An fraud investigation into a Hamilton daycare reveals cooked books put the childcare providers out more than $140,000 over a two-year period.

Police say a woman with almost exclusive access to the daycare's finances, is alleged to have funnelled out the funds, mostly in cash.

"It came down to one person having exclusive opportunity to take cash and manipulate the books," said Detective Constable Steve Lassaline.

The director of the Paradise Corner Children’s Centre, at Upper Paradise and Rymal Road went to police in February, after firing the former employee alleged in the fraud charges.

Lassaline said the woman charged had been an employee for some 20 years, and the other staff felt "a great sense of betrayal"

He said the daycare was not-for-profit that takes care of roughly two dozen children on any given week. The small outfit was the result of several private daycare providers pooling together to create their own childcare centre.

Lassaline said the funds were not recovered in the investigation by Hamilton Police.

He added that since the charges were laid last week, the daycare has had, "a better sense of closure and they're ale to move forward."

A Hamilton woman has been arrested and charged with fraud. She has been released on a promise to appear in court at a future date.