However, public counter staff at the station were "not comfortable" with Officer A's actions and took the matter to the local office of Police Professional Conduct (PPC).
A second police person identified as Officer C was the manager of this office and took ownership of the case, Doherty said.
It transpired, however, that Officer C did not record or deal with the complaint or conduct any formal or informal investigation into the matter, Doherty said.
He said the IPCA became involved in the matter when a complaint was made in April 2021 by an anonymous person.
Police are unable to bring a charge of theft against people when an item stolen is less than $500 if the theft took place more than six months earlier.
Therefore the IPCA concentrated on examining the actions of Officer C.
This included examining whether the alleged theft was appropriately reported, recorded and investigated and whether the incident was brought to the attention of senior management.
Judge Doherty concluded Officer C had failed to follow due process or commence an investigation into the alleged theft after being notified about it in October 2018.
"We could not establish a rationale as to why Officer C failed to undertake those actions," Doherty said.
Officer C should also have notified his managers but failed to do so.
Waitematā District Commander Superintendent Naila Hassan accepted the IPCA findings.
"We hold ourselves to a high standard and the public has a right to expect that higher standard from police," she said.
"We have taken this as an opportunity to remind staff of policies around exhibits and property management, and the investigation of complaints against police employees.
"Both officers involved in this matter are no longer constabulary members of NZ Police."
