Mentoring and Preparation of Financial Reports Based on Financial Accounting Standards at Stikes Nusantara in Kupang City

Abstract

Transparent and accountable financial management is a cornerstone of sustainability for private higher education institutions (PTS). The Nusantara College of Health Sciences (STIKES) faces financial management challenges due to its reliance on a single, semi-manual accounting system based on simple spreadsheet worksheets that have not been adapted to the Financial Accounting Standards (SAK) for nonprofit organizations. The implications include a high risk of material misstatements and delays in preparing reports for national accreditation forms. This Community Service Program (PkM) aims to provide conceptual understanding and practical guidance on the reconstruction of standardized financial reports. The implementation method employs a participatory action coaching strategy through three integrated stages: preparation via a situational audit, implementation through mini-workshops and paired journaling labs, and evaluation based on quantitative performance assessment instruments. The results of the activity demonstrated the successful preparation of three draft core financial statements (Statement of Financial Position, Statement of Activities, and Direct Method Cash Flow Statement). In addition, there was a significant increase in the financial competency index of the partner’s financial staff, with the cumulative average score jumping from 51.6% (pre-test) to 85.0% (post-test). The implications of these findings reinforce readiness for fulfilling formal institutional audit requirements as well as the eligibility for higher education institution accreditation forms.