Auditor-General Lyn Provost says funds for the building of Te Raukura, a boathouse on Wellington's waterfront, were spend appropriately and she won't investigate further.
Some $7 million was confirmed in Vote Maori Affairs in Budget 2008 for the construction of the wharewaka.
The Crown provided some funds for building the wharewaka to a trust that works with Wellington Waterfront Ltd - a council-controlled organisation owned by Wellington City Council.
It found Te Puni Kokiri took appropriate steps to make sure funding for the wharewaka went to a legal entity.
The Office of the Auditor-General said the matter was investigated from documents from Te Puni Kokiri and the Office of Treaty Settlements