Although self-determination funds in fiscal year 1977 accounted for about 25 percent of the Bureau of Indian Affairs (BIA) budget for the operation of Indian programs, the BIA has not adequately supervised tribal performance under these contracts and grants. Questionable use of funds, incorrect interpretations of regulations, inadequate criteria to measure performance, conflicts of interest, and inadequacy of BIA guidelines in defining duties of employees were identified as contributing factors in a study that included trips to BIA headquarters, area offices and agencies, visits to reservations, and interviews with BIA and tribal officials. The BIA should develop management reporting systems to help monitor and control self-determination contracts, grants, and training and technical assistance activities. BIA policies, regulations, guidelines, and practices should also be revised to (1) prohibit award of contracts in which the starting date precedes the date of award; (2) establish specific criteria for measuring performance; (3) require supervision of contracts and grants by adequately trained area level officers whose responsibilities have been clearly defined; and (4) prevent self determination training and technical assistance funds from being used for assistance that does not help tribes to develop the capability to negotiate and administer self-determination contracts or grants or to improve their capabilities to fully exercise their self-determination options. (DS)