The Ministry of Social Development has confirmed it is now working with the police regarding Raukura Waikato Social Services Trust.
The ministry suspended its contracts worth $1.17 million with the Hamilton-based trust earlier this week.
It cited unspecified concerns after it said a number of issues had been raised about the trust.
The Justice Ministry followed and suspended its contract with Raukura Waikato and the Department of Corrections.
The Ministry of Justice took the action because it said key staff who deliver non-violence programmes had left the trust and so it was unable to deliver what it was contracted to provide.
The Department of Corrections said while its contracts with the trust were due to expire at the end of June, the trust was no longer providing services to the department.
It said that the value of its contracts with the trust were commercially sensitive and that there was no ongoing financial risk to the department.
The Ministry of Social Development said it was now working with police in relation to financial matters regarding Raukura Waikato, but would not be any more specific.
It said while the process was underway it was unable to make any additional comment.
The trust could not be reached for comment.