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<classification authority="sudocs">GA 1.13:T-AIMD-98-117</classification>
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 <subject>Systems conversions</subject>
 <subject>Strategic information systems planning</subject>
 <subject>Data integrity</subject>
 <subject>Risk management</subject>
 <subject>Housing programs</subject>
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 <title>Year 2000 Computing Crisis: Strong Leadership Needed to Avoid Disruption of Essential Services</title>
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<abstract>GAO discussed the nation&apos;s year 2000 computing crisis as well as the
year 2000 program being implemented at the Department of Housing and
Urban Development (HUD).&lt;p/&gt;GAO noted that: (1) the public faces a risk that critical services could
be severely disrupted by the year 2000 computing crisis; (2) the federal
government is extremely vulnerable to the year 2000 issue due to its
widespread dependence on computer systems to process financial
transactions, deliver vital public services, and carry out its
operations; (3) in addition, the year 2000 also could cause problems for
many of the facilities used by the federal government that were built or
renovated within the last 20 years that contain embedded computer
systems, to control, monitor, or assist in operations; (4) key economic
sectors that could be seriously impacted if their systems are not year
2000 compliant are: information and telecommunications, banking and
finance, health, safety, and emergency services, transportation,
utilities, and manufacturing and small business; (5) agencies have taken
longer to complete the awareness and assessment phases of their year
2000 programs than is recommended; (6) this leaves less time for
critical renovation, validation, and implementation phases; (7) the
Office of Management and Budget&apos;s (OMB) reports on agency progress do
not fully and accurately reflect the federal government&apos;s progress
toward achieving year 2000 compliance because not all agencies are
required to report and OMB&apos;s reporting requirements are incomplete; (8)
in January 1998, OMB asked agencies to describe their contingency
planning activities in their February 1998 quarterly reports; (9)
accordingly, in their 1998 quarterly reports, several agencies reported
that they planned to develop contingency plans only if they fall behind
schedule in completing their year 2000 fixes; (10) OMB&apos;s assessment of
the current status of federal year 2000 progress has been predominantly
based on agency reports that have not been consistently verified or
independently reviewed; (11) given the sweeping ramifications of the
year 2000 issues, other countries have set up mechanisms to solve the
year 2000 problem on a nationwide basis; (12) HUD officials recognize
the importance of ensuring that its systems are year 2000 compliant;
systems failures could interrupt the processing of applicants for
mortgage insurance, the payment of mortgage insurance claims, and the
payment of rental assistance; (13) HUD established a year 2000 project
office in June 1996; and (14) to better insure completion of work on
mission-critical systems, HUD officials have recently decided to halt
routine maintenance of five of its largest systems, beginning April 1 of
this year.</abstract>
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<note>Testimony</note>
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<subject>
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 <topic>Strategic information systems planning</topic>
 <topic>Data integrity</topic>
 <topic>Risk management</topic>
 <topic>Housing programs</topic>
 <topic>Information resources management</topic>
 <topic>HUD Year 2000 Program</topic>
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