What Board Members Should Ask Every Month
and What “Good” Answers Look Like
Boards exist for stewardship. Not to run the organization—but to ensure it is being run well, with appropriate oversight, discipline, and foresight.
Yet in many charter schools, nonprofits, and founder-led organizations with an active board, monthly financial reporting becomes a ritual instead of a governance tool. Leaders present a packet. A few questions get asked. Everyone nods. The meeting moves on.
That pattern is not a failure of effort. It is a failure of structure.
The best boards do not “understand every line item.” They consistently ask the right questions—questions that surface risk early, clarify tradeoffs, and force decision-grade answers. They do it in a way that supports management, not undermines it.
This article gives you a practical monthly board question set, organized by theme, with examples of what strong answers sound like. It is designed for board members with a basic finance understanding who want to govern well without turning meetings into audits.
A healthy board focuses on:
Financial sustainability
Risk oversight
Strategic alignment
Performance against plan
Leadership accountability
A board should not:
Micromanage operations
Debate minor spending decisions
Rebuild the budget in a meeting
Treat financial review as a compliance check-the-box
Monthly governance is about early detection and good decision-making. Think of your questions as a system that keeps the organization stable and intentional.
The Board’s 15 Monthly Questions that matter most
You do not need to ask all of these every month. A high-functioning board cycles through them, emphasizing what matters based on the season, risk profile, and current strategic initiatives.
#1. Are we on track versus budget—and why?
What to ask:
Are we ahead or behind plan year-to-date? What are the top drivers?
Which variances are timing-related versus structural?
What a good answer looks like:
We are behind budget by $120K YTD, primarily due to enrollment being 18 students under plan (approximately $135K impact). On expenses, we are slightly favorable due to hiring delays in two roles. This is not just timing—we are modeling the enrollment shortfall as structural for the remainder of the year unless two pipeline cohorts convert by January 15. We will re-forecast next month if those triggers don’t hit.
Why it matters: Boards should not accept “we’re a little off” without drivers and outlook. Variances are only useful if they lead to action.
#2. What is our year-end forecast—and what assumptions changed?
What to ask:
If the year ended today, where would we land—and why?
What assumptions have changed since the budget was approved?
What a good answer looks like:
Our current forecast shows a $90K deficit at year-end, versus a balanced budget. The two drivers are lower revenue (enrollment) and higher contracted services. We have updated assumptions: enrollment is now projected at 612 versus the budgeted 630, and vendor costs increased 8% at renewal. We are evaluating three mitigation levers: staffing mix changes, discretionary spend controls, and timing of two planned purchases.
Why it matters: Budgets are plans. Forecasts are reality. Boards govern reality.
#3. How much cash do we have—and how long does it last?
What to ask:
What are days cash on hand today? What does it look like 90 days out?
What are the biggest cash timing risks?
What a good answer looks like:
We have 68 days cash on hand today. Our 13-week cash forecast shows a dip to 52 days in late February due to insurance renewal, annual software payments, and timing of a state payment. We have a mitigation plan: delay nonessential purchases until March, accelerate two receivable collections, and confirm the February payment schedule by next week.
Why it matters: Cash is the earliest warning system you have. Strong boards make cash visibility non-negotiable.
#4. Are we facing any near-term liquidity crunches?
What to ask:
Is there any month in the next quarter where we risk missing obligations?
Do we expect to use the line of credit? If so, why and for how long?
What a good answer looks like:
No immediate crunch risk, but we anticipate drawing $75K on the line of credit for two weeks due to grant reimbursement timing. This is a timing issue, not an operating deficit. We will repay it as soon as the reimbursement hits and are working with the funder to improve predictability.
Why it matters: Not all borrowing is bad. Boards should distinguish timing issues from structural distress.
#5. What are the top three financial risks right now?
What to ask:
What could hit us hardest in the next 6–12 months?
What is the mitigation plan for each risk?
What a good answer looks like:
Top risks: (1) Enrollment volatility—mitigation is a rolling pipeline report and trigger-based staffing plan; (2) Staffing cost inflation—mitigation is pay band review and staffing ratios; (3) Facilities exposure—mitigation is renegotiation of two contracts and a capital plan update. Each risk has an owner and timeline.
Why it matters: Boards should not be surprised. Risk is manageable when it is visible early.
#6. Are there any structural deficits emerging?
What to ask:
Are we consistently spending more than we bring in?
If yes, is the gap increasing, stable, or shrinking?
What a good answer looks like:
We are currently running a structural gap of ~$12K per month driven by staffing ratios and contracted services. Without intervention, it will total ~$144K annually. We have identified $80K of cost reductions and $50K of revenue improvement initiatives; the remaining gap will require board-level choices on program scope or staffing model.
Why it matters: Structural deficits don’t fix themselves. Boards must force clarity and tradeoffs.
#7. What is driving our revenue/funding performance?
What to ask:
What is driving enrollment or funding changes?
How are grants performing against timing and restrictions?
What a good answer looks like:
Revenue is on plan overall, but mix has shifted: higher volume in lower-margin offerings. Our gross margin percentage is down from 42% to 37%. We are adjusting pricing and refocusing sales efforts on the top two offerings that contribute 70% of gross profit.
Why it matters: Boards should govern for sustainability, not just volume.
#8. Are we investing in the right things—and can we afford them?
What to ask:
What are the major investments we’re making this quarter?
What is the expected return or impact, and how will we measure it?
What a good answer looks like:
We are investing $110K in a new program initiative with expected outcomes: improved retention and an estimated $160K annual funding impact if enrollment stabilizes. We will track enrollment retention monthly and report outcomes by March. If KPIs are not trending by February, we will pause the second phase.
Why it matters: Boards should insist that investments have hypotheses, metrics, and stop-loss mechanisms.
#9. Are fixed costs increasing faster than revenue?
What to ask:
What portion of our expenses are fixed versus variable?
How has that mix changed over the last 12 months?
What a good answer looks like:
Fixed costs have increased from 61% to 69% of the expense base due to leases and salaried hires. That increases fragility. We are offsetting by tightening discretionary spend and building a contingency reserve.
Why it matters: Fixed costs reduce flexibility. Boards should track this explicitly.
#10. What is happening with headcount and staffing ratios?
What to ask:
Are staffing levels aligned with current demand/enrollment?
Do we have productivity or utilization metrics?
What a good answer looks like:
We are holding headcount flat through Q2 because utilization is 72% versus the target of 80%. We have a plan to improve scheduling efficiency and reduce overtime, and we will not approve net new hires until utilization exceeds 78% for two consecutive months.
Why it matters: Staffing is often the largest cost. Boards should oversee staffing discipline without micromanaging individual roles.
#11. Are there any compliance, audit, or controls issues we should know about?
What to ask:
Any control weaknesses, audit findings, or unusual transactions?
Any risks related to procurement, payroll, or restricted funds?
What a good answer looks like:
No material findings, but we identified a procurement gap: approvals were inconsistent for purchases over $5K. We have implemented a revised approval workflow and will report compliance rates next month. For restricted funds, we are tracking burn rates and maintaining documentation for reimbursement.
Why it matters: Boards have fiduciary responsibility. Controls issues can become reputational and financial risks quickly.
#12. How are we performing against our strategic priorities?
What to ask:
Which strategic initiatives are on track, off track, or at risk?
What is the financial impact of each initiative?
What a good answer looks like:
Two initiatives are on track; one is at risk due to vendor delays. Financial impact: the delayed initiative pushes expected savings from Q2 to Q3. We are renegotiating contract terms and exploring a backup vendor.
Why it matters: Boards should govern strategy execution, not just financial statements.
#13. What decisions do you need from the board this month?
What to ask:
What approvals, policy decisions, or strategic choices are needed?
What happens if we defer the decision?
What a good answer looks like:
We need approval to reallocate $60K from discretionary spending into facilities remediation. If we delay, we risk higher repair costs and potential operational disruption. Alternative: phase the remediation over two quarters, but that increases risk exposure.
Why it matters: Boards add value when they make timely, informed decisions. Management should not bury the ask.
#14. What is our contingency plan if things go sideways?
What to ask:
If revenue drops 5–10% or enrollment softens, what is our plan?
What levers can we pull quickly?
What a good answer looks like:
We have a downside scenario modeled at 7% revenue reduction. The plan includes a hiring freeze, renegotiation of two contracts, pausing one initiative, and reducing discretionary spend by 15%. Triggers: if revenue is below plan for two consecutive months, we implement Phase 1 immediately.
Why it matters: Boards should not wait for a crisis to talk about crisis plans.
#15. Are we building financial resilience, or just making it through?
What to ask:
Are reserves increasing, stable, or declining?
Are we strengthening the balance sheet over time?
What a good answer looks like:
We are projecting a modest reserve rebuild this year, adding ~$80K to unrestricted reserves. Our target is to reach 90 days cash on hand over the next 18 months by maintaining operating surpluses, tightening working capital, and limiting fixed-cost growth.
Why it matters: Resilience is a strategic advantage. Boards should measure it intentionally.
How to use this in your board meetings
If you want to make this actionable immediately, here is a simple structure:
Ask 3 questions every month (always):
Are we on track vs budget and forecast?
What is cash today and 90 days out?
What are the top 3 risks and mitigations?
Rotate 3–5 additional questions based on season and priorities:
Budget season: assumptions, staffing plan, fixed costs, scenario triggers
Audit season: controls, compliance, unusual items
Growth season: investments, ROI, staffing capacity, margin by stream
The goal is not more questions. The goal is consistent governance pressure in the right places.
A final word: strong answers have four qualities. When management is operating with financial leadership, “good answers” share the same DNA:
Specific: numbers, drivers, and clear comparisons
Forward-looking: forecast, scenarios, timing
Action-oriented: decisions and owners
Transparent: risks named early, not later
If your board is not receiving answers in this form, it is not because the organization is unhealthy. It is usually because finance is not structured to produce decision-grade information.
That is fixable—and it is often the fastest way to improve governance, stability, and strategic execution.
If your board wants a clearer monthly financial narrative, a rolling forecast discipline, and a board packet that actually supports governance, Francis Royce builds that operating system—without adding unnecessary complexity.