Queensland's corruption watchdog has found a police fraud squad initiative that raised hundreds of thousands of dollars from the private sector exposed the state's police service to a serious fraud risk.

A Crime and Corruption Commission (CCC) investigation into the Queensland Police Service's (QPS) Project Synergy has found the program was not conducted transparently and had weaknesses assessed as "high — requires immediate management action".

"By developing work-arounds in what they saw as a policy vacuum, Project Synergy officers created a significant fraud risk to the QPS," the CCC report tabled yesterday in Parliament stated.

The fraud squad project runs on a self-funded basis, largely raising money though fraud and cybercrime symposiums, and selling sponsorships to private companies.

A symposium in 2014 raised more than $220,000 from the registration fees of the 243 delegates.

The ABC previously revealed the CCC was probing Project Synergy, and in August charges against three officers were ruled out.

But the watchdog said there were "sufficient grounds to warrant disciplinary action against one officer for failing to comply with financial management practices and policies".

Some of the allegations investigated were that officers had inappropriately used funds for personal benefit, misused a corporate credit card, and provided overseas travel opportunities to staff on a preferential basis.

Wine coolers bought for children's program

The CCC found a large proportion of Project Synergy profits were spent on a primary school education program, Fiscal the Fraud Fighting Ferret.

Over a two-year period almost $50,000 was spent on merchandise for the animated ferret, including "some questionable items such as wine coolers for a children's program".

Wine coolers were used for symposium delegate bags, which the CCC declared "entirely inconsistent with the primary focus of the program".

The fraud squad has since decided to end the Fraud Fighting Ferret initiative.

Deals did not comply with government policy

The CCC noted its financial analysis of Project Synergy was difficult because of poor record keeping.

The project maintained its own internal records separate to the QPS accounting system.

The commission found some sponsorship deals were made that did not comply with state government policies.

More than $5,800 was spent on gifts and awards for speakers for the 2014 symposium, including almost $2,500 on 24 crystal world globes with stands.

The CCC said the gifts do not appear to have been chosen from the official gift range maintained by the Queensland Government.

The QPS previously refused to say whether it paid tax on the fundraising activities.

Further allegations to be investigated

The CCC discovered another 20 allegations during its investigation, which it has asked the QPS to probe.

They include allegations about a charity golf day that was organised by the fraud squad, the disclosure of QPS intellectual property and inappropriate travel allowance claims.

The watchdog also recommended the auditor-general examine financial management within the QPS and its fraud squad.

Queensland Police refused to respond to ABC questions, but in a statement a spokesperson said the additional allegations referred to the police service were under review.

"The QPS has already taken steps to address some issues related to governance that were identified by the CCC," the statement read.

"The QPS will now also consider this report as part of the overall process in responding to the CCC's findings."