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12 <br /> <br />Comments, Recommendations, and Other Issues <br />Industry recommendation <br />The Information Technology environment is characterized by rapid change and there has <br />been no shortage of headlines about cybersecurity attacks. While breaches of large <br />organizations have been very high profile and have received a lot of press coverage, <br />organizations of all sizes face the same types of threats and are experiencing similar <br />breaches. Many organizations are still struggling to effectively address cybersecurity <br />issues; however, they are no longer ignoring them. During the performance of our audit of <br />the financial statements of the County, we noted that the organization is taking measures <br />to prevent such an attack on the County, but is lacking some elements of a Cybersecurity <br />Framework or Cybersecurity Risk Management Program (CRMP). A functioning CRMP <br />will assist the County with comprehensively identifying cybersecurity weaknesses, <br />potential threats and risks, and controls used to safeguard information and systems. We <br />recommend that the entity investigate and consider implementation of a Cybersecurity <br />Risk Management Program including covering the monitoring and testing of controls in <br />place. <br /> New GASB Pronouncements - Implemented This Year <br />Statement No. 88, Certain Disclosures Related to Debt, Including Direct <br />Borrowings and Direct Placements, under Statement 88, debt for disclosure <br />purposes is defined as a liability that arises from a contractual obligation to pay <br />cash (or other assets) in one or more payments to settle an amount that is fixed <br />at the date the contractual obligation is established. <br /> New GASB Pronouncements for Future Years <br />GASB Statement No. 87, Leases was issued in June 2017 and is effective for the <br />first reporting period beginning after December 15, 2019. This statement <br />increases the usefulness of governments’ financial statements by requiring <br />recognition of certain lease assets and liabilities for leases that previously were <br />classified as operating leases and recognized as inflows of resources or outflows <br />of resources based on the payment provisions of the contract. It establishes a <br />single model for lease accounting based on the foundational principle that leases <br />are financings of the right to use an underlying asset. Under this statement, a <br />lessee is required to recognize a lease liability and an intangible right-to-use <br />lease asset, and a lessor is required to recognize a lease receivable and a <br />deferred inflow of resources, thereby enhancing the relevance and consistency of <br />information about governments’ leasing activities. Applicable for June 30, 2021. <br />Statement 89, Accounting for Interest Cost Incurred Before the End of a <br />Construction Period, this standard eliminates the requirement/ability to capitalize <br />construction period interest costs as part of the cost of a capital asset in <br />enterprise funds. This standard should be applied prospectively with no <br />restatement. This standard can be early implemented as part of fiscal year 2019, <br />but is applicable for June 30, 2021. <br /> New GASB Pronouncements for Future Years <br />Statement No. 90, Equity Interests an amendment of GASB Statements No. 14 <br />and No. 61, is intended to improve the consistency and comparability of reporting <br />a government's majority equity interest in a legally separate organization and to <br />improve the relevance of financial statement information for certain component <br />units. It defines a majority equity interest and specifies that a majority equity <br />interest in a legally separate organization should be reported as an investment if <br />a government's holding of the equity interest meets the definition of an <br />investment. A majority equity interest that meets the definition of an investment <br />should be measured using the equity method, unless it is held by a special-