An annual report (1972-73) of New Mexico's State Department of Education, Division of Indian Education, this document presents data pertaining to 7 school districts receiving Johnson O'Malley (JOM) funds. For the purpose of providing as accurate a picture as possible of how JOM funds are used at the local level, the summaries covered 4 categories: administrative services, supportive services to students, instructional services to students, and the JOM meals to students. The remainder of the report discusses: (1) district summaries, including such things as the effects of hiring of liason officers to encourage better school attendance and foster better community school relations; (2) a court case involving JOM fund administration, with the State of New Mexico and the Gallup-McKinley School District as defendants; (3) reconciliation of receipts and expenditures of JOM funds and American Indian enrollment by school district; and (4) future plans for the administration of JOM funds--for example, the State Superintendent has taken the position that efforts of Indian tribal groups to administer their own JOM programs will be encouraged and cooperated with in every way possible. The purpose, authority, policy, and specifications for the 1973-74 administration and programming of JOM funds are also given. (FF)