The boss of one of Victoria’s major domestic violence services has resigned after a state government review uncovered “serious concerns” with the way victim support grants had been handed out at the organisation.

The Age revealed in May that the Eastern Domestic Violence Service was being investigated amid claims that its executive director, Jenny Jackson, had authorised tens of thousands of dollars in taxpayer-funded grants to help a friend pay for private school fees, an interstate holiday and legal costs.

EDVOS executive director Jenny Jackson.

EDVOS’ board vehemently denied any wrongdoing at the time. Five months on, the community sector boss has decided to quit and the agency’s ability to grant money to domestic violence victims has been suspended until it can improve its internal processes.

EDVOS continues to stand by Ms Jackson, and her lawyer Peter Gordon insisted on Thursday that there was "no cogent evidence of any shortcoming in her management"