[Federal Register: July 15, 1998 (Volume 63, Number 135)] [Notices] [Page 38241-38245] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr15jy98-124] [[Page 38241]] _______________________________________________________________________ Part IV Department of Education _______________________________________________________________________ Privacy Act of 1974; System of Records; Notice [[Page 38242]] DEPARTMENT OF EDUCATION Privacy Act of 1974; System of Records AGENCY: Department of Education. ACTION: Notice of a new system of records. ----------------------------------------------------------------------- SUMMARY: In accordance with the Privacy Act of 1974, as amended, the Department of Education (the Department) publishes this notice of a new system of records for the Receivables Management System, as authorized by the Federal Claims Collection Act of 1966, Debt Collection Act of 1982, and the Debt Collection Improvement Act of 1996. This system contains a data base of accounts receivable for claims for payment of debts due the Department. This system contains records of activities relative to the collection of those debts.. The Department seeks comments on the proposed routine uses of this system of records. DATES: Comments on proposed routine uses for this system of records must be received on or before July 17, 1998. The Department filed a report of the new system of records with the Chairman of the Committee on Governmental Affairs of the Senate, the Chairman of the Committee on Government Reform and Oversight Operations of the House of Representatives, and the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget (OMB) on July 10, 1998. This system of records will become effective after the 30-day period for OMB review of the system expires on August 10, 1998, unless OMB gives specific notice within the 30 days that the system is not approved for implementation or requests an additional 10 days for its review. The Department will publish any changes to the routine uses that are a result of the comments. ADDRESSES: Comments on the proposed routine uses should be addressed to the Privacy Act Officer, Information Management Group, Office of the Chief Financial and Chief Information Officer, U.S. Department of Education, 600 Independence Avenue SW., Room 5624, General Services Administration (GSA), Regional Office Building3, Washington, DC 20202-4651. Comments may also be sent through the Internet to: comments@ed.gov You must include the term ``Receivables Management System'' in the subject line of your electronic message. FOR FURTHER INFORMATION CONTACT: Philip A. Maestri, Director, Financial Improvement and Receivables Group, Office of the Chief Financial Officer, U. S. Department of Education, 600 Independence Avenue, SW., Room 3117, Washington, DC 20202-4330. Telephone number: (202) 205-3511. Individuals who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through Friday. Individuals with disabilities may obtain this document in an alternate format (e.g., Braille, large print, audiotapes, or computer diskette) on request to the contact person listed in the preceding paragraph. SUPPLEMENTARY INFORMATION: Invitation to Comment Interested persons are invited to submit comments and recommendations regarding proposed routine uses of this system. All comments submitted in response to the proposed routine uses will be available for public inspection, during and after the comment period, in Room 5624, GSA Regional Office Building #3, 7th and D Streets, SW., between the hours of 8 a.m. and 4:30 p.m., Eastern time, Monday through Friday of each week except Federal holidays. On request the Department supplies an appropriate aid, such as a reader or print magnifier, to an individual with a disability who needs assistance to review the comments or other documents in the public rulemaking docket for this notice. An individual with a disability who wants to schedule an appointment for this type of aid may call (202) 205-8113 or (202) 260-9895. An individual who uses a TDD may call the Federal Information Relay Service at 1-800-877-8339, between 8 a.m. and 8 p.m., Eastern time, Monday through Friday. Background The Privacy Act of 1974 (5 U.S.C. 552a(e)(4)) requires the Department to publish in the Federal Register this notice of a new system of records. The Department's regulations implementing the Privacy Act of 1974 are contained in the Code of Federal Regulations (CFR) in 34 CFR part 5b. This system of records is being developed to comply with the Federal Claims Collection Act of 1966, Debt Collection Act of 1982, and the Debt Collection Improvement Act of 1996. The information collected in the Receivables Management System is to aid in the collection of funds due to the Department. Information in the system includes the name of debtor, address, Social Security Number, loan or case number or other debt identifier, telephone number, account history and supporting documents. The Department intends to use the information to notify a debtor of his or her liability to the Government and to take other actions to service the debt. The debt servicing staff of the Financial Improvement and Receivables Group, Office of the Chief Financial Officer, and its private contractors will have access to the information collected. Direct access is restricted to authorized agency and contractor staff in the performance of their official duties. The information will be kept in metal file drawers and computers in a secured building. All physical access to the sites of the contractor and the Department of Education where this system of records is maintained, is controlled and monitored by security personnel who check each individual entering the building for an employee's or a visitor's badge. The computer system employed by the Department offers a high degree of resistance to tampering and circumvention. This security system limits data access to the Department and contract staff on a ``need to know'' basis, and controls individual users' ability to access and alter records within the system. All users of this system are given a unique user ID with a personal identifier. All interactions by individual users with the system are recorded. Electronic Access to this Document Anyone may view this document, as well as all other Department documents published in the Federal Register, in text or portable document format (pdf) on the World Wide Web at either of the following sites: http://ocfo.ed.gov/fedreg.htm http://www.ed.gov/news.html To use the pdf you must have the Adobe Acrobat Reader Program with Search, which is available free at either of the previous sites. If you have questions about using the pdf, call the U.S. Government Printing Office toll free at 1-888-293-6498. Anyone may also view these documents in text copy only on an electronic bulletin board of the Department. Telephone (202) 291-1411 or, toll free, 1-800-222-4922. The documents are located under Option G--Files/Announcements, Bulletins and Press Releases. Note: The official version of this document is the document published in the Federal Register. [[Page 38243]] Dated: July 10, 1998. Donald Rappaport, Chief Financial Officer. (Catalog of Federal Domestic Assistance Number does not apply.) The Chief Financial Officer publishes notice of a new system of records to read as follows. 18-11-0028 SYSTEM NAME: Receivables Management System. SECURITY CLASSIFICATION: None. SYSTEM LOCATIONS: U.S. Department of Education, Office of the Chief Financial Officer, Financial Improvement and Receivables Group, 600 Independence Avenue, SW., Washington, DC 20202-4330. U.S. Department of Education, Office of the Chief Information Officer, 7th and D Streets, SW., Washington, DC 20202. Nationwide Credit, Inc., Credit Claims and Collection, 2253 Northwest Parkway, Marietta, Georgia 30067. Payco American Corporation, 180 N. Executive Drive, Brookfield, Wisconsin 53005-6011. CSC Credit Services, Inc., 7909 Parkwood Circle, Suite 200, Houston, Texas 77036-6565. CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM: Individuals covered by the system include: Persons billed by the Department of Education (the Department) for materials and services such as Freedom of Information Act requests and computer tapes of statistical data, persons ordered by a court of law to pay restitutions to the Department, individuals who received grants under the Bilingual Education Fellowship Program and who have not provided evidence to the Department of fulfilling their work requirements as described in the Bilingual Education Fellowship Program Contract, individuals who have received funds through the Rehabilitation Services Administration (RSA) Scholarship program and who have not provided evidence of fulfilling their obligations under that program, current and former Department employees who received overpayments on travel allowances or who received salary overpayments and the overpayments have not been waived by the Department, individuals who were overpaid or inappropriately paid under grant programs administered by the Department other than Title IV of the Higher Education Act of 1965, as amended (HEA) and claims against individuals, including orders by a court or other authority to make restitution for the misuse of Federal funds in connection with any program administered by the Department. CATEGORIES OF RECORDS IN THE SYSTEM: Documents maintained in the system include: activity logs, copies of checks, contracts, court orders, letters of notice, promissory notes, telephone logs, and related correspondence. AUTHORITY FOR MAINTENANCE OF THE SYSTEM: Federal Claims Collection Act of 1966; Debt Collection Act of 1982; and the Debt Collection Improvement Act of 1996. PURPOSE(S): The Receivables Management System is a database system that is kept for servicing general consumer debts owed to the Department and issuing reports of operations and the status of accounts to the U.S. Department of Treasury (Treasury) and the Office of Management and Budget. The receivables are generated from bills to individuals for materials and services from the Department, claims arising from court-ordered restitutions for any program administered by ED, loans and overpayments to individuals under programs other than the student financial assistance programs authorized under Title IV of the Higher Education Act of 1965, as amended. Records will be used by debt servicing staff to bill debtors to the Department and collect the debts. ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND THE PURPOSE OF SUCH USES: Disclosures under the following routine uses may be made on a case- by-case basis or, in appropriate circumstances under computer matching agreements authorized under the Privacy Act of 1974 (5 U.S.C. 552a). Records may be disclosed for the following debt servicing program purposes: (a) Program purposes: (1) To verify the identity and location of the debtor, disclosures may be made to credit agencies and Federal agencies. (2) To enforce the terms of a loan or where disclosure is required by Federal law, disclosure may be made to credit agencies, educational and financial institutions, and Federal, State, or local agencies. (b) Debt servicing. Records under routine use may be disclosed to the United States Department of the Treasury and privately contracted collection companies for debt servicing. (c) Litigation disclosure. (1) In the event that one of the parties listed below is involved in litigation, or has an interest in litigation, the Department may disclose certain records to the parties described in paragraphs (2), (3) and (4) of this routine use under the conditions specified in those paragraphs: (i) The Department, or any component of the Department; (ii) Any Department employee in his or her official capacity; (iii) Any employee of the Department in his or her individual capacity where the Department of Justice (DOJ) has agreed to provide or arrange for representation for the employee; (iv) Any employee of the Department in his or her individual capacity where the agency has agreed to represent the employee; or (v) The United States where the Department determines that the litigation is likely to affect the Department or any of its components. (2) Disclosure to the DOJ. If the Department determines that disclosure of certain records to the DOJ is relevant and necessary to litigation and is compatible with the purpose for which the records were collected. The Department may disclose those records as a routine use to the DOJ. (3) Administrative Disclosures. If the Department determines that disclosure of certain records to an adjudication body before which the Department is authorized to appear, an individual or entity designated by the Department or otherwise empowered to resolve disputes is relevant and necessary to the administrative litigation and is compatible with the purpose for which the records were collected, the Department may disclose those records as a routine use to the adjudicative body, individual or entity. (4) Opposing counsel, representatives and witnesses. If the Department determines that disclosure of certain records to an opposing counsel, representative or witness in an administrative proceeding is relevant and necessary to the litigation and is compatible with the purpose for which the records were collected, the Department may disclose those records as a routine use to the counsel, representative or witness. (d) Enforcement disclosure. In the event that information in this system of records indicates, either on its face or in connection with other information, a violation or potential violation of any applicable statute, regulation, or order of a competent authority, the relevant records in the system of records may be referred, as a routine use, to the [[Page 38244]] appropriate agency, whether foreign, Federal, State, Tribal, or local, charged with the responsibility of investigating or prosecuting this violation or charged with enforcing or implementing the statute, or executive order or rule, regulation, or order issued pursuant thereto. (e) Contract disclosure. If the Department contracts with an entity for the purpose of performing any function that requires disclosure of records in this system to employees of the contractor, the Department may disclose the records as a routine use to those employees. Before entering into a contract, the Department shall require the contractor to maintain Privacy Act safeguards as required under 5 U.S.C. 552a(m) with respect to the records in the system. (f) Disclosure to the Office of Management and Budget (OMB) for Credit Reform Act (CRA) Support. The Department may disclose individually identifiable information to OMB as necessary to fulfill CRA requirements. (g) Employee grievance, complaint or conduct disclosure. Records may be disclosed if a record maintained in this system of records is relevant to present or former employee grievance, complaint, discipline or competence determination proceedings of another agency of the Federal Government. In this case, the Department may disclose the record as a routine use in the course of the proceedings if the disclosure is compatible with the purposes for this system of records. (h) Labor organization disclosure. Records under this routine use may be disclosed whenever a contract between a component of the Department and a labor organization recognized under Title V of the United States Code, Chapter 71, provides that the Department will disclose personal records relevant to the organization's mission. The disclosures will be made only as authorized by law. (i) Research disclosure. Records under this routine use may be disclosed whenever an appropriate official of the Department determines that an individual or organization is qualified to carry out specific research related to functions or purposes of this system of records. The official may disclose records from this system of records to that researcher solely for the purpose of carrying out that research related to the functions or purposes of this system of records. The researcher is required to maintain Privacy Act safeguards with respect to these records. (j) Freedom of Information Act (FOIA) Advice Disclosure. Records under this routine use may be disclosed to the DOJ and the OMB in the event that the Department deems it desirable or necessary in determining whether particular records are required to be disclosed under the FOIA. (k) Disclosure to the Department of Justice. Records may be disclosed under this routine use to the DOJ from this system of records as a routine use to the extent necessary for obtaining DOJ advice on any matter relevant to an audit, inspection, or other inquiry related to the programs covered by this system. (l) Congressional member disclosure. The Department may disclose information from this system of records to a member Congress from the record of an individual in response to an inquiry from the member made at the written request of that individual. The Member's right to the information is no greater than the right of the individual who requested it. POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, AND DISPOSING OF RECORDS IN THE SYSTEM: STORAGE: Records under this system will be kept on paper files in metal file cabinets and in data files in computers. They are stored in desk top and mainframe computers with records backed up on magnetic media. RETRIEVABILITY: The data will be retrieved by name, loan or cage number, or Social Security Number. SAFEGUARDS: All physical access to the sites of the Department of Education and the contractors where this system of records is maintained, are controlled and monitored by security personnel who check each individual entering the building for an employee's or visitor's badge. The computer system employed by the Department offers a high degree of resistance to tampering and circumvention. This security system limits data access to Department of Education and contract staff on a ``need to know'' basis, and controls individual users' ability to access and alter records within the system. All users of this system are given a unique user ID. All interactions by individual users with the system are recorded. At contractor sites, access to all automated data processing facilities are restricted by photo identification, sign-in and out logs, CYPHER locks, or ID card readers. Smoke and fire detection devices are installed and maintained operational on all facilities including tape and disk library areas. Physical security of the building involves restricted access as well as 24-hour security guard at the ground-floor entrance to the building. Access to building is obtained through the use of key entry doors. The system permits entry to an individual only with an access code. RETENTION AND DISPOSAL: Records are disposed of in accordance with the National Archives and Records Administration's General Records Schedule (GRS) 6, items 1a, 10b, and 10c; and GRS 7. SYSTEM MANAGER(S) AND ADDRESS: Director, Financial Imp