[Federal Register Volume 62, Number 3 (Monday, January 6, 1997)]
[Notices]
[Pages 758-762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Office of the Secretary


Privacy Act of 1974: Altered System of Records

AGENCY: Office of the Assistant Secretary for Management and Budget, 
Office of the Secretary, HHS.

ACTION: Notice of an altered system of records.

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SUMMARY: In accordance with the requirements of the Privacy Act, the 
U.S. Department of Health and Human Services (HHS) is publishing a 
notice of a proposed altered system of records, 09-90-0024, ``Financial 
Transactions of HHS Accounting and Finance Offices.'' The principal 
purpose for the changes is in order to comply with the requirements of 
the Debt Collection Improvement Act of 1996 (Pub. L. 104-134, Sec. 
31001). The proposal includes new and modified routine uses described 
below for this system.

DATES: HHS submitted a report of an altered system to the Office of 
Management and Budget and to the Congress on December 24, 1996. The new 
routine uses and the amendments to existing routine uses will take 
effect without further notice 40 days after the date of publication, 
unless HHS receives comments which would result in a contrary 
determination. Other changes incorporated in the notice below will take 
effect upon publication.

ADDRESSES: Please address comments to: Deputy Assistant Secretary, 
Finance Room 739-H, Hubert H. Humphrey Building, 200 Independence Ave., 
SW, Washington, D.C. 20201. Comments received will be available for 
inspection at this same address from 9 a.m. to 3 p.m. Monday through 
Friday.

FOR FURTHER INFORMATION CONTACT: Ms. Sue Mundstuk Privacy Act 
Coordinator, Office of Financial Policy, DASF/ASMB, Room 705-D, Hubert 
H. Humphrey Building, 200 Independence Ave, SW, Washington, D.C. 20201, 
Telephone: (202) 690-6228.

SUPPLEMENTARY INFORMATION: The system notice was last published in full 
at 59 FR 7675 (1994). It was subsequently amended at 59 FR 55845 
(1994).
    On April 26, 1996, the Congress passed Pub. L. 104-134, Sec. 31001 
known as the ``Debt Collection Improvement Act of 1996'' (DCIA). The 
purposes of this Act are to: (1) maximize collections of delinquent 
debts owed to the Government, (2) minimize the costs of debt 
collection, (3) reduce losses arising from debt management activities, 
(4) ensure that the public is fully informed of the Federal 
Government's debt collection policies, (5) ensure debtors are cognizant 
of their financial obligations to repay amounts owed to the Government, 
(6) ensure that debtors have all appropriate due process rights, 
including the ability to verify, challenge, and compromise claims, and 
access to administrative appeals procedures, and (7) encourage 
agencies, when appropriate to sell delinquent debts, particularly debts 
with underlying collateral, and rely on the experience and expertise of 
private sector professionals to provide debt collection services to 
Federal agencies.
    The DCIA authorizes and requires several new techniques for 
collecting debts and claims, and we have modified existing routine uses 
and added ones to implement this statute. In particular, we have 
modified use 1 to provide for payment by methods other than checks.
    We have amended use 11(b) to allow disclosure to the Treasury 
Department for purposes of administrative offset even when Treasury 
will not be the agency that effects the offset. We have amended use 
11(e) to conform with the provision for using debt collection agents or 
contractors in the statute as amended by the DCIA. We have added uses 
18-21 to provide for new techniques authorized by the DCIA. Use 18 
allows the computer matching of debtors and federal employees. Use 19 
allows disclosures to commercial reporting agencies.
    Use 20 allows disclosure to Treasury or a Debt Collection Center to 
collect the debt. Use 21 allows disclosures in connection with selling 
the debt. Because all of these are for purposes of recovering or 
liquidating debts, they are compatible with the purposes for which HHS 
maintains this system.
    Other revisions were made (1) to eliminate areas where the Social 
Security Administration (SSA) is referenced since SSA is no longer a 
part of HHS; (2) to improve the quality of the document by making minor 
editorial changes; and (3) to combine the two Appendices into one 
Appendix, including the updating of system records locations.
    The complete system notice is republished below.

    Dated: December 23, 1996.
John J. Callahan,
Assistant Secretary for Management and Budget.

SYSTEM NAME:
    Financial Transactions of HHS Accounting and Finance Offices, HHS/
OS/ASMB.

SECURITY CLASSIFICATION:
    None.

SYSTEM LOCATION:
    See Appendix 1.
    Memoranda copies of claims submitted for reimbursement of travel 
and other expenditures while on official business may also be 
maintained at the administrative office of the HHS employee. Records 
concerning outstanding debts may also be maintained at the program 
office or by the designated claims officer apart from the finance 
office.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    All persons who receive a payment from the Operating Divisions 
(OPDIV) Headquarters, Area and District offices and all persons owing 
monies to these HHS components. Persons receiving payments include, but 
are not limited to, travelers on official business, grantees, 
contractors, consultants, and recipients of loans and scholarships. 
Persons owing monies include, but are not limited to, persons who have 
been overpaid and who owe HHS a refund and persons who have received 
from HHS goods or services for which there is a charge or fee ( e.g., 
Freedom of Information Act requesters).

CATEGORIES OF RECORDS IN THE SYSTEM:
    Name, identification number, address, purpose of payment, 
accounting

[[Page 759]]

classification and amount paid. Also, in the event of an overpayment 
and for outstanding loans, grants or scholarships, the amount of the 
indebtedness, the repayment status and the amount to be collected.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Budget and Accounting Act of 1950 (Pub. L. 81-784); Debt Collection 
Act of 1982 (Pub. L. 97-365); Debt Collection Improvement Act of 1996 
(Pub. L. 104-134, Sec. 31001).

PURPOSE(S):
    These records are an integral part of the accounting systems at 
OPDIVs Headquarters and specific Area and District locations. The 
records are used to keep track of all payments to individuals, 
exclusive of salaries and wages, based upon prior entry into the 
systems of the official commitment and obligation of government funds. 
When a person is to repay funds advanced as a loan or scholarship, 
etc., the records will be used to establish a receivable record and to 
track repayment status. In the event of an overpayment to a person, the 
record is used to establish a receivable record for recovery of the 
amount claimed. The records are also used internally to develop reports 
to the Internal Revenue Service (IRS) and applicable State and local 
taxing officials of taxable income. This is a Department-wide notice of 
payment and collection activities at all locations listed in Appendix 
1.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    1. Records will be routinely disclosed to the Treasury Department 
in order to effect payment.
    2. Records may be disclosed to members of Congress concerning a 
Federal financial assistance program in order for members to make 
informed opinions on programs and/or activities impacting on 
legislative decisions. Also, disclosure may be made to a congressional 
office from an individual's record in response to an inquiry from the 
congressional office made at the request of the individual in order to 
be responsive to the constituency.
    3. In the event HHS deems it desirable or necessary, in determining 
whether particular records are required to be disclosed under the 
Freedom of Information Act, disclosure may be made to the Department of 
Justice for the purpose of obtaining its advice.
    4. A record from this system may be disclosed as a ``routine use'' 
to a Federal, State or local agency maintaining civil, criminal or 
other relevant enforcement records or other pertinent records, such as 
current licenses, if necessary to obtain a record relevant to an agency 
decision concerning the hiring or retention of an employee, the 
issuance of a security clearance, the letting of a contract or the 
issuance of a license, grant or other benefit.
    5. A record from this system 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 record is relevant and necessary to its decision 
on the matter.
    6. Where Federal agencies having the power to subpoena other 
Federal agencies' records, such as the Internal Revenue Service (IRS) 
or the Civil Rights Commission, issue a subpoena to HHS for records in 
this system of records, HHS will make such records available, provided 
however, that in each case, HHS determines that such disclosure is 
compatible with the purpose for which the records were collected.
    7. Where a contract between a component of HHS and a labor 
organization recognized under E.O. 11491 provides that the agency will 
disclose personal records relevant to the organization's mission, 
records in the system of records may be disclosed to such organization.
    8. A record may be disclosed to the Department of Justice, to a 
court, or other tribunal, or to another party before such tribunal, 
when: (1) HHS, or any component thereof; (2) Any HHS employee in his/
her official capacity; (3) Any HHS employee in his/her individual 
capacity where the Department of Justice (or HHS, where it is 
authorized to do so) has agreed to represent the employee; or (4) the 
United States or any agency thereof where HHS determines that the 
litigation is likely to affect HHS or any of its components, is a party 
to litigation or has an interest in such litigation, and HHS determines 
that the use of such records by the Department of Justice, the 
tribunal, or the other party is relevant and necessary to the 
litigation and would help in the effective representation of the 
governmental party, provided however, that in each case, HHS determines 
that such disclosure is compatible with the purpose for which the 
records were collected.
    9. A record about a loan applicant or potential contractor or 
grantee may be disclosed from the system of records to credit reporting 
agencies to obtain a credit report in order to determine the person's 
credit worthiness.
    10. When a person applies for a loan under a loan program as to 
which the OMB has made a determination under I.R.C. 6103(a)(3), a 
record about his/her application may be disclosed to the Treasury 
Department to find out whether he/she has a delinquent tax account, for 
the sole purpose of determining the person's creditworthiness.
    11. A record from this system may be disclosed to the following 
entities in order to help collect a debt owed the United States:
    a. To another Federal agency so that agency can effect a salary 
offset;
    b. To the Treasury Department or another Federal agency in order to 
effect an administrative offset under common law or under 31 U.S.C. 
3716 (withholding from money payable to, or held on behalf of, the 
individual);
    c. To the Treasury Department to request the person's mailing 
address under I.R.C. 6103(m)(2) in order to help locate the person or 
to have a credit report prepared;
    d. To agents of HHS and to other third parties, including credit 
reporting agencies, to help locate the person or to obtain a credit 
report on him/her, in order to help collect or compromise a debt;
    e. To debt collection agents or contractors under 31 U.S.C. 3718 or 
under common law to help collect a past due amount or locate or recover 
debtors' assets;
    f. To the Justice Department for litigation or for further 
administrative action; and
    g. To the public, as provided by 31 U.S.C. 3720E, in order to 
publish or otherwise publicly disseminate information regarding the 
identity of the person and the existence of a nontax debt.
    Disclosure under part (d) and (g) of this routine use is limited to 
the individual's name, address, social security number, and other 
information necessary to identify the person. Disclosure under parts 
(a)-(c) and (e) is limited to those items; the amount, status, and 
history of the claim; and the agency or program under which the claim 
arose. An address obtained from IRS may be disclosed to a credit 
reporting agency under part (d) only for purposes of preparing a credit 
report on the individual.
    12. A record from this system may be disclosed to another Federal 
agency that

[[Page 760]]

has asked HHS to effect an administrative offset under common law or 
under 31 U.S.C. 3716 to help collect a debt owed the United States. 
Disclosure under this routine use is limited to: name and address, 
Social Security number, and other information necessary to identify the 
individual; information about the money payable to or held for the 
individual; and other information concerning the administrative offset.
    13. Disclosure with regard to claims or debts arising under or 
payable under the Social Security Act may be made from this system to 
``consumer reporting agencies'' as defined in the Fair Credit Reporting 
Act (15 U.S.C. Sec. 1681a(f)) or the Federal Claims Collection Act of 
1986 (31 U.S.C. Sec. 3701(a)(3)). The purpose of this disclosure is to 
aid in the collection of outstanding debts owed the Federal Government. 
Disclosure of records is limited to the individual's name, address, 
Social Security number, and other information necessary to establish 
the individual's identity; the amount, status and history of the claim; 
and the agency or program under which the claim arose.
    14. Information in this system of records is used to prepare W-2s 
and 1099 Forms to submit to the Internal Revenue Service and applicable 
State and local governments items considered to be included as income 
to a person: certain travel related payments to employees, all payments 
made to persons not treated as employees (e.g., fees to consultants and 
experts), and amounts written-off as legally or administratively 
uncollectible, in whole or in part.
    15. A record may be disclosed to banks enrolled in the Treasury 
Credit Card Network to collect a payment or debt when the person has 
given his/her credit card number for this purpose.
    16. Records may be disclosed to a contractor (and/or to its 
subcontractor) who has been engaged to perform services on an automated 
data processing (ADP) system used in processing financial transactions. 
The contractor may have been engaged to develop, modify and test a new 
ADP system, including both software and hardware upgrades or 
enhancements to such a system; perform periodic or major maintenance on 
an existing ADP system; audit or otherwise evaluate the performance of 
such an ADP system; and/or operate such a system.
    17. Records may be disclosed to student volunteers, individuals 
working under a personal services contract, and other individuals 
performing functions for the Department but technically not having the 
status of agency employees, if they need access to the records in order 
to perform their assigned agency functions.
    18. A record from this system may be disclosed to any Federal 
agency or its agents in order to participate in a computer matching of 
a list of debtors against a list of Federal employees. Disclosure of 
records is limited to debtors' names, names of employers, taxpayers 
identifying numbers, addresses (including addresses of employers), and 
dates of birth, and other information necessary to establish the 
person's identity.
    19. A record may be disclosed to a commercial reporting agency that 
a person is responsible for a current claim, in order to aid in the 
collection of claims, typically by providing an incentive to the person 
to repay the claim or a debt timely. Disclosure of records is limited 
to information about a person as is relevant and necessary to meet the 
principal purpose(s) for which it is intended to be used under the law.
    20. A record from this system may be disclosed to the Treasury 
Department or to an agency operating a Debt Collection Center 
designated by the Treasury in order to effect a collection of past due 
amounts.
    21. If HHS decides to sell a debt pursuant to 31 U.S.C. 
Sec. 3711(i), a record from the system may be disclosed to purchasers, 
potential purchasers, and contractors engaged to assist in the sale or 
to obtain information necessary for potential purchasers to formulate 
bids and information necessary for purchasers to pursue collection 
remedies.

Disclosure to Consumer Reporting Agencies

    Disclosure pursuant to 5 U.S.C. Sec. 552a(b)(12): Disclosure may be 
made from this system to ``consumer reporting agencies,'' as defined in 
31 U.S.C. Sec. 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 their debts 
timely, by making these debts part of their credit records.
    Disclosure of records is limited to the individual's name, address, 
social security number, and other information necessary to establish 
the individual's identity; the amount, status and history of the claim; 
and the agency or program under which the claim arose. The disclosure 
will be made only after the procedural requirements of 31 U.S.C. 
Sec. 3711(e) have been followed.

Policies and Practices for Storing, Retrieving, Accessing, Retaining, 
and Disposing of Records in the System

STORAGE:
    Hard copy documents are maintained in file folders at agency 
headquarters and area/district office sites; and on computer disc pack 
and magnetic tape at central computer sites.

RETRIEVABILITY:
    This varies according to the particular accounting system within 
the HHS Operating Divisions, Area and District Offices. Usually the 
hard copy document is filed by name within accounting classification. 
Computer records may be indexed by social security number and voucher 
number. Intra-departmental uses and transfers concern the validation 
and certification for payment, and for HHS internal audits.

SAFEGUARDS:
    1. Authorized Users: Employees and officials directly responsible 
for programmatic or fiscal activity, including administrative and staff 
personnel, financial management personnel, computer personnel, and 
managers who have responsibilities for implementing HHS funded 
programs.
    2. Physical Safeguards: File folders, reports and other forms of 
personnel data, and electronic diskettes are stored in areas where fire 
and life safety codes are strictly enforced. All documents and 
diskettes are protected during lunch hours and nonworking hours in 
locked file cabinets or locked storage areas. Magnetic tapes and 
computer matching tapes are locked in a computer room and tape vault.
    3. Procedural Safeguards: Password protection of automated records 
is provided. All authorized users protect information from public view 
and from unauthorized personnel entering an office. The safeguards 
described above were established in accordance with HHS Chapter 45-13 
of the General Administration Manual; and the HHS ADP System Manual 
Part 6, ``ADP Systems Security.''

RETENTION AND DISPOSAL:
    Records are purged from automated files once the accounting purpose 
has been served; printed copy and manual documents are retained and 
disposed of in accordance with General Accounting Office principles and 
standards as authorized by the National Archives and Records Service.

[[Page 761]]

SYSTEM MANAGER(S) AND ADDRESS:
    Department of Health and Human Services, DHHS, Assistant Secretary 
for Management and Budget, Office of the Secretary, Room 510A, Hubert 
H. Humphrey Building, Washington, DC 20201.

NOTIFICATION PROCEDURE:
    Inquiries should be made, either in writing or in person, to the 
organizations listed under ``Location'' in Appendix 1, with the 
exception of Food and Drug Administration records. For those records, 
contact:

FDA Privacy Act Coordinator (HFW-30)
Food and Drug Administration
5600 Fishers Lane
Rockville, MD 20857

    The individual making the inquiry must show proof of identity 
before information is released. Give name and social security number, 
purpose of payment or collection (travel, grant, etc.) and, if 
possible, the agency accounting classification.

Record Access Procedures:
    Same as notification procedures. Requesters should also clearly 
specify the record contents being sought, and may include a request for 
an accounting of disclosures that have been made of their records, if 
any. (These access procedures are in accordance with HHS regulations 
(45 CFR 5b.5(a)(2)).)

Contesting Record Procedures:
    Contact the official at the address specified under notification 
procedure above, and reasonably identify the record and specify the 
information being contested, the corrective action sought, and the 
reasons for requesting the correction, along with supporting 
information to show how the record is inaccurate, incomplete, untimely, 
or irrelevant.

Record Source Categories:
    Travel vouchers submitted by the individual; grant, contract and 
loan award document; delinquent loan, grant and scholarship record; 
consultant invoice of services rendered; and application for travel 
advance.

Exemptions Claimed for the System:
    None.

Appendix 1

Location

Indian Health Service Area Offices (IHS)

Aberdeen Area, IHS
Federal Building
115 Fourth Ave., SE
Aberdeen, SD 57401

Alaska Area, IHS
250 Gambell Street
Anchorage, AK 99501

Albuquerque Area, IHS
505 Marquette NW
Suite 1502
Albuquerque, NM 57102-2163

Albuquerque Headquarters West, IHS
300 San Mateo, NE
Suite 500
Albuquerque, NM 87108

Bemidji Area, IHS
203 Federal Building
Bemidji, MN 56601

Billings Area, IHS
711 Central Avenue
Billings, MT 59103

California Area, IHS
1825 Bell Street
Sacramento, CA 95825-1097

Nashville Area, IHS
3310 Perimeter Hill Drive
Nashville, TN 37211

Navajo Area, IHS
P.O. Box ``G''
Window Rock, AZ 86515-5004

Oklahoma Area IHS
3625 NW 56th Street
Five Corporation Plaza
Oklahoma City, OK 73112

Phoenix Area, IHS
3738 North 16th Street
Suite ``A''
Phoenix, AZ 85016-5981

Portland Area, IHS
1220 SW Third Avenue
Room 476
Portland, OR 97204-2892

Office of Health Program Research and Development, IHS
7900 South ``J'' Stock Road
Tucson, AZ 85746-9352

Food and Drug Administration District Offices (FDA)

Food and Drug Administration, FDA
60 Eighth Street, NE
Atlanta, GA 30309

Food and Drug Administration, FDA
Boston District Office
One Montvale Avenue
Stoneham, MA 62180

Food and Drug Administration, FDA
599 Delaware Avenue
Buffalo, NY 14202

Food and Drug Administration, FDA
Room 700
Federal Office Building
850 3rd Avenue (at 30th Street)
Brooklyn, NY 11232

Food and Drug Administration, FDA
61 Main Street
West Orange, NJ 07052

Food and Drug Administration, FDA
Room 1204
US Customhouse
2nd and Chestnut Streets
Philadelphia, PA 19106

Food and Drug Administration, FDA
900 Madison Avenue
Baltimore, MD 21201

Food and Drug Administration, FDA
San Juan District Office
PO Box 5719 PTA
De Tierra Station
San Juan, PR 00906-5719

Food and Drug Administration, FDA
Room 1222
Main Post Office Building
433 West Van Buren Street
Chicago, IL 60607

Food and Drug Administration, FDA
1560 East Jefferson Avenue
Detroit, MI 48207

Food and Drug Administration, FDA
1141 Central Parkway
Cincinnati, OH 45202

Food and Drug Administration, FDA
240 Hennepin Avenue
Minneapolis, MN 55401

Food and Drug Administration, FDA
3032 Bryan Street
Dallas, TX 75204

Food and Drug Administration, FDA
4298 Elysian Fields
New Orleans, LA 70122

Food and Drug Administration, FDA
National Center for Toxicological Research
Jefferson, AR 72079

Food and Drug Administration, FDA
1009 Cherry Street
Kansas City, MO 64106

Food and Drug Administration, FDA
US Courthouse and Courthouse Building
1114 Market Street, Room 1002
St. Louis, MO 63101

Food and Drug Administration, FDA
Building 20
Denver Federal Center
PO Box 25087
Denver, CO 80255-0087

Food and Drug Administration, FDA
Federal Office Building
Room 506
50 United National Plaza
San Francisco, CA 94102

Food and Drug Administration, FDA
1521 West Pico Boulevard
Los Angeles, CA 90015

Food and Drug Administration, FDA
22201 23rd Avenue, SE
Bothell, WA 98021-4421

Food and Drug Administration, FDA
Headquarters Office
5600 Fishers Lane
Room 11-83
Parklawn Building
Rockville, MD 20857

Centers for Disease Control and Prevention (CDC)

Centers for Disease Control and Prevention, CDC

[[Page 762]]

Accounting Section (CO-5)
Robert A. Taft Laboratories
4676 Columbia Parkway
Cincinnati, OH 45226

Centers for Disease Control and Prevention, CDC
    and

Agency for Toxic Substances and Disease Registry (ATSDR)
Financial Management Office
1600 Clifton Road NE, (M/S D-04)
Atlanta, GA 30333

Health Care Financing Administration (HCFA)

Health Care Financing Administration, HCFA
Room C3-0927
7500 Security Boulevard
Baltimore, MD 21244

National Institutes of Health (NIH)

National Institutes of Health, NIH
Building 1, Room 222
Rocky Mountain Laboratory
Hilton, MT 59840

National Institutes of Health, NIH
National Institute of Mental Health
WAW Building, Room 562
St. Elizabeth's Hospital
Washington, DC 20032

National Institutes of Health, NIH
Frederick Cancer Research Facility
Fort Detrick Building, Room 427
Frederick, MD 21702-1201

National Institutes of Health, NIH
National Institutes of
Environmental Health Sciences
Room B2-03, Building 101
Research Triangle Park, NC 27709

National Institutes for Health, NIH
National Institute on Drug Abuse
Addiction Research Center
Building C, Room 248
4940 Eastern Avenue
Baltimore, MD 21224

National Institutes for Health, NIH
Headquarters Office
Operations Accounting Branch
Building 31, Room B1-B63
9000 Rockville Pike
Bethesda, MD 20892-0134

    Individual records of the following HHS Operating Divisions may be 
obtained from the Program Support Center (PSC):

Administration for Children and Families (ACF)

Administration on Aging (AoA)

Agency for Health Care Policy and Research (AHCPR)

Indian Health Service (IHS)

Substance Abuse and Mental Health Services Administration (SAMHSA)

Office of the Secretary (OS)

Program Support Center (PSC)

Program Support Center, PSC
Division of Fiscal Services
5600 Fishers Lane
Room 16-05
Rockville, MD 20857

[FR Doc. 97-16 Filed 1-3-97; 8:45 am]
BILLING CODE 4150-04-P