[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