The original $174,500 grant for North Wangaratta Football Netball Club was almost tripled when Senator Bridget McKenzie's office altered it in the hours before deadline.
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A letter from the Australian National Audit Office to the Senate inquiry into the administration of sport grants was published this week.
North Wangaratta was granted $500,000 in the lead-up to the 2019 federal election to build two netball courts and upgrade lighting, after the application was submitted on the club's behalf by Wangaratta Council.
"Wangaratta Rural City Council's amended application for $500,000 was approved. The original application had sought $174,500," the letter from Auditor-General Grant Hehir said.
"While the minister also recorded that she 'agreed' to the Sport Australia recommendation that she record the reasons for any funding decisions that differed from Sport Australia's recommendations, no reasons were recorded."
He has said the grants were awarded based on marginal electorates rather than expert advice.
IN OTHER NEWS:
Wangaratta Council chief executive Brendan McGrath said the $174,500 application for lighting on the oval was unsuccessful, but the $500,000 the project with oval lighting, netball courts and netball court lighting was successful.
The Wodonga-based Senator stood by her decision when contacted by The Border Mail on Wednesday.
"I provided a comprehensive submission to the Select Committee on Administration of Sports Grants. Changes to projects in round three were made in accordance with the program's guidelines," she said.
Meanwhile Prime Minister Scott Morrison has denied his office asked Senator McKenzie to seek his authority over the list of grant recipients.
"The authority for making the decisions in relation for that program was the Minister for Sport. That's a fact," he said in question time.
"The only authority sought from the Prime Minister's office and from myself was in relation to announcements."