The ORFU's annual meeting is scheduled for next month and Graham confirmed the union would report a loss - "and we can't afford a loss" - but he could not say how much it would be as the financial accounts had not been finalised.
"But I think it is no secret that our financial position is very tender at the moment. With what has happened over a period of time, we have to be really watching our pennies," Graham said.
He confirmed the union had received assistance from New Zealand Rugby Union staff.
"Things are extremely tight at the moment and we are working through it as quickly as we can. But we want to make sure we have the true picture and then work on a recovery plan."
Graham said the situation was serious and the union was still working hard but "it is not going to be an easy road we face".
"We have always said we wanted to go down to the stadium with a clean slate and no hangover from Carisbrook."
The union has consistently recorded losses in recent years, including a $51,000 cash loss last year and more than $750,000 the previous year, although that was mainly depreciation on Carisbrook.
At last year's annual meeting, then ORFU general manager Richard Reid warned of tough financial times ahead. He has since left the union.
Staffing levels have dropped significantly in the past five years, from 36 in 2006 to 14 last November when Reid left.
By then the union had instigated talks with Dunedin Venue Management Ltd (DVML) about running the commercial operations of the union. If that eventuates the union will employ half a dozen people, all in rugby operational matters.
Talks are continuing between the two parties, although the union has gone ahead and relocated to new offices in the south stand at Forsyth Barr Stadium.
The union had planned to advertise for a rugby director to manage all rugby-related matters for the union but that had been put on hold, Graham said, until an agreement was reached with DVML.