CCP 06-08-1998 - Laserfiche WebLink

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'IJ] ~t ',," " City of Arden Hills ~~ May 14, 1998 . Page Eight Recycling Fund This fund has a cash balance of $39,203 and retained earnings of $39,559 at year end. Surface Water Management Fund This fund has a cash balance of$73,394 and retained earnings of$160,870 at year end. Other Matters Year 2000 Issue The Year 2000 Issue results from a computer's inability to process year-date data accurately beyond the year 1999. Except in recently introduced year 2000 compliant programs, computer programmers consistently have abbreviated dates by eliminating the first two digits of the year, with the assumption that these two digits would always be 19. Thus January 1, 1965 became 01101/65. Unless corrected, this shortcut is expected to create widespread problems when the clock strikes 12:00:01 a.m. on January 1,2000. On that date, some computer programs may recognize the date as January 1, 1900, and process data inaccurately or stop processing altogether. The Year 2000 Issue is likely to affect computer applications before January 1,2000, when systems currently attempt to perform calculations into the year 2000. Furthermore, some software programs use several dates in the year 1999 to mean something other than the date. Examples of such dates are 01101/99, 09/09/99 and 12/31199. As systems process information using these dates, they may produce erratic results or stop functioning. . The Year 2000 Issue presents another challenge, the algorithm used in some computers for calculating leap years is unable to detect that the year 2000 is a leap year. Therefore, systems that are not year 2000 compliant may not register the additional day and date calculations may be incorrect. Most of the City's finance software should already be year 2000 compliant but it is important to review all areas where date-dependent computer information is needed and correct any deficiencies. We recommend the City implement verification procedures to test the accuracy of information received from its vendors~ service providers, bankers, customers and other third-party organizations with whom it exchanges date-dependent information, because these organizations also must become year 2000 compliant. The Board also should satisfy itself that vendors, service providers, bankers, customers and other third-party organizations will not experience problems relating to the Year 2000 Issue that could affect the City's operations or cash flow. * * * * * * This report is intended solely for the use of management and council. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. OUf examination would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. . ~ ~, ~.7~ , May 14,1998 ABDO, ABDO, EICK & MEYERS, LLP Minneapolis Office Certified Public Accountants