Labor calls in auditor over sports grant presented by Liberal candidate Georgina Downer

Labor has asked the national auditor to investigate why Liberal candidate Georgina Downer was allowed to present a $127,000 government grant to a local bowling club in the form of a novelty cheque featuring her face and Liberal Party branding.

Ms Downer, who will make a second attempt at nabbing the South Australian seat of Mayo from Centre Alliance MP Rebekha Sharkie, clinked champagne glasses with members of the Yankalilla Bowling Club on Friday as she presented a cheque for more than $127,000.

Liberal candidate Georgina Downer presents a novelty cheque for $127,000 to the Yankalilla Bowling Club.

The grant came from the federal government Community Sports Infrastructure Grant Program, managed by Sports Minister and deputy Nationals leader Bridget McKenzie.

Ms Sharkie said she had never seen a taxpayer-funded grant "delivered by cheque with a candidate's face and name on it", and called it "rather desperate and misleading".

Shadow attorney-general Mark Dreyfus has now asked auditor-general Grant Hehir to investigate, asserting Ms Downer had turned the grant as a political campaign tool.

"It is completely inappropriate and unacceptable for Ms Downer and the Liberal Party to treat taxpayers’ money as if it were their own, and to deceive Australians about the true source of this taxpayer-funded grant," Mr Dreyfus wrote to Mr Hehir.

A spokesman for Senator McKenzie said it was "not uncommon for MPs to nominate a person to represent them at official and informal events".

Asked if Senator McKenzie nominated Ms Downer to represent her, the spokesman said: "It would have been a decision by the Liberal Party in South Australia."

South Australian Liberal Party director Sascha Meldrum defended the cheque presentation, arguing it was "totally appropriate for [Ms Downer] to be involved" as the club had invited her to be there.

"She wasn't taking credit," Ms Meldrum said. "She was asked to attend, she attended."

Ms Meldrum said it was up to Senator McKenzie's office to notify the sitting MP, Ms Sharkie, about a grant awarded in her electorate. Senator McKenzie's office initially said MPs were informed of the successful grant recipients in early February.

However, Ms Sharkie said she was only notified on Tuesday afternoon. Senator McKenzie's office later clarified it was, in fact, on Tuesday.

The $28.3 million Community Sport Infrastructure Grant Program provides funding of up to $500,000 for local sporting facilities. It garnered more than 2000 applications, worth $390 million in requests. The government recently announced it will inject another $30 million into the program.

Ms Meldrum said it was "ridiculous" to suggest the cheque presentation breached guidelines by the Australian Electoral Commission or any other body.

Ms Downer - who is the daughter of former foreign minister Alexander Downer - did not return calls on Sunday. She unsuccessfully contested the seat of Mayo against Ms Sharkie in last year's byelection.