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SUMMARY
The Office of the Auditor General has conducted a performance audit to
assess statewide efforts to convert computer systems so that they accurately process year
2000 data. The audit was conducted pursuant to a May 27, 1997, resolution of the Joint
Legislative Audit Committee.
Efforts are underway, both in the public and private sector, to ensure
that computer systems worldwide accurately process data at the turn of the century.
Currently, these computer systems, including many of the systems in the State, use
two-digit representations to specify the year. Computer systems using this two-digit
format will not recognize the century change to 2000 and will not be able to distinguish
the year 2000 from 1900. According to the February 1997 Year 2000 Statewide Technology
Report, produced by the Statewide Information Technology Planning and Oversight Group,
based on a review of 9 major state agencies, approximately 50,000 software programs and 60
million lines of programming code require change. If agencies do not renovate these
systems and programs in a timely manner, effective dates for benefits, prisoner release or
parole eligibility dates, employee payroll and retirement benefits, and payments to state
vendors could be affected.
Most State Agencies
Report Year 2000 Efforts
Are on Schedule
(See pages 7 through 17)
Arizona’s state agencies report various levels of progress toward
ensuring that their computer systems will process data accurately at the turn of the
century. To assess statewide progress on year 2000 efforts, a cross section of 72 out of a
possible 119 agencies was surveyed, including large agencies, small boards and
commissions, and agencies from all branches of state government. The survey revealed that
8 of the 11 agencies operating large mainframe computer systems reported that their year
2000 efforts were generally on schedule. Information gathered subsequent to the survey
revealed that two additional agencies are adequately progressing with their year 2000
efforts. Only the Department of Public Safety does not appear to be adequately progressing
with its year 2000 efforts. The survey revealed that larger agencies face greater
challenges in converting their large, complex computer systems due to personnel shortages,
increased consulting and software costs, and data interface considerations. In contrast,
agencies that operate mid-range computer systems, such as mini-computers or wide area
networks, and agencies with smaller computer systems, such as personal computers or local
area networks, reported they are for the most part on schedule or already compliant.
However, 12 agencies that operate mid-range or smaller computer systems, including the
Department of Corrections and the Superior Court, do appear to be behind schedule with all
or part of their critical computer system conversion efforts.
While the information these agencies provided offers some assurance of
their timely compliance, current agency progress with year 2000 efforts does not
necessarily ensure that they will achieve this compliance. The large, complex nature of
many of the State’s critical computer systems and the remaining work required to
correct them increases the likelihood of unforeseen problems and delays, thus increasing
the potential for noncompliance.
To reduce the potential for noncompliance, agencies should garner full
management support for year 2000 efforts, develop year 2000 project plans, devote adequate
time to system testing, consider the compatibility of data exchanged with other
organizations, and develop contingency plans to minimize operational disruptions in the
event computer systems are not compliant in time. Additionally, the Legislature should
consider changing the status of current legislative appropriations for year 2000 projects
from reverting to nonreverting. This would allow the Government Information Technology
Agency (GITA) to continue to distribute these appropriated monies to agency year 2000
projects based on progress consistent with their year 2000 funding plan, without
jeopardizing the forfeiture of these appropriations at the end of the fiscal year.
Increased Demand for Personnel
and Contractors Could Hamper
Year 2000 Compliance
(See pages 19 through 26)
Increasing demand for skilled computer programmers and year 2000
contractors could jeopardize state agencies’ ability to convert their computer
systems in a timely manner. Since successful conversion of systems, programs, and data
depends on sufficient and qualified employees and/or contractors, the availability of
these personnel resources is critical. However, despite this enhanced need for programming
staff familiar with the State’s computer systems, state agencies have experienced an
increase in turnover among these positions. For example, agencies such as the Departments
of Administration and Economic Security report significant programmer losses in fiscal
year 1996-97 due to higher salaries in the private sector, while 19 agencies responding to
this survey cite inadequate employee resources as a major barrier to obtaining year 2000
compliance. In addition to the increased turnover, agencies have also had difficulty
finding and attracting programmers to fill the vacated positions. The demand for
programmers is greater than the supply, and the State usually cannot compete with the
private sector for the few available programmers.
Although staffing shortages will continue to challenge agencies and
their year 2000 projects, several options are available to increase staff who can work on
these projects. First, agencies should take advantage of the temporary, higher-paying year
2000 positions created by the State Personnel Office. These positions should allow
agencies to compete in the market- place for qualified programmers and/or retain critical
staff with irreplaceable knowledge or experience. Additionally, similar to Arizona State
University and the State of Oregon, agencies should consider hiring retired agency
employees with computer expertise. Finally, the Legislature should consider amending
statute to provide bonuses to staff working on year 2000 projects, contingent upon staff
working on these projects until their completion and payable at project completion, as an
additional incentive for them to remain with the State.
In addition to increasing available staff for year 2000 projects,
agencies should take advantage of the numerous private contractors who can offer a wide
variety of resources to state agencies. While the State Procurement Office established a
multi-vendor contract for the provision of year 2000 services, agency confusion regarding
the process for selecting and contracting with vendors has limited its use. Additionally,
as the year 2000 approaches, contractors will become more expensive and less available as
the demand for their services continues to increase. As such, GITA, the State Procurement
Office, and state agencies should coordinate efforts to ensure that all specific
contracting needs are met.
GITA Year 2000 Project Support
and Oversight Limited
(See pages 27 through 32)
During the audit, the Government Information Technology Agency provided
limited oversight and support to agencies undertaking year 2000 projects. In its first
four months of existence, GITA monitored the year 2000 projects of 9 agencies. Even though
only 45 of 119 state agencies reported that their computer systems were compliant, GITA
focused its monitoring efforts on the 9 agencies’ year 2000 projects because they
receive funding through GITA for their projects and are converting many of the most
critical computer systems in the State. However, GITA has performed some limited outreach
activities to state agencies regarding their year 2000 efforts and has recently begun to
perform audits of agency year 2000 projects to verify reported progress.
GITA should take steps to ensure that planned efforts as well as
additional measures are implemented to enhance the oversight and support it provides for
year 2000 projects. Specifically, GITA should expand its project status reporting
requirements to include all agencies that have yet to certify year 2000 compliance. GITA
should also continue to implement its plans for auditing year 2000 projects and assisting
state agencies with their year 2000 efforts, especially smaller agencies that lack
information technology expertise. Additionally, GITA should disseminate information about
useful products, problems, innovations, and reference materials regarding year 2000
projects through its newsletter and Web site. Finally, the Legislature should consider
appropriating additional monies to GITA to ensure it has sufficient staffing resources for
year 2000 project oversight and support.
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