Any significant compliance issues will be reported to the Board immediately. The Reserve Banks’ internal audit departments and the Board’s oversight staff are also closely monitoring progress. A significant challenge in meeting our Year 2000 readiness objectives is our reliance on commercial hardware and software products and services.
Much of our information processing and communications infrastructure is comprised of hardware and software products from third-party vendors. Additionally, the Federal Reserve utilizes commercial application software products and services for certain administrative functions and other operations. As a result, we must coordinate with numerous vendors and manufacturers to ensure that all of our hardware, software, and services are Year 2000-ready.