An audit of how the Tongan Government used money from New Zealand and Australia to move towards democracy has found no evidence of fraud.
Foreign Minister Murray McCully says it was alleged in November that the $330,000 the two countries provided to Tonga had been misused.
The matter arose after a report by the Tongan Auditor-General highlighted a lack of appropriate accounting for the spent funds.
Mr McCully says the New Zealand Government ordered an independent audit which has found poor record-keeping, not fraud, is behind the funds unaccounted for.
He says it's been made clear to the Tongan Government that a higher standard of accounting is required in future for aid funding.
