This report examines the "Performance Indicators in Primary Schools" (PIPS) test as a reliable and cohesive instrument to assess early literacy and numeracy skills among Indigenous children. The process includes the examination of the reliability of the PIPS test using the Cronbach Alpha and the Split-half method with Pearson's r correlation co-efficient and the Spearman-Brown correction. Individual items are examined to ascertain their discrimination indices and their item difficulty levels. These analyses reveal that some items of the instrument should be revised to improve its suitability to assess early literacy and numeracy skills. Total scores on the two major item sub-groups are correlated with the total scores to determine the overall cohesiveness of the instrument. In spite of some possible improvements this report indicates that overall the PIPS test is a highly reliable and thus adequately valid instrument to assess early literacy and numeracy skills among Indigenous children. (Contains 7 tables.)