	Progress in Addressing Year 2000 Continues at Slow Pace

As our chart illustrates, since May 1997 OMB and the government’s 24 largest departments and agencies have reported slow progress in achieving Year 2000 compliance of their mission-critical information systems. In May 1997, OMB reported that about 21 percent of the government’s mission-critical systems (1,598 of 7,649) were Year 2000 compliant. A year later—as of last month—these departments and agencies reported a total of 2,914 systems as compliant—about 40 percent of the 7,336 mission-critical systems in their current inventories. Also of concern is that OMB, the President’s Council on Year 2000 Conversion, and the Congress lack sufficient information with which to judge the progress of systems to be replaced. Agencies will also need a significant amount of time for essential end-to-end testing of multiple systems that have individually been deemed Year 2000 compliant. In response to our recommendation, the Chair stated that agencies are currently developing such plans and obtaining independent verification and validation for their systems. For example, the report submitted by the U.S. Accordingly, we recommended that the Chair require agencies to develop contingency plans for all critical core business processes. On April 30 he stated that the Council would be working with several agencies, including the Office of Personnel Management (OPM), to examine options for ensuring an adequate number of qualified people to perform Year 2000 work. In summary, as the amount of time to the turn of the century shortens, the magnitude of what must be accomplished becomes more daunting. Greater leadership and coordination of disparate efforts is essential if government programs are to meet the needs of the public 19 months from now. The Conversion Council must play a central role in ensuring that agency action not only stays on track, but accelerates significantly.
Why GAO Did This Study

GAO discussed: (1) the results of the most recent reports submitted to the Office of Management and Budget (OMB) on the slow progress made by the federal government in achieving year 2000 compliance; and (2) what needs to be done now to minimize disruptions to critical services.

What GAO Found

GAO noted that: (1) in May 1997, OMB reported that about 21 percent of the government's mission-critical systems were year 2000 compliant; (2) a year later, these departments and agencies reported a total of 2,914 systems as compliant--about 40 percent of the 7,336 mission-critical systems in their current inventories; (3) OMB, the President's Council on Year 2000 Conversion, and Congress lack sufficient information with which to judge the progress of systems to be replaced; (4) agencies will also need a significant amount of time for essential end-to-end testing of multiple systems that have individually been deemed year 2000 compliant; (5) the Council implemented a number of GAO's recommendations for minimizing year 2000 risks, including: (a) requiring federal agencies to establish priorities for their mission-critical business process; (b) requiring agencies to develop plans for the testing and independent verification and validation of their systems; (c) requiring agencies to provide information on their year 2000 progress; (d) issuing OMB guidance on the development of business continuity and contingency plans; and (e) examining various options for ensuring that an adequate number of qualified people are hired to perform year 2000 work; (6) as the amount of time to the turn of the century shortens, the magnitude of what must be accomplished becomes more daunting; (7) greater leadership and coordination of disparate efforts is essential if government programs are to meet the needs of the public 19 months from now; and (8) the Conversion Council must play a central role in ensuring that agency action not only stays on track, but accelerates significantly.