Recommendations on New Travel Business Model for LBNL January 11, 2007

1. Recommendations on New Travel Business Model for LBNL January 11, 2007

2. Project Participants

3. Outline • Travel Facts • The Problem • Feedback from Travelers & Divisions • Recommendations

4. LBL Travel Facts (FY06)

5. Business Analysis-The Problem • Lack of leadership; staffing issues • Multiple business processes; no institutional consistency • Administration of travel is costly • Reimbursement can take a long time • 100% audit • too many errors • missing receipts • Pre-trip approval process for foreign trips is lengthy • Gelco system not intuitive, buggy, broken • Divisions, users and the Travel Office unable to easily get the information they need

6. Feedback from Travel Surveys • 10% of travelers responded; primarily scientists • Most travelers want to be able to easily make their own reservations and prepare expense reports • Majority want Gelco system replaced • Most consider 1-2 weeks a reasonable amount of time to be reimbursed (from the time an expense report is completed) • 21% of scientific divisions agree with concept of eliminating formal pre-authorizations of domestic trips • A number of divisions wanting formal authorization are in favor of waiving trip expense approval; (UC policy requires post trip approval) 6

7. Recommendations Core Travel Team’s Guiding Principles: Faster reimbursement Improve the customer experience Keep it simple Minimize cost of processing Consider what is right for the institution

8. Summary of Key Recommendations • Develop one consistent institutional process * • Divisions are currently handling pre & post-travel processes in many different ways: • Some don’t require pre-approval • # of approvals vary • Use of Gelco varies by division • Domestic travel: require pre-approval within divisions; recommend using email • Reimburse traveler only after all required receipts have been submitted * • Continue current practice of reimbursing for actual cost of meals & incidental expenses (M&IE) up to maximum per diem rates, and clarify policy • Default reimbursement (other than airfare) directly to employee’s bank account rather than disbursing checks* • Move expense reimbursement of travel to Disbursements * • If above recommendations are adopted, replace Gelco with an intuitive, user-friendly interface coupled with PeopleSoft travel module, and also mandate use of system • The system should be used by all travelers *Represents best practice *Represents best practice

9. What the Process Will Look Like -4 steps(status provided at each step) -One travel document 3 4 2 1 Final Approval of Expense Report (trip approved by funding division or supervisor) Reimbursement (Payment issued to traveler’s bank account) Expense Information (trip expenses entered in same document created in step 1; traveler certifies expense report and it is forwarded to approver) • Trip Info • Where • When • Purpose • Project id • Cost estimate Pre-trip Domestic trip? Post-trip • Obtain pre-approval within division (email recommended) Foreign trip? Trip # assigned (regardless of funding source): • Request for approval automatically emailed to traveler’s division director (or designee) • Option will be provided to email notification to organization that is funding the trip • Trip approved by traveler’s division director (or designee) Note: Additional trip info will be captured in Step 1; data will be uploaded to FTMS; all foreign travel requests must be submitted to DOE (via FTMS) and approved before trip occurs Note: Conference travel requiring SC approval:New travel system should support process to extent possible Trip # assigned

10. Next Steps • Implement elements of business model that are independent of a new system (e.g., training) • Develop project plan for implementation of PeopleSoft Travel & Expense module • Need scientific representation by ALD

11. Backup

12. Recommendations: Process • Develop one consistent institutional process* • Domestic travel: require pre-approval; recommend using email • Eliminate recording of liens before trip occurs* • Expense airfare immediately to division project* • Require one approval on expense report (must be in Lab’s Signature Authorization System) *Represents best practice

13. Recommendations: Process (Cont) • Provide option for approval to “follow the money” • Default reimbursement (other than airfare) directly to employee’s bank account rather than disbursing checks* • Continue current practice of reimbursing for actual cost of meals & incidental expenses (M&IE) up to maximum per diem rates and clarify policy • Improve reimbursement turnaround time - 2 weeks from the time a traveler certifies expense report. Continue to reduce over time to meet industry standards. *Represents best practice

14. Recommendations: Controls • Provide cash advances via US Bank corporate travel card only • Provide training on how to complete an expense report • Reimburse traveler only after all required receipts have been submitted* • Return incomplete expense reports to traveler’s division* • Develop robust reporting* • Perform random audit of expense reports (by Acctg)* • Complete timely accounting reconciliations* • Provide reliable data. Database needs significant clean-up* • Improve ongoing communication (Web, updates, announcements) * *Represents best practice

15. Recommendations: System • If all other recommendations are adopted, replace Gelco with an intuitive, user-friendly interface coupled with PeopleSoft travel module, and also mandate use of system • The system should be used by all travelers • Fully utilize system audits* • Enable a traveler to fill out expense report off-line and upload to system at later date • Explore scanning technology • Provide easy means to status where expense report is in the process * Represents best practice

16. Recommendations: Organization • Provide strong leadership • Move expense reimbursement of travel to Disbursements* • Fully train staff *Represents best practice

17. FY06 Travel Cost by Division