“We concluded that the Tribes effectively managed agricultural leasing on the reservation. Specifically, they: (1) identified lands that were suitable for agriculture; (2) ensured that lands available for leasing were known to prospective lessees; (3) initiated actions in a timely manner to ensure that expiring leases were reissued without a loss of revenue to the landowners; (4) ensured that fair annual rentals were realized (based on appraisal value
and advertisement for bids) for the leased lands; (5) required direct rental payments to individual allottee landowners and assignees by the lessees; (6) assessed interest when rentals were paid late; (7) took appropriate actions to cancel leases when warranted by the circumstances; and (8) enforced bonding requirements stipulated in the leases. We based these conclusions on our audit test of 32 randomly selected active leases and 12 leases that expired on December 31, 1996. The report did not contain any recommendations.”
