POLICE have appealed to shoppers visiting Freshney Place in Grimsby who may have seen an envelope containing around £1,200.
The money belongs to Humberston Parish Council and was lost on the way to a bank in Grimsby's Top Town.
A spokeswoman for the council said it was unclear if the money had been mislaid or stolen.
Parish councillors were told it was lost on the way to a bank.
The money was raised from the use of allotments.
An item appeared on the parish council agenda highlighting "money lost in transit".
A Humberside Police spokeswoman appealed for the public's help in tracing the cash.
She asked for anyone who had seen it lying around or noticed it being taken to contact police.
Anyone with information about the missing parish council money was asked to contact Humberside Police.
The spokeswoman said: "Cash is thought to have been stolen from a woman's bag.
"The woman left her home address with cash in her bag to pay in at the bank.
"She visited a number of shops and when she went to pay the money in, she noticed that it was missing."
The spokeswoman added: "At this time it is not known when or where the cash was stolen, or if it was stolen or misplaced.
"Enquiries have been conducted and at this time it has not been established how the cash went missing."
She said the woman noticed the cash had gone missing at around 11am on March 17 when she visited the bank.
A spokesman for the parish council said: "This matter has been placed on the parish council's agenda quite openly at its last two meetings and in the agendas which are published to the public, and the council has dealt with this matter through its official protocols and procedures in liaison with the local police.
"The parish council's insurers are satisfied that all necessary procedures are in place and have been followed."
Anyone with information should call Humberside Police quoting incident number AA2032992/2014.
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