A meeting of the Audit and Risk Management Committee of the Board of Trustees convened at 9:28 a.m. on Friday, February 7, 2020, in Room 326 of Stewart Center on the campus of Purdue University in West Lafayette, Indiana.

All members of the Committee were present: Thomas Spurgeon, chair; JoAnn Brouillette; Vanessa Castagna; and Malcolm DeKryger. All other trustees were present: Sonny Beck; Michael Berghoff; Michael Klipsch; Gary Lehman; Noah Scott; and Don Thompson.

Officers and administrators in attendance were: Mitch Daniels, president; Jay Akridge, provost and executive vice president for academic affairs and diversity; Chris Ruhl, treasurer and chief financial officer; Jim Almond, senior vice president, assistant treasurer, and assistant secretary; Steve Schultz, general counsel; Trent Klingerman, deputy general counsel; Janice Indrutz, corporate secretary and senior executive assistant to the Board; and Tom Keon, chancellor of Purdue University Northwest.

I. APPROVAL OF MINUTES

Upon proper motion duly made and seconded, the Committee voted unanimously to approve the minutes of its December 6, 2019, meeting.

II. APPROVAL OF 2019 ANNUAL REPORT OF THE SENIOR DIRECTOR OF AUDITS

Ms. Peg Fish, senior director of audits, discussed the 2019 Annual Report which the Committee had been provided in advance. She outlined how the seven members of the audit staff had dedicated their time, including the number of audits completed by type and campus. Ms. Fish compared the report to the audit plan and said the university continued to provide an environment for anonymous reporting of suspected fraud, waste, or abuse of university assets. To conclude, Ms. Fish remarked that the accomplishments of the Internal Audit Office were made possible through the support of the Board, senior leaders, and management teams.

Trustee Castagna thanked Ms. Fish for her 30 years of service to the university, which was met with applause. Trustee Thompson asked Ms. Fish if there were any areas of concern with regard to the audits. She responded that no material deficiencies were identified at the financial statement level and said Trustee Spurgeon had been present for the Federal Awards closing conference, which, she said, entailed a great deal of compliance effort and had identified a few weaknesses to address in the area of enrollment. Ms. Fish also informed the Committee that the Internal Audit Office continued to focus on cybersecurity, which, she pointed out, was a concern for all institutions and businesses.

Upon proper motion duly made and seconded, the Audit and Risk Management Committee voted unanimously to approve the 2019 Annual Report of the Senior Director of Audits. A copy of the report was filed with the minutes.

III. REVIEW OF AUDIT PLAN FOR CALENDAR YEAR 2020

Ms. Fish discussed the 2020 audit plan which the Committee had been provided in advance. She reminded the Committee that the audit plan outlined the breadth of planned audit activities across the Purdue system and was designed with flexibility to facilitate unanticipated strategic or operational initiatives. In response to a question from Trustee Spurgeon, Ms. Fish stated she was confident in the skill sets and credentials of the seven members of the Internal Audit Office staff. A copy of the audit plan was filed with the minutes; no Committee action was required.

IV. ADJOURNMENT

By consent, the meeting adjourned at 9:40 a.m.

V. EXECUTIVE SESSION

The Committee briefly met with Ms. Fish in an executive session which convened at 11:30 a.m. upon the adjournment of the stated meeting of the Board of Trustees. Pursuant to IC 5-14-1.5-6.1(b), it is hereby certified that the session was for discussion purposes only and any formal action would be deferred to a future public meeting.