Summary: GAO testified last year that the District of Columbia was seriously behind schedule in addressing its Year 2000 problems. (See GAO/T-AIMD-99-4, Oct. 1998.) Since GAO's initial assessment, the District Year 2000 Program Office has established an orderly process for addressing the Year 2000 problem and has been working hard to develop and understanding of its core business processes and supporting information systems. The Year 2000 Program Manager holds weekly meeting to review deviations from schedule baselines and monitor the overall program status. Additionally, the Program Office recently began preparing Year 2000 report cards for all systems included in the District's Year 2000 effort. However, it will be difficult for the District to adequately compensate for its late state in dealing with the Year 2000 problem. As a result, it faces significant risk that vital services will be disrupted and tremendously important tasks lie ahead. For example, testing for a majority of the District's mission-critical systems will peak during the next several months and finish in October. Experience shows that Year 2000 testing -- the lynchpin for ensuring that systems process dates correctly -- is the most time consuming and difficult phase of nearly all Year 2000 projects. Similarly, development and testing of the District's contingency plans, which are intended to reduce the risk and potential impact of Year 2000-induced information system failures on its core business processes, are likewise scheduled for completion in the fall. Given the District's compressed Year 2000 schedule, which allows no margin for error, and to have a reasonable chance of avoiding serious disruption to public services, it must be well prepared for likely project delays and failures of mission-critical systems.