Proposed Move of the VA Florida Loan Guaranty Division From Jacksonville
HRD-82-85: Published: Jul 21, 1982. Publicly Released: Jul 21, 1982.
- Full Report:
Pursuant to a congressional request, GAO reviewed the Veterans Administration's (VA) proposal to move its Florida Regional Office's Loan Guaranty Division from Jacksonville to St. Petersburg.
GAO found that VA underestimated the costs and overestimated the savings associated with the proposed move. However, it appears that the move would result in savings to the Government. VA estimated that it would cost about $963,000 to relocate the facility. Of these costs, $801,000 would be to relocate employees; $136,000 was allocated for terminal leave and severance costs; and the remaining $26,000 was allocated to relocate and install equipment. According to VA, the move is expected to result in an annual savings of approximately $589,000. There is much uncertainty about the actions the employees will take if the Division is moved and the number of positions that would be saved. GAO reviewed the VA estimates, made adjustments it considered appropriate, and computed revised costs savings estimates. VA then revised its estimated costs and savings based on the GAO adjustments and reduced its relocation costs estimate. The revised costs and annual savings are about $1,111,700 and $389,300 respectively. Based on these figures, the savings from the relocation would equal its cost in 2.8 years.