Risk Coverage Fee
The Risk Coverage Fee is a charge for insurance provided by the CSU Risk Management Authority (CSURMA). It covers Workers' Compensation, Industrial Liability, Non-Industrial Liability, Unemployment and Risk Liability costs.
In addition to the automatic exemptions already described, the Risk Coverage Fee will not be charged to Specific operations that carry their own insurance (e.g., construction project contracts and auxiliary organizations, such as Spartan Shops), nor to mandatory campus fees (category II fees).
The Risk Coverage Fee is posted by Accounting Services on a quarterly basis, and will appear as an expenditure in account 660010-Insurance Expense. The fee is calculated as 1% of all expenditures posted during a 12-month period between June 1 and May 31. Each quarter, the Risk Coverage Fee is calculated as 1% of year-to-date expenses, and then any Risk Coverage fees assessed in prior quarters of the current year are deducted. The quarters end on August 31, November 30, February 28 and May 31. Encumbrances and Transfer Out expenditure accounts (accounts starting with "670") are excluded from the 1% calculation.
Note that the 1% Risk Coverage Fee rate is recalculated each fiscal year and may change depending upon changes in the risk premiums charged to the University.