December 4, 1998

Contact: Lorie Arnett, 713/437-6163

City Controller Syliva R. Garcia today announced the implementation of the initial step in her audit of the City's preparedness for the year 2000. The Controller's auditors today will begin a citywide audit of Y2K compliance to determine if City departments have met their readiness objectives.

The Controller noted that her office has been laying the groundwork for the audits for several months. "We have kept the lines of communication with the administration open and active, and will continue to do so." she said.

Audits of Y2K progress are routinely conducted by controller's offices - in government, corporations, and non-profit agencies. This allows for an independent examination of an organization's readiness for the year 2000.

The Controller will begin the audit with her Audit Division staff but audit firms are under contract that have expressed an interest should additional support be needed.

The importance of Y2K readiness cannot be overstated. Recently the Controller's Office learned what a disastrous impact poor preparation in even a single City department can have on the City's financial health. As part of the ongoing audit of the Public Works Department, Deloitte and Touche uncovered a shocking lack of preparedness for the year 2000 in the Water Customer Information System. The system handles billing and collections, bringing in an estimated $1.5 million per day and up to $500 million annually.

"The findings in Public Works underscore the importance of the Y2K audits we will be conducting," Controller Garcia said. "An independent audit is critical, and that is where we come in."

The Y2K audits are contained in the Controller's 1999 audit plan, which has been reviewed by the Mayor and Council.