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HRD-82-85 1 (1982-07-21)

handle is hein.gao/gaobabmmh0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 HUMAN RESOURCES DIVISION B-208199 JULY 21, 1982 The Honorable Charles E. Bennett House of Representatives Dear Mr. Bennett: Subject: Proposed Move of the Veterans Administration's Florida Loan Guaranty Division from Jacksonville (GAO/HRD-82-85) Your March 23, 1982, letter asked us to review the Veterans Administration's (VA's) proposal to move its Florida Regional Office's Loan Guaranty Division from Jacksonville to St. Petersburg. Before we received your letter, we had made a limited review of the proposed move at the request of the Subcommittee on HUD-Independent Agencies, Senate Committee on Appropriations. This report includes data that we had provided to the Subc9;nmittee. It also includes additional data on potential costs and savings relating to the move which VA's proposal did not include. While the summary we provided the Subcommittee mentioned that such costs and savings were not included in VA's proposal, due to time limitations, we did not attempt to quantify them. We found that VA underestimated the costs and overestimated the savings associated with the proposed move. However, it still appears that the move would result in savings to the Government. These matters are discussed in more detail below. INTRODUCTION On February 8, 1982, VA notified the Congress that it planned to move its Florida Loan Guaranty Division from Jacksonville to its St. Petersburg Regional Office. VA said that relocation would save about $589,000 per year by reducing overhead costs and staff- ing requirements. VA said the total cost of relocation was about $998,000 and that the relocation costs, net of savings, were in- cluded in the 1983 budget. VA provided the Congress with a Special Study of Possible Relocation of Loan Guaranty Division which in- cluded detqils on relocation costs and savings. (See enc. I for VA's summary of relocation costs and savings.) (400489) 1 19080

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