The Fiji Rugby Union says the International Rugby Board suspended direct funding because of problems that were prevalent in the union in the past.
The FRU reacted to the IRB's decision to halt immediately its contribution of nearly two million US dollars.
The union's acting chief executive, Berlin Kafoa, says the IRB audit report found financial, administration and governance issues.
According to FBC News, Mr Kafoa says to date the FRU board has completed the FRU constitution review, put in place both finance and human resources procedures and policies in line with recommendations in the IRB report.
He also says the board is working on fundraising activities, approaching several sponsors and the Fiji government through the Fiji Sports Commission.
Mr Kafoa the board is also working on a long term solution towards financial sustainability and FRU sponsors will be expected to be announced soon.