oversight

Reported Y2K Readiness of State Employment Security Agencies' Unemployment Insurance Benefits and Tax Systems

Published by the Government Accountability Office on 1999-10-28.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

     GAOAcountabiRy *hitlty * belablty

United States General Accounting Office                                      Accounting and Information
Washington, DC 20548                                                               Management Division


          B-283929

          October 28, 1999

          The Honorable William F. Goodling
          Chairman
          Committee on Education and the Workforce

          The Honorable Howard "Buck" McKeon
          Chairman, Subcommittee on Postsecondary Education,
            Training and Lifelong Learning
          Committee on Education and the Workforce
          House of Representatives

          Subject: Reported Y2K Readiness of State Employment Security Agencies'
                   Unemployment Insurance Benefits and Tax Systems

         At your request, we reviewed the Year 2000 (Y2K) readiness of State Employment Security
         Agencies' (SESAs) unemployment insurance benefits and tax systems and determined the
         reported status of whether these systems have been independently verified and validated for
         Y2K compliance. We also determined whether SESAs have submitted contingency plans for
         continuity of business operations.

         On September 30, 1999, we briefed your office on the results of our work which included the
         results of the Department of Labor's contractor's review of SESAs' independent verification
         and validation (IV&V) reports and business continuity and contingency plans (BCCPs), and
         our visits to six SESAs to document IV&V status. Included is a summary of the information
         presented at that briefing. The briefing slides are enclosed.

         Background

         The Department of Labor and the states share responsibility for administration of the
         Unemployment Insurance (UI) Program. SESAs collect state unemployment taxes from
         employers and pay unemployment compensation benefits from the Unemployment Trust
         Fund to eligible workers. In fiscal year 1998, SESAs collected about $22 billion in state UI
         taxes, and in fiscal year 1999 SESAs paid an estimated $24 billion in compensation benefits
         and allowances from the Unemployment Trust Fund to about 8 million workers. The UI
         Program covers 97 percent of all wage earners. In fiscal year 1999, SESA staff handled
         about 6 million employer tax accounts, 20 million initial unemployment claims, almost 137
         million weeks of unemployment claimed, and 1 million appeals.



                                          GAO/AIMD00-28R Y2K Status of State Unemployment Insurance Systems
    B-283929


    Each SESA operates its own UI benefits and tax system, and Labor provided each SESA
    with a base grant of $1 million in FY 1998 to initiate its Y2K activities, making additional
    supplemental funding available upon request. According to Labor, the total amount provided
    to SESAs for their Y2K efforts was $245 million through August 5, 1999. In spite of this
    funding, four SESA systems (those in the District of Columbia, New Mexico, Puerto Rico,
    and the Virgin Islands) encountered failures in January 1999 that may have been Y2K-
    related. These SESAs had to institute contingency measures to avoid disruption of benefit
    payments.'

    Results of Labor's Rating of SESAs' IV&V Reports

    On August 6, 1998, Labor issued a directive that required SESAs to conduct IV&V of the
    Y2K readiness of their unemployment insurance benefits and tax systems. The department
    set a target date of July 1, 1999., for all SESAs to submit IV&V Y2K certification reports for
    their systems to Labor. The department obtained the services of the Information Technology
    Support Center (ITSC) 2 to start reviewing these reports in June 1999, and to assess, from low
    to high, the probability of Year 2000 compliance for each SESA. Based on ITSC's review of
    the available SESAs' IV&V reports, ITSC concluded that

    *   20 benefits and 19 tax systems had a low probability of compliance,
    *   10 benefits and 9 tax systems had a medium probability of compliance, and
    *   7 benefits and 6 tax systems had a high probability of compliance.

Eleven and twelve states, respectively, had not submitted IV&V reports for their benefits and
tax systems. IV&V reports had been submitted but had not yet been rated at the time of our
briefing for five benefits and seven tax systems.

Results of Labor's Rating of SESAs' Reports on Business Continuity and Contingency
Plans

In September 1998, Labor issued a directive requiring that SESAs develop and submit
BCCPs for their unemployment insurance benefits and tax programs. Labor set two
deadlines for SESAs to submit BCCPs for benefits programs. The department had set
October 1,1998, as the target date for submitting plans for the benefits programs for the six
SESAs notified as being "at risk," and November 20, 1998, for all other SESAs. Labor also
set a target date of June 4, 1999., for the unemployment insurance tax program.

In June 1999, ITSC also began reviewing the SESAs' business continuity and contingency
plans. These plans were rated firom low to high in terms of their compliance with Labor's
requirements for coverage of core business functions of benefits and tax systems. ITSC's

1See Year 2000 Computing Challenge: Labor Has Progressed But Selected Systems Remain at Risk (GAO/T-
AIMD-99-179, May 12, 1999).

2Established in October 1994 by a grant from the U.S. Department of Labor (DOL) to the Maryland
Department of Labor to promote the appropriate application of information technology for the unemployment
insurance program, the ITSC is a collaboration of SESAs, DOL, and private-sector partners. The ITSC team
includes Mitretek Systems, Inc., Lockheed Martin Corporation, and the University of Maryland.

Page 2                               GAO/AIMD-OO-28R Y2K Status of State Unemployment Insurance Systems
    B-283929


    reviews showed that the quality of BCCPs varied widely.3 For example, according to ITSC,
    23 benefits and 14 tax plans were rated low/very low in terms of compliance with Labor's
    requirements while 9 benefits and 5 tax plans were rated high in terms of compliance. In
    addition, one and five states, respectively, had not yet submitted such plans for their benefits
    and tax functions.

    Summary of Selected SESAs Visited by GAO

    Our briefing summarized the results of our on-site visits to verify the Y2K readiness status of
    six selected SESAs in three areas: (1) status at the time of our visit (August 10, 1999 through
    September 28, 1999), (2) ITSC's rating for IV&V, and (3) ITSC's rating for BCCPs. 4

 Although three SESAs (those in Kentucky, Utah, and Washington) had reported to Labor that
 their benefits systems were compliant, we determined that noncompliant interactive voice
 recognition system components had not been replaced in Kentucky or Utah. We did not
 report any significant issues of noncompliance with the state of Washington. We confirmed
 that the California SESA, which had reported that its benefits system was not compliant, had
 not yet replaced noncompliant scanner equipment. Two other SESAs (those in the District of
 Columbia and New Mexico) reported to Labor that they had not yet implemented compliant
 benefits or tax systems. Because of a combination of issues delaying implementation in the
 District of Columbia, Labor placed that SESA on its "high alert" list.

rTSC rated the level of compliance for two SESAs' IV&V reports as low for both their
benefits and tax systems (California and New Mexico) because of issues such as lack of
certification or a complete IV&V report. The other four SESAs' benefits or tax systems had
not yet been rated--three because they did not submit IV&V reports by the due date (those in
Kentucky, Utah and, Washington), and one because its benefits and tax systems had not been
implemented (District of Columbia).

In terms of business continuity and contingency plans, ITSC rated the coverage of core
business functions low in the benefits systems of California, Kentucky, New Mexico, Utah,
and Washington; in the District of Columbia, it was rated medium for compliance with Labor
requirements. ITSC rated three SESAs' tax systems' BCCPs low (Kentucky, New Mexico,
and Washington) and one medium (California) for compliance. ITSC had not yet rated the
other two SESAs' tax BCCPs (District of Columbia and Utah).

Objectives, Scope, and Methodology

Our objectives were to determine the reported status of whether SESA systems had been
independently verified and validated for Y2K compliance, and determine the reported status
of SESAs' contingency plans for continuity of business operations. We reported the status of
all 53 SESAs (50 states plus the District of Columbia, Puerto Rico, and the Virgin Islands).

3
 Eleven tax systems' business continuity and contingency plans had been submitted but had not yet been rated
at the time of our briefing.

4 SESAs were selected from a list of state agencies with potential Y2K-related anomalies, i.e., they
received a low score during Labor's IV&V process, did not submit an IV&V report, and /or had not yet
implemented a compliant system.
Page 3                               GAO/AIMDD)0-28R Y2K Status of State Unemployment Insurance Systems
B-283929


In conducting our work, we reviewed Labor's UI quarterly status report. dated September 7,
 1999, on the Y2K reported status of all 53 SESAs' benefits and tax systems. We also
reviewed Labor's guidance requiring that SESAs conduct IV&V and submit certification
reports.

In addition, we analyzed documentation including (1) Labor's guidance for reviewing
SESAs' IV&V reports and BCCPs, (2) SESA reports themselves, and (3) Labor's findings
for IV&V reports and BCCPs. We identified a list of SESAs with potential Y2K-related
anomalies-those that received a low score during Labor's IV&V review process, those that
did not submit an IV&V report, and/or those that had not yet implemented a compliant
system. We selected six of these: for on-site visits. We also analyzed available
documentation at the six selected SESA sites to verify reported Y2K status, including IV&V
reports, test scripts, test results, and explanatory information not provided to ITSC. We
performed our.work between August 10, 1999, and September 28, 1999, in accordance with
generally accepted government auditing standards.



We will send copies of this correspondence to the Honorable John Koskinen, Chairman of
the President's Council on Year 2000 Conversion; the Honorable Jacob J. Lew, Director,
Office of Management and Budget; the six SESAs we visited; and other interested parties.
Copies will also be made available to others upon request.

If you have any questions on matters discussed in this letter, please call me at (202) 512-6253
or David B. Alston, Assistant Director, at (202) 512-6369. We can also be reached by e-mail
at willemsseni.aimd@gao.gov and alstond.aimd@gao.gov, respectively. Glenn Nichols was
a key contributor to this assignment.




Joel C. Willemssen
Director, Civil Agencies Information Systems

Enclosure




(511806)


Page 4                          GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Accounting and Information
                Management Division

                 Year 2000 Readiness of State
                 Employment Security Agencies

                 Briefing for the House Committee on
                 Education and the Workforce

                 September 30, 1999                           i
                                                                  . GAO




5                      GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO
                     Briefing Overview
            Objectives, Scope, and Methodology

            Background
            State Employment Security Agencies' (SESAs) reported Y2K
            status of benefits and tax systems
             * Department of Labor's ratings of independent verification and
               validation (IV&V) reports submitted by SESAs
             * Labor's ratings of business continuity and contingency plans
               (BCCPs) submitted by SESAs

             Summary of GAO visits to SESAs to document IV&V status

            2




6                            GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO
                      Objectives, Scope, and Methodology

            Objectives
            * Determine the reported status of whether SESA systems have
              been independently verified and validated for Y2K compliance

                '-Determine the reported status of SESAs' contingency plans for
                 continuity of business operations

            Scope
            * All 53 SESAs (50 states plus the District of Columbia, Puerto
              Rico, and the Virgin Islands)

            3




7                              GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Objectives, Scope, and Methodology
                    (continued)

            Methodology

            · Reviewed Labor's Ul quarterly report dated 9/7/99 on the Y2K
              reported status of all 5,3 SESAs' benefits and tax systems

            · Reviewed Labor's guidance to SESAs for conducting IV&V and
              submitting reports

            * Analyzed documentation including (1) Labor's guidance for
              reviewing SESAs' IV&V reports and BCCPs, (2) SESAs' reports,
              and (3) Labor's review findings for IV&V reports and BCCPs


            4




8                           GAO/AIMND-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Objectives, Scope, and Methodology
                     (continued)

            Methodology (continued)

            * Identified list of SESAs with potential Y2K related anomalies --
              received a "low" score during Labor's IV&V review process, did
              not submit an IV&V report, and/or had not yet implemented a
              compliant system -- and selected six of these SESAs for on-site
              visits

            * Analyzed available documentation at the six selected SESAs to
              verify reported Y2K status including IV&V reports, test scripts, test
              results, and other explanatory information not provided to Labor's
              Information Technology Support Center (ITSC)

            5




9                             GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Objectives, Scope, and Methodology
                   (continued)

            Methodology (continued)

             We performed our work between August 10, 1999 and September
             28, 1999 in accordance with generally accepted government
             auditing standards




10                         GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO
                      Background

                The Department of Labor and the states share responsibility for
                administration of the Unemployment Insurance (Ul) Program

                SESAs pay unemployment compensation benefits from the
                Unemployment Trust Fund to eligible workers and collect state
                unemployment taxes from employers

                UI Program covers 97 percent of all wage earners




            7




11                             GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Background
                    (continued)

            FY 1998

            * SESAs collected $22 billion in state UI taxes

            FY 1999

            * UI will pay an estimated $24 billion to about 8 million workers in
              compensation benefits and allowances from the Unemployment
              Trust Fund

            * SESA staff will handle over 6 million employer tax accounts, 20
              million initial unemployment claims, almost 137 million weeks of
              unemployment claimed, and 1 million appeals
            8




12                           GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Background
                    (continued)


            * Each SESA has its own UI benefits and tax system

            * Labor provided each SESA with at least $1 million to initiate its
              Y2K activities, with supplemental funding provided upon
              request

            * The total amount provided to SESAs for their Y2K efforts was
              $245 million through August 5,1999, according to Labor

            * Four SESA systems (DC, NM, PR, and VI) encountered date
              problems from Y2K-related failures in January 1999, having to
              institute contingency measures to avoid disruption of benefits
              (See GAO/T-AIMD-99-179, May 12, 1999)




13                           GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Labor's Ratings of IV&V Reports
                Submitted by SESAs

                 *   Labor Directive 38-98 (8/6/98) required that SESAs
                     conduct IV&V of their UI benefits and tax systems

                 *   Labor set a target date of July 1, 1999, for all SESAs to
                     submit IV&V Y2K certification reports

                 *   Labor contracted with ITSC to rate SESAs' IV&V reports
                     for probability of Y2K compliance

                 *   IV&V reports were rated from "low" to "high" probability of
                     Year 2000 compliance


            10                                                          Ssocc: US Dan   t d Lbo




14                           GAO/AIMND-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO
              Labor's Ratings of IV&V Reports-Benefits


                                                                                                                                         ode
                                                                                                                                     Island

                                                                                                                                  D.C.


                                                                                                            ; '_ __" Puerto Rico
                                                 *T~           Total'm
                                                                                                                     % ~~~~~~~~~~~~~~~Virgin
                                                                                                                              ^ Islands

                                                          1
                         Low probability of compliance             20
                   -     Medium probability of compliance
                                                              2
                                                                   10        mH=b_     Not yet rated
                                                                                                      4
                                                                                       Missing/Did not submit IV&V report
                                                                                                                          5          5
                                                                                                                                    11
                                                          3
                         High probability of compliance             7

                 Nolo:
                 I = Clifomia. Dclonam. Flid Gctqgi. Hawaii, dlho. 1dm, Konso M yIod MisSOIonNcbko Ncwd. N HmpsbIu.       -     Ncw MCoiO,
                     Notnh Crolin P. nylvot,.Souh Dakoi Tcus, Virgio, nd Wisonmin.
                 2 = Ar.      Conccuoa. Illinois. nids      Massachusl New York. Ohio. Oregon. South Coaola. and Wyoming.
                 3 = Allbnoa. Michign. Minn-otL Missiippi. Oklahoma. Rode lud. andTncmsoe.
                 4 = Amo. Mota Po           Rio, Virgin Islands ad Waslitolon.
                 5 = Alaska. Colodo., Disic of Columbia. bowa.Kmcky,.Mainc. No-wkny, Noth Dakota. Utah. Vmon and West Virginia.


            11                                                                                                                                    Laborm
                                                                                                                                  SouoS:USDeporanemot




15                                            GAO/AIMD-OO-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Labor's Ratiings of IV&V Reports-Tax



                                                                                                                                          Island

                                                                                                                                   D.C.


                        · '"r                                                                                              Puerto Pico

                                                                                                                                Virgin Islands
                                                                  Tota;l:                      ~
                        Low probability of compliance'          19                                                                  Ttal:
                                                            2                   2 _m    Not yetrated4                                      7
                        Medium probability of compliance         9
                                                                                                                               5
                                                         Highprobability
                                                               6         of oplia Missing/Did not submit IV&V report                      12


                 Not=:
                 I AlaskaCalifonna. Cic, Dlawa FlRoida.        Hawaii.Idaho.IodiaaMasyiaatNebrka. Nemada.Ne Haipe. Nen Mcdco. NewYork.
                     Noth Caolia. Pcnnsyl.ni Soth Dakota.Tt. andV9rginiL
                 2 .Aranasu 1inois. LouisianaMiasaaebots. Ohio,Orego, Sooh Camtiaa.Wisosm, and Wyoamng.
                 3 = Alaaa., MiChigaa.Minooa, Misissippi Olahomoa,andTalmess.
                 4     iaizoaGeorgia.
                                    Iow. Kaas. Misi Vsgin IMantsandWashington.
                 5 Colado. Disaia of ColClmbia.
                                              KCcy. M:aincMoanak Nesw     JsNey. Nonh Dakoa Puno Ric, Rhob Icsld. Utah.Ven-om. andWoesVitgia.


            12                                                                                                                      Sore: USDcprsofsLabor




16                                                GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Labor's Ratings of BCCPs Submitted
                by SESAs
                 Labor Directive 46-98 (9/16/98) required that SESAs develop
                 and submit BCCPs for their UI benefits and tax programs.

                 Target dates to submit plans for benefits programs were
                 October 1, 1998, for the six SESAs notified as being "at
                 risk," and November 20, 1998, for all other SESAs.

                 Labor's target date for the UI tax program was June 4, 1999.

                 Labor also contracted with ITSC to review SESAs BCCPs and
                 BCCPs were rated from "low" to "high" in terms of their
                 compliance with Labor's requirements for coverage of core
                 business functions of benefits and tax systems.

            13                                                             Son: USDq,.m   ofLb
                                                                                            e




17                              GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Labor's Rating of BCCPs-Benefits



                                                                                                                                    Island
                                                                                                                                 D.C.


                                                                                                                        Puerto Rico
                                                                                                                             Virgin Islands
                                                      1
            Low/very low probability of compliance                ;23                                                             Total:
                                                      2                                                                      s
     o      Low/medium probability of compliance                   1      m        High/medium probability of compliance           1
                                                 3                                                                  6
     I      Medium probability of compliance                       17      =       High probability of compliance                   9
                                                       4                                                         7
            Medium/high probability of compliance                   1              Missing/Did not submit BCCP                      1
            Noies:
            1 . Califom-m.Deawmo,Florida. Geoli. Hwaii gK.aa    KeIMcky,Mayla.d. Mihiga. Miri. Nebrask, N.w Jwey. New Mxio. NonhCaoin. Prto
            Ro. SouthCaohl.. Too , TTea UtlabVirSia Wuasbinto.WextVugioiaaod Wyomiog.
            2 = Idabo.
            3 = Alabama.Alaska.Dixict of Columbia. India, lowa.Looisiao.li, Miisswipp..Mi.    Nvada, NewYok.NonbDako Ohio.OLbo. Rhbde
            Isiad Somb Daoa mad VmenOoL
            4 = NewHrSbihM
            5S= CoicaL
                  n
            6 = AIsrs.Azoa. Moaoa. Iiloois.Maxschuse. Oregoe. Pe osylvaio. Vigin Isblad. ndWisonrsin.
            7= Colorado

            14                                                                                                                   Soure us Diemtof Labor




18                                                GAO/AIMD.-OO-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




              GAO Labor's Rating of BCCPs - Tax



                                                                                                                                         Island
                                                                                                                                     D.C.

                                                                                                                               Puerto Rico
                                                                                                                           °        Virgin Islands
                                                      1
      I       Low/vely low probability of compliance                14
                                                      2
          s   Low/medium probability of compliance                   I                                                                       toW
                                                3
      I       Medium probability of compliance                       15High                 probility
                                                                                                  8   of compliances                              5
                                                      4                      iEmfl     Not yet rated                                           11
              High/medium probability of compliance                   2                                                7
                                                                               =       Missing/Did not Submit BCCP                                5
                Noan:
                I = Florida. Gorgia. Ha;i., Kansas.Kaeky. Mona. Nebra.kL New Meio Obio. Tenec, Vigia. Washingtom Wes Vrginia and Wyoming.
                2 = Idahbo.
                3 Alabata. Aamna.aCaifomna. Cnol.        Dae.     Li     Miasaepp4 Nevada
                                                                                   Nd.    ew Y  North Caolina. Nnth Dako. South Ca-oin. SoUthDoka
                Taas. and Wisoain.
                4 . dasah     teM d NMe Hampsbre.
                5 = Alaska.Akas. inos Pcnsylwai a.d Ogogn.
                6= DToict of COl.bia. da. Iowa. MijiDan. Mindnoa. Misomi Oklahoma.Raode Wland.Uah. VntL.   aod Virgi. Island.
                7 = Colorado.Maine.Maryland.NewJrsencv.and Perto Rioo

              15                                                                                                                      soors: us DOpanrnuofLa"o




19                                                  GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Summary of Selected SESAs Visited
                by GAO: California
            Status at time of visit - (9122-9/23/99)
            Benefits system not yet compliant; delays in obtaining compliant
            scanner equipment; installation of new scanner equipment
            ongoing; system currently will generate erroneous dates and
            must be corrected with workaround program before 12/31/99

            ITSC rating given SESA for IV&V
            Low rating by ITSC for benefits and tax systems; lack of
            certification by IV&V contractor and scanner issue cited
            ITSC rating given SESA for BCCP
            Low rating by ITSC for benefits system and medium rating given
            for tax; Note: SESA plans to implement workaround date
            routine if new scanner not operational by December 14, 1999
            16




20                          GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Summary of Selected SESAs Visited
                by GAO: District of Columbia
            Status at time of visit - (8/10 through 9/28/99 - several visits)
            Labor has put DC benefits and tax systems on "high alert' list;
            DC's systems not yet implemented; benefits system delayed
            due to past contract problems; recent decision to move to a new
            mainframe in Lexington, KY has led to uncertainties; software
            licensing issues impacting completion schedule at new site
            ITSC rating given SESA for IV&V
            Because neither system has been implemented, DC has not yet
            had an IV&V conducted on the systems, therefore DC has not
            received an ITSC rating
            ITSC rating given SESA for BCCP
            Medium rating given DC by ITSC for its benefits system; BCCP
            for tax system not yet rated.
            17




21                           GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Summary of Selected SESAs Visited
                by GAO: Kentucky
            Status at time of visit - (9/27- 9/28/99)
            Benefits and tax systems were reported compliant; SESA has
            determined that the interactive voice system for processing
            continuing claims by telephone is not compliant; contractor
            cannot assure that it will be replaced by year's end

            ITSC rating given SESA for IV&V
            Both IV&V reports for benefits and tax systems were not
            submitted to Labor by due date; IV&V report obtained during
            visit identifies areas of concern--inadequate documentation and
            system testing

            ITSC rating given SESA for BCCP
            Low rating by ITSC
            18




22                           GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Summary of Selected SESAs Visited
                by GAO: New Mexico
             Status at time of visit - (8/23-8/24/99)
             System currently being tested; delays due to funding issues
             and inadequate documentation; target date for completion is
             October 15, 1999

             ITSC rating given SESA for IV&V
             Low rating given for benefits and tax; SESA did not submit
             complete report for benefits or tax system because systems still
             in development

             ITSC rating given SESA for BCCP
             Low rating by ITSC


            19




23                           GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Summary of Selected SESAs Visited
                by GAO: Utah
            Status at time of visit - (8/31- 9/2199)
            Benefits system reported compliant; however, concerns exist
            about inadequate documentation; tax system scheduled for
            implementation next month; interactive voice recognition system
            for processing claims by telephone determined not to be
            compliant

            ITSC rating given SESA for IV&V
            Utah did not submit report for benefits or tax systems by due
            date; thus did not receive a rating from ITSC.

            ITSC rating given SESA for BCCP
            Utah received a low rating for benefits system; did not submit
            plan for tax system
            20




24                           GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems
Enclosure




            GAO Summary of Selected SESAs Visited
                by GAO: Washington
             Status at time of visit - (8/25- 8126/99)
             Compliant system reported as implemented

             ITSC rating given SESA for IV&V
             Washington was late in submitting its IV&V report thus no rating
             was provided for benefits or tax systems; report obtained during
             GAO visit states that both systems "have a high degree of
             likelihood of being Y2K complaint"'; Y2K documentation was well
             organized and appeared complete; test results documented and
             reviewed by IV&V contractor

             ITSC rating given SESA for BCCP
             Washington received a low rating by the ITSC
            21




25                           GAO/AIMD-00-28R Y2K Status of State Unemployment Insurance Systems