[Federal Register Volume 77, Number 31 (Wednesday, February 15, 2012)]
[Notices]
[Pages 8947-8954]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-3459]


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DEPARTMENT OF THE TREASURY


Privacy Act of 1974, as Amended; Systems of Records

AGENCY: Financial Management Service, Treasury.

ACTION: Notice of the consolidation of two systems of records and 
alterations to a third system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Financial Management Service gives notice of its proposed consolidation 
of two of its Privacy Act systems of records entitled ``Treasury/FMS 
.002--Payment Issue Records for Regular Recurring Benefit Payments'' 
and ``Treasury/FMS .016--Payment Records for Other Than Regular 
Recurring Benefit Payments,'' and alteration of resulting Treasury/FMS 
.002. Financial Management Service also gives notice of its proposed 
alteration to the system of records entitled ``Treasury/FMS .014--Debt 
Collection Operations System.''

DATES: Comments must be received no later than March 16, 2012. The 
proposed consolidation and amendments will become effective March 21, 
2012, unless comments are received that would result in a contrary 
determination.

ADDRESSES: You should send your comments to Peter Genova, Deputy Chief 
Information Officer, Financial Management Service, 401 14th Street SW., 
Washington, DC 20227. Comments received will be available for 
inspection at the same address between the hours of 9 a.m. and 4 p.m. 
Monday through Friday. You may send your comments by electronic mail to 
<a href="/cdn-cgi/l/email-protection#9dedf8e9f8efb3faf8f3f2ebfcddfbf0eeb3e9eff8fceeb3faf2eb"><span class="__cf_email__" data-cfemail="8bfbeeffeef9a5eceee5e4fdeacbede6f8a5fff9eeeaf8a5ece4fd">[email protected]</span></a> or www.regulations.gov. All comments 
received, including attachments and other supporting materials, are 
subject to public disclosure. You should submit only information that 
you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: Peter Genova, Deputy Chief Information 
Officer, (202) 874-1736.

SUPPLEMENTARY INFORMATION: Pursuant to the provisions of the Privacy 
Act of 1974, as amended, 5 U.S.C. 552a, notice is given that the 
Financial Management Service (FMS), a bureau of the Department of the 
Treasury (Treasury), proposes to consolidate two of its systems of 
records entitled ``Treasury/FMS .002--Payment Issue Records for Regular 
Recurring Benefit Payments'' and ``Treasury/FMS .016--Payment Records 
for Other Than Regular Recurring Benefit Payments.'' The records 
maintained in Treasury/FMS .002 will be consolidated with the records 
described in the Treasury/FMS .016 and will include technical changes 
to harmonize the consolidation of the two systems, including 
alterations to two routine uses, and a proposed new routine use.
    The records in both systems are records of payments from the United 
States Government, which are collected, maintained, and used for the 
same purposes. As a result, it is unnecessary to maintain two separate 
systems of records for the same types of records. Simultaneously with 
this consolidation, FMS proposes to rename and amend the system of 
records notice as ``Treasury/

[[Page 8948]]

FMS .002--Payment Records.'' The system of records notice pertaining to 
Treasury/FMS .016--Payment Records for Other Than Regular Recurring 
Benefit Payments will be deleted from the FMS inventory of Privacy Act 
systems of records when this notice is effective.
    FMS also proposes to amend its system of records notice entitled 
``Treasury/FMS .014--Debt Collection Operations System'' by adding a 
new routine use to the notice and amending several routine uses to make 
clear that FMS discloses these records to Federal and state agencies 
responsible for administering Federally-funded programs for the purpose 
of identifying, preventing, and recouping improper payments. As the 
agency responsible for disbursing approximately 85% of the Federal 
Government's payments, FMS is responsible for ensuring that it 
disburses payments in an accurate and timely manner. Additionally, as 
the agency responsible for the centralized collection of delinquent 
debts owed to Federal and state agencies, FMS is responsible for 
maximizing agencies' ability to collect debts while minimizing costs 
associated with these efforts. By identifying, preventing, and 
recouping improper payments earlier in the processes used to grant 
loans, benefits, and other Federally-funded awards, agencies can reduce 
the amount of delinquent debt owed to Government agencies.
    In recent years, the Federal Government has intensified its efforts 
to eliminate improper payments, which can occur when funds go to the 
wrong recipient, the recipient receives the incorrect amount of funds, 
documentation is not available to support a payment, or the recipient 
uses funds in an improper manner. Among other things, in November 2009, 
Executive Order 13520 (Reducing Improper Payments) established a 
comprehensive approach to improving results in this area, including 
improved transparency through a new Web site, www.paymentaccuracy.gov, 
and the appointment of senior accountable officials at agencies with 
high incidences of payment errors. In 2010, the provisions of the 
Improper Payments Elimination and Recovery Act (IPERA), codified at 31 
U.S.C. 3321 note, imposed additional requirements on agencies to 
eliminate improper payments. Also in 2010, Federal agencies were 
directed to review the so-called ``Do Not Pay List,'' to verify the 
eligibility of a program applicant or participant pre-award, and before 
payment, for the purpose of reducing the occurrence of improper 
payments. See, Presidential Memorandum--Enhancing Payment Accuracy 
Through a ``Do Not Pay List,'' June 18, 2010 (Presidential Memorandum). 
In those cases where data ``available to agencies clearly shows that a 
potential recipient of a Federal payment is ineligible for it,'' the 
Presidential Memorandum provides that payments should not be made. The 
Presidential Memorandum specified that data to be reviewed includes 
debt collection records, to the extent allowed by law.
    Treasury is working with Federal and state agencies to reduce the 
government-wide number of errors without negatively impacting citizen 
access to needed programs. FMS's payment and debt collection records 
can help an agency identify when a potential recipient of a Federal 
payment is ineligible for it. For example, by disclosing payment 
records to agencies making eligibility determinations for benefits or 
in the process of awarding contracts, FMS can help agencies determine 
whether an applicant or potential contractor is receiving other 
payments from the Government that could impact eligibility. For 
example, an individual receiving a Federal salary payment may not be 
eligible for unemployment benefits.
    FMS's payment and debt collection records can also help an agency 
identify when an applicant for a Federally-funded loan, benefit, 
contract, grant, or other award owes a delinquent debt and is therefore 
ineligible for the loan, benefit, contract, grant, or award. By 
disclosing, in advance, to agencies that an applicant owes a debt, the 
improper payment can be avoided. Even in situations where a benefit or 
other award will not be denied because of a delinquent debt, by 
accessing information from FMS's records, the paying agency can assist 
in debt collection efforts by informing the debtor, with whom the 
agency is in current contact, about his or her debt and the obligation 
to repay the government. The paying agency can also ensure that any 
payments to a delinquent debtor are made so that an eligible payment 
will be intercepted to collect the payee's delinquent obligation.
    Disclosure of payment and debt collection records for the purpose 
of preventing, reducing, and recouping the Federal Government's 
improper payments, and thus, prevention of an increase in the 
Government's delinquent debt portfolio, is compatible with the purposes 
for which the payment and debt collection records are collected and 
maintained. There is a legitimate need for eliminating or reducing 
improper payments, which totaled $115 billion in fiscal year 2011, 
consistent with IPERA and the requirements of the Presidential 
Memorandum. FMS's purpose in maintaining its payment records is to 
ensure that payments are made accurately and timely, and its purpose in 
maintaining its debt collection records is to collect and resolve 
delinquent debt. Preventing or minimizing the occurrence of future 
delinquencies is compatible with and furthers the purposes for which 
FMS maintains its records. Thus, disclosure of these records to Federal 
and state agencies responsible for administering Federally funded 
programs without incurring improper payments is compatible with FMS's 
purposes because there is a requisite convergence between FMS's 
purposes in maintaining its records and the disclosure to prevent, 
identify, and recoup improper payments.
    The proposed amendments to Treasury/FMS.002 and Treasury/FMS.014 
are necessary to ensure the accuracy and timeliness of Federal 
payments; prevent, identify, and recoup improper payments; collect and 
resolve delinquent debt; prevent the improper award of loans, benefits, 
contracts, grants, or other awards to ineligible delinquent debtors; 
and, to avoid increasing the Government's delinquent nontax debt 
portfolio, which totaled $162.6 billion at the end of fiscal year 2011.

Treasury/FMS .002--Payment Records

    As a result of the consolidation of Treasury/FMS .002 and FMS .016, 
the system of records notice is being amended to reflect the change to 
the title of the notice to ``Payment Records--Treasury/Financial 
Management Service'' to more accurately reflect the nature of the 
records.
    The ``System location,'' is being amended to remove the words ``and 
Hyattsville, MD 20782. Records maintained at Financial Centers in five 
regions: Austin, TX; Birmingham, AL; Kansas City, MO; Philadelphia, PA; 
and San Francisco, CA'' from the list of locations. Other operational 
sites are being added to include: ``Records are also located throughout 
the United States at FMS operations centers, Federal Records Centers, 
Federal Reserve Banks acting as Treasury's fiscal agents, and financial 
institutions acting as Treasury's financial agents.''
    Under the ``Categories of individuals covered by the system'' the 
list of beneficiaries has been removed and the following is added: 
``Individuals who are the intended or actual recipients of

[[Page 8949]]

payments disbursed by the United States Government.''
    The ``Categories of records in the system'' is being changed to 
read: ``Payment records showing a payee's name; Social Security number, 
employer identification number, or other agency identification or 
account number; physical and/or electronic mailing address; telephone 
numbers; payment amount; date of issuance; trace number or other 
payment identification number, such as Treasury check number and 
symbol; financial institution information, including the routing number 
of his or her financial institution and the payee's account number at 
the financial institution; and vendor contract and/or purchase order 
number.''
    Additional authorities for Maintenance of the System are being 
added which include ``31 U.S.C. 3325, and 31 U.S.C. 3321 note.''
    The ``Purpose(s)'' element is being added to Treasury/FMS .002 to 
read: ``The purpose of this system is to maintain records about 
individuals who receive payments from the United States Government, 
through one or more of its departments and agencies. The information 
contained in the records is maintained for the purposes of: (1) 
Facilitating the accurate and timely disbursement of Federal monies to 
individuals by check or electronically, authorized under various 
programs of the Federal Government; (2) administering and processing 
claims of payment nonreceipt, payment reclamation actions, returned 
payments, and other post-disbursement operations; and, (3) identifying, 
preventing, or recouping improper payments.''
    Currently, Treasury/FMS .002 and Treasury/FMS .016 list sixteen 
routine uses in each of the notices. Following the consolidation of the 
two systems of records, routine use (5) will need to be harmonized and 
routine use (12) will need additional language to accurately describe 
the use of the records.
    Under ``Routine uses of records maintained in the system, including 
categories of users and purposes of such uses'' the current routine use 
(5) will be removed and in its place the following language will be 
added: ``(5) Disclose information to a court, magistrate, mediator, or 
administrative tribunal in the course of presenting evidence; to 
counsel, experts, or witnesses in the course of civil discovery, 
litigation, or settlement negotiations, in response to a subpoena, or 
in connection with criminal law proceedings.'' Routine use (12) will 
have the following language added at the end of the routine use: ``or 
pursuant to Federal law that authorizes the offset of Federal payments 
to collect delinquent obligations owed to the State, Commonwealth, 
Territory, or the District of Columbia.''
    To facilitate agencies' compliance with the requirements of IPERA 
and other Administration directives related to identifying, preventing, 
and recouping improper payments, the Department is adding a new routine 
use to permit disclosure of records, including through a matching 
activity, that will read as follows: ``Disclose information to (a) a 
Federal or state agency, its employees, agents (including contractors 
of its agents) or contractors; or, (b) a fiscal or financial agent 
designated by the Financial Management Service or other Department of 
the Treasury bureau or office, including employees, agents or 
contractors of such agent; or, (c) a contractor of the Financial 
Management Service, for the purpose of identifying, preventing, or 
recouping improper payments to an applicant for, or recipient of, 
Federal funds, including funds disbursed by a state in a state-
administered, Federally funded program; disclosure may be made to 
conduct computerized comparisons for this purpose.''
    Under ``Retrievability,'' the current entry is removed and is 
replaced with the following: ``Records are retrieved by name, Social 
Security number, employer identification number, agency-supplied 
identifier, date of payment, or trace number or other payment 
identifying information, such as check number.''
    Under the heading ``Safeguards,'' the language is revised to read: 
``All official access to the records is on a need-to-know basis only, 
as authorized by a business line manager at FMS or Treasury's fiscal or 
financial agent. Procedural and physical safeguards, such as personal 
accountability, audit logs, and specialized communications security, 
are utilized. Each user of computer systems containing records has 
individual passwords (as opposed to group passwords) or other unique, 
secure access authentication credentials for which he or she is 
responsible. Thus, a security manager can identify access to the 
records by user. Access to computerized records is limited, through use 
of access codes, encryption techniques, and/or other internal 
mechanisms, to those whose official duties require access. Storage 
facilities are secured by various means such as security guards, badge 
access, and locked doors with key entry.''
    Finally, FMS .002 is being amended by revising the language under 
``Records source categories'' to read as follows: ``Information in this 
system is provided by Federal departments and agencies responsible for 
certifying, disbursing, and collecting Federal payments; Treasury or 
Treasury-designated fiscal and financial agents of the United States 
that process payments and collections; and commercial database vendors. 
Each of these record sources may include information obtained from 
individuals.''

Treasury/FMS .014--Debt Collection Operations System

    The Privacy Act notice pertaining to this system of records is 
being revised under ``System location'' by removing the current entry 
and in its place adding the following language: ``Records are also 
located throughout the United States at FMS operations centers, Federal 
Records Centers, Federal Reserve Banks acting as Treasury's fiscal 
agents, and financial institutions acting as Treasury's financial 
agents. Additional addresses may be obtained from the system 
managers.''
    Additional authority for Maintenance of the System is being added 
which includes
    ``31 U.S.C. 3321 note.''
    Under the heading ``Purpose(s),'' language is being added at the 
end of the paragraph to indicate that the purpose of maintaining the 
records includes ``resolving delinquent debts owed by debtors who are 
ineligible for Federally funded programs until the delinquency is 
resolved, and for identifying, preventing, or recouping improper 
payments to individuals who owe delinquent obligations to Federal and/
or state agencies.'' This makes clearer that part of FMS's debt 
collection responsibilities includes helping Federal and state agencies 
prevent increases in delinquent debts and use all available mechanisms 
to collect existing debts.
    Currently, Treasury/FMS .014 lists nine routine uses in the notice. 
Under ``Routine uses of records maintained in the system, including 
categories of users and purposes of such uses,'' the current routine 
use (2) will be removed and in its place the following language will be 
added: ``(2) Disclose information to a court, magistrate, mediator, or 
administrative tribunal in the course of presenting evidence; to 
counsel, experts, or witnesses in the course of civil discovery, 
litigation, or settlement negotiations, in response to a subpoena, or 
in connection with criminal law proceedings.'' The current routine use 
(8) will be revised by adding to (8)a.(iii) ``or locate debtors'' 
before the semi-colon.
    To facilitate agencies' compliance with the requirements of IPERA 
and

[[Page 8950]]

other Administration directives related to identifying, preventing, and 
recouping improper payments, the Department is adding a new routine use 
to permit disclosure of records, including through a matching activity, 
that will reads as follows: ``These records may be used to disclose 
information to: (a) a Federal or state agency, its employees, agents 
(including contractors of its agents) or contractors; or, (b) a fiscal 
or financial agent designated by the Financial Management Service or 
other Department of the Treasury bureau or office, including employees, 
agents or contractors of such agent; or, (c) a contractor of the 
Financial Management Service, for the purpose of identifying, 
preventing, or recouping improper payments to an applicant for, or 
recipient of, Federal funds, including funds disbursed by a state in a 
state-administered, Federally-funded program; disclosure may be made to 
conduct computerized comparisons for this purpose.''
    Description of the change: Remove current routine use (2) and in 
its place add the following: ``(2) A court, magistrate, mediator, or 
administrative tribunal in the course of presenting evidence; counsel, 
experts, or witnesses in the course of civil discovery, litigation, or 
settlement negotiations, in response to a subpoena, or in connection 
with criminal law proceedings;'' and in current routine use (8), add to 
(8)a.(iii) ``or locate debtors'' before the semi-colon.
    FMS is also adding a new routine use to this system of records to 
reflect disclosures that may be made to identify, prevent, or recoup 
improper payments to individuals who owe delinquent debts to Federal 
and state agencies and disclosures may be made by a computerized 
comparison. The new routine use reads as follows: ``These records may 
be used to disclose information to: * * * (a) a Federal or state 
agency, its employees, agents (including contractors of its agents) or 
contractors; or, (b) a fiscal or financial agent designated by the 
Financial Management Service or other Department of the Treasury bureau 
or office, including employees, agents or contractors of such agent; 
or, (c) a contractor of the Financial Management Service, for the 
purpose of identifying, preventing, or recouping improper payments to 
an applicant for, or recipient of, Federal funds, including funds 
disbursed by a state in a state-administered, Federally funded program; 
disclosure may be made to conduct computerized comparisons for this 
purpose.''
    Under ``Record Source Categories,'' the current entry is being 
amended to read: ``Information in this system is provided by the 
individual on whom the record is maintained; Federal and State agencies 
to which the debt is owed; Federal agencies and other entities that 
employ the individual or have information concerning the individual's 
employment or financial resources; Federal and State agencies issuing 
payments; collection agencies; locator and asset search companies, 
credit bureaus, and other database vendors; Federal, State or local 
agencies furnishing identifying information and/or debtor address 
information; and/or public documents.''
    FMS recognizes the sensitive nature of the information it may be 
disclosing to other Federal and state agencies and has many safeguards 
in place to protect the information from theft or inadvertent 
disclosure. In addition to various procedural and physical safeguards, 
access to computerized records is limited through the use of access 
codes, encryption techniques and/or other internal mechanisms. Access 
to records is granted only as authorized by a business line manager at 
FMS and is limited to those whose official duties require access solely 
for the purposes outlined in the proposed system.
    The notice for FMS's systems of records was last published in its 
entirety on May 15, 2009, at 74 FR 23007 for Treasury/FMS .002 and at 
74 FR 23018 for Treasury/FMS .016. The notice for Treasury/FMS .014 was 
last published in its entirety on June 4, 2009 at 74 FR 26924.
    The altered system of records report, as required by 5 U.S.C. 
552a(r), has been submitted to the Committee on Government Reform and 
Oversight of the House of Representatives, the Committee on Homeland 
Security and Governmental Affairs of the Senate and the Office of 
Management and Budget, pursuant to Appendix I to OMB Circular A-130, 
``Federal Agency Responsibilities for Maintaining Records About 
Individuals,'' dated November 30, 2000.
    For the reasons set forth in the preamble, FMS proposes to 
consolidate its system of records entitled ``Treasury/FMS .002--Payment 
Issue Records for Regular Recurring Benefit Payments'' and ``Treasury/
FMS .016--Payment Records for Other Than Regular Recurring Benefit 
Payments.'' FMS also proposes to rename and amend its consolidated 
Treasury/FMS .002 system of records notice and amend its system of 
records notice entitled ``Treasury/FMS .014--Debt Collection Operations 
System,'' as follows:
    The consolidated and amended notices entitled ``Treasury/FMS .002--
Payment Records'' and ``Treasury/FMS .014--Debt Collection Operations'' 
are reprinted in their entirety below.

    Dated: January 26, 2012.
Melissa Hartman,
Deputy Assistant Secretary for Privacy, Transparency, and Records.
TREASURY/FMS .002

SYSTEM NAME:
    Payment Records--Treasury/Financial Management Service.

SYSTEM LOCATION:
    The Financial Management Service, U.S. Department of the Treasury, 
Washington, DC 20227. Records are also located throughout the United 
States at FMS operations centers, Federal Records Centers, Federal 
Reserve Banks acting as Treasury's fiscal agents, and financial 
institutions acting as Treasury's financial agents. Additional 
addresses may be obtained from the system managers.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals who are the intended or actual recipients of payments 
disbursed by the United States Government.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Payment records showing a payee's name; Social Security number, 
employer identification number, or other agency identification or 
account number; physical and/or electronic mailing address; telephone 
numbers; payment amount; date of issuance; trace number or other 
payment identification number, such as Treasury check number and 
symbol; financial institution information, including the routing number 
of his or her financial institution and the payee's account number at 
the financial institution; and vendor contract and/or purchase order 
number.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    5 U.S.C. 301; 31 U.S.C. 3325, and 31 U.S.C. 3321 note; Executive 
Order 6166, dated June 10, 1933.

PURPOSE:
    The purpose of this system is to maintain records about individuals 
who receive payments from the United States Government, through one or 
more of its departments and agencies. The information contained in the 
records is maintained for the purposes of: (1) Facilitating the 
accurate and timely disbursement of Federal monies to

[[Page 8951]]

individuals by check or electronically, authorized under various 
programs of the Federal Government; (2) administering and processing 
claims of payment nonreceipt, payment reclamation actions, returned 
payments, and other post-disbursement operations; and, (3) identifying, 
preventing, or recouping improper payments.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    These records may be used to:
    (1) Disclose to banking industry for payment verification;
    (2) Disclose to Federal investigative agencies, Departments and 
agencies for whom payments are made, and payees;
    (3) Disclose pertinent information to appropriate Federal, State, 
local or foreign agencies responsible for investigating or prosecuting 
the violations of, or for enforcing or implementing, a statute, rule, 
regulation, order, or license, where the disclosing agency becomes 
aware of an indication of a violation or potential violation of civil 
or criminal law or regulation;
    (4) Disclose information to a Federal, State, or local agency 
maintaining civil, criminal or other relevant enforcement information 
or other pertinent information, which has requested information 
relevant or necessary to the requesting agency's or the bureau's hiring 
or retention of an individual, or issuance of a security clearance, 
license, contract, grant, or other benefit;
    (5) Disclose information to a court, magistrate, mediator, or 
administrative tribunal in the course of presenting evidence; to 
counsel, experts, or witnesses in the course of civil discovery, 
litigation, or settlement negotiations, in response to a subpoena, or 
in connection with criminal law proceedings;
    (6) Disclose information to foreign governments in accordance with 
formal or informal international agreements;
    (7) Provide information to a congressional office in response to an 
inquiry made at the request of the individual to whom the record 
pertains;
    (8) Provide information to the news media in accordance with 
guidelines contained in 28 CFR 50.2 which relate to an agency's 
functions relating to civil and criminal proceedings;
    (9) Provide information to unions recognized as exclusive 
bargaining representatives under the Civil Service Reform Act of 1978, 
5 U.S.C. 7111 and 7114;
    (10) Provide information to third parties during the course of an 
investigation to the extent necessary to obtain information pertinent 
to the investigation;
    (11) Disclose information concerning delinquent debtors to Federal 
creditor agencies, their employees, or their agents for the purpose of 
facilitating or conducting Federal administrative offset, Federal tax 
refund offset, Federal salary offset, or for any other authorized debt 
collection purpose;
    (12) Disclose information to any State, Territory or Commonwealth 
of the United States, or the District of Columbia to assist in the 
collection of State, Commonwealth, Territory or District of Columbia 
claims pursuant to a reciprocal agreement between FMS and the State, 
Commonwealth, Territory or the District of Columbia, or pursuant to 
Federal law that authorizes the offset of Federal payments to collect 
delinquent obligations owed to the State, Commonwealth, Territory, or 
the District of Columbia;
    (13) Disclose to the Defense Manpower Data Center and the United 
States Postal Service and other Federal agencies through authorized 
computer matching programs for the purpose of identifying and locating 
individuals who are delinquent in their repayment of debts owed to the 
Department or other Federal agencies in order to collect those debts 
through salary offset and administrative offset, or by the use of other 
debt collection tools;
    (14) Disclose information to a contractor of the Financial 
Management Service for the purpose of performing routine payment 
processing services, subject to the same limitations applicable to FMS 
officers and employees under the Privacy Act;
    (15) Disclose information to a fiscal or financial agent of the 
Financial Management Service, its employees, agents, and contractors, 
or to a contractor of the Financial Management Service, for the purpose 
of ensuring the efficient administration of payment processing 
services, subject to the same or equivalent limitations applicable to 
FMS officers and employees under the Privacy Act;
    (16) Disclose information to appropriate agencies, entities, and 
persons when (a) the Department suspects or has confirmed that the 
security or confidentiality of information in the system of records has 
been compromised; (b) the Department has determined that as a result of 
the suspected or confirmed compromise there is a risk of harm to 
economic or property interests, identity theft or fraud, or harm to the 
security or integrity of this system or other systems or programs 
(whether maintained by the Department or another agency or entity) that 
rely upon the compromised information; and (c) the disclosure made to 
such agencies, entities, and persons is reasonably necessary to assist 
in connection with the Department's efforts to respond to the suspected 
or confirmed compromise and prevent, minimize, or remedy such harm; and
    (17) Disclose information to (a) a Federal or state agency, its 
employees, agents (including contractors of its agents) or contractors; 
or, (b) a fiscal or financial agent designated by the Financial 
Management Service or other Department of the Treasury bureau or 
office, including employees, agents or contractors of such agent; or, 
(c) a contractor of the Financial Management Service, for the purpose 
of identifying, preventing, or recouping improper payments to an 
applicant for, or recipient of, Federal funds, including funds 
disbursed by a state in a state-administered, Federally funded program; 
disclosure may be made to conduct computerized comparisons for this 
purpose.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Hardcopy/Electronic.

RETRIEVABILITY:
    Records are retrieved by name, social security number, employer 
identification number, agency-supplied identifier, date of payment, or 
trace number or other payment identifying information, such as check 
number.

SAFEGUARDS:
    All official access to the records is on a need-to-know basis only, 
as authorized by a business line manager at FMS, or a fiscal or 
financial agent of the United States, consistent with agent authority 
granted by Treasury or FMS. Procedural and physical safeguards, such as 
personal accountability, audit logs, and specialized communications 
security, are utilized. Each user of computer systems containing 
records has individual passwords (as opposed to group passwords) or 
other unique, secure access authentication credentials for which he or 
she is responsible. Thus, a security manager can identify access to the 
records by user. Access to computerized records is limited, through use 
of access codes, encryption techniques, and/or other internal 
mechanisms, to those whose official duties require access. Storage 
facilities are secured by various means such as security guards, badge 
access, and locked doors with key entry.

[[Page 8952]]

RETENTION AND DISPOSAL:
    FMS has submitted a records schedule to the National Archives and 
Records Administration (NARA) with a proposed retention period of seven 
years. Until NARA approves the proposed records schedule, disposal is 
not authorized.

SYSTEM MANAGER(S) AND ADDRESS:
    Chief Disbursing Officer, Financial Management Service, 401 14th 
Street SW., Washington, DC 20227.

NOTIFICATION PROCEDURE:
    Inquiries under the Privacy Act of 1974 shall be addressed to the 
Disclosure Officer, Financial Management Service, 401 14th Street SW., 
Washington, DC 20227. All individuals making inquiries should provide 
with their request as much descriptive matter as is possible to 
identify the particular record desired. The system manager will advise 
as to whether the Financial Management Service maintains the record 
requested by the individual.

RECORD ACCESS PROCEDURES:
    Individuals requesting information under the Privacy Act of 1974 
concerning procedures for gaining access or contesting records should 
write to the Disclosure Officer at the address shown above. All 
individuals are urged to examine the rules of the U.S. Department of 
the Treasury published in 31 CFR, part 1, subpart C concerning 
requirements of this Department with respect to the Privacy Act of 
1974.

CONTESTING RECORD PROCEDURES:
    See ``Record access procedures'' above.

RECORD SOURCE CATEGORIES:
    Information in this system is provided by Federal departments and 
agencies responsible for certifying, disbursing, and collecting Federal 
payments; Treasury or FMS-designated fiscal and financial agents of the 
United States that process payments and collections; and commercial 
database vendors. Each of these record sources may include information 
obtained from individuals.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.
* * * * *
TREASURY/FMS.014

SYSTEM NAME:
    Debt Collection Operations System--Treasury/Financial Management 
Service.

SYSTEM LOCATION:
    Records are also located throughout the United States at FMS 
operations centers, Federal Records Centers, Federal Reserve Banks 
acting as Treasury's fiscal agents, and financial institutions acting 
as Treasury's financial agents. Additional addresses may be obtained 
from the system managers.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals who owe debts to: (a) The United States, through one or 
more of its departments and agencies; and/or (b) States, territories 
and commonwealths of the United States, and the District of Columbia 
(hereinafter collectively referred to as ``States'').

CATEGORIES OF RECORDS IN THE SYSTEM:
    Debt records containing information about the debtor(s), the type 
of debt, the governmental entity to which the debt is owed, and the 
debt collection tools utilized to collect the debt. The records may 
contain identifying information, such as name(s) and taxpayer 
identifying number (i.e., Social Security number or employer 
identification number); debtor contact information, such as work and 
home address, and work and home telephone numbers; information 
concerning the financial status of the debtor and his/her household, 
including income, assets, liabilities or other financial burdens, and 
any other resources from which the debt may be recovered; and name of 
employer and employer address. Debts include unpaid taxes, loans, 
assessments, fines, fees, penalties, overpayments, advances, extensions 
of credit from sales of goods or services, and other amounts of money 
or property owed to, or collected by, the Federal Government or a 
State, including past due support which is being enforced by a State. 
The records also may contain information about: (a) The debt, such as 
the original amount of the debt, the debt account number, the date the 
debt originated, the amount of the delinquency or default, the date of 
delinquency or default, basis for the debt, amounts accrued for 
interest, penalties, and administrative costs, and payments on the 
account; (b) Actions taken to collect or resolve the debt, such as 
copies of demand letters or invoices, documents or information required 
for the referral of accounts to collection agencies or for litigation, 
and collectors' notes regarding telephone or other communications 
related to the collection or resolution of the debt; and (c) The 
referring or governmental agency that is collecting or owed the debt, 
such as name, telephone number, and address of the agency contact.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Federal Claims Collection Act of 1966 (Pub. L. 89-508), as amended 
by the Debt Collection Act of 1982 (Pub. L. 97-365, as amended); 
Deficit Reduction Act of 1984 (Pub. L. 98-369, as amended); Debt 
Collection Improvement Act of 1996 (Pub. L. 104-134, sec. 31001); 
Taxpayer Relief Act of 1997 (Pub. L. 105-34); Internal Revenue Service 
Restructuring and Reform Act of 1998 (Pub. L. 105-206); 26 U.S.C. 6402; 
26 U.S.C. 6331; 31 U.S.C. Chapter 37 (Claims), Subchapter I (General) 
and Subchapter II (Claims of the U.S. Government); 31 U.S.C. 3321 note.

PURPOSE(S):
    The purpose of this system is to maintain records about individuals 
who owe debt(s) to the United States, through one or more of its 
departments and agencies, and/or to States, including past due support 
enforced by States. The information contained in the records is 
maintained for the purpose of taking action to facilitate the 
collection and resolution of the debt(s) using various collection 
methods, including, but not limited to, requesting repayment of the 
debt by telephone or in writing, offset, levy, administrative wage 
garnishment, referral to collection agencies or for litigation, and 
other collection or resolution methods authorized or required by law. 
The information also is maintained for the purpose of providing 
collection information about the debt to the agency collecting the 
debt, to provide statistical information on debt collection operations, 
and for the purpose of testing and developing enhancements to the 
computer systems which contain the records. The information also is 
maintained for the purpose of resolving delinquent debts owed by 
debtors who are ineligible for Federally funded programs until the 
delinquency is resolved, and for identifying, preventing, or recouping 
improper payments to individuals who owe delinquent obligations to 
Federal and/or state agencies.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    These records may be used to disclose information to:
    (1) Appropriate Federal, State, local or foreign agencies 
responsible for investigating or implementing, a statute, rule, 
regulation, order, or license;
    (2) A court, magistrate, mediator, or administrative tribunal in 
the course of

[[Page 8953]]

presenting evidence; counsel, experts, or witnesses in the course of 
civil discovery, litigation, or settlement negotiations, in response to 
a subpoena, or in connection with criminal law proceedings;
    (3) A congressional office in response to an inquiry made at the 
request of the individual to whom the record pertains;
    (4) Any Federal agency, State or local agency, U.S. territory or 
commonwealth, or the District of Columbia, or their agents or 
contractors, including private collection agencies (consumer and 
commercial):
    a. To facilitate the collection of debts through the use of any 
combination of various debt collection methods required or authorized 
by law, including, but not limited to;
    (i) Request for repayment by telephone or in writing;
    (ii) Negotiation of voluntary repayment or compromise agreements;
    (iii) Offset of Federal payments, which may include the disclosure 
of information contained in the records for the purpose of providing 
the debtor with appropriate pre-offset notice and to otherwise comply 
with offset prerequisites, to facilitate voluntary repayment in lieu of 
offset, and to otherwise effectuate the offset process;
    (iv) Referral of debts to private collection agencies, to Treasury-
designated debt collection centers, or for litigation;
    (v) Administrative and court-ordered wage garnishment;
    (vi) Debt sales;
    (vii) Publication of names and identities of delinquent debtors in 
the media or other appropriate places; and
    (viii) Any other debt collection method authorized by law;
    b. To conduct computerized comparisons to locate Federal payments 
to be made to debtors;
    c. To conduct computerized comparisons to locate employers of, or 
obtain taxpayer identifying numbers or other information about, an 
individual for debt collection purposes;
    d. To collect a debt owed to the United States through the offset 
of payments made by States, territories, commonwealths, or the District 
of Columbia;
    e. To account or report on the status of debts for which such 
entity has a financial or other legitimate need for the information in 
the performance of official duties;
    f. For the purpose of denying Federal financial assistance in the 
form of a loan or loan guaranty to an individual who owes delinquent 
debt to the United States or who owes delinquent child support that has 
been referred to FMS for collection by administrative offset;
    g. To develop, enhance and/or test database, matching, 
communications, or other computerized systems which facilitate debt 
collection processes; or
    h. For any other appropriate debt collection purpose.
    (5) The Department of Defense, the U.S. Postal Service, or other 
Federal agency for the purpose of conducting an authorized computer 
matching program in compliance with the Privacy Act of 1974, as 
amended, to identify and locate individuals receiving Federal payments 
including, but not limited to, salaries, wages, and benefits, which may 
include the disclosure of information contained in the records for the 
purpose of requesting voluntary repayment or implementing Federal 
employee salary offset or other offset procedures;
    (6) The Department of Justice or other Federal agency:
    a. when requested in connection with a legal proceeding, or
    b. to obtain concurrence in a decision to compromise, suspend, or 
terminate collection action on a debt;
    (7) Any individual or other entity who receives Federal payments as 
a joint payee with a debtor for the purpose of providing notice of, and 
information about, offsets from such Federal payments; and
    (8) Any individual or entity:
    a. To facilitate the collection of debts through the use of any 
combination of various debt collection methods required or authorized 
by law, including, but not limited to:
    (i) Administrative and court-ordered wage garnishment;
    (ii) Report information to commercial credit bureaus;
    (iii) Conduct asset searches or locate debtors;
    (iv) Publish names and identities of delinquent debtors in the 
media or other appropriate places; or
    (v) Debt sales;
    b. For the purpose of denying Federal financial assistance in the 
form of a loan or loan guaranty to an individual who owes delinquent 
debt to the United States or who owes delinquent child support that has 
been referred to FMS for collection by administrative offset; or
    c. For any other appropriate debt collection purpose. Disclosure to 
consumer reporting agencies including for the provision of routine debt 
collection services by an FMS contractor subject to the same 
limitations applicable to FMS officers and employees under the Privacy 
Act; and
    (9) Appropriate agencies, entities, and persons when (A) the 
Department suspects or has confirmed that the security or 
confidentiality of information in the system of records has been 
compromised; (B) the Department has determined that as a result of the 
suspected or confirmed compromise there is a risk of harm to economic 
or property interests, identity theft or fraud, or harm to the security 
or integrity of this system or other systems or programs (whether 
maintained by the Department or another agency or entity) that rely 
upon the compromised information; and (C) the disclosure made to such 
agencies, entities, and persons is reasonably necessary to assist in 
connection with the Department's efforts to respond to the suspected or 
confirmed compromise and prevent, minimize, or remedy such harm.
    (10) (a) a Federal or state agency, its employees, agents 
(including contractors of its agents) or contractors; or, (b) a fiscal 
or financial agent designated by the Financial Management Service or 
other Department of the Treasury bureau or office, including employees, 
agents or contractors of such agent; or, (c) a contractor of the 
Financial Management Service, for the purpose of identifying, 
preventing, or recouping improper payments to an applicant for, or 
recipient of, Federal funds, including funds disbursed by a state in a 
state-administered, Federally funded program; disclosure may be made to 
conduct computerized comparisons for this purpose.

DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    Debt information concerning a government claim against a debtor is 
also furnished, in accordance with 5 U.S.C. 552a(b)(12) and 31 U.S.C. 
3711(e), to consumer reporting agencies, as defined by the Fair Credit 
Reporting Act, 5 U.S.C. 1681(f), to encourage repayment of a delinquent 
debt.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Hardcopy/Electronic.

RETRIEVABILITY:
    Records are retrieved by various combinations of name, taxpayer 
identifying number (i.e., social security number or employer 
identification number), or debt account number.

SAFEGUARDS:
    All officials access the system of records on a need-to-know basis 
only, as authorized by the system manager. Procedural and physical 
safeguards are utilized, such as accountability, receipt records, and 
specialized

[[Page 8954]]

communications security. Access to computerized records is limited, 
through use of access codes, entry logs, and other internal mechanisms, 
to those whose official duties require access. Hard-copy records are 
held in steel cabinets, with access limited by visual controls and/or 
lock systems. During normal working hours, files are attended by 
responsible officials; files are locked up during non-working hours. 
The building is patrolled by uniformed security guards.

RETENTION AND DISPOSAL:
    Retention periods vary by record type, up to a maximum of seven 
years after the end of the fiscal year in which a debt is resolved or 
returned to the agency as uncollectible.

SYSTEM MANAGER(S) AND ADDRESS:
    System Manager, Debt Management Services, Financial Management 
Service, 401 14th Street SW., Washington, DC 20227.

NOTIFICATION PROCEDURE:
    Inquiries under the Privacy Act of 1974, as amended, shall be 
addressed to the Disclosure Officer, Financial Management Service, 401 
14th Street SW., Washington, DC 20227. All individuals making inquiries 
should provide with their request as much descriptive matter as is 
possible to identify the particular record desired. The system manager 
will advise as to whether FMS maintains the records requested by the 
individual.

RECORD ACCESS PROCEDURES:
    Individuals requesting information under the Privacy Act of 1974, 
as amended, concerning procedures for gaining access or contesting 
records should write to the Disclosure Officer. All individuals are 
urged to examine the rules of the U.S. Department of the Treasury 
published in 31 CFR part 1, subpart C, and appendix G, concerning 
requirements of this Department with respect to the Privacy Act of 
1974, as amended.

CONTESTING RECORD PROCEDURES:
    See ``Record access procedures'' above.

RECORD SOURCE CATEGORIES:
    Information in this system is provided by the individual on whom 
the record is maintained; Federal and State agencies to which the debt 
is owed; Federal agencies and other entities that employ the individual 
or have information concerning the individual's employment or financial 
resources; Federal and State agencies issuing payments; collection 
agencies; locator and asset search companies, credit bureaus, and other 
database vendors; Federal, State or local agencies furnishing 
identifying information and/or debtor address information; and/or 
public documents.

EXEMPTIONS CLAIMED FOR THE SYSTEM:
    None.

[FR Doc. 2012-3459 Filed 2-14-12; 8:45 am]
BILLING CODE 4810-35-P


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