Police say there is “no direct evidence” of fraud by a former chairman of Holbeach Youth and Sports Social Club chairman.
Instead, they say John Spencer, who stepped down as chairman of Holbeach Parish Council during the investigation, is guilty of nothing more than poor management.
Investigations started after it came to light last year that the club owed about £54,500.
Police said there is “no direct evidence within records to show that any money is being siphoned off”.
Mr Spencer was chairman of the club from 2009 to September last year when the committee resigned en bloc.
Holbeach United Football Club, which was run as a separate entity, said: “During his time as the chairman, the [social] club went from a position of having £18,500 in the bank to a situation where it had no assets but creditors to which it owes £54,500.
“Without till receipts and function diaries that could assist in establishing whether or not there was any wrongdoing the police concluded that there is no chance of proving any criminal wrongdoing and we must therefore accept that finding.
“Overall therefore it would seem that poor financial management has tarnished the name of the club.”
