# Privacy Act of 1974; System of Records
**AGENCY:**
Office of the Assistant Secretary for Financial Resources (ASFR), Department of Health and Human Services (HHS).
**ACTION:**
Notice of modified systems of records.
**SUMMARY:**
In accordance with the requirements of the Privacy Act of 1974, as amended, the Department of Health and Human Services (HHS) is modifying system of records 09-90-0024 “HHS Financial Management System Records” to update the legal authorities, clarify the purpose descriptions, add a new routine use, and revise an existing routine use. The system of records is maintained by HHS' Office of the Assistant Secretary for Financial Resources (ASFR) and covers records retrieved by personal identifier about individuals who receive or are entitled to a payment from HHS and individuals who pay or owe money to HHS.
**DATES:**
In accordance with 5 U.S.C. 552a(e)(4) and (11), this notice is effective March 12, 2026, with the exception of the new and revised routine uses, which will be effective April 13, 2026. Please submit any comments on this notice by April 13, 2026.
**ADDRESSES:**
The public should address written comments on this notice to Beth Kramer, HHS Privacy Act Officer, by email at *[email protected]* or by mail addressed to: HHS Privacy Act Officer, FOIA/Privacy Act Division, 200 Independence Ave. SW—Suite 729H, Washington, DC 20201.
**FOR FURTHER INFORMATION CONTACT:**
General questions about the modified system of records may be submitted to Beth Kramer, HHS Privacy Act Officer, by email at *[email protected]* or by mail addressed to: HHS Privacy Act Officer, FOIA/Privacy Act Division, 200 Independence Ave. SW—Suite 729H, Washington, DC 20201.
**SUPPLEMENTARY INFORMATION:**
System of records 09-90-0024 “HHS Financial Management System Records” is departmentwide; it covers any records about individual payees and payors of HHS that are used to manage HHS payment, collection, and accounting functions, unless covered by a more specific System of Records Notice (SORN). HHS is revising the SORN for system of records 09-90-0024, affecting the Authorities, Purpose(s), and Routine Uses sections of the SORN, as follows:
• HHS is updating the Authorities section to add Executive Order (E.O.) 14249, published at 90 FR 14011 (Mar. 28, 2025), titled “Protecting America's Bank Account Against Fraud, Waste, and Abuse,” and to remove 31 U.S.C. 3321 note (typed incorrectly as 31 U.S.C. 1321 note) which was repealed and moved to 31 U.S.C. 3354 in March 2020.
• HHS is revising the Purpose(s) section to make clear that SORN 09-90-0024 is the only HHS SORN that covers records used to determine award and payment eligibility through use of the Department of the Treasury's Do Not Pay Working System, although other SORNs may cover records used for other aspects of award and payment eligibility determinations, *i.e.,* aspects that do not involve using the Department of the Treasury's Do Not Pay Working System.
• HHS is revising routine use 1 in the Routine Uses section to use wording prescribed by the Office of Management and Budget (OMB) in OMB Memorandum M-25-32, issued August 20, 2025, titled “Preventing Improper Payments and Protecting Privacy Through Do Not Pay,” and to move a portion of what is currently in routine use 1 to a separate, new routine use 19. Revised routine use 1 will be worded as follows: “1. Records may be disclosed to the U.S. Department of the Treasury when disclosure of the information is relevant to review payment and award eligibility through the Do Not Pay Working System for the purposes of identifying, preventing, or recouping improper payments to an applicant for, or recipient of, Federal funds, including funds disbursed by a state (meaning a state of the United States, the District of Columbia, a territory or possession of the United States, or a federally recognized Indian tribe) in a state-administered, federally funded program.”
• HHS is adding a new routine use 19 which will be limited to authorizing disclosures to the U.S. Department of the Treasury (Treasury) for the purpose of effecting (meaning, disbursing or issuing) payments.
Because these constitute significant changes to the system of records, HHS provided a report on this modified system of records to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Accountability of the House of Representatives, and the OMB Office of Information and Regulatory Affairs in accordance with 5 U.S.C. 552a(r).
Dated: December 10, 2025.
Uma D. Yanamandra,
Director, Division of Strategic Planning, Oversight, & Coordination, Office of Systems, Policy & Oversight, Office of Finance.
**SYSTEM NAME AND NUMBER:**
HHS Financial Management System Records, 09-90-0024.
**AUTHORITY FOR MAINTENANCE OF THE SYSTEM:**
31 U.S.C. 3354, 3512, 3711, 3716, 3721; E.O.s 13520 and 14249. 31 U.S.C. 7701 mandates collection of Taxpayer Identification Number from persons applying for a loan under a federal loan program and from persons doing business with a federal agency.
**PURPOSE(S) OF THE SYSTEM:**
Relevant HHS personnel use the records on a need-to-know basis to process and track payments made and monies owed to or by individuals and HHS, and to ensure that payments by HHS are proper ( *i.e.,* comply with the Do Not Pay Initiative) and are based on an official commitment and obligation of government funds. When an individual is required to repay funds that have been advanced to him ( *e.g.,* as a loan or scholarship), records are used to establish a receivable record and to track repayment status. In the event of an overpayment to an individual, records are used to establish a receivable record for recovery of the amount claimed. Records of payments and uncollectible debts are also used to develop reports of taxable income to the Internal Revenue Service (IRS) and applicable state and local taxing officials. Records in this system of records that pertain to current (non-overdue), overdue, and delinquent federal debts are also used for debt management and collection purposes, as described in the SORN published for System of Records No. 09-90-40-0012 “HHS Debt Management and Collection Records.”
*Note:* This is the only HHS SORN that covers records HHS uses to determine award and payment eligibility through the Department of the Treasury's Do Not Pay Working System. Other HHS SORNs may cover other aspects of award and payment eligibility determinations, *i.e.,* aspects that do not involve using the Department of the Treasury's Do Not Pay Working System. For example, the SORNs that cover HHS suitability determination records include records used to vet fitness of HHS employees and contractor personnel to pass a background check or have access to classified information, and the SORN that covers HHS payroll records includes records HHS employees must complete to be paid, to comply with the direct deposit mandate in 31 U.S.C. 3332(a).
**ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:**
Routine use 1 is revised to read as follows:
1. Records may be disclosed to the U.S. Department of the Treasury when disclosure of the information is relevant to review payment and award eligibility through the Do Not Pay Working System for the purposes of identifying, preventing, or recouping improper payments to an applicant for, or recipient of, Federal funds, including funds disbursed by a state (meaning a state of the United Staes, the District of Columbia, a territory or possession of the United States, or a federally recognized Indian tribe) in a state-administered, federally funded program.
The two breach response-related routine uses that were revised or added in February 2018 are now numbered as routine uses 17 and 18.
New routine use 19 is added to read as follows:
19. Records may be disclosed to the U.S. Department of the Treasury for purposes of effecting (meaning, disbursing or issuing) payments.
**HISTORY:**
80 FR 67767 (Nov. 3, 2015), 83 FR 6591 (Feb. 14, 2018).