A meeting of the Audit and Enterprise Risk Committee of the Board of Trustees convened at 9:36 a.m. Friday, October 6, 2023, 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. Other trustees in attendance were: Sonny Beck; Michael Berghoff; Kevin Boes; Malcolm DeKryger; and Michael Klipsch; Gary Lehman and Shawn Taylor.

Officers and administrators in attendance were: Mung Chiang, president; Patrick Wolfe, 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, senior vice president and general counsel; Cindy Ream, corporate secretary and senior executive assistant to the Board; and Ron Elsenbaumer, chancellor, Purdue University Fort Wayne.

I. (SW) APPROVAL TO RENEW PROPERTY INSURANCE POLICY*

General counsel Steve Schultz and Chris Ruhl, chief financial officer and treasurer shared that under Mark Kebert’s leadership, the Office of Risk Management, works diligently to renew insurance coverages in a continuing difficult market. The Office of Risk Management reports the property insurance quoted by our incumbent underwriter, FM Global, remains the most cost-effective program with the greatest breadth of coverage. The policy terms are substantially the same as those in the expiring contract and include $1.5 billion in coverage, retention of $750,000 powerplant and $500,000 other, for a total premium of $4,160,000.00 This reflects a rate increase of 3.99% over the expiring rate for the past year. The Property Insurance Policy exceeds the $2,000,000.00 threshold and therefore requires approval from the committee and ratification by the full board. Supporting materials were filed with the minutes.

Upon proper motion duly made and seconded, the Audit and Enterprise Risk Committee voted unanimously to recommend full Board approval for the renewal of property insurance policy.

By consent, the meeting adjourned at 9:39 a.m.