Maintaining Control of Employee (Travel) …...The Accounts Payable & Procure-To-Pay Conference &...

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 5/9/2016

Maintaining Control of

Employee (Travel)

Reimbursements Dolores Hildebrand

Assistant Director for Procurement

& Supplier Diversity Services

University of Virginia

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 5/9/2016

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 3 5/9/2016

The Hackett Group

Travel and Expense Cost per Transaction

Benchmarks

World Class

AAU UVA

$5.25

$33.01

$85.15

Aberdeen Group

Average cost to process ONE (1) expense report ($US) (Including, for example: time for an employee to fill out the report, review and approval, time spent by accounting group to review and cost of auditing expense reports, etc.)

Fully Integrated Mobile Users - $15.30 Non-Mobile Users - $31.27


Project Approach – Inclusive and

Comprehensive

Discovery Focus Groups 25+ Discussions with Peers 20+ Travel Industry Conferences & Webinars Review Industry Research

Core Team • Audit • Process

Owners • Clients /

Travelers

Governance • Steering

Committee • Advisory

Committee • OELC • Executive

Sponsors


• $25m in airline, hotel, rental car - unmanaged - limited contracts

• 23,000 trip reimbursements x $85.15 = $1,954,850

• No central service delivery

• No knowledge of travel until after the trip

• No way to limit Export Control risk

• No way to provide Duty of Care

• Lack of visibility/Limited reporting

• 100% audits by AP

• Frequent policy violations

• High error rates

• No way to prevent duplicate payments

Opportunities for Improvement


• No standard purchasing and payment

methods

• Paper based processes

• Duplicate data entry

• Manual routing for approvals

• Complicated policies and procedures

Opportunities for Improvement


Travel and Expense

Management

Project


Travel and Expense

Redesign Initiative

TravelUVA

launched January 4,

2016

ExpenseUVA

Coming Soon!

New Policy/T&E Card

TravelUVA: online booking tool customized for UVA; full service

travel agent support; traveler alerts and assistance; Export

Controls guidance, etc.

ExpenseUVA: online expense management tool that will seamlessly

integrate with TravelUVA; eliminates paper processing and

replaces travel workbook and T&E Card reconciliations

Travel and Expense Services Team

New Simplified Policies and T&E Card

incorporated into TravelUVA and ExpenseUVA

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 9 5/9/2016 9

Complicated Policies

Travelers

What Online booking sites?

Airline Direct?

Hotels

Travel Agencies

Accounts Payable

Supervisor Approval? Dean or VP

Approval?

Complicated Policies


Simplify Policies

Policy notification prompts built into online booking tool

Policy Simplification Example #2 One set of rules regardless of fund source

Policy Simplification Example #1 Paper receipts and boarding passes are no longer required

Policy Simplification Example #3 Receipts for under $75 are no longer required

Policy Simplification Example #4 Fewer Levels of Approval


• Used for both travel and non-travel

• Used for employee and guest expenses

• University paid

• Encouraged instead of reimbursements

• Provides more transaction details

• Requires less data entry for expensing

• Tax exempt embossed on card

• No ATM and International transaction fees

• Payroll deduction for personal use

• Rebate on spend

One Card Solution

UVA Paid

OR


• Savings to the University/Departments – Centrally funded online booking fees

– Lower fees for agent services

– Self service environment/one stop shopping

– Consolidates spending used to negotiate air, hotel, and car rental discounts

– Rebates for local hotel and car rental spend

– Ability to generate hotel and airline reward points

– Automatically applies UVA’s contracted discounts to air, rail, lodging, and car

rental reservations

– Tracks traveler’s unused tickets and makes it easier to use them for another

trip

– Integrates with Expense System to reduce data entry and errors

– Accommodates T&E cards for greater rebate

Travel Management

Company


• Compliance with University Policies, Procedures, and

Federal Regulations

– Provides a customized online booking tool and full service agents

that apply University policies, procedures, and federal regulations to

all reservations

– Captures information required for Clery Act and Fly America

Reporting

– Guides travelers to obtain the appropriate approval before making

arrangements for travel to sanctioned countries

– Provides reminders to travelers regarding Export Control

requirements and use of federal grant funding for travel

Travel Management

Company


• Provides Special Care to Travelers

– 24/7 monitoring of world events with mobile alerts to travelers who

may be affected as well as University administrators who can offer

support.

– Provides 24/7 emergency services to handle issues that arise during

travel, including flight cancellations.

– Automatic enrollment in the University’s travel assistance

program for faculty and staff.

– Provides a means for travelers to maintain their frequent flyer and

hotel reward programs in one place and automatically applies

information to reservations for the greatest level of rewards.

– Notification of credit card, visa, and passport expiration.

Travel Management

Company


Policy

Messaging


Reduce Expensing Effort and Leverage Data for Savings!

– Create a self service environment

– Automate the expensing process

– Integrate TMC and Card data to eliminate data entry, errors, and duplicate payments

– Automatically apply policy to requests

– Capture receipts electronically

– Automatically route for proper approval

– Delegate capabilities

– Use of mobile technology to reduce expensing effort

– Allow visibility into employees spending habits

– Automate taxing process for taxable expenses and payroll deductions

– Reduce the need for 100% pre-auditing

– Leverage data analytics

Expense Management System – Coming

Soon!


Expense Management


T&E Card Program

Policy Simplification

Process Automation & Standardization

Safety alerts, assistance, insurance

Export Controls

Spend Analysis

Integrated Travel and Expense

Management

Travel and Expense


• Lower Processing Cost

– Self Service Environment

– Less Data Entry

– Automated Workflow

– Less Auditing for Compliance

– Fewer Cash Advances

• Lower Travel Cost

– Lower Agent Fees

– Contract Pricing

– Better Purchase Decisions at Time of Booking

• Greater Rebates

– T&E Card

– Local Hotel and Car Rental Contracts

• Less risk for non-compliance of federal regulations

** Surveys and Services Providers’ Data**

Travel & Expense

Redesign Results


Performance Metrics

$561.77 $580.30 $548.59 $518.82

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Pilot Period Post Go-Live

Ave

rage

Co

st P

er

Tran

sact

ion

Contract Cost Savings* Air & Rail Transactions

7/1/15-2/29/16 Control Group(Oracle)Test Group(CBT)

$260K 17.6%

442 12.1%

0%

5%

10%

15%

20%

25%

Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16

TravelUVA Adoption As a percentage of identifiable spend ($13,087,910.62)

and transactions (32,335) 7/1/15-2/29/16

Adoption (Spend)

Adoption (Txns)

CBT Go-Live

$395

$1,008

$1,279

$0 $0

$1,299

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Jan-16 Feb-16 Mar-16

Preferred Vendor Cost Savings Airline Discounts through TravelUVA

Delta discount as of 1/1/16; Total: $2,682.60 United discount as of 3/1/16; Total: $1,299.30

DeltaUnited


It’s a great big world out there for managing travel and expense – go explore!

Questions?

Thank you! Dolores Hildebrand

Maintaining Control of Employee (Travel) …...The Accounts Payable & Procure-To-Pay Conference &...

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