Peat has defended his role in the youth football row
The SFA board has agreed to re-admit Dundee, Dunfermline and Ross County to the elite level of youth football - but only after they re-apply in November.
If the clubs satisfy the current requirements for child protection criteria, they will be re-admitted to the youth league in February.
"The clubs said they didn't meet the criteria but felt the original decision was harsh," said president George Peat.
"In effect, what we have done is halve the original decision."
However, Dunfermline chairman John Yorkston is unhappy that his side will not be able to play in the top division of youth football until next year.
"It's totally unsatisfactory because we met all the criteria and the problem was that the SFA didn't do their job correctly in the first place.
"We were audited last November and passed.
"We should have actually failed because a couple of our boys' disclosures hadn't been updated.
"Had that been identified at the time then we would have been given until April, almost six months, to rectify it for this season.
"When they gave us a spot audit in June, they just said you've failed, you're out."
Yorkston is also unhappy with the manner in which the spot audit was conducted.
"The audit was designed to get the SFL clubs out and make the elite league purely SPL," he added.
"It was only the SFL clubs that were audited along with Inverness. The other 11 SPL clubs weren't given this spot audit.
"George Peat admitted the same to me, (Dundee chief executive) Dave MacKinnon and (Fife Council member) Derek Brown.
"He told me quite categorically that if we get back in, SPL clubs will walk. They've only committed for one year at a time and if SFL clubs are in that set-up, they'll form their own.
"He's meant to be president for the SFA, he should be looking after all the members not just the elite 12."
But Peat has denied that there was an ulterior motive in the SFA's most recent audit.
Yorkston has been critical of the SFA's audit procedures
"To put it mildly, that's a load of nonsense," added Peat.
"There is absolutely no conspiracy whatsoever. The people who made the original decision were unaware of the identity of the clubs.
"We've heard so many allegations, particularly from one of the three clubs. We have checked every allegation they've made and in 99 cases out of 100, they are completely unfounded.
"In one case the allegations made were correct and it was the case of a coach who had been employed by the SFA, who had been undisclosed while he took teams.
"Action has been taken against the person who did not check the disclosure."
The three clubs have previously taken legal advice about their expulsion and have also called for the Scottish Government to start an investigation.
"Everybody in football does not want legal action," added Peat.
"We feel that there's sufficient opportunity for clubs to come to agreements or disagreements with each other within the rules of the SFA.
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