DATE: December 1998 NO.:
98-CU-21
SUBJECT: NCUA INTERNAL YEAR 2000 READINESS
This letter is to inform you of the National
Credit Union Administration's ongoing efforts to ensure that all
aspects of our internal automated information systems, particularly
as they affect credit unions, are fully Year 2000 (Y2K) ready.
It will also fulfill your requirement to obtain written confirmation
of our Y2K status as one of your software suppliers.
NCUA began planning for Y2K readiness in 1995, as we converted from our old mainframe architecture to a modern client-server computing environment. Since then, we have:
Since our last correspondence to you on this
subject, we have successfully completed four levels of Y2K validation
testing of our internal information processing systems. We have
twice submitted our test procedures, documentation and results
to the accounting firm of KPMG Peat Marwick for independent review
and assessment. While not rendering a formal opinion, KPMG validated
our testing methodology, processes, and documentation, and we
have successfully addressed all the recommendations made during
their reviews. All internal agency-supported information
processing systems now in production are Y2K ready.
There are two software systems created by
NCUA that are of particular importance to credit unions. These
are the 5300 Credit Union Call Report System and the 5310 Corporate
Credit Union Call Report System. Both of these systems are Y2K
ready. We recognize the need for credit unions to conduct their
own testing of these systems. The September 1998 5300 system
contains an edit that prevents using the program outside the date
range of the current 5300 cycle. This edit has been removed from
future versions of the 5300 program. Credit unions will be able
to use the December 1998 version to conduct their own Y2K testing.
We will provide testing instructions along with the December
1998 5300 distribution. The current version of the 5310 Corporate
Credit Union Call Report system can be used for testing.
In an effort to minimize the risk from automated
systems outside our direct control, we continue to perform testing
and obtain Y2K readiness certification on non-critical systems
and equipment supplied by outside vendors and used by NCUA. In
addition, we have developed contingency plans for each of these
systems in the event of failure. These contingency plans have
been prioritized and linked to our agency Business Continuity
Plan to ensure uninterrupted service as we enter the 21st
century.
If you have any questions regarding the status
or progress of NCUA's Y2K validation efforts, please contact the
Director of Strategic Planning Layne L. Bumgardner at (703) 518-6320
or Chief Information Officer Douglas D. Verner at (703) 518-6440.
Sincerely,
/S/
Norman E. D'Amours
Chairman