Travel Re-engineering Project Status Anil More Presented to RMLC March 22,

2 Travel Rebuild Strategy MID TERM SHORT TERM LONG TERM Low Customer Satisfaction High Customer Satisfaction CUSTOMER OUTREACH STAFF REBUILD METRICS & REPORTING TRAINING ON KEY PROCESSES ORGANIZATION  Leadership  Alignment  Communication TOOLS  GELCO System  Training PROCESSES  Catch up - Vouchers  Reconciliations  Controls HIGHLY FUNCTIONAL TRAVEL ORGANIZATION IMPLEMENT PEOPLESOFT SYSTEM FOREIGN TRAVEL SYSTEM WEB BASED TRAINING CONSISTENT STREAMLINED BUSINESS PROCESSES CLEAR POLICIES IMPLEMENT ELEMENTS OF NEW BUSINESS MODEL TIMELY VOUCHER PROCESSING 2

Travel Reengineering Schedule

Status of Recommendations CategoryRecommendation Agreed to by DDMStatus Staff Rebuild & Transition to Disbursements 1. Provide strong leadershipComplete leadership transition to Operations Manager. 2. Move expense reimbursement of travel to Disbursements Employees have been moved to AP unit and are matrixed to OPS manager. Reimbursement employees attending AP staff meetings. Controller and Ops Manager scheduled to meet. 3. Fully train staffStaff is getting access to Carlson system, have been testing Gelco updates, and will be part of PeopleSoft development. Communication & Customer Service/Outreach 4. Improve ongoing communication (web, updates, announcements) First edition of Travel Express delivered. Plan to publish at approx monthly interval. Website layout completed. Content being updated. 4

Status of Recommendations (continued) CategoryRecommendation Agreed to by DDMStatus Metrics, Reports & Controls 5. Provide reliable data. Database needs significant clean-up Pending backlog being resolved first. Once backlog has been cleared, Travel Office will clear system documents. Last step will be working with divisions. 6. Develop robust reporting (in new system)High level user requirements to be completed by May; scoped as part of the system project. 7. Expense airfare immediately to division projectsGoing forward, we will expense or accrue current period airline tickets (based on departure date). Programming and set-up currently being discussed. 8. Eliminate recording of liens before trip occursLiens will be eliminated dependent upon #7. 9. Default reimbursement (other than airfare) directly to employee's bank account rather than disbursing checks Need to coordinate with Accounting. Develop campaign and strategy. 70% of employees to convert. May wait until new system is implemented. 5

Status of Recommendations (continued) CategoryRecommendation Agreed to by DDMStatus Metrics, Reports & Controls 10. Provide cash advances via US Bank corporate travel card only Need to understand what our policy is (adjust if needed) and get some reliable data to fix existing issues if they exist. Need a strong reporting tool to keep track of this. Is data available in AP? 11. Perform random audit of expense reports (by Acctng.) Anil to work with new controller and define new parameters. 12. Complete timely accounting reconciliationsAccounting is in process of reconciling Feb '07 as committed to BSO. Plan to reconcile 16 months of backlog by Dec ' Domestic travel: require pre-approval within divisions; recommend using Majority of divisions are planning on continuing to do domestic pre- auth in Gelco till we get to PeopleSoft system. Will incorporate in new design the ability for divisions to understand what travel is planned 6

Status of Recommendations (continued) CategoryRecommendation Agreed to by DDMStatus Domestic & Foreign Voucher Process and Backlog 14. Develop one consistent institutional processAgreement was made to move to one process. Part of the system plan. 15. Require one approval on expense report (must be in Lab’s Signature Authorization System) System design will be tied to SAS. Will be implemented as part of new system. 16. Improve reimbursement turnaround time-2 weeks from the time a traveler certifies expense report. Continue to reduce over time to meet industry standards Backlog is being reviewed by Anil on a weekly basis. Improvement has been made. Backlog significantly reduced. (see last slide) 17. Provide training on how to complete an expense report Initial web-based training being implemented in March; intend to send link out through travel newsletter. Will do town hall/division-specific training. 7

Status of Recommendations (continued) CategoryRecommendation Agreed to by DDMStatus Domestic & Foreign Voucher Process and Backlog (cont.) 18. Reimburse traveler only after all required Receipts have been submitted To be implemented after training is complete. 19. Return incomplete expense reports to traveler’s division Tied directly to #18 PeopleSoft Travel System 20. If all other recommendations are adopted, replace Gelco with an intuitive, user-friendly interface coupled with PeopleSoft travel module, and also mandate use of system Reference System Schedule 21. The system should be used by all travelersReference System Schedule 22. Fully utilize system auditsReference System Schedule 8

CategoryRecommendation Agreed to by DDMStatus PeopleSoft Travel System (cont.) 23. Enable a traveler to fill out expense report off-line and upload to system at later date Reference System Schedule 24. Explore scanning technologyScanning would be very valuable. Currently being explored. 25. Provide easy means to status where expense report is in the process Reference System Schedule 26. Provide option for approval to “follow the money”Reference System Schedule Policies27. Preferred method of reimbursement for meals & incidentals will be actual cost up to the M&IE rate; clarify policy Policy to be updated. First newsletter addressed this issue. Status of Recommendations (continued) 99

Backlog Status