[Federal Register Volume 61, Number 247 (Monday, December 23, 1996)]
[Notices]
[Pages 67534-67537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32332]


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DEPARTMENT OF DEFENSE

Office of the Secretary


Privacy Act of 1974; Notice to Add a Record System

AGENCY: Defense Finance and Accounting Service, DOD.

ACTION: Notice to add a record system.

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SUMMARY: The Defense Finance and Accounting Service proposes to add a 
system of records notice to its inventory of record systems subject to 
the Privacy Act of 1974 (5 U.S.C. 552a), as amended.
DATES: The addition will be effective on January 22, 1997, unless 
co,mments are received that would result in a contrary determination.
ADDRESSES: Send comments to Administrative Policy and Support, Defense 
Finance and Accounting Service, Room 416, Arlington, VA 22240-5291
FOR FURTHER INFORMATION CONTACT: Ms. Genevieve Turney at (703) 607-
5165.
SUPPLEMENTARY INFORMATION:
    The proposed system report, as required by 5 U.S.C. 522a(r) of the 
Privacy Act of 1974, as amended, was submitted on December 10, 1996, to 
the Committee on Government Reform and Oversight of the House of 
Representatives, the Committee on Governmental Affairs of the Senate, 
and the Office of Management and Budget (OMB) pursuant to paragraph 4c 
of Appendix I to OMB Circular No. A-130, `Federal Agency 
Responsibilities for Maintaining Records About Individuals,' dated 
February 8, 1996 (February 20, 1996, 61 FR 6427).
    Dated: December 16, 1996.
L. M. Bynum,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

DEFENSE FINANCE AND ACCOUNTING SERVICE

REQUESTING RECORDS

    Records are retrieved by name or by some other personal identifier. 
It is therefore especially important for expeditious service when 
requesting a record that particular attention be provided to the 
Notification and/or Access Procedures of the particular record system 
involved so as to furnish the required personal identifiers, or any 
other pertinent personal information as may be required to locate and 
retrieve the record.

BLANKET ROUTINE USES

    Certain `blanket routine uses' of the records have been established 
that are applicable to every record system maintained within the 
Department of Defense unless specifically stated otherwise within a 
particular record system. These additional blanket routine uses of the 
records are published below only once in the interest of simplicity, 
economy and to avoid redundancy.

LAW ENFORCEMENT ROUTINE USE

    In the event that a system of records maintained by this component 
to carry out its functions indicates a violation or potential violation 
of law, whether civil, criminal or regulatory in nature, and whether 
arising by general statute or by regulation, rule or order issued 
pursuant thereto, the relevant records in the system of records may be 
referred, as a routine use, to the appropriate agency, whether Federal, 
state, local, or foreign, 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.

DISCLOSURE WHEN REQUESTING INFORMATION ROUTINE USE

    A record from a system of records maintained by this component may 
be disclosed as a routine use to a Federal, state, or local agency 
maintaining civil, criminal, or other relevant enforcement information 
or other pertinent information, such as current licenses, if necessary 
to obtain information relevant to a component decision concerning the 
hiring or retention of an employee, the issuance of a security 
clearance, the

[[Page 67535]]

letting of a contract, or the issuance of a license, grant or other 
benefit.

DISCLOSURE OF REQUESTED INFORMATION ROUTINE USE

    A record from a system of records maintained by this component may 
be disclosed to a Federal agency, in response to its request, in 
connection with the hiring or retention of an employee, the issuance of 
a security clearance, the reporting of an investigation of an employee, 
the letting of a contract, or the issuance of a license, grant or other 
benefit by the requesting agency, to the extent that the information is 
relevant and necessary to the requesting agency's decision on the 
matter.

CONGRESSIONAL INQUIRIES ROUTINE USE

    Disclosure from a system of records maintained by this component 
may be made to a Congressional office from the record of an individual 
in response to an inquiry from the Congressional office made at the 
request of that individual.

PRIVATE RELIEF LEGISLATION ROUTINE USE

    Relevant information contained in all systems of records of the 
Department of Defense published on or before August 22, 1975, may be 
disclosed to the Office of Management and Budget in connection with the 
review of private relief legislation as set forth in OMB Circular A-19 
at any stage of the legislative coordination and clearance process as 
set forth in that Circular.

DISCLOSURES REQUIRED BY INTERNATIONAL AGREEMENTS ROUTINE USE

    A record from a system of records maintained by this component may 
be disclosed to foreign law enforcement, security, investigatory, or 
administrative authorities in order to comply with requirements imposed 
by, or to claim rights conferred in, international agreements and 
arrangements including those regulating the stationing and status in 
foreign countries of Department of Defense military and civilian 
personnel.

DISCLOSURE TO STATE AND LOCAL TAXING AUTHORITIES ROUTINE USE

    Any information normally contained in IRS Form W-2 which is 
maintained in a record from a system of records maintained by this 
component may be disclosed to state and local taxing authorities with 
which the Secretary of the Treasury has entered into agreements 
pursuant to Title 5, U.S. Code, Sections 5516, 5517, 5520, and only to 
those state and local taxing authorities for which an employee or 
military member is or was subject to tax regardless of whether tax is 
or was withheld. This routine use is in accordance with Treasury Fiscal 
Requirements Manual Bulletin Number 76-07.

DISCLOSURE TO THE OFFICE OF PERSONNEL MANAGEMENT ROUTINE USE

    A record from a system of records subject to the Privacy Act and 
maintained by this component may be disclosed to the Office of 
Personnel Management concerning information on pay and leave, benefits, 
retirement deductions, and any other information necessary for the 
Office of Personnel Management to carry out its legally authorized 
Government-wide personnel management functions and studies.

DISCLOSURE TO THE DEPARTMENT OF JUSTICE FOR LITIGATION ROUTINE USE

    A record from a system of records maintained by this component may 
be disclosed as a routine use to any component of the Department of 
Justice for the purpose of representing the Department of Defense, or 
any officer, employee or member of the Department in pending or 
potential litigation to which the record is pertinent.

DISCLOSURE TO MILITARY BANKING FACILITIES OVERSEAS ROUTINE USE

    Information as to current military addresses and assignments may be 
provided to military banking facilities who provide banking services 
overseas and who are reimbursed by the Government for certain checking 
and loan losses. For personnel separated, discharged, or retired from 
the Armed Forces, information as to last known residential or home of 
record address may be provided to the military banking facility upon 
certification by a banking facility officer that the facility has a 
returned or dishonored check negotiated by the individual or the 
individual has defaulted on a loan and that if restitution is not made 
by the individual, the U.S. Government will be liable for the losses 
the facility may incur.

DISCLOSURE OF INFORMATION TO THE GENERAL SERVICES ADMINISTRATION 
ROUTINE USE

    A record from a system of records maintained by this component may 
be disclosed as a routine use to the General Services Administration 
for the purpose of records management inspections conducted under 
authority of 44 U.S.C. 2904 and 2906.

DISCLOSURE OF INFORMATION TO THE NATIONAL ARCHIVES AND RECORDS 
ADMINISTRATION ROUTINE USE

    A record from a system of records maintained by this component may 
be disclosed as a routine use to the National Archives and Records 
Administration for the purpose of records management inspections 
conducted under authority of 44 U.S.C. 2904 and 2906.

DISCLOSURE TO THE MERIT SYSTEMS PROTECTION BOARD ROUTINE USE

    A record from a system of records maintained by this component may 
be disclosed as a routine use to the Merit Systems Protection Board, 
including the Office of the Special Counsel for the purpose of 
litigation, including administrative proceedings, appeals, special 
studies of the civil service and other merit systems, review of OPM or 
component rules and regulations, investigation of alleged or possible 
prohibited personnel practices; including administrative proceedings 
involving any individual subject of a DOD investigation, and such other 
functions, promulgated in 5 U.S.C 1205 and 1206, or as may be 
authorized by law.

COUNTERINTELLIGENCE PURPOSES ROUTINE USE

    A record from a system of records maintained by this component may 
be disclosed as a routine use outside the DOD or the U.S. Government 
for the purpose of counterintelligence activities authorized by U.S. 
Law or Executive Order or for the purpose of enforcing laws which 
protect the national security of the United States.
T7332

System name:
    Defense Debt Management System.

System location:
    Primary location: Defense Finance and Accounting Service-Denver 
Center, 6760 East Irvington Place, Denver, CO 80279-8000.
    Defense Finance and Accounting Service-Indianapolis Center, 8899 
East 56th Street, Indianapolis, IN 46249-1460;
    Defense Finance and Accounting Service-Columbus Center, 4280 East 
5th Avenue, Building 3, Columbus, OH 43218-2317;

[[Page 67536]]

    Defense Finance and Accounting Service-Cleveland Center, 1240 East 
9th Street, Cleveland, OH 44199-2056;
    Defense Finance and Accounting Service-Kansas City Center, 1500 
East Bannister Road, Kansas City, MO 64197-0001;
    Defense Accounting Offices at military bases and at National Guard 
activities, and Reserve units of all the military services. Official 
mailing address can be obtained from the Chief, Debt Management Systems 
Division, Directorate of Debt and Claims Management, Defense Finance 
and Accounting Service-Denver Center, 6760 East Irvington Place, 
Denver, CO 80279-8000.

Categories of individuals covered by the system:
    Contractors, former members of the Armed Forces (separated and 
retired members), former civilian employees (separated), and any other 
individuals who are indebted to a Department of Defense (DoD) agency 
that has transferred debts to the Defense Debt Management System 
serviced by the Defense Finance and Accounting Service. EXCLUSION: This 
system does not include current and retired DoD civilian employees or 
active duty and reserve military personnel.

Categories of records in the system:
    Information varies depending on the debtor and the related history 
of debt collection activity. Normally, the name, taxpayer 
identification number, address, amount of debt or delinquent amount, 
basis of the debt, date debt arose, office referring debt, collection 
efforts, credit reports, debt collection letters, and correspondence to 
or from the debtor relating to the debt.
    Correspondence with employing agencies of debtors requesting that 
action begin to collect the delinquent debt through voluntary or 
involuntary offset procedures against the employees' salary or 
compensation due a retiree.
    Correspondence with other agencies requesting offset from payments 
due the debtor. These records may include individuals name, rank, date 
of birth, Social Security Number, debt amount documentation 
establishing overpayment status, military pay records, financial status 
affidavits, credit references, and substantiating documents such as 
military pay orders, pay adjustment authorizations, military master pay 
account printouts, records of travel payments, financial record data 
folders, miscellaneous vouchers, debtor financial records, credit 
reports, promissory notes, and debtor financial statements.
    Information on U. S. Treasury Department, Internal Revenue Service 
(IRS) and General Accounting Office (GAO) inquiries, judicial 
proceedings regarding bankruptcy, pay account histories, and token 
payment information.
    Applications for waiver of erroneous payment or for remission of 
indebtedness with supporting documents including statements of 
financial status (personal income and expenses), statements of 
commanders or Defense Accounting Officers, correspondence with members 
and employees, or overpayments of Survivor Benefit Plan (SBP) benefits.
    Delinquent accounts receivable from field Defense Accounting 
Officers including returned checks, medical services billings, 
collection records, and summaries of military investigations.
    Reports from probate courts regarding estates of deceased members.
    Reports from bankruptcy courts regarding claims of the U.S. 
Government against debtors.
    Correspondence between contracting officer, administrative 
contracting officer, or a DFAS center and contractor, that terminates a 
contract, demands payment, and establishes debt, and any other related 
papers.

Authority for maintenance of the system:
    5 U.S.C. 301, 5512, 5513, 5514, and 5584; 10 U.S.C. 1442, 1453, 
2774, 2775, 9835; 31 U.S.C. 3325, 3342, 3526, 3702, 3711, 3716-3718; 32 
U.S.C. 710, 716; 37 U.S.C. 1007(c); 40 U.S.C. 721, 723, 725, 726, 727, 
728, 729; 49 U.S.C. 3101 Chapter 1 et. seq.; Pub.L. 97-365, as amended 
by Pub.L. 104-134; Pub.L. 89-508; E.O. 9397; and DoD 7000.14-R, 
Department of Defense Financial Management Regulation, Volume 5, Part 
Two.

Purpose(s):
    For the administrative management and collection of all delinquent 
debts, including past due loan payments, overpayments, fines, interest, 
penalties, fees, damages, leases, sales of real or personal property, 
etc., due to the DoD and debts due to other Federal departments and 
agencies of the U.S. Government that may be referred to the DoD for 
collection.
    To provide for the implementation of the salary offset (SOL is 10 
years) provisions of 5 U.S.C. 5514, the administrative offset 
provisions of 31 U.S.C. 3711 and 3716-3718 and the provisions of the 
Federal Claims Collection Standards (FCCS), which applies to personal 
debts.
    To permit collection of delinquent claims and debts owed to the 
U.S. Government under any program or service administered by any 
creditor DoD operating administration or component thereof.
    To maintain and distribute a list of contractors indebted to the 
U.S. Government, and to initiate collection against a contractor which 
is indebted to the U.S. Government, and to determine whether judicial 
proceedings should be initiated against the contractor. Guidance 
regarding contract debts is contained in the Federal Acquisition 
Regulation, and the Financial Management Regulation (DoD 7000.14-R), 
volume 10.
    To determine the validity of waivers or to make referrals to the 
Government Accounting Office (GAO).
    To maintain records of investigations conducted for the purpose of 
confirmation, cancellation, and remission of debt, waivers, and other 
determinations regarding the accuracy and validity of a debt.
    All records in this system are subject to use in authorized 
computer matching programs within DoD and with other Federal agencies 
or non-Federal agencies as regulated by the Privacy Act of 1974 (5 
U.S.C. 552a) as amended.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act, these records or information contained 
therein may specifically be disclosed outside the DoD as a routine use 
pursuant to 5 U.S.C. 552a(b)(3) as follows:
    To the U.S. General Accounting Office (GAO), the Department of 
Justice, and the United States Attorney General, or other Federal 
agencies for further collection action on any delinquent account when 
circumstances warrant.
    To commercial credit reporting agencies for the purpose of either 
adding to a credit history file on an individual or business entity for 
use in the administration of debt collection. Delinquent debt 
information may be furnished for purposes of providing an inducement 
for debtors to pay their obligations to the Federal government.
    To any Federal agency where the debtor is employed or receiving 
some type of payment for the purpose of enabling that agency to collect 
a debt owed the U.S. Government on behalf of the agency by counseling 
the debtor for voluntary repayment or by initiating administrative or 
salary offset procedures under the provisions of the Debt Collection 
Act of 1982 (Pub.L. 97-365, as amended by Pub.L. 104-134).
    To any other Federal agency including, but not limited to the 
Internal

[[Page 67537]]

Revenue service (IRS) pursuant to 31 U.S.C. 3720A, for the purpose of 
effecting an administrative offset against the debtor for a delinquent 
debt owed the U.S. Government by the debtor.
    To the Department of Veteran Affairs for administration of laws 
pertaining to veterans' benefits.
    To any other Federal agency for the purpose of administrative 
offset of a debt, including but not limited to the Office of Personnel 
Management for personnel management functions, or the IRS to obtain a 
mailing address of a taxpayer for the purpose of locating such taxpayer 
to collect or compromise a Federal claim against the taxpayer pursuant 
to 26 U.S.C. 1603(m)(2) and in accordance with 31 U.S.C. 3711, 3217, 
and 3718; to obtain locator status for delinquent accounts receivable; 
to report write-off amounts as taxable income as pertains to amounts 
compromised and accounts barred from litigation due to age; and to 
provide for offset of tax refunds.
    To any other Federal, state, or local agency for the purpose of 
conducting an authorized computer matching program to identify and 
locate delinquent debtors for recoupment of debts owed the DoD or one 
of its components.
    To commercial collection agencies for the purpose of collection 
services to recover moneys owed to the U.S. Government.
    To publish or otherwise publicly disseminate information regarding 
the identity of the debtor and the existence of the nontax debt, 
subject to review by the Secretary of the Treasury.
    The `Blanket Routine Uses' published at the beginning of the DFAS 
compilation of record system notices also apply to this system.

Disclosure to consumer reporting agencies:
    Disclosures pursuant to 5 U.S.C. 552a(b)(12) may be made from this 
system to `consumer reporting agencies' as defined in the Fair Credit 
Reporting Act (14 U.S.C. 1681a(f)) or the Federal Claims Collection Act 
of 1966 (31 U.S.C. 3701(a)(3)). The purpose of this disclosure is to 
aid in the collection of outstanding debts owed to the Federal 
government; typically to provide an incentive for debtors to repay 
delinquent Federal government debts by making these debts part of their 
credit records.
    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.

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Records are maintained on computer disks, magnetic tape, 
microfiche, and paper file folders. Computer disks, magnetic tape, 
microfiche, and paper file folders.

Retrievability:
    Retrieved by name, Taxpayer Identification Number, other 
identification number or system identifier, or name of accountable 
disbursing office in whose custody the public funds were entrusted when 
the debt arose.

Safeguards:
    Records are accessed by the custodian of the record system and by 
personnel responsible for servicing the record system in performance of 
their official duties. Records are stored in locked cabinets or rooms, 
or in guarded buildings.

Retention and disposal:
    All cases will remain active until settled by full payment, waiver 
or write-off. The system contains records requiring a retention period 
of up to 10 years after final action. Records are retired to National 
Records Centers. Destruction is accomplished by tearing, shredding, 
pulping, macerating, or burning.

System manager(s) and address:
    Defense Finance and Accounting Service - Indianapolis Center, 8899 
East 56th Street, Indianapolis, IN 46249-1460;
    Defense Finance and Accounting Service - Columbus Center, 4280 East 
5th Avenue, Building 3, Columbus, OH 43218-2317;
    Defense Finance and Accounting Service - Cleveland Center, 1240 
East 9th Street, Cleveland, OH 44199-2056;
    Defense Finance and Accounting Service - Denver Center, 6760 East 
Irvington Place, Denver, CO 80279-8000;
    Defense Finance and Accounting Service - Kansas City Center, 1500 
East Bannister Road, Kansas City, MO 64197-0001.

Notification procedure:
    Individuals seeking to determine whether information about 
themselves is contained in this system should address written inquiries 
to the Privacy Act Officer at the appropriate DFAS Center identified 
under `System manager'.
    Individual should furnish name, taxpayer identification number 
(Social Security Number), or other identifying information verifiable 
from the records.

Record access procedures:
    Individuals seeking access to information about themselves 
contained in this system of records should address written inquiries to 
the Privacy Act Officer at the appropriate DFAS Center identified under 
`System manager'.
    Individual should furnish name, taxpayer identification number 
(Social Security Number), or other information verifiable from the 
records itself.

Contesting record procedures:
    The DFAS rules for accessing records, for contesting contents and 
appealing initial agency determinations are published in DFAS 
Regulation 5400.11-R; 32 CFR part 324; or may be obtained from the 
Privacy Act Officer at any DFAS Center.

Record source categories:
    Records are obtained from the debtor, DFAS centers, other DoD 
organizations, and agencies of Federal state, and local governments, as 
applicable or appropriate for processing the case.

Exemptions claimed for the system:
    None.
[FR Doc. 96-32332 Filed 12-19-96; 8:45 am]
BILLING CODE 5000-04-F