Privacy Act of 1974; New System of Records, 7320-7323 [05-2676]

Agencies

• DEPARTMENT OF VETERANS AFFAIRS

[Federal Register Volume 70, Number 28 (Friday, February 11, 2005)]
[Notices]
[Pages 7320-7323]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-2676]


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DEPARTMENT OF VETERANS AFFAIRS


Privacy Act of 1974; New System of Records

AGENCY: Department of Veterans Affairs.

ACTION: Notice of new system of records.

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SUMMARY: The Privacy Act of 1974 (5 U.S.C. 552a(e)(4)) requires that 
all agencies publish in the Federal Register a notice of the existence 
of and character of their systems of records. Notice is hereby given 
that the Department of Veterans Affairs (VA) is adding a new system of 
records entitled ``Purchase Credit Card Program--VA'' (131VA047).

DATES: To assure consideration, written comments mailed to the 
Department as provided below must be postmarked no later than March 14, 
2005, and written comments hand delivered to the Department and 
comments submitted electronically must be received as provided below, 
no later than 5 p.m. Eastern Time on March 14, 2005. If no public 
comment is received during the 30-day review period allowed for public 
comment, or unless otherwise published in the Federal Register by VA, 
the new system of records statement is effective March 14, 2005.

ADDRESSES: Written comments concerning the proposed amended system of 
records may be submitted by: Mail or hand-delivery to Director, 
Regulations Management (00REG1), Department of Veterans Affairs, 810 
Vermont Avenue, NW., Room 1068, Washington, DC 20420; fax to (202) 273-
9026; or e-mail to ``VAregulations@mail.va.gov''. All comments received 
will be available for public inspection in the Office of Regulation 
Policy and Management, Room 1063B, between the hours of 8 a.m. and 4:30 
p.m., Monday through Friday (except holidays). Please call (202) 273-
9515 for an appointment.

FOR FURTHER INFORMATION CONTACT: Peter Mulhern, Office of Financial 
Policy (047GC1), Department of Veterans Affairs, 810 Vermont Avenue, 
NW., Washington, DC 20420, (202) 273-5570.

SUPPLEMENTARY INFORMATION: 

I. Description of the Proposed System of Records

    The General Services Administration has established a 
governmentwide charge card service. This service is used as a payment 
mechanism and is designed to provide better financial and cash 
management controls over the Federal Government's low dollar value 
procurements. Individual employees are selected by their agencies to 
obtain and use the Government's purchase card, called SmartPay, to aid 
in the employee's procurement responsibilities.
    An individual employee obtains a credit card by applying to a 
private contractor, which currently is Citibank. This application is 
given to the agency Program Coordinator, who serves as the focal point 
for coordination of applications, issuance and destruction of cards, 
establishment of reports, and administrative training. This Program 
Coordinator also serves as a liaison between the agency and Citibank. 
Prior to obtaining this account, an employee receives a delegation of 
authority from his/her agency, which indicates the maximum dollar 
amount for each single purchase made and a dollar limit for total 
purchases made with the credit card in a given month. At the close of 
each billing cycle, each employee receives a ``Statement of Account'' 
from Citibank that itemizes each transaction.
    In order to successfully participate in the SmartPay purchase card 
program, VA must maintain certain records on the employees who have 
obtained a credit card. This information includes name, address, social 
security number, employment information, telephone numbers, information 
needed for identification verification, charge card applications, 
charge card statements, terms and conditions for use of the charge 
card, and monthly report from contractor(s) showing charges to 
individual account numbers, balances and other types of account 
analysis. This information is retrievable by the employee's name. 
Consequently, a Privacy Act system of records must be established in 
order to protect this information.

[[Page 7321]]

II. Proposed Routine Use Disclosures of Data in the System

    VA is proposing to establish the following routine use disclosures 
of the information that will be maintained in the system.
    1. The record of an individual who is covered by this system may be 
disclosed to a Member of Congress, or a staff person acting for the 
member, when the member or staff person requests the record on behalf 
of and at the written request of the individual.
    Individuals sometimes request the help of a Member of Congress in 
resolving some issue relating to a matter before VA. The Member of 
Congress then writes VA, and VA must be able to give sufficient 
information to be responsive to the inquiry.
    2. Disclosure may be made to the National Archives and Records 
Administration (NARA) in records management inspections conducted under 
authority of Title 44 U.S.C.
    NARA is responsible for archiving old records no longer actively 
used, but which may be appropriate for preservation. NARA is 
responsible in general for the maintenance of the Federal Government's 
records. VA must be able to turn records over to NARA in order to 
determine the proper disposition of such records.
    3. Records from this system of records may be disclosed to the 
Department of Justice (DOJ) (including U.S. Attorneys) or in a 
proceeding before a court, adjudicative body, or other administrative 
body when litigation or the adjudicative or administrative process is 
likely to affect VA, the employees or any of its components, or when 
VA, its employees, or any of its components is a party to the 
litigation or process, or has an interest in the litigation or process, 
and the use of such records is deemed by VA to be relevant and 
necessary to the litigation or process, provided that the disclosure is 
compatible with the purpose for which the records were collected.
    Whenever VA is involved in litigation or an adjudicative or 
administrative process, or occasionally when another party is involved 
in litigation or an adjudicative or administrative process, and VA 
policies or operations could be affected by the outcome of the 
litigation or process, VA would be able to disclose information to the 
court, the adjudicative or administrative bodies, or the parties 
involved. A determination would be made in each instance that, under 
the circumstances involved, the purpose served by the use of the 
information in the particular litigation or process is compatible with 
a purpose for which VA collects the information.
    4. Disclosure of relevant information may be made to individuals, 
organizations, private or public agencies, or other entities with whom 
VA has a contract or agreement or where there is a subcontract to 
perform such services as VA may deem practicable for the purposes of 
laws administered by VA, in order for the contractor or subcontractor 
to perform the services of the contract or agreement.
    VA must be able to provide information to contractors and 
subcontractors with whom VA has a contract or agreement in order to 
perform the services of the contract or agreement.
    5. VA may disclose on its own initiative any information in this 
system that is relevant to a suspected or reasonably imminent violation 
of law, whether civil, criminal, or regulatory in nature and whether 
arising by general or program statute or by regulation, rule, or order 
issued pursuant thereto, to a Federal, State, local, tribal, or foreign 
agency charged with the responsibility of investigating or prosecuting 
such violation, or charged with enforcing or implementing the statute, 
regulation, rule, or order.
    VA must be able to comply with the requirements of agencies charged 
with enforcing the law and investigations of violations or possible 
violations of law. VA must also be able to provide information to 
Federal, State, local, tribal and foreign agencies charged with 
protecting the public health as set forth in law.
    6. Disclosure to other Federal agencies may be made to assist such 
agencies in preventing and detecting possible fraud or abuse by 
individuals in their operations and programs.
    Abuse of Federal programs costs the Federal Government and 
taxpayers large sums of money every year. Information contained in VA 
records may help detect and/or prevent fraud and abuse of other agency 
programs. VA must be able to assist other Federal agencies in their 
efforts to detect and prevent fraud and abuse in their programs.
    7. Any information in this system may be disclosed, other than to 
consumer reporting agencies, in connection with any proceeding for the 
collection of an amount owed VA as the result of an employee's 
unauthorized use of a purchase card when such disclosure is deemed 
necessary and proper.
    Sometimes an employee uses the purchase care to obtain unauthorized 
items. If VA pays for such purchases, VA will seek reimbursement from 
the employee. If the employee does not voluntarily reimburse VA for the 
unauthorized purchases, VA will pursue collection through procedures 
set forth in 31 U.S.C., chapter 37, subchapters I and II, 31 CFR parts 
900-904, and VA regulations 38 CFR 1.900-1.954, as well as through 
Federal salary offset under 5 U.S.C. 5514 and VA regulations 38 CFR 
1.980-1.994.
    8. Routine uses 8 and 9 are added to this new system of records to 
authorize release of information to the Department of the Treasury, the 
Department of Justice, other Federal agencies, and private collection 
agencies for debt collection purposes.
    In accordance with the Debt Collection Improvement Act of 1996 
(DCIA) (Public Law 104-134, April 26, 1996), VA and other Federal 
agencies must now notify the Department of the Treasury of all 
delinquent debts over 180 days old so that Treasury can collect these 
debts through administrative offset from Federal payments, including 
tax refunds and salary payments. VA and other Federal agencies are also 
required to refer delinquent debts over 180 days old to the Department 
of the Treasury so that Treasury may attempt to collect, compromise, or 
terminate these debts. Treasury may also refer these debts to other 
designated Federal debt collection centers, to the Department of 
Justice for litigation, or to private collection agencies.
    9. Records from the system of records may be disclosed to officials 
of labor organizations recognized under 5 U.S.C. chapter 71 when 
relevant and necessary to their duties of exclusive representation 
concerning personnel policies, practices, and matters affecting working 
conditions.
    As noted above, sometimes an employee uses the purchase card to 
obtain unauthorized items. In addition to debt collection procedures, 
the employee may face disciplinary action for such unauthorized use of 
the card. As a result, the employee may seek representation or guidance 
from recognized labor organizations and VA must be able to provide 
information to labor organizations to enable them to provide adequate 
representation and guidance under these circumstances.
    10. The name and address of an employee, and other information as 
is reasonably necessary to identify such employee, may be disclosed to 
a consumer reporting agency for the purpose of locating the employee 
or, obtaining a consumer report to determine the ability of the 
employee to repay an indebtedness to VA arising by virtue of the 
unauthorized use of a purchase credit card, provided that the

[[Page 7322]]

requirements of 31 U.S.C. 3711(e) have been met.
    Disclosures pursuant to 5 U.S.C. 552a(b)(12) may be made 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 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 
consumer reporting agency to prepare a commercial credit report. Title 
31 U.S.C. 3711(d) governs the release of names and addresses of any 
person to consumer reporting agencies under certain circumstances.

III. Compatibility of the Proposed Routine Use Disclosures

    The Privacy Act permits VA to disclose information about 
individuals without their consent for a routine use when the 
information will be used for a purpose that is compatible with the 
purpose for which VA collected the information. In all of the routine 
use disclosures described above, the recipient of the information will 
use the information either in connection with a matter relating to one 
of VA's programs, or will use the information to provide a benefit to 
VA, or will disclose as required by law.
    The ``notice of intent to publish'' and an advance copy of the 
system notice have been sent to the appropriate Congressional 
committees and to the Director of the Office of Management and Budget 
(OMB) as required by 5 U.S.C. 552a(r) (Privacy Act) and guidelines 
issued by OMB on December 12, 2000 (65FR77677).

    Approved: January 26, 2005.
Anthony J. Principi,
Secretary of Veterans Affairs.

SYSTEM NAME:
    Purchase Credit Card Program-Va (131VA047).

SYSTEM LOCATION:
    This system of records is located in the finance/fiscal office of 
the local installation of the Department, the Financial Services 
Center, Austin, TX, as well as VA Central Office, Washington, DC. 
Records necessary for the contractor to perform under the contract are 
located at the contractor's facility.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals covered by the system are current VA employees who have 
their own Government assigned charge card, or who have had a charge 
card.

CATEGORIES OF RECORDS IN THE SYSTEM:
    Records include name, work and home addresses, social security 
number, date of birth, employment information, work and home telephone 
numbers, information needed for identification verification, charge 
card applications, charge card statements, terms and conditions for use 
of the charge card, and monthly report from contractor(s) showing 
charges to individual account numbers, balances, and other types of 
account analysis.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    Federal Acquisition Regulation (FAR), part 13, 48 CFR part 13, and 
Public Law 93-579, section 7(b).

Purpose(s):
    To establish and maintain a system for operating, controlling, and 
managing the purchase card program involving commercial purchases by 
authorized VA employees.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    System information may be accessed and used by authorized VA 
employees or contractors to conduct duties associated with the 
management and operation of the purchase card program.
    Information from this system also may be disclosed as a routine use 
for the following purposes:
    1. The record of an individual who is covered by this system may be 
disclosed to a Member of Congress, or a staff person acting for the 
member, when the member or staff person requests the record on behalf 
of and at the written request of the individual.
    2. Disclosure may be made to the National Archives and Records 
Administration (NARA) in records management inspections conducted under 
authority of Title 44 U.S.C.
    3. Records from this system of records may be disclosed to the 
Department of Justice (DOJ) (including U.S. Attorneys) or in a 
proceeding before a court, adjudicative body, or other administrative 
body when litigation or the adjudicative or administrative process is 
likely to affect VA, its employees or any of its components, or when 
VA, its employees, or any of its components is a party to the 
litigation or process, or has an interest in the litigation or process, 
and the use of such records is deemed by VA to be relevant and 
necessary to the litigation or process, provided that the disclosure is 
compatible with the purpose for which the records were collected.
    4. Disclosure of relevant information may be made to individuals, 
organizations, private or public agencies, or other entities with whom 
VA has a contract or agreement or where there is a subcontract to 
perform such services as VA may deem practicable for the purposes of 
laws administered by VA, in order for the contractor or subcontractor 
to perform the services of the contract or agreement.
    5. VA may disclose on its own initiative any information in this 
system that is relevant to a suspected or reasonably imminent violation 
of law, whether civil, criminal, or regulatory in nature and whether 
arising by general or program statute or by regulation, rule, or order 
issued pursuant thereto, to a Federal, State, local, tribal, or foreign 
agency charged with the responsibility of investigating or prosecuting 
such violation, or charged with enforcing or implementing the statute, 
regulation, rule, or order.
    6. Disclosure to other Federal agencies may be made to assist such 
agencies in preventing and detecting possible fraud or abuse by 
individuals in their operations and programs.
    7. Any information in this system of records may be disclosed, 
other than to consumer reporting agencies, in connection with any 
proceeding for the collection of an amount owed VA as the result of an 
employee's unauthorized use of a purchase card when such disclosure is 
deemed necessary and proper.
    8. Any information in this system of records concerning a 
delinquent debt may be disclosed to the Secretary of the Treasury, or 
to any designated Government disbursing official, for the purpose of 
conducting administrative offset of any eligible Federal payments under 
the authority set forth in 31 U.S.C. 3716. Tax refund and Federal 
salary payments may be included in those Federal payments eligible for 
administrative offset.
    9. Any information in this system of records concerning a 
delinquent debt may be disclosed to the Secretary of the Treasury for 
appropriate collection or termination action, including the transfer of 
the indebtedness for collection or termination, in accordance with 31 
U.S.C. 3711(g)(4), to a debt collection center designated by the 
Secretary of the Treasury, to a private collection agency, or to the 
Department of Justice. The Secretary of the Treasury, through the 
Department of the Treasury, a designated debt collection center, a

[[Page 7323]]

private collection agency, or the Department of Justice may take 
appropriate action on a debt in accordance with the existing laws under 
which the debt arose.
    10. Records from this system of records may be disclosed to 
officials of labor organizations recognized under 5 U.S.C. chapter 71 
when relevant and necessary to their duties of exclusive representation 
concerning personnel policies, practices, and matters affecting working 
conditions.

DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    Disclosures pursuant to 5 U.S.C. 552a(b)(12) may be made 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 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 limited to the agency or 
program under which the claim arose for the sole purpose of allowing 
the consumer reporting agency to prepare a commercial credit report. 
Title 31 U.S.C. 3711(e) governs the release of names and addresses of 
any person to consumer reporting agencies under certain circumstances.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    Paper documents and electronic storage media.

RETRIEVABILITY:
    These records may be retrieved using various combinations of name 
or identification number (credit card number) of the individual on whom 
the records are maintained.

SAFEGUARDS:
    Access to these records is restricted to authorized VA employees, 
contractors, or subcontractors on a ``need to know'' basis. Offices 
where these records are maintained are locked after working hours and 
are protected from outside access by the Federal Protective Service, 
other security officers, and alarm systems. Access to computerized 
records is restricted to authorized VA employees, contractors, or 
subcontractors by means of unique user identification and passwords.

RETENTION AND DISPOSAL:
    In accordance with General Records Schedule 6, Item 1a(2), retain 
in inactive storage 1 year after the close of the fiscal year, then 
transfer to a Federal Archives and Records Center, Destroy 6 years and 
3 months after period covered by account.

SYSTEM MANAGER(S) AND ADDRESS:
    Deputy Assistant Secretary for Finance (047), VA Central Office, 
Washington, DC 20420.

NOTIFICATION PROCEDURE:
    Individuals seeking information concerning the existence of a 
record pertaining to them must submit a written request to the VA 
station where the records are maintained. Such requests must contain a 
reasonable description of the records requested. In addition, 
identification of the individual requesting the information will be 
required in the written request and will consist of the requester's 
name, signature, and address, as a minimum.

RECORD ACCESS PROCEDURE:
    (See Notification procedure above.)

CONTESTING RECORD PROCEDURE:
    (See Notification procedure above.)

RECORD SOURCE CATEGORIES:
    Information received from individuals and the private card 
contractor.

[FR Doc. 05-2676 Filed 2-10-05; 8:45 am]
BILLING CODE 8320-01-M