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According to Chief Byrd the accounting system that was put in place in 1994 created the major problems for his administration. It was incapable of providing up-to-date information, he said. The chief says the the problem has been resolved. Installation of the new accounting system, which began in January 1998, is complete and is year 2000 compliant, he said.

Allegations of misuse of tribal and federal funds, by the chief, led to an audit of the CNO's books. According to an October 1998 U.S. Labor Department audit, the Cherokee Nation of Oklahoma improperly transferred approximately $16.1 million in federal program funds, into a general tribal fund without accounting for how the money was used. The audit showed Federal funds were used to pay for litigation against the federal government. $622,000 in legal fees were paid to a Washington law firm without a contract and without approval of the tribal council. More than $64 million out of a total of $131 million in revenue came from grants from the federal government.

An earlier September audit by the U.S. Labor Department found that the tribe overcharged federal job-training programs in the amount of $529,272. The U.S. Department of Health and Human Services reported that $87 million of IHS program funds, appropriated to the tribe since 1996, could not be accounted for. The tribe had not prepared financial statements for 1997 or 1998 at the time of the September audit but still received $24 million in federal funds.

The CNO, which normally receives federal funds in an annual lump sum, was put on a monthly allowance by the U.S. Department of Interior (DOI) after the results of an October '98 audit. The tribe must also provide monthly reports on expenditures and agreed to repay the DOI Office of Self-Governance any unauthorized funds used.

The chief said that the tribe's annual budget is around $150 million, and the bulk of that comes from federal monies. Byrd stated, "We are going to open up the financial reports to the public, to anyone who wants to come and see what the Cherokee Nation has as far as finances." Seminars will be held to inform the public on the financial status of the tribe. The seminars will be led by Gary Stopp, Byrd's chief of staff and Don Vaugn. Vaugn also worked under former Chiefs Swimmer and Mankiller, he said.

Chief Byrd stated that he has some unfinished business he wants to tend before his term expires in August, and also said that he is not convinced that the tribe should begin issuing its own license tags, because it could hurt public schools.

Members of the Tribal Council are still boycotting meetings to avoid issues that they feel will gut the Judicial Branch of the Cherokee Nation's government. Byrd said he holds the authority to garnish the monthly pay of the boycotting council members, "but I'd rather not", he said. Council members receive $1,500 a month.

Concerning last week's press release that stated there would be layoffs, Byrd indicated that there had been a "misunderstanding" and that layoffs would not happen. He further stated that the press release had gone out without his authorization. Additionally, Byrd said a decision concerning his re-election plans will be announced around February 1st, after discussing it with his wife and advisers.

February is the filing period for the tribal elections. The elections are scheduled for May 1999, with runoff's following if necessary. Chad Smith and Pat Ragsdale are both running for Principle Chief. Paula Holder, is running for Deputy Chief on Ragsdale's ticket and Hastings Shade is running for Deputy Chief on Smith's ticket. It had been announced earlier that Jess Bryant, a Cherokee businessman, would also run for Deputy Chief of the Cherokee Nation of Oklahoma.