Privacy Act of 1974; Altered System of Records

DEPARTMENT OF VETERANS AFFAIRS

Privacy Act of 1974; Altered System of Records

AGENCY: Department of Veterans Affairs.

ACTION: Notice of Altered System of Records.

-----------------------------------------------------------------------

[[Page 16865]]

SUMMARY: The Privacy Act of 1974 (5 U.S.C. 522a(e)(4)) requires that

all agencies publish in the Federal Register a notice of the existence

and character of their systems of records. Notice is hereby given that

the Department of Veterans Affairs (VA) is altering a system of records

entitled ``Accounts Receivable Records--VA'' (88VA244). This system was

previously numbered ``88VA20A6''.

DATES: Interested persons are invited to submit written comments,

suggestions or objections regarding the proposed changes to the system

of records. All relevant materials received before May 6, 1998, will be

considered. 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 altered system of records is effective May

6, 1998.

ADDRESSES: Written comments concerning the altered system of records

may be mailed to the Director, Office of Regulations Management (02D),

810 Vermont Avenue, NW., Washington, DC 20420. All written comments

received will be available for public inspection at the above address

in the Office of Regulations Management, Room 1158, between the hours

8:00 a.m. and 4:30 p.m., Monday through Friday (except holidays).

FOR FURTHER INFORMATION CONTACT:

Daniel D. Osendorf, Director, Debt Management Center (389/00), U.S.

Department of Veterans Affairs, Bishop Henry Whipple Federal Building,

1 Federal Drive, Ft. Snelling, Minnesota 55111, (612) 725-1844. The

Internet e-mail address for Debt Management Center is: [email protected].

SUPPLEMENTARY INFORMATION: Notification of this system of records was

originally published under system number 88VA20A6 on November 3, 1994,

at 59 FR 55155. To broaden the application of the system of records to

a department-wide basis and to reflect consolidation of collection

responsibilities for additional types of debts under the administration

of VA's Debt Management Center (DMC) in Ft. Snelling, Minnesota, an

altered system of records was published November 26, 1996 at 61 FR

60148. The Debt Collection Improvement Act of 1996 (DCIA), section

31001 of Pub. L. 104-134, was enacted April 26, 1996 and provides for a

Government-wide system of debt collection managed by the Department of

the Treasury.

This system of records has been revised to reflect VA's

participation in the Government-wide debt collection program. The

revisions include new and modified routine uses to accommodate new

means of collection authorized by DCIA, additional Government programs

from which debts are created and for which DMC will perform collection

services, cross servicing of indebtedness accounts by the Department of

the Treasury or other agencies designated by that department and the

referral of indebtedness accounts to Government disbursing officials

for offset of almost any Government payment. DMC has applied for status

as a cross-servicing debt collection center. The new means of

collection authorized by DCIA include sale of delinquent debt to the

private sector, administrative wage garnishment and dissemination of

debtor information. Certain other revisions to the system of records

reflect more current terminology and new citations to referenced

material.

The debt collection program adheres to VA security and reporting

requirements under title 38, Code of Federal Regulations and other

Federal regulations, as well as the Privacy Act of 1974, as amended (5

U.S.C. 552a), and the appropriate provisions of the Internal Revenue

Code, title 26, United States Code.

Approved: March 26, 1998.

Togo D. West, Jr.,

Acting Secretary of Veterans Affairs.

88VA244

SYSTEM NAME.

Accounts Receivable Records-VA.

SYSTEM LOCATION:

Automated indebtedness records for first-party medical billing, pay

administration, compensation, pension, educational assistance,

survivors' and dependents' educational assistance and most home loan

debts are maintained at the VA's Financial Services Center and

Automation/Systems Development Center (AA/SDC) in Austin, Texas.

Automated records of debts referred to the Department of Veterans

Affairs for Government-wide cross-servicing authorized under 31 U.S.C.

3711(g)(4) are maintained at VA's AA/SDC in Austin, Texas. Extracts of

benefit and home loan debt automated records are maintained in the

Benefits Delivery Network for accounting and adjudication purposes. The

Benefits Delivery Network Is administered by the Benefit Delivery

Center (BDC). Hines, Illinois. first-party medical billing information

is extracted from records maintained at VA medical facilities and in

automated media as more fully described in the Privacy Act system of

records, 24VA136, ``Patient Medical Records-VA'' as published at 40 FR

38095 (Aug. 26, 1975), and amended as follows: 40 FR 52125 (Nov. 7,

1975); 41 FR 2881 (Jan. 20, 1976); 41 FR 11631 (Mar. 19, 1976); 42 FR

30557 (Jun. 15, 1977); 44 FR 31058 (May 30, 1979); 45 FR 77220 (Nov.

21, 1980); 46 FR 2766 (Jan. 12, 1981); 47 FR 28522 (Jun. 30, 1982); 47

FR 51841 (Nov. 17, 1982); 50 FR 11610 (Mar. 22, 1985); 51 FR 25968

(Jul. 17, 1986); 51 FR 44406 (Dec. 9, 1986); 52 FR 381 (Jan. 5, 1987);

53 FR 49818 (Dec. 9, 1988); 55 FR 5112 (Feb. 13, 1990); 55 FR 37604

(Sept. 12, 1990); 55 FR 42534 (Oct. 19, 1990); 56 FR 1054 (Jan. 10,

1991); 57 FR 28003 (Jun. 23, 1992); 57 FR 4519 (Oct. 1, 1992); 58 FR

29853 (May 24, 1993); 58 FR 40852 (Jul. 30, 1993); and, 58 FR 57674

(Oct. 26, 1993). Automated and paper indebtedness records for the

Civilian Health and Medical Program of the Department of Veterans

Affairs (CHAMPVA) are maintained at the Health Administration Center

(HAC) in Denver, Colorado and are more fully described in the Privacy

Act system of records, 54VA136, ``Veteran's Spouse or Dependent

Civilian Health and Medical Care Records-VA'', as published at 40 FR

38095 (Aug. 26, 1975) and amended at 53 FR 23845 (Jun. 24, 1998), 53 FR

25238 (Jul. 5, 1988) and 56 FR 26186 (Jun. 6, 1992). Pay administration

indebtedness records are extracted from other automated and paper

records maintained at all VA facilities and the Austin Finance Center

and are more fully described in the Privacy Act system of records,

27VA047, ``Personnel and Accounting Pay System--VA'', as published at

40 FR 38095 (Aug. 26, 1975), and amended as follows: 48 FR 16372 (April

15, 1983); 50 FR 23100 (May 30, 1985); 51 FR 6858 (Feb. 26, 1986); 51

FR 25968 (Jul. 17, 1986); 55 FR 42534 (Oct. 19, 1990); 56 FR 23952 (May

24, 1991); 58 FR 39088 (Jul. 21, 1993); 58 40852 (Jul. 30, 1993); and,

60 FR 35448 (Jul. 7, 1995); 62 FR 41483 (Aug. 1, 1997); and, 62 FR

68362 (Dec. 31, 1997). Certain paper records, microfilm and microfiche

are maintained at the VA Debt Management Center (DMC), Ft. Snelling,

Minnesota. Education loan, miscellaneous home loan and spina bifida

monthly allowance automated, paper, microfilm and microfiche records

are maintained at DMC. Automated and paper indebtedness records related

to the All-Volunteer Force Educational Assistance Program are also

maintained at DMC. Paper records related to benefit and home loan

accounts receivable may be maintained in individual file folders

located at the VA regional office having jurisdiction over the domicile

of the claimant or the geographic area in

[[Page 16866]]

which a property securing a VA guaranteed, insured or direct loan is

located. Similarly, paper and automated records related to first-party

medical billing and CHAMPVA are also maintained in individual patient

medical records at VA health care facilities and HAC. Generally and

with the exception of claims against third-party insurers and certain

first-party medical debts, automated records and papers maintained at

regional offices, health care facilities and HAC are not used directly

in the debt collection process unless they are forwarded by

conventional mail, electronic mail or facsimile to DMC. Records

provided to the Department of Housing and Urban Development (HUD) for

inclusion in the Credit Alert Interactive Voice Response System

(CAIVRS) are located at the HUD Data Processing Center in Lanham,

Maryland. Records referred to the Department of the Treasury for

inclusion in the Treasury Offset Program (TOP) are located at the

Financial Management Service Debt Collection Operations System in

Hyattsville, Maryland.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

Persons indebted to the United States Government as a result of

their participation in benefit programs (including health care

programs) administered by VA under title 38, United States Code,

chapters 11, 13, 15, 17, 18, 21, 30, 31, 34, 35, 36 and 37, including

persons indebted to the United States Government by virtue of their

ownership, contractual obligation or rental of property owned by the

Government or encumbered by a VA-guaranteed, insured, direct or vendee

loan. Persons indebted to the United States Government as a result of

their participation in a benefit program administered by VA under 10

U.S.C. ch. 1606. Persons who received benefits or services under 38

U.S.C. or 10 U.S.C. ch. 1606, but who did not meet the requirements for

receipt of such benefits or services. Persons indebted to the United

States, a State or local government whose debts are referred to the

Department of Veterans Affairs for Government-wide cross-servicing

under 31 U.S.C. 3711(g)(4) or any valid interagency agreement. Persons

indebted to the United States as the result of erroneous payment of pay

or allowances or as the result of erroneous payment of travel,

transportation or relocation expenses and allowances (previously and

hereinafter referred to as ``pay administration'') under the provisions

of title 5, United States Code, part III, subpart D.

CATEGORIES OF RECORDS IN THE SYSTEM:

Information varies depending on the source of the debt. Identifying

information including VA claim number, Social Security number, Tax

Identification Number (TIN), name and address and, when appropriate,

loan reference number, obtained from, among other sources, indebtedness

records of Federal agencies other than VA and the following Privacy Act

systems of records: ``Debt Collection Operations System--Treasury/

Financial Management Service'' (Treasury/FMS .014); ``Compensation,

Pension, Education and Rehabilitation Records-VA'' (58VA21/22); ``Loan

Guaranty Home, Condominium and Manufactured Home Loan Applicant

Records, Specially Adapted Housing Applicant Records, and Vendee Loan

Applicant Records-VA'' (55VA26); ``Patent Medical Records-VA''

(24VA136); and, ``Veteran's Spouse or Dependent Civilian Heath and

Medical Care Records-VA'' (54V136). Initial indebtedness amount, dates

of treatment, amounts claimed for reimbursement type of benefit from

which the debt arose, identifying number of the VA regional office with

jurisdiction over the underlying benefit claim or property subject to

default or foreclosure, station number of the VA health care facility

rendering services, name of co-obligor and property address of the

defaulted home loan from 58VA21/22, 55VA26, 24VA136 and 54VA136.

History of debt collection activity on the person, organization or

entity including correspondence, telephone calls, referrals to other

Federal, State or local agencies, VA regional counsel, private

collection and credit reporting agencies. Payments received, refunds

made, interest amount, current balance of debt and indication of status

of current VA benefit payments. Federal employment status obtained by

computer matching with Government agencies and the United States Postal

Service. No personal medical information concerning the nature of

disease, injury or disability is transmitted to or maintained in this

system of records.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

Government records are maintained and managed under the authority

set forth in 31 U.S.C. 3101 and 31 U.S.C. 3102. The purpose of the

system is consistent with the financial management provisions of title

31, United States Code, chapter 37, the pay administration provisions

of title 5, United States Code, chapter 55, and special provisions

relating to VA benefits in title 38, United States Code, chapter 53.

PURPOSE(S):

The purpose of this system is to maintain records of individuals,

organizations and other entities: (1) Indebted to the United States as

a result of their participation in benefit and health care programs

administered by VA; (2) indebted as a result of erroneous pay

administration; (3) indebted under any other program administered by

any agency of the United States Government and whose indebtedness

record has been referred to VA for Government-wide cross-servicing

under 31 U.S.C. 3711(g)(4); and (4) indebted under any Federal, State

or local government program and whose debt was referred to VA for

collection under any valid interagency agreement. Information in this

system of records is used for the administrative management and

collection of debts owed the United States and any State or local

government and for which records are maintained in accordance with the

preceding sentence.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES

OF USERS AND THE PURPOSE OF SUCH USES:

For purposes of the following routine uses:

(a) The term, ``veteran'', includes present, former or retired

members of the United States Armed Forces, the reserve forces or

national guard;

(b) The term, ``debtor'', means any person falling within the

categories of individuals covered by this system, as set forth above. A

``debtor'' may be a veteran, as defined above, a veteran's dependent

entitled to VA benefits (including health care) in his or her own right

or a person who is neither a veteran nor a veteran's dependent for

benefit purposes; and,

(c) The terms, ``benefit'', ``benefit program'' and ``VA program''

include any gratuitous benefit, home loan (including miscellaneous home

loan) or health care (including CHAMPVA) program administered by the

Secretary of Veterans Affairs.

1. The record of an individual who is covered by this system may be

disclosed to a member of Congress or staff person acting for the member

when the member or staff person requests the record on behalf of and at

the written request of that individual.

2. Any information in this system may be disclosed to a Federal

agency, upon its official request, to the extent that it is relevant

and necessary to that agency's decision regarding: the hiring,

retention or transfer of an employee; the issuance of a security

clearance; the

[[Page 16867]]

letting of a contract or the issuance or continuance of a license,

grant or other benefit given by that agency. However, in accordance

with an agreement between the Department of Veterans Affairs and the

U.S. Postal Service, disclosures to the U.S. Postal Service for

decisions concerning the employment of veterans will only be made with

the veteran's prior written consent.

3. Any information in this system may be disclosed, by computer

matching or otherwise, in connection with any proceeding for the

collection of an amount owed the United States when, in the judgment of

the Secretary, or official generally delegated such authority under

standard agency delegation of authority rules (38 CFR 2.6), such

disclosure is deemed necessary and proper in accordance with 38 U.S.C.

5701(b)(6) for debts resulting from participation in VA benefit

programs or pay administration, with 31 U.S.C. 3711(g)(5) for other

debts referred to VA in its capacity as a Government-wide cross-

servicing facility or with a valid interagency agreement for collection

services independent of the cross-servicing provisions of section

3711(g)(4) and (g)(5).

4. The name and address of a person indebted to the United States

and other information as is reasonably necessary to identify such

person may be disclosed to a consumer reporting agency for the purpose

of locating that person or to obtain a consumer report in order to

assess the ability of that person to repay an indebtedness, provided

the disclosure is consistent with 38 U.S.C. 5701(g)(2) for purposes of

debts owed veterans and their dependents as a result of participation

in VA benefit programs and 31 U.S.C. 3711(h)(1) for purposes of all

other debts to the United States.

5. The name and address of a person indebted to the United States,

other information as is reasonably necessary to identify such person,

including personal information obtained from other Federal agencies

through computer matching programs, and any information concerning the

person's indebtedness to the United States may be disclosed to a

consumer reporting agency for purposes of making such information

available for inclusion in consumer reports regarding that person,

provided that the provisions of 38 U.S.C. 5701(g)(4) have been met for

purposes of indebtedness incurred as the result of participation in VA

benefit programs and 31 U.S.C. 3711(f)(1) for purposes of all other

types of indebtedness.

6. Any information in this system, including available identifying

information regarding a person, such as the person's name, address,

Social Security number, VA insurance number, VA claim number, VA loan

number, date of birth, employment information or identification number

assigned by any Government component, may be disclosed, except to

consumer reporting agencies, to a third party in order to obtain

current name, address and credit report in connection with any

proceeding for the collection of an amount owed the United States. Such

disclosure may be made in the course of computer matching having the

purpose of obtaining the information indicated above. Third parties may

include other Federal agencies, State probate courts, State drivers'

license bureaus, State automobile title and license bureaus and private

commercial concerns in the business of providing the information

sought.

7. Identifying information, including the debtor's name, Social

Security number and VA claim number, along with the amount of

indebtedness, may be disclosed to any Federal agency, including the

U.S. Postal Service, in the course of conducting computer matching to

identify and locate delinquent debtors employed by or receiving

retirement benefits from those agencies. Such debtors may be subject to

offset of their pay or retirement benefits under the provisions of 5

U.S.C. 5514.

8. Any information in this system, including the nature and amount

of a financial obligation as well as the history of debt collection

activity against a debtor, may be disclosed to the Federal agency

administering salary or retirement benefits to the debtor to assist

that agency in initiating offset of salary or retirement benefits to

collect delinquent debts owed the United States.

9. The name(s) and address(es) of a debtor(s) may be disclosed to

another Federal agency or to a contractor of that agency, at the

written request of the head of that agency or designee of the head of

that agency for the purpose of conducting Government research or

oversight necessary to accomplish a statutory purpose of that agency.

10. Information in this system specifically related to debts

resulting from participation in VA programs or pay administration,

including the amount of debt, may be disclosed at the request of the

subject debtor to accredited service organizations, VA-approved claims

agents and attorneys acting under a declaration of representation so

that these individuals can aid persons indebted to VA in the

preparation, presentation and prosecution of debt-related matters under

the laws administered by VA. The name and address of a debtor will not,

however, be disclosed to these individuals under this routine use if

the debtor has not requested the assistance of an accredited service

organization, claims agent or an attorney.

11. Information in this system specifically related to debts

incurred as a result of participation in VA benefit programs such as

the amount of indebtedness and collection history may be disclosed in

the course of presenting evidence to a court, magistrate or

administrative authority in matters of guardianship, inquests and

commitments, to private attorneys representing debtors rated

incompetent in conjunction with issuance of Certificates of

Incompetence and to probation and parole officers in connection with

court-required duties.

12. Information in this system related to debts incurred as a

result of participation in VA benefit programs, including the amount of

indebtedness and history of collection activity, may be disclosed to a

VA or court-appointed fiduciary or a guardian ad litem in relation to

his or her representation of the subject debtor only to the extent

necessary to fulfill the duties of the fiduciary or guardian ad litem.

13. Any relevant information in this system may be disclosed to the

Department of Justice and United States Attorneys in the defense or

prosecution of litigation involving or pertaining to the United States.

Any relevant information in this system may also be disclosed to other

Federal agencies upon their request in connection with review of

administrative tort claims and potential tort claims filed under the

Federal Tort Claims Act, 28 U.S.C. 2672, the Military Claims Act, 10

U.S.C. 2733 and other similar claims statutes.

14. Any information concerning a person's indebtedness to the

United States, including personal information obtained from other

Federal agencies through computer matching programs, may be disclosed

to any third party, except consumer reporting agencies, in connection

with any proceeding for the collection of any amount owed to the United

States. Purposes of these disclosures include, but are not limited to

(a) assisting the Government in collection of debts resulting from

participation in Government programs of all categories and pay

administration, and (b) initiating legal actions for prosecuting

individuals who willfully or fraudulently obtain Government benefits,

pay or allowances without entitlement. Third parties may include,

[[Page 16868]]

but are not limited to, persons, organizations or other entities with

contracts for collection services with the Government.

15. The debtor's name, address, Social Security number and the

amount (excluding interest) of any indebtedness waived, compromised or

written off may be disclosed to the Treasury Department, Internal

Revenue Service, as a report of income under 26 U.S.C. 61(a)(12).

16. The name of a debtor, any other information reasonably

necessary to identify such individual and any other information

concerning the individual's indebtedness under a VA benefit or pay

administration program or an individual's indebtedness referred to VA

for Government-wide cross servicing under 31 U.S.C. 3711(g)(4), may be

disclosed to the Treasury Department, Internal Revenue Service, for the

collection of that indebtedness by offset of Federal income tax refunds

pursuant to 31 U.S.C. 3720A.

17. Debtors' social security numbers, VA claim numbers, loan

account numbers and other information as is reasonably necessary to

identify individual indebtedness accounts may be disclosed to the

Department of Housing and Urban Development for inclusion in the Credit

Alert Interactive Voice Response System (CAIVRS). Information in CAIVRS

may be disclosed to all participating agencies and lenders who

participate in the agencies' programs to enable them to verify

information provided by new loan applicants and evaluate the

creditworthiness of applicants. Records are disclosed to participating

agencies and private-sector lenders by an ongoing computer matching

program.

18. Name, Social Security numbers and any other information

reasonably necessary to ensure accurate identification may be disclosed

to the Department of the Treasury, Internal Revenue Service, to obtain

the mailing address of taxpayers who are debtors under this system of

records. Disclosure is made by computer matching and pursuant to 26

U.S.C. 6103(m)(2).

19. Any information in a record under this system of records may be

disclosed to the United States General Accounting Office (GAO) to

enable GAO to pursue collection activities authorized to that office or

any other activities within their statutory authority.

20. Any information in this system concerning a debt over 180 days

delinquent may be disclosed, by computer matching or otherwise, to the

Secretary of the Treasury or to any designated Government disbursing

official for purposes of conducting administrative offset of any

eligible Federal payments under the authority set forth in 31 U.S.C.

3716. Payments subject to offset include those payments disbursed by

the Department of the Treasury, the Department of Defense, the United

States Postal Service, any Government corporation or any disbursing

official of the United States designated by the Secretary of the

Treasury. Subject to certain exemptions, Social Security, Black Lung,

Railroad Retirement benefits and tax refunds may be included in those

Federal payments eligible for administrative offset.

21. Any information in this system of records concerning a debt

over 180 days delinquent may be disclosed, by computer matching or

otherwise, 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 private collection agency or the

Department of Justice, may take any appropriate action on a debt in

accordance with the existing laws under which the debt arose.

22. The name and address of a debtor, other information as is

reasonably necessary to identify such person, including personal

information obtained from other Federal, state or local agencies as

well as private sources through computer matching, and other

information concerning the person's indebtedness to the United States,

may be disclosed to third parties, including Federal, State and local

government agencies to determine the debtor's employer. Such

information may be used to initiate garnishment of disposable pay in

accordance with the provisions of 31 U.S.C. 3720D.

23. The name and address of a debtor, and such other information as

may be necessary for identification of that debtor, may be disclosed to

a debtor's employer for purposes of initialing garnishment of the

disposable pay of that debtor under the provisions of 31 U.S.C. 3720D.

24. The names and addresses of delinquent debtors, along with the

amounts of their debts, may be published or otherwise publicly

disseminated subject to the provisions of 31 U.S.C. 3720E.

25. Any information in this system may be disclosed to a third-

party purchaser of debt more than 90 days delinquent and for which the

sale of such debt was conducted pursuant to the provisions of 31 U.S.C.

3711(i).

DISCLOSURE TO CONSUMER REPORTING AGENCIES:

Disclosures pursuant to 5 U.S.C. 552a(b)(12) may be made from this

record 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 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. 38 U.S.C. 5701(g) governs the release of names and addresses of

any person who is a present or former member of the Armed Forces, or

who is a dependent of such a person, to consumer reporting agencies

under certain circumstances. Routine uses, above, provide for

disclosure under those circumstances.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING

AND DISPOSING OF RECORDS IN THE SYSTEM:

STORAGE:

Records are maintained on magnetic tape and disk, microfilm,

microfiche, optical disk and paper documents. DMC does not routinely

maintain paper records of individual debtors in file folders with the

exception of correspondence, and replies thereto, from Congress, the

White House, members of the Cabinet and other similar sources. Paper

records related to accounts receivable may be maintained in individual

file folders located at VA regional offices, health care facilities,

HAC and other agencies referring debts to VA in its capacity as a

Government-wide cross-servicing debt collection center. Generally and

with the exception of claims against third-party insurers and certain

first-party medical debts, such papers maintained outside of DMC are

not used directly in the debt collection process unless they are first

forwarded to DMC. Information stored on magnetic media for most VA

benefit debts, including first-party medical, may be accessed through a

data telecommunications terminal system designated as CAROLS

(Centralized Accounts Receivable On-Line System). Most CAROLS terminals

are located in DMC; however, VA regional offices generally each have

one terminal for inquiry purposes. Records of debts

[[Page 16869]]

referred to VA in its capacity as a Government-wide cross servicing

debt collection center will be accessible only to employees of DMC.

Information stored on magnetic media and related to the All-Volunteer

Force Educational Assistance, education loan, miscellaneous home loan

or HAC debt collection programs may be accessed through personal

computers. Records provided to the Department of Housing and Urban

Development for inclusion in the Credit Alert Interactive Voice

Response System (CAIVRS) are maintained on magnetic media at the HUD

Data Processing Center in Lanham, Maryland. Records provided to the

Department of the Treasury for administrative offset or referral to a

designated debt collection center, private collection agency or the

Department of Justice are maintained on magnetic media at the Financial

Management Service Debt Collection Operations System in Hyattsville,

Maryland. For VA benefit debts other than miscellaneous home loan,

first-party medical and CHAMPVA, identifying information, the amount of

the debt are benefit source of the debt may be stored on magnetic media

in records that serve as the database for the VA Benefits Delivery

Network (BDN). The BDN is operated for the adjudication of VA claims

and the entry of certain fiscal transactions. The identifying

information, the amount of the debt and benefit source of the debt are

transmitted to the Centralized Accounts Receivable System (CARS) or a

personal computer local area network system before collection activity

commences. When a debtor is awarded gratuitous benefits under VA

programs, the BDN may operate to offset all or part of retroactive

funds awarded, if any, to reduce the balance of the indebtedness. The

Veterans Health Information Systems and Technology Architecture

(VISTA), through its various modules, is used to create and store

first-party medical charges and debts associated with the provision of

health care benefits. The identifying information about the person, the

amount of the debt and program source of the debt may be transmitted to

CARS as part of the collection process. When a person receives care

under the auspices of VA, a VA medical facility may collect all or part

of a charge or debt.

RETRIEVABILITY:

Paper documents, microfilm and microfiche related to VA claims and

debts are indexed by VA file number or date of receipt. Automated

records of VA claims and debts are indexed by VA claim number, Social

Security account number, name and loan account number in appropriate

circumstances. Paper documents, microfilm, microfiche and automated

records of pay administration debts and debts referred to VA for cross

servicing are indexed by Social Security account number or Taxpayer

Identification Number. Records in CAIVRS may only be retrieved by

Social Security number.

SAFEGUARDS:

1. Physical Security: (a) Access to working spaces and document

storage areas in DMC is restricted by cipher locks and to VA employees

on a need-to-know basis. Generally, document storage areas in VA

offices other than DMC are restricted to VA employees on a need-to-know

basis. VA offices are generally protected from outside access by the

Federal Protective Service or other security personnel. Strict control

measures are enforced to ensure that access to and disclosure from

documents, microfilm and microfiche are limited to a need-to-know

basis. (b) Access to CAROLS data telecommunications terminals is by

authorization controlled by the site security officer. The security

officer is assigned responsibility for privacy-security measures,

especially for review of violation logs, information logs and control

of password distribution. (c) Access to data processing centers is

generally restricted to center employees, custodial personnel, Federal

Protective Service and other security personnel. Access to computer

rooms is restricted to authorized operational personnel through

electronic locking devices. All other personnel gaining access to

computer rooms are escorted.

2. CAROLS and Personal Computer Local Area Network (LAN) Security:

(a) Usage of CAROLS and LAN terminal equipment is protected by password

access. Electronic keyboard locks are activated on security errors. (b)

At the data processing centers, identification of magnetic media

containing data is rigidly enforced using labeling techniques.

Automated storage media which are not in use are stored in tape

libraries which are secured in locked rooms. Access to programs is

controlled at three levels: programming, auditing and operations.

3. CAIVRS Security: Access to the HUD data processing center from

which CAIVRS is operated is generally restricted to center employees

and authorized contact employees. Access to computer rooms is

restricted to authorized operational personnel through locking devices.

All other persons gaining access to computer rooms are escorted.

Records in CAIVRS use Social Security numbers as identifiers.

Access to information files is restricted to authorized employees of

participating agencies and authorized employees of lenders who

participate in the agencies' programs. Access is controlled by agency

distribution of passwords. Information in the system may be accessed by

use of a touch-tone telephone by authorized agency and lender employees

on a need-to-know basis.

4. Department of the Treasury Security: Access to the system is on

a need-to-know basis, only, as authorized by the system manager.

Procedural and physical safeguards are utilized to include

accountability, receipt records and specialized communications

security. The data system has an internal mechanism to restrict access

to authorized officials. The building is patrolled by uniformed

security guards.

RETENTION AND DISPOSAL:

Microfilm and microfiche are retained in metal cabinets in DMC for

25 years. CARS records are retained until termination of debt

collection (payment in full, write off, compromise or waiver). All

other automated storage media are retained and disposed of in

accordance with disposition authorization approved by the Archivist of

the United States. DMC generally forwards all substantive paper

documents to VA regional offices, health care facilities and CHAMPVA

Center for storage in claims files, patient treatment files, imaging

systems or loan files. Those documents are retained and disposed of in

accordance with the appropriate system of records. Information provided

to HUD for CAIVRS is stored on magnetic tape. The tapes are returned to

VA for updating each month. HUD does not keep separate copies of the

tapes. Information provided to the Department of the Treasury for the

Treasury Offset Program is transferred electronically and stored by

Treasury on magnetic media.

SYSTEM MANAGER(S) AND ADDRESS:

Director, Debt Management Center (389/00), U.S. Department of

Veterans Affairs, Bishop Henry Whipple Federal Building, 1 Federal

Drive, Ft. Snelling, MN 55111.

NOTIFICATION PROCEDURE:

An individual who wishes to determine whether a record is being

maintained in this system under his or her name or other personal

identifier, or wants to determine the contents of such

[[Page 16870]]

record, should submit a written request to the system manager indicated

above.

RECORD ACCESS PROCEDURES:

Individuals seeking information regarding access to and contesting

of records maintained by VA may write, call or visit the nearest VA

regional office. Address locations are listed in VA Appendix 1.

CONTESTING RECORD PROCEDURES:

See record access procedures, above.

RECORD SOURCE CATEGORIES:

The records in this system are derived from five other systems of

records as set forth in ``Categories of records in the system'', above,

persons indebted to the United States by virtue of their participation

in programs administered by VA or other Government agencies, dependents

of those persons, fiduciaries for those persons (VA or court

appointed), other Federal agencies, State and local agencies, private

collection agencies, consumer reporting agencies, State, local and

county courts and clerks, other third parties and other VA records.

[FR Doc. 98-8868 Filed 4-3-98; 8:45 am]

BILLING CODE 8320-01-M