How do you tell an extroverted accountant from an introverted one?
The extrovert looks at your shoes when he’s talking.
That doesn’t really have much to do with the topic of this column, but it’s one of my favorite jokes – and well, I couldn’t resist. After all, every column deserves a strong opening… even one about financial transparency.
Now, let’s get down to business.
Since joining the Finance and Communications Committees, I’ve heard “transparency” come up more times than golfers complain about slow play. Members call for it, management works hard to deliver it, and yet the conversation keeps circling back – kind of like a well-meaning drone pilot who hasn’t quite mastered the controls.
Management and the Board consistently post financial statements on the website, invite independent accountants to make open presentations, and use email and newsletters to share important updates. Yet, despite those efforts, a steady stream of questions and complaints about “transparency” continues.
In this author’s perhaps unpopular opinion, a few folks simply enjoy the art of complaining – it’s their cardio. That said, it’s worth exploring what “transparency” looks like in practice, especially for a Florida non-profit organization like Heritage Palms.
From my experience, real transparency rests on three pillars: good governance, public disclosure, and effective communication.
Governance
Good governance begins with Board members who understand – and faithfully honor – their fiduciary duties. In plain English, that means acting in the best interests of the organization, not personal preference or convenience.
The Board is responsible for establishing internal controls that help prevent and detect any misuse of funds. Strong Boards also have strict conflict-of-interest policies and actually follow them (imagine that).
Board member affiliations and executive compensation policies should be posted on the website. Financial statements and tax returns are reviewed in draft form before final approval, and both are made available to members. Transparency, after all, isn’t a one-time act – it’s a habit.
Public Disclosure
The guiding principle here is simple: the organization’s finances are the business of its members. I mean, well you know, they are the ones paying the bills.
Monthly and annual financial statements, independent auditor reports (covering both the fairness of the statements and internal controls), and tax filings should all be disclosed – and in many cases, posted online.
Any management discussion and analysis should be written in clear, understandable language. Numbers are great, but they need context to tell a story. Presenting multiple years of data is also invaluable – it reveals financial trends, both positive and concerning, that may require Board action. Think of it as the organization’s “flight path” – it’s good to know not just where you are, but where you’re headed.
Communication
Here’s where the rubber really meets the runway.
Communication isn’t just about sending information – it’s about making sure it lands safely on the other end. That means the sender bears a lot of responsibility.
Honesty, consistency, and feedback are the cornerstones of effective communication. Clarity matters. Boards and management teams should respect the intelligence and experience of their members, but also avoid assuming everyone is fluent in “accountant.” (If you’ve ever nodded through a presentation that mentioned “EBITDA” without wanting to admit you weren’t sure which vowel came first – you get the point.)
Plain language, timely updates, and a willingness to listen, go a long way toward building trust and understanding.
Wrapping Up
While every organization can improve, I believe the Heritage Palms Board of Directors and management already do much of this quite well. At the very least, there’s a genuine good-faith effort to achieve meaningful financial transparency – and that’s something worth recognizing.
And finally, have you heard the one about the “fun accountant.” Yeah, neither have I. Now, enjoy your EBITDA and I’ll see you next time.
