New GAO y2k reports

[Steve Schear <schear@lvdi.net>]

 The following General Accounting Reports recently became available:

-  Year 2000 Computing Crisis: National Credit Union
Administration's Efforts to Ensure Credit Union Systems Are Year
2000 Compliant. T-AIMD-98-20. 14 pp. October 22, 1997. 
http://www.gao.gov/new.items/ai98020t.pdf

NCUA admits that they are in deep do-do.

"... (1) current agency efforts to determine industrywide compliance are
behind the generally accepted schedule for achieving Year 2000
compliance, and, consequently, NCUA does not yet have a complete picture
of where credit unions stand individually or as an industry, (2) the agency
lacks a formal, documented contingency plan in case credit unions do not
become compliant in time or have other problems, (3) credit union
internal auditors may not be thoroughly addressing Year 2000 issues as
part of their work, and (4) NCUA does not have enough technical capability
to conduct Year 2000 and other examinations in complex systems areas."

"... the problem could lead to numerous problems when calculations
requiring the use of dates are performed, such as calculating interest,
calculating truth-in-lending or truth-in-savings disclosures, and
determining amortization schedules. Moreover, automated teller machines
may also assume that all bank cards are expired due to this problem. In
addition, errors caused by Year 2000 miscalculations may expose
institutions and data centers to financial liability and risk of damage to
customer confidence. Other systems important to the day-to-day business
of credit unions may be affected as well. For example, telephone systems
could shut down as can vaults, security and alarm systems, elevators, and
fax machines."

-  Social Security Administration: Significant Progress Made In Year
2000 Effort, But Key Risks Remain. AIMD-98-6. 17 pp. plus 2
appendices (6 pp.) October 22, 1997. 
http://www.gao.gov/new.items/ai98006.pdf

The SSA reports that about 80% of its core code has been converted and tested and is confident of completion by January 1999, but that significant y2k exposure remains due to possible contamination from non-compliant sources of information (e.g., state disability and other federal agencies).

--Steve