All sports projects which merited funding but missed out under the so-called "sports rorts" program should be funded, an inquiry has recommended.
A Senate committee looking at the saga tabled its 161-page final report on Thursday.
In January last year, the auditor-general found the scheme favoured coalition and marginal seats, noting the use of colour-coded spreadsheets and a memo which spoke of federal election target seats.
Senator Bridget McKenzie resigned from cabinet after it emerged she had membership of two gun clubs that received grants.
The committee canvassed a range of issues including the program's design and guidelines, and requirements placed on applicants for funding.
It also looked at how officials and ministers treated published assessment processes and program criteria, and the role of the prime minister's office in determining which grants would be awarded and who would announce the successful grants.
"The committee recommends the Australian government immediately fund in full all projects that were assessed as meritorious and recommended by Sport Australia, but dismissed in the final ministerial funding decisions," the committee said.
In order for this to happen, the committee wants the Senate to adopt a resolution which would require the release of Sport Australia's legal advice on funding decisions, the full unredacted list of grant applications, Sport Australia's list of recommended applicants and other relevant documents.
The committee also called on Prime Minister Scott Morrison to explain to the parliament what role his office or the Liberal campaign office played in the allocation of grants.
As well, the government should develop a national policy framework for community sports infrastructure which would streamline the administration of sports grants and ensure "needs" were central to grants rather than "the current ad hoc approach".
A further recommendation sought a review of the Australian Sports Commission Act 1989 to clarify the authority of the minister in relation to grant approvals, as well as a broader review of "other relevant statutory bodies and agencies with the power to grant funds".
No one spoke to the report when it was tabled on Thursday, as the Senate was seeking to fast-track its business program.
Government members of the committee said in a dissenting report the program had been an "outstanding success".
Prime Minister Scott Morrison is seen with then-Sports Minister Bridget McKenzie at Penrith Valley Regional Sports Centre in Sydney in 2019. Source: AAP
"Clubs and organisations were able, with the assistance of taxpayer funds from the federal Liberal National Party government, to upgrade sporting facilities, thereby encouraging greater community involvement in sport helping to create a more active, healthy and inclusive society."
The inquiry heard the proportion of Labor seats receiving grants had initially been 26 per cent but had lifted to 35 per cent after the minister intervened.
The committee also heard the proportion of coalition seats receiving funding was reduced from 66 per cent of grants to 60 per cent after ministerial intervention.
There were an initial 2056 applications, of which 1943 were found to be eligible and 684 received money over three rounds.
