CSU Travel & Expense Best Practice Initiative

1. CSU Travel & Expense Best Practice Initiative

2. Agenda • Introduction and Meeting Kick Off • Recap Key Considerations • Best Practice Principles and System Functionality • System Demonstration • Back Office Processing • Travel Policy Update • Change / Communication / Training Strategy & Approach • Next Steps • FAQ’s

3. Agenda

4. Introduction & Meeting Kick-off

5. Original CMS Project Charter, endorsed by CMS Exec Committee in 1998 stated that: • Within 5-7 years after the beginning of the CMS Project, the CSU will: • Manage its affairs using a common set of administrative best practices, and • Support those administrative best practices with a single integrated suite of administrative software • CABO white paper, written in April 2005, documented the desire to establish a CSU best practices initiative • Sets of best practices would be developed; disciplined processes would be produced and implemented at each campus • Identified finance as area to start initiative, and ultimately, (working with a subcommittee of the FOA), the travel area was chosen • With objective of identifying common set of CSU administrative best practices, the challenge was ‘how’ do we identify the best practices to implement • Needed a proven methodology to move from concepts to outcomes • Needed to get expert assistance to move from ‘our practices’ to best/better practices • Brought in a consulting firm, The Hackett Group, with repository of best practices to help • Building best practices: testing our ability to identify systemwide best practices with the travel area, if successful, other operational areas will be chosen • This is a NEW approach, we typically have processes and policy in place and develop our system to support current practices • With this project we’re refining what we do today; identifying new/updated processes/policy based on best practices we’ve reviewed and considered (which is what we’ve been working on up to this point); • Once new/updates processes/policy are identified we’ll look to develop the Oracle Travel and Expensessystemto support those processes/policy Project Objectives/Background updated 7/22/08

6. Workshop Objectives • Confirm Considerations Made to Date • Review PeopleSoft Functionality • Validate Future State Design Direction • Review Change / Communication / Training Strategy and Approach for Go-Lives • Provide Information around Next Steps / Systems Configuration

7. Recap Key Considerations from Vision Validation & Fit Gap Sessions

8. Moving Forward with Best Practices

9. Pre-trip approval travel requests Pre-trip authorization for travel must be obtained from management within the employee’s campus. Authorization requests will be managed as they are today within each campus. Pre-trip authorization will not be utilized in the system. Key consideration in moving forward: Benefits: • Travelers will have minimal change impact and learning with ‘systematized’ pre-trip travel requests • Travelers will not have to complete a pre-trip approval request and also an expense report. This will alleviate multiple forms for the travelers to submit • Approvers will not have to administer pre-trip approval and expense approval in the system • Minimal support calls to Accounts Payable if ‘systematized’ pre-trip authorizations are submitted after the fact and an expense report needs to be paid out

10. University Charge Card Usage Encouraged University charge card issued to all travelers that qualify and proper use of the card is strongly encouraged by travel policy. BTA account is eliminated in some cases and/or minimized for expenses such as outside ‘interviewee’ expenses and campus colleagues that do not qualify for a card. Key consideration in moving forward: Benefits: • Reduced administration and reconciliation of BTA bookings for AP staff • Strong controls as entire expense amount is on one form of payment method and one report • Eliminates potential duplicate payment to BTA and employee • Gain holistic view of ‘all expenses’ via the expense report • Credit card data is sent to employee to pre-populate on their expense report which minimizes data entry • Payment to charge card provider directly for approved expenses on expense report • Higher rebates to State of California to enhance travel program • Does not impact CSU associates credit by applying for a card; only if card is not paid in a timely manner

11. DRAFT Disbursements Matrix

12. Automated expense system with online approvals Automated expense reporting system integrates the processes of expense report preparation, expense report approval, submission and auditing. The automated expense approval process will have predefined, allowable parameters in place. Key consideration in moving forward: Benefits: • Employee easily tracks status of expense report approval and payments • Electronic expense report creation allows for greater consistency and standardization • Electronic submission to approver replaces existing paper-based process • Pre-populated corporate card transactions expedite expense report creation and minimize data entry mistakes • Real time update of expense report status and tracking • Ability to attach imaged receipts to expense report in later phase • Built in audits and flags based on travel policy to educate and train traveler • Expense approval will allow for email notification, rerouting after designated number of days (3), and approver delegation • Standardization across the organization via common processes, technology, policies and procedures 

13. One level of approver with multiple notifications Expense reports will only require one level of approval. The employee’s approver will be stored in the system in the Organizational data of the Employee’s Profile in Expenses. Upon submittal the system will automatically route the expense report to the designated approver. Notifications will also be built to go out to others in the system requiring notification of the expense. In some cases the approver may wait to approve the transaction in the system until those notified approve either verbally or via email. After approval by the Manager the report will be routed to AP for Pre-Pay audit. Key consideration in moving forward: Benefits: • Employees will know the status of the expense report based on automated workflow • Minimal administration of approval hierarchy • Employees will submit their expense report online and approval will be sent to their approver • Notifications will be sent in parallel with the approval to the corresponding departments to ensure there is financial tracking and budget oversight of the expense (e.g. Finance, Dean, VP, President) • Expense approval will allow for email notification, rerouting after designated number of days (3), and approver delegation

14. Employee Master Data from HR Key Employee Data and Employee Organizational Data housed in HR will be brought over to Finance Expenses Employee Profile tables via the use of Integration Broker and Application Messaging tools. Applicable HR maintained fields include: Employee ID, Employee Name, Personnel Status (employee vs. non-employee – will not bring over non-employees), Home Address, Other mailing address (work address), Employee Status (active, terminated, etc.), Business Unit, Department, and Supervisor. Integration Broker can also accommodate bringing employee bank and corporate credit card information to Expenses where available. There will be an initial load of all applicable data and then subsequent updates made in HR will be brought over real time to Finance Expenses via the use of Application Messaging tools. Key consideration in moving forward: Benefits: • Employee Data and Organizational information maintained in one system and interfaced over so it doesn’t require dual entry/updates in both HR and Finance Systems • Interface of information instead of manual entry in Expenses will reduce input errors • Updates subsequently made in HR automatically interfaced over to Finance Expenses • One stop shop for employees to supply address and bank changes

15. Automated account coding & shared expenses Expense types within the expense report will automatically default to the proper general ledger account and the employee’ s profile information will default in their specific Organizational Chart field information. If there is a reason to charge multiple funds or departments, the system will allow for shared expenses. A shared expense refers to a cost that is shared among multiple funds / departments. Option 1: Shared expenses can be split at each expense line or at the header level via percentages. The percentage total must equal 100%. In the expense report, the employee will enter the transaction and the percentage or portion of the expense categories classified. The header level chart fields will default into the expense lines. Further updates can then be made at the expense line level. Option 2: If there is a need to charge multiple funds or departments, a journal entry will be performed within the general ledger to ensure proper account coding is charged. Key consideration in moving forward: Benefits: • Organizational Chart field information will default into expense report based on data stored in employee’s profile (Business Unit, Department, Fund, Program, Project, Class, etc.) No need for entry unless updates are required • Option 1: Employees have the flexibility to charge via line item expense category or allocate the Organizational Chart fields for entire report at the header level • Option 1: One expense report can be submitted for multiple charge codes • Option 2: Employees would reference the expense report and the account to charge so a journal entry is made by Campus Finance

16. Central payment of credit card University Charge Card will be paid centrally by Accounts Payable for approved expenses only. Approved expense reports that include University charge card transaction information will be extracted from PeopleSoft and paid to American Express with AP pay cycle process. Employees will be responsible to pay expense reports that are not submitted in a timely manner. Key consideration in moving forward: Benefits: • Employee convenience • Better negotiation with credit card company on issuing cards to individual employees • Payment managed centrally • Higher rebates to University based on payment history • In line with PeopleSoft future state design • Increased security against delinquent card payments • Increased savings through better negotiated rebates from the credit card issuer 

17. Central payment of credit card Reimbursement Process: Accounting Entries: • Campus Finance will centrally pay corporate card vendors for approved charges • Debit appropriate expense account and credit campus AP account • If amount “due employee” – check or EFT to employee issued • If amount “due AMEX” performed via EFT to AMEX

18. Best Practice Business Process Flows & System Functionality

19. High Level Travel & Expense Process Flow

20. Maintain Employee Profile

21. Pre-Trip Travel Arrangements

22. Processing Expense Reports

23. Receipt Submission Recording

24. Processing Reimbursement

25. Best Practice Expense Reporting Process Flow Expenses are paid to credit card vendor Credit card transactions imported in to T&E System Expense reports approved electronically Approved expense reports electronically transmitted to Campus Finance Employee creates and submits expense report in system Employee is reimbursed through Accounts Payable system for ‘out of pocket’ expenses Optional for Traveler Employee Employee faxes receipts to Campus Finance and attaches imaged receipts to expense report Employee prints receipt report and attaches original receipts and sends to AP Original receipts are filed at Campus Finance for storage Later Phase

26. Key Considerations & Impacts

27. Key Considerations and Impacts

28. Key Considerations and Impacts

29. System Functionality

30. Expense Report – Creating a Travel Advance Fill in Required information and click “Submit” upon completion.

31. Expense Report – Creating a Travel Advance After Submittal – submission is in Process. Waiting for approval.

32. Expense Report – Creating a New Report Select Quick Start Method of your choice and click “GO” or if choose to leave as blank then start entering information.

33. Expense Report – Entering Manual Expenses Enter Expense Type and other required information. Required fields are marked with an *. Then Click the Detail button to fill in more detailed information.

34. Expense Report – Expense Type Details Fill in additional details and click “Return to Expense Report” to add additional lines and complete expense report steps.

35. Expense Report – Applying Cash Advance Click “Apply Cash Advance” on Expense Report Entry Page.

36. Expense Report – Applying Cash Advance Click on Magnifying Glass to bring up a list of applicable cash advances.

37. Expense Report – Applying Cash Advance Click on Advance ID of Appropriate Cash Advance.

38. Expense Report – Applying Cash Advance Main Entry page Reflects application of cash advance.

39. Expense Report – Entering Credit Card Expenses If starting out a new Expense Report, Select Quick Start Method of “Entries from My Wallet” and click “GO”

40. Expense Report – Entering Credit Card Expenses If working on a previously Saved report or have already added manual entries select “Expenses From My Wallet” and click “Add”.

41. Expense Report – Entering Credit Card Expenses Check boxes next to items wish to add to expense report and then click “Done”.

42. Expense Report – Entering Credit Card Expenses Selected Items Populate on Expense Report as Due to Vendor Items Note that items with Payment Type Visa here, but American Express at CSU will be paid directly to American Express Vendor.

43. Expense Report – Assign Account Coding Header Level Click on “Accounting Defaults” Link.

44. Expense Report – Assign Account Coding Header Level Information defaults in from Employee Profile. Update Chartfields as necessary. Can add additional rows to allocate expense items via percentages. These values will default to the expense line items accounting detail.

45. Expense Report – Assign Account Coding Detail Expense Line Level Click on “Accounting Detail” Link.

46. Expense Report – Assign Account Coding Detail Expense Line Level Chartfield information defaults in from Header Level Accounting. Account Code defaults in based on Expense Type chosen. Update information as appropriate. Can add lines to split up amounts to different Chartfield combinations if necessary.

47. Expense Report – Route for Approval Upon submittal of expense report the system automatically routes to the appropriate approver based on configured approval rules.

48. Facilitating the Approval Process • Approver setup and Maintenance • Currently exploring options of using existing HR hierarchy and feeding Supervisor ID to Employee Profile in Expenses • Further updates can then be made if Direct Manager is housed in HR or • Enter and maintain Supervisor ID/Designated Approver in Expenses • Supervisor in HR may not necessarily be the Expense approver • Report to Approve Notification and Dunning Rerouting • Notified via email and will be in worklist • Expense reports that have not been approved after 3 days will be routed to another approver • Approver Delegation • If an approver is out-of-office they can assign a delegate to approve their expense reports • All expense reports submitted to the approver will then be routed to the delegate

49. Assigning a Delegate/Alternate User Proactively set ahead of time that you will be out of the office Enter Alternate User to Receive your routings and From/To Dates that will be out of the office. After the entered “To” Date reports for approval will go back to being routed to your worklist.

50. Rerouting Approvals In the event that you need a different approver or if approver is out unexpectedly; system admin needs to reroute Enter the user you wish to reassign your worklist items to, select which items to reassign to selected user, and click on “Reassign” button.