CCP 05-10-1999 - Laserfiche WebLink

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. . . i City of Arden Hills April 8, 1999 Page Eight Recycling Fund This fund has a cash balance of $44,685 and retained earnings of $44,616 at year end. Surface Water Management Fund This fund has a cash balance of$107,731 and retained earnings of $185,601 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 oflbe year, with the assumption that these two digits would always be 19. Thus January I, 1965 became 0]/01/65. Unless corrected, lbis shortcut is expected to create widespread problems when lbe clock strikes 12:00:01 a.m. on January 1,2000. On that date, some computer programs may recognize lbe date as January I, 1900, and process data inaccurately or stop processing altogether. The Year 2000 Issue is likely to affect computer applications before January t, 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 somelbing otherlban the date. Examples of such dates are 01/0]/99, 09/09/99 and 12/31/99. 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 lbe 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 atready 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 lbird-party organizations with whom it exchanges date-dependent information, because these organizations also must become year 2000 compliant. The Council 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. Our examination would not necessarily disclose all weaknesses in the system because it was based on selected tests oflbe accounting records and related data. If you have any questions or wish to discuss any of the items contained in lbis letter, please feel free to contact us at your convenience. We wish to lbank you for the continued opportunity to be of service and for lbe courtesy and cooperation extended to us by your staff. April 8, t 999 Minneapolis Office ABDO, ABDO, E1CK & MEYERS, LLP Certified Public Accountants