Georgina Downer novelty cheque prompts auditor to review entire grants program

A giant novelty cheque handed to a local bowling club by Liberal candidate Georgina Downer has prompted the national auditor to review the federal government's entire grants program for community sports infrastructure.

Ms Downer attracted criticism last month when she presented a cheque for $127,000 to the Yankalilla Bowling Club in the South Australian electorate of Mayo, where she is trying to defeat Centre Alliance MP Rebekha Sharkie.

Liberal candidate Georgina Downer presents a cheque to the Yankalilla Bowling Club in February.Credit: Facebook

The cheque bore Ms Downer's name and face, as well as the Liberal Party logo. Labor claimed she was trying to "deceive Australians about the true source of this taxpayer-funded grant", and complained to the Australian National Audit Office.

Auditor-General Grant Hehir made no finding on that allegation but agreed to review the entire $230 million Community Sport Infrastructure Program, which is not required to comply with normal guidelines controlling how taxpayer-funded grants are awarded.

In a letter to shadow attorney-general Mark Dreyfus, Mr Hehir noted the program was run by Sport Australia and "unlike most competitive, merits-based grants programs my office has examined", it was not subject to the Commonwealth Grants Rules and Guidelines.

He pledged to review whether the program was run properly, whether applications were assessed soundly and whether funding decisions were informed by clear advice.

All grants awarded in the program's first iteration - worth $29.7 million - would be included in the assessment, Mr Hehir said, as well as those that were part of a $30.3 million extension of the program - including the grant to the Yankalilla Bowling Club.

"Should further funding be awarded under the program, I would consider extending the scope of the audit to include the relevant decision-making processes," Mr Hehir said.

The program was launched in 2018 and awards grants of up to $500,000 for local sports infrastructure in a bid to get more Australians participating in physical activity. The first round saw more than 2000 applicants make requests for nearly $400 million in public funds.

Ms Downer - the daughter of former foreign minister Alexander Downer - last month said she was invited to attend the celebratory function by the bowling club because she helped prepare their application.

Liberal Party SA state director Sascha Meldrum said it was "ridiculous" to imply Ms Downer had breached any guidelines. "She wasn't taking credit [for the grant]," Ms Meldrum said.

A spokesman for Sports Minister Bridget McKenzie last month said the Yankalilla grant had been recommended to the government by Sport Australia.