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City of Lino Lakes, Minnesota <br />Management Report <br />Other Matters <br />OTHER MATTERS <br />Year 2000 Systems Issues <br />With the year 2000 approaching, many computer systems, as well as a number of other <br />systems, may be impacted by the change to the year 2000. The issue is based on the ability of <br />your current systems to read a two -digit year (00) as the year 2000 as opposed to 1900. <br />Computer programmers have historically used only two digits to designate the year within <br />computer software. A number of systems will, therefore, read 00 as 1900. If this occurs, corrupt <br />data may be generated inside your computer software as well as other systems (fax machines, <br />VCRs, clocks, air conditioning units, switchboards, alarm systems, information backup systems, <br />and e-mail just to name a few). <br />b We recommend that 1) the City continue efforts to identify all systems impacted by the <br />change, and 2) budget adequate resources (both staff time and, if appropriate, system <br />replacements) to avoid any problems associated with the change to the year 2000. If <br />unanticipated problems occur, the cost to fix the situation may far outweigh the cost, time and <br />effort to anticipate the changes and implement them prior to the year 2000. <br />We are available to assist the City in organizing or implementing a year 2000 compliance <br />plan. <br />Fraud Prevention <br />p Fraud prevention has become a priority with a number of organizations based on <br />increased awareness of the impact of fraud on organizations. $400 billion is lost to fraud in the <br />U.S. annually. We are recommending that all clients re- evaluate their systems to prevent fraud. <br />Our position has been prompted by: <br />Page 65 <br />