This final report summarizes Indian Health Service (IHS) findings in nonfederal audit reports where HHS is responsible for audit resolution. This report highlights areas where improvements are needed in the administration of IHS-funded programs. We reviewed 133 nonfederal audit reports issued in CY 1992, with 511 findings and questioned costs of $1.2 million. The 511 findings are summarized into 7 deficiency categories: internal controls, cash management, financial reporting, cash disbursement, policy and procedures, accounting system, and program administration. We recommended that the IHS focus its attention in these areas by issuing to the administrators of tribal programs guidelines and instructions, holding training workshops, and closely monitor the corrective actions. The Public Health Service concurred with our recommendation.