TREASURY DIRECTIVE
25-06Date: June 22, 2001
Sunset Review: June 22, 2005
SUBJECT: The Treasury Data Integrity Board
1. PURPOSE. This Directive establishes a Department of the Treasury Data Integrity Board (hereafter referred to as the "Board") pursuant to the Computer Matching and Privacy Protection Act of 1988 (Pub. L.100-503). It also sets forth the policy and procedures to be implemented by the Board.
2. SCOPE. This Directive applies to the Departmental Offices (DO), the Office of Inspector General, the Treasury Inspector General for Tax Administration, and all bureaus that have matching programs subject to the Computer Matching and Privacy Protection Act (hereafter referred to as the "Computer Matching Act").
3. POLICY. It is the policy of the Department of the Treasury that:
a. the Board shall provide Departmental oversight and coordinate the implementation of the Computer Matching Act within the Department;
b. all bureaus that conduct matching programs covered by the Computer Matching Act shall:
(1) develop matching agreements approved by both source and recipient agencies; and
(2) submit such agreements to the Board for approval at least 60 days before the date the match is to be conducted.
4. BACKGROUND. The Computer Matching Act amends the Privacy Act of 1974 (hereafter referred to as the "Privacy Act") to establish procedural safeguards regarding the use of Privacy Act records by Federal agencies for certain types of computerized matching programs. Each Federal agency that acts as either a source or recipient in a matching program is required to establish a Board to oversee the agency's participation.
5. DEFINITIONS. Since the Computer Matching Act is an amendment of the Privacy Act of 1974, the provisions of the Computer Matching Act should be read within the context of the Privacy Act. All the terms defined in the Privacy Act apply. See Attachment 1 for definitions contained in the Computer Matching Act.
6. TREASURY DATA INTEGRITY BOARD. The Board is responsible for oversight and coordination of computer matching programs covered by the Computer Matching Act within the Department. The membership of the Board consists of senior agency officials designated by the agency head. The senior agency officials are designated from bureaus, Departmental Offices, and major offices. The Board may delegate responsibilities such as compiling reports, advising program officials, and maintaining and distributing information about the accuracy and reliability of data used in matching. The approval of matching agreements may not be delegated. See Attachment 2 for the operational procedures of the Board, including discussion of Board membership. The principal responsibilities of the Data Integrity Board are listed below.
a. Review, approve, and maintain all written agreements for receipt or disclosure of agency records for matching programs to ensure compliance with all relevant statutes, regulations, and guidelines.
b. Review all matching programs in which Treasury has participated during the year, either as a source agency or recipient agency; determine compliance with applicable laws, regulations, guidelines, and agency agreements; and assess the costs and program benefits, if appropriate.
c. Review all recurring matching programs in which Treasury has participated during the year, either as a source agency or recipient agency, for continued justification for such disclosures.
d. Compile a biennial report to be submitted to the Secretary of the Treasury and the Office of Management and Budget (OMB) and made available to the public on request. The report shall describe:
(1) the matching activities Treasury has participated in as a source or recipient agency;
(2) matching agreements disapproved by the Board;
(3) any changes in Board membership or structure during the preceding year;
(4) the reasons for any waiver of the requirements of the Computer Matching Act; and
(5) any violations of matching agreements and corrective action taken.
e. Serve as a clearinghouse for receiving and providing information on the accuracy, completeness, and reliability of records used in matching programs.
f. Review all requests for pilot matches. Approve or disapprove such requests based upon the assessment of the supporting documentation.
g. Provide interpretation and guidance to Treasury components and personnel on the requirements for matching programs and privacy protection.
h. Review Treasury recordkeeping and disposal policies and practices for matching programs to assure compliance with the requirements for matching programs and privacy protection.
i. May review and report on any Treasury matching activities that are not matching programs.
7. RESPONSIBILITIES.
a. The Deputy Assistant Secretary (Information Systems) and Chief Information Officer, the Inspector General, and the Treasury Inspector General for Tax Administration shall serve as mandatory members of the Board, as required by the Act.
b. Chief Management and Administrative Programs Officer, Heads of Bureaus, the Inspector General, the Treasury Inspector General for Tax Administration, and Bureau Chief Information Officers, as it relates to their respective bureaus and offices, shall:
(1) establish internal bureau procedures to ensure the effectiveness of the Computer Matching Act Program. The procedures shall be consistent with:
(a) OMB Matching Guidelines;
(b) OMB Circular A-130;
(c) the Privacy Act of 1974, as amended; and
(d) OMB Bulletin 89-22;
(2) ensure that employees responsible in any part for matching activities are knowledgeable about the provisions and requirements of the Computer Matching Act;
(3) report new and ongoing matching activities to the Board; and
(4) submit the following information, as required, to the Board:
(a) data for OMB's Biennial Matching Activity Report to Congress; and
(b) a report on the review of each ongoing matching program in which the component has participated during the year, either as a source or as a matching agency.
c. The Director, Office of IT Policy and Strategy, Office of the Deputy Assistant Secretary (Information Systems) and Chief Information Officer shall provide the day-to-day operational support for the Board, and shall:
(1) forward to each Board member a copy of the matching agreement for Board member action;
(2) notify the component submitting the matching agreement if a Board member recommends disapproval of a matching agreement, or non-concurs;
(3) provide a summary of Board members' recommendations to the Chairperson for final approval or disapproval;
(4) maintain the official files on correspondence, OMB guidelines, procedures, and any other documentation pertinent to the Board and its activities;
(5) prepare correspondence, reports, schedules, plans, and procedures as necessary for the Board to oversee and coordinate computer matching and privacy protection activities within the Department;
(6) coordinate and prepare the biennial report for the Chairperson's signature;
(7) provide critical review and analysis of issues and problems impacting on computer matching and privacy protection activities within the Department; and
(8) advise the Board on the operational implications of policy decisions made necessary by congressional, OMB and/or Board action.
d. The Departmental Disclosure Officer, DO, shall:
(1) serve as a permanent member and the Secretary to the Board and keep minutes of each meeting;
(2) provide policy guidance and direction on privacy protection matters as they relate to computer matching and the implementation of those portions of the Computer Matching Act that deal with the protection of the rights of individuals;
(3) maintain the official files on matching agreements and minutes of Board meeting; and
(4) review and publish notices of matching programs.
8. REQUIREMENTS. Treasury components undertaking matching programs covered by the Computer Matching Act need to make sure they comply with requirements set forth in the guidance from OMB published in the Federal Register on June 19, 1989.
a. Comply with Privacy Act systems of records and disclosure provisions.
b. Provide prior notice to record subjects.
c. Publish matching notices as required.
d. Prepare and execute matching agreements.
e. Obtain approval by the Board of all matching agreements.
f. Submit reports to OMB and Congress.
g. Provide due process to matching subjects.
9. REVIEW OF MATCHING PROGRAMS. Components submitting matching agreements for the Board's approval shall send a memorandum to the Director, Office of IT Policy and Strategy, that states the purpose of the matching agreement and provides a summary of revisions, if applicable. This memo should be prepared by the component function designated as the liaison to the Board. An original and ten copies of the memorandum shall be submitted to the Office of IT Policy and Strategy for distribution to each Board member. Components are responsible for:
a. publication of notices of the establishment, or alteration, of matching programs in the Federal Register at least 30 days before conducting a match; and
b. transmittal of the matching program report and supporting documentation to the Senate Committee on Governmental Affairs and to the House Committee on Government Operations and to OMB, at least 40 days prior to the initiation of matching activity.
10. APPEALS OF DENIALS OF MATCHING AGREEMENTS.
a. Disapproval by the Board. If the Board disapproves a matching agreement, a party to the agreement may appeal the disapproval to the Director, OMB, Washington, D.C. 20503. Appeals must be made within 30 days after the Board's written disapproval. The appealing party shall submit with its appeal the following information:
(1) copies of all documentation accompanying the initial matching agreement proposal;
(2) a copy of the Board's disapproval and reasons therefore;
(3) evidence supporting the cost effectiveness of the match; and
(4) other relevant information, i.e., timing considerations, public interest served by the match, etc.
b. OMB Approval. A matching program approved by OMB in response to such appeal will not become effective until 30 days after the Director, OMB, reports the decision to Congress.
c. Recourse by the Inspector General or the Treasury Inspector General for Tax Administration. If the Board and the Director, OMB, both disapprove a matching program proposed by the Inspector General of the agency or the Treasury Inspector General for Tax Administration, the Inspector General or the Treasury Inspector General for Tax Administration may report that disapproval to the head of the agency and to the Congress.
11. COST-BENEFIT ANALYSIS. Components proposing matching programs must provide the Board with all information that is relevant and necessary to allow the Board to make an informed decision including a cost-benefit analysis. Statutorily mandated matches need not demonstrate a positive dollar cost-benefit analysis. All decisions of the Board will be well-documented. The Board must find that agreements conform to the provisions of the Computer Matching Act and appropriate guidelines, regulations, and statutes.
12. AUTHORITIES.
a. The Computer Matching and Privacy Protection Act of 1988, as amended, (Pub. L. 100-503).
b. The Privacy Act of 1974, (5 U.S.C. 552a(u)).
c. OMB Circular A-130, Revised, Transmittal Memorandum 1, "Management of Federal Information Resources," Appendix I.
d. OMB Bulletin 89-22, "Instructions on Reporting Computer Matching Programs to the Office of Management and Budget (OMB), Congress and the Public".
e. OMB Final Guidance Interpreting the Provisions of Public Law 100-503, the Computer Matching and Privacy Protection Act of 1988.
f. OMB Guidelines on the Administration of the Privacy Act of 1974.
13. CANCELLATION. TD 25-06, "The Treasury Data Integrity Board," dated July 15, 1998, is superseded.
14. OFFICE OF PRIMARY INTEREST. Office of the Deputy Assistant Secretary (Information Systems) and Chief Information Officer, Office of the Assistant Secretary for Management and Chief Financial Officer.
/S/
James J. Flyzik
Acting Assistant Secretary for Management
and Chief Information Officer
Attachments
Attachment 1
DEFINITIONS
1. Matching Program. The term "matching program:"
a. means any computerized comparison of:
(1) two or more automated systems of records or a system of records with non-Federal records for the purpose of:
(a) establishing or verifying the eligibility of, or continuing compliance with statutory and regulatory requirements by, applicants for, recipients or beneficiaries of, participants in, or providers of services with respect to, cash or in-kind assistance or payments under Federal benefit programs, or
(b) recouping payments or delinquent debts under such Federal benefit programs; or
(2) two or more automated Federal personnel or payroll systems of records or a system of Federal personnel or payroll records with non-Federal records.
b. but does not include:
(1) matches performed to produce aggregate statistical data without any personal identifiers;
(2) matches performed to support any research or statistical project, the specific data of which may not be used to make decisions concerning the rights, benefits, or privileges of specific individuals;
(3) matches performed, by an agency (or component thereof) which performs as its principal function any activity pertaining to the enforcement of criminal laws, subsequent to the initiation of a specific criminal or civil law enforcement investigation of a named person or persons for the purpose of gathering evidence against such person or persons;
(4) matches of tax information:
(a) pursuant to section 6103(d) of the Internal Revenue Code of 1986;
(b) for purposes of tax administration as defined in section 6103(b)(4) of such Code;
(c) for the purpose of intercepting a tax refund due an individual under authority granted by section 464 or 1137 of the Social Security Act; or
(d) for the purpose of intercepting a tax refund due an individual under any other tax refund intercept program authorized by statute which has been determined by the Director of the Office of Management and Budget to contain verification, notice, and hearing requirements that are substantially similar to the procedures in section 1137 of the Social Security Act;
(5) matches:
(a) using records predominantly relating to Federal personnel, that are performed for routine administrative purposes (subject to guidance provided by the Director of the Office of Management and Budget pursuant to subsection (v));
(b) conducted by an agency using only records from systems of records maintained by that agency; or
(c) if the purpose of the match is not to take any adverse financial, personnel, disciplinary, or other adverse action against Federal personnel; or
(6) matches performed for foreign counterintelligence purposes or to produce background checks for security clearances of Federal personnel or Federal contractor personnel.
2. Recipient Agency. Any agency, or contractor thereof, receiving records contained in a system of records from a source agency for use in a matching program.
3. Non-Federal Agency. Any State or local government, or agency thereof, which receives records contained in a system of records from a source agency for use in a matching program.
4. Source Agency. Any agency which discloses records contained in a system of records to be used in a matching program, or any State or local government, or agency thereof, which discloses records to be used in a matching program.
5. Federal Benefit Program. Any program administered or funded by the Federal Government, or by any agent or State on behalf of the Federal Government, providing cash or in-kind assistance in the form of payments, grants, loans, or loan guarantees to individuals.
6. Federal Personnel. Officers and employees of the Government of the United States, members of the uniformed services (including members of the Reserve Components), individuals entitled to receive immediate or deferred retirement benefits under any retirement program of the Government of the United States (including survivor benefits).
Attachment 2
OPERATION OF THE BOARD
1. Membership. The membership of the Board shall consist of senior agency officials designated by the agency head.
a. The three mandatory senior agency officials required by the Act and designated as members of the Board are:
(1) the Deputy Assistant Secretary (Information Systems) and Chief Information Officer, the Treasury senior official responsible for the implementation of the Privacy Act pursuant to 44 U.S.C. 3506(a);
(2) the Inspector General; and
(3) the Treasury Inspector General for Tax Administration.
b. The senior agency officials are designated from bureaus, Departmental Offices, and major offices.
c. Subject to the requirements of the Computer Matching Act, the Chairperson may add to or reduce the Board's total active membership. Board membership may also be changed by the Chairperson due to reorganization or program/functional realignment. Changes in membership on the Board do not require the approval of the Secretary.
d. In accordance with OMB Guidelines on Computer Matching, the agency Privacy Act Officer shall serve as the Board's Secretary and keep minutes of each meeting.
e. The agency Privacy Act Officer shall be responsible for policy guidance and direction on privacy protection matters with respect to computer matching and implementing sections of the Computer Matching Act concerning the protection of the rights of individuals.
f. Board members or their designees must attend all Board meetings.
2. Delegations. The senior agency officials or designated bureau Board members may designate senior level officials to act on their behalf as either alternates or substitutes. In the absence of the Chairperson, that official may delegate authority to other members of the Board or to the Deputy Assistant Secretary (Information Systems) and Chief Information Officer.
3. Meetings. The Board shall meet as often as necessary to ensure that the Treasury matching programs are carried out efficiently, expeditiously, and in conformance with the Privacy Act, as amended. The Board will, in general, meet at the call of the Chairperson to accomplish duties set forth in the Computer Matching Act and to establish computer matching policy, and to issue guidance to components of the Department. Furthermore, the Board shall:
a. hold meetings periodically as determined by the Chairperson or when requested by two or more of the members of the Board;
b. have no fewer than five members present for a quorum;
c. meet annually during the first quarter of each fiscal year to review an inventory of all matching programs in which Treasury has participated as either a source or recipient agency during the preceding fiscal year to determine compliance with applicable laws, regulations, guidelines, and agency agreements. For audit purposes, this review will include a random sampling of matches to check expiration dates, source/recipient, and cost/benefit analyses; and
d. take action at an official meeting on a matching agreement whenever:
(1) members are given sufficient notice (usually one week) of a meeting of the Board; and
(2) the meeting is attended by the Chairperson or designee and at least five other Board members other than designees.
4. The Chairperson of the Board. The Deputy Assistant Secretary (Information Systems) and Chief Information Officer, who is the senior official responsible for the information resources management program, shall serve as Chairperson, and shall:
a. call meetings of the Board;
b. provide leadership in the development of agenda items, in the conduct of Board meetings, and in guiding Board discussions;
c. inform the Secretary of the major events and plans affecting matching activities within the Department;
d. supervise, directly or indirectly, the working groups established to support Board activities and functions, together with Departmental staff involved in providing technical, administrative or management support to the Board;
e. serve as the focal point with OMB and the Congress on all matters pertaining to the operation and management of matching programs in the Department;
f. at their discretion, convene the Board to review and approve matching agreements. Procedures for the review and approval of matching agreements will allow the Board members to take such actions without formally convening;
g. in the event of a conditional approval, have the authority to determine when the condition(s) have been met, and officially approve the agreement; and
h. call a meeting of the Board at the earliest feasible date (i.e., not later than two weeks) if the component indicates that it does not accept the disapproval of a matching agreement, or is unable to come to an agreement with a Board member's recommendations.
5. Meeting Agenda. Any Board member may submit to the Chairperson for review any item of interest which is pertinent to the work of the Board, the operation and management of computer matching programs within the agency, or items which relate to privacy protection and individual rights. All pertinent information on the matters under consideration must be submitted for the Board's consideration in completed form either in writing or by oral presentation before the Board.
6. Voting. All members may vote, and each member has one vote. Decisions on issues are provided by a vote from the members. In its advisory capacity, the Board presents decisions to the Chairperson for approval or disapproval. The decision of the Board to approve or disapprove will be governed by majority vote of those present. In the case of a tie among the members, the Chairperson will act as the tie breaker.
7. Official Correspondence. All official correspondence and minutes of the Board will be prepared in writing over the signature of the Chairperson, with copies going to the Board members.