Officials have found no evidence of wrongdoing by Team New Zealand and its spending of millions of dollars of public funds.
Emirates Team New Zealand chief executive Grant Dalton. Photo: Emirates Team New Zealand
The Ministry of Business, Innovation and Employment suspended payments to the events arm in July after allegations of spying and claims about its finances and management.
Its investigation found none of Team New Zealand boss Grant Dalton's expenses were paid using public funds and there was "no financial impropriety of any nature".
It also found there was no loan from America's Cup Event Limited to Team New Zealand, and no fraud by either.
MBIE also said it was "satisfied that any loss as a result of this scam won't be paid for by any Crown investment".
In a statement, MBIE chief executive Carolyn Tremain said: "While it's excellent to confirm that there has been no financial impropriety and the escalation process has concluded, the Beattie Varley report had raised some concerns around record keeping relating to several historical matters."
MBIE said the Beattie Varley report noted that a contractual disagreement was outstanding. It regarded whether the AC36 Event and Class Design Costs is a cost that should be borne by the event, and therefore by Crown investment.
The parties agreed to go to mediation on this issue, MBIE said.
Tremain said "There is no wrongdoing in this regard and the processes for resolving contractual disagreements is well established and we look forward to continuing to work constructively together on this matter. ETNZ and ACE have a different view from MBIE on whether the AC36 Event and Class Design Costs should be borne by the event...
"It is in all of our interests that we continue to work together to deliver a successful event. Hosts acknowledge the positive progress ACE has made with regard to delivery planning and resourcing. Our expectation is that operational matters will continue to be resolved at the project management level.
"The Crown is satisfied to reinstate investment and once the appropriate contractual deliverables have been met, the next payment under the HVA can be made."
ETNZ and ACE chief executive Grant Dalton said a thorough review of personnel had been undertaken.
"We have the team to deliver on the event. We have engaged experienced and respected senior event professionals to lead the event preparations."
ETNZ chairperson Sir Stephen Tindall said the organisation was pleased to have the issue behind it and able to focus on the America's Cup.