1. 1 Secretariat for Administration and Finance Office of Procurement Services General Secretariat Travel Report 2007

2. 2 Table 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 in 2007Transformation of Travel Services and Achievements in 2007 Travel DataTravel Data Compliance with Travel Policy MandateCompliance with Travel Policy Mandate

3. 3 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 together, both at headquarters and throughout the region, to strengthen cooperation and advance common interests. 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. Hence, travel facilitates attendance at Summits, Ministerials, high level meetings and regional networking fora. 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. Hence, travel facilitates attendance at Summits, Ministerials, high level meetings and regional networking fora.

4. 4 Why do We travel? An integral part of our business 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 2007 alone there were 6 electoral observation and exploratory missions, as well as several peace missions undertaken at the highest levels. 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 2007 alone there were 6 electoral observation and 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. Design and implementation of development cooperation activities are field oriented, necessitating extensive travel.

5. 5 Our Mandate 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 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 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 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*.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 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 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 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*. Instruct the General Secretariat to implement more effective enforcement mechanisms 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 Inter- American Council for Integral Development (FEMCIDI), specific funds, and trust 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 Permanent Council, and to report to the Permanent Council on a quarterly basis on any instances of noncompliance with those rules.Instruct the General Secretariat to implement more effective enforcement mechanisms 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 Inter- American Council for Integral Development (FEMCIDI), specific funds, and trust 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 Permanent Council, and to report to the Permanent Council on a quarterly basis on any instances of noncompliance with those rules. * External Auditors recommended more stringent oversight of travel advances. Resolution AG/RES. 2353 (XXXVII-O/07),Section III General Provisions, paragraph A.11, calls upon the General Secretariat to: Resolution AG/RES. 2353 (XXXVII-O/07), Section III General Provisions, paragraph A.11, calls upon the General Secretariat to:

6. 6 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 reservations.Provides the administrative and financial procedures for all airfares and travel reservations. Determines the procedures for travel advances for per diem and terminal expenses, and the recording of the corresponding obligation in the financial system.Determines the procedures for travel advances for per diem and terminal expenses, and the recording of the corresponding obligation in the financial system. Guides travelers traveling with the OAS official travel document on the procedures to request and return the official travel document.Guides travelers traveling with the OAS official travel document on the procedures to request and return the official travel document. Outlines the instructions for timely reporting of travel results and for the presentation of the Travel Expense Claim (TEC).Outlines the instructions for timely reporting of travel results and for the presentation of the Travel Expense Claim (TEC). 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 external auditors monitor the adherence and compliance to these rules.

7. 7 Transformation of Travel Services and Achievements in 2007 - Executing the Mandate -

8. 8 Transformation of Travel Services and Achievements in 2007 Dec. 06 Jan. 07 Feb. 07 Nov. 07 Jan. 08 The Contracts Award Committee recommended the selection of Omega World Travel to provide off-site travel services for the GS/OAS. Contract signed with Omega. Implementation of full off-site services began. Agreement signed with American Express for the central billing of all travel-related services. American Express services initiated.

9. 9 Improvements Achieved in 2007 Cost Effective Management On-Site: Approx. yearly cost (2006) Two G6 positions @ approx. $55,000 / year $ 110,000 Opportunity cost of office space currently rented $ 55,200 Charge per ticket: $25 x 3,525 tickets $ 88,125 Total Yearly Cost of keeping On-Site office $ 253,325 Off-Site: Approx. yearly cost 2007 One part-time G6 @ approx. $55,000 / year $ 27,500 $ 27,500 Charge per ticket: $37 x 3,525 tickets $ 130,425 Total Yearly Cost of keeping Off-Site office $ 157,925 Total Yearly Savings from Off-Site office $ 95,400* * Savings represent the difference between On-site and Off-Site yearly costs.

10. 10 Improvements Achieved in 2007 As part of the Transformation Other Areas of Improvements: Centralized travel services for improved accountability, oversight and reporting.Centralized travel services for improved accountability, oversight and reporting. More accurate statistics to identify and measure travel costs, as well as validate adherence to policies.More accurate statistics to identify and measure travel costs, as well as validate adherence to policies. GS/OAS negotiated fares and rates with airlines (e.g. COPA Airlines).GS/OAS negotiated fares and rates with airlines (e.g. COPA 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.

11. 11 TRAVEL DATA January – December 2007 Pre-Audited Figures

12. 12 TRAVEL DATA - by Year 1 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 corresponding accounts, such as airfare, per diem and terminal expenses. Amount in Millions Description20062007 2007 By Fund Total Budget Expenses Execution 136.7167.9 Regular Fund Specific & Voluntary Funds Airfare 4.96.01.05.0 Per Diem 3.84.70.74.0 Terminal Expenses 0.50.60.10.5 Fellowships Travel 0.6 0.50.1 Other Travel Expenses 1 3.30.80.10.7 Total Travel 2007 13.112.72.410.3 Travel % of Total Budget 9.6%7.6%1.4%6.2% Airfare % of Total Budget 3.6%3.6%0.6%3.0%

13. 13 TRAVEL DATA Airfare by Chapters Total Chapter(In Millions) Office of the Secretary General0.4 Office of the Assistant Secretary General0.5 Autonomous and/or Decentralized Entities0.3 International Legal Affairs0.1 Secretariat for Multidimensional Security1.2 Secretariat for Political Affairs1.5 Exec. Secretariat for Integral Development1.8 Secretariat for Administration and Finance0.2 Grand Total6.0

14. 14 TRAVEL DATA Fare Breakdown by Supplier DescriptionAmount Omega World Travel3.0 Other Travel from HQ0.3 Travel Away from HQ*2.7 Total Fares 20076.0 * 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 purchase through the Omega Radius partners.

15. 15 TRAVEL DATA from OMEGA

16. 16 OMEGA Travel Summary 2007 TravelersTickets Amount Paid (Round Up) Amount Paid (Round Up) Average Per Ticket Average Per Ticket Total 2007 1,6763,525 $ 3.0 Millions $ 3.0 Millions $ 820 $ 820

17. 17 Exceptions to use of Lowest Fare Based on Tickets Issued

18. 18 Days in Advance Purchases ADV PURCH GROUP TICKETED FARE# TICKETS% TOTAL ($) % TOTAL (TICKETS) 00 TO 02$385,35733812.9%10.6% 03 TO 06$726,24072524.3%22.7% 07 TO 13$678,96276922.7%24.0% 14 TO 20$429,76349014.4%15.3% 21+$768,28387725.7%27.4% Totals:$2,988,6053199*100.0% The actual total of tickets is 3,525. However, this number does not include exchanges or refunds.The actual total of tickets is 3,525. However, this number does not include exchanges or refunds.

19. 19 Travel Policy Mandate 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, 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, the Assistant Secretary General, and the Chair of the Permanent Council”… “unless specific exception is made at the direction of the Secretary General.”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, 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, the Assistant Secretary General, and the Chair of the Permanent Council”… “unless specific exception is made at the direction of the Secretary General.” From time to time, the Secretary General grants exceptions to VIPs, including high officials and former foreign ministers serving as leaders of electoral and special missions. They may have served pro-bono, at considerable savings to the Organization. In many cases, cost of full economy fare was not significantly different from business class.From time to time, the Secretary General grants exceptions to VIPs, including high officials and former foreign ministers serving as leaders of electoral and special missions. They may have served pro-bono, at considerable savings to the Organization. In many cases, cost of full economy fare was not significantly different from business class.

20. 20 Compliance With Travel Policy Mandate

21. 21 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 reporting to monitor and optimize travel expenditures away from headquarters.Added travel statistics from OAS country Office in Omega’s reporting to monitor and optimize travel expenditures away from headquarters. Enhanced reporting capabilities to better analyze OAS travel expenditures.Enhanced reporting capabilities to better analyze OAS travel expenditures. Increase staff awareness of the importance and impact of savings derived from advance travel planning.Increase staff awareness of the importance and impact of savings derived from advance travel planning.

22. 22 Miles and Points Miles: By airline policy, all miles are awarded to the travelers. Points: The GS/OAS has negotiated with American Airlines a special point program called “Business ExtrAA Account” that awards the OAS with one point for every $10 spent on eligible tickets. These points are accumulating and are managed by the travel desk for official use only. The OAS is in the process of negotiating these point programs with other airlines throughout 2008.

23. 23 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, the entire travel expense claim process is under review.As part of the overall SAF Transformation and Modernization Project, the entire travel expense claim process is under review. SAF is currently evaluating the feasibility of using third-party on-line travel expense reporting tools.SAF is currently evaluating the feasibility of using third-party on-line travel expense reporting tools. The upgraded version of Oracle’s account payable module (currently being tested) will allow travel and other advances (called “pre- payments”) to be tracked by supplier at the project level.The upgraded version of Oracle’s account payable module (currently being tested) will allow travel and other advances (called “pre- payments”) to be tracked by supplier at the project level.

24. 24 In Conclusion… Travel will continue to be a central activity of the GS/OAS as it strives to implement the mandates of its Member States. While costs will continue to be impacted by inflationary pressures, we anticipate that improvements implemented or anticipated will keep travel costs under control.