Police have launched an investigation into a suspected fraud at Scottish Borders Council - thought to be in its sports department.
It is believed a sum of about £20,000 is unaccounted for.
Internal auditors noticed the financial irregularity earlier this month and a probe, involving Lothian and Borders Police, was launched last week.
SBC leader David Parker said the investigation would not impact on any services.
A police spokesman said they were "currently co-operating with SBC and progressing an inquiry regarding alleged financial irregularity by a staff member".
Finances at the authority were tightened up almost a decade ago after a lack of monitoring procedures led to a £4m overspend by the education department - resulting in major cuts.
Further improvements in recent years have brought in even tighter accountancy checks within all departments.
A spokesperson for Scottish Borders Council said: "A member of staff is the subject of an investigation which is currently under way.
"We cannot provide any further details."