Strengthening TPA Muthia Islamic School Financial Management through SAK ETAP-Based Financial Reporting

Abstract

Purposes: This community service aims to improve the quality of financial reporting at Qur’anic Learning Center (TPA) Muthia Islamic School by introducing and implementing financial reporting practices based on Indonesian Financial Accounting Standards for Entities without Public Accountability (SAK ETAP). Specifically, it seeks to enhance the competence of administrative and financial staff in preparing financial statements that meet transparency and accountability principles.

Design/Methodology/Approach: This community serivice employed a training-and-mentoring approach. The initial stage involved training sessions to introduce participants to the concepts and standards of SAK ETAP, including techniques for preparing financial statements. The subsequent stage consisted of hands-on mentoring to guide participants in independently preparing financial reports in accordance with SAK ETAP requirements.

Findings: Prior to the intervention, TPA Muthia Islamic School prepared only simple cash inflow and outflow records and did not produce complete financial statements, such as a Balance Sheet and Income Statement. The primary challenge identified was the lack of competent human resources capable of preparing financial reports in line with SAK ETAP standards. Through training and mentoring, staff gained a better understanding of SAK ETAP and improved their ability to prepare standardized financial reports.

Originality/Value: It contributes practically by addressing the gap in financial reporting practices within non-profit educational foundations categorized as Entities Without Public Accountability. It highlights the importance of capacity building through structured training and mentoring to ensure compliance with SAK ETAP and to promote transparency and accountability in non-profit educational institutions.