A man could face prosecution in connection with money allegedly missing from Dartmouth's Inn Theatre Company.

The popular Shakespeare company says the loss of the cash – some of which was earmarked for local charities – has wrecked its plans to 'push the boat out' to celebrate its 10th birthday this year.

And if bad weather hits ticket sales for this year's outdoor production of Twelfth Night at Dartmouth Castle in August, it could put the future of the company at risk.

The man, in his 50s and from Dartmouth, was questioned by police at Newton Abbot earlier this year over the allegations.

This week a police spokesman confirmed they have put together a file which has been sent to the Crown Prosecution Service to decide whether a prosecution should follow.

Inn Theatre Company company manager Jane Windsor-Smith confirmed police were called in February after she became suspicious over theatre company bank statements.

'We get money from sponsors and from advertisers and the people who come to see the plays,' she said.

'We all work voluntarily and the money that we have is for the next production but we always give some to charity.

'Over the years we have given thousands of pounds to local organisations.

'The problem with outdoor Shakespeare productions is that we are totally dependent on the weather. We may be all right.

'We got funds from advertising and sponsorship this year but if it was to pour with rain and no tickets were sold we could be in a very difficult situation.'

She said the theatre company had been hoping to make more of this year's production with more events going on around the show to celebrate the company's 10th birthday.

'We were hoping to really push the boat out and have a lot more going on in town but we have not got the finances and that is a disappointment.'

She said that although committee members were aware of the police investigation the rest of its members had not been told. 'It was something that we did not want to draw attention to until it was all sorted out,' she added.

She said she had gone to the police when she realised something appeared to be wrong with the company's finances.

'I had my suspicions about not having quite as much money in the bank as expected and asked for a copy of the statements. Some things jumped out at me and I queried them with the bank,' she said.

The theatre group launched its annual Shakespeare Week in the town 10 years ago to stage productions in the open-air venue outside the castle.

In that time the company's team of actors and backstage experts have put on the Bard's classics such as The Taming of the Shrew, Merchant of Venice, Romeo and Juliet and Macbeth.

Last year the company shared out £1,500 among local charities, including the Parkinson's Cafe Support Group run by Dartmouth Caring; the Homeless Trust of Dartmouth; Dart Area Landscape Access Group, working to create a footpath to celebrate the Queen's Diamond Jubilee; Dartmouth Community Bookshop; Children's Hospice South West, and St Petrox Church in Dartmouth.