[Federal Register Volume 62, Number 67 (Tuesday, April 8, 1997)]
[Notices]
[Pages 16793-16795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8962]


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DEPARTMENT OF DEFENSE

Defense Finance and Accounting Service


Privacy Act of 1974; System of Record

AGENCY: Defense Finance and Accounting Service, DOD.
ACTION: Notice to alter a record system.

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SUMMARY: The Defense Finance and Accounting Service proposes to alter a 
system of records notice in its inventory of record systems subject to 
the Privacy Act of 1974 (5 U.S.C. 552a), as amended.
DATES: The alteration will be effective on May 8, 1997, unless comments 
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 March 28, 1997, to 
the House Committee on Government Reform and Oversight, the Senate 
Committee on Governmental Affairs, 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: April 3, 1997.

L. M. Bynum,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
T7332

System name:
    Defense Debt Management System (December 23, 1996, 61 FR 67534).

Changes:
* * * * *

Categories of individuals covered by the system:
    Delete entry and replace with `Contractors and individuals who are 
indebted to a Department of Defense (DoD) agency that have transferred 
debts to the Defense Debt Management System serviced by the Defense 
Finance and Accounting Service. EXCLUSION: This system does not include 
individuals or contractors who are indebted to a DoD agency and who 
have been identified as currently receiving pay from DoD.'
* * * * *
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;
    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 95th Street, 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 and individuals who are indebted to a Department of 
Defense (DoD) agency that have transferred debts to the Defense Debt 
Management System serviced by the Defense Finance and Accounting 
Service. EXCLUSION: This system does not include individuals or 
contractors who are indebted to a DoD agency and who have been 
identified as currently receiving pay from DoD.

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

[[Page 16794]]

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 (SSN); 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 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.

[[Page 16795]]

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:
    Chief, Debt Management Systems Division, Directorate of Debt and 
Claims Management, Defense Finance and Accounting Service - 
Indianapolis Center, 8899 East 56th Street, Indianapolis, IN 46249-
1460;
    Chief, Debt Management Systems Division, Directorate of Debt and 
Claims Management, Defense Finance and Accounting Service - Columbus 
Center, 4280 East 5th Avenue, Building 3, Columbus, OH 43218-2317;
    Chief, Debt Management Systems Division, Directorate of Debt and 
Claims Management, Defense Finance and Accounting Service - Cleveland 
Center, 1240 East 9th Street, Cleveland, OH 44199-2056;
    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;
    Chief, Debt Management Systems Division, Directorate of Debt and 
Claims Management, Defense Finance and Accounting Service - Kansas City 
Center, 1500 East 95th Street, 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. 97-8962 Filed 4-7-97; 8:45 am]
BILLING CODE 5000-04-F