NSW Arts Minister Don Harwin had admitted some money from a State Government funding round was diverted to the Sydney Symphony Orchestra after the ABC revealed 11 organisations missed out on the money.

Key points: Documents show 17 arts projects in NSW were supposed to share in $660,000

Documents show 17 arts projects in NSW were supposed to share in $660,000 Same documents reveal Minister personally intervened, instead funding only six

Same documents reveal Minister personally intervened, instead funding only six Some arts groups were forced to cancel programs because of decision

In response to a question from shadow arts minister Walt Secord, Mr Harwin said a "one-off grant of $1 million was made to the Sydney Symphony Orchestra" in June.

"Yes, there was some support from the Arts and Cultural Development program and there was other support from underspends in the department's budget," he told Parliament.

Mr Harwin said the money was for an "acoustic enhancement at the Darling Harbour Theatre at the International Convention Centre".

"What does the honourable member suggest I do? Let that great orchestra fail? Of course not," he said.

The Minister was pressed on the issue during a fiery Question Time after the ABC obtained Freedom of Information documents that revealed the record low funding round was not "business-as-usual".

The documents show an independent panel recommended 17 projects involving hundreds of artists share a total budget of $660,000.

However, ultimately only six organisations received $256,000.

The names of the eleven that missed out were redacted but the ABC has confirmed the identity of some.

Sydney Fringe Festival was recommended to receive $35,000 to subsidise the travel costs of regional artists to perform in Sydney where they were set to gain exposure to new audiences and a platform to tour overseas.

Articulate art space in Leichhardt was in line for almost $50,000 to present artworks by dozens of artists during its annual program.

Acclaimed artist Paula Abood was earmarked to receive $46,000 for a multi-artform project.

Emerging artists were slated to receive $32,000 to show their work at new art space Cement Fondu.

The documents show when these recommendations reached the Arts Minister's office, instead of approving them, he chose to fund only six projects.

The document obtained under freedom of information with the Arts Minister's handwritten notes at the top ( Supplied )

Mr Harwin wrote: "The first six recommended applications from the panel are approved, in accordance with revised budget parameters."

He drew a line through the applications and scribbled a "no" in the margin at the end of the list of unsuccessful candidates.

The $404,000 stripped from the funding round was then directed towards a single project — the name of which was redacted in the documents.

An email trail between the Minister's office and Create NSW reveals a frantic search for money to fund that project.

It was bolstered with another $220,000 from other parts of the arts portfolio, making a total of $624,000.

Sydney Lord Mayor Clover Moore with Sydney Symphony Orchestra chief conductor David Armstrong, SSO chief Emma Dunch and Arts Minister Don Harwin at the orchestra's season gala opening earlier this year. ( Supplied )

That money has never been publicly announced.

"Funding is capped by budget availability, there are occasions when funding flexibility is needed," the spokesman said.

"This is not unusual for any government body and will continue to be the case."

'Loss of trust'

The released documents reveal the redirected funds had been earmarked for 17 artists and organisations following a rigorous assessment process.

Arts consultant Michael Campbell chaired one of the two expert panels, assessing more than 200 applications for the grant round.

"The process of peer assessment is sound," he said. "It is rigorous. Great expertise is brought to bear and the process is well structured and well supported by Create NSW at every step of the way."

Create NSW investment director Sophia Zachariou warned a ministerial adviser against redirecting funds.

She said doing so could give the impression, "funding decisions [were] being politicised".

Emails from Sophia Zachariou outlining the "issues" if the funding did not go through. ( Supplied )

Ms Zachariou said it could lead to a "loss of trust" between Create NSW and its constituents, especially as the deadline for advising successful recipients had already passed.

A second bureaucrat said keeping a lid on the altered outcome would need "a bit of a PR strategy".

'Horrified' groups miss out

Sydney Fringe Festival thought it was unlucky not to have been funded. Now it knows it was particularly unlucky.

Festival director Kerry Glasscock said, "I asked for feedback and they said our application was excellent but that it had been a very competitive funding round".

A Sydney Fringe Festival event, one of the arts programs that missed out on funding. ( Supplied: Sydney Fringe Festival )

"When I delved deeper they said one thing we were a little bit light on was supporting documentation, but we had numerous letters of support," she said.

Articulate co-director Margaret Roberts said she was "horrified" when funding failed to come through, causing her to cancel a program which would have funded 30 artists.

"I'm glad the initial assessment was successful, that's a relief to hear because it means we actually did do something right because we did put a huge amount of work in to it," she said.

"And then they say no. People say, 'Oh you just don't know the right people'."

Articulate went ahead with other projects funded by the federal Australia Council and the local council.

However, it was forced to revert to artists paying to exhibit in its space.

Opposition arts spokesman Walt Secord said Mr Harwin was playing favourites.

"He's showing that he'd rather go to events where he can wear a tuxedo, rather than small, struggling community organisations, small struggling artists," he said.

"I think it's absolutely disgraceful and he's robbed hundreds of artists to showcase their work."

Arts Party leader Barry Keldoulis said the funding change was completely unacceptable.

"There's clearly a $400,000 hole in this funding cycle which aligns with ever-reducing funding for arts and cultural opportunities," he said.