The annual report (1972-73) of the Nevada Department of Education on the American Indian education program is concerned with the allocation of the Johnson O'Malley (JOM) Act funds, which enables the Bureau of Indian Affairs to contract with states and local school districts for the education of Indian children. At present, the JOM funds in the state are used exclusively to support school lunch and special programs. Four basic objectives, such as ensuring that the state allots to schools enrolling eligible Indian children all funds and aides to which state public schools are legally entitled, are presented. Also given are (1) annual financial report and special fund projects for each participating school district plus school district news; (2) JOM Indian enrollment; (3) dropout study; (4) state plan for distributing of JOM funds; (5) revised JOM guidelines; (6) procedure for termination of state apportionment for Nevada public schools; and (7) tables. (FF)