Merseyside Police is also making enquiries to establish whether any criminal offence has been committed at the college, after a former lecturer raised concerns with the funding body.
The college first examined the allegations last year under its own whistleblowing procedures and arranged for an investigation, but the report has never been made public.
A college spokesman said: "The principal and board of governors appointed forensic auditors to conduct an independent investigation. The college accepted its recommendations and was satisfied that no further action needed to be taken."
He said the report was not published to protect the identities of staff members and the LSC had been kept fully informed.
The LSC said it was originally informed last September that a former employee had made allegations and that the college had commissioned an independent investigation, as well as being told of the outcome. It was then approached directly in March this year.
John Korzeniewski, regional director of the North West LSC, said: "Any such complaints are referred to our national internal audit investigation unit. We are unable to comment on specific cases until they have gone through the unit processes to ensure that we do not prejudice any potential investigations."
A police spokesman said: "Merseyside Police is aware of the allegations and is taking them very seriously, as it would any allegations of this nature." He said enquiries were continuing to determine if any offence had been committed.