The Dunedin City Council has released a report penned by Deloitte into its vehicle fraud scandal.

Earlier this year the former boss of Citifleet, Brent Bachop died suddenly - the council then uncovered an alleged $1.5 million fraud.

The report found there were a number of red flags relating to the alleged fraud, with a major one being Brent Bachop's lifestyle exceeding his salary.

The report found Bachop pocketed a minimum of $350,000 from selling council vehicles.

It is recommending the council continues to work with police and it also found issues with the way it works to detect and prevent fraud.