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Y2K: What to expect on April 1

It's Day 1 of New York and Canada's fiscal year 2000. What will happen?
Written by Mitch Ratcliffe, Contributor
What exactly will happen on April 1st, or any other Y2K critical date this year? No one knows, of course. No one can tell you what telephone connection will be the next one cut by a backhoe, which accounting application will encounter an error, or the score of the Gonzaga University basketball game, either. But, it is possible to make some educated guesses.

This week, ZDY2K introduces you to the issues surrounding April 1st, when the first major fiscal calendars roll over into 2000. It's a date that will give some solid indications about the nature of Y2K problems, because for many financial systems, it is the beginning of the year "00."

Based on the progress of Y2K remediation in New York and Canada, there are several hotspots where problems will, if they are going to happen at all, erupt with sufficient severity that the public will feel the impact. For the most part, problems will be contained and corrected before they cause problems visible to the outside world -the kind of day-to-day processing problems IT professionals deal with may increase, but they will be fixed without major incident because these governments are aware of the potential for errors on or around April 1.

If these hidden problems happen, but no one in the public is affected, it's reasonable to say that Y2K is increasingly likely to be a non-crisis that society deals with like other changes in the environment. The tides change twice a day, and worldwide shipping depends on the tides, but the response to those changes is coordinated and based on planning by people all over the globe. No one outside the shipping industry, except sports fishermen, pay much attention to the tides, and so it may be with Y2K.

But some problems may be felt by citizens waiting for checks, benefits or services that depend on the fiscal calendar. These errors may arise in the form of errant tax bills, as has happened in some states implementing Y2K fixes, or a delay in processing of a new unemployment claim. In other areas, such as national defense and police or emergency services, April 1st is almost irrelevant, since their systems are more dependent on the Gregorian calendar - except, of course, payroll and management information systems, which are keyed to the fiscal year.

Based on our analysis of the readiness of systems in Canada and New York, here are the systems that could produce the most visible and painful problems around April 1:

    Canada
  • Health Canada
  • Food and drug regulation
  • Medical services to native tribes
  • Occupational Health and Safety
  • Public Works and Government Service
  • Public Service Compensation
  • Government Financial Transaction
  • Receiver General Services
  • The Province of Nova Scotia
    New York
  • Licensing and Registration
  • Child and Family Services
  • Civil Service Health Benefits
  • Corrections Financial Management System
  • Education, Child Nutrition Services
  • Empire State Development Financial Management Systems
  • Environmental Conservation Fiscal and Human Resource Management
  • Family Assistance Personnel and Payroll
  • General Services Financial Integrated Imaging System (records)
  • General Services Fleet Credit Cards
  • Health Emergency Medical Services
  • Higher Education Debt Management and Collection
  • Insurance Department Licensing System
  • Insurance Department Financial Accounting
  • Insurance Department Examiner Billing
  • Insurance Department Personnel System
  • New York State Lottery
  • Mental Health Pharmacy System
  • Real Property Service
  • State Police Ticketing System
  • Tax & Finance Case and Resource Tracking System
  • Tax & Finance Human Resources System
  • Tax & Finance Account Reconciliation
  • Thruway Authority Personnel System
  • Thruway Authority Toll Collection
  • Veterans' Affairs Data Collection for Federal Fund Reimbursement The list of systems that pose little problem, based on their progress, is longer. These systems remain at risk, though, because repairs may prove faulty. They include:
      Canada

  • Foreign Affairs and International Trade, which manages imports and exports
  • Human Resources Development
  • Employment Insurance programs
  • Old Age Security program
  • Canada Pension Plan
  • Department of Justice
  • Family Orders and Agreements Enforcement
  • Revenue Canada
  • Income Tax Processing
  • Social Income Redistribution
  • Tariffs and Trade
  • Tax Court of Canada
  • Veterans Affairs
  • Pensions
  • Health Care
  • The Province of British Columbia
  • The Province of Alberta
  • The Province of Manitoba
  • The Province of Ontario
  • The Bank of Canada
      — New York
    • Banking Examiner
    • Banking Mortgage Banking/Consumer Regulation
    • Criminal Justice Fees Processing
    • Empire State Development Human Resources International
    • Family Assistance Procurements and Contracts
    • Housing and Community Renewal Budget/Rent Determination
    • Mental Health Patient Tracking System
    • Mental Health Personnel and Payroll
    • Real Property Services Payroll and Purchasing
    • State Comptroller Justice Court Processing
    • State Police Personnel System
    • Tax & Finance Personal Income Tax System
    • Tax & Finance Withholding
    • Tax & Finance Business Tax
    • Tax & Finance Accounts Payable
    • Tax & Finance Business Tax and Wage Reporting
    What you see here are the systems to watch, not necessarily where you will see problems. For the most part, the work on critical systems, even within problem areas, is completed. Among all the agencies listed here, only the government of the Province of Nova Scotia seems to be less than 50 percent of the way through all mission-critical system remediation projects.

    What will happen
    Based on the number of systems still in progress and the industry averages for the success of software projects, I'll go out on a limb and make the following predictions:

    1. On or around April 1, 1999, one financial system in New York state will experience a major system problem. As a result, approximately 10 percent of checks or bills will be miscalculated during the first run through batch files. The problem will be identified and the billing or check generation process will be halted to make repairs. Some of the erroneous calculations will be delivered to citizens, but no one will be expected to pay extra. A corrected version of the checks or bills will be ready within 36 hours.
    2. On or around April 1, 1999, there will be a data conflict in public benefits systems linking the Canadian federal government to at least one of the provinces, most likely Nova Scotia. The problem, though it will be repaired in a few days, will be widely reported.
    3. On or around April 1, 1999, approximately 10,000 citizens or businesses in parts of Canada will receive incorrect statements or bills for a public account, such as taxes due for the year 1999. The bills will be proceeded by an announcement by the government responsible that a mistake was made and that a corrected version of the bills is in the works. In the meantime, the recipients will not need to make the payments (or receive refunds) they have been billed for; the government will settle for an estimated payment.
    That's the worst stuff that will happen. So, now, let's sit back and see what comes to pass.


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