House speaker requests Grand River Dam audit

<br>VINITA, Okla. (AP) _ The state Auditor and Inspector's Office has launched an investigative audit into how the Grand River Dam Authority handles its retirement benefits. <br><br>The audit was requested

Thursday, September 19th 2002, 12:00 am

By: News On 6

VINITA, Okla. (AP) _ The state Auditor and Inspector's Office has launched an investigative audit into how the Grand River Dam Authority handles its retirement benefits.

The audit was requested by House Speaker Larry Adair, D-Stilwell, who said his office has fielded questions about the authority's benefits.

``People just want to make sure their money is being handled appropriately,'' Adair said. ``People had questions about GRDA and their financial activities.''

An attorney general's opinion handed down this summer stated that the authority provided its director and other top officials with additional compensation under a tax-sheltered deferment plan, which was outside the deferred compensation plan authorized by law.

The Grand River Dam Authority was created in 1935 and is responsible for the construction and operation of dams along the Grand River for hydroelectricity production and flood control. It transmits and delivers electricity across its 24-county service area in northeastern Oklahoma.

Attorney General Drew Edmondson said in June that legislative salary caps cannot be exceeded by state agencies, boards and commissioners. Money in the accounts, totaling between $500,000 and $1 million, are the property of GRDA and not the administrators involved, Edmondson said.

Allen Pease, general counsel for the authority, said the audit will focus on the attorney general's opinion.

The audit will evaluate the authority's retirement plan through June 30. Auditors will be looking for ``accuracy, proper disclosure and compliance with laws and regulations,'' according to an audit letter received by Pease on Wednesday.

It will also examine expenditures and claims to make sure the authority complies with the law and will look for any unusual items.

``We intend to fully comply with the audit. GRDA is audited annually,'' Pease said. ``Our books are open for examination by anyone.''