RCMP are investigating how $12,000 in cash earmarked for a spring carnival had disappeared on a 200-kilometre flight between Yellowknife and Lutsel K'e, N.W.T.

Lutsel K'e spring carnival committee members and band councillors were briefed by band staff Thursday about the missing money, sources at the meeting told CBC News.

They were told that Chief Adeline Jonasson had picked up a package containing $19,000 on Wednesday afternoon and put it on a plane heading to the community. When the flight arrived, $12,000 was missing.

RCMP confirmed Friday that an investigation was underway but did not release any details. An RCMP unit in Yellowknife is assisting with the local investigation.

Lutsel K'e, which has a population of about 400, is located on the south shore of the east arm on Great Slave Lake.