2294 regulations

Chapter 6 - Credit Worthiness
Questions

Page

6.1
6.2
6.3
6.3.1
6.3.2
6.4
6.5
6.6
6.7
6.8

Are agencies required to assess the credit worthiness of all new travel card applicants prior to issuing a card? 18
Why is it important to assess the credit worthiness ofa new travel card applicant?
18
What steps are required before issuing a travel card to a first-lime applicant?
19
Obtain credit score
.19
First time travel card applicants with a credit score less than 660
19
What process is required if obtaining a credit score is not possible?
19
Are credit worthiness assessments required for new centrally-billed travel account applicants?
20
May agencies issue individually-billed travel cards to foreign nationals?
When are re-evaluations of credit worthiness required?
20
What options do agencies have to offer applicants denied a charge card due to the outcome of their credit
worthiness evaluation? ...
, ...
20
6.9
What are the relevant recordkeeping requirements for the credit worthiness evaluation process?
20
6.10 Is there any circwnstance in which credit worthiness restrictions may be temporarily lifted?
20
6.11 Is there a Federal source for obtaining charge card applicant credit scores?
21
6.12 Mayan agency contract with their respective bank card issuer to manage the credit worthiness assessments

on its behalf?

,

"

.21

6.1
Are agencies required to assess the credit worthiness of all new travel card
applicants prior to issuing a card?
Yes, pursuant to Section 846 of the Consolidated Appropriations Act, 2006 (P.L. 109-115), each
agency must assess the credit worthiness of all new travel card applicants prior to issuing a card.
Credit worthiness assessments are an important internal control in Federal travel card programs.
Current cardholders are not subject to the requirements ofthis chapter.
Credit worthiness evaluations for new purchase card applicants are no longer legislatively
mandated due to the passage of the 2006 Consolidated Appropriations Act However, agency
officials and charge card managers may continue to require these evaluations at their discretion.
At a minimum, they must remain mindful ofthe risks involved with charge card issuance, and
continue to consider pertinent factors before issuing new purchase cards.
Further, a current cardholder who leaves government service and then returns would be
considered a new applicant for the purposes of credit worthiness requirements. However, a
hiring agency may, but is not required to, assess the credit worthiness of a current cardholder
who transfers from another agency.
6.2

Why is it important to assess the credit worthiness of a travel card applicant?

Credit worthiness assessments are an important in,¥Wal control to ensure that charge cardholders
are financially responsible.

Appendix B
OMB Circular, A-In
.,
(Revised February 2006)
Page 18

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6.3

What steps are required before issuing a travel card to a first-time applicant?

Consistent with the requirements of this Chapter, all agencies must perform a credit worthiness
evaluation prior to issuing a travel card to first time applicants.
6.3.1 Obtain credit score.
In order for a fIrst time applicant to receive a card to which standard agency restrictions
apply, a credit score must be obtained for that employee credit score obtained must be 660 or
higher. (Examples of credits scores acceptable are FICO, an acronym for Fair Isaac
Corporation, a Beacon score, etc.) The numerical score indicates the credit risk level
associated with a specific credit applicant. Credit scores obtained during any other process
of background clearance that are less than 12 months old may also be used.
6.3.2 First time travel card aPDlicants with a credit score less than 660.
For fIrst time travel card applicants with a credit score ofless than 660, the agency may issue
a card, but more stringent restrictions win apply. In implementing such additional
restrictions, the agency will take one or more of the following actions:

.

Reduce the overall dollar limit for the card;

.
.

Reduce the limit on individual transaction amounts;

.
.

Issue a pre-paid card that automatically restricts dollar amount and transaction types;

.
.
6.4

Limit (or further limit, if applicable) the types of transactions allowed;

Limit (or further limit, if applicable) the dollar amount of transactions that can be applied
to the card within a particular time period;
Limit (or further limit, if applicable) the length of time a card remains active, such as for
the length of time in travel status only; andlor
Restrict (or further restrict, if applicable) use at ATMs.

What process is required if obtaining a credit score is not possible?

If obtaining a credit score is not possible (e.g., the applicant refuses to provide consent or does
not have a credit history), an agency may still issue a "restricted" (as defIned in Section 6.3.2
above) travel card to a rust time applicant, but the agency must conduct an alternative credit
worthiness assessment to determine whether the individual possesses a satisfactory credit history.
SpecifIcally, the agency must review the proposed applicant's most recent Standard Form (SF)
8SP, Section 22, Questionnaire for Public Trust Positions, or SF 86, Section 27, or use a similar
vehicle containing the same type of questions as in the forms and sections noted and use the
information provided to assess credit worthiness. In either case the vehicle used must not be
older than one year.
Appendix B
OMll Circular A-IZ3
(Revised February 2006)
Page 19

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6.5. May agencies issue individually-billed

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travel cards to foreign nationals?

No, foreign nationals are not eligible to hold individuaUy-biDed travel cards issued by Federal
agencies, as they are not Federal employees. However, centrally-billed travel accounts may be
used to pay for their travel expenses when required by and approved by the agency.

6.6 Are credit worthiness assessments required for new centrally-billed travel account
applicants?
No. Because centrally-billed travel accounts and purchase card accounts share common
characteristics in terms of structure, purpose and risk, credit worthiness assessments are not
required for centrally-billed travel accounts, and are to be treated in the same manner as purchase
card accounts for the purpose of this Chapter of the Guidance.
6.7

When are re-evaluations of credit worthiness required?

A credit worthiness assessment must be conducted for restricted cardholders before the
cardholder is issued a renewed card. The re-evaluation of credit worthiness may be
conducted by obtaining a credit score as described in Sections 6.3 of this Chapter, or at the
agency's discretion, may be conducted by reviewing the restricted cardholder's card usage during
the initial period of card issuance.

6.8
What options do agencies have to otTerapplicants denied a charge card due to the
outcome of their credit worthiness evaluation?
Applicants who were denied a charge card due to the outcome of their creditworthiness
evaluations can be re-evaluated at a time deemed most appropriate by the agency. The
applicant's credit worthiness will again be evaluated based on the requirements of this Chapter.

6.9
Are there separate recordkeeping requirements for the credit worthiness evaluation
process?
No, there are not separate or additional recordkeeping requirements from requirements that are
currently in effect for the government-wide travel card program. Use of agency existing systems
of record is adequate.
6.10 Is there any circumstance in which credit worthiness restrictions may be
temporarily lifted?
Yes. The credit worthiness restrictions may be temporarily lifted at the discretion of a
Department or Agency head, in order to ensure the safety of American citizens and/or property
(e.g., during times of national emergency, contingency, peacekeeping, or humanitarian
missions).

Appendix B
OMB CiIcular A-I23
(Revised Febmary 2006)
Page 20

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6.11

Is there a Federal source for obtaining charge card applicant credit scores?

Yes. Agencies may, but are not required to, contact the Office of Personnel Management
(OPM), Center for Federal Investigative Services (CFIS), which has developed a reimbursable
process to provide credit scores, and to transmit them to designated agency personneL For
further information, agencies can contact OPM's Program Manager/Customer Service Group at
202-606-1042.
6.12 Mayan agency contract with their respective bank card issuer to manage the credit
worthiness assessments on its behalf?
Yes, agencies may negotiate this requirement into their respective task orders, as long as the
bank agrees to comply with the guidelines outlined in this Guidance. including the recordkeeping
requirements of the Privacy Act.
In addition, credit scores are also available through GSA's Financial and Business Solutions
(FABS) Schedule contractors. Information in this Schedule can be found at
htrg.:i!www.£sa.£ovrfman:::" t.

Appendix B
OMB Circular A-I 23
(Revised February 2006)
Page 21

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PUBLIC LAW 109-115-NOV.

30,2005

119 STAT. 2507

(b) Notwithstanding section 813 of this Act, the adjustment
in rates of basic pay for the statutory pay systems that take place
in fiscal year 2006 under sections 5344 and 5348 of title 5. United
States Code, shall be no less than the percentage in paragraph
(a) as employees in the same location whose rates of basic pay
are adjusted pursuant to the statutory pay systems under section
5303 and 5304 of title 5, United States Code. Prevailing rate
employees at locations where there are no employees whose pay
is increased pursuant to sections 5303 and 5304 of title 5 and
prevailing rate employees described in section 5343(a)(5) of title
5 shall be considered to be located in the pay locality designated
as "Rest of US" pursuant to section 5304 of title 5 for purposes
of this paragraph.
(c) Funds used to carry out this section shall be paid from
appropriations, which are made to each applicable department or
agency for salaries and expenses for fiscal year 2006.
SEC. 844. Unless otherwise authorized by existing law, none
of the funds provided in this Act or any other Act may be used
by an executive branch agency to produce any prepackaged news
story intended for broadcast or distribution in the United States,
unless the story includes a clear notification within the text or
audio of the prepackaged news story that the prepackaged news
story was prepared or funded by that executive branch agency.
SEC. 845. None of the funds made available in this Act may
be used in contravention of section 552a of title 5, United States
Code (popularly known as the Privacy Act) or of section 552.224
of title 48 of the Code of Federal Regulations.
SEC. 846. Each executive department and agency shall evaluate
the creditworthiness of an individual before issuing the individual
a government travel charge card. The department or agency may
not issue a government travel charge card to an individual that
either lacks a credit history or is found to have an unsatisfactory
credit history as a result of this evaluation: Provided, That this
restriction shall not preclude issuance of a restricted-use charge,
debit, or stored value card made in accordance with agency procedures to: (1) an individual with an unsatisfactory credit history
where such card is used to pay travel expenses and the agency
determines there is no suitable alternative payment mechanism
available before issuing the card; or (2) an individual who lacks
a credit history. Each executive department and agency shall establish guidelines and procedures for disciplinary actions to be taken
against agency personnel for improper, fraudulent, or abusive use
of government charge cards, which shall include appropriate disciplinary actions for use of charge cards for purposes, and at
establishments, that are inconsistent with the official business of
the Department or agency or with applicable standards of conduct.
SEC. 847. Except as expressly provided otherwise, any reference
to "this Act" contained in this division shall be treated as referring
only to the provisions of this division.
This division may be cited as the "Transportation, Treasury,
Housing and Urban Development, the Judiciary, and Independent
Agencies Appropriations Act, 2006".

--

5 use 5701 note.

Guidelines.
Procedures.

1 use 1 note.

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proposed

amendment

sought.

RECORD SOURCE CATEGORIES:
Small business

concerns

the 8(a) Business

who have applied

Development

to or are participants

in

program.

SBA 31
SYSTEM

NAME:

TEMPORARY

DISASTER

EMPLOYEES--SBA

31

SYSTEM LOCATION:
Office of Disaster
Appendix

Assistance

(ODA): HQ and Field

A.

CATEGORIES
Employees

OF INDIVIDUALS

COVERED BY THE SYSTEM:

who have been temporarily

CATEGORIES

OF RECORDS

employed

by the ODA.

IN THE SYSTEM INCLUDES:

Name, address,

telephone

Disaster

job series, grade and title, dates

Area,

reason for termination,
supervisor's
Standards
concerning

number, Social Security

supervisor's

evaluation.

of Conduct
official

investigations

15 D.S.C.

§ 634 (b) (6), 44 D.S.C.

of the Agency's

and disciplinary

if any,

actions

taken.

OF THE SYSTEM:
§ 101.

ROUTINE USES OF RECORDS MAINTAINED

IN THE SYSTEM,

OF USERS AND THE PURPOSES

BE USED, DISCLOSED,

(SSN) ,

of emploYment,

(13 CFR Part 105) and information,

FOR MAINTENANCE

CATEGORIES

Number

name and job and summary of

Possible violations

AUTHORITY

OF SUCH USES,

INCLUDING
THESE RECORDS MAY

OR REFERRED:

a. To verify previous

emploYment

with SBA when a former employee

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locations.

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is considered for reemployment.
b. To locate
language

current or former employees
capabilities

c. To a Congressional
office

d. To Agency

assist

on the individual's

are no greater

volunteers,

contractors

order to perform

record,

behalf;

grantees,

experts

of a service related

this activity.

Recipients

and
to

to this

of Justice

to litigation

in

of these

to comply with the requirements

of the Privacy Act of 1974, as amended,
e. To the Department

when the

the Member's

and who need access to the records

shall be required

is a party

situations.

who have been engaged by the Agency

system of records

skills or

than the individual's.

interns,

in the performance

records

in specific

office from an individual's

is inquiring

access rights

needed

with special

5 D.S.C.

§ 552a.

(DOJ) when any of the following

or has an interest

in such litigation,

and the use of such records by the DOJ is deemed by the agency
to be relevant
however,

and necessary

to the litigation,

provided,

that in each case, the agency determines

the disclosure

of the records

to the DOJ is a use of the information

in the records

that is compatible

the records

with the purpose

contained

for which

were collected:

(1) The agency,

or any component

thereof;

(2) Any employee

of the agency

in his or her official

of the agency

in his or her individual

capacity;

(3) Any employee
capacity

where the DOJ has agreed

to represent

the

160

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employee;

or

(4) The United

States Government,

determines

that litigation

where

the agency

is likely to affect

the

agency or any of its components.
f. In a proceeding
dispute

before

resolution

a court, or adjudicative

body before which the agency

body, or a
is authorized

to appear or before which any of the following is a party
to litigation
however,
records

or has an interest

in litigation,

that the agency determines
is relevant

and necessary

that the use of such

to the litigation,

that, in each case, the agency determines
of the records

compatible

contained

with the purpose

and

that disclosure

to a court or other adjudicative

a use of the information

provided,

body is

in the records

for which the records

that is
were

collected:

(1) The agency,

or any component

(2) Any employee

thereof;

of the agency

in his or her official

of the agency

in his or her individual

capacity;

(3) Any employee
capacity

where the DOJ has agreed to represent

employee;
(4) The United
determines

the

or
States Government,
that litigation

where the agency

is likely to affect

the

agency or any of its components.
POLICIES,

PRACTICES,

RETRIEVAL,

ACCESS,

RETENTION

RECORDS:

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AND DISPOSAL

OF

STORAGE:
Paper and electronic

files.

RETRIEVAL:

By name and/or

SSN.

SAFEGUARDS:

Access

and use limited

computers

are protected

RETENTION

AND DISPOSAL:

In accordance

Schedule

SYSTEM MANAGER(S)

Records

need to know;

and user identification

codes.

and Archives

Administration

Assistance.

See Appendix

1.10.

AND ADDRESS:

Administrator

NOTIFICATION

by password

with National

General Records

Assistant

to persons with official

for Disaster

A.

PROCEDURE:

An individual

may submit a record inquiry

the Systems Manager

in person

or in writing

to

or PA Officer.

ACCESS PROCEDURES:
Systems Manager
CONTESTING
Notify

or PA Officer will determine

procedures.

PROCEDURES:

the official

it and the proposed

listed above, state the reason(s)
amendment

for contesting

sought.

SOURCE CATEGORIES:
Disaster

Area Offices.

SBA 32
SYSTEM

NAME:

TORT CLAIMS--SBA

32

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