1. TRAVEL REPORT FOR 2006 TRANSFORMING TRAVEL SERVICES
Secretariat for Administration and Finance
Office of Procurement Services
January 23, 2007
TRAVEL REPORT FOR TRANSFORMING TRAVEL SERVICES
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2. Table of Contents Travel: an Integral Part of our Business The Mandate
Transforming the Secretariat’s Travel Services
Main objectives
Looking forward
New services provider
How OAS benefits
Compliance with Travel Policy Mandate
Travel Data
Factors that influence costs
Regular Fund
Specific Funds
Travel by Areas
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3. Travel An integral part of our business
An investment in achieving the objectives of the Organization.
Allows the OAS to execute its mandates by bringing people together, both at headquarters and throughout the region, to strengthen cooperation and advance common interests.
As the region’s premier political forum and a key partner in development for Latin America and the Caribbean, OAS uses its unique convening powers. Travel facilitates attendance at Summits, Ministerials, high level meetings and regional networking fora.
OAS has the legitimacy, credibility and mandate to prevent conflicts, secure peace and protect democratic values; travel is a key element in performing these functions. In 2006, alone there were 18 electoral observation missions and 4 exploratory missions, as well as several peace missions undertaken at the highest levels.
Design and implementation of development cooperation activities are field oriented, necessitating extensive travel.
Travel is an integral instrument for the OAS to execute its mandates.
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4. Mandate for this Presentation
Resolution AG/RES (XXXVI-O/06), Section III General Provisions, paragraph A.12, calls upon the General Secretariat to:
a. design and implement measures to better rationalize resources assigned to travel expenses and paid for by the Regular Fund, FEMCIDI, specific funds, and trust fund administered by the General Secretariat.
b. implement more effective enforcement mechanisms for assuring compliance with the rule established by the Permanent Council which requires all tickets paid for by the Regular Fund, FEMICIDI, specific funds, and trust funds administered by the General Secretariat, be purchased in economy class, except for 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 instances of noncompliance with those rules.
c. instruct that any offices and units traveling using Specific Funds to provide a record to the donor on a quarterly basis.
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5. Presentation Outline
In this presentation, the Secretariat is reporting on:
Its effort to transform the ways by which the OAS conducts travel activities; and
Compliance with travel mandate.
In addition, the Secretariat is providing:
C travel data, setting the base for future travel reporting.
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6. TRANSFORMING TRAVEL SERVICES
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7. - Main Objectives -
Design and implement measures for more cost-effective management of OAS travel resources.
Equip the OAS with the best travel services available; expand services.
Centralize provision of travel services for better accountability, oversight and enhanced reporting capabilities.
Ensure that travel activities reflect program and project objectives of the Organization.
Achieve high customer service satisfaction.
Effect travel changes in a timely and seamless manner.
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8. - Looking Forward -
In 2007, the Secretariat will continue to address the travel-related concerns raised by the governing bodies and OAS travelers.
Full implementation of a new off-site travel service provider by February 28, 2007.
Institute central billing as part of its cost management program.
Expand travel services to include hotel and vehicle rental programs.
Consolidate and track all OAS travel purchases and provide reliable reports that will help identify and properly measure all travel costs, as well as adherence to travel policies.
Achieve the Secretariat’s goal for best practices and transparency of business transactions.
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9. New Travel Services Provider
Background:
Summer 2006 – The Secretariat initiated a thorough market search and held consultation meetings with travelers and with other international organizations.
Oct Published a Request-for-Proposal for an off-site travel services provider, with the closing date of Nov. 2, 2006.
Nov Conducted an extensive evaluation of the four proposals received and submitted recommendations to the OAS Contract Awards Committee (CAC).
Dec Secretary General approved the CAC’s recommendation for contract award to Omega World Travel (Omega) as the provider of off-site travel services.
Jan Contract signed with Omega.
Feb. 07 – Implementation of full off-site services and customized on-line booking.
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10. How OAS Benefits From The New Travel Services Provider
Anticipates higher quality services and responsiveness
Omega - negotiated fares and rates with airlines.
24/7 emergency availability.
$15,000 signing bonus with selected airlines (upfront discounts).
24/7 VIP services and dedicated telephone lines.
Access to available upgrades at no cost from economy class for eligible travelers.
Improved and accurate travel statistics for reporting purposes.
Customized OAS on-line booking tool.
Group meetings and conferences facilitated.
Satellite offices in member states.
Benefit and support programs such as building customized websites and holding travel seminars.
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11. Compliance with Travel Policy Mandate
Staff Rule 108.9(a) and AG/RES (XXXVI-O/06), Paragraph III.A.12.b require that all tickets paid for by all funds should “be purchased in economy class, except for travel by the Secretary General, the Assistant Secretary General, and the Chair of the Permanent Council”… “unless specific exception is made at the direction of the Secretary General.”
The SG’s Office strictly applied the exception policy. Travel Office required written exception before issuing other-than-economy class tickets.
In 2006, approximately $209,000 non-economy class travel was undertaken by ten travelers in support of electoral, peace and other special missions, of which 86% was conducted with Specific Funds.
VIP travelers granted exceptions include two former presidents and several former foreign ministers serving as leaders of electoral and special missions. They served pro-bono, at considerable savings to the Organization. In many cases, cost of full economy fare was not significantly different from business class.
Decentralization has limited Secretariat’s past capacity to capture fully project-level compliance. That is being addressed with new travel service arrangements. At this point, we are over 95% compliant.
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12. TRAVEL DATA
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13. Travel Data Factors that influence travel costs: Internal Realities:
More proactive organization, with increased presence in the hemisphere.
Increased travel for electoral and other special missions in 2006.
Expanded Headquarters supervision of field operations.
Improved travel record-keeping, but data is still “soft”.
External pressures:
Increased energy costs and fuel surcharges reflected in higher airfares (up to 20-25% in 2006 industry-wide).
Increased airline penalties for reservation changes on cheaper economy fare.
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14. Travel Data - Regular, FEMCIDI and Specific Funds -
Total Budget Execution
2006
Regular Fund
$ M
FEMCIDI & Specific Funds
58.7 M
Total
$ M
Travel Expenses
Expenditure Type
Airfare
$ M
Per Diem
3.8 M
Terminal Expenses
0.5 M
Fellowships Travel
0.6 M
Other Travel Expenses*
3.3 M
Total Travel Costs
$ M
% of Budget Execution
9.6%
* Other travel expenses include: repatriation costs, education travel, auto mileage allowance, vehicle rental, telephone and other telecommunications costs, installation allowance, excess luggage, loss of personal effects, field travel, visas, passport renewal and miscellaneous costs.
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15. Travel Data by Fund Travel Expenses Expenditure Type Regular Fund
FEMCIDI & Specific Funds
Airfare
$ M
$ M
Per Diem
0.5 M
3.3 M
Terminal Expenses
0.1 M
0.4 M
Fellowships Travel
Other Travel Expenses
2.8 M
Grand Total
$ M
$ M
% of Budget Execution
2.9%
18.5%
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16. Travel by Areas (in US $ thousands)
TOTAL
Breakdown %
FEMCIDI & Spec. Funds %
Regular Fund
Office of the Secretary General
527
4.0%
286
54%
241
46%
Office of the Assistant Secretary General
415
3.1%
345
83% 70
17%
Office of Conferences and Meetings
314
2.4%
292
93% 22 7%
Coordinating Office for the Offices and Units of the General Secretariat in the member States 60
0.5% 25
42% 35
59%
Office of the Secretariat to the GA, the Meetings of Consultation, the Permanent Council and Subsidiary Organs
160
1.1%
144
90% 16
10%
Coordinating Office for Specialized Units
358
2.7%
305
85% 53
15%
Autonomous and decentralized organs, Agencies, Entities, and dependencies
1,088
8.3%
363
33%
725
67%
Secretariat for Political Affairs
3,983
30.3%
3,747
94%
236 6%
Executive Secretariat for Integral Development
3,375
25.7%
3,226
96%
149 4%
Department of International Legal Affairs
208
1.6% 45
22%
163
78%
Executive Secretariat of the Inter-American Drug Abuse Control Commission
1,479
11.3%
1,358
92%
121 8%
Secretariat for the Inter-American Committee against Terrorism
414
3.2%
100% 0%
Department for the Prevention of Threats against Public Security
265
2.0%
262
99% 3 1%
Secretariat for Administration and Finance
495
3.8% 30
465
Grand Total
13,141
100.0%
10,842
2,299
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