[Federal Register Volume 59, Number 212 (Thursday, November 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27268]
[[Page Unknown]]
[Federal Register: November 3, 1994]
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DEPARTMENT OF VETERANS AFFAIRS
Privacy Act of 1974; New System of Records
AGENCY: Department of Veterans Affairs.
ACTION: Notice of new system of records.
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SUMMARY: The Privacy Act of 1974 (5 U.S.C. 522a(e)(4)) requires that
all agencies publish in the Federal Register a notice of the existence
and character of their systems of records. Notice is hereby given that
the Department of Veterans Affairs (VA) is adding a new system of
records entitled ``Accounts Receivable Records--VA'' (88VA20A6).
DATES: Interested persons are invited to submit written comments,
suggestions or objections regarding the proposed system of records. All
relevant materials received before December 5, 1994, will be
considered. All written comments received will be available for public
inspection in Room 119 of the address given below, only, between 8 a.m.
and 4:30 p.m., Monday through Friday (except holidays) until December
13, 1994. If no public comment is received during the 30-day review
period allowed for public comment, or unless otherwise published in the
Federal Register by VA, the new system of records, and the routine use
statements included therein, are effective December 5, 1994.
ADDRESSES: Written comments concerning the proposed routine uses may be
mailed to the Secretary, Department of Veterans Affairs (271A), 810
Vermont Avenue, NW., Washington, DC 20420.
FOR FURTHER INFORMATION CONTACT:
Daniel D. Osendorf, Director, Debt Management Center (389/00), U.S.
Department of Veterans Affairs, Bishop Henry Whipple Federal Building,
1 Federal Drive, Ft. Snelling, Minnesota 55111, (612) 725-1844.
SUPPLEMENTARY INFORMATION: The Veterans Benefits Administration is
responsible for collecting debts resulting from individuals'
participation in certain programs administered by VA. These programs
include--but are not limited to--compensation, pension, educational
allowance, guaranteed and direct home loans as well as education loans.
VA established the Centralized Accounts Receivable System (CARS) in
1975 as a pilot project for automation of debt collection and
indebtedness record retrieval. At the time, and for a number of years
after, collection activity was shared among the Centralized Accounts
Receivable Division (CARD)--a division of the VA Regional Office and
Insurance Center in St. Paul, Minnesota--and the 58 individual VA
regional offices. Generally, collection techniques were limited to
written requests for payment and referral for litigation to the United
States Attorneys. CARD collected only certain categories of debts while
the regional offices had responsibility for the remaining categories.
Methods of locating delinquent debtors were relatively expensive and
labor-intensive.
Since the inception of the CARS pilot project, additional means of
automated collection and locating debtors have either been authorized
or made available by new technologies. Chief among the vehicles
broadening the scope of debt collection authority was the Debt
Collection Act of 1982 (Pub. L. 97-365). The Act authorized disclosure
of personal information to consumer reporting agencies, made possible
disclosure of taxpayer mailing addresses to creditor agencies and
authorized disclosure of debtor information for purposes of
administrative and Federal salary offset. Since the enactment of Pub.
L. 97-365, new technologies have enabled creditor agencies to pursue
authorized collection activities with increased efficiency and
innovative methods. These methods, in many cases, involve some form of
computer matching. Among the new technologies is the Credit Alert
Interactive Voice Response System (CAIVRS). This is an automated
telephone system enabling participating Government agencies to verify
information provided by new loan applicants. Information for CAIVRS is
retrieved from an automated data base.
In 1990 and 1991, VBA debt collection activities for major benefit
programs were, for the most part, consolidated under one automated
system--CARS--and one organization--Debt Management Center (DMC), The
Director, DMC, reports directly to the VBA Chief of Staff. CARS is,
now, the system of record for indebtedness accounts resulting from
participation in all major VBA programs, except the All-Volunteer Force
Educational Assistance Program (38 U.S.C. ch. 30 and 10 U.S.C. ch.
106). While that program's indebtedness records are maintained on a
personal computer system, certain ch. 30/106 debt-related computer
matching services are performed by DMC through CARS.
With the new means of collection and locating debtors developed
over the years, computer matching with other Government agencies has
become a significant part of the routine activity conducted by DMC.
Computer matching using CARS data is performed in accordance with the
provisions of the Privacy Act of 1974 (5 U.S.C. 552a), as amended.
Disclosures are made as routine uses under Privacy Act systems of
records 58VA21/22, ``Compensation, Pension, Education and
Rehabilitation Records-VA'', and 55VA26, ``Loan Guaranty Home,
Condominium and Manufactured Home Loan Applicant Records, Specially
Adapted Housing Applicant Records, and Vendee Loan Applicant Records-
VA''. Typically, the responsibility for revising or introducing new
routine uses associated with debt collection falls upon program staff
who are not directly responsible for debt collection operations.
This new system of records is being established to reflect the
centralized environment VBA continues to build for collection activity
as well as to provide the public with one reference for routine use
disclosures related to debt collection. The debt collection program
adheres to VA security and reporting requirements under title 38, Code
of Federal Regulations and other Federal regulations, as well as the
Privacy Act of 1974, as amended (5 U.S.C. 552a), and the appropriate
provisions of the Internal Revenue Code, title 26, United States Code.
Approved: October 27, 1994.
Jesse Brown,
Secretary of Veterans Affairs.
88VA20A6
Accounts Receivable Records-VA.
Automated indebtedness records for compensation, pension,
educational assistance, survivors' and dependents' educational
assistance and home loan debts are maintained at the VA's Austin
Automation/Systems Development Center in Texas. Extracts of those
automated records are maintained in the Benefits Delivery Network for
accounting and adjudication purposes. The Benefits Delivery Network is
administered by the Benefit Delivery Center, Hines, Illinois. Certain
paper records, microfilm and microfiche are maintained at the VA Debt
Management Center (DMC), Ft. Snelling, Minnesota. Education loan
automated, paper, microfilm and microfiche records are maintained at
DMC. Automated and paper indebtedness records related to the All-
Volunteer Force Educational Assistance Program are also maintained at
DMC. Paper records related to accounts receivable may be maintained in
individual file folders located at the VA regional office having
jurisdiction over the domicile of the claimant or the geographic area
in which a property securing a VA guaranteed, insured or direct loan is
located. Generally, such papers maintained at regional offices are not
used directly in the debt collection process unless they are forwarded
by conventional mail, electronic mail or facsimile to DMC. Records
provided to the Department of Housing and Urban Development (HUD) for
inclusion in the Credit Alert Interactive Voice Response System
(CAIVRS) are located at the HUD Data Processing Center in Lanham,
Maryland.
Persons indebted to the United States Government as a result of
their participation in benefit programs administered by VA under title
38, United States Code, chapters 11, 13, 15, 21, 30, 31, 34, 35, 36 and
37, including persons indebted to the United States Government by
virtue of their ownership of property encumbered by a VA-guaranteed,
insured, direct or vendee loan. Persons indebted to the United States
Government as a result of their participation in a benefit program
administered by VA under 10 U.S.C. ch. 106. Persons who received
benefits or services under 38 U.S.C. or 10 U.S.C. ch. 106, but who did
not meet the requirements for receipt of such benefits or services.
Information varies depending on the benefit or home loan program
from which the debt arose. Identifying information, including VA claim
number, Social Security number, name and address and, when appropriate,
loan reference number obtained from the ``Compensation, Pension,
Education and Rehabilitation Records-VA'' (58VA21/22) and ``Loan
Guaranty Home, Condominium and Manufactured Home Loan Applicant
Records, Specially Adapted Housing Applicant Records, and Vendee Loan
Applicant Records-VA'' (55VA26) systems of records. Initial
indebtedness amount, type of benefit from which the debt arose,
identifying number of the VA regional office with jurisdiction over the
underlying benefit claim or property subject to default or foreclosure,
name of co-obligor and property address of the defaulted home loan from
58VA21/22 and 55VA26. History of debt collection activity on the
individual, including correspondence, telephone calls, referrals to
other Government agencies, VA district counsel, private collection and
credit reporting agencies. Payments received, refunds made, interest
amount, current balance of debt and indication of status of current VA
benefit payments. Federal employment status obtained by computer
matching with Government agencies and the United States Postal Service.
Title 38, United States Code, sections 501(a), 5314 and 5315.
Federal Claims Collection Act of 1966 (Pub. L. 89-508), 31 U.S.C.
Chapter 37, Subchapter I (General) and Subchapter II (Claims of the
United States Government), 31 U.S.C. 3711, Collection and Compromise,
31 U.S.C. 3716, Administrative Offset; Debt Collection Act of 1982
(Pub. L. 97-365), 5 U.S.C. 5514, Installment Deduction for
Indebtedness.
For purposes of the following routine uses:
(a) The term, veteran, includes present, former or retired members
of the United States Armed Forces, the reserve forces or national
guard; and,
(b) The term, debtor, means any person falling within the
categories of individuals covered by this system, as set forth above. A
debtor may be a veteran, as defined above, a veteran's dependent
entitled to VA benefits in his or her own right or a person who is
neither a veteran nor a veteran's dependent for benefit purposes.
1. The record of an individual who is covered by this system may be
disclosed to a member of Congress or staff person acting for the member
when the member or staff person requests the record on behalf of and at
the written request of that individual.
2. Any information in this system may be disclosed to a Federal
agency, upon its official request, to the extent that it is relevant
and necessary to that agency's decision regarding: The hiring,
retention or transfer or an employee; the issuance of a security
clearance: the letting of a contract or the issuance or continuance of
a license, grant or other benefit given by that agency. However, in
accordance with an agreement with the U.S. Postal Service, disclosures
to the U.S. Postal Service for decisions concerning the employment of
veterans will only be made with the veteran's prior written consent.
3. Any information in this system may be disclosed, by computer
matching or otherwise, in connection with any proceeding for the
collection of an amount owed the United States by virtue of a person's
participation in any benefit program administered by VA when in the
judgment of the Secretary, or official generally delegated such
authority under standard agency delegation of authority rules (38 CFR
2.6), such disclosure is deemed necessary and proper in accordance with
38 U.S.C. 5701(b)(6).
4. The name and address of a veteran or the dependent of a veteran
and other information as is reasonably necessary to identify such
veteran or dependent may be disclosed to a consumer reporting agency
for the purpose of locating the veteran or dependent indebted to the
United States under a VA benefit program or to obtain a consumer report
in order to assess the ability of a veteran or dependent to repay an
indebtedness, provided the disclosure is consistent with 38 U.S.C.
5701(g)(2).
5. The name and address of a veteran or dependent, other
information as is reasonably necessary to identify such persons,
including personal information obtained from other Federal agencies
through computer matching programs, and any information concerning the
person's indebtedness to the United States by virtue of the person's
participation in a VA benefit program may be disclosed to a consumer
reporting agency for purposes of making such information available for
inclusion in consumer reports regarding that person and for purposes of
locating that person, provided that the provisions of 38 U.S.C.
5701(g)(4) have been met.
6. Any information is this system, including available identifying
information regarding a person, such as the person's name, address,
Social Security number, VA insurance number, VA claim number, VA loan
number, date of birth and employment information, may be disclosed,
except to consumer reporting agencies, to a third party in order to
obtain current name, address and credit report in connection with any
proceeding for the collection of an amount owed the United States by
virtue of the person's participation in a VA benefit program. Such
disclosure may be made in the course of computer matching having the
purpose of obtaining the information indicated above. Third parties may
include other Federal agencies, State probate courts, State drivers'
license bureaus, State automobile title and license bureaus and private
commercial concerns in the business of providing the information
sought.
7. Identifying information, including the debtor's name, Social
Security number and VA claim number, along with the amount of
indebtedness, may be disclosed to any Federal agency, including the
U.S. Postal Service, in the course of conducting computer matching to
identify and locate delinquent debtors employed by or receiving
retirement benefits from those agencies. Such debtors may be subject to
offset of their pay or retirement benefits under the provisions of 5
U.S.C. 5514.
8. Any information in this system, including the nature and amount
of a financial obligation as well as the history of debt collection
activity against a debtor, may be disclosed to the Federal agency
administering salary or retirement benefits to the debtor to assist
that agency in initiating offset of salary or retirement benefits to
collect delinquent debts owed the United States under VA benefit
programs.
9. The name(s) and address(es) of a veteran or beneficiary may be
disclosed to another Federal agency or to a contractor of that agency,
at the written request of the head of that agency or designee of the
head of that agency for the purpose of conducting Government research
or oversight necessary to accomplish a statutory purpose of that
agency.
10. Any information in the system, including the amount of debt,
may be disclosed at the request of a debtor to accredited service
organizations, VA-approved claims agents and attorneys acting under a
declaration of representation so that these individuals can aid persons
indebted to VA in the preparation, presentation and prosecution of
debt-related matters under the laws administered by VA. The name and
address of a debtor will not, however, be disclosed to these
individuals under this routine use if the debtor has not requested the
assistance of an accredited service organization, claims agent or any
attorney.
11. Any information in this system such as the amount of
indebtedness and collection history may be disclosed in the course of
presenting evidence to a court, magistrate or administrative authority
in matters of guardianship, inquests and commitments, to private
attorneys representing debtors rated incompetent in conjunction with
issuance of Certificates of Incompetence and to probation and parole
officers in connection with court-required duties.
12. Any information in this system, including the amount of
indebtedness and history of collection activity, may be disclosed to a
VA- or court-appointed fiduciary or a guardian ad litem in relation to
his or her representation of a debtor only to the extent necessary to
fulfill the duties of the fiduciary or guardian ad litem.
13. Any relevant information in this system may be disclosed to the
Department of Justice and United States Attorneys in the defense or
prosecution of litigation involving or pertaining to the United States.
Any relevant information in this system may also be disclosed to other
Federal agencies upon their request in connection with review of
administrative tort claims and potential tort claims filed under the
Federal Tort Claims Act, 28 U.S.C. 2672, the Military Claims Act, 10
U.S.C. 2733 and other similar claims statutes.
14. Any information concerning a person's indebtedness to the
United States by virtue of that person's participation in a benefit
program administered by VA, including personal information obtained
from other Federal agencies through computer matching programs, may be
disclosed to any third party, except consumer reporting agencies, in
connection with any proceeding for the collection of any amount owed to
the United States. Purposes of these disclosures may be to (a) assist
VA in collection of title 38 and 10 U.S.C. ch. 106 program debts and/or
costs of services, and (b) initiate legal actions for prosecuting
individuals who willfully or fraudulently obtain title 38 or 10 U.S.C.
ch. 106 benefits without entitlement.
15. The debtor's name, address, Social Security number and the
amount (excluding interest) of any indebtedness waived, compromised or
written off may be disclosed to the Treasury Department, Internal
Revenue Service, as a report of income under 26 U.S.C. 61(a)(12).
16. The name of a debtor, any other information reasonably
necessary to identify such individual and any other information
concerning the individual's indebtedness under a VA program, may be
disclosed to the Treasury Department, Internal Revenue Service, for the
collection of that indebtedness by offset of Federal income tax refunds
pursuant to 31 U.S.C. 3720A.
17. Debtors' social security numbers, VA claim numbers, loan
account numbers and other information as is reasonably necessary to
identify individual VA indebtedness accounts may be disclosed to the
Department of Housing and Urban Development for inclusion in the Credit
Alert Interactive Voice Response System (CAIVRS). Information in CAIVRS
may be disclosed to all participating agencies and lenders who
participate in the agencies' programs to enable them to verify
information provided by new loan applicants and evaluate the
creditworthiness of applicants. Records are disclosed to participating
agencies and private-sector lenders by an ongoing computer matching
program.
18. Name, Social Security numbers and any other information
reasonably necessary to ensure accurate identification may be disclosed
to the Department of the Treasury, Internal Revenue Service, to obtain
the mailing address of taxpayers who are debtors under this system of
records. Disclosure is made by computer matching and pursuant to 26
U.S.C. 6103(m)(2).
19. Any information in a record under this system of records may be
disclosed to the United States General Accounting Office (GAO) to
enable GAO to pursue collection activities authorized to that office or
any other activities within their statutory authority.
Disclosures pursuant to 5 U.S.C. 552a(b)(12) may be made from this
record system to consumer reporting agencies as defined in the Fair
Credit Reporting Act (15 U.S.C. 1681a(f)) or the Federal Claims
Collection Act of 1966 (31 U.S.C. 3701(a)(3)). The disclosure is
limited to information necessary to establish the identity of the
individual, including name, address, and taxpayer identification number
(Social Security number), the amount, status and history of the claim;
and the agency or program under which the claim arose for the sole
purpose of allowing the consumer reporting agency to prepare a
commercial credit report. 38 U.S.C. 5701(g) governs the release of
names and addresses of any person who is a present or former member of
the Armed Forces, or who is a dependent of such a person, to consumer
reporting agencies under certain circumstances. Routine uses, above,
provide for disclosure under those circumstances.
Records are maintained on magnetic tape and disk, microfilm,
microfiche, optical disk and paper documents. DMC does not routinely
maintain paper records of individual debtors in file folders with the
exception of correspondence, and replies thereto, from Congress, the
White House, members of the Cabinet and other similar sources. The
finance division of VARO St. Louis maintains certain debtor
correspondence in folders by terminal digit. Paper records related to
accounts receivable may be maintained in individual file folders
located at VA regional offices. Generally, such papers maintained
outside of DMC are not used directly in the debt collection process
unless they are first forwarded to DMC. Information stored on magnetic
media for most benefit debts may be accessed through a data
telecommunications terminal system designated as CAROLS (Centralized
Accounts Receivable On-Line System). Most CAROLS terminals are located
in DMC; however, VA regional offices generally each have one terminal
for inquiry purposes. Information stored on magnetic media and related
to the All-Volunteer Force Educational Assistance or education loan
debt collection programs may be accessed through personal computers.
Records provided to the Department of Housing and Urban Development for
inclusion in the Credit Alert Interactive Voice Response System
(CAIVRS) are maintained on magnetic media at the HUD Data Processing
Center in Lanham, Maryland. Identifying information, the amount of the
debt and benefit source of the debt may be stored on magnetic media in
records that serve as the database for the VA Benefits Delivery Network
(BDN). The BDN is operated for the adjudication of claims and the entry
of certain fiscal transactions. The identifying information, the amount
of the debt and benefit source of the debt are transmitted to the
Centralized Accounts Receivable System (CARS) or a personal computer
local area network system before collection activity commences. When a
debtor is awarded gratuitous benefits under VA programs, the BDN may
operate to offset all or part of retroactive funds awarded, if any, to
reduce the balance of the indebtedness.
Paper documents, microfilm and microfiche are indexed by VA file
number or date of receipt. Automated records are indexed by VA claim
number, Social Security account number, name and loan account number in
appropriate circumstances. Records in CAIVRS may only be retrieved by
Social Security number.
1. Physical Security: (a) Access to working spaces and document
storage areas in DMC is restricted by cipher locks and to VA employees
on a need-to-know basis. Generally, document storage areas in VA
offices other than DMC are restricted by VA employees on a need-to-know
basis. VA offices are generally protected from outside access by the
Federal Protective Service or other security personnel. Strict control
measures are enforced to ensure that access to and disclosure from
documents, microfilm and microfiche are limited to a need-to-know
basis. (b) Access to CAROLS data telecommunications terminals is by
authorization controlled by the site security officer. The security
officer is assigned responsibility for privacy-security measures,
especially for review of violation logs, information logs and control
of password distribution. (c) Access to data processing centers is
generally restricted to center employees, custodial personnel Federal
Protective Service and other security personnel. Access to computer
rooms is restricted to authorized operational personnel through
electronic locking devices. All other personnel gaining access to
computer rooms are escorted.
2. CAROLS and Personnel Computer Local Area Network (LAN) Security:
(a) Usage of CAROLS and LAN terminal equipment is protected by password
access. Electronic keyboard locks are activated on security errors. (b)
At the data processing centers, identification of magnetic media
containing data is rigidly enforced using labeling techniques.
Automated storage media which are not in use are stored in tape
libraries which are secured in locked rooms. Access to programs is
controlled at three levels: programming, auditing and operations.
3. CAIVRS Security: Access to the HUD data processing center from
which CAIVRS is operated is generally restricted to center employees
and authorized contact employees. Access to computer rooms is
restricted to authorized operational personnel through locking devices.
All other persons gaining access to computer rooms are escorted.
Records in CAIVRS use Social Security numbers as identifiers. Access to
information files is restricted to authorized employees of
participating agencies and authorized employees of lenders who
participate in the agencies' programs. Access is controlled by agency
distribution of passwords. Information in the system may be accessed by
use of a touch-tone telephone by authorized agency and lender employees
on a need-to-know basis.
Microfilm and microfiche are retained in metal cabinets in DMC for
25 years. CARS records are retained until termination of debt
collection (payment in full, write off, compromise or waiver). All
other automated storage media retained and disposed of in accordance
with disposition authorization approved by the Archivist of the Untied
States. DMC generally forwards all substantive paper documents to VA
regional offices for storage in claims files or loan files. Those
documents are retained and disposed of in accordance with the
appropriate system of records. Information provided to HUD for CAIVRS
is stored on magnetic tape. The tapes are returned to VA for updating
each month. HUD does not keep separate copies of the tapes.
Director, Debt Management Center (389/00), U.S. Department of
Veterans Affairs, Bishop Henry Whipple Federal Building, 1 Federal
Drive, Ft. Snelling, MN 55111.
An individual who wishes to determine whether a record is being
maintained in this system under his or her name or other personal
identifier, or wants to determine the contents of such record, should
submit a written request to the system manager indicated above.
Individuals seeking information regarding access to and contesting
of VA records may write, call or visit the nearest VA regional office.
Address locations are listed in VA Appendix 1.
See record access procedures, above.
The records in this system are derived from two other systems of
records as set forth in ``Categories of records in the system'', above,
persons indebted to the United States by virtue of their participation
in programs administered by VA, dependents of those persons,
fiduciaries for those persons (VA or court appointed), other Federal
agencies, States and local agencies, private collection agencies,
consumer reporting agencies, State, local and county courts and clerks,
other third parties and other VA records.
[FR Doc. 94-27268 Filed 11-2-94; 8:45 am]
BILLING CODE 8320-01