Police officers are now in talks with prosecutors as part of their probe into a "governance issue" at Uttlesford District Council.
Essex Police, which began probing an "internal" process at Uttlesford District Council in December 2020, said it is consulting with the Crown Prosecution Service as part of its investigation.
The probe follows an incident in 2020, when Uttlesford District Council could not sign off its 2019/20 accounts before its deadline due to a "governance issue".
An Essex Police spokesperson said: "Officers in the case are in ongoing consultation with the Crown Prosecution Service regarding a matter relating to Uttlesford District Council.
"This is a complex investigation and enquiries into matters of this nature can take time."
Essex Police did not say whether they suspected any crimes had been committed at the council.
The council turned over information to Essex Police in December 2020 to aid the investigation.
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