A woman has been reported to the fiscal in connection with allegations that more than £15,000 was taken from a primary school fund.
The 25-year-old is understood to have been working as a clerical assistant at the Highland school when the alleged fraud took place.
But it may have gone undetected for a year – and only came to light when there were insufficient funds for the school to pay an invoice for a trip.
Internal investigations revealed that at least £15,500 had gone missing from the school funds over the course of a year.
The incident was reported to police in November last year.
The clerical assistant is understood to have been sacked by the council on July 16 following a disciplinary hearing.
Police and the council have refused to reveal which school was involved.
A police spokesman said: “Police Scotland can confirm that a 25-year-old woman has been reported to the procurator fiscal for alleged fraud offences at a primary school, following a report received on Friday November 22, 2013.”
A similar statement was issued by Highland Council and the local authority refused to comment any further.
The council’s audit and scrutiny committee had been due to discuss the issue at its meeting on Wednesday.
However, when it was revealed that criminal proceedings had been launched, the item was taken off the agenda.
It is understood that the council’s auditors were asked to look into the issue when the discrepancy came to light.