Creative Scotland has defended its decision to fund a film installation featuring participants engaging in "non-simulated" sex.
The REIN project, which was initially presented as “an exploration of dyke sexuality”, secured more than £110,000 of lottery funding from the Scottish arts body.
Support was cancelled when concerns were raised that the project's website was advertising for people to take part in "non-simulated" sex, including "hardcore" acts.
MSPs were told that Creative Scotland had since reclaimed £76,196 from the project.
In a letter to a Scottish parliament committee, Creative Scotland Chief Executive Iain Munro defended the initial grant and praised REIN Director Leonie Rae Gasson's "track record".
He said the application showed a "clear storytelling narrative, strong sexual themes and simulated sexual performance, and would speak to a particular audience rather than the mainstream".
He added that it was important for Creative Scotland to support work "representative of all parts of Scottish society, including those who are more marginalised".
It was not until March that the funding body became aware of the intention to include real sex, which Munro said "took the project into unacceptable territory" for public funding.
Those behind the REIN project have disagreed with Creative Scotland's version of events.
A statement sent to The Herald newspaper said they "do not agree that they misled the funding body" and that they were not given any opportunity "to work towards a joint resolution or alternative outcome prior to the funding body's decision to defund the work".