Veterans Benefits Computer Systems

Unless timely, corrective action is taken, the Veterans Benefits Administration (VBA), like other federal agencies, could face widespread computer failures at the turn of the century because of the "Year 2000" problem. In many computer systems, the Year 2000 is undistinguishable from 1900. This could make veterans who are due to receive benefits appear ineligible. If this were to happen, issuance of benefits checks could be disrupted. VBA has tried to address this problem, but it can do more. First, the Year-2000 management office's structure and technical capabilities are inadequate. Second, key Year-2000 readiness assessment processes--determining the potential severity of the Year-2000 impact on VBA operations, inventorying its information systems, and developing contingency plans--have not been completed. Third, VBA lacks enough information on the costs or potential problems associated with its approach to making systems Year-2000 compliant. As a result, it cannot make informed choices about which systems must be funded to avoid disruptions in service and which can be deferred. Addressing these problems requires top management attention. Contributing to the challenges are the loss of key computer people, difficulties in obtaining information on whether interfaces and third-party products are Year-2000 compliant, and delays in upgrading systems at VBA data centers. GAO summarized this report in testimony before Congress; see: Veterans Benefits Computer Systems: Uninterrupted Delivery of Benefits Depends on Timely Correction of Year 2000 Problems, by Joel C. Willemssen, Director of Information Resources Management Issues, before the Subcommittee on Oversight and Investigations, House Committee on Veterans' Affairs. GAO/T-AIMD-97-114, June 26 (15 pages).

GAO noted that: (1) correcting the year-2000 problem is critical to VBA's mission of providing benefits and services to veterans and their dependents; (2) if not corrected, calculations based on incorrect dates could result in inaccurate and late payment of benefits to veterans, prompting financial stress to millions across the country; (3) VBA has acted to address the problem, but can do more; (4) the year-2000 management office structure and technical capabilities are insufficient; (5) key year-2000 readiness assessment processes--determining the potential severity of the year-2000 impact on VBA's operations, inventorying its information systems and their components, and developing contingency plans--have not been completed; (6) both VBA's initial and revised strategies are risky in that without sufficient information on the costs or potential problems associated with its approach to making systems year-2000 compliant, it cannot make informed choices as to which systems must be funded to avoid disruptions in service, versus which can be deferred; (7) deficiencies in these three areas add risk to an already difficult challenge; (8) addressing these problems will require close and continual top management attention and leadership; (9) contributing to the challenge facing VBA are the loss of key computer personnel, difficulties in obtaining necessary information from external sources on whether interfaces and third-party products are year-2000 compliant, and delays in upgrading systems at VBA data centers; (10) the issue of whether third-party products are year-2000 compliant is being faced by other federal agencies as well; (11) the Department of Veterans Affairs' (VA) chief information officer told GAO that VBA will: (a) revise its year-2000 strategy to focus on converting the existing noncompliant benefits payment systems rather than replacing them; and (b) acquire contractual support to assist in managing the year-2000 effort and in making necessary changes; (12) these are positive developments, and GAO looks forward to seeing VBA's plans to implement these steps; and (13) the implementation of these recommendations will put VBA in a better position to avoid these types of problems in the future.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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