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Secretariat for Administration and FinanceOffice of Procurement ServicesSecretariat for Administration and FinanceOffice of Procurement Services

General SecretariatTravel Report

2007

General SecretariatTravel Report

2007

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Table Of ContentsTable Of Contents

• Why do we travel? Why do we travel?

• Our MandateOur Mandate

• Administrative Memorandum 79 Rev.3Administrative Memorandum 79 Rev.3

• Transformation of Travel Services and Achievements Transformation of Travel Services and Achievements in 2007in 2007

• Travel DataTravel Data

• Compliance with Travel Policy MandateCompliance with Travel Policy Mandate

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Why do We travel? An integral part of our business

Why do We travel? An integral part of our business

An investment in achieving the objectives of the Organization.An investment in achieving the objectives of the Organization.

Allows the OAS to execute its mandates by bringing people Allows the OAS to execute its mandates by bringing people together, both at headquarters and throughout the region, to together, both at headquarters and throughout the region, to strengthen cooperation and advance common interests.strengthen cooperation and advance common interests.

As the region’s premier political forum and a key partner in As the region’s premier political forum and a key partner in development for Latin America and the Caribbean, OAS uses its development for Latin America and the Caribbean, OAS uses its unique convening powers. Hence, travel facilitates attendance unique convening powers. Hence, travel facilitates attendance at Summits, Ministerials, high level meetings and regional at Summits, Ministerials, high level meetings and regional networking fora. networking fora.

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Why do We travel? An integral part of our business

Why do We travel? An integral part of our business

OAS has the legitimacy, credibility and mandate to prevent OAS has the legitimacy, credibility and mandate to prevent conflicts, secure peace and protect democratic values; travel is conflicts, secure peace and protect democratic values; travel is a key element in performing these functions. In 2007 alone a key element in performing these functions. In 2007 alone there were 6 electoral observation and exploratory missions, there were 6 electoral observation and exploratory missions, as well as several peace missions undertaken at the highest as well as several peace missions undertaken at the highest levels.levels.

Design and implementation of development cooperation Design and implementation of development cooperation activities are field oriented, necessitating extensive travel.activities are field oriented, necessitating extensive travel.

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Our MandateOur Mandate

• Instruct the General Secretariat to present to the Permanent Council, no later than Instruct the General Secretariat to present to the Permanent Council, no later than February 29, 2008, a progress report describing the improvements made to the travel February 29, 2008, a progress report describing the improvements made to the travel procurement process resulting from the new contractual relationship that exists between procurement process resulting from the new contractual relationship that exists between the General Secretariat and its exclusive provider of travel services, as well as the new the General Secretariat and its exclusive provider of travel services, as well as the new operative procedures that this new entity follows in order to provide these services in a operative procedures that this new entity follows in order to provide these services in a manner that is satisfactory and efficient, and that is consistent with the recommendations manner that is satisfactory and efficient, and that is consistent with the recommendations on travel made by the Board of External Auditors in its report to the Permanent Council on travel made by the Board of External Auditors in its report to the Permanent Council (JAE/doc.37/07) and with the rules and regulations of the Organization*.(JAE/doc.37/07) and with the rules and regulations of the Organization*.

• Instruct the General Secretariat to implement more effective enforcement mechanisms Instruct the General Secretariat to implement more effective enforcement mechanisms for ensuring compliance with the rule established by the Permanent Council which for ensuring compliance with the rule established by the Permanent Council which requires that all tickets paid for by the Regular Fund, the Special Multilateral Fund of the requires that all tickets paid for by the Regular Fund, the Special Multilateral Fund of the Inter-American Council for Integral Development (FEMCIDI), specific funds, and trust Inter-American Council for Integral Development (FEMCIDI), specific funds, and trust funds administered by the General Secretariat, be purchased in economy class, except funds administered by the General Secretariat, be purchased in economy class, except for travel by the Secretary General, the Assistant Secretary General, and the Chair of the for travel by the Secretary General, the Assistant Secretary General, and the Chair of the Permanent Council, and to report to the Permanent Council on a quarterly basis on any Permanent Council, and to report to the Permanent Council on a quarterly basis on any instances of noncompliance with those rules.instances of noncompliance with those rules.

* External Auditors recommended more stringent oversight of travel advances.

Resolution AG/RES. 2353 (XXXVII-O/07),Resolution AG/RES. 2353 (XXXVII-O/07), Section III General Provisions, paragraph A.11, calls Section III General Provisions, paragraph A.11, calls upon the General Secretariat to:upon the General Secretariat to:

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Administrative Memorandum No 79 Rev. 3

Administrative Memorandum No 79 Rev. 3

• It covers all official, statutory, OAS General Assembly and other group travel.It covers all official, statutory, OAS General Assembly and other group travel.

• Provides the administrative and financial procedures for all airfares and travel Provides the administrative and financial procedures for all airfares and travel reservations.reservations.

• Determines the procedures for travel advances for per diem and terminal Determines the procedures for travel advances for per diem and terminal expenses, and the recording of the corresponding obligation in the financial expenses, and the recording of the corresponding obligation in the financial system.system.

• Guides travelers traveling with the OAS official travel document on the Guides travelers traveling with the OAS official travel document on the procedures to request and return the official travel document.procedures to request and return the official travel document.

• Outlines the instructions for timely reporting of travel results and for the Outlines the instructions for timely reporting of travel results and for the presentation of the Travel Expense Claim (TEC).presentation of the Travel Expense Claim (TEC).

Travel Policy revised on March 03, 2006 provides the rules and instructions for Travel Policy revised on March 03, 2006 provides the rules and instructions for all travel on behalf of the General Secretariat of the OAS. Both internal and all travel on behalf of the General Secretariat of the OAS. Both internal and external auditors monitor the adherence and compliance to these rules.external auditors monitor the adherence and compliance to these rules.

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Transformation of Travel Services and Achievements in

2007

- Executing the Mandate -

Transformation of Travel Services and Achievements in

2007

- Executing the Mandate -

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Transformation of Travel Services and Achievements in 2007

Transformation of Travel Services and Achievements in 2007

Dec. 06Dec. 06

Jan. 07Jan. 07

Feb. 07Feb. 07

Nov. 07Nov. 07

Jan. 08Jan. 08

The Contracts Award Committee recommended the selection The Contracts Award Committee recommended the selection of Omega World Travel to provide off-site travel services for of Omega World Travel to provide off-site travel services for the GS/OAS.the GS/OAS.

Contract signed with Omega.Contract signed with Omega.

Implementation of full off-site services began.Implementation of full off-site services began.

Agreement signed with American Express for the central Agreement signed with American Express for the central billing of all travel-related services. billing of all travel-related services.

American Express services initiated.American Express services initiated.

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Improvements Achieved in 2007Cost Effective Management

Improvements Achieved in 2007Cost Effective Management

On-Site: Approx. yearly cost (2006)On-Site: Approx. yearly cost (2006)

Two G6 positions @ approx. $55,000 / yearTwo G6 positions @ approx. $55,000 / year $ 110,000$ 110,000

Opportunity cost of office space currently rentedOpportunity cost of office space currently rented $ 55,200$ 55,200

Charge per ticket: $25 x 3,525 ticketsCharge per ticket: $25 x 3,525 tickets $ 88,125$ 88,125

Total Yearly Cost of keeping On-Site officeTotal Yearly Cost of keeping On-Site office $ 253,325$ 253,325

Off-Site: Approx. yearly cost 2007Off-Site: Approx. yearly cost 2007

One part-time G6 @ approx. $55,000 / yearOne part-time G6 @ approx. $55,000 / year $ 27,500$ 27,500

Charge per ticket: $37 x 3,525 ticketsCharge per ticket: $37 x 3,525 tickets $ 130,425$ 130,425

Total Yearly Cost of keeping Off-Site officeTotal Yearly Cost of keeping Off-Site office $ 157,925$ 157,925

Total Yearly Savings from Off-Site officeTotal Yearly Savings from Off-Site office $ 95,400*$ 95,400*

* Savings represent the difference between On-site and Off-Site yearly costs.* Savings represent the difference between On-site and Off-Site yearly costs.

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Improvements Achieved in 2007As part of the Transformation

Improvements Achieved in 2007As part of the Transformation

Other Areas of Improvements:Other Areas of Improvements:

• Centralized travel services for improved accountability, Centralized travel services for improved accountability, oversight and reporting.oversight and reporting.

• More accurate statistics to identify and measure travel costs, as More accurate statistics to identify and measure travel costs, as well as validate adherence to policies.well as validate adherence to policies.

• GS/OAS negotiated fares and rates with airlines (e.g. COPA GS/OAS negotiated fares and rates with airlines (e.g. COPA Airlines).Airlines).

• 24/7 emergency travel availability.24/7 emergency travel availability.

• 24/7 VIP services and dedicated telephone lines.24/7 VIP services and dedicated telephone lines.

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TRAVEL DATAJanuary – December

2007 Pre-Audited Figures

TRAVEL DATAJanuary – December

2007 Pre-Audited Figures

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TRAVEL DATA - by YearTRAVEL DATA - by Year

11 The elimination of Generic Vendors in 2007 resulted in better reporting of other travel expenses that The elimination of Generic Vendors in 2007 resulted in better reporting of other travel expenses that used to be recorded into miscellaneous accounts. Currently these transactions are recorded using the used to be recorded into miscellaneous accounts. Currently these transactions are recorded using the

corresponding accounts, such as airfare, per diem and terminal expensescorresponding accounts, such as airfare, per diem and terminal expenses ..

Amount in MillionsAmount in Millions

DescriptionDescription 20062006 20072007 2007 By Fund2007 By Fund

Total Budget Expenses Total Budget Expenses ExecutionExecution 136.7136.7 167.9167.9 Regular FundRegular Fund

Specific & Specific & Voluntary Voluntary

FundsFunds

Airfare 4.9 6.0 1.0 5.0

Per Diem 3.8 4.7 0.7 4.0

Terminal Expenses 0.5 0.6 0.1 0.5

Fellowships Travel 0.6 0.6 0.5 0.1

Other Travel Expenses 1 3.3 0.8 0.1 0.7

Total Travel 2007Total Travel 2007 13.113.1 12.712.7 2.42.4 10.310.3

Travel % of Total BudgetTravel % of Total Budget 9.6%9.6% 7.6%7.6% 1.4%1.4% 6.2%6.2%

Airfare % of Total BudgetAirfare % of Total Budget 3.6%3.6% 3.6%3.6% 0.6%0.6% 3.0%3.0%

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TRAVEL DATAAirfare by ChaptersTRAVEL DATAAirfare by Chapters

Total

 Chapter (In Millions)

Office of the Secretary General 0.4

Office of the Assistant Secretary General 0.5

Autonomous and/or Decentralized Entities 0.3

International Legal Affairs 0.1

Secretariat for Multidimensional Security 1.2

Secretariat for Political Affairs 1.5

Exec. Secretariat for Integral Development 1.8

Secretariat for Administration and Finance 0.2

Grand Total 6.0

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TRAVEL DATAFare Breakdown by Supplier

TRAVEL DATAFare Breakdown by Supplier

Description Amount

Omega World Travel 3.0

Other Travel from HQ 0.3

Travel Away from HQ* 2.7

Total Fares 2007 6.0* Travel Away from HQ includes all travel purchased outside the US and any local travel * Travel Away from HQ includes all travel purchased outside the US and any local travel agencies in the Member States. As of 2008 most the fares purchased away from HQ will be agencies in the Member States. As of 2008 most the fares purchased away from HQ will be purchase through the Omega Radius partners.purchase through the Omega Radius partners.

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TRAVEL DATAfrom OMEGA

TRAVEL DATAfrom OMEGA

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OMEGA Travel Summary 2007

OMEGA Travel Summary 2007

TravelersTravelers TicketsTickets Amount Paid Amount Paid

(Round Up) (Round Up) Average Per Average Per

Ticket Ticket

Total 2007Total 2007 1,6761,676 3,5253,525 $ 3.0 Millions$ 3.0 Millions $ 820 $ 820

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Exceptions to use of Lowest FareBased on Tickets Issued

Exceptions to use of Lowest FareBased on Tickets Issued

Lowest fare accepted 94.44%

Traveler required ticket with flexible schedule

0.12%

Alternative Routing 2.10%

Alternative Airline3.31%

Use of BWI airport declined0.03%

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Travel Policy MandateTravel Policy Mandate

• Staff Rule 108.9(a), AG/RES. 2257 (XXXVI-O/06), Paragraph III.A.12.b Staff Rule 108.9(a), AG/RES. 2257 (XXXVI-O/06), Paragraph III.A.12.b and AG/RES. 2353 (XXXVII-O/07), Section III General Provisions, and AG/RES. 2353 (XXXVII-O/07), Section III General Provisions, paragraph A.11 require that all tickets paid for by all funds should “be paragraph A.11 require that all tickets paid for by all funds should “be purchased in economy class, except for travel by the Secretary General, purchased in economy class, except for travel by the Secretary General, the Assistant Secretary General, and the Chair of the Permanent the Assistant Secretary General, and the Chair of the Permanent Council”… “unless specific exception is made at the direction of the Council”… “unless specific exception is made at the direction of the Secretary General.”Secretary General.”

• From time to time, the Secretary General grants exceptions to VIPs, From time to time, the Secretary General grants exceptions to VIPs, including high officials and former foreign ministers serving as leaders of including high officials and former foreign ministers serving as leaders of electoral and special missions. They may have served pro-bono, at electoral and special missions. They may have served pro-bono, at considerable savings to the Organization. In many cases, cost of full considerable savings to the Organization. In many cases, cost of full economy fare was not significantly different from business class.economy fare was not significantly different from business class.

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Non Economy - with SG authorization

1% of Travelers($304K)

SG, ASG & CPCLess than 1% of

Travelers($293K)

Non Economy - Non Compliant3% of Travelers

($74K)

Economy96% of Travelers

($2,288K)

Compliance With Travel Policy Mandate

Compliance With Travel Policy Mandate

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Looking Forward Transformation Continues in 2008

Looking Forward Transformation Continues in 2008

• OAS on-line booking and expense reporting tools.OAS on-line booking and expense reporting tools.

• Stricter enforcement of economy class travel.Stricter enforcement of economy class travel.

• Bring on board Omega Radius partners in the Member States.Bring on board Omega Radius partners in the Member States.

• Added travel statistics from OAS country Office in Omega’s Added travel statistics from OAS country Office in Omega’s reporting to monitor and optimize travel expenditures away from reporting to monitor and optimize travel expenditures away from headquarters.   headquarters.   

• Enhanced reporting capabilities to better analyze OAS travel Enhanced reporting capabilities to better analyze OAS travel expenditures.expenditures.

• Increase staff awareness of the importance and impact of Increase staff awareness of the importance and impact of savings derived from advance travel planning.savings derived from advance travel planning.

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Miles and PointsMiles and Points

MilesMiles: By airline policy, all miles are awarded to the travelers.: By airline policy, all miles are awarded to the travelers.

PointsPoints: The GS/OAS has negotiated with American Airlines a special : The GS/OAS has negotiated with American Airlines a special point program called “Business ExtrAA Account” that awards point program called “Business ExtrAA Account” that awards the OAS with one point for every $10 spent on eligible tickets. the OAS with one point for every $10 spent on eligible tickets. These points are accumulating and are managed by the travel These points are accumulating and are managed by the travel desk for official use only.desk for official use only.

The OAS is in the process of negotiating these point programs The OAS is in the process of negotiating these point programs with other airlines throughout 2008.with other airlines throughout 2008.

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Response to the Recommendation made by the Board of External

Auditors (JAE/doc.37/07)

Response to the Recommendation made by the Board of External

Auditors (JAE/doc.37/07)

• As part of the overall SAF Transformation and Modernization Project, As part of the overall SAF Transformation and Modernization Project, the entire travel expense claim process is under review. the entire travel expense claim process is under review.

• SAF is currently evaluating the feasibility of using third-party on-line SAF is currently evaluating the feasibility of using third-party on-line travel expense reporting tools. travel expense reporting tools.

• The upgraded version of Oracle’s account payable module (currently The upgraded version of Oracle’s account payable module (currently being tested) will allow travel and other advances (called “pre-being tested) will allow travel and other advances (called “pre-payments”) to be tracked by supplier at the project level.payments”) to be tracked by supplier at the project level.

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In Conclusion… In Conclusion…

Travel will continue to be a central activity of the Travel will continue to be a central activity of the GS/OAS as it strives to implement the mandates GS/OAS as it strives to implement the mandates of its Member States. While costs will continue of its Member States. While costs will continue to be impacted by inflationary pressures, we to be impacted by inflationary pressures, we anticipate that improvements implemented or anticipate that improvements implemented or anticipated will keep travel costs under control.anticipated will keep travel costs under control.