A staffer from Scott Morrison's electorate office told members of a sailing club that were invited to apply for a Stronger Communities government grant to "vote Liberal" and "thank Scomo" for the funding, a video obtained by 7.30 shows.

Key points: Cronulla Sailing Club received an $8,400 grant for a barbecue through the Stronger Communities Program

Cronulla Sailing Club received an $8,400 grant for a barbecue through the Stronger Communities Program After being told about the new barbecue, Cronulla Sailing Club members were told by a Scott Morrison staffer to 'vote Liberal'

After being told about the new barbecue, Cronulla Sailing Club members were told by a Scott Morrison staffer to 'vote Liberal' Stronger Communities Program applicants must be invited by their local MP to apply

The politicisation of grant funding arrangements has dominated headlines for the past two weeks.

On Sunday, Bridget McKenzie resigned as a minister following a series of revelations surrounding the administration of a sports grant scheme.

7.30 has examined other programs where politicians can invite community groups to apply for grants.

One such grant scheme is the Stronger Communities Program, introduced in the 2015 budget.

The grant is unusual because applicants are only eligible if they have been invited to apply by their Federal Member of Parliament.

The MP consults with a community group, handpicked by the MP, before inviting clubs to submit a formal application.

Up to $150,000 can be awarded in each electorate. The Department of Infrastructure is the ultimate decision maker.

'It's not me that gives you the money, it's Scomo'

Mr Morrison invited the Cronulla Sailing club to apply for a Stronger Community grant.

Cronulla Sailing Club received a grant of more than $8,000 for a new barbecue. ( Source: Cronulla Sailing Club Facebook )

The club was subsequently awarded an $8,416.10 grant by the Department of Infrastructure in January 2018 for "permanent barbecue facilities".

The grant was intended to "improve usability of the space and eliminate the need for users to engage in heavy-lifting to move a portable barbecue".

A video obtained by 7.30 posted online by the sailing club in November 2018, three months after Mr Morrison became Prime Minister, shows a club official thanking a staff member from Mr Morrison's electorate office for assisting with the club's grant application.

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The club official said that the staff member "helped me through the process and kept pushing me through the whole process".

Mr Morrison's staff member replied that the club's grant application was "very well written".

"It's not me that gives you money, it's Scomo," she told the crowd.

"So, vote Liberal come May, because if you don't, I won't have a job."

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A spokesman for Mr Morrison told 7.30 that his staffer "regrets her comment and apologises".

"The only support the Member for Cook and his office have offered applicants is technical advice to ensure their applications comply with the eligibility requirements," he said.

"This program is structured to take advantage of the local knowledge and insights of members and community groups that a bureaucrat based in Canberra simply would not know."

He said Mr Morrison's community consultation committee included Mr Morrison "as well as, at various stages over the rounds, local Indigenous elders, youth representatives, chambers of commerce, local government and other community group leaders and sporting group managers".

Mr Morrison is not a member of the Cronulla Sailing Club and there is no suggestion there is of any conflict of interest in him inviting the club to apply for the grant.

The Cronulla Sailing Club did not respond to 7.30's requests for comment.

Integrity experts told 7.30 they believed the restriction of grants to those personally invited to apply by MPs gives rise to a risk that it could unfairly politicise the grant process.

"This alignment of taxpayers' money with political parties … it's beyond the pale," Tony Harris, a former auditor-general of NSW, told 7.30.

Clubs with links to MPs invited to apply for funding

7.30 has also identified some instances where grant invitations have been extended to groups with links to MPs, but who have properly declared their interests.

Energy Minister Angus Taylor has been a member of the Goulburn Triathlon Club since at least 2016.

In February 2019, the club received a $4,136 grant under the Stronger Communities program to "upgrade the timing system at the club by replacing the old manual timer".

A spokesman for Mr Taylor said the Minister adhered to the strict guidelines put in place for the grant.

"Mr Taylor declared his membership of the Goulburn Triathlon Club to both the Hume Community Consultation Committee (prior to the committee considering the Goulburn Triathlon Club's expression of interest) and the department when the formal application for grant funding was submitted," he said.

Mr Taylor had no contact with the members of the Hume Stronger Communities Program Community Consultation Committee during this process and made no changes to the projects they recommended.

Matt Keogh is a member of the Kelmscott Agricultural Societym which he invited to apply for a Stronger Communities grant. ( ABC News )

West Australian Labor MP Matt Keogh has been a member of the Kelmscott Agricultural Society since 2003.

In November 2018, the department approved a $3,967.70 Stronger Communities grant for laptops and software, following an invitation from Mr Keogh.

"Mr Keogh's membership of the Kelmscott Agricultural Society and the potential for a conflict of interest was brought to the attention of the consultation committee at the time of its deliberations to determine which organisations and expressions of interest should be put through to the department to apply for funding," a spokeswoman for Mr Keogh told 7.30.

"Mr Keogh's membership was also disclosed to the department as part of its online submission process.

"The Department of Industry, Innovation and Science made the ultimate determination of which organisations would receive funding under the program."

Each of the MPs have acted entirely within the program guidelines by declaring their interests.

'Give it to people who have no conflicts'

A number of government grant schemes, including the volunteer grants program, require the invitation of a local MP before an application can be made.

Barrister Geoffrey Watson SC, director for the Centre for Public Integrity, described Stronger Communities as "ludicrous design" that needed to be scrapped.

"These schemes have got to be protected so that they remain independent," he said.

"It might be the Liberal Party today, but it'll be the Labor Party tomorrow."

Mr Harris also sees significant potential for problems with the Stronger Communities program.

"The best way to manage conflicts is to give it to people who have no conflicts," he said.

"To make sure that it's handled at arm's length and with merit."