Auditor General Terence Nombembe has found that secret service funds were used to pay for a wall built around Police Minister Nathi Mthethwa's private home.
Nombembe said on Friday he however found no evidence that Mthethwa had been aware of the source of the funding and that the minister was therefore not implicated in a policy breach.
"There is no evidence that indicates that the minister knew that the wall was being erected using secret service funds."
Nombembe called for better oversight by the minister to prevent any future abuses escaping his attention.
"As a result of the minister not being aware of the activities of the SAPS: Crime Intelligence, our recommendation is amongst others that the monitoring and accountability practices between the department and the minister be strengthened and that timely action is taken in instances of non-compliance should this occur again."
The findings were released three months after Mthethwa asked the Auditor-General to probe Sunday press reports that some R200,000 from the slush fund was used to pay for the wall around his home in KwaZulu-Natal.
The reports also said the fund was used pay for a Mercedes Benz ML for the minister.
Nombembe found no truth in the reports about the car.
Mthethwa welcomed the findings and said he felt vindicated.
"While I noted with concern the continued innuendos of corruption levelled against me and my name being dragged in the mud, I nevertheless allowed the Auditor-General to conduct the investigation," he said.
"Today, I feel vindicated because the truth has been confirmed."
Allegations of abuse of the crime intelligence slush fund have been rife in recent months.
Suspended former crime intelligence boss Richard Mdluli faced fraud charges for allegedly misappropriating money from the fund. The charges were withdrawn before he was reinstated in that position in March.
He was subsequently moved sideways by Mthethwa and finally suspended by then acting police commissioner Nhlanhla Mkhwanazi in May.
Mkhwanazi was in turn accused of using R35-million from the fund without proper authority to buy vehicles for the police. He refuted the claims.