When questioned by the Conservative MSP Megan Gallacher about lubricant being required and whether this should have indicated scenes would be going beyond simulated sex, Mr Munro said that wasn’t Creative Scotland’s “reading” of it.
The 45-minute art installation from director Leonie Rae Gasson would have seen people paid £270 per day to take part in sex acts.
Support for the project was axed in March after full details of the installation, described as a “magical erotic journey”, were revealed.
Mr Wilson said Creative Scotland “have not misled anyone” but added it would use more caution in future.
He said: “The senior leadership at Creative Scotland, with the support of the board, have reviewed the application process for open funding, and have introduced new safeguards, including an additional stage of review.
“The board has also agreed to a more cautious approach to risk, in terms of our future funding of projects with sexual content and those that involve vulnerable people or children.”
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