Generally Accepted Accounting Principles (GAAP) are the established accounting standards and reporting guidelines used throughout the United States to promote consistency, accuracy, and transparency in financial reporting. These principles provide a common framework for recording, presenting, and communicating financial information, enabling stakeholders to make informed decisions based on reliable and comparable data.
For public colleges and universities, GAAP is implemented through standards issued by the Governmental Accounting Standards Board (GASB). As a member of the California State University system, California State University, Bakersfield (CSUB) prepares its financial reports in accordance with applicable GASB requirements.
Why GAAP Matters
Adherence to GAAP and GASB standards helps ensure that financial information is:
- Accurate and complete, reflecting the university’s financial position and activities
- Consistent over time, enabling meaningful year-to-year analysis
- Transparent and understandable, enhancing trust and confidence in reported information
- Comparable across institutions, supporting benchmarking and external evaluation
- Decision-useful, providing reliable information for strategic planning and resource allocation
- Accountable to stakeholders, including students, employees, taxpayers, donors, regulators, and system leadership
By establishing common reporting standards, GAAP strengthens financial stewardship and promotes confidence in how public resources are managed and utilized.
Understanding Non-GAAP Information
In some circumstances, supplemental financial information may be presented to provide additional operational or management insight. These measures, commonly referred to as non-GAAP measures, are not a substitute for official financial statements prepared under GASB standards.
When supplemental information is provided, it should be:
- Clearly identified and explained
- Consistently prepared
- Presented alongside official financial reporting
- Used to enhance, rather than replace, GAAP-based information
Official university financial statements and required reports remain grounded in applicable GASB standards.
Our Commitment to Financial Excellence and Student Success
At California State University, Bakersfield (CSUB), financial integrity, transparency, and accountability are essential to responsible stewardship of public resources and, most importantly, to supporting student success. Through adherence to GAAP and applicable GASB standards, the university provides accurate, consistent, and reliable financial information that helps ensure resources are managed effectively in support of teaching, learning, student services, and institutional priorities.
CSUB's commitment to excellence in financial reporting was recognized in 2026 when the university was acknowledged as the leading campus in the California State University system for GAAP reporting. This distinction reflects the university's dedication to high-quality financial reporting, strong internal controls, accurate recordkeeping, and responsible oversight.
By upholding these standards, CSUB strengthens accountability and transparency, ensuring that every dollar entrusted to the university is managed responsibly to advance student achievement, support campus excellence, and fulfill the university's mission.
