finance & accounting travel reimbursement process analysisoeas.ucf.edu/doc/fatravel.pdf ·...

Finance & Accounting Travel Reimbursement Process Analysis

Dr. Julia Pet-ArmacostAngela AlbertHéctor López

October 4, 2001

F&A Travel Process Analysis -OEAS 2

Overview of Presentation

ObjectiveMethodologyProcess FlowVolume of Documents, ErrorsInterview, Survey and Staff DataTraining Participation DataProcess ObservationsPreliminary Recommendations

November 20, 2001F&A Travel Process Analysis -

OEAS 3

Objective

Identify potential areas for improvementCustomer ServiceComplianceWork Environment


OEAS 4

Methodology

Interview Processors (11)Development of Process FlowchartsPreparer Survey

149 out of 200 preparers responded30 questions;

Overall satisfactionDifferent aspects: accuracy, consistency, customer service, knowledge, training (preparer), etcOpen ended questions


OEAS 5

Methodology (continued)

Traveler Survey150 out of 650+ travelers responded30 questions

Overall satisfactionDifferent aspects: accuracy, consistency, customer service, knowledge, training (preparer), etcOpen ended questions


OEAS 6

Methodology (continued)

Process ObservationsGeneral observationsTiming of different tasksCollection and analysis of dataTurnover DataCapacity analysisRV’s processing lead time (department approval and F&A Travel processing)


OEAS 7

Process Flow – Before TravelingT ra v e le rId e n t if ie sN e e d toT ra v e l

P re p a re ris s u e s T A R ,o b ta in s T A R #F lo w c h a r t # 1

N e e d C a s h A d v a n c e a n d /o r P a y m e n t

A u th o r iz a t io n ?

T ra v e l E x p e n s e s

V e n d o rs

P re p a re a n dS u b m it R e q u e s tF lo w c h a r ts # 3 ,

# 6 T ra v e lP ro c e s s o r

Y e s

C a s h A d v a n c e

P a y m e n t

A ir l in e , C a rR e n ta l, H o te l

A r ra n g e m e n ts


OEAS 8

Cash Advance & Payment Authorization documents

Cash AdvanceApproximately 14 data elements

Payment AuthorizationApproximately 17 data elements

Elements in common: 11-12


OEAS 9

Process Flow – After TravelingT r a v e l E x p e n s e s

C a r R e n ta lIn v o ic e .F lo w c h a r t # 4

A ir l in e In v o ic eF lo w c h a r t # 2

V e n d o r s

T r a v e l P r o c e s s o r

P r e p a r e r is s u e s R Vc la im

P a y m e n t t o V e n d o r s P u r c h a s in g C a r dE x p e n s e s -

In v o ic e

A d d i t io n s /C o r r e c t io n s

A s k f o r I n f o r m a t io n/ D o c u m e n ts

P a y m e n t t o T r a v e le r

A u d it o fR V


OEAS 10

Volume of Documents

Volume of Documents Processed: Monhtly, Cumulative, 2000

1,869

22,041

19,449

17,569

15,790

14,106

11,061

8,580

6,625

4,095

2,4811,684 1,779 1,880

2,5923,0451,869 1,9552,5302,226

0

5,000

10,000

15,000

20,000

25,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

# Of Do

cument

s


OEAS 11

Volume of Documents by Type

Volume of Documents by Type - 2000

0%

20%

40%

60%

80%

100%


Perc

enta

ge

RV Airline Invoice Payment AuthorizationCar Rental Invoice Gas Invoice Cash Advance


OEAS 12

Volume of Documents- RV’s

Volume of RV's Processed: Monhtly, Cumulative, Jan-Oct 2000

1,817

3,162

4,280

5,652

7,323

8,118

9,076

9,884

11,109

775

1372

795 958 8081225

10421345 1118775

1671

0

2,000

4,000

6,000

8,000

10,000

12,000


# Of D

ocume

nts


OEAS 13

Distribution of RV’sDistribution of Processed RV's by Individual

Jan-Oct 2000

Oscar16%

Laura14%

Lita10%

Joey11%

Maria12%

Margarita12%

Jaggenauth (20%)

2%Amrita (50%)

5%

Raynaldo (70%)

8%Carmen

10%


OEAS 14

Processors – Turnover, 2000

54% (7/13)613Total

50% (1/2)12A&P

100% (3/3)03OPS

37% (3/8)58USPS

TurnoverTotal RemainingDec 2000

Total Employees Jan 2000

Category


OEAS 15

Processors – Turnover, 2000

60% (3/5)25Total

011USPS

75% (3/4)14OPS

TurnoverRemainingDec 2000

Hired During 2000Category


OEAS 16

Error RateMonthly Error Rate

2.022.02 2.02

99-0098-9997-9896-970

0.5

1

1.5

2

2.5

Rate

- Pe

rcen

tage

of T

otal

Tra

nsac

tions


OEAS 17

Interview Responses–Processors (11)

Greatest Difficulty in Getting Job Done

0

1

2

3

4

5

6

7

8

9

Document Related External to F&A(department)

Internal (F&ATravel)

Other

Abso

lute

Fre

quen

cy


OEAS 18

Interview Responses – Processors (continued)

ExternalDepartments do not cooperatePreparers not following through on faxesPreparers reluctant to obtain informationPreparers: buffer between traveler and processor


OEAS 19


InternalDesktop procedures need to be uniformPolicies: fax ok or not?, phone call ok?Conflicting interpretation of Statutes


OEAS 20


OtherRespond to all inquiriesFilingAnswering phone calls, e-mailsInterruptions


OEAS 21

Interview Responses – Processors (Continued)

Things that Slow down Travel Processing

2

433

11

0

2

4

6

8

10

12

IncompleteDocumentation

Multiple Tasks Calls,Interruptions

Regulations Other

Abso

lute

Fre

quen

cy


OEAS 22

Interview Responses – Processors (Continued)

Greatest Opportunity for Improving Travel Claim Processing

8

6

2

7

0

1

2

3

4

5

6

7

8

9

Training Resources EliminateRedundantDocuments

Other

Abso

lute

Fre

quen

cy


OEAS 23

Interview Responses – Processors; Other

Preparer/Traveler including justificationCommittee to look at StatutesStandardize Cash AdvanceProvide manual for preparerDistribute accounts evenlyFocus on customer service

Processor to review checklist


OEAS 24

Training Participation – Basic, Advance(Source: Human Resources)

145124137Total172136N/A10610Other

162618Other Professional

001Faculty

130Tech/Paraprof.522Exec./Adm./Mgr.147F & A956263Clerical

200019991998Position


OEAS 25

Training Participation – Preparer, Self reported

Took Training?127 or 85% of total preparers took training

Source: Preparer Survey, n=149


OEAS 26

Training Participation – Traveler, Self reported

Took Training?66 or 44% of travelers took training

Source: Traveler Survey, n=151


OEAS 27

Rating of Training by Preparer

Training Meets Needs?

0.7 0 05

31

56

8

0

10

20

30

40

50

60Str

ongly

Dis

agre

e

Dis

agre

e

Som

ewhat

Dis

agre

e

Neu

tral

Som

ewhat

Agre

e

Agre

e

Str

ongl

yag

ree

Per

centa

ge

within

surv

ey

par

tici

pan

ts (

149)


OEAS 28

Rating of Training by Traveler

Training Meets Needs?

3 48

34

23

2

27

0

5

10

15

20

25

30

35

40

StronglyDisagree

Disagree SomewhatDisagree

Neutral SomewhatAgree

Agree StronglyAgree

% w

ithin

sur

vey

parti

cipa

nts-

151


OEAS 29

Survey Data – Overall Satisfaction, Preparer

Overall, I am satisfied with the UCF Travel Unit (n=135)

1%7% 9%

4%

16%

44%

19%

0%

10%

20%

30%

40%

50%

StronglyDisagree



Agree StronglyAgree

Rel

ativ

e Fr

eque

ncy


OEAS 30

Preparer Survey Data – Challenges with Travel

Most Common Challenges with Travel Unit

4891315

21

0

5

10

15

20

25

Exce

ssiv

e D

ocs.

Lang

uage

/Com

m

Get

ting

Prom

ptRe

spon

se

Tim

eFr

ame/

Lead

Tim

e

Inco

nsis

tenc

yAm

ong

Proc

esso

rs

Lost

Doc

umen

ts

Abso

lute

Fre

quen

cy


OEAS 31

Preparer Survey Data - Opportunities

What can Travel unit do to increase satisfaction as a travel preparer?

(Total responses: N=90)

37

2

10 10

5 3

0

10

20

30

40

RespondPromptly

BeConsistent

Inform onChanges

ReduceLead Time

Cust. Svc.Training

Other

Abso

lute

Fre

quen

cy


OEAS 32

Preparer Survey Data – Opportunities (Continued)

Inform on errors with enough timeHave backup peopleAllow tracking via the WebDo not return RV for one simple errorWork with same person

Meet with departmentAssign helpersMake rules more preciseFix On-line forms


OEAS 33

Preparer Survey Data – Other Comments (challenges/opportunities)

“I don’t think it is the Unit’s fault as much as the State requirements”“They are very fast and if there is a question, they contact me right away..”“I have been very satisfied with ones I deal with”“I have no problems- I don’t expect perfection, only communication”


OEAS 34

Preparer Survey Data – Other Comments (challenges/opportunities)

“Since we got Carmen, our problems with travel have ended – she is great!!”Margarita, Maria and Joey have been very efficient”“Ray is is always helpful and cooperative”“The Travel unit is very patient and helpful”


OEAS 35

Traveler Survey Data – Overall Satisfaction

Overal, I am satisfied with UCF Travel Unit(responses:126)

20%

11%12% 12%

14%

27%

4%0%

5%

10%

15%

20%

25%

30%

StronglyDisagree



Agree StronglyAgree

Relat

ive Fr

eque

ncy


OEAS 36

Traveler Survey Data – Most Common Challenges with Travel

What are the most common challenges encounter with Travel Unit

(total responses=104)

3 3

34

5567810

23

05

10152025303540

Delay

s, L

ong

Lead

time

Insig

nifica

ntDe

tails

Com

mun

icatio

n

Inco

nsist

ency

Askin

g fo

rUn

avail

able

Info

rmat

ion

Lang

uage

Rude

ness

, Not

Frien

dly

Turn

over

Lack

of

Unde

rstan

ding

Othe

r

Abso

lute

Fre

quen

cy


OEAS 37

Traveler Survey Data – Most Common Challenges, Other

Changes on ProceduresReference MaterialMore than one [processor] looking for informationInflexibility

Asking for personal billsPer DiemLack of ProfessionalismLost Documents

Frequency for all responses above is 3 or less


OEAS 38

Traveler Survey Data – OpportunitiesWhat can the Travel Unit do to increase your satisfaction as a traveler?

(Total responses: 97)

28

4456

81010

22

0

5

10

15

20

25

30

Impr

ove

Turn

Arou

nd

Impr

ove

Refe

renc

eM

ater

ial

Attit

ude

ofHe

lpin

g; b

efri

endl

y, n

ice

Impr

ove

Com

mun

icatio

n

Use

less

docu

men

ts,

simpl

ify

Elim

inat

ere

dund

ant

deta

ils

Trai

ning

,Pr

oced

ures

Be c

onsis

tent

and

clear

inPr

oced

ures

Oth

er

Abso

lute

Fre

quen

cy


OEAS 39

Traveler Survey Data –Opportunities, Other

Upgrade processor positionTrust travelerProvide status to travelersStability among processors

Frequency of all responses above: 3 or less

Only one processor from start to endOnly one requestUpdate on changes in procedures; keep traveler informedIncrease Per diem amount


OEAS 40

Traveler Survey Data, zip+4 on mail

How often use zip +4 ?(59 cases)

7%12% 10%

58%

14%

0%

10%

20%

30%

40%

50%

60%

70%

Always Usually Sometimes Seldom Never

Perc

enta

ge


OEAS 41

Traveler Survey Data, Travel Envelope as Checklist

How often use envelope as checklist ?(116 cases)

49%

9% 11%

21%

10%

0%

10%

20%

30%

40%

50%

60%

Always Usually Sometimes Seldom Never

Perc

enta

ge o

f Cas

es


OEAS 42

Traveler Survey Data, Claims Delayed

% of RV delayed because additionl information was requested ?(132 cases)

28%26%

15%

9% 9%13%

0%

5%

10%

15%

20%

25%

30%

0% 20% 40% 60% 80% 100%Percentage of Travel Claims

Perc

enta

ge o

f Cas

es


OEAS 43

Process Observations

Review of Pending RV’s7 processors83 documents

Observations - processing RV’s and other documents

7 processors 84 transactions (document review, posting)

Review of RV’s – file room231 documents reviewed


OEAS 44

Pending RV’s - Reasons

Reason for Pending RV's(Dec. 4-5 2000, n=67 RV's, 91 reasons)

1211

98 8

54 4

3 3 3 32 2 2

12

02468

101214

Dis

crep

anci

es/E

rror

s

Lack

of

Funds

Mis

sing

Reg

istr

atio

n

Car/

Hot

el U

pgra

de

Mis

sing

Agen

da

Erro

rs -

Mea

ls

Erro

rs -

Mile

age

Mis

sing

Rec

eipt

s

Gen

eric

Rec

eipt

s

Hot

el >

0

List

of

Trav

eler

s

Pers

onal

Tim

e

Per

Die

m R

ates

TAR

- Bl

anke

t vs

One

Tim

e

TAR

- O

rigin

al

Oth

er

Abs

olut

e Fr

eque

ncy


OEAS 45

Delay Elements vs. Training MaterialNot Included in Training Material

No funds availableMissing agendaWrong account or TAR #Contact/Back up for generic receiptsBenefit to the State statementList of travelers/signatures (group travel)Date or time discrepancies


OEAS 46

Observations – Highlights

In 84 transactions observed26 phone calls made13 phone calls received17 interruptions38 trips to photocopier


OEAS 47

Observations – Processing Time (minutes)

Processing Time

Int e rrupt ionWa lke d for c opie sP hone Ca ll Re c e ive dP hone Ca ll Ma deKe y In Air t ic ke t s Invoic eKe y-In RVRe vie w RV

-5

0

5

10

15

20

25

30

35

40


OEAS 48

Workload vs. ResourcesMonthly Daily(2)

Workload (documents) (1) 2,200 105Workload (minutes) (3) 66,000 3,150Workload (hours) (3) 1,100 53

Capacity (documents) (4) 2,352 112Capacity (minutes) (4) 70,560 3,360Capacity (hours) (4) 1,176 56

(1) 10 months average.(2) 21 days per month.(3) All documents @ 30 minutes processing time.(4) 8 employees @ 7 hours/day.


OEAS 49

Process Observations – Other Highlights

When necessary, processors call department immediately after reviewing the RVSome processors willing to provide consultation to department (by phone or in person)


OEAS 50

Process Observations – Other Highlights (continued)

RV Processing sequence of tasks –Differences Among Processors:

Immediate posting: Review and post if ready for paymentBatch Posting: Review a batch of various RV’s, then post the batch (the ones ready for payment)Delayed Batch Posting: review a batch, then, build up new batch for posting


OEAS 51

Reimbursement Processing Lead Time

Reimbursement Voucher Lead Time - All Cases

Contact to ResponseClock-In to ContactTotal Time - AllClock-In to Payment-All Approval to Clock- In - All

-10

0

10

20

30

40

50

60

70

80

# of W

orkin

g Day

s


OEAS 52

Reimbursement Processing Lead Time (continued)

Reimbursement Voucher Processing Lead Time - Adjusted for Missing Documents and Errors

Total Time - AdjustedClock-In to Payment AdjsutedApproval to Clock In,

Adjusted-5

0

5

10

15

20

25

30

35

40

45

# o

f Wor

king

Day

s


OEAS 53

Statutes vs. actual requirements

Agenda (conference/convention vs. other activities) (9%*)Hotel and Car upgrade Justifications (9%*)Zero Balance Hotel Bill (3%*)

* in 67 RV’s pending processing


OEAS 54

Preliminary Recommendations-Training

Travelers Different alternatives (delivery) to faculty and staff

Update training material/content based on most recent errors and reasons for delays


OEAS 55

Preliminary Recommendations-Process

DocumentsConsider reduction of number of documents: Can the, Cash Advance and Payment Authorization documents/transactions be combined?

Review and post RV’s within 1-2 days141 out of 231 (61%) RV’s showed no documented reason for delay but the median time to review the claim was 6-8 days

Audit of RV’sDedicated resource (other than supervisor)Perform audit before posting


OEAS 56

Preliminary Recommendations-Process (continued)

Photocopies38 trips in 84 transactions (45%)Are they really needed?

OPS assistant to do itImpact: 100-200 hours/year


OEAS 57

Preliminary Recommendations-General Procedures

Immediate response to customer on inquiries (phone calls, e-mail, etc.)Performance Measurement

Document and review processing lead timeProvide feedback to customers; periodic meetings with travelers and/or preparers

Document and review delay reasons, errors, etc.Provide feedback to customers; periodic meetings with travelers and/or preparers


OEAS 58

Preliminary Recommendations-General Procedures

DocumentationStandardize how to make notations on RV’s Standardize how to document communication with customer (request for additional information, etc.)

Customer RelationsConduct annual survey to assess improvement (travelers, preparers)