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<classification authority="sudocs">GA 1.13:AIMD-99-154</classification>
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 <subject>Y2K</subject>
 <subject>Future budget projections</subject>
 <subject>Reporting requirements</subject>
 <subject>Systems conversions</subject>
 <subject>Funds management</subject>
 <subject>Computer software verification and validation</subject>
 <subject>Cost analysis</subject>
 <subject>Appropriated funds</subject>
 <identifier>Y2K</identifier>
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<titleInfo>
 <title>Year 2000 Computing Crisis: Costs and Planned Use of</title>
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<abstract>Pursuant to a congressional request, GAO provided information on year
2000 costs and funding at 41 federal agencies and organizations,
focusing on the: (1) agency-reported year 2000 costs through fiscal year
(FY) 1998 and the agency processes used to track these costs; (2)
reported status of FY 1999 obligations for year 2000 activities; (3)
estimated year 2000 costs for FY 1999 and the planned uses of emergency
funds; and (4) estimated year 2000 costs for FY 2000.

GAO noted that: (1) the estimated year 2000 costs by the 24 major
federal agencies have more than tripled during the last 2 years to a
total of about $7.5 billion, according to the agencies&apos; February 1999
quarterly status reports to the Office of Management and Budget (OMB);
(2) the agencies reported that less than half of these costs had been
incurred prior to FY 1999; (3) however, these reported costs were
generally estimates and not actual costs; (4) of the 24 major agencies,
only 7 reported that they separately tracked actual costs of year 2000
activities and 5 reported that they tracked some actual costs and
estimated other costs; (5) the lack of tracking was also reflected in
the reported obligations for the first quarter of FY 1999; (6)
obligations of $68.4 million for year 2000 costs were reported by 24
organizations, including 2 organizations that reported only obligations
of emergency funds; (7) however, 8 organizations did not know what their
obligations of appropriated and emergency funds were for the quarter and
the remaining 9 organizations, including 5 major agencies, did not
provide obligation information; (8) the estimated year 2000 costs
reported by the 24 major agencies for FY 1999 have increased during the
last year from about $1.1 billion in February 1998 to $2.8 billion in
February 1999, according to their quarterly reports to OMB; (9)
beginning in November 1998, the agencies requested emergency year 2000
funds for some of these costs; (10) the civil agencies plan to use the
emergency funds for a variety of activities, including renovation,
validation, and implementation of systems, replacement of personal
computers and network hardware and software, outreach, and independent
verification and validation; (11) the Department of Defense plans to use
emergency funds for testing, operational evaluations, and contingency
planning; (12) according to their justification submissions,
organizations requested emergency funds because they identified new
requirements such as outreach activities and decisions to replace
personal computers and networks; had increased costs of ongoing year
2000 activities; or regular appropriations were not available for
planned year 2000 activities; (13) for FY 2000, the major agencies
estimate that year 2000 activities will cost about $1.1 billion,
according to their February 1999 quarterly reports to OMB; and (14) only
one major agency--the Department of Health and Human Services--reported
to GAO that it expected to have year 2000 costs beyond those projected
in its budget submission.</abstract>
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<identifier type="preferred citation">GAO/AIMD-99-154</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/AIMD-99-154; Year 2000 Computing Crisis: Costs and Planned Use of;
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<subject>
 <topic>Y2K</topic>
 <topic>Future budget projections</topic>
 <topic>Reporting requirements</topic>
 <topic>Systems conversions</topic>
 <topic>Funds management</topic>
 <topic>Computer software verification and validation</topic>
 <topic>Cost analysis</topic>
 <topic>Appropriated funds</topic>
 <topic>Y2K</topic>
</subject>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 277 (105th Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 105-277</identifier>
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