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RCED-83-155 1 (1983-05-19)

handle is hein.gao/gaobabmze0001 and id is 1 raw text is: 



    (UNITED STATES GENERAL ACCOUNTING OFFICE
                               WASHINGTON, D.C. 20548


 RESOURCES, COMMUNITY,
AND ECONOMIC DEVELOPMENT                              May 19, 1983
     DIVISION

     B-21 1612

     The Honorable Martin Frost
     House of Representatives                                   121457

     The Honorable John Bryant
     House of Representatives

           Subject: Impact of the Department of Housing and Urban
                      Development's Proposed Consolidation of Its
                      Field Offices in the Dallas and Fort Worth,
                      Texas, Area  (GAO/RCED-83-155)

            In your February 25, 1983, joint letter you requested that
      we study the Department of Housing and Urban Development's
      (HUD's) proposal to consolidate the Dallas Area Office with the
      Fort Worth Regional and Service Office in one office in Fort
      Worth, Texas. That proposal is part of HUD's major reorganiza-
      tion plan for field activities, published in the Federal Register
      February 22, 1983.

           Pursuant to your request, our work focused on two issues:
       (1) the cost effectiveness of consolidating all of the Dallas and
       Fort Worth HUD operations in Fort Worth and (2) the impact of
       such a consolidation on Dallas housing activities and of HUD's
       changing program initiatives and direction. We analyzed the
       material elements of the cost and savings projection prepared by
       the HUD Fort Worth regional staff which supported the figures
       they furnished to you that $1,570,000 would be saved in the first
       year and $2,370,000 each year thereafter. We also examined per-
       tinent documents and interviewed HUD and other Federal officials
       and representatives of the Dallas housing industry. In addition,
       using statistical sampling methods, we selected and interviewed
       HUD employees to obtain an estimate of the number of eligible
       employees in the Dallas area willing to relocate their residences
       to Fort Worth. We did not evaluate the cost effectiveness or
       efficacy of the overall field reorganization plan proposed in the
       Federal Register.

           Our evaluation showed that the potential cost and savings
      projection developed by the HUD Fort Worth regional staff
      included personnel savings that could be achieved independent of
      a consolidation of the Dallas and Fort Worth offices. Certain
      costs and savings related to leased space and potential reloca-
      tions of employees also appeared questionable due to improper
      assumptions or methodology. Finally, in computing estimates of
      personnel savings attributable to the consolidation, a material


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                                 OcD J-O

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