[Federal Register Volume 79, Number 212 (Monday, November 3, 2014)]
[Notices]
[Pages 65234-65237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26095]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5763-N-11]


Implementation of the Privacy Act of 1974, as Amended; Amendment 
to Existing System of Records--Pay and Leave Records of Employees

AGENCY: Office of the Chief Information Officer.

ACTION: Amendment to System of Records.

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SUMMARY: The Department's Office of the Chief Human Capital Officer 
(OCHCO) is proposing to amend its ``Pay and Leave Records of 
Employees'' system of records. The system of records consists of 
payroll and time and attendance systems for fulfillment of payroll, 
timekeeping and leave functions. The OCHCO modifies: The authority for 
and manner in which the Pay and Leave Records of Employees system of 
records operates; the categories of records in the system, the location 
and address of the system, the method by which records are retrieved in 
the system; the retention and disposal methods made of the records in 
the system; and adds the purpose(s) for which the records are used in 
the system. Additionally, as part of this update, OCHCO makes one 
substantive change to the system of records to authorize the 
forthcoming transition of HUD's time and attendance system from the 
Department of Agriculture's National Finance Center (NFC) to the 
Treasury Department's Bureau of the Fiscal Service (BFS). The routine 
uses are being updated to include new disclosures of personally 
identifiable information (PII) to Treasury's BFS and to new contract 
service providers to bring the system in compliance with the Privacy 
Act. The Treasury's BFS is a shared service provider that will gain 
access to payroll data and begin testing time and attendance data for 
migration of records, and ultimately, hosting of the time and 
attendance system, while the payroll function remains at NFC. The 
payroll and leave functions include processing all pay matters/issues 
(e.g., overtime, holiday pay, compensatory time, compensatory time for 
travel), distribution of wages, distribution of allotments and 
deductions to financial and other institutions, some through electronic 
funds transfer, timekeeper support, to maintain leave balances and 
provide leave processing services such as restored leave, payroll/
personnel action (e.g. promotions and Reduction in Grade personnel 
actions), receipt amount, and administrative overpayment processing). 
This amended notice demonstrates the Department's present status of the 
information contained in the systems and new data sharing practices. 
Other non-substantive changes to the routine use section and throughout 
the document are being added to ensure compliance with the Privacy Act, 
5 U.S.C. 552a. A more detailed description of the present system is 
contained in notice ``Purpose'' caption. This notice supersedes the 
previous notice published in the Federal Register for ``HUD-34: Pay and 
Leave Records of Employees''.

DATES: Effective Date: The proposed modification will be effective 
immediately, with the exception of the migration of records to the new 
Treasury system and the sharing of information to new contractors, 
which will become effective 30 days after publication of this notice, 
on December 3, 2014, unless comments are received that would result in 
a contrary determination.
    Comments Due Date: December 3, 2014.

ADDRESSES: Interested persons are invited to submit comments regarding 
this notice to the Rules Docket Clerk, Office of the General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 10276, Washington, DC 20410-0500. Communication should refer to 
the above docket number and title. A copy of each communication 
submitted will be available for public inspection and copying between 
8:00 a.m. and 5:00 p.m. weekdays at the above address.

FOR FURTHER INFORMATION CONTACT: Donna Robinson-Staton, Chief Privacy 
Officer, 451 Seventh Street, SW., Washington, DC 20410 (Attention: 
Capitol View Building, 4th Floor), telephone number: (202) 402-8073. 
[This is not a toll free number.] A telecommunications device for 
hearing-and speech-impaired persons (TTY) is available by calling the 
Federal Relay Service's toll-free telephone number at (800) 877-8339.

SUPPLEMENTARY INFORMATION: This system of records is maintained by 
HUD's Office of the Chief Human Capital Officer. The system of records 
includes personally identifiable information on HUD employees' that is 
retrieved from the system by a name or unique identifier. Hence, this 
system of records encompasses programs and services of the Department's 
data collection and management practices. Publication of this notice 
allows HUD to satisfy its reporting requirement and keep an up-to-date 
accounting of its system of records publications. The amended system of 
records will incorporate Federal privacy requirements and HUD policy 
requirements. The Privacy Act provides certain safeguards for an 
individual against an invasion of personal privacy by requiring Federal 
agencies to protect records contained in an agency system of records 
from unauthorized disclosure, by ensuring that information is current 
and collected only for its intended use, and by providing adequate 
safeguards to prevent misuse of such information. Additionally, this 
notice demonstrates the Department's focus on industry best practices 
in protecting the personal privacy of the individuals covered by this 
system notification.
    This notice states the name and location of the record system, the 
authority for and manner of its operations, the categories of 
individuals that it covers, the type of records that it contains, the 
sources of the information for the records, the routine uses made of 
the records and the type of exemptions in place for the records. In 
addition, this notice includes the business addresses of the HUD 
officials who will inform

[[Page 65235]]

interested persons of the procedures whereby they may gain access to 
and/or request amendments to records pertaining to them.
    This publication does meet the threshold requirements for a new and 
amended system and a report was submitted to the Office of Management 
and Budget (OMB), the Senate Committee on Homeland Security and 
Governmental Affairs, and the House Committee on Government Reform as 
instructed by Paragraph 4c of Appendix l to OMB Circular No. A-130, 
``Federal Agencies Responsibilities for Maintaining Records About 
Individuals,'' July 25, 1994 (59 FR 37914).

    Authority:  5 U.S.C. 552a; 88 Stat. 1896; 42 U.S.C. 3535(d).

    Dated: October 28, 2014.
Mike Milazzo,
Deputy Chief Information Officer.
SYSTEM OF RECORDS NO.: OCHCO/AHFA.01

SYSTEM NAME:
    Pay and Leave Records of Employees.

SYSTEM LOCATION:
    Department of Housing and Urban Development, 451 Seventh Street, 
SW., Washington DC 20410. Department of Agriculture National Finance 
Center PO Box 60000, New Orleans, LA 70160, and at the service 
providers under contract with HUD and at the Federal agencies using the 
contracts. The time and attendance system is accessible by all HUD 
employees via HUD Intranet nationwide at HUD Field and Regional offices 
\1\. Backup, recovery and media records are stored in secure facilities 
at the Washington National Record Center, 4205 Suitland Road, Suitland, 
MD 20746.
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    \1\ http://portal.hud.gov/hudportal/HUD?src=/localoffices.
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CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Current and former HUD employees.

CATEGORIES OF RECORDS IN THE SYSTEM:
    All categories of records in the system may include the name, work 
and home address, and social security number of the HUD employee. The 
purpose and use made of each category of records in the system are:
    To administer payroll processing--records include: HUD employee 
number, grade, step, and salary; organization, retirement or FICA data 
as applicable; Federal, state, and local tax deductions; regular and 
optional Government life insurance deduction(s), health insurance 
deduction and plan or code; Thrift Savings Plan participation and 
contribution; cash award data; jury duty data; military leave data; pay 
differentials; union dues deduction; allotments by type and amount; 
financial institution code and employee account number; personnel/
payroll data requests, retirement; jury duty data; military leave data; 
leave status and data of all types (including annual, compensatory, 
jury duty, maternity, military, retirement disability, sick, 
transferred, and without pay);
    To administer time and attendance processing--records include: 
Employee number, organization, time and attendance records; leave 
applications and reports; individual daily time reports; adjustments to 
time and attendance; overtime reports, supporting data, such as medical 
certificates; number of regular, overtime, holiday, Sunday, and other 
hours worked; pay period number and ending dates; both internal/
external pay/leave inquiries and request pertaining to time and 
attendance; information and/or supporting documentation about the 
inquiries and problems received.
    To administer garnishment and levy orders--records include: Orders 
served upon HUD for implementation, court orders, correspondence, and 
memoranda issued by a court of competent jurisdiction or by another 
government entity authorized to issue such an order for a HUD employee 
subject to official processing by HUD. Copies of judicial hardcopy 
correspondence are kept in locked cabinets.

    Note:  This system of record does not cover the Office of 
Personnel Management (OPM) OPM/GOVT-1 related records: The Official 
Personnel Folders and other general personnel records files, reports 
of personnel actions, and the documents and papers required in 
connection with actions affected during an employee's Federal 
service are covered by OPM-1.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The collection of payroll and leave data is required by general 
recordkeeping statutes, regulations, and executive orders:
    5 U.S.C. 6101-6133; 5 U.S.C. 6301-6387; 44 U.S.C. 3101; 5 U.S.C. 
5501-5597; 5 CFR part 630; Executive Order 9373, which permits the 
collection of SSNs, as amended by Executive Order 13478. The collection 
of garnishment and levy orders is required by: 5 U.S.C. 5520a; 10 
U.S.C. 1408; and 42 U.S.C. 659.

PURPOSE(S):
    The system includes payroll processing services and any other 
payroll/personal records and various records reflecting HUD employees' 
time and attendance and leave status, as well as the allocation of 
employee time to designated budget account codes. The system of records 
is also used to prepare related reports to other Federal agencies 
including the Department of Treasury and the Office of Personnel 
Management.
    HUD's OCHCO operates the Pay and Leave Records of Employees system 
of records to:
    1. Authorize payroll deductions, including but not limited to 
allotments, charitable contributions, and union dues;
    2. Authorize the U.S. Department of the Agriculture's (USDA) 
National Finance Center (NFC) to calculate pay, maintain leave 
balances, and issue salary checks;
    3. Report gross wages and compensation information, including but 
not limited to unemployment compensation;
    4. Collect indebtedness, including but not limited to overpayment 
of salary and unpaid Internal Revenue Service (IRS) taxes and/or state 
taxes;
    5. Pay income tax obligations, including but not limited to the 
Internal Revenue Service (IRS) and states' revenue departments;
    6. Pay any uncollected compensation, including but not limited to 
lump-sum payments of leave upon an employee's separation, such as 
retirement and resignation, or due to the beneficiaries of a deceased 
employee;
    7. Determine leave balances, including but not limited to accrued 
and used leave, sick leave, eligibility for and/or authorize donations 
for the leave transfer program, and other types of leave categories;

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    The data is entered by HUD employees from their location using a 
time and attendance system located at a Federal agency. The following 
routine uses are transmittal of data contained in the system of records 
for time and attendance and payroll processing services such as:
    1. To payroll providers, and authorized financial and payroll 
processing institutions to calculate pay and distribution of wages and 
distribution of allotments and deductions, some through electronic 
funds transfer; to maintain leave balances, payroll/personnel action 
(e.g. promotions and Reduction in Grade personnel actions), receipt 
amount, and administrative overpayment processing;

[[Page 65236]]

    2. To the Department of Treasury to authorize issuance of salary 
payments through electronic funds transfer; processing time and 
attendance actions under an approved contract or servicing agreement 
for the purpose relating to the conversion of HUD employee time and 
attendance recordkeeping services;
    3. To the Internal Revenue Service, Social Security Administration, 
the individual, and taxing authorities of the States, the District of 
Columbia, territories, possessions, and local governments;
    4. To a congressional office in response to a written inquiry from 
the congressional office made at the request of an individual covered 
by the system;
    5. To charitable institutions to report charitable contributions;
    6. To insurance carriers to report employee work elections and 
information withholdings for health insurance;
    7. To the Office of Personnel Management and it contractors 
concerning pay, benefits, retirement deductions, and other information 
necessary to carry on its government wide personnel functions, and to 
other Federal agencies to facilitate employee transfers;
    8. To the Department of Labor to process workers' compensation 
injury claims;
    9. To Federal, state, and other authorized agencies for the purpose 
of collecting debts owed to the Federal government by administrative or 
salary offset programs;
    10. To the Federal Retirement Thrift Investment Board to administer 
the Thrift Savings Plan;
    11. To the Department of Veterans Affairs regarding the final 
accounting for employee pay and benefits;
    12. To Federal, State, and local agencies to assist in the 
enforcement of child and spousal support obligations;
    13. To State governments, the District of Columbia, the 
Commonwealth of Puerto Rico, and the Virgin Islands to assist in 
processing unemployment claims under the Unemployment Compensation for 
Federal Employees Program;
    14. To other Federal agencies to provide wage and separation 
information to another agency as required by law for payroll purposes;
    15. To consumer reporting agencies: Disclosures pursuant to 5 
U.S.C. 552a (b)(12). Pursuant to 5 U.S.C. 552a(b)(12), disclosures may 
be made to a consumer reporting agency as defined in the Fair Credit 
Reporting Act (15. U.S.C. 1681a(f) or the Federal Claims Collection Act 
of 1966, 31 U.S.C. 3701(a)(3)).
    Other Routine Uses include:
    1. To appropriate agencies, entities, and persons to the extent 
such disclosures are compatible with the purpose for which the records 
in this system were collected, as set forth by Appendix I \2\--HUD's 
Library of Routine Uses published in the Federal Register on (77 FR 
41996, July 17, 2012);
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    \2\ http://portal.hud.gov/hudportal/documents/huddoc?id=append1.pdf.
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    2. To appropriate agencies, entities, and persons when: a) HUD 
suspects or has confirmed that the security or confidentiality of 
information in a system of records has been compromised; b) HUD 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 systems or 
programs (whether maintained by HUD 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 HUD's efforts to respond to the suspected or 
confirmed compromise and prevent, minimize, or remedy such harm for 
purposes of facilitating responses and remediation efforts in the event 
of a data breach.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Access to the systems is by user ID and password. Roles in the 
systems limit the user's access once in the system. Hardcopy records 
are kept in a locked cabinet.

RETRIEVABILITY:
    Computerized and hard copy records are retrieved by the 
individual's name or Social Security Number. Hardcopy records are kept 
in a locked cabinet.

SAFEGUARDS:
    Access to the system is safeguarded by a user ID and password and 
is restricted to employees who have a need to access the system in the 
performance of their duties. Within the system the user's roles 
determine their access to records. Hardcopy records are kept in a 
locked cabinet.

RETENTION AND DISPOSAL:
    All pay and leave records are maintained until employees are 
separated from HUD and are then retired or transferred to a new 
employing agency or destroyed in conformance with appropriate General 
Services Administration retirement and/or destruction Schedules such as 
the General Records Schedules 2 (GRS 2) in the following manner:
    <bullet> For Payroll and Leave Records--OCHCO maintains and 
disposes of these records in accordance with General Records Schedule 2 
(GRS 2) issued by the National Archives and Records Administration 
(NARA). Under the GRS 2, records are retained for various periods. 
Generally, the records are kept from 1 to 6 years, depending on the 
type of record involved.
    <bullet> For Garnishment and Levy of Wages Records--OCHCO retains 
these records until the expiration of the garnishment or levy order or 
until the employee leaves, whichever comes first. In some instances 
that are related to a garnishment or levy order, the information is 
destroyed 3 years after the termination of the garnishment or levy 
order.
    The disposal of the paper documents, records, and files is by 
shredding. Backup and Recovery digital media will be destroyed or 
otherwise rendered irrecoverable per NIST SP 800-88 ``Guidelines for 
Media Sanitization'' (September 2006). This complies with all Federal 
regulations. There are no hardcopy records produced that require 
additional archival.

SYSTEM MANAGER(S) AND ADDRESS:
    Felicia Purifoy, Director, Office of Human Capital Services, Office 
of the Chief Human Capital Officer; The Payroll System and Process 
Managers: Brenda Bradley, Pay, Benefits, and Retirement Division 
(PBRD), Director, Office of the Chief Human Capital Officer; Gaye W. 
Walker, Supervisory Human Resources Specialist, Office of the Chief 
Human Capital Officer, located at the Department of Housing and Urban 
Development, 451 Seventh Street SW., Washington, DC 20410.

NOTIFICATION AND RECORD ACCESS PROCEDURES:
    For information, assistance, or inquiries about the existence of 
records, contact the Chief Privacy Officer, Department of Housing and 
Urban Development, 451 Seventh Street SW., Room 4156, Washington, DC 
20410 (Attention: Capitol View Building, 4th Floor), telephone number: 
(202) 402-8073. Verification of your identity must include original 
signature and be notarized. Written request must include the full name, 
Social Security Number, date of birth, current address, and telephone 
number of the individual making the request.

CONTESTING RECORD PROCEDURES:
    The Department's rules for contesting contents of records and 
appealing initial

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denials appear in 24 CFR part 16. Additional assistance may be obtained 
by contacting: U.S. Department of Housing and Urban Development, Chief 
Privacy Officer, 451 Seventh Street SW., Washington, DC 20410 
(Attention: Capitol View Building, 4th Floor), telephone number: (202) 
402-8073 or the HUD Departmental Privacy Appeals Officers, Office of 
General Counsel, Department of Housing and Urban Development, 451 
Seventh Street SW., Washington DC 20410.

RECORD SOURCE CATEGORIES:
    Subject individuals; supervisors; timekeepers; official personnel 
records; previous employers; or other Federal Government agencies; 
Headquarters or Regional Office personnel responsible for solving pay/
leave/time problems; National Finance Center personnel responsible for 
solving pay/leave/time problems; Field Office personnel who have 
information about pay/leave problems, banks, other financial 
institutions, and courts.

SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT:
    None.
[FR Doc. 2014-26095 Filed 10-31-14; 8:45 am]
BILLING CODE 4210-67-P