On August 31, 2014, the issue was discussed in the Association's institutions, when the first draft of the financial statements for 2013 was brought to the Association's Finance Committee for approval. On November 30, 2014, a third draft of the financial statements was brought up for discussion at a meeting of the Association's management. At this meeting, it was decided to adjust the reports by way of a "restatement". Ultimately, the fourth draft of these reports was approved on December 22, 2014. A draft that reflected a series of changes in the balance sheet: the deletion of the sum of NIS 25,988,000 under the "Receivables and Mandatory Balances" section (an amount previously recorded as an "asset"); Registering a property in the amount of NIS 4,023,000 under the "Excess Transfers to Groups" section; and registration of an asset in the amount of NIS 365,000 under the section "Entitlements and Credit Balances". In total, NIS 22,330,000 was erased in the Association's books.
The Alkalai Report and the Sol Report
- On February 2, 2015, a memorandum of understanding was signed between the Ministry of Culture and Sports, the Ministry of Finance and the Toto, and the Association and the Leagues Administration (hereinafter: "Memorandum of Understanding"). This is in order to promote and accompany a process of reform in the football industry in Israel, with the aim of improving the sport's image, streamlining its management and improving its achievements. The memorandum of understanding is intended to help improve the Association's activities and promote the recovery process in the Association.
In this framework, and in view of the budgetary distress in which the Association was in, between the years 2015-2017 the State allocated funds for the Association in the sum of NIS 13.5 million, in accordance with the support tests set in this regard by virtue of Section 3A of the Foundations of Budget Law, 5745-1985 (hereinafter: the "Foundations of Budget Law").
In accordance with the memorandum of understanding, the parties also agreed that the state would appoint an accountant at its own expense to conduct an investigative examination at the Football Association regarding all the facts, data and findings in relation to the implementation of the reform. This was done with special emphasis on the issue of excess uses and transfers to the soccer teams, which were made in addition to the receipts received by the Association from Toto and broadcasting rights.