The Year 2000 problem knows no difference between a computer in the Pentagon
or in a county sheriff's office, so financial rule-makers are now pressing
municipal governments to do more on reporting Y2K compliance.
A new financial accounting rule, which went into effect this week, says state
and local governments must report the amount of money and resources they
have committed to fix the Year 2000 problem and also must disclose what they are
doing to make their computer systems Y2K compliant.
The Governmental Accounting Standards Board, which enacted the rule,
warned that if local governments don't address the Year 2000 technology
problem properly, it could cause wide-spread problems affecting government
activities including public safety, budgeting processes, and local power
The GASB is one operating arm of the Financial Accounting Foundation that is
independent of all other government and professional associations. Funding
for the GASB is in part from sales of its own publications and in part from
governments, the public accounting profession, and the financial community.
The problem, often called the millennium bug, is rooted in the way dates are
recorded and computed. For the past several decades, systems have typically
used two digits to represent the year, in order to conserve memory. With
this two-digit format, however, the year 2000 is indistinguishable from
1900, or 2001 from 1901.
"The public disclosure should provide a general description of the stages of
work in progress or completed?to make computer systems and other electronic
equipment critical to conducting operations Year 2000 compliant," according to
the Governmental Accounting Standards Board. The
additional stages of work necessary for making computer systems and other
electronic equipment Year 2000 compliant should also be disclosed.
The status of Year 2000 compliance among states and municipalities is
unclear because they have not been required to report the information until
The board's move this week comes on the heels of a recent
crackdown on delinquent brokerage firms by the Securities and Exchange Commission for
failing to report the status of their Year 2000 technology problem
preparedness as required by the federal government, the commission said.
Fees or other forms of punishment for state and local governments that don't
report their Y2K status were not outlined by the Governmental Accounting Standards Board.
According to the National Association of State Information Resource
Executives estimates released
earlier in the year , 23
states are still planning their Year 2000 strategies, while 19 states are
now implementing and testing conversions. Four states reported being in both
the planning and
The National Association of State Information Resource
Executives, which represents information resource executives and managers from
the 50 states, U.S. territories, and the District of Columbia, has targeted
the Year 2000 issue as a key initiative.