BIE’s mission is to provide Indian  students with quality education opportunities. Organizational Fragmentation and Poor Communication Undermine Indian Affairs’ Administration of BIE Schools

Indian Affairs’ administration of BIE schools—which has undergone  multiple realignments over the past 10 years—is fragmented. Notably, when the Assistant  Secretary for Indian Affairs was asked at a February 2015 hearing to  clarify the responsibilities that various offices have over BIE schools, he  responded that the current structure is “a big part of the problem” and that  the agency is currently in the process of realigning the responsibilities  various entities have with regard to Indian education, adding that it is a  challenging and evolving process. Currently, Indian  Affairs’ restructuring of BIE is ongoing. We previously found that key practices for  organizational change suggest that effective implementation of a results- oriented framework, such as a strategic plan, requires agencies to clearly  establish and communicate performance goals, measure progress toward  those goals, determine strategies and resources to effectively accomplish  the goals, and use performance information to make the decisions  necessary to improve performance.BIE officials said that developing a strategic plan would help its leadership  and staff pursue goals and collaborate effectively to achieve them. However, the plan has yet to  be finalized. For example, our previous  work found that the Office of the Deputy Assistant Secretary for  Management’s lack of knowledge about the schools’ needs and expertise  in relevant education laws and regulations resulted in critical delays in  procuring and delivering school materials and supplies, such as  textbooks. In our 2013 report, we also found that poor communication among Indian  Affairs offices and with schools about educational services and facilities  undermines administration of BIE schools. In 2013, we recommended that  Interior develop a communication strategy for BIE to update its schools  and key stakeholders of critical developments. Staff Capacity to Support Schools Is Limited

Limited staff capacity poses another challenge to addressing BIE school  needs. According to key principles of strategic workforce planning, the  appropriate geographic and organizational deployment of employees can  further support organizational goals and strategies and enable an  organization to have the right people with the right skills in the right  place. Consequently, in 2013 we recommended that Indian Affairs  revise its strategic workforce plan to ensure that its employees providing  administrative support to BIE have the requisite knowledge and skills to  help BIE achieve its mission and are placed in the appropriate offices to  ensure that regions with a large number of schools have sufficient  support. Indian Affairs agreed to implement the recommendation but has  not yet done so. For example, our preliminary analysis of Indian Affairs data shows that  about 40 percent of BIA regional facility positions are currently vacant,  including regional facility managers, architects, and engineers who  typically serve as project managers for school construction and provide  technical expertise. These officials had many additional responsibilities for BIE schools  similar to school district superintendents of public schools, such as  providing academic guidance. Without adequate staff and training, we reported that BIE will  continue struggling to adequately monitor school expenses. Indian Affairs agreed with our  recommendation but has not yet taken any action. Inconsistent Accountability Hampers Management of School Construction and Monitoring of School Spending

Our work has shown that another management challenge, inconsistent  accountability, hinders Indian Affairs in the areas of (1) managing school  construction and (2) monitoring overall school expenditures. At one BIE-operated school we visited,  Indian Affairs managed a project in which a contractor completed a $3.5  million project to replace roofs in 2010, but the roofs have leaked since  their installation, according to agency documents. Uneven Accountability for School Spending

In our 2014 report on BIE school spending, we found that BIE’s oversight  did not ensure that school funds were spent appropriately on educational  services, although external auditors had determined that there were  serious financial management issues at some schools. While  Indian Affairs agreed, it has not yet implemented this recommendation. In 2014 we recommended that Indian Affairs develop written  procedures, including for Interior’s Indian School Equalization Program, to  consistently document their monitoring activities and actions they have  taken to resolve financial weaknesses identified at schools. Without a risk- based approach and written procedures to overseeing school spending— both integral to federal internal control standards—there is little assurance  that federal funds are being used for their intended purpose to provide  BIE students with needed instructional and other educational services. While  Indian Affairs has generally agreed with these recommendations and  reported taking some steps to address them, it has not yet fully  implemented them.
Why GAO Did This Study

BIE is responsible for providing quality education opportunities to Indian students. It currently oversees 185 schools, serving about 41,000 students on or near Indian reservations. Poor student outcomes raise questions about how well BIE is achieving its mission. In September 2013, GAO reported that BIE student performance has been consistently below that of Indian students in public schools.
This testimony discusses Indian Affairs' management challenges in improving Indian education, including (1) its administration of schools, (2) staff capacity to address schools' needs, and (3) accountability for managing school construction and monitoring school spending.
This testimony is based on GAO reports issued in September 2013 and November 2014, as well as GAO's February 2015 testimony, which presents preliminary results from its ongoing review of BIE school facilities. A full report on school facilities will be issued later this year. GAO reviewed relevant federal laws and regulations; analyzed agency data; and conducted site visits to schools, which were selected based on their geographic diversity and other factors.
GAO has made several recommendations in its earlier reports; it is not making any new recommendations in this statement.

What GAO Found

GAO has reported for several years on how systemic management challenges within the Department of the Interior's Office of the Assistant Secretary–Indian Affairs (Indian Affairs) continue to hamper efforts to improve Bureau of Indian Education (BIE) schools. Over the past 10 years, Indian Affairs has undergone several organizational realignments, resulting in multiple offices across different units being responsible for BIE schools' education and administrative functions. Indian Affairs' fragmented organization has been compounded by frequent turnover in its leadership over a 13-year period and its lack of a strategic plan for BIE. Further, fragmentation and poor communication among Indian Affairs offices has led to confusion among schools about whom to contact about problems, as well as delays in the delivery of key educational services and supplies, such as textbooks. Key practices for organizational change suggest that agencies develop a results-oriented framework, such as a strategic plan, to clearly establish and communicate performance goals and measure their progress toward them. In 2013, GAO recommended that Interior develop a strategic plan for BIE and a strategy for communicating with schools, among other recommendations. Indian Affairs agreed with and reported taking some steps to address the two recommendations. However, it has not fully implemented them.
Limited staff capacity poses another challenge to addressing BIE school needs. According to key principles for effective workforce planning, the appropriate deployment of employees enables organizations to have the right people, with the right skills, in the right places. However, Indian Affairs data indicate that about 40 percent of its regional facility positions, such as architects and engineers, are vacant. Similarly, in 2014 GAO reported that BIE had many vacancies in positions to oversee school spending. Further, remaining staff had limited financial expertise and training. Without adequate staff and training, Indian Affairs will continue to struggle in monitoring and supporting schools. GAO recommended that Interior revise its workforce plan so that employees are placed in the appropriate offices and have the requisite knowledge and skills to better support schools. Although Indian Affairs agreed with this recommendation, it has not yet implemented it.
Inconsistent accountability hampers management of BIE school construction and monitoring of school spending. Specifically, GAO has found that Indian Affairs did not consistently oversee some construction projects. For example, at one school GAO visited, Indian Affairs spent $3.5 million to replace multiple roofs in 2010. The new roofs have leaked since their installation, causing mold and ceiling damage, and Indian Affairs has not yet adequately addressed the problems, resulting in continued leaks and damage to the structure. Inconsistent accountability also impairs BIE's monitoring of school spending. In 2014 GAO found that BIE does not adequately monitor school expenditures using written procedures or a risk-based monitoring approach, contrary to federal internal control standards. As a result, BIE failed to provide effective oversight of schools when they misspent millions of dollars in federal funds. GAO recommended that the agency develop written procedures and a risk-based approach to improve its monitoring. Indian Affairs agreed but has yet to implement these recommendations.