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Technology Stocks : Discuss Year 2000 Issues

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To: John Mansfield who wrote (2039)6/24/1998 11:51:00 AM
From: John Mansfield  Read Replies (3) of 9818
 
UK: YEAR 2000 - URGENT ACTION NEEDED TO SAFEGUARD KEY PUBLIC SERVICES

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There are now less than 400 working days to the millennium, and the majority of local authorities and NHS trusts are behind schedule in tackling the year 2000 bug successfully, according to a report published today by the Audit Commission. Prompt action is needed if local government and NHS bodies are to be ready for the millennium.

The year 2000 poses problems for all organisations using computers and other electronically-controlled equipment such as lifts, car park barriers, heating systems, video recorders and medical equipment. For the public sector, problems could result in the failure of key public services including communications with fire engines and ambulances, child protection registers, benefit payments and traffic lights.

The Audit Commission is reviewing arrangements for tackling the year 2000 problem in local authorities, NHS trusts and other audited bodies. The Commission has established how much progress has been made and has issued guidance to help bodies get their year 2000 preparations on track. The main findings of the reviews, at 350 bodies up to March 1998, include:-

Many local authorities and NHS year 2000 projects are behind schedule. Less than one third have documented their strategies for dealing with the problem, and over one third have still to identify the full extent of the problems within their organisations.
It will not be possible to make all systems and equipment year 2000 compliant by the required deadline so it is important to focus on critical systems and equipment. Half of authorities and trusts have worked out their priorities.
Progress in resolving problems with embedded systems is slower than for IT. The complexity of testing systems, particularly embedded systems, means that it is unlikely that authorities and trusts will complete testing by 31 December 1998, the target date set for NHS bodies.
The final cost is still unknown and many authorities and trusts have yet to determine a budget for their year 2000 project.
Authorities and trusts are meeting the cost of the year 2000 from existing resources. If all critical systems are to be ready on time, some will have to set aside more money.
Some manufacturers have not yet provided assurances on information about compliance of their products, such as medical equipment.
Skilled staff needed to tackle the problem are in high demand and short supply.
Less than 10% of authorities and trusts have developed contingency plans to ensure the continuation of vital services if systems or utility supplies fail.
Despite the range of problems posed by the Year 2000, these are not insurmountable but require considerable effort to resolve. Organisations or managers may be held legally liable for any injuries or losses caused by failures of systems. Authorities and trusts need to work together - and with their suppliers - to co-ordinate their efforts and share best practice and information.

A Stitch In Time provides a self assessment questionnaire to assist senior managers measure the level of preparation within their organisations, and outlines seven key steps that organisations should take to prevent failure of key services and critical equipment.

The government is asked to note the likely levels of funding for year 2000 projects, be alert to the consequences of legislation which has considerable implications for public sector IT within the next two years, and consider how emergency plans should incorporate the year 2000 dimension.

The Audit Commission will regularly report on the progress authorities and trusts are making as the millennium approaches, and assist in the sharing of good practice advice and encourage closer co-operation.

Andrew Foster, Controller of the Audit Commission, said:

"The millennium bug is one of the most significant challenges currently facing organisations. Time is fast running out with less than 400 working days to take action.

"All Chief Executives and Directors should check how far they have got against our report. There is time to tackle the bug but authorities and trusts have to focus on the issue today."

Notes to Editors
The Audit Commission for local authorities and the NHS in England and Wales is an independent body established under the provisions of the Local Government Finance Act 1982 and the NHS and Community Care Act 1990. Its duties are to appoint auditors to all local and health authorities and to help them bring about improvements in economy, efficiency and effectiveness directly through the audit process and through value for money studies.

A Stitch In Time, Facing the Challenge of the Year 2000 Date Change (ISBN 1 86240 105 5) is available from Audit Commission Publications on freephone 0800 502030 priced œ15. (œ10 reduced price for NHS bodies and local authorities.)


audit-commission.gov.uk
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