The Home Office imposed a funding freeze on the association last month after it emerged that no proper accounts had been filed since 2003.

A letter from the department on April 4 warned that an audit team had already found "discrepancies" in spending, and a fraud investigation could be launched.

However, the review has now been completed and action against individuals has been ruled out, according to an NBPA spokesman.

Home Office minister Tony McNulty said in a statement: "On Thursday, May 17, we received the Home Office Auditor's final report on the funding for the National Black Police Association.

"We will review the report's recommendations and work closely with the NBPA to agree the best process for taking forward the recommendations made.

"I will meet the NBPA cabinet in a month to discuss their progress on implementing the recommendations and we will continue our regular meetings where we discuss a range of issues of concern."

An NBPA spokesman said: "We are working with the Home Office to execute the recommendations, many of which have already been implemented.

"The NBPA will benefit from the systematic review of the structure and governance. We are certain the association will emerge more robust and astute to deal with national strategic issues."

Almost all the NBPA's income comes from an annual grant of £180,000, but it breached Home Office and Charity Commission rules by failing to file properly audited accounts since 2002-3. A Home Office spokesman was unable to confirm whether the NBPA's grant would now be reinstated.