A meeting of the Audit and Risk Management Committee of the Board of Trustees convened at 9:26 a.m. Friday, October 2, 2020, at Purdue Polytechnic High School Englewood, located at 3029 E. Washington Street in Indianapolis. In adherence to the Protect Purdue policies amid the ongoing COVID-19 pandemic, everyone in the room was wearing a mask and restrictions were placed on the number of visitors in the room. Members of the media and the public who wished to observe the meeting virtually were provided such instructions.

All members of the Committee were present in person or, where specifically noted, by means of electronic communication pursuant to the Electronic Meeting Policy: Vanessa Castagna, chair; JoAnn Brouillette (virtually); and Theresa Carter. All other trustees were present: Sonny Beck; Michael Berghoff; Malcolm DeKryger; 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, chief financial officer and treasurer; Jim Almond, senior vice president, assistant treasurer, and assistant secretary; Steve Schultz, general counsel; Janice Indrutz, corporate secretary and senior executive assistant to the Board; and Ron Elsenbaumer, chancellor, Purdue University Fort Wayne (virtually).

I. APPROVAL OF MINUTES

Upon proper motion duly made and seconded, the Committee voted unanimously to approve the minutes of its February 7, 2020, meeting.

II. APPROVAL TO RENEW PROPERTY INSURANCE POLICY

Mr. Steve Schultz, general counsel, reminded the Committee that the university financed its risk management program through a combination of self-insurance (retention) and insurance coverages obtained from third-party carriers. He explained that, over the last five years, the university had benefitted from a strategy proposed in 2015 by the Office of Risk Management and approved by former treasurer Bill Sullivan to lock in property insurance premiums. This had allowed the university to avoid the steadily rising premiums experienced by peer institutions. However, that premium level had expired at the end of the current insurance year (September 30, 2020). Mr. Schultz noted that, in seeking to renew property insurance coverages in a turbulent market created by the COVID-19 pandemic and recent social unrest, the most favorable annual premium rates available to the university, after a competitive bidding process, had exceeded $2,000,000 for the first time. Mr. Schultz stated that, although Board approval was not typically required for procuring insurance, ratification of the new property insurance coverage was prudent given this significant premium increase for the 2020-2021 insurance year. Trustee Carter observed that, despite the challenging economic environment, there was, unfortunately, no alternative to obtaining viable coverage.

After further discussion, and upon proper motion duly made and seconded, the Audit and Risk Management Committee voted unanimously to recommend full Board ratification of the procurement of the property insurance program for the 2020-2021 insurance year on the terms discussed at this meeting. A supporting document was filed with the minutes.

III. ADJOURNMENT

By consent, the meeting adjourned at 9:32 a.m.