Commissioner Ken Moroney's long-time friend and one-time possible successor retired last Friday,the day before his contract expired.
"Mr Adams medically retired from NSW Police on the 8th of July 2005,"a spokesman for Mr Moroney said today.
"Separate to that process has been an internal investigation.
"Mr Adams responded to the commissioner of police on these issues.
"The commissioner will advise the PIC (Police Integrity Commission) and the (NSW) Ombudsman and Mr Adams of the outcome of that investigation on its completion."
Mr Adams,who has been ill with heart problems for several years,is being investigated over the purchase of a $6,000 mahogany desk for his office this year.
The misconduct allegation does not involve criminal conduct.
Mr Moroney last month announced the investigation into issues surrounding the purchase.
The probe comes after a recommendation last month by the PIC that criminal charges be considered against Deputy Police Commissioner Dave Madden and Assistant Commissioner Peter Parsons.
They allegedly breached the Telecommunications (Interception) Act during a meeting with Bulldogs rugby league chief Malcolm Noad on April 5,2004.
The Commonwealth Director of Public Prosecutions is the body that will decide whether to lay charges against Mr Madden and Mr Parsons.
A DPP spokesman said today it had not yet received a brief of evidence from the PIC over the allegations.
Mr Moroney has not decided on what disciplinary action the pair should face.
"The commissioner of police is giving consideration to what disciplinary action might flow from the (PIC) finding,"a spokesman for Mr Moroney said.
AAP