Progress Has Been Made

As of March 31, 1999, the Department of Education reported that all of its  14 mission-critical systems—including the 11 student financial aid delivery  systems—were Y2K compliant and in operation. Our review of three of  these systems found adequate test documentation. However, the  department has not yet closed out four of its systems as completing the  Y2K compliance process in accordance with Education-specific guidance;  other systems issues also remain outstanding, although they are generally  considered low-risk. Testing of data exchanges and end-to-end testing of  key business processes are continuing according to the department's  schedule, as is the refinement of business continuity and contingency  plans. Future Tasks Facing Education

While much of the work on renovating and validating mission-critical  systems has been completed, and the risk of student financial aid delivery  system failures has been significantly reduced, the department needs to  continue making Y2K a top priority. Accordingly, it needs to focus  particular attention on the following activities. Expeditiously resolving open issues delaying certification of the  remaining four mission-critical systems still pending formal closeout. Continue resolving and tracking open issues, including environmental or  functional changes made to existing systems; in doing so, ensure the  involvement of IV&V contractors. Ensuring that the new Recipient Financial Management System has  been adequately tested for Y2K compliance as each phase is  implemented between now and August. Continue end-to-end testing of critical business processes involving  Education's internal systems and its external data exchange partners. Ensure that results are monitored for completeness and any problems  that may arise are addressed promptly—including concerns raised by  the IV&V contractors. Continue outreach activities with schools, guaranty agencies, and other  participants in the student financial aid community to share successes  and lessons learned to help further reduce the likelihood of Y2K failures. Continue refining and testing the student financial aid business  continuity and contingency plans, encouraging the involvement of  postsecondary institutions, guaranty agencies, and other external  trading partners. In summary, Mr. Chairman, the Department of Education has made  progress toward making its programs and supporting systems Year 2000  compliant.
Why GAO Did This Study

Pursuant to a congressional request, GAO discussed the Department of Education's efforts to ensure that its computer systems supporting critical student financial aid activities will be able to process information reliably through the turn of the century, focusing on: (1) the progress Education has made to date in making its information systems year 2000 compliant; and (2) the future tasks facing the department.

What GAO Found

GAO noted that: (1) as of March 31, 1999, Education reported that all of its 14 mission-critical systems--including the 11 student financial aid delivery systems--were year 2000 compliant and in operation; (2) GAO's review of three of these systems found adequate test documentation; (3) however, the department has not yet closed out four of its systems as completing the year 2000 compliance process in accordance with Education-specific guidance; other systems issues also remain outstanding, although they are generally considered low-risk; (4) testing of data exchanges and end-to-end testing of key business processes are continuing according to the department's schedule, as is the refinement of business continuity and contingency plans; (5) while much of the work on renovating and validating mission-critical systems has been completed, and the risk of student financial aid delivery system failures has been significantly reduced, the department needs to continue making year 2000 a top priority; and (6) accordingly, it needs to focus particular attention on the following activities: (a) expeditiously resolving open issues delaying certification of the remaining four mission-critical systems still pending formal closeout; (b) continue resolving and tracking open issues, including environmental or functional changes made to existing systems; in doing so, ensure the involvement of independent verification and validation (IV&V) contractors; (c) ensuring that the new Recipient Financial Management System has been adequately tested for year 2000 compliance as each phase is implemented between now and August; (d) continue end-to-end testing of critical business processes involving Education's internal systems and its external data exchange partners; (e) ensure that results are monitored for completeness and any problems that may arise are addressed promptly--including concerns raised by the IV&V contractors; (f) continue outreach activities with schools, guaranty agencies, and other participants in the student financial aid community to share successes and lessons learned to help further reduce the likelihood of year 2000 failures; and (g) continue refining and testing the student financial aid business continuity and contingency plans, encouraging the involvement of post secondary institutions, guaranty agencies, and other external trading partners.