Final answer:
A System of Records Notice (SORN) is required under the Privacy Act when an organization stores Personally Identifiable Information (PII) in a system of records. If PII will not be stored in a system of records, a SORN may not be necessary. However, correct determination is crucial for compliance and protection of personal information.
Step-by-step explanation:
A System of Records Notice (SORN) is a formal public notice regarding the existence and character of a System of Records (SOR) that contains Personally Identifiable Information (PII). According to the Privacy Act of 1974 in the United States, a SORN is necessary to ensure transparency when an agency collects, maintains, retrieves, and uses PII through a system of records. However, if the organization determines that the PII will not be stored in a system of records, under certain conditions, a SORN may not be required. This typically applies when the PII is not retrieved by an identifier such as a name or social security number or is not designed to be a system of records. It is important for any entity that handles PII to make these determinations accurately to ensure compliance with privacy laws and to safeguard individuals' personal information.