The Serious Fraud Office is warning that the procurement of equipment or services is always a high-risk area for fraud.
The office made the comment after investigating the way in which the Taupo District Council assesses tenders for the supply of goods and services.
After an extensive investigation, the office found no evidence of deliberate deception.
However, it says the case highlights the need for both private and public organisations to have robust procurement processes, and it has referred the matter to the Auditor-General for more work.
The Serious Fraud Office is not revealing details of the original complaint about the Taupo council.