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$8M Revenue Shortfall Blamed on Bad DB Entry
SierraPete writes "Yahoo! News reports that an improper database entry, most likely caused by an external user, has created an $8 Million USD revenue shortfall for a northwestern Indiana county because a house that was supposed to be valued at $121,000 showed a value in the database at $800,000,000. There's no specific suggestion that this erroneous entry was done maliciously, but it is leading to big problems in the local governments as they try to figure out how to drop that much money out of their respective budgets. As an aside, how would you like to be in the homeowner's shoes when he opens up his mail box and finds an $8M property tax bill? I'm sure there was a trip to the emergency room or the dry cleaners involved."
I think the homeowner probably just laughed. In this day and age when you see a computer generated report which is totally outside the norm you can assume error. Maybe one day in the past someone would have sweat but it seems there are so many errors nowdays (we have accepted a certain level of fault with all things computer) that it just was -- they screwed up again.
Quality Hosting e3 Servers
I'd just shrug and make a phone call. Who in there right minds would really believe that they owe anyone $8 million? It is like this woman in England that got a utility bill for some $240 million. There is no way any person even mildly associated with reality would believe these to be legitimate and correct bills.
Murphy's Paradox... the more you plan for success, the more avenues there are for failure.
Do they not have a trap for super low or high amounts, adjusting these traps over the years as values go up or down?
One would think these simple things are in place.
"$121,000 showed a value in the database at $800,000,000"
Did anyone actually bother to rtfa, or is it just cool to make up numbers for post summaries now?
"A house erroneously valued at $400 million"
"The house had been valued at $121,900 before the glitch."
I mean, that's not a huge error, now is it?
Read the article: It says the shortfall occured because the home was incorectly valued; The taxes on an 8 million dollar home are not 8 million dollars...but a fraction of that.
So here on Long Island for example, taxes would only be about 7 million...
-Chris
--an unbreakable toy is useful for breaking other toys--
The home was 400 million. The taxes were 8 million.
Sell the house at $400 million dollars. Pay the taxes and then run away never to be seen again.
Ooo man the floppy drive is broken. No wait. The computer is just upside down.
If the county doesn't notice a sudden increase of $400 million...nearly half a billion in the grand list (which I'd imagine would be a significant figure), they may have many fundemental issues in the tax assesor's office that need to be addressed.
The slashdot story is incorrect - the house was incorrectly valued at $400 million, not $800 million (meaning that the tax rate is double what the story made it appear to be - not 1% but 2%).
According to the article, the real problem was that while the error was caught in a timely manner by the tax people, the bad data had already made it into other systems. Those other instances were never corrected.
I'm curious why those involved with budgeting never questioned why they suddenly had an extra $8 million to play with. Someone more in touch with government and their community should have wondered what was going on.
Also, it seems a lot like counting their chicks before they've hatched. They had already distributed funds that hadn't even been collected yet. If any big player (particularly businesses) were to fail then the same problem would have arisen - funds were distributed and budgeted against that could not be collected.
Dan East
Better known as 318230.
Compared to the effort and expense of doing data range and argument validation, I don't think it's a big deal to have sanity-check warnings in assert-driven code. Just because a field can store a couple dozen digits doesn't mean that a flag shouldn't be raised when you see numbers more than 6-7 digits.
There are already similar checks in business code -- you can't sell a negative quantity at a cash register, you have to do a return. Operating systems make similar checks, asking for confirmation of "dangerous" or unusual situations (like permanently removing data.)
Why wouldn't a financial management/accounting system have similar rules enforced and monitored?
I do not fail; I succeed at finding out what does not work.
This county should spend some time and money looking for other data entry holes. Also, exception and audit reports should probably be implemented as a stop gap. Maybe report on parcels that have appreciated more than 30% and do a manual double check before publishing the tax revenue numbers to the budget office.
And at the risk of repeating myself, "This problem was not caused by the Database! Call it "human error", "programmer error", or "lazy auditors" but calling it a "database entry error" implicates an innocent database doing it's job properly. Thank you, you may now return to Slashdot and STOP BLAMING THE DATABASE!