most important topic facing organisations over the next two years.

The bank has now allocated the $3-million budgeted cost for the financial year 1997/98 to complete projects aimed at compliance. Further funding for the following year is to be identified during the course of the exercise.

In a letter to its Bermuda Trust Co. Ltd. clients, the bank said: "It is arguably the largest project that will ever be undertaken at the Bank of Bermuda or any other company.'' The letter refers to the fact that computer systems were originally emplaced with coded references to calendar dates that comprised only two digits, such as 98, instead of 1998.

There have been warnings for years that when the year 2000 arrives, the computers may not recognise the year, and could list it as 00.

It has the potential to throw into chaos any computer programme that is not "Year 2000 Compliant''.

Organisations around the world have been spending billions of dollars to fix the problem and ensure that all computer systems, including information technology and simpler systems that run lights, water and elevators, function normally in the new millennium.

The bank set up a special project office which spent four months analysing the problem, starting with a global inventory of banking operations.

The letter pointed out: "The (inventory) database contains over 2000 products comprising of hardware, software, PC software and tools as well as environmental items such as vaults, elevators and security systems.'' Special groups have been assigned to work with the vendors of the systems to ensure Year 2000 Compliance.

The bank further identified 30 mainline systems applications which are used throughout the organisation, applications critical to the business of the bank. The project office is charged with ensuring that there will be no interruption of service.

The bank has identified and committed to an effort of 6,500 person days to work on the issue. And although the bulk of the work is to be completed using internal resources, it will include out sourcing and the use of contract workers.

The second phase of the project has now been completed, including: a detailed project plan; a detailed analysis of the extent of the issue; the conducting of awareness sessions in the bank's offices worldwide; a validation of the inventory; and, the establishment of a commitment for business user participation.

The third phase of the project includes testing and certification of systems by four deadline dates beginning May 31, 1998 through February 28, 1999.