Financial information on the operations of Marino Institute of Education (MIE) was requested by the Department of Education several times in the last year.
It is also understood that former president of Coláiste Mhuire Caoimhe Máirtín briefed senior officials in the department about her position on several occasions since last August.
However, Minister for Education Mary Hanafin was not briefed about the meetings after the department took the view that Ms Máirtín's complaints were an internal management issue for MIE.
In the course of her meeting, Ms Máirtín complained of the harassment and bullying of herself and other staff at the teacher-training college.
She also said that she was "kept out of the loop" on financial matters.
However, sources said she made no specific allegation about financial impropriety or misuse of State funds at MIE, which is controlled by the Christian Brothers. But it is understood that the department, in recent months, did seek financial information from the MIE as rumours about alleged misuse of funds continued to circulate.
Sources said that since January information had been received but no evidence of any financial wrongdoing had been found so far.
However, additional information had also been sought in recent months as the department sought clarification on some matters.
A fuller picture of Ms Máirtín's contacts with the Department was now emerging.
On August 31st, 2004: Ms Máirtín held a meeting with the chief inspector of the department, Eamonn Stack.
The department took the view that her complaints, while serious, were essentially an internal management problem for MIE.
The Department of Education was also told that Ms Máirtín was taking legal proceedings against the Christian Brothers who control MIE.
On December 2004, after a series of contacts with other senior figures in the inspectorate, Ms Máirtín briefed a formal meeting in the department, chaired by assistant secretary with responsibility for teacher education Paul Kelly.
No specific charge of financial irregularities at MIE was made at this meeting.
The meeting focused largely on her allegations of bullying.
She also complained that new management structures meant that she had been sidelined.
One source said: "She was being treated as one department and not as the head of the teacher-training college." It is understood that senior officials briefed secretary-general John Dennehy on the issue.
The department took the view that it was powerless to intervene in the affair.
One source said: "There was great sympathy for her position. But this was essentially an internal management issue for MIE, which is privately run.
"The department's job was to satisfy itself that there was no misuse of State funds and that the quality of teacher education was not damaged by the affair - which was the case." The Department also felt itself constrained by Ms Máirtín's legal action.
The department's approach to MIE may have been influenced by the view among some that the arrangement with MIE offered what one source called "good value" to the taxpayer.
The department allocates about €4½ million per year to the teacher-training college Coláiste Mhuire every year.
However, it does not pay for the use of extensive facilities at the complex.