A report into alleged financial irregularities at the Marino Institute of Education (MIE) has found no evidence of wrongdoing.
The PriceWaterhouseCoopers report said it had not identified any instances where State funds were misused but said shortcomings existed in the way MIE reported its finances.
In April this year the former head of Coláiste Mhuire, the teacher training facility at MIE, resigned her post after settling her High Court action against the college.
Caoimhe Máirtín said she had been the victim of bullying and intimidation at the Christian Brothers-run college.
The Minister for Education Mary Hanafin announced an inquiry in May following allegations that some of the Institute's annual €4.5 million State subsidy had been misused, a charge MIE denied.
Today's report says any surpluses accumulated in the years under review were either spent on equipment or included in the cash balance held by MIE - which stood at €4.3 million at the end of April this year.
MIE today welcomed the report's findings saying its position had been vindicated.
Sister Bernadette MacMahon, chairperson of the Governing Body of MIE said: "The report's findings regarding financial reporting procedures and requirements are constructive and should result in improved quality of information between the Colleges of Education and the Department of Education and Science."
Ms Hanafin said she was pleased with the assurances from the MIE Trustees that surpluses at the College would continue to be applied for the purposes of teacher training.
She said: "It is important that mechanisms are in place to ensure accountability of funding in a clear and transparent manner.
A central feature of the controversy was the failure of MIE to provide financial disclosure.
The report said the College's Governing Body does not receive detailed and complete financial information.
It also said there was "no meaningful divisional management accounts prepared as all site overhead costs are incurred".
It recommended resources be put in place to ensure that MIE has appropriate systems for its size and that financial information be prepared on a timely basis.
