Speaking in Echuca yesterday, Senator McKenzie said under the guidelines she had the authority to make the decisions.
“Because of my ministerial discretion regional clubs got more projects than they would have otherwise,” she said.
“Because of my ministerial discretion, as I exercised it, Labor seats got more projects than they would have otherwise.
“There was a much better spread across the country.”
Noting that the issue was under scrutiny by a Senate inquiry, she said she would leave further commentary for a later time.
She said she was now concentrating on issues in which her regional constituents were interested.
She has travelled through the bushfire affected regions of Cudgewa, Tallangatta and Corryong over the summer.
Lawyers Maurice Blackburn are threatening legal action on behalf of a Beechworth tennis club that missed out on the sports grant funding.
Emeritus law professor Geoffrey Lindell said he had serious doubts over whether the minister had the legal power to approve the grants.
He also raised legal doubts about the potential involvement of the prime minister's office or other ministerial officials making late changes to which projects got funding.
“The cloud hangs over all of them because we go back to the central starting point — the commission (Sport Australia) is the legally appointed decision maker,” Professor Lindell said.
Senator McKenzie said last week she did not know alterations were made to the final list under the program.
Senate estimates heard Senator McKenzie's office sent Sport Australia a changed spreadsheet — adding nine projects worth $3.3 million — three hours after initially sending it with her authorisation.
Senator McKenzie insists she did not change the document after April 4, but the auditor-general's office told parliament it changed twice after it was initially sent to Sport Australia on April 11.
Senator McKenzie's office communicated with Mr Morrison's office during that day.
The prime minister was on Wednesday asked who made the changes.
“The ministerial authority for the program was with the Minister for Sport — that is the position,” he told reporters in Canberra.
Senator McKenzie was in Echuca this week to take a flight along the Murray River and to discuss damage to the environment caused by high river flows and the effect on the redgum forests.