[Federal Register Volume 61, Number 21 (Wednesday, January 31, 1996)]
[Notices]
[Pages 3525-3529]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1812]



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DEPARTMENT OF VETERANS AFFAIRS


Privacy Act of 1974; Amendments to a System of Records

AGENCY: Department of Veterans Affairs (VA).

ACTION: Notice of amendments to system of records.

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SUMMARY: The Department of Veterans Affairs is amending a system of 
records entitled, ``VA Supervised Fiduciary and Beneficiary Records--VA 
37VA27'' which was completely revised in 47 FR 29132 dated July 6, 
1982. The system of records has been altered to update U.S. Code 
citations, add an additional category of individuals to be covered by 
the system and five new categories of records; identify two existing 
paper file groups within the system that may contain record 
information, and name an automated record system that takes the place 
of the ADIS (Automated Diary and Index System). Two new routine uses 
are being added and two existing routine uses are being deleted.

DATES AND ADDRESSES: Interested persons are invited to submit written 
comments, suggestions or objections regarding the proposed system of 
records to the Director, Office of Regulations management (02D), 
Department of Veterans Affairs, 810 Vermont Avenue, NW., Washington, DC 
20420. All relevant material received before march 1, 1996, will be 
considered. All written comments received will be available for public 
inspection in the Office of Regulations Management, Room 1176, 801 I 
Street, NW., Washington, DC 20001, from 8 a.m. to 4:30 p.m., Monday 
through Friday (except Federal holidays).
    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 routine use statements included herein are 
effective March 1, 1996, and all other provisions included herein are 
effective March 1, 1996.

FOR FURTHER INFORMATION CONTACT:
Robert Bishop, Program Analyst, Outreach and Customer Services Staff 
(274), Veterans Benefits Administration, 810 Vermont, NW., Washington, 
DC 20420, telephone (202) 273-6740.

SUPPLEMENTARY INFORMATION: The name of the system is to be changed from 
``VA Supervised Fiduciary and Beneficiary Records--VA'' (37VA27) to 
``VA Supervised Fiduciary/Beneficiary and General Investigative 
Records--VA'' (37VA27). The title change more accurately reflects the 
type of records maintained in this system.
    The new category of individuals will include veterans or other 
beneficiaries for whom investigations of other than fiduciary program 
matters are conducted. These investigations are called nonfiduciary 
program (nonprogram) field examinations or investigations. The change 
to this system will also incorporate additions to the types of records 
maintained: (1) Copies of nonfiduciary program investigative reports, 
(2) photographs of people (incompetent beneficiaries and other persons 
who are the subject of a VA investigation), places, and things, (3) 
finger print records, (4) incompetent beneficiary record information in 
the Fiduciary Beneficiary System (FBS), and (5) Social Security 
Administration (SSA) information and records pertaining to incompetent 
beneficiaries who are also in receipt of VA benefits.
    Identifying nonfiduciary program investigative reports within the 
system of records will allow VA to file copies of records of completed 
nonfiduciary program investigations by a name or some other identifier. 
These investigations may be conducted for the purpose of developing 
evidence to enable a VA organizational element to make administrative 
decisions on benefits eligibility and other issues. Nonprogram field 
examinations or investigations are also used to develop evidence for 
further investigation of potential criminal issues. Currently there is 
no authority to file and maintain copies of nonfiduciary program 
investigative reports by name or other identifier. Original reports are 
sent to the VA element that requested the investigation where 
disclosures of information are covered under other system of records 
routine uses. VA field station personnel may place copies of these 
reports in chronological order in files called veterans files and 
correspondence files making it difficult to retrieve a report in medium 
to large stations where the number of nonfiduciary program 
investigations tends to be large. Follow-up requests for information 
about the reports often are made by name or numerical identifier and do 
not contain the approximate dates of either the report or the request 
for the investigation.
    Adding to the category of records photographs of people 
(incompetent 

[[Page 3526]]
beneficiaries and other persons who are the subject of a VA 
investigation), places, and things provides a more accurate description 
of the type of record material that may be found in a principal 
guardianship folder (PGF), veterans file, or a correspondence file. The 
accumulation and retention of this type of material will assist VA 
field examiners in making positive identification of certain 
incompetent beneficiaries (to include missing persons) and other 
persons under investigation, provide graphic evidence in support of 
narrative reports, and verification of claimed purchases by 
fiduciaries. Acquisition and retention of this type of material will 
lessen the potential for fraud and reduce the number of manhours needed 
to accomplish the more complex investigations. Finger print records are 
sometimes acquired during missing veteran and other types of 
investigations where a positive identification of a person is required 
in order to settle a question on benefits eligibility.
    The principal guardianship folder (PGF) is the primary repository 
for information within this records system. Two other files called 
veterans files and correspondence files are used to hold copies of 
fiduciary program and nonfiduciary program reports as well as 
attachments, exhibits, and other material such as copies of the records 
cited above. Documents placed in these two files are kept on a 
temporary basis for control and follow-up purposes since the original 
reports and other documents are returned to the requesting element.
    The Fiduciary-Beneficiary System (FBS) is an automated master 
record, diary and management information system that was developed to 
replace the Automated Diary and Index System (ADIS). The system 
provides current, readily available beneficiary/fiduciary information 
and management support to all 58 regional offices for work controls, 
statistical work counts and evaluation purposes. The system includes an 
enhanced diary program to provide improved, more efficient service to 
incompetent beneficiaries.
    Many VA beneficiaries who are incompetent or under a legal 
disability receive benefits from Social Security Administration (SSA) 
concurrently with VA benefits. By agreement with SSA, VA will become 
the lead agency for supervision of cases of incompetent beneficiaries 
of common interest. Therefore, a sharing of information such as 
accountings and payment/payee status will take place. The information 
provided by Social Security Administration may be retained in the VA 
system of records in its various formats and disclosed according to VA 
record system routine uses.
    Routine uses have been amended to accommodate disclosures to third 
parties who might have information on an issue under VA investigation 
or information about an incompetent beneficiary or other person under 
investigation. Also included in the amended routine uses will be 
disclosures to the Social Security Administration regarding 
incompetency cases of common interest.
    VA received two adverse decisions, Doe versus DiGenova, 779 F.2d 74 
(D.C. Cir. 1985) and DOE versus Stephens, 851 F. 2d 1457 (D.C. Cir. 
1988), involving disclosure of veteran records subject to 38 U.S.C. 
5701, and 5 U.S.C. 552a, the Privacy Act of 1974. As a result of these 
decisions and their potential impact on VA operations, including those 
of the District Counsel, VA sought guidance from the Office of Legal 
Counsel in the Department of Justice (DOJ). VA has modified its 
practice in disclosing Privacy Act records in response to a request 
from a law enforcement entity conducting an investigation, and has, in 
most instances, stopped disclosing Privacy Act records pursuant to the 
receipt of a subpoena for records. Therefore, the routine use providing 
for disclosure of information in response to subpoenas is being 
deleted.

    Dated: January 17, 1996.
Jesse Brown,
Secretary of Veterans Affairs.
37VA27
System name:
    VA Supervised Fiduciary/Beneficiary and General Investigative 
Records--VA37VA27.
System location:
    Records are maintained at VA regional offices, VA medical and 
regional office centers, VA regional office and insurance centers, and 
at the Austin Data Processing Center. These records are generally 
maintained by the regional office activity having jurisdiction over the 
geographical area in which the VA beneficiary resides. Addresses of VA 
field stations and the Data Processing Center are listed in VA Appendix 
1.
Categories of individuals covered by the system:
    The following categories of individuals are covered by this system: 
(1) A VA beneficiary (i.e., a veteran or a non-veteran adult who 
receives VA monetary benefits, lacks the mental capacity to manage his 
or her own financial affairs regarding disbursement of funds without 
limitation, and is either rated incompetent by VA or adjudged to be 
under legal disability by a court of competent jurisdiction; or a child 
who has not reached majority under State law and receives VA monetary 
benefits); (2) a VA supervised fiduciary (i.e., a VA Federal fiduciary 
to include legal custodians, spouse payees, superintendents of Indian 
reservations and custodians-in-fact appointed by VA to serve as payee 
of VA monetary benefits for an incompetent VA beneficiary; or a person 
or legal entity appointed by a State or foreign court to supervise the 
person and/or estate of a VA beneficiary adjudged to be under a legal 
disability. The statutory title of a court-appointed fiduciary may vary 
from State to State); (3) a chief officer of a hospital treatment, 
domiciliary, institutional or nursing home care facility wherein a 
veteran, rated incompetent by VA, is receiving care and who has 
contracted to use the veteran's VA funds in a specific manner; (4) a 
SDP (supervised direct payment) beneficiary (i.e, an incompetent adult 
who receives VA monetary benefits, or other individual for whom an 
investigation of other than a fiduciary or guardianship matter is 
conducted for the purpose of developing evidence to enable a VA 
organizational element to make administrative decisions on benefits 
eligibility and other issues; or, to develop evidence for further 
investigations of potential criminal issues.
Categories of records in the system:
    The records in the Principal Guardianship Folder (PGF) are the 
primary records in this system. SSA derived records, as needed, are 
also contained in this system. These records as well as secondary files 
called veterans files and correspondence files may contain the 
following types of information: (1) Field examination reports (i.e., VA 
Form 27-4716a or 27-3190, Field Examination Request and Report, which 
contains a VA beneficiary's name, address, social security number, VA 
file number, an assessment of the VA beneficiary's ability to handle VA 
and non-BA funds, description of family relationships, economic and 
social adjustment data, information regarding activities, and name, 
address, and assessment of the performance of a VA-supervised 
fiduciary); (2) correspondence from and to a VA beneficiary, a VA-
supervised fiduciary, and other interested third parties; (3) medical 
records (i.e., medical and social work service reports 

[[Page 3527]]
generated in VA, State, local, and private medical treatment facilities 
and private physicians' offices indicating the medical history of the 
VA beneficiary including diagnosis, treatment and nature of physical or 
mental disability); (4) financial records (e.g., accountings of a 
fiduciary's management of a VA beneficiary's income and estate, amount 
of monthly benefits received, amounts claimed for commissions by the 
VA-supervised fiduciary, certificates of balance on accounts from 
financial institutions, and withdrawal agreements between VA, financial 
institutions, and VA-supervised fiduciary); (5) court documents (e.g., 
petitions, court orders, letters of fiduciaryship, inventories of 
assets, and depositions); (6) contractual agreements to serve as a VA 
Federal Fiduciary; (7) photographs of people (incompetent 
beneficiaries, fiduciaries, and other persons who are the subject of a 
VA investigation), places, and things; (8) fingerprint records; and (9) 
Social Security Administration records containing information about the 
type and amount of SSA benefits paid to beneficiaries who are eligible 
to receive benefits under both VA and SSA eligibility criteria, records 
containing information developed by SSA about SSA beneficiaries who are 
in need of representative payees, accountings to SSA, and records 
containing information about SSA representative payees. Also contained 
in this system are copies of nonfiduciary program investigation 
records. These records are reports of field examinations or 
investigations performed at the request of any organizational element 
of VA about any subject under the jurisdiction of VA other than a 
fiduciary issue. In addition to copies of the reports, records may 
include copies of exhibits or attachments such as photographs of people 
places and things; sworn statements; legal documents involving loan 
guaranty transactions; bankruptcy; and debts owned to VA; accident 
reports; birth, death, and divorce records; certification of search for 
vital statistics documents; and beneficiary's financial statements and 
tax records; immigration information; and newspaper clippings.
Authority for maintenance of the system:
    Title 38, United States Code, Chapter 3, section 501(a), (b); title 
38, United States Code, Chapter 55.
Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    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 request of that individual.
    2. Any information in this system, except for the name and address 
of a veteran, which is relevant to a suspected violation or reasonably 
imminent violation of law, whether civil, criminal or regulatory in 
nature and whether arising by general or program statute or by 
regulation, rule or order issued pursuant thereto, may be disclosed to 
a Federal, State, local or foreign agency charged with the 
responsibility of investigating or prosecuting such violation, or 
charged with enforcing or implementing the statute, rule, regulation or 
order issued pursuant thereto, at the initiative of VA.
    3. The name and address of a veteran, which is relevant to a 
suspected violation or reasonably imminent violation of law, whether 
civil, criminal or regulatory in nature and whether arising by general 
or program statute or by regulation, rule or order issued pursuant 
thereto, may be disclosed to a Federal agency charged with the 
responsibility of investigating or prosecuting such violation, or 
charged with enforcing or implementing the statute, regulation, rule or 
order issued pursuant thereto, in response to its official request, 
when that information is for law enforcement investigation purposes, 
and such request is in writing and otherwise complies with subsection 
(b)(7) of the Privacy Act.
    4. The name and address of a veteran, which is relevant to a 
suspected violation or reasonably imminent violation of law concerning 
public health or safety, whether civil, criminal or regulatory in 
nature and whether arising by general or program statute or by 
regulation, rule or order issued pursuant thereto, may be disclosed to 
any foreign, State or local governmental agency or instrumentality 
charged under applicable law with the protection of the public health 
or safety, if a qualified representative of such organization, agency 
or instrumentality has made a written request that such name and 
address by provided for a purpose authorized by law, and, if the 
information is sought for law enforcement investigation purposes, and 
the request otherwise complies with subsection (b)(7) of the Privacy 
Act.
    5. The name and address of a veteran may be disclosed to any 
nonprofit organization if the release is directly connected with the 
conduct of programs and the utilization of benefits under title 38 
(such disclosures include computerized lists of names and addresses).
    6. Any information in this system, including name, address, social 
security number, VA file number, medical records, financial records and 
field examination reports of a VA beneficiary, and the name, address 
and information regarding the activities of a VA-supervised fiduciary 
or beneficiary may be disclosed at the request of a VA beneficiary or 
fiduciary to a Federal, State, or local agency in order for VA to 
obtain information relevant to a VA decision concerning the payment and 
usage of funds payable by VA on behalf of a beneficiary, or to enable 
VA to assist a beneficiary or VA-supervised fiduciary in obtaining the 
maximum amount of benefits for a VA beneficiary from a Federal, State, 
or local agency.
    7. Any information in this system, including name, address, social 
security number, VA file number, medical records, financial records and 
field examination reports of a VA beneficiary who is in receipt of VA 
and Social Security Administration (SSA) benefits concurrently, and the 
name, address and information regarding the activities of a VA-
supervised fiduciary may be disclosed to a representative of the Social 
Security Administration to the extent necessary for the operation of a 
VA program, or to the extent needed as indicated by such 
representative.
    8. The name and address of a VA beneficiary, VA rating of 
incompetency, and the field examination report may be disclosed to a 
Federal agency, upon its official request, in order for that agency to 
make decisions on such matters as competency and dependency in 
connection with eligibility for that agency's benefits. This 
information may also be disclosed to a State or local agency, upon its 
official request in order for that agency to make decisions on such 
matters as competency and dependency in connection with eligibility for 
that agency's benefits, if the information pertains to a VA beneficiary 
who is not a veteran, or if the name and address of the veteran is 
provided beforehand.
    9. Any information in this system, including medical records, 
financial records, field examination reports, correspondence and court 
documents may be disclosed in the course of presenting evidence to a 
court, magistrate or administrative tribunal in matters of 
guardianship, inquests and commitments, and to probation and parole 
officers in connection with court required duties.
    10. Only so much information, including information in VA records 
obtained from Social Security Administration, and the name and address 
of a VA beneficiary, fiduciary, 

[[Page 3528]]
or other person under investigation, as is necessary to obtain a 
coherent and informed response may be released to a third party who may 
have information bearing on an issue under VA investigation.
    11. Any information in this system may be disclosed to a VA or 
court-appointed fiduciary in order for that fiduciary to perform his or 
her duties, provided this information will only be released when the 
disclosure is for the benefit of the beneficiary. Any information in 
this system may also be disclosed to a proposed fiduciary in order for 
the fiduciary to make an informed decision with regard to accepting 
fiduciary responsibility for a VA beneficiary.
    12. Any information in this system, including medical records, 
correspondence records, financial records, field examination reports 
and court documents may be disclosed to an attorney employed by the 
beneficiary, or to a spouse, relative, next friend or to a guardian ad 
litem representing the interests of the beneficiary, provided the name 
and address of the beneficiary is given beforehand and the disclosure 
is for the benefit of the beneficiary, and the release is authorized by 
38 U.S.C. 7332, if applicable. Records subject to 38 U.S.C. 7332 
contain information on medical treatment for drug abuse, alcoholism, 
sickle cell anemia, and HIV.
    13. Any information in this system may be disclosed to the 
Department of Justice and to U.S. Attorneys in defense of prosecution 
of litigation involving the United States and to Federal agencies upon 
their official request in connection with review of administrative tort 
claims filed under the Federal Tort Claims Act, 28 U.S.C. 2672, as well 
as other claims.
    14. Any information in this system including available identifying 
information regarding the debtor, such as the name of the debtor, last 
known address of the debtor, name of debtor's spouse, social security 
account number, VA insurance number, VA file number, place of birth and 
date of birth of debtor, name and address of debtor's employer or firm 
and dates of employment, may be disclosed to other Federal agencies, 
State probate courts, State drivers license bureaus, State automobile 
title and license bureaus and the General Accounting Office in order to 
obtain current address, locator and credit report assistance in the 
collection of unpaid financial obligations owed the United States. The 
purpose is consistent with the Federal Claims Collection Act of 1966 
and 38 U.S.C. 5701(b)(6).
    15. Any information in this system relating to the adjudication of 
incompetency of a VA beneficiary either by the court of competent 
jurisdiction or by VA may be disclosed to a lender or prospective 
lender participating in the VA Loan Guaranty Program who is extending 
credit or proposing to extend credit on behalf of a veteran in order 
for VA to protect incompetent veterans from entering into unsound 
financial transactions which might deplete the resources of the veteran 
and to protect the interest of the Government giving credit assistance 
to a veteran.
Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Fiduciary Program beneficiary and fiduciary information contained 
in the PGF, veterans' files, and correspondence files are maintained on 
paper documents in case folders and/or in the Fiduciary Beneficiary 
System (e.g., magnetic tapes, magnetic disks, and computer lists) and 
are stored at the regional offices (includes record information stored 
in the Fiduciary Beneficiary System), VA Central Office, and VA Data 
Processing Center at Austin, Texas. Copies of nonfiduciary program 
investigations and related information contained in veteran's files and 
correspondence files are maintained on paper documents and are stored 
at the regional offices and at VA Central Office.
Retrievability:
    Paper documents and automated storage media are indexed by name and 
file number of VA beneficiary or other individual.
Safeguards:
    1. The individual case folder and computer lists are generally kept 
in steel cabinets when not in use. The cabinets are located in areas 
which are locked after work hours. Access to these records is 
restricted to authorized VA personnel on a ``need to know'' basis. 
Magnetic tapes and disks, when not in use, are maintained under lock 
and key in areas accessed by authorized VA personnel on a ``need to 
know'' basis.
    2. Access to the computer rooms within the regional office is 
generally limited by appropriate locking devices and restricted to 
authorized VA employees and vendor personnel. ADP peripheral devices 
are generally placed in secure areas (areas that are locked or have 
limited access) or are otherwise protected. Information in the 
Fiduciary Beneficiary System may be accessed by authorized VA 
employees. Access to file information is controlled at two levels; the 
system recognizes authorized employees by a series of individually 
unique passwords/codes and the employees are limited to only the 
information in the file which is needed in the performance of their 
official duties.
    3. Access to the VA data processing center is generally restricted 
to center employees, custodial personnel, Federal Protective Service 
and other security personnel. Access to the computer rooms is 
restricted to authorized operational personnel through electronic 
locking devices. All other persons gaining access to the computer rooms 
are escorted.
    4. Access to records in VA Central Office is only authorized to VA 
personnel on a ``need to know'' basis. Records are maintained in manned 
rooms during working hours. During non-working hours, there is limited 
access to the building with visitor control by security personnel.
Retention and disposal:
    Paper documents and computer lists are destroyed anywhere from 60 
days after receipt to 2 years after VA supervision has ceased, 
depending on the type of record or document. Correspondence files are 
destroyed after 1 year, veteran files after 2 years, PGFs 2 years after 
the case becomes inactive. Investigations data and information obtained 
from SSA is destroyed according to the time standards established in 
the two preceding sentences. Information contained in the Fiduciary 
Beneficiary System is automatically purged two years after the case 
becomes inactive. A record is determined inactive when it comes under 
the provision of the Veterans Services Division General Operations 
Manual, M27-1, part 3, section 1, chapter 8, paragraphs 8.23-8.42.
System manager(s) and address:
    Director, Veterans Assistance Service (27), VA Central Office, 
Washington, DC 20420.
Notification procedure:
    Any 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 content of such records should 
submit a written request or apply in person to the nearest VA regional 
office or center. Addresses for VA regional offices and centers may be 
found in VA Appendix 1. All inquiries must reasonably identify the type 
of records involved, e.g., guardianship file. Inquiries should include 
the individual's full name, VA file number and return address. If a VA 
file number 

[[Page 3529]]
is not available, then as much of the following information as possible 
should be forwarded: full name, branch of service, dates of service, 
service numbers, social security number, and date of birth.
Records access procedures:
    Individuals seeking information regarding access to or contesting 
VA records in this system may write, call or visit the nearest VA 
regional office or center.
Contesting record procedures:
    (See records access procedures above.)
Record source categories:
    VA beneficiary, VA beneficiary's dependents, VA-supervised 
fiduciaries, field examiners, estate analysts, third parties, other 
Federal, State, and local agencies, and VA records.

FR Doc. 96-1812 Filed 1-30-96; 8:45 am]
BILLING CODE 8320-01