A meeting of the Audit and Enterprise Risk Committee of the Board of Trustees convened at 8:45 a.m. Friday, October 7, 2022, in Room 326 of Stewart Center on the campus of Purdue University in West Lafayette, Indiana.

All members of the Committee were present: Vanessa Castagna, chair; JoAnn Brouillette; and Theresa Carter. All other trustees were present: Sonny Beck; Michael Berghoff; Malcolm DeKryger; Mark Gee; Michael Klipsch; Gary Lehman; and Shawn Taylor.

Officers and administrators in attendance were: Mitch Daniels, president; Jay Akridge, provost and executive vice president for academic affairs and diversity; Chris Ruhl, chief financial officer and treasurer; Eva Nodine, senior vice president, assistant treasurer, and assistant secretary; Steve Schultz, general counsel; Cindy Ream, corporate secretary and senior executive assistant to the Board; Ron Elsenbaumer, chancellor, Purdue University Fort Wayne; and Tom Keon, chancellor, Purdue University Northwest.

I. APPROVAL OF MINUTES

Upon proper motion duly made and seconded, the Committee voted unanimously to approve the minutes of its last meeting convened on April 8, 2022.

II. RATIFICATION OF PROPERTY INSURANCE POLICY RENEWAL

General Counsel Schultz shared that the Office of Risk Management, under Mark Kebert’s leadership, has worked diligently to renew the insurance coverage. The Property Insurance policy exceeds the $2,000,000.00 threshold and therefore requires approval from the committee and ratification by the full board. He noted turbulent circumstances following the pandemic, ongoing economic uncertainty, and natural disasters, such as Hurricane Ian, continue to create challenges to obtaining property insurance on reasonable terms. He shared that it is not just market conditions that cause the relatively high premiums, but also the increase in our insured value because of expanding operations. The terms are substantially the same as the previous year with a 4.5% increase in premiums; Purdue’s rate through the incumbent insurer, FM Global, for a total premium of $4,100,000.00.

Upon proper motion duly made and seconded, the Audit and Enterprise Risk Committee voted unanimously to recommend full Board ratification of the property insurance policy renewal. Supporting materials were filed with the minutes.

III. CHARTERS FOR INTERNAL AUDIT AND ENTERPRISE RISK MANAGEMENT PROGRAMS

Chair Castagna introduced Madina Sabirova, chief audit executive in the Internal Audit Office who provided the Enterprise Risk Management Charter’s mission, purpose, and responsibility. She noted the Charter serves as a formal document that will govern the Enterprise Risk Management program. She shared a projected timeline for completion of the project and noted that the charter will bring more modern practices, modern framework, and a more disciplined approach. In response to a question from Chairman Berghoff about the term “charter” and its significance, Ms. Sabirova clarified that it is a governing document that outlines roles and responsibilities of the program’s function, authority etc. A copy of the supporting document was filed with the minutes.

IV. ADJOURNMENT

By consent, the meeting adjourned at 8:57 a.m.