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Australian Prime Minister Scott Morrison has denied considering whether proposed sports grant projects were located in marginal or target seats at a meeting with former Federal Sports Minister Bridget McKenzie in November 2018 that resulted in a $70 million expansion to the program.

In answers to Guardian Australia, the Prime Minister’s office has addressed new evidence from the Australian National Audit Office (ANAO) about its involvement in the controversial program.

The answers do not dispute that the Prime Minister’s office received lists of the marginal and target status of seats where prospective projects were located but denied that this determined the decision to expand it, which was done to “meet demand”.

The answers also reveal the Federal Government is leaving open the possibility it could fund a further round of grants in the upcoming October budget for clubs that missed out due to Senator McKenzie’s intervention.

Last Wednesday, Australian National Audit Office officials revealed that the former Federal Sports Minister’s senior adviser had drawn up talking points for a meeting between the Government colleagues, asking to expand the sports grant program to $100 million on the basis it could fund 109 more projects in target and marginal seats, and noting that these were a “priority” in consultations with MPs.

Over the life of the Community Sport Infrastructure Grant program, the Prime Minister’s office received 15 emails with spreadsheets showing indicative lists of projects to be funded.

ANAO officials said the first of these on 18th October 2018 - one day after Senator McKenzie first requested Prime Minister Morrison expand the program - had been titled “copy of electorate division of applications”.

Asked by Guardian Australia if Prime Minister Morrison denies considering the marginal or target status of seats when he and Senator McKenzie met on 28th November 2018, his spokesperson replied: “Yes.”

The spokesperson quoted Senator McKenzie’s written submission to the Senate inquiry that: “This former adviser’s memo was not used as a basis for my decisions at any stage in the process. The memo was never provided to me or seen by me.”

Asked why indicative project lists included the marginal and target status of seats, the spokesperson said the grants program had received more than 2,050 applications totalling nearly $400 million, for a program worth $30 million at the time.

In January, a scathing ANAO report found that Senator McKenzie had skewed the community sport infrastructure grant program towards key marginal seats by running a parallel approval process, overturning Sports Australia’s recommendations.

Following this, Prime Minister Morrison said he would “work with the Treasurer to see how we can better support even more projects in the future”, suggesting the possibility that unsuccessful applicants could be given grants in a fourth round.

Images: Liberal candidate for Mayo Georgina Downer hands over a novelty cheque for Community Sport Infrastructure funding to the Yankalilla Bowling Club during the last Federal election campaign (top) and Australian Prime Minister Scott Morrison at the Australian Open (below).

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