Year 2000 Computing Challenge

The states are responsible for delivering a host of critical federal services, from food stamps to unemployment benefits, to millions of people. Much work remains to be done at the state level to ensure that the Year 2000 computer problem does not disrupt these services. At particular risk are several states that do not plan to have their human services systems Year 2000 compliant until the last quarter of this year. Federal agencies are working with their state partners to obtain readiness information and evaluate and provide assistance in key activities, such as business continuity and contingency planning. Yet some state completion dates are so close to January 1, 2000, that the risk of disruption to their programs is substantially increased, especially if schedule delays or unexpected problems arise. Moreover, data exchanges have yet to be tested for the Department of Health and Human Services' system that is critical to making federal payments to states. With less than six months to go until the turn of the century, testing of these data exchanges and other essential federal and state exchanges must be completed quickly.

GAO noted that: (1) much work remains at the state level to ensure that major services are not disrupted; (2) at particular risk are several states that do not plan to have their systems that support state-administered federal human services programs year 2000 compliant until the last quarter of this year; (3) federal agencies are working with their state partners to obtain readiness information and evaluate and provide assistance in key activities such as business continuity and contingency planning; (4) nevertheless, some state completion dates are so close to the turn of the century that the risk of disruption to their programs is substantially increased, especially if schedule delays or unexpected problems arise; (5) further, data exchanges for the HHS payment system, critical to making federal payments to states, have not yet been tested; and (6) with less than 6 months to go until the turn of the century, testing of these data exchanges and other essential federal/state exchanges must be completed expeditiously.