A new executive director's first 90 days with the finances.

A new executive director inherits a set of books, a budget someone else built, and a board that expects them to know the numbers almost immediately.

Days 1 to 30: get the facts

• Cash. How much is in the bank today, how much of it is restricted versus available for operations, how many months of expenses the unrestricted portion covers, and what is coming in and going out over the next 90 days.
• The last audit. Read the financial statements and, more importantly, the management letter. It lists what the auditor thought was weak.
• Restricted funds. Which funds carry donor restrictions, what they are for, whether spending has matched, and when major grants end. Know the funding cliffs ahead.
• The development pipeline. Sit down with the development team early. Finance only knows as much as development shares, so the revenue forecast is only as good as that conversation.
• Who does what. Who keeps the books, who approves payments, who signs, and what an outside accountant or payroll provider handles.
• The filing calendar. The annual information return, state charity registrations, payroll filings and grant reports, with their due dates.

Days 31 to 60: test what you were told

• Compare the budget to actual results for the year to date, and ask why the largest differences exist.
• Check that the monthly statements are produced on time and that the bank accounts reconcile. Late or unreconciled statements are the most common early warning sign.
• Look for surprises: overdue filings, unpaid payroll taxes, balances owed to or from a related organization, or grant money spent before it was received.

Days 61 to 90: set your baseline

• Decide what the board will see each month and agree on it with the finance committee chair.
• Plan the next budget on your own assumptions, not the previous director's.
• Separate what needs fixing now from what can wait, and say so to the board. A clear inventory early protects a new leader later.

Five questions to ask your finance staff

1. When were the bank accounts last reconciled, and by whom?
2. What did the auditor raise last year, and what has been done about it?
3. Which grants have reporting or spending deadlines in the next six months?
4. Is anything owed to a tax authority, a vendor or a funder that is past due?
5. If you were in my seat, what would worry you about the finances?

Lei Advisory works with new executive directors to give them a clear read of the finances in their first months, through a finance assessment or as an interim or fractional CFO.