APPENDIX E AUTOMATED TRAVEL EXPENSE SYSTEM
The goal of the Automated Travel Expense System project is to reduce the costs and delays inherent in the current, largely manual, travel reimbursement process. It will involve examining the entire process from initial trip planning to the reimbursement and reporting functions, including all the basic assumptions as well as regulatory and policy constraints. It will build on the successful work done in 1995-96 to provide UW travelers with travel information via the web.
While some automated tools are used to record travel expenses in the current accounting system, UW travelers and their departments must prepare complicated and detailed expense forms for review and approval in central offices before reimbursements are made. It is a manual, time consuming process, often resulting in substantial backlogs and delays of reimbursement during peak travel periods. This proposal requests the resources to develop an entirely new process, using web technology, which will completely change the travel expense process and dramatically shorten the time for reimbursement.
The end product is envisioned as a web-based system on which a traveler (or designated support staff) may enter a travel plan which can be approved on-line by the appropriate department authority; make travel arrangements, (e.g., on-line reservations for hotels, airlines and car rentals) and enter expense claims for reimbursement.
This electronic environment will provide capabilities not currently available and will replace the current travel expense voucher (TEV). While a web "short form" will be available for TEV experts, a longer version of the web page will be available for those travelers who need prompting, with clear, concise explanations of how to complete a travel claim. Both versions will provide pull down menus, selection lists, help instructions, and links to other web pages and databases such as OFM rates and limits, or grant budget travel rules and restrictions. Working at a their personal computer or terminal, the traveler will be able to identify all expenses associated with the trip, and will be informed when actual expenses may exceed allowable rates, with the options that may be available for claiming the full expense.
This project will develop the web page tools for travel expense claims, and the automatic transfer of that information into existing financial systems for check writing and budget reporting. Access will be provided to each traveler, so that he or she has primary responsibility for the accuracy, timeliness and quality of data for travel expense transactions. Departments may choose to provide travelers with support in entering travel claims, and department personnel will have to continue to do the entry for travelers who do not have UW accounts, such as job candidates, or visitors and guest lecturers.
Travelers will be able to use the system anytime of day, every day of the week, from anywhere in the world with internet access. Trip approvals by the traveler’s supervisor and budget officer will also be electronic, and to the extent permitted by state accounting rules will be appended to the file after the traveler has submitted the expense claim.
The UW Home Page/Administrative Guide already offers a web-based system of travel rules, rates and related information (see http: //www.washington.edu/admin/travel/). The travel web page has been available since 1996 and is very popular with campus travelers and department staff who assist others with travel arrangements and expenses. This UIF project will build on the existing web page, to provide for easy entry of travel expense claims. A significant effort is required for the development of data entry and edits on the web page, along with the formatting and automatic porting of that information to the University’s financial systems so that it can be processed for payment within existing automated systems and controls. By using existing financial transaction systems to generate reimbursement checks, the project can focus on developing web-based tools which make travel expense submittal as easy to use as possible.
In general, the expected features of the new process include: a dramatic reduction in elapsed time to reimburse a traveler; electronic signature approvals and audits; possible reduction in central and departmental resources involved in the travel process; and simplification of the reimbursement process.
Depending upon the business requirements of the travel process, policy changes that can be realized and capabilities of the web-based technical infrastructure, the following items describe ideas to explore and various features that could be developed as part of this project and provided to campus departments and travelers.
General
- A simple, intuitive and faster process
- Uniformity of process and terminology across campus
- Receipts to support reimbursement claims kept in the department
- Common standard process for all travelers, including non-UW travelers
- Central Travel Office capability to maintain business rules, links to other systems and insure current and accurate data
- Standard training for system users
- Tutorial available on-line as a component of the web pages
Automated Capabilities
- Reduce audit requirements in the University Travel Office by having the system flag those items needing review
- Date and location entries to determine per deim authorization and automatic entitlement calculation
- Exchange rates for foreign currency calculated by the system
- Recognize and apply excess lodging authorities
- Identify account codes and determine if codes are authorized for the budget numbers cited
- Tools for accessing travel data and producing various management and ad hoc reports
Payment
- Payment by direct deposit to the traveler’s checking account as an option
- Simplified requirements for reimbursing student travelers and non-UW employed travelers such as job applicants or graduate student recruitments
- Use of the AMEX Business Travel Accounts integrated into the system
Approvals and Security
- Approvals automatically routed within the system for both trip and fiscal authorizations
- Email as integral part of the approval process
- Electronic signatures that support the unique nature of the requirement that travelers must certify the information provided is "accurate and true"
- Electronic signature process that meets the approval of the State Auditor
- Information entered will be secure, (i.e., available to authorized department and central offices only)
Travel Planning and Authorization
- Advance travel plans could be entered into the system by the employee and then handed off to the departmental office support staff for completion
- Pre-travel approvals will be accomplished on-line through use of web pages and email notification to the authorized approver
- The system could allow employee to enter a proposed trip and receive a trip plan including estimated costs (especially useful for determining costs while developing grant and contract proposals)
One of the largest obstacles to a significantly improved travel process is the maze and complexity of applicable federal and state rules and regulations. Travel reimbursement plans must, at a minimum, comply with Internal Revenue Service code for "accountable plans" in order to avoid having travel reimbursements reported as income to employees. The rules and regulations issued by the State of Washington Office of Financial Management (OFM) are designed to insure the state plan meets the IRS accountable plan rules and apply equally to all state employees and all sources of funds. The University has some ability to request modified rules for travel situations that are unique to its operations. This project will closely examine the OFM rules and UW policies and procedures, with a goal of implementing on-line accounting processes which meet all the essential rules and control standards, while greatly simplifying the reimbursement process for individual travelers.
The ideal solution, from the University’s perspective, would be for the complete authority and responsibility for travel rules to reside within the University. Short of that eventuality, the following is a list of the approvals that we may need from OFM in order to achieve the maximum benefits from this project.
- Post payment auditing of claims
- Electronic vouchering and certification
- Pre-travel authorization for certain out-of-state travel
- Lodging reimbursement for lodging obtained from non-commercial sources
- Exceptions to maximum allowable lodging amounts
Other issues that require OFM approval may surface as the project is further defined and developed.
Separate from the UIF process, a Travel Process Improvement team had already been established to work on identifying major opportunities for improving the travel reimbursement process. To provide focus on the needs of the traveler and funding departments, half of the team members are from academic departments. The Steering Committee and sponsors may want to consider using this group as the UIF Process Improvement team or as a resource in some other way.
Assuming reasonable progress on the web-based technology infrastructure and the business process reviews, the likely approach and deliverables (i.e., criteria for measuring progress) from this project, depending upon available resources, could be as follows:
Months 1-12 Business process examinations, identify issues and solution options
Evaluate changes required in central administrative systems
Work with Technology Infrastructure team to develop web architecture and design
Develop initial web tools for first transactions to be implemented
Months 13-24 Pilot department implementations of:
- Reimburse Airfare
- Reimburse mileage
Release airfare/mileage reimbursements to all campus departments
Months 25-36 Pilot department implementations of:
- Reimburse Registration Fees
- Pay in Advance for Registration Fees
- BTA (Business Travel Accounts-AMEX) Payments
Release Registration Fees Process/BTA Payments to all campus departments
Months 37-48 Pilot department implementations of:
- Full Travel Expense Voucher (TEV) Reimbursements
- Payments via Automated Clearing House (ACH)
Release Full TEV Reimbursements to all campus departments
Pilot Implementations for Expense Claim Entry by Individual Travelers
|
