7114 Federal Register / Vol. 79, No. 25 / Thursday, February 6, 2014 / Proposed Rules 

contributions + $5,000 investment income ¥ 

($72,000 in benefit payments + $7,000 in 

administrative expenses)). 

(c) The applicable account limit under 

section 512(a)(3)(E)(i) (that is, the account 

limit under section 419A(c), excluding the 

reserve for post retirement medical benefits) 

is the IBU claims reserve ($7,200). 

(d) The total amount of assets of the VEBA 

as of the close of the year ($21,000) exceeds 

the applicable account limit ($7,200) by 

$13,800. 

(e) The unrelated business taxable income 

is $5,000 (that is, the lesser of investment 

income ($5,000) and the excess of the amount 

of assets of the VEBA as of the close of the 

taxable year over the applicable account limit 

($13,800)). 

Example 4 (a) The facts are the same as in 

Example 3 except that the 2012 year-end 

balance was $15,000. 

(b) The total amount of assets in the VEBA 

at the end of 2013 is $11,000 (that is, $15,000 

beginning of year balance + $70,000 

contributions + $5,000 investment income ¥ 

($72,000 in benefit payments + $7,000 in 

administrative expenses)). 

(c) The applicable account limit under 

section 512(a)(3)(E)(i) remains $7,200. 

(d) The total amount of assets of the VEBA 

as of the close of the year ($11,000) exceeds 

the applicable account limit ($7,200) by 

$3,800. 

(e) The unrelated business taxable income 

is $3,800 (that is, the lesser of investment 

income ($5,000) and the excess of the total 

amount of assets of the VEBA at the close of 

the taxable year over the applicable account 

limit ($3,800)). 

Q–4. What is the effective date of the 

amendments to section 512(a)(3) and 

what transition rules apply to ‘‘existing 

reserves for post-retirement medical or 

life insurance benefits’’? 

A–4. (a) The amendments to section 

512(a)(3), made by the Tax Reform Act 

of 1984, apply to income earned by a 

Covered Entity after December 31, 1985, 

in the taxable years of such an 

organization ending after such date. 

(b) Section 512(a)(3)(E)(ii)(I) provides 

that income that is attributable to 

‘‘existing reserves for post-retirement 

medical or life insurance benefits’’ will 

not be treated as unrelated business 

taxable income. This includes income 

that is either directly or indirectly 

attributable to existing reserves. An 

‘‘existing reserve for post-retirement 

medical or life insurance benefits’’ (as 

defined in section 512(a)(3)(E)(ii)(II)) is 

the total amount of assets actually set 

aside by a Covered Entity on July 18, 

1984 (calculated in the manner set forth 

in Q&A–3 of this section, and adjusted 

under paragraph (c) of Q&A–11 of 

§ 1.419–1T), reduced by employer 

contributions to the fund on or before 

such date to the extent such 

contributions are not deductible for the 

taxable year of the employer containing 

July 18, 1984, and for any prior taxable 

year of the employer, for purposes of 

providing such post-retirement benefits. 

For purposes of the preceding sentence 

only, an amount that was not actually 

set aside on July 18, 1984, will be 

treated as having been actually set aside 

on such date if— 

(1) such amount was incurred by the 

employer (without regard to section 

461(h)) as of the close of the last taxable 

year of the Covered Entity ending before 

July 18, 1984, and 

(2) such amount was actually 

contributed to the Covered Entity within 

81⁄2 months following the close of such 

taxable year. 

(c) In addition, section 

512(a)(3)(E)(ii)(I) applies to existing 

reserves for such post-retirement 

benefits only to the extent that such 

‘‘existing reserves’’ do not exceed the 

amount that could be accumulated 

under the principles set forth in 

Revenue Rulings 69–382, 1969–2 CB 28; 

69–478, 1969–2 CB 29; and 73–599, 

1973–2 CB 40. Thus, amounts 

attributable to any such excess ‘‘existing 

reserves’’ are not within this transition 

rule even though they were actually set 

aside on July 18, 1984. See 

§ 601.601(d)(2)(ii)(b). 

(d) All post-retirement medical or life 

insurance benefits (or other benefits to 

the extent paid with amounts set aside 

to provide post-retirement medical or 

life insurance benefits) provided after 

July 18, 1984 (whether or not the 

employer has maintained a reserve or 

fund for such benefits) are to be 

charged, first, against the ‘‘existing 

reserves’’ within this transition rule 

(including amounts attributable to 

‘‘existing reserves’’ within this 

transition rule) for post-retirement 

medical benefits or for post-retirement 

life insurance benefits (as the case may 

be) and, second, against all other 

amounts. For this purpose, the qualified 

direct cost of an asset with a useful life 

extending substantially beyond the end 

of the taxable year (as determined under 

Q&A–6 of § 1.419–1T) will be treated as 

a benefit provided and thus charged 

against the ‘‘existing reserve’’ based on 

the extent to which such asset is used 

in the provision of post-retirement 

medical benefits or post-retirement life 

insurance benefits (as the case may be). 

All plans of an employer providing 

post-retirement medical benefits are to 

be treated as one plan for purposes of 

section 512(a)(3)(E)(ii)(III), and all plans 

of an employer providing postretirement life insurance benefits are to 

be treated as one plan for purposes of 

section 512(a)(3)(E)(ii)(III). 

(e) In calculating the unrelated 

business taxable income of a Covered 

Entity for a taxable year of such 

organization, the total income of the 

Covered Entity for the taxable year is 

reduced by the income attributable to 

‘‘existing reserves’’ within the transition 

rule before such income is compared to 

the excess of the total amount of the 

assets of the Covered Entity as of the 

close of the taxable year over the 

applicable account limit for the taxable 

year. 

(f) The following example illustrates 

the calculation of a VEBA’s UBTI: 

Example. Assume that the total income of 

a VEBA for a taxable year is $1,000, and that 

the excess of the total amount of the assets 

of the VEBA as of the close of the taxable 

year over the applicable account limit is 

$600. Assume also that of the $1,000 of total 

income, $540 is attributable to ‘‘existing 

reserves’’ within the transition rule of section 

512(a)(3)(E)(ii)(I). The unrelated business 

taxable income of this VEBA for the taxable 

year is equal to the lesser of the following 

two amounts: (1) The total income of the 

VEBA for the taxable year, reduced by the 

extent to which such income is attributable 

to ‘‘existing reserves’’ within the meaning of 

the transition rule ($1,000 ¥ $540 = $460); 

or (2) the excess of the total amount of the 

assets of the VEBA as of the close of the 

taxable year over the applicable account limit 

($600). Thus, the unrelated business income 

of this VEBA for the taxable year is $460. 

Q–5. What is the effective/

applicability date of this section? 

A–5. Except as otherwise provided in 

this paragraph, this section is applicable 

to taxable years ending on or after the 

date of publication of the final 

regulation. For rules that apply to earlier 

periods, see 26 CFR 1.512(a)–5T 

(revised as of April 1, 2013). 

John M. Dalrymple, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2014–01625 Filed 2–5–14; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 317 

[DOD–2008–OS–0068] 

RIN 0790–AI31 

Defense Contract Audit Agency 

(DCAA) Privacy Act Program 

AGENCY: Department of Defense. 

ACTION: Proposed rule. 

SUMMARY: The Department of Defense 

(DoD) is proposing to amend the 

Defense Contract Audit Agency (DCAA) 

Privacy Act Program Regulation. 

Specifically, an exemption section is 

being added to include an exemption for 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 79, No. 25 / Thursday, February 6, 2014 / Proposed Rules 7115 

RDCAA 900.1, DCAA Internal Review 

Case Files. This rulemaking provides 

policies and procedures for the DCAA’s 

implementation of the Privacy Act of 

1974, as amended. 

DATES: Comments must be received by 

April 7, 2014. 

ADDRESSES: You may submit comments, 

identified by docket number and/or RIN 

number and title, by any of the 

following methods: 

• Federal Rulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Federal Docket Management 

System Office, 4800 Mark Center Drive, 

East Tower, Suite 02G09, Alexandria, 

VA 22350–3100. 

Instructions: All submissions received 

must include the agency name and 

docket number or Regulatory 

Information Number (RIN) for this 

Federal Register document. The general 

policy for comments and other 

submissions from members of the public 

is to make these submissions available 

for public viewing on the Internet at 

http://www.regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Keith Mastromichalis, FOIA/PA 

Management Analyst, DCAA HQ, 703– 

767–1022. 

SUPPLEMENTARY INFORMATION: 

The revisions to this rule are part of 

DoD’s retrospective plan under EO 

13563 completed in August 2011. DoD’s 

full plan can be accessed at http://

exchange.regulations.gov/exchange/

sites/default/files/doc_files/

Department%20of%20Defense%20

Final%20Plan.pdf. 

Executive Summary 

I. Purpose of This Regulatory Action 

a. This rule provides policies and 

procedures for DCAA’s implementation 

of the Privacy Act of 1974, as amended. 

b. Authority: Privacy Act of 1974, 

Public Law 93–579, Stat. 1896 (5 U.S.C. 

552a). 

II. Summary of the Major Provisions of 

This Regulatory Action 

DCAA is adding an exemption section 

to include an exemption for RDCAA 

900.1, DCAA Internal Review Case 

Files. 

III. Costs and Benefits of This 

Regulatory Action 

This regulatory action imposes no 

monetary costs to the Agency or public. 

The benefit to the public is the accurate 

reflection of the Agency’s Privacy 

Program to ensure that policies and 

procedures are known to the public. 

Regulatory Procedures 

Executive Order 12866, ‘‘Regulatory 

Planning and Review’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review’’ 

It has been determined that Privacy 

Act rules for the Department of Defense 

are not significant rules. This rule does 

not (1) Have an annual effect on the 

economy of $100 million or more or 

adversely affect in a material way the 

economy; a sector of the economy; 

productivity; competition; jobs; the 

environment; public health or safety; or 

State, local, or tribal governments or 

communities; (2) Create a serious 

inconsistency or otherwise interfere 

with an action taken or planned by 

another Agency; (3) Materially alter the 

budgetary impact of entitlements, 

grants, user fees, or loan programs, or 

the rights and obligations of recipients 

thereof; or (4) Raise novel legal or policy 

issues arising out of legal mandates, the 

President’s priorities, or the principles 

set forth in these Executive Orders. 

Public Law 96–354, ‘‘Regulatory 

Flexibility Act’’ (5 U.S.C. Chapter 6) 

It has been determined that this 

Privacy Act rule for the Department of 

Defense does not have significant 

economic impact on a substantial 

number of small entities because it is 

concerned only with the administration 

of Privacy Act within the Department of 

Defense. 

Public Law 95–511, ‘‘Paperwork 

Reduction Act’’ (44 U.S.C. Chapter 35) 

It has been determined that this 

Privacy Act rule for the Department of 

Defense imposes no information 

collection requirements on the public 

under the Paperwork Reduction Act of 

1995. 

Section 202, Public Law 104–4, 

‘‘Unfunded Mandates Reform Act’’ 

It has been determined that this 

Privacy Act rulemaking for the 

Department of Defense does not involve 

a Federal mandate that may result in the 

expenditure by State, local and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

and that such rulemaking will not 

significantly or uniquely affect small 

governments. 

Executive Order 13132, ‘‘Federalism’’ 

It has been determined that the 

Privacy Act rule for the Department of 

Defense does not have federalism 

implications. The rule does not have 

substantial direct effects on the States, 

on the relationship between the 

National Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. 

List of Subjects in 32 CFR Part 317 

Privacy. 

Accordingly the Department proposes 

to revise 32 CFR Part 317 to read as 

follows: 

PART 317—DCAA PRIVACY ACT 

PROGRAM 

Sec. 

317.1 Purpose 

317.2 Applicability and scope. 

317.3 Policy. 

317.4 Responsibilities. 

317.5 Procedures. 

317.6 Procedures for exemptions 

Authority: Pub. L. 93–579, 88 Stat. 1896 (5 

U.S.C. 552a). 

§ 317.1 Purpose. 

This part provides policies and 

procedures for the Defense Contract 

Audit Agency’s (DCAA) implementation 

of the Privacy Act of 1974 (5 U.S.C. 

552a) and 32 CFR part 310, and is 

intended to promote uniformity within 

DCAA. 

§ 317.2 Applicability and scope. 

(a) This part applies to all DCAA 

organizational elements and takes 

precedence over all regional regulatory 

issuances that supplement the DCAA 

Privacy Program. 

(b) This part shall be made applicable 

by contract or other legally binding 

action to contractors whenever a DCAA 

contract provides for the operation of a 

system of records or portion of a system 

of records to accomplish an Agency 

function. 

§ 317.3 Policy. 

(a) It is DCAA policy that personnel 

will comply with the DCAA Privacy 

Program; the Privacy Act of 1974; and 

the DoD Privacy Program (32 CFR part 

310). Strict adherence is necessary to 

ensure uniformity in the 

implementation of the DCAA Privacy 

Program and create conditions that will 

foster public trust. It is also Agency 

policy to safeguard personal information 

contained in any system of records 

maintained by DCAA organizational 

elements and to make that information 

available to the individual to whom it 

pertains to the maximum extent 

practicable. 

(b) DCAA policy specifically requires 

that DCAA organizational elements: 

(1) Collect, maintain, use, and 

disseminate personal information only 

when it is relevant and necessary to 


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7116 Federal Register / Vol. 79, No. 25 / Thursday, February 6, 2014 / Proposed Rules 

achieve a purpose required by statute or 

Executive Order. 

(2) Collect personal information 

directly from the individuals to whom 

it pertains to the greatest extent 

practical. 

(3) Inform individuals who are asked 

to supply personal information for 

inclusion in any system of records: 

(i) The authority for the solicitation. 

(ii) Whether furnishing the 

information is mandatory or voluntary. 

(iii) The intended uses of the 

information. 

(iv) The routine disclosures of the 

information that may be made outside of 

DoD. 

(v) The effect on the individual of not 

providing all or any part of the 

requested information. 

(4) Ensure that records used in 

making determinations about 

individuals and those containing 

personal information are accurate, 

relevant, timely, and complete for the 

purposes for which they are being 

maintained before making them 

available to any recipients outside of 

DoD, other than a Federal agency, 

unless the disclosure is made under 

DCAA Regulation 5410.8, DCAA 

Freedom of Information Act Program. 

(5) Keep no record that describes how 

individuals exercise their rights 

guaranteed by the First Amendment to 

the U.S. Constitution, unless expressly 

authorized by statute or by the 

individual to whom the records pertain 

or is pertinent to and within the scope 

of an authorized law enforcement 

activity. 

(6) Notify individuals whenever 

records pertaining to them are made 

available under compulsory legal 

processes, if such process is a matter of 

public record. 

(7) Establish safeguards to ensure the 

security of personal information and to 

protect this information from threats or 

hazards that might result in substantial 

harm, embarrassment, inconvenience, or 

unfairness to the individual. 

(8) Establish rules of conduct for 

DCAA personnel involved in the design, 

development, operation, or maintenance 

of any system of records and train them 

in these rules of conduct. 

(9) Assist individuals in determining 

what records pertaining to them are 

being collected, maintained, used, or 

disseminated. 

(10) Permit individual access to the 

information pertaining to them 

maintained in any system of records, 

and to correct or amend that 

information, unless an exemption for 

the system has been properly 

established for an important public 

purpose. 

(11) Provide, on request, an 

accounting of all disclosures of the 

information pertaining to them except 

when disclosures are made: 

(i) To DoD personnel in the course of 

their official duties. 

(ii) Under DCAA Regulation 5410.8, 

DCAA Freedom of Information Act 

Program. 

(iii) To another agency or to an 

instrumentality of any governmental 

jurisdiction within or under control of 

the United States conducting law 

enforcement activities authorized by 

law. 

(12) Advise individuals on their rights 

to appeal any refusal to grant access to 

or amend any record pertaining to them, 

and file a statement of disagreement 

with the record in the event amendment 

is refused. 

§ 317.4 Responsibilities. 

(a) The Assistant Director, Resources 

has overall responsibility for the DCAA 

Privacy Act Program and will serve as 

the sole appellate authority for appeals 

to decisions of respective initial denial 

authorities. 

(b) The Chief, Administrative 

Management Division under the 

direction of the Assistant Director, 

Resources, shall: 

(1) Establish, issue, and update 

policies for the DCAA Privacy Act 

Program; monitor compliance with this 

part; and provide policy guidance for 

the DCAA Privacy Act Program. 

(2) Resolve conflicts that may arise 

regarding implementation of DCAA 

Privacy Act policy. 

(3) Designate an Agency Privacy Act 

Advisor, as a single point of contact, to 

coordinate on matters concerning 

Privacy Act policy. 

(4) Make the initial determination to 

deny an individual’s written Privacy 

Act request for access to or amendment 

of documents filed in Privacy Act 

systems of records. This authority 

cannot be delegated. 

(c) The DCAA Privacy Act Advisor 

under the supervision of the Chief, 

Administrative Management Division 

shall: 

(1) Manage the DCAA Privacy Act 

Program in accordance with this part 

and applicable DCAA policies, as well 

as DoD and Federal regulations. 

(2) Provide guidelines for managing, 

administering, and implementing the 

DCAA Privacy Act Program. 

(3) Implement and administer the 

Privacy Act program at the 

Headquarters. 

(4) Ensure that the collection, 

maintenance, use, or dissemination of 

records of identifiable personal 

information is in a manner that assures 

that such action is for a necessary and 

lawful purpose; that the information is 

timely and accurate for its intended use; 

and that adequate safeguards are 

provided to prevent misuse of such 

information. 

(5) Prepare promptly any required 

new, amended, or altered system notices 

for systems of records subject to the 

Privacy Act and submit them to the 

Defense Privacy Office for subsequent 

publication in the Federal Register. 

(6) Conduct training on the Privacy 

Act program for Agency personnel. 

(d) Heads of Principal Staff Elements 

are responsible for: 

(1) Reviewing all regulations or other 

policy and guidance issuances for 

which they are the proponent to ensure 

consistency with the provisions of this 

part. 

(2) Ensuring that the provisions of this 

part are followed in processing requests 

for records. 

(3) Forwarding to the DCAA Privacy 

Act Advisor, any Privacy Act requests 

received directly from a member of the 

public, so that the request may be 

administratively controlled and 

processed. 

(4) Ensuring the prompt review of all 

Privacy Act requests, and when 

required, coordinating those requests 

with other organizational elements. 

(5) Providing recommendations to the 

DCAA Privacy Act Advisor regarding 

the releasability of DCAA records to 

members of the public, along with the 

responsive documents. 

(6) Providing the appropriate 

documents, along with a written 

justification for any denial, in whole or 

in part, of a request for records to the 

DCAA Privacy Act Advisor. Those 

portions to be excised should be 

bracketed in red pencil, and the specific 

exemption or exemptions cites which 

provide the basis for denying the 

requested records. 

(e) The General Counsel is responsible 

for: 

(1) Ensuring uniformity is maintained 

in the legal position, and the 

interpretation of the Privacy Act; 32 

CFR part 310; and this part. 

(2) Consulting with DoD General 

Counsel on final denials that are 

inconsistent with decisions of other 

DoD components, involve issues not 

previously resolved, or raise new or 

significant legal issues of potential 

significance to other Government 

agencies. 

(3) Providing advice and assistance to 

the Assistant Director, Resources; 

Regional Directors; and the Regional 

Privacy Act Officer, through the DCAA 

Privacy Act Advisor, as required, in the 

discharge of their responsibilities. 


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(4) Coordinating Privacy Act litigation 

with the Department of Justice. 

(5) Coordinating on Headquarters 

denials of initial requests. 

(f) Each Regional Director is 

responsible for the overall management 

of the Privacy Act program within their 

respective regions. Under his/her 

direction, the Regional Resources 

Manager is responsible for the 

management and staff supervision of the 

program and for designating a Regional 

Privacy Act Officer. Regional Directors 

will, as designee of the Director, make 

the initial determination to deny an 

individual’s written Privacy Act request 

for access to or amendment of 

documents filed in Privacy Act systems 

of records. This authority cannot be 

delegated. 

(g) Regional Privacy Act Officers will: 

(1) Implement and administer the 

Privacy Act program throughout the 

region. 

(2) Ensure that the collection, 

maintenance, use, or dissemination of 

records of identifiable personal 

information is in compliance with this 

part to assure that such action is for a 

necessary and lawful purpose; that the 

information is timely and accurate for 

its intended use; and that adequate 

safeguards are provided to prevent 

misuse of such information. 

(3) Prepare input for the annual 

Privacy Act Report when requested by 

the DCAA Information and Privacy 

Advisor. 

(4) Conduct training on the Privacy 

Act program for regional and FAO 

personnel. 

(5) Provide recommendations to the 

Regional Director through the Regional 

Resources Manager regarding the 

releasability of DCAA records to 

members of the public. 

(h) Managers, Field Audit Offices 

(FAOs) will: 

(1) Ensure that the provisions of this 

part are followed in processing requests 

for records. 

(2) Forward to the Regional Privacy 

Act Officer, any Privacy Act requests 

received directly from a member of the 

public, so that the request may be 

administratively controlled and 

processed. 

(3) Ensure the prompt review of all 

Privacy Act requests, and when 

required, coordinating those requests 

with other organizational elements. 

(4) Provide recommendation to the 

Regional Privacy Act Officer regarding 

the releasability of DCAA records to 

members of the public, along with the 

responsive documents. 

(5) Provide the appropriate 

documents, along with a written 

justification for any denial, in whole or 

in part, of a request for records to the 

Regional Privacy Act Officer. Those 

portions to be excised should be 

bracketed in red pencil, and the specific 

exemption or exemptions cited which 

provide the basis for denying the 

requested records. 

(i) DCAA Employees will: 

(1) Not disclose any personal 

information contained in any system of 

records, except as authorized by this 

part. 

(2) Not maintain any official files 

which are retrieved by name or other 

personal identifier without first 

ensuring that a notice for the system has 

been published in the Federal Register. 

(3) Report any disclosures of personal 

information from a system of records or 

the maintenance of any system of 

records that are not authorized by this 

part to the appropriate Privacy Act 

officials for their action. 

§ 317.5 Procedures. 

Procedures for processing material in 

accordance with the Privacy Act of 1974 

are outlined in DoD 5400.11–R, DoD 

Privacy Program (32 CFR part 310). 

§ 317.6 Procedures for exemptions. 

(a) General information. There are two 

types of exemptions, general and 

specific. The general exemption 

authorizes the exemption of a system of 

records from all but a few requirements 

of the Privacy Act. The specific 

exemption authorizes exemption of a 

system of records or portion thereof, 

from only a few specific requirements. 

If a new system of records originates for 

which an exemption is proposed, or an 

additional or new exemption for an 

existing system of records is proposed, 

the exemption shall be submitted with 

the system of records notice. No 

exemption of a system of records shall 

be considered automatic for all records 

in the system. The systems manager 

shall review each requested record and 

apply the exemptions only when this 

will serve significant and legitimate 

Government purposes. 

(b) Specific Exemptions. (1) System 

identifier and name: RDCAA 900.1, 

DCAA Internal Review Case Files 

(i) Exemption: Any portions of this 

system of records which fall under the 

provisions of 5 U.S.C. 552a(k)(2) and 

(k)(5) may be exempt from the following 

subsections of 5 U.S.C. 552a: (c)(3), (d), 

(e)(1), (e)(4)(G), (H), and (f). 

(ii) Authority: 5 U.S.C. 552a(k)(2) and 

(k)(5). 

(iii) Reason: (A) From subsection 

(c)(3) because disclosures from this 

system could interfere with the just, 

thorough and timely resolution of the 

complaint or inquiry, and possibly 

enable individuals to conceal their 

wrongdoing or mislead the course of the 

investigation by concealing, destroying 

or fabricating evidence or documents. 

(B) From subsection (d) because 

disclosures from this system could 

interfere with the just, thorough and 

timely resolution of the complaint or 

inquiry, and possibly enable individuals 

to conceal their wrongdoing or mislead 

the course of the investigation by 

concealing, destroying or fabricating 

evidence or documents. Disclosures 

could also subject sources and witnesses 

to harassment or intimidation which 

jeopardize the safety and well-being of 

themselves and their families. 

(C) From subsection (e)(1) because the 

nature of the investigation functions 

creates unique problems in prescribing 

specific parameters in a particular case 

as to what information is relevant or 

necessary. Due to close liaison and 

working relationships with other 

Federal, state, local, foreign country law 

enforcement agencies, and other 

governmental agencies, information may 

be received which may relate to a case 

under the investigative jurisdiction of 

another government agency. It is 

necessary to maintain this information 

in order to provide leads for appropriate 

law enforcement purposes and to 

establish patterns of activity which may 

relate to the jurisdiction of other 

cooperating agencies. 

(D) From subsection (e)(4)(G) through 

(H) because this system of records is 

exempt from the access provisions of 

subsection (d). 

(E) From subsection (f) because the 

agency’s rules are inapplicable to those 

portions of the system that are exempt 

and would place the burden on the 

agency of either confirming or denying 

the existence of a record pertaining to a 

requesting individual might in itself 

provide an answer to that individual 

relating to an on-going investigation. 

The conduct of a successful 

investigation leading to the indictment 

of a criminal offender precludes the 

applicability of established agency rules 

relating to verification of record, 

disclosure of the record to that 

individual, and record amendment 

procedures for this record system. 

Dated: January 21, 2014. 

Patricia L. Toppings, 

OSD Federal Register Liaison Officer, 

Department of Defense. 

[FR Doc. 2014–01882 Filed 2–5–14; 8:45 am] 

BILLING CODE 5001–06–P 


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