18–10–03 

SYSTEM NAME: 

Non-Federal Auditor Referral, Suspension, and 

Debarment File. 

SECURITY CLASSIFICATION: 

None. 

SYSTEM LOCATION: 

Audit Services, Office of Inspector General, U.S. 

Department of Education, 330 C Street, SW., Room 4200, 

Switzer Building, Washington, DC 20202–1510. 

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM: 

Auditors and audit firms not employed by the Federal 

government whom the Office of Inspector General has 

referred to State boards of accountancy or professional 

associations and/or suspended or debarred for violations of 

generally accepted auditing standards or generally accepted 

government auditing standards in connection with audits of 

federally assisted education programs. 

CATEGORIES OF RECORDS IN THE SYSTEM: 

Information relating to the audit activity which led 

to the referral, suspension or debarment action, including 

the referral, suspension or debarment documents, and 

records on the substance, status or outcome of each 
referral, suspension and debarment, including voluntary 

exclusion settlement agreements. 

AUTHORITY FOR MAINTENANCE OF THE SYSTEM: 

The Inspector General Act of 1978, as amended (5 

U.S.C. Appendix 3, 4(a)(1) and 4(b)(1)(C)) and 34 CFR part 

85, the Nonprocurement Debarment and Suspension 

Regulations. 

PURPOSE(S): 

This system of records is maintained for the general 

purpose of enabling the OIG to fulfill the requirements of 

section (4)(b)(1)(C) of the Inspector General Act of 1978, 

5 U.S.C. Appendix 3, 4(b)(1)(C) which requires Federal 

Inspectors General, including the Department Inspector 

General, to take appropriate steps to assure that any work 

performed by non-Federal auditors complies with the 

standards established by the Comptroller General. Records 

are used to document OIG actions with regard to open and 

closed referrals, suspensions or debarments by the OIG; to 

produce statistical data; and to share information with 

Federal, State and professional organizations which are 

also responsible for maintaining or monitoring adherence to 

audit standards. 

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING 

CATEGORIES OF USERS AND THE PURPOSES OF SUCH USES: 
The Department of Education (the Department) may 

disclose information contained in a record in this system 

of records under the routine uses listed in this system of 

records without the consent of the individual if the 

disclosure is compatible with the purposes for which the 

record was collected. These disclosures may be made on a 

case-by-case basis or, if the Department has complied with 

the computer matching requirements of the Privacy Act, 

under a computer matching agreement. 

(1) Audit oversight and referral disclosure. A record 

from this system of records may be disclosed to other 

Federal agencies, the General Accounting Office, State 

agencies responsible for audit oversight, State Boards of 

accountancy, the American Institute of Certified Public 

Accountants, and other professional accountancy 

associations, to make and support referrals regarding 

inadequate audits performed by independent auditors, to 

track the results of proceedings against those auditors, 

and to inform these entities if other referrals have been 

made.

(2) Suspension and debarment disclosure. A record from 

this system of records may be disclosed to other Federal 

agencies, the General Accounting Office, State agencies 

responsible for audit oversight, State Boards of 
accountancy, the American Institute of Certified Public 

Accountants, and other professional accountancy 

associations, to inform these entities of the substance, 

status or outcome of suspension and debarment proceedings, 

including settlement, and as authorized under section 3 of 

Executive Order 12549 for purposes of suspending and 

debarring an auditor pursuant to 34 CFR part 85. 

(3) Disclosure to auditee. A record from this system 

of records may be disclosed to the auditee which was the 

subject of audit oversight by the Department OIG. 

(4) Engagement disclosure. A record from this system 

of records may be disclosed to a contractor or grantee of 

the Department or other participant in Department programs 

which may be contemplating engaging the firm or individual 

named in the record to perform auditing or related services 

pertaining to federally assisted education programs, unless 

the entities to which the Assistant Inspector General for 

Audit Services has made a referral under routine use number 

1, decline to take action against the auditor or act to 

exonerate the auditor. 

(5) Disclosure to Public and Private Entities To 

Obtain Information. A record from this system of records 

may be disclosed to public or private sources to the extent 

necessary to obtain information from those sources relevant 
to an OIG audit oversight activity, referral action, 

suspension and debarment action, investigation, audit, 

inspection, or other activity. 

(6) Enforcement disclosure. In the event that any 

records from this system of records, either alone or in 

combination with any other information, indicate a 

violation or potential violation of criminal or civil law 

or regulation, the Department may disclose information from 

this system of records as a routine use to any Federal, 

State, local, or foreign agency or other public authority 

responsible for enforcing, investigating, or prosecuting 

violations of administrative, civil, or criminal law or 

regulation if that information is relevant to any 

enforcement, regulatory, investigative, or prosecutive 

responsibility of the receiving entity.

(7) Disclosure to the Department of Justice. A record 

may be disclosed from this system of records to the 

Department of Justice to the extent necessary for obtaining 

its advice on any matter relevant to an OIG investigation, 

audit, inspection, or other inquiry related to the 

responsibilities of the OIG. 

(8) Hiring/contracting disclosure. 

(a) The Department. A record from this system of 

records 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 to perform audit services, the 

issuance of a security clearance, or the letting or 

continuation of a contract to perform audit services by the 

Department or by any recipient of Federal funds 

administered by the Department or its agent. 

(b) Other Federal agencies. A record from this system 

of records may be disclosed to a Federal agency, in 

connection with the hiring or retention of an employee to 

perform audit services, the issuance of a security 

clearance, the letting or continuation of a contract to 

perform audit services by the agency or by any recipient of 

Federal funds, or the issuance of a license, grant, or 

other benefit by the recipient agency.

(9) Litigation disclosure. 

(a) Disclosure to the Department of Justice. A record 

from this system of records may be disclosed to the 

Department of Justice if the record is relevant and 

necessary to litigation. Such a disclosure may be made in 

the event that one of the parties listed below is involved 

in the litigation, or has an interest in the litigation: 
(i) The Department or any component of the Department; 

(ii) Any employee of the Department in his or her 

official capacity; 

(iii) Any Department employee in his or her individual 

capacity where the Justice Department has agreed to 

represent such employee; or 

(iv) The United States where the Department determines 

that the litigation is likely to affect the Department or 

any of its components. 

(b) Other litigation disclosure. A record from this 

system of records may be disclosed to a court or 

adjudicative body, to a party, counsel or witnesses, in the 

course of the litigation or related settlement proceedings. 

Such disclosure may be made in the event that a person or 

entity listed below is a party to the litigation, or has an 

interest in the litigation: 

(i) The Department or any component of the Department; 

(ii) Any employee of the agency in his or her official 

capacity; 

(iii) Any employee of the Department in his or her 

individual capacity where the agency has agreed to 

represent the employee; or 
(iv) The United States, where the agency determines 

that litigation is likely to affect the agency or any of 

its components. 

(9) Congressional member disclosure. The Department 

may disclose records to a member of Congress from the 

record of an individual in response to an inquiry from the 

member made at the written request of that individual. The 

member’s right to the information is no greater than the 

right of the individual who requested it. 

(10) Employee grievance, complaint or conduct 

disclosure. The Department may disclose a record in this 

system of records to another agency of the Federal 

government if the record is relevant to one of the 

following proceedings regarding a present or former 

employee of the Department: Complaint, grievance, 

discipline or competence determination proceedings. The 

disclosure may only be made during the course of the 

proceeding. 

(11) Contract disclosure. If the Department contracts 

with an entity for the purposes of performing any function 

that requires disclosure of records in this system to 

employees of the contractor, the Department may disclose 

the records to those employees. Before entering into such a 

contract, the Department shall require the contractor to 
maintain Privacy Act safeguards as required under 5 U.S.C. 

552a(m) with respect to the records in the system. 

DISCLOSURE TO CONSUMER REPORTING AGENCIES: 

Not applicable to this system of records. 

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, 

RETAINING, AND DISPOSING OF RECORDS IN THE SYSTEM: 

STORAGE: 

Records are maintained in file folders and/or 

microcomputer disk. 

RETRIEVABILITY: 

Records are indexed and retrieved by name of 

individuals, firms or other professional associations. 

SAFEGUARDS: 

Records are secured in file cabinets and are locked in 

offices after office hours. 

RETENTION AND DISPOSAL: 

Records are maintained and destroyed in accordance 

with the Department’s Records Disposition Schedule (ED/RDS, 

Part 16). A copy of the ED/RDS can be obtained from the 

system manager at the address below. 

SYSTEM MANAGER(S) AND ADDRESSES: 

Assistant Inspector General for Audit Services, Office 

of Inspector General, U.S. Department of Education, 400 
Maryland Avenue, SW., Switzer Building, Washington, DC 

20202–1510. 

NOTIFICATION PROCEDURE: 

Individuals wishing to know if they are named in this 

system of records must submit a written request to the 

system manager. Requests must reasonably specify the system 

of records containing the information and the particular 

record contents being sought. For a complete statement of 

notification procedures, see the regulations, 34 CFR 5b.5. 

RECORD ACCESS PROCEDURES: 

Individuals wishing to gain access to a record in this 

system of records must submit a written request to the 

system manager. Requests must reasonably specify the system 

of records containing the information, the particular 

record contents being sought, and the reason for the 

request. For a complete statement of notification 

procedures, see the regulations, 34 CFR 5b.5. 

CONTESTING RECORD PROCEDURES: 

Individuals desiring to contest information contained 

in a record in this system of records should contact the 

system manager. Requests must be made either in writing or 

in person, and must specify: (1) The system of records from 

which the record is to be retrieved; (2) the particular 

record which the requestor is seeking to amend; (3) whether 
a deletion, an addition, or a substitution is being sought; 

and (4) the reason(s) for the requested change(s). 

Requestors may wish to include in their requests any 

appropriate documentation supporting the requested 

change(s). For a complete statement of contesting record 

procedures, see the regulations, 34 CFR 5b.7. 

RECORD SOURCE CATEGORIES: 

Information contained in the system will be obtained 

principally from OIG employees. Information regarding the 

status of referral actions will be obtained from the 

appropriate State licensing board and professional 

organizations to which the referral was made. 

SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT: 

None.