The new chairman of Welcome to Yorkshire says the tourism agency previously operated under a culture of "spend now, worry about it later".
Peter Box released two reports this afternoon - one looking into the organisation's finances, and another at its future.
One, dated 29 August, said without a £500,000 loan from North Yorkshire County Council and another £1m investment "Welcome to Yorkshire will run out of cash by November at the latest".
The second revealed, among other matters, it spent £250,000 on its display at this year's Chelsea Flower Show - more than three times the £80,000 it had budgeted.
Former chief executive Sir Gary Verity resigned in March on health grounds, but later faced complaints about his behaviour and expenses.
It’s clear to me, from reading both reports that governance and strategic oversight of the operations have been largely absent. Financial planning was not robust enough which led to a culture of spend now, worry about it later."