Smith is critical of the report which was commissioned by the SFL

The report describes the SFL as an out-dated, expensive-to-run organisation with demoralised staff and an overpaid secretary.

Smith said: "I think it's weighted one way and it's not giving any comfort at all towards the SFL administration.

"It's unfair and unbalanced - anybody can produce figures to suit their own needs."

Interview: SFL President John Smith

The Scottish Football League runs Scotland's First, Second and Third Divisions.

Smith continued with his criticism of the report, which was commissioned by the league itself and carried out by accountancy firm Pannell Kerr Foster.

As far as I'm concerned it is the best administrative organisation in the UK and anybody in football will tell you that SFL President John Smith

"The SFL has been in existence for 116 years and has been a well-organised and orchestrated organisation," he said.

"As far as I'm concerned, it is the best administrative organisation in the UK and anybody in football will tell you that.

"They are there to service the needs of the football clubs in Scotland and they've done it quite diligently over the years."

But Livingston owner Pearse Flynn insists that the report vindicates his desire to sever ties with the SFL and form a Scottish Premier League Two.

The Almondvale club, along with Clyde and Hamilton, are the chief protagonists behind the plans for 10 First Division clubs to break away from the SFL.

The report was 100% accurate and everything I have said has been vindicated Livingston chairman Pearse Flynn

Flynn has been highly critical of the SFL, which is presently without a sponsor for its leagues and its knock-out competition, the Challenge Cup, after whisky manufacturer Bell's withdrew in 2006.

The First Division clubs meet on Thursday and the Irishman believes they now have the ammunition to bring about the required changes.

"The report was 100% accurate and everything I have said has been vindicated," added Flynn.

"It's just a pity that we have wasted three months, but I expect some constructive dialogue when we meet this week.

"I see it as a big step forward and I want the pace to pick up now."