Finance & Accounting Travel Reimbursement Process Analysis. Dr. Julia Pet-Armacost Angela Albert Héctor López October 4, 2001

Transcription

1 Finance & Accounting Travel Reimbursement Process Analysis Dr. Julia Pet-Armacost Angela Albert Héctor López October 4, 2001

2 Overview of Presentation Objective Methodology Process Flow Volume of Documents, Errors Interview, Survey and Staff Data Training Participation Data Process Observations Preliminary Recommendations OEAS 2

3 Objective Identify potential areas for improvement Customer Service Compliance Work Environment OEAS 3

4 Methodology Interview Processors (11) Development of Process Flowcharts Preparer Survey 149 out of 200 preparers responded 30 questions; Overall satisfaction Different aspects: accuracy, consistency, customer service, knowledge, training (preparer), etc Open ended questions OEAS 4

5 Methodology (continued) Traveler Survey 150 out of 650+ travelers responded 30 questions Overall satisfaction Different aspects: accuracy, consistency, customer service, knowledge, training (preparer), etc Open ended questions OEAS 5

6 Methodology (continued) Process Observations General observations Timing of different tasks Collection and analysis of data Turnover Data Capacity analysis RV s processing lead time (department approval and F&A Travel processing) OEAS 6

7 Process Flow Before Traveling Traveler Identifies Need to Travel Preparer issues TAR, obtains TAR# Flowchart # 1 A irlin e, C a r Rental, Hotel Arrangem ents Need Cash Advance and/or Paym ent Authorization? Yes Prepare and Subm it Request Flowcharts #3, #6 Travel Processor Payment Vendors Travel Expenses Cash Advance OEAS 7

8 Cash Advance & Payment Authorization documents Cash Advance Approximately 14 data elements Payment Authorization Approximately 17 data elements Elements in common: OEAS 8

9 Process Flow After Traveling Travel Expenses Preparer issues RV claim A sk for Inform ation /Docum ents Paym ent to Traveler Additions/ Corrections Car Rental In vo ice. Flowchart #4 Audit of RV A irlin e In v o ic e Flowchart #2 Travel Processor Paym ent to Vendors Vendors Purchasing Card Expenses - In vo ice OEAS 9

10 Volume of Documents Volume of Documents Processed: Monhtly, Cumulative, ,000 22,041 20,000 17,569 19,449 15,790 # Of Documents 15,000 10,000 8,580 11,061 14,106 6,625 5,000 4,095 1,869 1,869 2,226 2,530 1,955 2,481 3,045 1,684 1,779 1,880 2,592 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct OEAS 10

11 Volume of Documents by Type 100% Volume of Documents by Type Percentage 80% 60% 40% 20% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct RV Airline Invoice Payment Authorization Car Rental Invoice Gas Invoice Cash Advance OEAS 11

12 Volume of Documents- RV s Volume of RV's Processed: Monhtly, Cumulative, Jan-Oct ,000 11,109 10,000 9,076 9,884 8,118 8,000 7,323 # Of Documents 6,000 4,280 5,652 4,000 3,162 1,817 2, Jan Feb Mar Apr May Jun Jul Aug Sep Oct OEAS 12

13 Distribution of RV s Distribution of Processed RV's by Individual Jan-Oct 2000 Lita 10% Joey 11% Jaggenauth (20%) 2% Carmen 10% Margarita 12% Raynaldo (70%) 8% Laura 14% Maria 12% Oscar 16% Amrita (50%) 5% OEAS 13

14 Processors Turnover, 2000 Category Total Employees Jan 2000 Total Remaining Dec 2000 Turnover USPS % (3/8) OPS % (3/3) A&P % (1/2) Total % (7/13) OEAS 14

15 Processors Turnover, 2000 Category Hired During 2000 Remaining Dec 2000 Turnover OPS % (3/4) USPS Total % (3/5) OEAS 15

16 Error Rate Monthly Error Rate 2.5 Rate - Percentage of Total Transactions OEAS 16

17 Interview Responses Processors (11) Greatest Difficulty in Getting Job Done Absolute Frequency Document Related External to F&A (department) Internal (F&A Travel) Other OEAS 17

18 Interview Responses Processors (continued) External Departments do not cooperate Preparers not following through on faxes Preparers reluctant to obtain information Preparers: buffer between traveler and processor OEAS 18

19 Interview Responses Processors (continued) Internal Desktop procedures need to be uniform Policies: fax ok or not?, phone call ok? Conflicting interpretation of Statutes OEAS 19

20 Interview Responses Processors (continued) Other Respond to all inquiries Filing Answering phone calls, s Interruptions OEAS 20

21 Interview Responses Processors (Continued) Things that Slow down Travel Processing Absolute Frequency Incomplete Documentation Multiple Tasks Calls, Interruptions Regulations Other OEAS 21

22 Interview Responses Processors (Continued) Greatest Opportunity for Improving Travel Claim Processing Absolute Frequency Training Resources Eliminate Redundant Documents 2 7 Other OEAS 22

23 Interview Responses Processors; Other Preparer/Traveler including justification Committee to look at Statutes Standardize Cash Advance Provide manual for preparer Distribute accounts evenly Focus on customer service Processor to review checklist OEAS 23

24 Training Participation Basic, Advance (Source: Human Resources) Position Clerical F & A Exec./Adm./Mgr Tech/Paraprof Faculty Other Professional Other N/A Total OEAS 24

25 Training Participation Preparer, Self reported Took Training? 127 or 85% of total preparers took training Source: Preparer Survey, n=149 OEAS 25

26 Training Participation Traveler, Self reported Took Training? 66 or 44% of travelers took training Source: Traveler Survey, n=151 OEAS 26

27 Rating of Training by Preparer Training Meets Needs? Strongly Disagree Disagree Somewhat Disagree Neutral Somewhat Agree Agree Strongly agree Percentage within survey participants (149) OEAS 27

28 Rating of Training by Traveler Training Meets Needs? % within survey participants Strongly Disagree Disagree Somewhat Disagree Neutral Somewhat Agree Agree Strongly Agree OEAS 28

29 Survey Data Overall Satisfaction, Preparer Overall, I am satisfied with the UCF Travel Unit (n=135) 50% 44% Relative Frequency 40% 30% 20% 10% 0% 1% Strongly Disagree 7% Disagree 9% Somewhat Disagree 4% Neutral 16% Somewhat Agree Agree 19% Strongly Agree OEAS 29

30 Preparer Survey Data Challenges with Travel Most Common Challenges with Travel Unit Excessive Docs. Language/Comm Getting Prompt Response Time Frame/Lead Time Inconsistency Among Processors Lost Documents Absolute Frequency OEAS 30

31 Preparer Survey Data - Opportunities Absolute Frequency What can Travel unit do to increase satisfaction as a travel preparer? (Total responses: N=90) Respond Promptly Be Consistent 5 Inform on Changes 3 Reduce Lead Time 2 Cust. Svc. Training 37 Other OEAS 31

32 Preparer Survey Data Opportunities (Continued) Inform on errors with enough time Have backup people Allow tracking via the Web Do not return RV for one simple error Work with same person Meet with department Assign helpers Make rules more precise Fix On-line forms OEAS 32

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 33

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 34

35 Traveler Survey Data Overall Satisfaction 30% Overal, I am satisfied with UCF Travel Unit (responses:126) 25% 27% Relative Frequency 20% 15% 10% 20% 11% 12% 12% 14% 5% 0% Strongly Disagree Disagree Somewhat Disagree Neutral Somewhat Agree Agree 4% Strongly Agree OEAS 35

36 Traveler Survey Data Most Common Challenges with Travel What are the most common challenges encounter with Travel Unit (total responses=104) Delays, Long Leadtime Insignificant Details Communication Inconsistency Asking for Unavailable Information Language Rudeness, Not Friendly Turnover Lack of Understanding Other Absolute Frequency OEAS 36

37 Traveler Survey Data Most Common Challenges, Other Changes on Procedures Reference Material More than one [processor] looking for information Inflexibility Asking for personal bills Per Diem Lack of Professionalism Lost Documents Frequency for all responses above is 3 or less OEAS 37

38 Traveler Survey Data Opportunities What can the Travel Unit do to increase your satisfaction as a traveler? (Total responses: 97) Improve Turn Around Improve Reference Material Attitude of Helping; be friendly, nice Improve Communication Use less documents, simplify Eliminate redundant details Training, Procedures Be consistent and clear in Procedures Other OEAS 38 Absolute Frequency

39 Traveler Survey Data Opportunities, Other Only one processor from start to end Only one request Update on changes in procedures; keep traveler informed Increase Per diem amount Upgrade processor position Trust traveler Provide status to travelers Stability among processors Frequency of all responses above: 3 or less OEAS 39

40 Traveler Survey Data, zip+4 on mail How often use zip +4? (59 cases) 70% 60% 58% Percentage 50% 40% 30% 20% 10% 7% 12% 10% 14% 0% Always Usually Sometimes Seldom Never OEAS 40

41 Traveler Survey Data, Travel Envelope as Checklist How often use envelope as checklist? (116 cases) Percentage of Cases 60% 50% 40% 30% 20% 10% 0% 49% 21% 9% 11% 10% Always Usually Sometimes Seldom Never OEAS 41

42 Traveler Survey Data, Claims Delayed % of RV delayed because additionl information was requested? (132 cases) Percentage of Cases 30% 25% 20% 15% 10% 5% 0% 28% 26% 15% 13% 9% 9% 0% 20% 40% 60% 80% 100% Percentage of Travel Claims OEAS 42

43 Process Observations Review of Pending RV s 7 processors 83 documents Observations - processing RV s and other documents 7 processors 84 transactions (document review, posting) Review of RV s file room 231 documents reviewed OEAS 43

44 Pending RV s - Reasons Reason for Pending RV's (Dec , n=67 RV's, 91 reasons) Discrepancies/Errors Lack of Funds Missing Registration Car/Hotel Upgrade Missing Agenda Errors - Meals Errors - Mileage Missing Receipts Generic Receipts Hotel >0 List of Travelers Personal Time Per Diem Rates TAR- Blanket vs One Time TAR - Original Other OEAS 44 Absolute Frequency

45 Delay Elements vs. Training Material Not Included in Training Material No funds available Missing agenda Wrong account or TAR # Contact/Back up for generic receipts Benefit to the State statement List of travelers/signatures (group travel) Date or time discrepancies OEAS 45

46 Observations Highlights In 84 transactions observed 26 phone calls made 13 phone calls received 17 interruptions 38 trips to photocopier OEAS 46

47 Observations Processing Time (minutes) Processing Time Review RV Key-In RV Key In Air tickets Invoice Phone Call Made Phone Call Received Walked for copies Interruption -5 OEAS 47

48 Workload vs. Resources Monthly Daily(2) Workload (documents) (1) 2, Workload (minutes) (3) 66,000 3,150 Workload (hours) (3) 1, Capacity (documents) (4) 2, Capacity (minutes) (4) 70,560 3,360 Capacity (hours) (4) 1, (1) 10 months average. (2) 21 days per month. (3) All 30 minutes processing time. (4) 8 7 hours/day. OEAS 48

49 Process Observations Other Highlights When necessary, processors call department immediately after reviewing the RV Some processors willing to provide consultation to department (by phone or in person) OEAS 49

50 Process Observations Other Highlights (continued) RV Processing sequence of tasks Differences Among Processors: Immediate posting: Review and post if ready for payment Batch 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 50

51 Reimbursement Processing Lead Time Reimbursement Voucher Lead Time - All Cases # of Working Days Approval to Clock- In - All Clock-In to Payment-All Total Time - All Clock-In to Contact Contact to Response -10 OEAS 51

52 Reimbursement Processing Lead Time (continued) Reimbursement Voucher Processing Lead Time - Adjusted for Missing Documents and Errors # of Working Days Approval to Clock In, Adjusted Clock-In to Payment Adjsuted Total Time - Adjusted OEAS 52

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 53

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 54

55 Preliminary Recommendations- Process Documents Consider reduction of number of documents: Can the, Cash Advance and Payment Authorization documents/transactions be combined? Review and post RV s within 1-2 days 141 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 s Dedicated resource (other than supervisor) Perform audit before posting OEAS 55

56 Preliminary Recommendations- Process (continued) Photocopies 38 trips in 84 transactions (45%) Are they really needed? OPS assistant to do it Impact: hours/year OEAS 56

57 Preliminary Recommendations- General Procedures Immediate response to customer on inquiries (phone calls, , etc.) Performance Measurement Document and review processing lead time Provide 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 57

58 Preliminary Recommendations- General Procedures Documentation Standardize how to make notations on RV s Standardize how to document communication with customer (request for additional information, etc.) Customer Relations Conduct annual survey to assess improvement (travelers, preparers) OEAS 58