The Independent Member for Indi, Cathy McGowan, has called for an investigation into the Federal Government's handling of funding announcements, claiming she was deliberately shut out of the public presentation process this week.

Ms McGowan has written to the Auditor-General of the Australian National Audit Office to investigate the process of Building Better Regions Fund grant announcements, after more than $3 million was announced for Indi on Monday by the Minister for Regional Services, Senator Bridget McKenzie.

She was accompanied across the electorate for the announcements by Indi Nationals candidate, Mark Byatt.

A statement issued by Ms McGowan has highlighted her concerns that she was kept in the dark about the funding as part of a political stunt.

"I am concerned about what appears to be the politicisation of taxpayer-funded grants and the impact on my communities," she said in the statement.

"A number of the successful applicants were contacted informally by the Government for the purpose of arranging media events on Monday.

"Those contacted were also advised they should not discuss Monday's announcements with me — their elected representative — or other third parties."

Ms McGowan's office indicated that the Independent MP and local applicants had not received formal notifications about the federal funding, leaving many recipients unaware their applications had been successful until they were contacted by media.

"By arranging for the unelected candidate to 'announce' these grants without due process and transparency, the Government appears to have used taxpayer dollars for their own political purposes," Ms McGowan said.

"My office has been working since last year with many of the applicants, with the appropriate correspondence and advocacy, and it is in the interests of all involved for the Auditor-General to investigate this matter."

Kept under wraps

The Building Better Regions funding announcements were made less than a week after Senator McKenzie moved her electorate office from Bendigo to Wodonga.

Senator Bridget McKenzie and Nationals Indi candidate Mark Byatt toured Indi on Monday to announce over $3 million in Building Better Regions funding. ( Facebook: Alpine Shire Council )

Senator McKenzie said the announcement process in Indi this week had been conducted appropriately, and that it was suitable to include the electorate's Nationals candidate at the events.

"The important thing is that as a Minister, and a Minister responsible for this area of regional development, it's entirely appropriate that I make those announcements," Senator McKenzie said

"And sometimes that's with the local member, sometimes it's not.

"The key thing to remember is that both the National Party candidate, the Liberal Party candidate, and Cathy McGowan all welcomed our Federal Government's investment in community infrastructure right throughout the seat of Indi."

Senator McKenzie said it was not unusual that some funding announcements have been kept under wraps.

"Usually things are kept confidential until the lists are released publicly, which I think is happening on Friday," she said.

"This is entirely appropriate, that government when they're making announcements chooses the place and the time and makes the announcement."