1. 1 Travel Report for 2009 Secretariat for Administration and Finance Office of Procurement Services

2. 2 Why OAS Travels? To achieve OAS objectives and to execute mandates. To bring people together, both at headquarters and throughout the region, to prevent conflict, strengthen cooperation and advance common values and interests. To facilitate attendance at summits, ministerials, high-level and regional networking meetings. To design and implement field-oriented development cooperation activities..To provide electoral observation and exploratory mission services, execution and oversight or projects, as well as peace keeping missions. - Travel is an integral part of doing business -

3. 33 PHASE I What have we done? PHASE II What are we doing? PHASE III What do we plan to do? Administrative and Financial Transparency Administrative and Financial Transparency Enhanced Efficiency and Accountability Enhanced Efficiency and Accountability 3 Three Phases of Reengineering: Travel

4. 4 In recent years, the GS/OAS has focused management attention on developing financial and administrative structures, systems and reports that are comprehensive, accurate and useful to all stakeholders. Member States and other contributors have welcomed this administrative and financial transparency. This report contributes to that effort. Additional efforts under way are aimed at enhanced efficiency and accountability. Member States need to be aware of GS/OAS travel activities. Not only in the context of budgetary accounting, but also to be informed on the activities of the GS/OAS in the hemisphere. SAF/OPS is committed to continue monitoring and reengineering the travel activities of the GS/OAS to control costs, while updating travel policies, reviewing existing regulations and providing more management-useful information. 4 Transparency and Accountability

5. 555 PHASE I What have we done?

6. 6 Phase I: What have we done? (Charts are provided for additional review at the end of the presentation). Only 15% of all travel expenses are funded by the Regular Fund. 85% is funded by Specific and Other Funds. Total travel cost increased by approximately $1.6 Million (from $14.8 to $16.4 Million). This reflects an increase of $2.0 Million in the use of Specific and Other Funds and a decrease of $0.4 Million in the use of Regular Funds for travel-related costs. The overall increase in travel represents more GS/OAS participation in projects and missions, and higher travel industry costs such as fuel and added fees. Out of the $1.6 Million increase, $1.1 Million spent in per diem and an additional $0.5 Millions in fares; both including Specific and Other Funds. 2009 Highlights

7. 7 Reporting on travel continued to improve because more tickets were purchased through our Travel Service Provider, Omega World Travel (OWT). Of the $7.7 Million total travel fares processed in 2009, over 63% was purchased through OWT. Comparably, 55% went through OWT in 2008. SAF/OPS was able to monitor activity, mitigate risks and secure lower fares, while at the same time increasing our benefits with airlines due to the corporate contracts, and by having more transactions processed through the preferred travel provider. Universal compliance with the rules and current policy that requires that all GS/OAS travel is purchased in economy class, except as authorized by the SG, was achieved. 2009 Highlights – Cont. Phase I: What have we done?

8. 8 2009 Travel Efficiencies Review of contractual covenants with Omega World Travel (OWT) to maximize benefits. Obtained additional discounts, savings, points and/or rebates. Additional controls in the Travel Section of OPS to monitor “unused” tickets purchased and the recovery of otherwise “lost” amounts. SAF/OPS continued to examine travel provider conditions for both Headquarters and for the operations away from Headquarters. (New Bid will be required in 2010). 99% of all fare-related requisitions were processed during the same day it was approved by the requesting area. No additional fund spent on “rebooking” of reservations. Reconciliation process between the OWT and the Credit Card Service Provider has improved significantly. Phase I: What have we done?

9. 9 2009 Travel Efficiencies – Cont. The number of Non-Economy travel was reduced significantly and universal compliance with the Permanent Council and General Assembly’s resolutions on travelling was achieved. Business ExtrAA points (American Airlines) continued to be used last year to cover home travel leave benefits for eligible staff members. By redeeming Points and by being able to recover unused tickets, it is estimated that a total of $88,000 in savings was realized for the Organization. Price Match Guaranteed clause continued to be enforced in order to get “Web” pricing through OWT. Over 60 video conferences were made to relieve travel cost. This represents an approximate savings of $50,000 in fares alone. SAF/OPS is very aware of the importance of greater integration of technology in travel operations. Phase I: What have we done?

10. 10 PHASE II What are we doing?

11. 11 Travel Agreements: Actual & Estimated Savings Signed Corporate Agreements and Discounts COPA – 12.5% savings = $56,000 (approx.) Corporate Agreements effective in 2010: TACA – 10-23% savings (Depending on what class we fly and where we fly). Expected savings: more than $30,000 Continental – Flat 2% savings (Anywhere and all class of service). Expected savings: $3,000 LAN – 5-35% savings (Depending on class of service and where we fly). Expected savings: Approximate $50,000 Avianca: 8 – 15% savings (Depending on class of service and where we fly). Expected savings: Approximate $20,000 Negotiated a “grandfathered” signing bonus with Omega to access $20,000 in “soft dollars” to use on Delta/KLM flights. Phase II: What are we doing?

12. 12 Travel: “Unused” Tickets Recovery Current lowest price policy frequently generates restrictions to re-use a cancelled fare (i.e., same traveler, same route, same airline, etc). Due to the nature GS/OAS business, some of these fares will remain unused past the expiration date (as specified by airline policy). For 2008, approximately 100 unused tickets were reported. They totaled $96,000. In 2009, there were also at least 100 unused tickets that totaled for $93,000. In 2009 SAF/OPS negotiated new terms with Airlines for unused fares and recovered: – A TACA Refund of $3,000 (as part of the corporate agreement signed with them) – A BARTER CARD with AA: Recovery of almost $35,000 that were used almost entirely to cover 2009 Home Leave. Phase II: What are we doing?

13. 13 The GS/OAS has a “Business ExtrAA Account” special point program with American Airlines. It awards the GS/OAS one point for every $10 spent on eligible tickets. 2007 Business ExtrAA Beginning Balance = 142,878 2008 Business ExtrAA Accumulated = 208,708 Redeemed = 194,000 (for 2008 Home Leave) 2008 Ending Balance = 157,586 (including points accumulated in 2007) 2009 Business ExtrAA Accumulated = 282,648 Redeemed = 367,400 (for 2009 Home Leave) 2009 Ending Balance = 72,834 ExtrAA Points Phase II: What are we doing?

14. 14 PHASE III What do we plan to do?

15. 15 As part of the SAF/OPS strategic work plan, establish a dedicated module regarding travel management that would integrate quarterly travel plans to the reengineering process. Continue to improve the travel policy to better enforce guidance on more effective use of scarce resources for Travel. Revise the Travel Policy which currently states the use of “most direct and economical route” to adopt the concept of “the lowest logical* fare available”. This redefinition should allow a more transparent travel policy to be enforced by the travel provider and SAF/OPS. A draft will be presented to CAAP. Implement the on-line booking tool and an expense reporting tool. Send periodical updates to the areas on best travel practices, enforcement of travel policies, areas marked for improvement, lost savings and similar items. * The presenter will offer a definition of lowest logical fare available. Looking forward: 2010 Phase III: What is our plan?

16. 16 Continue to work on corporate framework agreements to increase the current benefits to the GS/OAS. Improve control and reporting for travel away from Headquarters by establishing one or more preferred travel service providers (new Bid). Continue to work with SAF/DOITS, the Department of Conferences and Meetings and other areas in order to maximize use of state-of-the-art teleconferencing facilities at headquarters and reduce, where possible, travel and travel-related costs. Negotiate corporate rates for hotels at Headquarters; SAF/OPS will apply the information to incorporate this practice for all operations away from Headquarters, where feasible. SAF/OPS is currently analyzing the existing travel policy to determine if it continues to be consistent with the industry and if it really benefits the GS/OAS. Looking forward: 2010 – Cont. Phase III: What is our plan?

17. 17 Annexes and References Basic Travel Statistics: – Travel Data: Categories by Year – Airfare by Area – Airfare by Location – Travel Summary for Omega World Travel – Compliance with Policy – Economy Class Travel Administrative Memorandum No 79 Rev. 3 Other travel policy guidelines

18. 18 Amount in Millions Description 20082009 By Fund Total GS/OAS Budget Allocations*: $185.0 $168.0 Regular Fund 87.5 90.1Specific & Other Funds 2008200920082009 Airfare 7.2 7.6 1.21.06.06.7 Per Diem 5.3 6.4 0.90.84.45.5 Terminal Expenses 0.6 0.7 0.1 0.50.6 Fellowships Travel 0.7 0.6 0.50.1 Other Travel Expenses 1.0 1.1 0.2 0.80.9 Total Travel $14.8 $16.4 $3.0 $2.6 $11.8 $13.8 Travel % of Total Budget* 8.0%9.8%** 1.6% 6.4%8.2% Airfare % of Total Budget 3.8% 4.6% 0.6% 3.2%4.0% All Categories – By Year * The budget amounts include Regular, Specific, Voluntary, Trust and other Funds.

19. 19 ALL FUNDSTotal (In Millions) Chapter20082009 1Office of the Secretary General0.5 2Office of the Assistant Secretary General0.4 3Autonomous and/or Decentralized Entities0.30.7 4Secretariat for Legal Affairs0.10.2 5Secretariat for Multidimensional Security1.71.6 6Secretariat for Political Affairs1.71.9 7Exec. Secretariat for Integral Development2.21.9 8Secretariat for External Relations0.10.2 9&10Secretariat for Administration and Finance0.20.3 Total7.27.7 Airfare by Areas

20. 20 * * Travel Away from Headquarters includes all travel purchased by local travel agencies in the Member States that is currently not captured through a designated travel service provider. Description - Amount in US$20082009 Travel Recorded Through Omega World Travel4.0M4.9M Travel Recorded Through other travel agencies away from Headquarters*3.2M2.8M Total Fares7.2M7.7M Travel Data Airfare by Location

21. 21 TravelersTickets Amount Paid (Rounded) Average Per Ticket 20082,0704,613 $ 4.0 Millions $ 904 20093,1005,671 $ 4.9 Millions $ 857 Travel Summary Airfares Purchased at Headquarters Through Omega World Travel Why if the industry costs and the total spent on fares are rising the average per ticket is going down? By incurring in economies of scale and increasing the leverage of more fares handled through our TSP.

22. 22 Compliance with Policy - Economy Class Travel Only three fliers (about 1% of all non economy or less than 0.01% of all fares) were identified as traveling without authorization in other than in economy class. In all three cases, only one segment of the complete fare was in such class (non-economy) and it was as a result of unavailable space in coach.

23. 23 Administrative Memorandum No 79 Rev. 3 Official travel is travel undertaken on behalf of the GS/OAS and is managed by the corresponding dependency (i.e. Requesting Area). Secretaries and Executive Secretaries, Department and Office Directors, and Section Chiefs (supervisors) must ensure that adequate budget authorization is available to finance any and all types of official travel. All staff members who travel on official business (with the exception of the SG, ASG, Secretaries and Executive Secretaries) must submit a report to the supervisor who authorized the travel within 15 days of returning (TEC). OAS Travel Policy, revised March 3, 2006, provides the travel authority, administrative and financial procedures and reporting instructions for all OAS official travel:

24. 24 Other Travel Policy Guidelines All tickets paid for by any OAS fund 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.” Exceptions are granted to VIPs, including high officials and former presidents, serving as leaders of electoral and special missions. Often, these officials serve pro-bono, at considerable savings to the Organization. In many cases, the cost of business class is not significantly different from that of an economy fare.