As a result of the Bureau of Indian Affairs' (BIA) laxness in improving management of programs and services for Indians, the Chairman of the House Committee on Interior and Insular Affairs requested the General Accounting Office (GAO) to review the accountability of federal funds and property involving contracts and grants totaling about $726 million awarded during the fiscal years 1978 through 1980 for the benefit of Indians. GAO's review of 178 grants and contracts disclosed that the BIA continues to have problems administering and monitoring Indian programs and accounting for federal funds. Repeating the substance of its 1978 recommendations that the BIA revise its policies, procedures, and practices pertaining to contracts and grants with Indian tribes to improve accountability for federal funds, GAO also suggested that the Secretary of Interior direct the Assistant Secretary for Indian Affairs to consider three possible alternative organizational structures for the BIA to separate program and procurement functions. This change would eliminate inherent conflicts between those responsible for implementing services and programs and those responsible for monitoring and reporting on tribal grant and contract performance and further the objectives of the Indian Self-Determination Act. GAO also urged Congress to require the Secretary of Interior to report on the progress made in implementing GAO's recommendations. (ERB)