The Bureau of Indian Affairs could save several millions of dollars and improve the operating efficiency of its boarding schools by consolidating them to make greater use of space and equipment, establishing policies for controlling expenditures, and having adequate staff and funds to maintain them properly. In 1977 the BIA operated 15 off-reservation and 57 on-reservation boarding schools for 18,562 students. An investigation into the operation of these schools found buildings and dormitories vacant, classrooms half-empty, expensive equipment unused, and funds mismanaged. Some schools were poorly maintained with some conditions presenting safety hazards. Boarding schools, both on and off the reservation, were for the most part ignoring BIA eligibility criteria and admitting students whose eligibility had not been verified. Six off-reservation schools visited were designed for 6,320 students; they had a combined enrollment of 2,654. The Bureau has been aware of underutilization of its off-reservation boarding schools but has been unable or unwilling to consolidate them because of Congressional and/or tribal actions. Information for this study was obtained through examination of reports and documents, visits to five BIA headquarters and area offices, interviews with BIA officials, school administrators, and tribal officials, and inspections of six off-reservation and four on-reservation boarding schools. Nine recommendations for improving the efficiency of the BIA boarding schools are given. (DS)