[Federal Register: October 12, 2005 (Volume 70, Number 196)]
[Notices]               
[Page 59395-59397]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12oc05-129]                         

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DEPARTMENT OF THE TREASURY

Financial Management Service

 
Privacy Act of 1974, as Amended; System of Records

AGENCY: Financial Management Service, Treasury.

ACTION: Notice of proposed new system of records.

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SUMMARY: In accordance with the Privacy Act of 1974, as amended, the 
Financial Management Service gives notice of a proposed new Privacy Act 
system of records entitled ``Treasury/FMS .006-Direct Deposit 
Enrollment Records.''

DATES: Comments must be received no later than November 14, 2005. The 
proposed new system of records will become effective November 21, 2005 
unless comments are received which would result in a contrary 
determination.

ADDRESSES: You should send your comments to Tom Longnecker, Disclosure 
Officer, Financial Management Service, 401 14th Street, SW., 
Washington, DC 20227. Comments received will be available for 
inspection at the same address between the hours of 9 a.m. and 4 p.m. 
Monday through Friday. You may send your comments by electronic mail to 
tom.longnecker@fms.treas.gov or regulations.gov.


FOR FURTHER INFORMATION CONTACT: Tom Longnecker, Disclosure Officer, 
(202) 874-6837.

SUPPLEMENTARY INFORMATION: Pursuant to the Privacy Act of 1974, as 
amended, 5 U.S.C. 552a, the Financial Management Service (FMS) is 
proposing to establish a new system of records entitled ``Direct 
Deposit Enrollment Records--Treasury/FMS .006.'' FMS, a bureau within 
the Department of the Treasury, is responsible for disbursing public 
money. Making payments by electronic funds transfer (EFT), rather than 
by paper check, benefits both recipients and the Government. Agency 
records indicate that recipients are 30 times less likely to have a 
problem with an electronic payment than with a paper check. Unlike 
check payments, electronic payments are not susceptible to being lost, 
stolen, or damaged in transit. Electronic payments are far less 
susceptible to forgery or alteration than checks. Further, EFT payments 
are less costly than checks. The Government saves approximately 62 
cents for each payment made electronically, rather than by check.
    Over the past three decades, Treasury has developed numerous 
programs to enable agencies to make EFT payments. One of these 
programs, known as ``Direct Deposit,'' is used by FMS to transmit 
benefit payments, as well as wage, salary, retirement, allotment, and 
travel payments, directly to the recipient's account at a bank, credit 
union, or other financial institution.
    In 2003, FMS disbursed about 74% of more than 929 million Federal 
payments through EFT, rather than by paper check. FMS continues to 
implement various programs to increase the number of payments made by 
EFT. Among other things, FMS intends to increase the use of Direct 
Deposit throughout the United States and to expand the ways in which 
Federal payees may request Direct Deposit for Government payments.
    FMS intends to increase the use of Direct Deposit with the 
assistance of FMS's fiscal agents (the Federal Reserve Banks), 
contractors, and various community groups. At various information 
sessions and meetings around the country, Federal benefit recipients 
will be offered the opportunity to enroll in Direct Deposit or be 
provided with assistance in completing the Direct Deposit enrollment 
application. Currently, a payee who wishes to sign up for Direct 
Deposit must enroll through his or her financial institution or by 
contacting the Federal agency that authorizes the benefit or other type 
of payment to the payee. As part of its efforts to increase the use of 
Direct Deposit, FMS and/or its fiscal agents and contractors will 
directly receive Direct Deposit enrollment applications for processing.
    The records covered by the proposed system are necessary to process 
Direct Deposit enrollment applications that may be received directly by 
FMS, its fiscal agents, and/or contractors. The records are collected 
and maintained to ensure that Direct Deposit enrollment applications 
are processed correctly in order to minimize any risk that a 
recipient's Federal payment will be disbursed to the wrong account. In 
order to process a Direct Deposit application, a payee needs to submit 
his or her name, address, social security number, financial institution 
account information, and information about the type of benefit paid to 
the payee by the Government. Without such information, FMS, its fiscal 
agents and contractors, would not be able to process the Direct Deposit 
enrollment application as requested by the individual authorizing the 
Direct Deposit enrollment.
    In addition to the purposes cited above, the information contained 
in the covered records will be used for collateral purposes related to 
the processing of Direct Deposit enrollments, such as collection of 
statistical information on operations, development of computer systems, 
investigation of unauthorized or fraudulent activity, and the 
collection of debts arising out of such activity.
    Thus, the information contained in the records covered by FMS's 
proposed system of records is necessary to accurately process Direct 
Deposit enrollment applications.
    FMS recognizes the sensitive nature of the confidential information 
it obtains when collecting financial institution account information 
from the public and has many safeguards in place to protect the 
information from theft or inadvertent disclosure. When appropriate, 
FMS's arrangements with its fiscal agents and contractors include 
requirements that preclude them from retaining, disclosing, and using 
for other purposes the information received from Direct Deposit 
enrollment applications. In addition to various procedural and physical 
safeguards, access to computerized records is limited, through the use 
of access codes, encryption techniques and/or other internal 
mechanisms. Access to records is granted only as authorized by a 
business line manager at FMS or FMS's fiscal agent to those whose 
official duties require access solely for the purposes outlined in the 
proposed system. The information in the Direct Deposit Enrollment 
Records system will allow the public to enjoy the benefits of Direct 
Deposit while lowering costs to

[[Page 59396]]

the Government and minimizing the risks of improper payments, thefts, 
fraudulent transactions, and the loss of public funds.
    The new system of records report, as required by 5 U.S.C. 552a(r) 
of the Privacy Act, has been submitted to the Committee on Government 
Reform of the House of Representatives, the Committee on Governmental 
Affairs of the Senate, and the Office of Management and Budget, 
pursuant to Appendix I to OMB Circular A-130, ``Federal Agency 
Responsibilities for Maintaining Records About Individuals,'' dated 
November 30, 2000.
    For the reasons set forth in the preamble, FMS proposes a new 
system of records Treasury/FMS .006-Direct Deposit Enrollment Records, 
which is published in its entirety below.

    Dated: October 3, 2005.
Sandra L. Pack,
Assistant Secretary for Management and Chief Financial Officer.
Treasury/FMS .006

System name:
    Direct Deposit Enrollment Records--Treasury/Financial Management 
Service.

System location:
    Records are located at the Federal Reserve Bank, acting in its 
capacity as Treasury's fiscal agent, 2200 North Pearl Street, Dallas, 
Texas 75201.

Categories of individuals covered by the system:
    Individuals who enroll with the FMS to receive Federal payments 
from the Federal Government via an electronic funds transfer program 
known as ``Direct Deposit.''

Categories of records in the system:
    The records may contain identifying information, such as an 
individual's name(s), social security number, home address, home and 
work telephone number, and personal e-mail address (home and work); 
information about an individual's bank account(s) and other types of 
accounts to which payments are made, such as the individual's bank 
account number and the financial institution routing and transit 
number; information about an individual's payments received from the 
United States, including the type of payment received and the Federal 
agency responsible for authorizing the payment.

Authority for maintenance of the system:
    5 U.S.C. 301; 31 U.S.C. 321; 31 U.S.C. chapter 33; 31 U.S.C. 3332.

Purpose(s):
    The purpose of this system is to maintain records about individuals 
who wish to enroll in the Direct Deposit program in order to receive 
Federal payments directly to a bank account or other similar type of 
account via electronic funds transfer, rather than by paper check.
    The records are used to process Direct Deposit enrollment 
applications that may be received directly by FMS, its fiscal agents, 
and/or contractors. The records are collected and maintained to 
guarantee that Direct Deposit enrollment applications are processed 
properly to ensure that a recipient's Federal payment will be disbursed 
to the correct account. Without the appropriate information, FMS, its 
fiscal agents and contractors, would not be able to process the Direct 
Deposit enrollment application as requested by the individual 
authorizing the Direct Deposit.
    The information will also be used for collateral purposes related 
to the processing of Direct Deposit enrollments, such as collection of 
statistical information on operations, development of computer systems, 
investigation of unauthorized or fraudulent activity, and the 
collection of debts arising out of such activity.

Routine uses of records maintained in the system, including categories 
of users and the purposes of such uses:
    These records may be used to disclose information to:
    (1) Appropriate Federal, State, local or foreign agencies 
responsible for investigating or prosecuting the violation of, or for 
enforcing or implementing, a statute, rule, regulation, order, or 
license, where the disclosing agency becomes aware of a potential 
violation of civil or criminal law or regulation.
    (2) A court, magistrate, or administrative tribunal, in the course 
of presenting evidence, including disclosures to opposing counsel or 
witnesses, for the purpose of civil discovery, litigation, or 
settlement negotiations or in response to a subpoena, where relevant or 
potentially relevant to a proceeding, or in connection with criminal 
law proceedings.
    (3) A congressional office in response to an inquiry made at the 
request of the individual to whom the record pertains.
    (4) Fiscal agents, financial agents, financial institutions, and 
contractors for the purpose of processing Direct Deposit enrollment 
applications, including, but not limited to, processing Direct Deposit 
enrollment forms and implementing programs related to Direct Deposit; 
investigating and rectifying possible erroneous information; creating 
and reviewing statistics to improve the quality of services provided; 
conducting debt collection services for debts arising from Direct 
Deposit activities; or developing, testing and enhancing computer 
systems.
    (5) Federal agencies, their agents and contractors for the purposes 
of facilitating the processing of Direct Deposit enrollment 
applications and the implementation of programs related to Direct 
Deposit.
    (6) Federal agencies, their agents and contractors, credit bureaus, 
and employers of individuals who owe delinquent debt for the purpose of 
garnishing wages, only when the debt arises from the unauthorized or 
improper use of the Direct Deposit program. The information will be 
used for the purpose of collecting such debt through offset, 
administrative wage garnishment, referral to private collection 
agencies, litigation, reporting the debt to credit bureaus, or for any 
other authorized debt collection purpose.
    (7) Financial institutions, including banks and credit unions, for 
the purpose of disbursing payments and/or investigating the accuracy of 
information required to complete transactions using Direct Deposit and 
for administrative purposes, such as resolving questions about a 
transaction.
    (8) Representatives of the National Archives and Records 
Administration (NARA) who are conducting records management inspections 
under authority of 44 U.S.C. 2904 and 2906.

Disclosure to consumer reporting agencies:
    Debt information concerning a government claim against a debtor 
when the debt arises from the unauthorized use of Direct Deposit is 
also furnished, in accordance with 5 U.S.C. 552a(b)(12) and 31 U.S.C. 
3711(e), to consumer reporting agencies, as defined by the Fair Credit 
Reporting Act, 5 U.S.C. 1681(f), to encourage repayment of a delinquent 
debt.

Policies and practices for storing, retrieving, accessing, retaining, 
and disposing of records in the system: Storage:
    Records are maintained in paper and electronic media.

Retrievability:
    Records are retrieved by name, social security number, telephone 
number, transaction identification number, or other alpha/numeric 
identifying information.

[[Page 59397]]

Safeguards:
    All official access to the system of records is on a need-to-know 
basis only, as authorized by a business line manager at FMS or FMS's 
fiscal agent. Procedural and physical safeguards, such as personal 
accountability, audit logs, and specialized communications security, 
are utilized. Each user of computer systems containing records has 
individual passwords (as opposed to group passwords) for which he or 
she is responsible. Thus, a security manager can identify access to the 
records by user. Access to computerized records is limited, through use 
of access codes, encryption techniques, and/or other internal 
mechanisms, to those whose official duties require access. Storage 
facilities are secured by various means such as security guards, badge 
access, and locked doors with key entry.

Retention and disposal:
    Electronic and paper records for enrollments and associated 
transactions will be retained for six (6) months or as otherwise 
required by statute or court order. Records in electronic media are 
electronically erased using industry-accepted techniques, and in 
accordance with applicable Financial Management Service policies 
regarding the retention and disposal of fiscal agency records. Paper 
records are destroyed in accordance with fiscal agency archive and 
disposal procedures and applicable Financial Management Service 
policies regarding the retention and disposal of fiscal agency records.

System manager(s) and address:
    EFT Strategy Division, Federal Finance, Financial Management 
Service, 401 14th Street, SW., Washington, DC 20227.

Notification procedure:
    Inquiries under the Privacy Act of 1974, as amended, shall be 
addressed to the Disclosure Officer, Financial Management Service, 401 
14th Street, SW., Washington, DC 20227. All individuals making 
inquiries should provide with their request as much descriptive matter 
as is possible to identify the particular record desired. The system 
manager will advise as to whether FMS maintains the records requested 
by the individual.

Record access procedures:
    Individuals requesting information under the Privacy Act of 1974, 
as amended, concerning procedures for gaining access to or contesting 
records should write to the Disclosure Officer. All individuals are 
urged to examine the rules of the U.S. Department of the Treasury 
published in 31 CFR part 1, subpart C, and appendix G, concerning 
requirements of this Department with respect to the Privacy Act of 
1974, as amended.

Contesting record procedures:
    See ``Record access procedures'' above.

Record source categories:
    Information in this system is provided by the individual on whom 
the record is maintained (or by his or her authorized representative), 
other persons who electronically authorize payments from the Federal 
government, Federal agencies responsible for authorizing payments, 
Federal agencies responsible for disbursing payments, and Treasury 
fiscal agents that process Direct Deposit enrollment applications, and 
contractors.

Exemptions claimed for the system:
    None.

[FR Doc. 05-20364 Filed 10-11-05; 8:45 am]

BILLING CODE 4810-35-U