Final Y2K report card is cautiously optimistic

Federal agencies Monday received a B+ average on Y2K readiness, in the final report card from the House's year 2000 watchdog before Jan. 1. The administration began the year with an average of C+.

While the high mark is encouraging, Rep. Stephen Horn, R-Calif., announced that 18 key federal programs-affecting some of the nation's neediest citizens-are still not Y2K compliant. Only 40 days remain until Jan. 1.

"We have come a long way since we began examining this enormous technological challenge four years ago," said Horn. "Twelve departments and agencies report that their mission-critical systems are 100 percent ready."

This is the tenth and final quarterly Y2K report card issued by Horn's panel, the House Government Reform Subcommittee on Government Management, Information and Technology. Of the 24 agencies graded, 15 received A or A- grades and only one received a D. No F's were issued by the subcommittee.

Two agencies improved significantly since last quarter. The Agriculture Department's grade rose from a C- to an A-. The Agency for International Development rose from a D to a B.

The lowest grade of the bunch was given to the Justice Department. Its grade dropped from a C- to a D this quarter. The Defense Department was able to raise its grade from a D to a C+.

The Treasury Department received a C, and Horn said the subcommittee was still concerned about the readiness of the Internal Revenue Service. Horn said the IRS is still taking inventory of computers at various field offices-usually the first step in fixing the Y2K problem.

Agencies reported 99 percent of their mission-critical systems were Y2K-compliant as of Nov. 15, a 4 percent increase since Horn last issued grades in September.

While the federal government overall managed to buckle down and improve its Y2K readiness, 18 individual programs with broad impact on Americans were deemed non-compliant. Many of the trouble spots are in state-administered assistance programs for needy Americans.

• Child nutrition programs (Agriculture Department)
• Food safety inspection (Agriculture Department)
• Food stamps (Agriculture Department)
• Special Supplemental Nutrition Program for Women, Infants and Children (Agriculture Department)
• Student aid (Education Department)
• Child care (Health and Human Services Department)
• Child support enforcement (Health and Human Services Department)
• Child welfare (Health and Human Services Department)
• Indian health services (Health and Human Services Department)
• Low Income Home Energy Assistance Program (Health and Human Services Department)
• Medicaid (Health and Human Services Department)
• Medicare (Health and Human Services Department)
• Temporary Assistance for Needy Families (Health and Human Services Department)
• Public housing (Housing and Urban Development Department)
• Unemployment insurance (Labor Department)
• Retired rail worker benefits (Railroad Retirement Board)
• Air traffic control system (Transportation Department)
• Maritime safety program (Transportation Department)

"For some Americans, those are the crucial federal programs that are, in some cases, inextricably linked to their means for survival," said Rep. Constance Morella, R-Md.

But many of these programs may not be compliant because state and local governments still have significant Y2K problems. "The federal government is only a link in the chain that delivers these services," Horn said.

All but one of the programs is slated to be Y2K-compliant by December. The exception is Medicare. HHS has no estimate as to when Medicare will be compliant. This may be a result of Y2K problems with Medicare contractors, Horn said.

And while grades have improved and Jan. 1 will come and go, Horn and Morella urged agencies not to be complacent. "The myth that Jan. 1, 2000 is the seminal Y2K date must be shattered. After Jan. 1, 2000 there could be a period of perhaps two to four weeks when errors can appear," Morella said.

In addition to the potential for Y2K bugs, Horn said the subcommittee has learned from the FBI that there might be an intensified effort by hackers to invade government computers and spread computer viruses in the days before and after Jan. 1.

Horn's Grades for Agencies' Year 2000 Efforts
Nov. 22, 1999