Best in Class Travel Program

Transcription

1 Best in Class Travel Program Ladette Williams, Vice President - JPMorgan Chase October 15-18, 2007

2 Session Objects Create awareness of Best in Class Travel Program best practices Share highlights from Clients who have implemented some of these best practices Obtain additional best practices from session attendees

3 Agenda Review Best in Class Travel Program Best Practices Highlight customers who have implemented some of these best practices Open Discussion

4 Best In Class Travel Program Best Practices Review

5 Areas of Review Policy: rules and regulations of travel Controls: appropriate limits and usage Delinquency Management: minimize past due balances Training & Communication: educate and inform users Card product: pay for the travel Expense reporting: account for the travel Management Reporting: manage the expenses

6 Best in Class Travel Program Policy: rules and regulations of travel Policy should be clear and well-communicated online Benefits: quick access, easy updates, fewer calls Policy should be consistent with culture of organization Benefits: greater compliance, employee satisfaction Impose penalties for non-compliance with policy Benefits: reinforce compliance, create accountability Centralize corporate travel management functions Benefits: reduce expenses, enhance vendor negotiation

7 Best in Class Travel Program Controls: appropriate limits and usage Set reasonable spend limits Should correspond to historical travel patterns and requirements of the job Restrict through use of Merchant Category Codes (MCC s) Card must only be used for official travel related expenses Agency may further restrict through policy MCC s are not 100% foolproof work with merchants/contractors and JPMC to correct inaccurate MCC s

8 Best in Class Travel Program Delinquency Management: minimize past due balances Lower credit limits Monitor usage and review monthly reporting Agency suspension of privileges Card must only be used for official travel related expenses Review of monthly delinquency report Proactive communication to cardholder for past due situations

9 Best in Class Travel Program Training & Communication: educate and inform users Train all cardholders on the specifics of the Travel Card program Make sure that your training goals include: Ensuring that cardholders and program administrators fully understand their roles Documentation of training is maintained Refresher training provided on a periodic basis Training that is easily accessible Training topics should: Include standards of conduct/ethics Improve understanding of the travel policy Clearly state consequences of misuse Review Bank procedures

10 Best in Class Travel Program Card product: pay for the travel Senior Management should mandate the credit card program for all travel expenses (TAC 125.8) Benefits: reinforce compliance and create accountability Limit reimbursements to Out-Of-Pocket and State travel card expenditures only Where possible, select corporate liability option/pay directly to JPMC where possible Benefits: reduce administrative costs in billing/collecting/losses Monitor behavior utilize exception reporting Agency may further restrict through policy Benefits: catch problems early before they become losses

11 Best in Class Travel Program Expense Reporting: account for the travel Use an automated voucher / expense reporting system that interfaces with the general ledger Benefits: efficiency, cost savings, employee satisfaction Give cardholders access to view charges on-line Benefits: Encourage timely expense reporting Notify employees of reimbursement via Benefits: increase employee satisfaction and efficiency

12 Best in Class Travel Program Management Reporting: manage the expenses Use on-line management reporting features Benefits: receive data on where dollars are spent Use reports and data to data-mine and conduct random audits (10-15%, not 100%), automated if possible Benefits: quickly identify employees outside parameters Use data to secure preferred vendor agreements within major expense categories Benefits: enhanced negotiating position

13 Best In Class Travel Program Client Highlights

14 JPMC Corporate Card Client Best In Class Reporting Policy and Benefits

15 Best in Class Travel Card Structure Individual bill corporate pay for airfare expenses individual pay for all other expenses Use an expense reporting tool to better track and manage travel expenses

16 Best in Class Encourage use Mandate use of the State of Texas Travel Card Mandate training/policy reinforcement Cardholder Benefits Charges imported directly into Expense report Avoids duplication/non-reimbursement of charges

17 Best in Class Company Benefits Flexibility of Integrated credit card data with Webbased expense reporting system Allows for better tracking and reporting at all levels of the organization All credits are accounted for & returned to the company

18 Stacie Tatom, TDJC Travel Manager Best In Class Policies Contact Information:

19 TDJC Best In Class Policy Advance Travel is limited to overnight travel only Mileage or meals claimed for one-day travel are not eligible. Employees who travel more than three (3) times per fiscal year or spend at least $500 per fiscal year should apply for the State of Texas Corporate Travel Card. Employees that have been denied a State of Texas Corporate Travel Card are encouraged to reapply each September.

20 TDJC Best In Class Policy The travel card coordinator prepares and distributes the following letters and / or reports: A letter to each cardholder that has 3 or more charges and/or total charges exceeding $100 in a billing period to MCC codes that are not normally travel related. This letter reminds the cardholder of their agreement to only use the card for travel purposes and requests they submit an explanation of the charges listed in the letter. A list to each Division Director of their employees with a Travel card balance 30 days past as a status update. A letter to each cardholder with a past due balance is sent reminding them of their obligation.

21 Paul Goyne, UT Arlington Director of Accounts Payables Best In Class Managing Delinquencies Contact Information:

22 UT-Arlington Best In Class Managing Delinquencies Copies of invoices are received once a week UT Arlington department account number is posted on invoice Spreadsheet from Travel Agency is received once a week Spreadsheet has all charges listed Contains traveler s name, traveler name, number, and amount of ticket Invoices are posted to spreadsheet from travel agency each week Invoice amounts should match amounts on spreadsheet JPMorgan Chase monthly statement is received Invoice amounts are matched against statement and cross referencing the invoice and statement with an internal identifier number (1,2,3, etc) Each airfare transaction is assigned Service fees are matched to the airfare charge Airfare and Service are listed as one charge on the payment document

23 UT-Arlington Best In Class Managing Delinquencies Cont d Spreadsheet from Travel Agency should equal the total on the JPMorgan Chase statement If there is a charge on the JPMorgan Chase statement and no invoice, the travel agency is notified for a copy of the invoice Amounts are changed on the travel agency spreadsheet If there is an invoice that is not listed on the JPMorgan Chase statement, it is removed from the spreadsheet and put in the invoice hold file Once the Travel Agency Spreadsheet and the JPMorgan Chase Statement Match, payment is keyed in. Note: UT Arlington designed their spreadsheet to assist in paying the CBA and reporting transactions to the various departments on campus. It can be sorted by account, amount, destination, or by transaction number to help locate balancing discrepancies.

24 Cynthia D. Conner, UH Downtown Director of Accounts Payables UHD Travel Office Best In Class Travel Advance Card Structure Contact Information:

25 U of H Downtown Best in Class Card Product Structure Hotel Program (CBA) Cards issued in the name of the Univ. of Houston DT Issued to infrequent travelers A deactivation date is predetermined prior to issuing card MCC Coded for Hotel & Tax Only The Hotel Program is instrumental in cities whose hotels are known to be problematic to travelers, for example, Las Vegas & Orlando. It has proven to reduce additional paperwork. Foreign & Study Abroad Program (CLIBA) Cards issued in the name of the traveler. The department determines the budget and this becomes the credit limit on the card. Issued to a pre-determined list of frequent travelers who travel to foreign countries A pre-determined amount is loaded on each card prior to issuing/card information is loaded into traveler s profile Student Group Program (CBA) Cards issued in name of Student Group. The department determines the budget and this becomes the credit limit on the card. Issued to group facilitator or UHD employee accompanying students on trip (occasional foreign travel) A deactivation date is predetermined prior to issuing card The Student Group must return all original receipts along with this card once travel is completed. Travel cards used for foreign travel are part of the emergency planning for UHD foreign travelers. They can be used for emergency travel, alternate ground or air transportation, needed due to political or social unrest or threats; natural disaster; or personal medical emergency, (outside the parameters of trip insurance coverage); any other expenses approved on Travel Request form.

26 Thank You for attending!! Questions?

27 Contacts State of Texas Melissa Hernandez, State Comptroller s Office TX Procurement and Support Services Melissa.hernandez@cpa.state.tx.us David Bennett, State Comptroller s Office TX Procurement and Support Services David.bennett@cpa.state.tx.us JPMorgan Chase Relationship Managers Ladette Harris-Williams ladette.harris-williams@chase.com Toinette Miller toinette.a.miller@jpmchase.com