Human Capital:

Impact of the Proposed Consolidation of HUD Field Offices in the Dallas and Fort Worth, TX, Area

RCED-83-155: Published: May 19, 1983. Publicly Released: May 19, 1983.

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In response to a congressional request, GAO studied the proposed consolidation of the Department of Housing and Urban Development's (HUD) Dallas Area Office and Fort Worth Regional and Service Office into one office located at Fort Worth.

The study showed that a $1.5 million potential cost savings projection, which was developed by the HUD Fort Worth regional staff, included personnel savings that could be achieved independent of the consolidation. In addition, certain costs and savings related to leased space and potential relocations of employees also appeared to be questionable due to improper assumptions or methodology. Finally, GAO found that a material reduction in estimated savings will occur if on-board personnel are used rather than the fiscal year 1982 authorized staffing ceilings. A net savings may still result through the implementation of the proposed consolidation. In addition to the cost factors, both the positive and negative impacts on Dallas housing activities under the consolidation should be weighed. GAO found no evidence that the proposed reorganization is part of any long-term plan aimed at addressing the impact of changing program initiatives.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Secretary of Housing and Urban Development should reevaluate the proposal to consolidate the Fort Worth and Dallas offices in light of the information in this report. As part of this reevaluation, he should develop a more complete and detailed cost and savings projection and include a plan which articulates the need for further organizational changes considering HUD on-going and proposed program initiatives.

    Agency Affected: Department of Housing and Urban Development

 

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