Detectives are investigating alleged financial irregularities at a playgroup near Selby
Police were brought in by Hambleton Play Group officials amid concerns that up to £10,000 could be missing from their coffers.
Detective Constable Pete Masterman, who is leading the investigation, said: "A complaint was made in relation to alleged financial irregularities and this is still being investigated."
He said the inquiry had been ongoing since the start of the year and was "very complicated." No final figure was yet available for the amount of money involved, and no one had been arrested.
A letter sent to parents says: "The committee would like to inform you that a problem has arisen with the finances and is being dealt with in the appropriate manner.
"The playgroup will continue as normal."
One playgroup official declined to comment, saying the matter was in the hands of the police, who were also dealing with all press inquiries.
But one resident, whose child attends the popular playgroup in Hambleton Village Hall, said the police investigation was taking so long it was causing a lot of distress in the village.
He said the strain and pressure on those connected with the group was becoming "intolerable".
"There's a lot of speculation and innuendo, and this matter needs to be cleared up as quickly as possible," he said.
"People are becoming very frustrated by the length of time the police investigation is taking. It's actually making some of them ill."
He added: "The playgroup is very popular and well-run. It's open five days a week and every session is fully booked.
"Kids come from surrounding villages as well as Hambleton because of its good reputation."
DC Masterman defended the time taken to investigate the matter, saying they were in the hands of other people providing them with information.
Detectives are sifting through several boxes of documents and figures, and say most of the work is now done.
In September, 1997, the playgroup was awarded £13,954 from the National Lottery charities fund for extra play sessions.
Updated: 16:12 Tuesday, April 17, 2001
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