Y2K: Auditor General of Canada

[Bob Olsen <bobolsen@tao.ca>]

http://www.oag-bvg.gc.ca/domino/media.nsf/html/98pr20_e.html

    Office of the
    Auditor General of Canada
    and the Commissioner of the
    Environment and Sustainable Development



For release after tabling of the December 1998 Report
(Expected at 2:00 p.m. on 1 December 1998)

The Millennium Bug:
Many Essential Government Services Still Exposed to Year 2000 Threat

Chapter 20

Ottawa - Many government systems supporting essential programs and
services are still at risk of not being ready to face the Year 2000
problem, also known as the millennium bug, according to Auditor
General Denis Desautels in his Report tabled in the House of Commons
today.

This audit found that the pace of Year 2000 work has accelerated since
the last audit was reported in October 1997. However, as of June 1998,
the government's own survey results showed that only four departments
and agencies, responsible for 7 of the 48 mission-critical functions,
were rated as having made "good" progress.

"I am very concerned that many essential government services may be
interrupted at the start of 2000," said the Auditor General. "Work on
the systems supporting these services is falling behind in an already
tight schedule."

As of June 1998, several key systems supporting three of six
government services examined in the report remained exposed to the
Year 2000 threat. The three services are: inspection for food safety
and plant and animal health; law enforcement; and the delivery of
income security programs to Canadians.

The Report recommends that in addition to keeping Year 2000 as a top
priority, the government further accelerate its pace, including
strategic intervention by the Treasury Board Secretariat as
appropriate; that contingency plans be developed and tested prior to
2000; and that reporting of progress information to Parliament be
improved.

"There is no room for complacency," said Mr. Desautels. "There may
also come a time when Treasury Board Secretariat needs to jump in and
make some tough decisions to make sure that essential programs and
services continue for program beneficiaries and Canadians at large."

"Year 2000" refers to the problem caused by a past computer practice
of coding the year as two digits rather than four.

                                   - 30 -

The chapter entitled "Preparedness for Year 2000: Government-Wide
Mission-Critical Systems" is available on the Office of the Auditor
General Web site: www.oag-bvg.gc.ca. It is also featured in a video
entitled "Selected Highlights", which can be obtained from the OAG
Distribution Centre at (613) 952-0213, extension 5000 or by fax at
(613) 952-0696.

For more information:

Johanne McDuff, Office of the Auditor General of Canada
Tel: (613) 952-0213, ext. 6292
Email: mcduffjo@oag-bvg.gc.ca
..............................



1998 Report of the Auditor General of Canada 

http://www.oag-bvg.gc.ca/domino/reports.nsf/html/98menu_e.html


Preparedness for Year 2000

Government-Wide Mission-Critical Systems

http://www.oag-bvg.gc.ca/domino/reports.nsf/html/9820me.html
-------------------------------------------------------------

Main Points

20.1 The Year 2000 problem was caused by the past programming practice
of coding the year with two digits rather than four. On 1 January
2000, certain computer applications and devices could fail or
malfunction. In 1997, we reported that the government's rate of
progress in preparing for Year 2000 had generally been slow; if it
were to continue at the same rate, government systems probably would
not be ready in time.

20.2 In 1998, we audited some key computer systems and devices that
support six mission-critical functions in government. The functions
were inspection services to contribute to food safety; emergency
assistance and support; income security services; First Nations
transfer payments and trust funds; border crossing services for
commercial goods; and law enforcement services. We concluded that as
of 30 June 1998, several key systems supporting three of those
functions remained at risk of not becoming fully compliant before
2000.

20.3 We observed that the government has accelerated the pace of its
efforts since our 1997 audit and has made progress in various areas,
including:

   * ranking Year 2000 as a top priority;
   * monitoring government-wide progress of systems and devices that
     support mission-critical functions in government;
   * advancing certain common horizontal initiatives; and
   * engaging the concern of ministers and advising them of the urgency
     of Year 2000 efforts.

20.4 However, our review of the 30 June 1998 survey results summarized
by the Treasury Board Secretariat showed "good" progress in only four
departments, accounting for 7 out of 48 government-wide
mission-critical functions. Nine departments and agencies responsible
for 18 mission-critical functions had a score of 50 percent or less
for completion of the work needed to make the systems supporting the
functions compliant.

20.5 We concluded that as of June 1998, various government systems
supporting mission-critical functions remained at risk. With 18 months
left, we are very concerned that some essential government services
may be interrupted at the start of 2000.

20.6 To ensure that mission-critical functions will continue, we
recommend that the focus on Year 2000 be sustained, that the Treasury
Board Secretariat consider strategic intervention as appropriate, and
that contingency plans be prepared and tested for those systems that
remain at risk. We also recommend that further action be taken to
advance common horizontal initiatives and that reporting of Year 2000
information to Parliament be improved.

   .............................................
   Bob Olsen, Toronto            bobolsen@tao.ca
   .............................................