[Federal Register Volume 59, Number 25 (Monday, February 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2666]


[[Page Unknown]]

[Federal Register: February 7, 1994]


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FEDERAL RESERVE SYSTEM

[Docket No. R-0827]

 

Notice of Proposed New Systems of Records

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice of new systems of records.

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SUMMARY: In accordance with the Privacy Act of 1974 (Privacy Act), the 
Board of Governors of the Federal Reserve System (Board) is 
establishing two new systems of records to be maintained and used by 
the Board's Office of the Inspector General. The two systems are called 
OIG Investigative Records (BGFRS/OIG-1) and OIG Personnel Records 
(BGFRS/OIG-2). Previously, information contained in the first system 
was maintained as part of the Board's personnel systems of records. The 
second system identified above includes the OIG's database management 
and work assignment and tracking system and contains personal and 
employment information on OIG personnel. Changes to that system have 
caused that system to be subject to the Privacy Act.

DATES: Comments on this notice must be submitted by March 24, 1994.

ADDRESSES: Comments should be addressed to Brent L Bowen, Inspector 
General, Office of the Inspector General, Mail Stop 300, Board of 
Governors of the Federal Reserve System, 20th Street and Constitution 
Avenue, NW., Washington, DC 20551. Comments are available for public 
inspection at the Board's premises at the above location in Room MP-500 
between 9 a.m. and 5 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: John Harry Jorgenson, Counsel to the 
Inspector General (202/872-7519), Office of the Inspector General, Mail 
Stop 300, Board of Governors of the Federal Reserve System, Washington, 
DC 20551.

SUPPLEMENTARY INFORMATION: The Board's Office of the Inspector General 
(OIG) performs its duties in accordance with the Inspector General Act 
of 1978, as amended by the Inspector General Act Amendments of 1988 
(Pub. L. 95-452, as amended, 5 U.S.C. App.) (IG Act). The OIG is an 
independent unit within the Board which was established to promote 
economy, efficiency, and effectiveness in the administration of Board 
programs and operations and to detect and prevent fraud, waste and 
abuse in such programs and operations.
    The Board is establishing two new systems of records, pursuant to 
the Privacy Act, entitled: (1) OIG Investigative Records, and (2) OIG 
Personnel Records. These systems of records are essential for the 
Board's OIG to perform the duties assigned to that Office by the IG 
Act.
    The system called OIG Investigative Records (designated BGFRS/OIG-1 
below) will consist of files and records compiled by the OIG on Board 
employees or other persons involved with the Board's programs or 
operations who have been or are under investigation for criminal or 
civil fraud and abuse related to the Board's programs or operations. 
The Board's Inspector General has the authority to conduct such an 
investigation under the IG Act. These files and records include 
materials maintained in electronic and hard copy form including 
databases for case tracking, ``Hotline'' telephone call logs, 
investigator notes, case files, and memoranda or letters.
    The system of records called OIG Personnel Records (designated 
BGFRS/OIG-2 below) will consist of files and records compiled by the 
OIG on past, current, and prospective employees of the OIG for use in 
the management of the Board's OIG. These files and records include 
materials maintained in electronic or hard copy form, several databases 
including the OIG Time Entry System, and files on individual employees 
maintained and used by the OIG. The information in the system of 
records is used for making and tracking assignments and for assessing 
individual employee progress on assignments as well as for evaluating 
employees.
    The Board proposes to exempt certain files within these two new 
systems of records from disclosure to individuals who are the subject 
of a record in the system. The exemptions would cover only files 
compiled for the following purposes:
    (1) Investigative material compiled for law enforcement purposes; 
and
    (2) Investigatory material compiled solely for the purpose of 
determining suitability, eligibility, or qualifications for employment 
by the OIG, but only to the extent the disclosure of such material 
would reveal the identity of a source who furnished information to the 
Board or OIG under an express promise of confidentiality.
This information in these two new systems is proposed to be exempt 
under the authority of 5 U.S.C. 552a(k)(2) and (k)(5).
    Pursuant to 5 U.S.C. 552a(j)(2), the system of records designated 
as OIG Investigative Records (BGFRS/OIG-1) also shall be exempt from 
certain parts of the Privacy Act insofar as the records are maintained 
by a Board component which performs as its principal function any 
activity pertaining to the enforcement of criminal laws and which 
consists of:
    (i) Information compiled for the purpose of identifying individual 
criminal offenders and alleged offenders;
    (ii) Information compiled for the purpose of a criminal 
investigation, including reports of informants and investigators, and 
associated with an identifiable individual; or
    (iii) Reports identifiable to an individual compiled at any stage 
of the process of enforcement of the criminal laws from arrest or 
indictment through release from supervision.
The system is exempt from the provisions for the following reasons: 
notifying an individual at the individual's request of the existence of 
records in a criminal investigative file pertaining to such individual, 
or granting access to such an investigative file could:
    (A) Interfere with investigative and enforcement proceedings and 
with co-defendants' right to a fair trial;
    (B) Disclose the identity of confidential sources and reveal 
confidential information supplied by these sources;
    (C) Disclose investigative techniques and procedures; and
    (D) Be inconsistent with Federal laws and rules governing 
disclosure of such information in certain circumstances.
    In accordance with 5 U.S.C. 552a(r), a report of these new systems 
of records is being filed with the President of the Senate, the Speaker 
of the House of Representatives, and the Director of the Office of 
Management and Budget. These new systems of records will become 
effective on April 8, 1994, without further notice, unless the Board 
publishes a notice to the contrary in the Federal Register.
    Accordingly, the Board proposes the establishment of the following 
system of records.
BGFRS/OIG-1
    OIG Investigative Records.
    Office of Inspector General, Board of Governors of the Federal 
Reserve System, Suite 1070, 1850 K Street, NW., Washington, DC 20006.
    Individuals covered consist of:
    (1) Officers or employees of the Board or other persons involved in 
the Board's programs or operations who are or have been under 
investigation by the Board's Office of Inspector General in order to 
determine whether such officers, employees or other persons have been 
or are engaging in fraud and abuse with respect to the Board's programs 
or operations; and
    (2) Complainants and witnesses where necessary for future 
retrieval.
    The system contains files on individual investigations including 
investigative reports and related documents generated during the course 
of or subsequent to an investigation. It includes electronic and hard 
copy case tracking systems, databases containing investigatory 
information, ``Hotline'' telephone logs, and investigator workpapers 
and memoranda and letter referrals to management or others.
    5 U.S.C. App. 4(a)(1) and 6(a)(2).
    These records are collected, maintained and used by the OIG in its 
inquiries and investigations and reports relating to the administration 
of the Board's programs and operations and to manage the investigatory 
program.
    Under normal circumstances, no individually identifiable records 
will be provided. However, under those unusual circumstances when 
release of information contained in an individually identifiable record 
is required, proper safeguards will be maintained to protect the 
information collected from unwarranted invasion of personal privacy. 
Subject to this general limitation, the routine uses are as follows:
    1. In the event the information in the system of records indicates 
a violation or potential violation of a criminal or civil law, rule, or 
regulation, the relevant records may be disclosed to the appropriate 
federal, state, or local agency or authority responsible for 
investigating or prosecuting such a violation or for enforcing or 
implementing a statute, rule, or regulation.
    2. The information in the system of records may be disclosed to a 
court, magistrate, or administrative tribunal in the course of 
presenting evidence, including disclosures to counsel or witnesses in 
the course of civil discovery, litigation, or settlement negotiations 
or in connection with criminal proceedings.
    3. The information may be disclosed to a congressional office in 
response to an inquiry made by that office at the request of the 
individual who is the subject of the records.
    4. The information may be disclosed to any source, including a 
federal, state, or local agency maintaining civil, criminal, or other 
relevant enforcement information or other pertinent information, but 
only to the extent necessary for the OIG to obtain information relevant 
to an OIG investigation.
    5. The information maybe disclosed in order to respond to a federal 
agency's request made in connection with the hiring or retention of an 
individual, the issuance of a security clearance, the reporting of an 
investigation of an individual, the letting of a contract or issuance 
of a grant, license, or other benefit by the requesting agency, but 
only to the extent that the information disclosed is necessary and 
relevant to the requesting agency's decision on the matter.
    6. The information may be disclosed to other federal entities, such 
as other federal Offices of Inspector General or the General Accounting 
Office, or to a private party with which the OIG or the Board has 
contracted for the purpose of auditing or reviewing the performance or 
internal management of the OIG's investigatory program, provided the 
record will not be transferred in a form that is individually 
identifiable, and provided further that the entity acknowledges in 
writing that it is required to maintain Privacy Act safeguards for the 
information.
    In addition to the foregoing routine uses, a record which is 
contained in this system and derived from another Board system of 
records may be disclosed as a routine use as specified in the Federal 
Register notice of the system of records from which the records 
derived.
    These records are maintained in file folders, computer disks, 
electronic media, and reports on each investigation.
    Records are generally indexed by name of person under 
investigation, investigation number, referral number, or investigative 
subject matter.
    File folders are maintained in lockable metal file cabinets stored 
in offices that are locked when not in use. Computer disks and 
electronic media are locked in the lockable metal file cabinets with 
their related file folders, and information not so lockable is kept in 
individual offices in locked or passworded computer hardware. Access to 
the information in the cabinets and individual offices is permitted 
only by and to specifically authorized personnel.
    Records in file folders are retained as long as needed and then 
destroyed by shredding. Computer disks are cleared, retired, or 
destroyed when no longer useful. Entries on electronic media are 
deleted or erased when no longer needed.
    Brent L Bowen, Inspector General, Mail Stop 300, Board of Governors 
of the Federal Reserve System, Washington, DC 20551. Office location is 
Suite 1070, 1850 K Street, NW., Washington, DC 20006.
    A person requesting notice as to whether this system of records 
contains information pertaining to him or her should write to the 
Office of Inspector General, Mail Stop 300, Board of Governors of the 
Federal Reserve System, Washington, DC 20551. Individuals requesting 
their own records must provide their name and address and a notarized 
statement attesting to the individual's identity. Requests submitted on 
behalf of other persons must include their written, notarized 
authorization. Such requests in the form prescribed may also be 
presented in person at the Office of the Inspector General, Suite 1070, 
1850 K Street, NW., Washington, DC 20006. Simultaneously with 
requesting notification of inclusion in this system of records, the 
individual may request record access as described in the following 
section on ``Record access procedures.''
    Specific materials in this system have been exempted from Privacy 
Act provisions at 5U.S.C. 552a(d), regarding access to records. The 
section of this notice titled ``Exemptions claimed for the system'' 
indicates the kinds of material exempted and the reasons for exempting 
them from access. Individuals wishing to request access to non-exempt 
records should follow the procedures described in the ``Notification 
procedure'' section. Requests submitted on behalf of other persons must 
include their written, notarized authorization. If access to such 
information by a subject individual is deemed consistent with the 
purposes for which this system of records has been established, then 
the individual will be notified by the OIG as to the time and place for 
access to the records. The OIG will also notify individuals when access 
is denied.
    Individuals requesting amendment or contesting records in this 
system of records should contact the OIG at the address given above, 
reasonably identify the records, specify the information being 
contested, the rationale for the challenge, and supply the information 
requested to be substituted. Such individuals must also comply with the 
Board's Privacy Act regulations on ``Request for correction or 
amendment of record'' (12 CFR 261a.7).
    The OIG collects information from many sources including the 
subject individuals, employees of the Board and the Federal Reserve 
System, other government employees, witnesses and informants, and 
nongovernmental sources.
    Pursuant to 5 U.S.C. 552a(k)(2), this system of records is exempted 
from 5 U.S.C. 552a(c)(3), (d)(1), (d)(2), (e)(1), (e)(4)(G), (H), and 
(I), and (f) to the extent the system of records consists of 
investigatory material compiled for law enforcement purposes. Pursuant 
to 5 U.S.C. (k)(5), this system of records is exempted from 5 U.S.C. 
552a(d)(1) to the extent that it consists of investigatory material 
compiled for the purpose of determining suitability, eligibility, or 
qualifications for federal civilian employment or federal contracts, 
the release of which would reveal the identity of a source who 
furnished confidential information to the Government under an express 
promise that the identity of the source would be held in confidence. 
Pursuant to 5 U.S.C. 552a(j)(2), this system of records is exempted 
from 5U.S.C. 552a(c)(3), (d)(1), (d)(2), (e)(1), (e)(2), and (e)(3) to 
the extent that it consists of information compiled for the purpose of 
criminal investigations.
BGFRS/OIG-2
    OIG Personnel Records.
    Office of Inspector General, Board of Governors of the Federal 
Reserve System, Suite 1070, 1850 K Street, NW., Washington, DC 20006.
    The system contains personal and financial information, in varying 
amounts, on former, current, and prospective employees of the Board's 
OIG.
    These records may contain information relating to the education, 
training, employment history and earnings; appraisal of past 
performance; convictions for offenses against the law; results of 
tests, appraisals of potential, honors, awards of fellowships; military 
service or veteran status; school transcripts; work samples; birth 
date; social security number; travel vouchers; offer letters and 
correspondence, reference checks; and home address of past, present and 
prospective employees of the OIG. Includes allocations of time spent on 
various OIG projects and tasks (OIG Time Entry System) and related 
documents and reports generated by the Time Entry System.
    5 U.S.C. App. 8E(g)(2); 12 U.S.C. 248(l).
    The information in these records is used for making hiring, 
retention, promotion, and performance evaluation decisions.
    Under normal circumstances, no individually identifiable records 
will be provided. However, under those unusual circumstances when 
release of information contained in an individually identifiable record 
is required, proper safeguards will be maintained to protect the 
information collected from unwarranted invasion of personal privacy. 
Subject to this general limitation, the routine uses are as follows:
    1. The information may be disclosed to assist in determining the 
suitability for access to classified information.
    2. The information may be disclosed to designated officers and 
employees of agencies and departments of the federal government, and 
the District of Columbia government, having an interest in the 
individual for employment purposes, in connection with performance of a 
service to the federal government, under a contract or other agreement, 
including a security clearance or access determination, and a need to 
evaluate qualifications, suitability, and loyalty to the United States 
government.
    3. The information may be disclosed to the intelligence agencies of 
the Department of Defense, National Security Agency, Central 
Intelligence Agency, and the Federal Bureau of Investigation for use in 
intelligence activities.
    4. The information may be disclosed to any source from which 
information is requested by the Board in the course of an 
investigation, to the extent necessary to identify the individual, 
inform the source of the nature and purpose of the investigation and to 
identify the type of information requested.
    5. In the event the information in the system of records indicates 
a violation or potential violation of a criminal or civil law, rule, or 
regulation, the relevant records may be disclosed to the appropriate 
federal, state, or local agency or authority responsible for 
investigating or prosecuting such a violation or for enforcing or 
implementing a statute, rule, regulation.
    6. The information may be disclosed as a data source for management 
information for production of descriptive statistics and analytical 
studies in support of the function for which the records are collected 
and maintained, or for related personnel management functions or 
manpower studies; and they may also be utilized to respond to general 
requests for statistical information (without personal identification 
of individuals) under the Freedom of Information Act or to locate 
specific individuals for personnel research or other personnel 
management functions.
    7. The information may be disclosed to respond to a court order.
    8. The information may be disclosed to a congressional office in 
response to an inquiry made by the office at the request of the 
individual who is the subject of the records.
    9. The information may be disclosed to other federal entities, such 
as other federal Offices of Inspector General or the General Accounting 
Office, or to a private party with which the OIG or the Board has 
contracted for the purpose of auditing or reviewing the performance or 
internal management of the OIG, provided the record will not be 
transferred in a form that is individually identifiable, and provided 
further that the entity acknowledges in writing that it is required to 
maintain Privacy Act safeguards for the information.
    In addition to the foregoing, a record which is contained in this 
system and derived from another Board system of records may be 
disclosed as a routine use as specified in the Federal Register notice 
of the system of records from which the records derived.
    The information is stored as written and printed information 
contained in file folders and on computer disks, electronic media in 
the form of individual reports or in electronic databases.
    The information is indexed by name but can be retrieved by a 
variety of personal identification means including by social security 
number, employee number, and room number. It can also be retrieved by 
project or assignment codes.
    File folders are maintained in lockable metal file cabinets stored 
in offices that are locked when not in use. Computer disks and 
electronic media are locked in the lockable metal file cabinets with 
their related file folders, and information not so lockable is kept in 
locked or passworded computer hardware. Access to the information in 
the cabinets and individual offices is permitted only by and to 
specifically authorized personnel.
    Records in file folders are retained as long as needed and then 
destroyed by shredding. Computer disks are cleared, retired, or 
destroyed when no longer useful. Entries on electronic media are 
deleted or erased when no longer needed.
    Brent L Bowen, Inspector General, Mail Stop 300, Board of Governors 
of the Federal Reserve System, Washington, DC 20551. Office location is 
Suite 1070, 1850 K Street, NW., Washington, DC 20006.
    A person requesting notice as to whether this system of records 
contains information pertaining to him or her should write to the 
Office of Inspector General, Mail Stop 300, Board of Governors of the 
Federal Reserve System, Washington, DC 20551. Individuals requesting 
their own records must provide their name and address and a notarized 
statement attesting to the individual's identity. Requests submitted on 
behalf of other persons must include their written, notarized 
authorization. Such requests in the form prescribed may also be 
presented in person at the Office of the Inspector General, Suite 1070, 
1850 K Street, NW., Washington, DC 20006. Simultaneously with 
requesting notification of inclusion in this system of records, the 
individual may request record access as described in the following 
section on ``Record access procedures''.
    Specific materials in this system have been exempted from Privacy 
Act provisions at 5U.S.C. 552a(d), regarding access to records. The 
section of this notice titled ``Exemptions claimed for the system'' 
indicates the kinds of material exempted and the reasons for exempting 
them from access. Individuals wishing to request access to non-exempt 
records should follow the procedures described in the ``Notification 
procedure'' section. Requests submitted on behalf of other persons must 
include their written, notarized authorization. If access to such 
information by a subject individual is deemed consistent with the 
purposes for which this system of records has been established, then 
the individual will be notified by the OIG as to the time and place for 
access to the records. The OIG will also notify individuals when access 
is denied.
    Individuals requesting amendment of contesting records in this 
system or records should contact the Office of Inspector General at the 
address given above, reasonably identify the records, specify the 
information being contested, the rationale for the challenge, and 
supply the information requested to be substituted. Such individuals 
must also comply with the Board's Privacy Act regulations on ``Request 
for correction or amendment of record'' (12 CFR 261a.7).
    Subject individuals, employees of the Board and the Federal Reserve 
System, other government employees, and witnesses and informants.
    Pursuant to 5 U.S.C. (k)(5), this system of records is exempted 
from 5 U.S.C. 552a(d)(1) to the extent that it consists of 
investigatory material compiled for the purpose of determining 
suitability, eligibility, or qualifications for federal civilian 
employment or federal contracts, the release of which would reveal the 
identity of a source who furnished confidential information to the 
Government under an express promise that the identity of the source 
would be held in confidence.

    By order of the Board of Governors of the Federal Reserve 
System, dated February 1, 1994.
William W. Wiles,
Secretary of the Board.
[FR Doc. 94-2666 Filed 2-4-94; 8:45 am]
BILLING CODE 6210-01-F