[Federal Register: June 27, 2002 (Volume 67, Number 124)]
[Notices]               
[Page 43292-43294]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jn02-55]                         

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DEPARTMENT OF DEFENSE

 
Defense Finance and Accounting Service; Privacy Act of 1974; 
System of Records

AGENCY: Defense Finance and Accounting Service, DoD.

ACTION: Notice of altered System of Records.

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SUMMARY: The Defense Finance and Accounting Service proposes to alter 
an existing system of records notice in its inventory of record systems 
subject to the Privacy Act of 1974, (5 U.S.C. 552a), as amended. The 
alteration consists of adding a new routine use to permit the release 
of information to the Department of the Treasury for administrative 
wage garnishment.

DATES: This action will be effective without further notice on July 29, 
2002, unless comments are received that would result in a contrary 
determination.

ADDRESSES: FOIA/PA Program Manager, Defense Finance and Accounting 
Service--Denver Center, Specialized Legal Support Division, Office of 
General Counsel, 6760 E. Irvington Place, Denver, CO 80279-8000.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Krabbenhoft on (303) 676-
7514.

SUPPLEMENTARY INFORMATION: The complete inventory of Defense Finance 
and Accounting Service records system notices subject to the Privacy 
Act of 1974 (5 U.S.C. 552a), as amended, have been published in the 
Federal Register and are available from the address above.
    The proposed system report, as required by 5 U.S.C. 552a(r) of the 
Privacy Act of 1974, as amended, was submitted on June 19, 2002, to the 
House Committee on Government Reform, the Senate Committee on 
Governmental Affairs, and the Office of Management and Budget (OMB) 
pursuant to paragraph 4c of Appendix I to OMB Circular No. A-130, 
`Federal Agency Responsibilities for Maintaining Records About 
Individuals,' dated February 8, 1996 (February 20, 1996, 61 FR 6427).

    Dated: June 21, 2002.
Patricia L. Toppings,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
T7332

System name:
    Defense Debt Management System (April 8, 1997, 62 FR 16793).

Changes:
* * * * *

System location:
    Delete entry and replace with `Defense Finance and Accounting 
Service-Denver Center, 6760 East Irvington Place, Denver, CO 80279-
8000.'

Categories of individuals covered by the system:
    Delete `contractors' from entry.

Categories of records in the system:
    First paragraph, first sentence, add `billing and follow-up' 
between `debt' and `collection'. In second sentence replace `amount of 
debt or' with `original debt principal and the', and add `late payment 
charges', and `due process notice, and records of e-mail, telephone, or 
written' to entry.
    Third paragraph, replace first sentence with `Correspondence with 
other Federal agencies requesting administrative offset from payments 
owed to the debtor.'
    Fourth paragraph, add `U.S. Department of Justice' to entry.
    Delete paragraphs six and nine.
* * * * *

Purpose(s):
    Delete the fourth paragraph.
    Delete fifth paragraph and replace with `To determine the validity 
of waivers or to make referrals to the Defense Office of Hearings and 
Appeals (DOHA).'

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    Delete paragraphs five and nine.
    Add a new paragraph `To the U.S. Department of Treasury (DOT) for 
centralized administrative or salary offset, including the offset of 
Federal income tax refunds, for the purpose of collecting debts owed 
the U.S. Government; to the DOT contracted private collection agencies 
for the purpose of obtaining collection services, including 
administrative wage garnishment (AWG) in accordance with the Debt 
Collection Improvement Act of 1996 (Pub. L. 104-134), 31 U.S.C. 3720D, 
and 31 CFR part 285, to recover moneys owed to the U.S. Government.'
* * * * *
T7332

System name:
    Defense Debt Management System.

System location:
    Defense Finance and Accounting Service-Denver Center, 6760 East 
Irvington Place, Denver, CO 80279-8000.

Categories of individuals covered by the system:
    Individuals who are indebted to a Department of Defense (DoD) 
agency that have transferred debts to the Defense Debt Management 
System serviced by the Defense Finance and Accounting Service.

EXCLUSION:
    This system does not include individuals who are indebted to a DoD 
agency and who have been identified as currently receiving pay from 
DoD.

Categories of records in the system:
    Information varies depending on the debtor and the related history 
of debt billing and follow-up collection activity. These records may 
include name, Social Security Number, mailing address, original debt 
principal and the delinquent amount, basis of the debt, date debt 
arose, late payment charges, office referring the debt, collection 
efforts, credit reports, collection letters, due process notice, and 
records of e-mail, telephone, or written correspondence to or from the 
debtor relating to the debt.
    Correspondence with other Federal agencies to initiate the 
collection of debts through voluntary or involuntary offset procedures 
against the indebted employees' salaries or compensation due a retiree.
    Correspondence with other Federal agencies requesting 
administrative offset from payments owed to the debtor. These records 
may include individual's name, rank, date of birth, Social Security 
Number, debt amount, documentation establishing overpayment status, 
military pay records, financial status affidavits, credit references, 
and substantiating documents such as military pay orders, pay 
adjustment authorizations, military master pay account printouts, 
records of travel payments, financial record data

[[Page 43293]]

folders, miscellaneous vouchers, debtor financial records, credit 
reports, promissory notes, and debtor financial statements.
    Information on U.S. Treasury Department, Internal Revenue Service 
(IRS), U.S. Department of Justice, and U.S. General Accounting Office 
(GAO) inquiries, judicial proceedings regarding bankruptcy, pay account 
histories, and token payment information.
    Applications for waiver of erroneous payment or for remission of 
indebtedness with supporting documents including statements of 
financial status (personal income and expenses), statements of 
commanders or Defense Accounting Officers, correspondence with debtors, 
or records of overpayments of Survivor Benefit Plan benefits.
    Reports from probate courts regarding the estates of deceased 
debtors.
    Reports from bankruptcy courts regarding claims of the U.S. 
Government against debtors.

Authority for maintenance of the system:
    5 U.S.C. 301, Departmental Regulations, 5512, 5513, 5514, and 5584; 
10 U.S.C. 1442, 1453, 2774, 2775, 9835; 31 U.S.C. 3325, 3342, 3526, 
3701, 3702, 3711, 3716-3718; 32 U.S.C. 710, 716; 37 U.S.C. 1007(c); 40 
U.S.C. 721, 723, 725, 726, 727, 728, 729; the Debt Collection Act of 
1982 (Pub. L. 97-365, as amended by Pub. L. 104-134, the Debt 
Collection Improvement Act of 1996); Pub. L. 89-508; E.O. 9397 (SSN); 
and DoD 7000.14-R, Department of Defense Financial Management 
Regulation, Volume 5, Part Two.

Purpose(s):
    To administratively manage the collection of debts owed to the 
Department of Defense (DoD). These debts include, but are not limited 
to, past due loan payments, overpayments, fines, interest, penalties, 
administrative fees, and amounts derived from damages, leases, and 
sales of real or personal property.
    To implement the salary offset provisions of 5 U.S.C. 5514, the 
administrative offset provisions of 31 U.S.C. 3711 and 3716-3718, and 
the provisions of the Federal Claims Collection Standards (31 CFR parts 
900-904), that apply to personal debts.
    To permit collection of delinquent claims and debts owed to the 
U.S. Government under any program or service administered by any 
creditor DoD Component.
    To determine the validity of waivers or to make referrals to the 
Defense Office of Hearings and Appeals (DOHA).
    To maintain records of investigations conducted for the purpose of 
confirming, canceling, or determining if the debts are accurate or 
valid, and whether the debt should be remitted or waived.
    All records in this system are subject to use in authorized 
computer matching programs within DoD and with other Federal agencies 
or non-Federal agencies as regulated by the Privacy Act of 1974 (5 
U.S.C. 552a), as amended.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    In addition to those disclosures generally permitted under 5 U.S.C. 
552a(b) of the Privacy Act, these records or information contained 
therein may specifically be disclosed outside the DoD as a routine use 
pursuant to 5 U.S.C. 552a(b)(3) as follows:
    To the U.S. General Accounting Office, the U.S. Department of the 
Justice, Internal Revenue Service, U.S. Department of Treasury, or 
other Federal agencies for further collection action on any delinquent 
account when circumstances warrant.
    To commercial credit reporting agencies for the purpose of adding 
debt payment or non-payment data to a credit history file on an 
individual for use in the administration of debt collection. Delinquent 
debt information may be furnished for the purpose of establishing an 
inducement for debtors to pay their obligations to the U.S. Government.
    To any Federal agency where the debtor is employed or receiving 
some type of payment from that agency for the purpose of collecting 
debts owed the U.S. Government by non-centralized offset. Non-
centralized offset encompasses an offset program administered by any 
Federal agency other than the U.S. Department of Treasury. The agency 
holding the payment subject to offset will use the indebtedness 
information for collection purposes after counseling the debtor. The 
collection may be accomplished either voluntarily or involuntarily by 
initiating administrative or salary offset procedures under the 
provisions of the Debt Collection Act of 1982 (Pub. L. 97-365, as 
amended by Pub. L. 104-134, the Debt Collection Improvement Act of 
1996).
    To the U.S. Department of Treasury (DOT) for centralized 
administrative or salary offset, including the offset of Federal income 
tax refunds, for the purpose of collecting debts owed the U.S. 
Government; to the DOT contracted private collection agencies for the 
purpose of obtaining collection services, including administrative wage 
garnishment (AWG) in accordance with the Debt Collection Improvement 
Act of 1996 (Pub. L. 104-134), 31 U.S.C. 3720D, and 31 CFR part 285, to 
recover moneys owed to the U.S. Government.
    To the U.S. Department of Veteran Affairs for administration of 
laws pertaining to veterans' benefits.
    To any Federal agency for the purpose of accomplishing the 
administrative procedures to collect or dispose of a debt owed to the 
U.S. Government. This includes, but is not limited to, the Office of 
Personnel Management for personnel management functions and the 
Internal Revenue Service to obtain a mailing address of a taxpayer for 
the purpose of locating such taxpayer to collect or compromise a 
Federal claim against the taxpayer pursuant to 26 U.S.C. 1603(m)(2), 
and in accordance with 31 U.S.C. 3711, 3217, and 3718. The Internal 
Revenue Service may also request locator service for delinquent 
accounts receivable in order to report closed out accounts as taxable 
income, including amounts compromised or terminated, and accounts 
barred from litigation due to age.
    To any Federal, state, or local agency for the purpose of 
conducting an authorized computer-matching program to identify and 
locate delinquent debtors for recoupment of debts owed DoD.
    To publish or otherwise publicly disseminate information regarding 
the identity of the debtor and the existence of the non-tax debt, 
subject to review by the Secretary of the Treasury.
    The DoD `Blanket Routine Uses' published at the beginning of the 
DFAS compilation of record system notices also apply to this system.

Disclosure to consumer reporting agencies:
    Disclosures pursuant to 5 U.S.C. 552a(b)(12) may be made from this 
system to `consumer reporting agencies' 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)). The purpose of this disclosure is to 
aid in the collection of outstanding debts owed to the Federal 
government, typically to provide an incentive for debtors to repay 
delinquent Federal government debts by making these debts part of their 
credit records.
    The disclosure is limited to information necessary to establish the 
identity of the individual, including name, address, and taxpayer 
identification number (Social Security Number); the amount, status, and 
history of the claim; and the agency or program under which the claim 
arose for the sole purpose of allowing the

[[Page 43294]]

consumer reporting agency to prepare a commercial credit report.

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system:
Storage:
    Records are maintained on computer disks, magnetic tape, 
microfiche, and paper file folders.

Retrievability:
    Retrieved by name, Taxpayer Identification Number, other 
identification number or system identifier, or name of accountable 
disbursing office in whose custody the public funds were entrusted when 
the debt arose.

Safeguards:
    Records are accessed by the custodian of the record system and by 
personnel responsible for servicing the record system in performance of 
their official duties. Records are stored in locked cabinets or rooms, 
or in guarded buildings.

Retention and disposal:
    All cases will remain active until settled by full payment, waiver, 
write-off, or close out. The system contains records requiring a 
retention period of up to 10 years after final action. Records are 
retired to National Records Centers. Destruction is accomplished by 
tearing, shredding, pulping, macerating, or burning.

System manager(s) and address:
    Chief, Debt Management Systems Division, Directorate of Debt and 
Claims Management, Defense Finance and Accounting Service--Denver Site, 
6760 East Irvington Place, Denver, CO 80279-8000.

Notification procedure:
    Individuals seeking to determine whether information about 
themselves is contained in this system should address written inquiries 
to the Defense Finance and Accounting Service--Denver Site, DFAS-GA/DE, 
6760 East Irvington Place, Denver, CO 80279-8000.
    The individuals should furnish their name, Social Security Number, 
and reasonably describe the information they are seeking.

Record access procedures:
    Individuals seeking access to information about themselves 
contained in this system of records should address written inquiries to 
the Defense Finance and Accounting Service--Denver Site, DFAS-GA/DE, 
6760 East Irvington Place, Denver, CO 80279-8000.
    The individuals should furnish their name, Social Security Numbers, 
and reasonably describe the information they are seeking.

Contesting record procedures:
    The DFAS rules for accessing records, for contesting contents and 
appealing initial agency determinations are published in DFAS 
Regulation 5400.11-R; 32 CFR part 324; or may be obtained from the 
Privacy Act Officer at any DFAS Center.

Record source categories:
    Records are obtained from the debtor, DFAS centers, other DoD 
organizations, and agencies of Federal, state, and local governments, 
as applicable or appropriate for processing the case.

Exemptions claimed for the system:
    None.
[FR Doc. 02-16188 Filed 6-26-02; 8:45 am]
BILLING CODE 5001-08-P