under this new relationship. Generally, the Tribes have identified the Tribal Chairman as their "Designated Official" and the Department of the Interior and the Indian Health Service has identified either an Area Director or the Director of either of the Office(s) of Self-Governance as the Federal "Designated Official".

Because of this "new partnership" role, internal Tribal government reorganization takes on additional importance. Tribal reorganization may be as simple as identification of the Tribal Designated Official, or may be a major restructuring of how the Tribal government conducts it's business and activities. Reorganization may be at the policy, legislative, administrative, or program levels. For example, some Self-Governance Tribes have undertaken major reorganizations of Tribal governmental structure and have amended their Tribal Constitutions. This reorganization effort has also included the enactment of several new Tribal laws designed to address specific areas of concern and, at the same time, to prevent unnecessary intrusion into internal Tribal affairs by outside forces. For other Self-Governance Tribes, most of the reorganization has occurred within existing federal programs and Departments. Increased program responsibilities have required the development of new processes and procedures to handle the new responsibilities. Many Self-Governance Tribes, found their existing institutional structures, Constitutions, and Ordinances adequate to address the responsibilities of Self-Governance and to serve the needs of Tribal members.

Many Tribes also found the need to develop or expand:

1. budget procedures;

2. internal monitoring procedures;

3. performance and evaluation procedures; and,

4. internal compliance systems.

Major considerations in approaching Tribal reorganization are: identifying methods for timely decision-making; communicating policy decisions from the Tribal Council to Tribal programs and to Tribal members; and, developing cost-efficient program operations. Effectiveness of organizational structure will in part determine how well Tribes can respond to problems and issues as they arise. Cost efficiency of program operations dictate how much it costs to provide programs and services. Combined, effectiveness and cost efficiency will effect the opportunities the Tribe will have to redesign programs, reallocate funding, and most importantly, improve the delivery of services to people.

As with any organization, a hierarchy of decision-making authority must be established. Reasons for delegation of authority must be established by Tribal Councils and understood by all levels of Tribal government. Generally, the closer decision-making is to the actual implementation of decisions, the more efficient the government operates. Tribal Councils retain policy and legislative authority while administrators make administrative decisions, managers make management decisions, and program line staff make program decisions. The respective roles and responsibilities need to be defined and understood. Government operations, including Tribal government, require the delegation of authority and responsibility. The concept of delegation of authority and responsibility to Program Managers is essential for effective and efficient government operations.

Tribal Budget Process

With a few limitations contained in P.L. 103-413, Title III of P.L. 100-472, as amended, and the Compacts of Self-Governance, Self-Governance Tribes are free to design and allocate funds based on Tribal needs and priorities. Self-Governance Tribes may also need to establish or expand their own internal budgeting process. This may depend on the extent of their existing budgeting process for Tribal funds or "hard money" budgets.

A few important limitations exist for how a Self-Governance Tribe decides to design its programs and allocate its funds. Those limitations are:

1. No more than 30% of funding for BIA trust programs may be reallocated within any year without an explanation of how the trust responsibility will be met, (trust programs are limited to physical resources and financial management);

2. Funds specifically appropriated or that are "earmarked" for specific activities by the Congress may only be used for those statutory purposes;

3. Funds awarded to a Tribe from BIA or IHS statutory designated competitive grants and incorporated into Annual Funding Agreements must be allocated for the purposes of the grants: except grant funds may be combined with other funds provided the objectives are accomplished - for example Indian Child Welfare funds may be combined with other social services funds to create stability for an overall comprehensive program that deals with matters involving child welfare, alcohol, drug abuse and family counseling; and

4. Construction funds must be spent on construction activities, but operating dollars may be spent for construction.

Based on the annual Self-Governance negotiations, a Self-Governance Tribe receives a block of funds based on what funds the Tribe would be eligible to receive at all levels, including the dollars from the BIA Central, Area and Agency Offices and IHS Headquarters, Area, and Service Unit associated with the programs, services, functions, and activities assumed by the Tribe. Essentially, each Self-Governance Tribe is responsible for internally allocating these funds, subject to the limitations identified above. Under Self-Governance, it becomes a practical matter for the Tribe to have a formal or defined budgeting process established. The budgeting process should be responsive to the needs of the Tribe, Tribal members, and Tribal programs.

Some Self-Governance Tribes have enacted Budget Ordinances which set forth formal mechanisms for handling the Tribal budget process. These Ordinances can serve as Tribal "anti-deficiency" laws enabling Tribal programs to operate within the established budgets approved by Tribal Councils. The procedures established by these Ordinances help prepare the Tribes for assuming their responsibilities under Self-Governance. For example, prior to Self-Governance, the BIA and IHS would establish program budgets. Now, Tribes are solely responsible for internally allocating or appropriating the funding for each program through internal budgeting procedures. All of the budget procedures and decisions require better information, programmatic and community involvement, and formal adoption by the Tribal Councils.

In general, Tribal managers and program staff prepare operational plans, justifications and corresponding budgets for the next fiscal or calendar year. Depending on the Tribal budget procedures these programs/budgets are presented to the Tribal Council and/or the responsible Tribal authority. The Council then allocates funds according to its priorities and availability of funds. It is very important that these program plans include evaluation tools so the Tribal Government and Tribal management can periodically assess program progress.

Self Governance planning requires a complete review of existing operations, establishment of internal policies and procedures, communication and education, efficient and effective use of management resources, determination of Tribal priorities, and the identification of short and long-term goals. The intensity of the planning process will vary for each Tribe. For Tribes just entering Self-Governance, typically this process will range anywhere from six months to two years. Self-Governance planning does not end with negotiations and implementation.

The planning activity is also an ongoing effort.