[Federal Register Volume 62, Number 108 (Thursday, June 5, 1997)]
[Notices]
[Pages 30898-30901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14729]
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POSTAL SERVICE
Privacy Act of 1974; System of Records
AGENCY: Postal Service.
ACTION: Notice of a new system of records and the addition of new
routine uses and modifications to two existing systems of records.
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SUMMARY: The purpose of this document is to publish notice of the
establishment of a new system of records, USPS 050.060, Finance
Records--Accounts Payable Files. It also publishes notice of a
modification to an existing system of records and the addition of new
routine uses to that and another existing system of records.
These proposals are prompted by data collection and sharing
requirements of the Debt Collection Improvement Act of 1996 (Pub. L.
104-134). Pursuant to that Act, the Department of the Treasury is
establishing a Treasury Offset Program under which it will centrally
gather and cross-match certain payment and debtor records of
participating agencies for the purpose of identifying delinquent
debtors due to receive federal payments and offsetting the payments to
satisfy the debt. As a participating agency, the Postal Service plans
to disclose limited information from its accounts payable, accounts
receivable, and payroll files.
The new system of records collects the names, addresses, and
taxpayer identification numbers of individuals and entities to whom the
Postal Service owes payment for equipment, goods, or services provided.
Information collected is used to pay these creditors, which are
primarily businesses not covered by the Privacy Act. For the reason
that some of the taxpayer identification numbers contained in the
system are being provided to Treasury for cross-matching may also be
social security numbers, a new system of records is being established.
Included in the system of records is a routine use that will permit the
Postal Service to make the disclosure to Treasury.
In addition, similar routine uses are added to existing Privacy Act
systems of records USPS 050.005, Finance Records--Accounts Receivable
Files and USPS 050.020, Finance Records--Payroll System to allow
disclosure of debtor and employee data, respectively, for purposes of
participating in the Treasury Offset Program. System modifications and
other new routine uses in system USPS 050.005 enhance the system
description and permit disclosure of current, as well as delinquent,
debt information to credit reporting agencies pursuant to the Debt
Collection Improvement Act.
DATES: Any interested party may submit written comments on the proposed
amendments and additions. This proposal will become effective without
further notice July 15, 1997, unless comments received on or before
that date result in a contrary determination.
ADDRESSES: Written comments on this proposal should be mailed or
delivered to Payroll Accounting/Records, US Postal Service, 475
L'Enfant Plaza SW RM 8831, Washington, DC 20260-5243. Copies of all
written comments will be available at the above address for public
inspection and photocopying between 8 a.m. and 4:45 p.m., Monday
through Friday.
FOR FURTHER INFORMATION CONTACT: Betty E. Sheriff, (202) 268-2608.
SUPPLEMENTARY INFORMATION: The Debt Collection Act of 1982, as amended
(Pub. L. 97-365) provides statutory authority for federal agencies to
collect debts through administrative offset, provided that each agency
publishes regulations for conducting the offset and gives debtors
certain due process rights. The Debt Collection Improvement Act of 1996
(DCIA), Pub. L. 104-134, contains various provisions intended to
maximize collection of federal debts while minimizing costs to collect
those debts. One provision requires federal agencies to transfer non-
tax debts delinquent for over 180 days to the Secretary of the Treasury
for purposes of administrative offset against payments due elsewhere in
the Government. The Act also requires an annual interagency computer
match of the delinquent debts due all agencies to determine which debts
are payable by active and retired federal employees. These requirements
are met by agency participation in the Treasury Offset Program (TOP), a
government-wide delinquent debt matching and payment offset program
operated by the United States Department of the Treasury (Treasury).
TOP provides a one-stop source for identifying delinquent debtors
receiving government funds and offsetting the delinquent debt using
those same funds. Specifically maintained by the Treasury is a
centralized database of qualified delinquent nontax debtor files
provided by participating creditor agencies. Non-salary payments made
by Treasury and other disbursing agencies, including the Postal
Service, will be matched against the database. When a match occurs, the
payment will be diverted to pay the delinquent debt, to the extent
legally allowed.
Also matched at least annually against the delinquent debtor
database are federal agency wage and retirement payment records. When a
match occurs, the salary of a matched employee will be offset to pay
the delinquent debt, to the extent legally allowed.
To the extent these statutes apply to the Postal Service or the
Postal Service has elected to participate in TOP, the Postal Service
proposes the following:
Part 1--System Modification to USPS 050.005, Finance Records--Accounts
Receivable Files and the Addition of New Routine Uses to That System
and a New Routine Use to System USPS 050.020, Finance Records--Payroll
System
(a) Postal Service system of records USPS 050.005, Finance
Records--Accounts Receivable Files. This system contains records used
to facilitate debt collection and to monitor and record collections
made by the Postal Service. To the extent records relate to
individuals, as opposed to businesses, they are covered by the Privacy
Act. As a participant in TOP, the Postal Service will disclose to
Treasury pursuant to proposed routine use No. 9 the following
information for each debtor who owes non-tax debts delinquent for a
period of 180 days: Name, taxpayer identification number (TIN) or
social security number (SSN), address, date delinquency began, initial
delinquent amount, date debt originally opened, original amount of
debt, debt type, and agency and control numbers. (Debts owed by current
employees will not be referred to TOP.) On a periodic basis, payment
agencies participating in TOP provide to Treasury their payment files
reflecting federal fund vendor, benefit, or other payments for cross-
matching with the delinquent debtor database. A
[[Page 30899]]
match on both taxpayer identification number and name is required to
intercept a payment for offset.
The DCIA gives Treasury the authority to waive the matching
agreement and verification requirements of sections (o) and (p) of the
Privacy Act for administrative offset matching upon an agency's written
certification that it has provided the debtor due process notice.
Consequently, debtor records submitted to TOP will be accompanied by a
certification that the debts are accurate and that necessary due
process notification has been made to the debtor. In addition, the
Postal Service will have provided the debtor notice of its intention to
collect the debt through administrative offset.
The DCIA also authorizes agencies to obtain credit reports for debt
collection purposes and to report both delinquent and non-delinquent
commercial and consumer nontax debt to consumer reporting agencies.
Proposed routine uses 10 and 11 permit such disclosures.
Finally, proposed modifications to the ``categories of records
covered by the system'' enhance the system notice without altering the
amount or character of the information collected.
(b) Postal Service system of records USPS 050.020, Finance
Records--Payroll System. This system contains records used to handle
all necessary payroll functions, including salary deductions. New
routine use 32 will permit disclosure of limited information to
Treasury for matching employee data against other agency debtor
records. For matched records, the Postal Service will disclose to
Treasury the date of birth, home address, and work address of the
employee.
While the DCIA allows the Secretary of the Treasury to waive the
requirements of subsections (o) and (p) of the Privacy Act for
administrative offset, those requirements are not waived for salary
offset matching. Consequently, as required by subsection (o), matching
of Postal Service employee data with other agency debtor data will be
done under a computer matching agreement concluded between the Postal
Service and Treasury. In addition, pursuant to subsection (p), any
discrepancies or inconsistencies developed as a result of the match,
such as the amount of indebtedness, will be independently investigated
and verified by Treasury prior to initiating offset with the Postal
Service.
The Postal Service currently conducts salary offset matches with
various federal agencies pursuant to the computer matching provisions
of the Privacy Act. TOP will eliminate most of those matching programs
since the matches will be centrally conducted by Treasury.
Consequently, Postal Service participation in TOP will result in fewer
disclosures of information to accomplish the same matching purpose of
identifying delinquent debtors and offsetting salaries when voluntary
repayment is not forthcoming.
Part 2--Establishment of New System of Records USPS 050.060--Finance
Records--Accounts Payable Files
The Postal Service has historically maintained accounts payable
records. However, accounts payable records clearly pertaining to
individuals have been covered by existing systems of records. Because
the remaining records are largely about businesses who provide
transportation, cleaning, contract station, construction, and other
services, they are not considered covered by the Privacy Act which
applies to records about individuals. Nevertheless, in reviewing the
planned disclosure of accounts payable records to Treasury for TOP
cross-matching, it has come to our attention that, at least in the case
of sole proprietors, the taxpayer identification number to be matched
might also be a social security number. Consequently, a new system of
records is being established to cover all accounts payable records to
the extent they pertain to individuals or could be construed to pertain
to individuals operating as a contractor or business.
Accounts payable records will be disclosed to Treasury pursuant to
routine use No. 1 for matching against delinquent debtor files
submitted by other federal agencies. Match and partial match
information will be used to provide debtor locator/address information
to creditor agencies. A match on both TIN and name is required to
intercept a payment for offset.
Routine use No. 2 authorizes disclosure upon request of the name
and address of the owner of a leased facility, or of the payee when
this is a different individual.
The system modifications and additions are not expected to have any
effect on individual privacy rights. As stated above, accounts payable
information pertains primarily to businesses. To the extent that
information within new system of records USPS 050.060 pertains to
individuals, it relates to business transactions rather than to
personal matters. Consequently, even in the event of an inadvertent
improper disclosure, we do not anticipate an adverse impact on any
individual's privacy rights. Nevertheless, appropriate safeguards are
applied to protect information. Records are kept in a secured
environment, with automated data processing physical and administrative
security and technical software applied to data on computer media.
Paper records are kept in a secured area of post offices and are made
available internally on an official need-to-know basis. Contractors who
maintain data collected by any of these systems are made subject to
subsection (m) of the Privacy Act and are required to apply appropriate
protections subject to the audit and inspection of the Postal
Inspection Service.
The TOP system has several security features to protect data and
restrict user access. Of key importance is that an agency user will be
able to access information only about his or her particular agency
record submission. For example, authorized Postal Service users will be
able to access one of its own accounts receivable files and update it
to reflect adjustments or payments. The user, however, cannot access
the payment agency's file on the same individual, even though that
individual's payment is being offset to pay a postal debt. Further,
when a payment and delinquent debtor file matches, TOP provides
notification of the match to both the creditor and payment agency.
However, the creditor agency is not informed of the source of the
offset.
Application and database security applied to the TOP database will
use security group definitions to determine access to application
functions and database tables. Password security schemes and user logon
IDs, issued by the RISC/UNIX and TOP Host administrators, are used to
prevent unauthorized access to the TOP system. Access to an agency's
records is provided on a need-to-know basis as defined by the agency. A
user accessing the TOP system must have an authorized user
identification and password. The user's ID defines the data areas in
the TOP system the user may access and the functions (read only, add
data, delete data, update data) the user will be authorized to perform.
Passwords will expire periodically after creation or a change. Audit
trails will record any record change and who changed it.
With respect to the accuracy of information, the creditor agency is
responsible for the validity and accuracy of its debts in the
delinquent debtor database. It must update its file to reflect
collections, additional fees, interest, or other changes to the debtor
information. It must also validate account information when updated by
TOP as a result of an offset. Periodically, Treasury will ask the
creditor agency to
[[Page 30900]]
verify the status of its records in the database.
The Privacy Act permits agencies to disclose information without
the consent of the records subject for ``routine uses,'' that is, for
purposes that are compatible with the purposes for which the
information is collected. The proposed routine uses meet the
compatibility requirement of the Privacy Act.
It is the policy of the Postal Service that postal employees should
honor their financial obligations. Because information within system
USPS 050.020 is collected to handle payroll functions, which include
adjustments to reflect a salary offset, proposed routine use No. 32 is
clearly compatible with the purpose of the system.
Similarly, routine uses 9, 10, and 11 proposed for USPS 050.005
each allow a disclosure that will facilitate the collection of debts
owed to the Postal Service. Since the system was established to
facilitate the collection of debts, the compatibility standard is
clearly met.
Routine use statements a through m referenced in new system of
records USPS 050.060 have been applied to most of the Postal Service's
systems of records as representing situations in which the Postal
Service would routinely need to disclose information in the conduct of
its business. Permitted by the Privacy Act are disclosures of
information about a record subject to a congressional office at the
request of the record subject. Present with regard to all Postal
Service records is the need to disclose: For law enforcement purposes;
in litigation involving the Postal Service; when obtaining from or
providing to an agency information relevant to an agency decision; to
an agency contractor fulfilling an agency function; to the Federal
Records Center for storage; in proceedings before the Equal Employment
Opportunity Commission or Merit Systems Protection Board; and to postal
unions. Routine uses a through m were last published in the Federal
Register on October 26, 1989 (54 FR 43654-43655).
Routine use No. 1 permits disclosure of payment records to identify
payees who owe delinquent federal debts. Such disclosure is consistent
with the system's purpose of offsetting any delinquent debts the
creditor owes to the federal government. Routine use No. 2 permits
disclosure of the name and address of the owner of leased property, or
of the payee when different from the owner. Such disclosure is clearly
consistent with the accounts payable function, particularly when
identifying to whom government monies are paid. Pursuant to 5 U.S.C.
552a(e)(11), interested persons are invited to submit written data,
views, or arguments on this proposal. A report of the proposed system
changes has been sent to Congress and to the Office of Management and
Budget for their evaluation.
USPS Privacy Act system 050.005 was last published in its entirety
in the Federal Register on October 26, 1989 (54 FR 43666-43667) and was
amended in the Federal Register on December 22, 1994 (59 FR 66061-
66062) and December 7, 1995 (60 FR 62901). USPS Privacy Act system
050.020 was last published in its entirety in the Federal Register on
December 4, 1992 (57 FR 57515-57519) and was amended in the Federal
Register on November 22, 1993 (58 FR 61718-61719) and on June 12, 1996
(61 FR 29774). The Postal Service proposes amending these systems as
shown below.
USPS 050.005
SYSTEM NAME:
Finance Records--Accounts Receivable Files, 050.005.
* * * * *
CATEGORIES OF RECORDS COVERED BY THE SYSTEM:
(CHANGE TO READ) Debtor's name, address, telephone number, and
social security number; invoice and other information relating to the
amount, history, and status of the claim; information relating to due
process notice; and records reflecting information obtained from or
disclosed to consumer reporting or credit reporting agencies for
purposes of recovering the debt.
* * * * *
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND THE PURPOSES OF SUCH USES:
(CHANGE TO READ) Routine use statements a, b, c, d, e, f, g, h, j,
k, l, and m listed in the prefatory statement at the beginning of the
Postal Service's published system notices apply to this system. Other
routine uses are as follows:
* * * * *
(ADD THE FOLLOWING:)
9. Disclosure of information about individuals who are over 180
days delinquent in debts owed to the Postal Service may be made to the
Department of the Treasury for cross-matching under its Treasury Offset
Program. Disclosure will be limited to information needed to establish
the identity of the individual as a payee of funds payable by another
federal agency and to offset those funds by administrative offset.
10. Disclosure of information that a person is responsible for a
claim which is current may be made to a consumer reporting agency or
commercial reporting agency.
11. Disclosure of information about individuals from whom the
Postal Service is attempting to collect or compromise a claim may be
made to consumer reporting agencies for the purpose of obtaining a
consumer report as defined in the Fair Credit Reporting Act.
USPS 050.020
SYSTEM NAME:
Finance Records--Payroll System, 050.020.
* * * * *
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND THE PURPOSES OF SUCH USES:
(CHANGE TO READ) Routine use statements a, b, c, d, e, f, g, h, j,
k, l, and m listed in the prefatory statement at the beginning of the
Postal Service's published system notices apply to this system. Other
routine uses are as follows:
* * * * *
(ADD THE FOLLOWING:)
32. Disclosure of information about current or former postal
employees may be made to the Department of the Treasury for approved
computer matching efforts under its Treasury Offset Program. Disclosure
will be limited to information needed to establish the identity of the
employee as an individual owing a delinquent debt to another federal
agency and to offset the salary of the employee to repay that debt.
USPS 050.060
SYSTEM NAME:
Finance Records--Accounts Payable Files, USPS 050.060.
SYSTEM LOCATIONS:
Post offices; accounting service centers; and Postal Service
Headquarters, Washington, DC.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
Individuals or entities to whom the Postal Service owes, or makes
payment to, for services or materials received. Payments relate to
expenses incurred for rental of properties used by the Postal Service;
job cleaning; reimbursement of carriers who use privately owned
vehicles to deliver mail; procurement of employee uniforms; air,
highway, and
[[Page 30901]]
contract transportation services; indemnity claims made for damage or
loss to certain classes of mail; employee travel; capital investments
such as facility projects; mortgages on postal-owned properties;
administrative tort claims; and various other equipment, supplies, and
services procured by the Postal Service.
CATEGORIES OF RECORDS IN THE SYSTEM:
Name, address, and taxpayer identification number (or social
security number) of creditor; amount, status, and history of the
purchase or lease including invoices and control documents; and payment
history including any adjustments.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
39 U.S.C. 401, 404, and 1206; Public Law 104-134.
PURPOSE(S):
Information within this system is used to verify charges for goods
and services received; to assure charges are properly authorized and
services and materials are delivered; to offset any delinquent debts
the creditor owes to the federal government; and to promptly pay
creditors.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND THE PURPOSES OF SUCH USES:
General routine use statements a, b, c, d, e, f, g, h, j, k, l, and
m listed in the prefatory statement at the beginning of the Postal
Service's published system notices apply to this system. Other routine
uses follow:
1. Disclosure of information about individuals on whom the Postal
Service has established accounts payable may be made to the Department
of the Treasury for cross-matching under its Treasury Offset Program.
Disclosure will be limited to information needed to establish the
identity of the individual as a delinquent debtor of another federal
agency and to offset the payment to pay the debt.
2. Disclosure of the name and address of the owner of leased
property, or of the payee when different from the owner, may be made
upon request.
POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING,
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
Paper and computer storage media.
RETRIEVABILITY:
Name of creditor and taypayer identification number (Social
Security number, if an individual).
SAFEGUARDS:
Hard copy records and computers containing information within this
system of records are located in a building with controlled access.
Access to the building and to controlled areas within the building is
restricted by the use of guards and authorized badges and/or card keys.
Computer systems are protected with an installed security software
package, the use of computer log-on IDs, and operating system controls.
Access is limited by those means to persons whose duties require such
access.
RETENTION AND DISPOSAL:
a. See the following systems descriptions for retentions of
accounts payable-related records: USPS 050.010; 050.040; 160.010;
160.020; 200.020; and 200.030.
b. Stop Payment Cases. Cut off the file at the end of each calendar
year. Destroy 8 years from the date of cutoff.
c. Notice of Remittances Received. Cut off the file each fiscal
year. Destroy 8 years from the date of cutoff.
SYSTEM MANAGER(S) AND ADDRESS:
VICE PRESIDENT, CONTROLLER, U.S. POSTAL SERVICE, 475 L'ENFANT PLAZA
SW., WASHINGTON DC 20260-5200.
NOTIFICATION PROCEDURE:
Individuals wanting to know whether information about them is
maintained in this system of records must address inquiries in writing
to the system manager. Inquiries must contain the individual's name and
taxpayer identification number (or social security number).
RECORD ACCESS PROCEDURES:
Requests for access must be made in accordance with the
Notification Procedure above and the Postal Service Privacy Act
regulations regarding access to records and verification of identity
under 39 CFR 266.6.
CONTESTING RECORD PROCEDURES:
See Notification Procedure and Record Access Procedures above.
RECORD SOURCE CATEGORIES:
Information is furnished by Postal Service creditors, employees,
supervisors, and accounting systems and by other federal agencies to
whom the creditor is delinquently indebted. Some information may be
duplicated in other Privacy Act systems of records including USPS
010.030, 050.010, 050.040, 160.010, 160.020, 200.020 and 200.030.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 97-14729 Filed 6-4-97; 8:45 am]
BILLING CODE 7710-12-P