The former general secretary says that he wants half of the €2 million to go to charity.
But the IFA claims that Smith has demanded the money and is trying now to cover it up.
Sean Brosnan, chair of Kerry IFA, says that a lot has changed within the organisation in the past few years.
“For the last 60 years it worked fairly well for us – the word corporate governance would not have come into our language, certainly…before the last five or six years” he said.
“So Ireland has changed, business has changed – we wouldn't have probably viewed the IFA as a business; there are a lot of people employed by it and there is a lot of money involved” he added.
