The employee worked at the cooperative educational services in Turtle Lake where, according to administrator Bob Rickal, she may have embezzled funds from a state grant for the last five years.
Cesa officials were alerted to the scheme this September when a call came in questioning a check written to an area business.
Rickal says despite yearly audits, nothing ever came up missing.
"Nothing was ever discovered through the audit process and quite frankly on the part of myself or my other employees, particularly those who worked in the bookkeeping department."
The employee in question has not yet been charged in the case. Rickal says he expects it will take at least six months before investigators finish their work.