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Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President Treasury Consulting Group

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Page 1: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

Presented to:Industry Best Practices for T&E Expense Management and Automation

April 23, 2013

Pittsburgh AFP

David Enick, CTPAssistant Vice PresidentTreasury Consulting Group

Page 2: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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This presentation was prepared for general information purposes only and is not intended as legal, tax or accounting advice or as a recommendation to engage in any specific transaction, including with respect to any securities of PNC, and does not purport to be comprehensive. Under no circumstances should any information contained in this presentation be used or considered as an offer or commitment, or a solicitation of an offer or commitment, to participate in any particular transaction or strategy. Any reliance upon the presentation is solely and exclusively at your own risk. Please consult your own counsel, accountant or other professional advisor regarding your specific situation. Any opinions expressed in this presentation are subject to change without notice.

Standard Disclosure

Page 3: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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I. T&E Expense Management Trends

II. T&E Expense Management Automation Trends

III. Bank Offered Expense Management Solutions

Agenda

Page 4: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

T&E Expense Management Trends Survey Demographics

Page 5: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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2012 Institute of Financial Operations Trends in Expense Management Survey Results

T&E Expense Management Trends2012 IOFO and Aberdeen Group Survey Demographics

11.6%0.8%2.5%

0.8%

8.3%

5.8%

28.1%

11.6%

5.0%

3.3%

1.7%7.4%

1.7%

3.3%5.0% 3.3%

Company IndustryBanking/Financial ServicesConstructionEducationFood and BeverageGovernmentInsuranceManufacturingMedical/Dental/HealthcareNot-for-ProfitPharmaceuticalsReal EstateRetailServiceSoftwareTelecomTransportationUtilities/Communication

12.3%

23.8%

8.5%13.1%

26.9%

6.2%

9.2%

Company Annual Revenue

Less than $50 million

$50 million to $250 million

$250 million to $500 million

$500 million to $1 billion

$1 billion to $5 billion

$5 billion to $10 billion

Greater than $10 billion

21.0%

11.0%

10.0%

8.0%5.0%5.0%

40.0%

Industry

Manufacturing Software

Financial Services Public Sector

Transportation/Logistics Retail

25 Other Industries

47.0%

27.0%

26.0%

Company Size

Annual revenue greater than $1 billion

Annual revenue $50 million to $1 billion

Annual revenue of $50 million or less

2012 Aberdeen Group T&E Expense Management Survey Results

Source: IOFO 2012 Trends in Expense Management

Source: Aberdeen Group 2012 T&E Expense Management

Page 6: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Please select your company’s total number of employees.

13.5%

26.2%

29.1%

19.9%

5.0%

2.1% 4.3%

Company's Total Number of Employees

Less than 250

251 to 1,000

1,001 to 5,000

5,001 to 25,000

25,001 to 50,000

50,001 to 100,000

More than 100,000

T&E Expense Management Trends 2012 IOFO Survey Demographics

Source: IOFO 2012 Trends in Expense Management

Page 7: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Select the number of employees who submit expense reports.

24.5%

33.6%

15.5%

12.7%

10.9%

2.7%

Employees who Submit Expense Reports

Under 100

101 to 500

501 to 1,000

1,001 to 2,500

2,501 to 10,000

More than 10,000

T&E Expense Management Trends 2012 IOFO Survey Demographics

Source: IOFO 2012 Trends in Expense Management

Page 8: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

T&E Expense Management Trends Organization

Page 9: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Which department has primary responsibility for expense management processing?

T&E Expense Management Trends Organization

93.9%

2.0%4.1%

Department

Accounts Payable

Human Resources

Purchasing/Travel Management

96% of survey respondents report anywhere between zero and four full-time equivalent employees (FTEs) who process expense reports on behalf of the organization

42% of respondents report only one FTE charged with expense reporting responsibilities

Nearly 10% - It appears to be a shared responsibility among various employees, including part-timers

Source: IOFO 2012 Trends in Expense Management

Page 10: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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What percent of total expense reports do you audit?

Nearly half (48.6%) of respondents report auditing between 76 – 100% of Expense Reports

T&E Expense Management Trends Organization

6.5%

20.6%

10.3%

9.3%

4.7%

14.0%

34.6%

Percent of Audited Expense Reports

0%

1% to 15%

16% to 25%

26% to 50%

51% to 75%

76% to 99%

100%

Source: IOFO 2012 Trends in Expense Management

Page 11: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Does your company provide cash advances for travel?

T&E Expense Management Trends Organization

46.3%

25.9%

6.5%

21.3%

Cash Advances

No

Yes, if requested

Yes, if employee does not have a corporate card

Yes, with management approval

Source: IOFO 2012 Trends in Expense Management

Page 12: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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How do you reimburse employees for out-of-pocket expenses?

T&E Expense Management Trends Organization

25.3%

39.4%

21.2%

14.1%

Reimbursement Method

AP Check

AP via ACH

Attach to payroll

Outside provider pays

Source: IOFO 2012 Trends in Expense Management

Page 13: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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20.8%

13.2%

38.7%

10.4%

4.7% 12.3%

Reimbursement Frequency

Daily

Twice a week

Weekly

Every two weeks

Semi-monthly

Monthly

What is the frequency of employee reimbursements?

T&E Expense Management Trends Organization

Source: IOFO 2012 Trends in Expense Management

Page 14: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

T&E Expense Management Trends Policies

Page 15: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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What is your company’s minimum threshold for receipt requirement?

The IRS requires receipts for all (non per diem) meals and lodging expenses with amounts over $75.

Down from 61% in 2010, 52.5% require receipts for all non per diem reimbursements

T&E Expense Management Trends Policies

11.1%

4.0%

32.3%

52.5%

Receipt Requirement

Greater than $75

Greater than $50 (but less than $75)

Greater than $25 (but less than $50)

Receipts are (generally) re-quired for all non per diem re-imbursements

Source: IOFO 2012 Trends in Expense Management

Page 16: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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41.2%

8.2%

19.6%

25.8%

5.2% Receipt Documentation

Paper

Fax/email

Scanned by users

Combination fax/email and scan by users

Submitted to central scanning facility

How are supporting receipts and related documentation submitted?

T&E Expense Management Trends Policies

Source: IOFO 2012 Trends in Expense Management

Page 17: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Are approvers expected to review receipts as part of the approval process?

T&E Expense Management Trends Policies

88.5%

11.5%

Receipt Reviewed

Yes No

Source: IOFO 2012 Trends in Expense Management

Page 18: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Is there a separate policy or exceptions to the standard policy for executives?

75.2% “they must follow the rules just like everyone else — without exception”

T&E Expense Management Trends Policies

75.2%

22.0%

2.8%Separate Policy or Exceptions for Executives

No

Yes - Exceptions

Yes - Separate policy

Source: IOFO 2012 Trends in Expense Management

Page 19: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Are there restrictions related to booking air travel?

Lowest price coach up from 51% in 2010

Business / First Class policy shifts

– Lowest price coach (domestic) / Business or first class (international) down from 15% from 2010

– Business or first class if travel time exceeds set number of hours up from 8% in 2010

T&E Expense Management Trends Policies

61.3%15.1%

5.7%

13.2%

4.7% Air Travel Restriction

Lowest price coach class on any airline

Lowest price coach class on preferred airline only

Lowest price coach (domestic)/business or first class (interna-tional)Business or first class if travel time exceeds set number of hours

No restrictions

Source: IOFO 2012 Trends in Expense Management

Page 20: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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At what rate does your company reimburse for use of personal car?

IRS allowable rate (2012 - 55.5 cents per mile)

Depending on personal tax situation, an individual may be able to deduct the difference from the company reimbursement and the IRS allowable rate as a business mileage expense

T&E Expense Management Trends Policies

75.0%

11.1%

8.3%

1.9%2.8%0.9%

Personal Car

Reimburse at IRS allowable rate (currently 55.5 cents per mile)

Reimburse at 45 -54.5 cents per mile

Reimburse at 35 - 44.5 cents per mile

Reimburse at less than 35 cents per mile

Rate varies for different groups of employees

Do not reimburse for use of personal car

Source: IOFO 2012 Trends in Expense Management

Page 21: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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What is the approved class of rental car for non-executive travelers?

What is the approved class of rental car for executive travelers?

T&E Expense Management Trends Policies

43.8%49.4%

3.4% 3.4%

Approved Class of Rental Car

Sub-compactCompactIntermediate/midsizeFull sizeLuxury

4.5%

27.3%

48.9%

15.9%3.4%

Approved Class of Rental Car

Sub-compactCompactIntermediate/midsizeFull sizeLuxury

Source: IOFO 2012 Trends in Expense Management

Page 22: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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What is your travel meal reimbursement policy?

Over 80% of companies pay for all meals while traveling, 29.5% with no limits “go ahead and eat”

T&E Expense Management Trends Policies

17.1%

29.5%

51.4%

1.9%

Travel Meal Reimbursement

Pay per diem

Pay actual (no limit) for all meals

Pay actual (with limit) for all meals

Pay actual for breakfast and dinner (exclude lunch) 0%

Pay actual (with limit) for break-fast and dinner

Do not reimburse for meals 0%

Source: IOFO 2012 Trends in Expense Management

Page 23: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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59.0%22.9%

18.1%

Lodging Reimbursement

Pay a per diem for lodging 0%

Pay actual (no daily limit)

Approved/preferred hotels only pay actual (with daily limit)

Approved/preferred hotels only (no daily limit)

What is your lodging reimbursement policy?

T&E Expense Management Trends Policies

Source: IOFO 2012 Trends in Expense Management

Page 24: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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91.6%

4.2% 4.2%

Frequent Traveler/Affinity Benefits

Employee may keep points/miles for personal useEmployee must assign points/miles to company

Employee must use points/miles for company travel

What is your policy on frequent traveler or affinity benefits?

T&E Expense Management Trends Policies

Source: IOFO 2012 Trends in Expense Management

Page 25: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

T&E Expense Management Trends Travel Management

Page 26: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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49.5%

13.7%

36.8%

Travel Management Organization

Corporate travel agency

In-house travel department

None - we allow employees to book any way they wish

What is the primary type of travel management organization you use?

T&E Expense Management Trends Travel Management

Does the company mandate use of the company’s travel management process to make travel reservations and purchase?

63.9%22.7%

13.4%

Mandate Company's Travel Management Process

Yes No Not applicable

Source: IOFO 2012 Trends in Expense Management

Page 27: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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51.5%35.1%

13.4%

Online Booking Tool

Yes No Not applicable

Does your process offer an online booking tool for employee use?

T&E Expense Management Trends Travel Management

If yes, which tool provider?

21.6%

51.4%

5.4%

8.1%

5.4%8.1%

Tool ProviderGet There

Cliqbook

Res-X

Reardon

NuTravel 0%

Egencia/Expedia

Orbitz for Business

Travelocity Business 0%

Source: IOFO 2012 Trends in Expense Management

Page 28: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Do you pre-populate data into the expense reporting system?

T&E Expense Management Trends Travel Management

Do you plan to increase integration between the travel management function and the expense management process in the future?

11.6%

88.4%

Pre-populate Data

Yes No

30.5%

69.5%

Plan to Increase Integration

Yes No

Source: IOFO 2012 Trends in Expense Management

Page 29: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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What role does the company travel manager play in expense reporting?

T&E Expense Management Trends Travel Management

10.9%

8.7%

6.5%

18.5%

55.4%

Role of Travel Manager In Expense Reporting

Manages the expensereporting process

Receives data fromthe expense reportingprocess

Audits expensereports

Has a limited role

Has no involvementwhatsoever

Source: IOFO 2012 Trends in Expense Management

Page 30: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

T&E Expense Management Automation Trends

Page 31: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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29.8%

18.1%17.0

%

9.6%

6.4%

4.3%

3.2%

3.2%

2.1%

2.1%2.1% 1.1% 1.1%

T&E Reporting System

Paper-based Concur

InterplX Oracle/PeopleSoft

In-house developed software sys-tem

Corporate card provider system

SAP Electronic spreadsheets

Infor/Lawson Ariba

IBM SumTotal

Databasics Reardon/Expensewire 0%

Expenseable 0% ExpenseWatch 0%

Certify 0%

Please select your primary T&E reporting system

T&E Expense Management Automation Trends What are companies doing today?

Source: IOFO 2012 Trends in Expense Management

Page 32: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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T&E Expense Management Automation Trends What does “Paper Based” look like?

Expense Management Process– 33% of companies use a paper or spreadsheet based expense reporting process

Receipt Management

– Submission 41% submit paper receipts

– Approvals 88.5% require approvers to review receipts

– Record Retention 64.3% store receipts for 7 years or more

Expense Report Audits–53% of companies audit 51% -100% of all expense reports

Source: IOFO 2012 Trends in Expense Management

Page 33: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Measured Performance

T&E Expense Management Automation Trends What Does “Paper Based” Cost to Process?

Best In Class

90% compliance to corporate policies concerning T&E 85% business travel spend under management* $7.91 cost to process a single expense report

Average 77% compliance to corporate policies concerning T&E 64% business travel spend under management * $ 17.87 cost to process a single expense report

Laggards 40% compliance to corporate policies concerning T&E 19% business travel spend under management* $25.72 cost to process a single expense report

Best in Class reflects top 20% of respondents, Average reflects middle 50% and laggards reflect bottom 30% of respondents

*Business travel spend under management is defined as the percentage of planned travel spend that is actively managed and accounted for in corporate budgeting / planning / forecasting

Source: Aberdeen Group, February 2012

Cost Savings Example

Based on 200 Expense Reports per month

Laggards (Paper Based)

– Cost per manual report $25.72– Annual Cost 200*12*$25.72=– $61,728 Annual Cost

Best in Class (Automated)

– Cost per automated report $7.91– Annual Cost 200*12*$7.91=– $18,984 Annual Cost

Estimated Annual Savings?

– Annual savings of $42,744– 69% Savings

Page 34: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Expense Management Priorities and Challenges / Pressures

Theme?– Reporting and visibility into expenditures

T&E Expense Management Automation Trends Selecting an Expense Management Solution

Source: Aberdeen Group, February 2012

Improve intelligence through analytics/reporting

Enhance visibility into overall travel/expense spending

Drive more value out of business travel

Improve expense management processes

42%

55%

57%

58%

Expense Management Priorities for 2012

n = 140

Inadequate global visibility into supplier base

Mandate to reduce expense-processing costs

Must enhance expense management analytics

Lack of compliance to travel/expense policies

25%

38%

47%

59%

Expense Management Challenges / Pressures

n = 140

Page 35: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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T&E Expense Management Automation Trends Selecting an Expense Management Solution

Source: IOFO 2012 Trends in Expense Management

What is the MOST important factor in choosing an expense management solution?

Ease

of u

se

ERP

inte

grat

ion

Lowes

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t

Corpo

rate

car

d inte

grat

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Robus

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set

Man

agem

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epor

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Online

book

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Mob

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0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%34.0%

18.1% 17.0% 17.0%

6.4% 6.4%

1.1% 0.0%

What is the MOST important factor in choosing an expense man-agement solution?

Page 36: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Which of the following do you utilize in your expense management system?

Ad-hoc management reporting is the most commonly utilized tool in an expense management system – who is using this functionality?

T&E Expense Management Automation Trends Selecting an Expense Management Solution

Automated integration with CRM/SFA system

OCR receipt reading/matching

Map integration for mileage calculation

Personal card charges pre-populated

Offline entry capability

Level-3 data for hotel folio, etc.

Automated integration with HR system

Flexible policy changes (limits, etc.)

Ad-hoc management reporting

0 10 20 30 40 50 60 70 80 90 100

Utilized Expense Management Features

YesNoNo, but I like itNot available

Source: IOFO 2012 Trends in Expense Management

Page 37: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Which areas use the management information reporting capabilities of your expense management system/process?

What can reporting tools be used for?

– Best-in-class organizations are 30% more likely to use analytics to identify ways to save money, such as through negotiated discounts with airlines, hotels, and other travel providers

Others

End-users/travelers

Approvers

Senior management

Travel management

Accounts payable

0 10 20 30 40 50 60 70 80 90

Reporting Users

Heavy usersMedium usersLight usersDon't use

T&E Expense Management Automation Trends Selecting an Expense Management Solution

Source: IOFO 2012 Trends in Expense Management

Page 38: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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2012 Aberdeen Survey

Expense Management Technology Roadmap

52% Cloud based SaaS(Software-as-a-Service)

24% Installed Software

21% Mix

T&E Expense Management Automation Trends So what are companies planning on doing?

2012 IOFO Survey

Planning on making changes to expense management program?

34.4% - Yes

Manual and paper-based

Mix of cloud and on-premise

On-premise/installed

Cloud-based/Software-as-a-Service

27%

12%

31%

29%

4%

21%

24%

52%

Expense Management Technology Roadmap

Expected Fu-ture De-ployment

Current Deploy-ment

8.3%

10.4%

10.4%

5.2%

65.6%

Planning on making changes?

Yes

In the next 6 months

Yes in the next 18 months

Yes after the next 18 months

No changes planned

Source: IOFO 2012 Trends in Expense Management

Source: Aberdeen Group 2012 T&E Expense Management

Page 39: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

Bank Offered Expense Management Solutions

Page 40: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Bank Offered Solutions*

Ease of Use ERP Integration Lowest Cost Corporate Card Integration Robust Feature Set Management Reporting Online Booking Integration Mobile Device Capabilities

All of top factors supported

Bank Offered Expense Management SolutionsSelecting an Expense Management Solution

Source: IOFO 2012 Trends in Expense Management

*Not all Bank offered solutions may address each factor

Industry needs vs. bank offered capabilities

Ease

of u

se

ERP

inte

grat

ion

Lowes

t cos

t

Corpo

rate

car

d inte

grat

ion

Robus

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set

Man

agem

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ting

Online

book

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inte

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0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

34.0%

18.1%17.0% 17.0%

6.4% 6.4%

1.1%0.0%

What is the MOST important factor in choos-ing an expense management solution?

Page 41: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Industry needs vs. bank offered capabilities

Bank Offered Expense Management Solutions Selecting an Expense Management Solution

Automated integration with CRM/SFA system

OCR receipt reading/matching

Map integration for mileage calculation

Personal card charges pre-populated

Offline entry capability

Level-3 data for hotel folio, etc.

Automated integration with HR system

Flexible policy changes (limits, etc.)

Ad-hoc management reporting

0 10 20 30 40 50 60 70 80 90100

Utilized Expense Management Features

Yes

No

No, but I like it

Not available

Source: IOFO 2012 Trends in Expense Management

*Not all Bank offered solutions may address each factor

Bank Offered Solutions*

Ad-hoc management reporting Flexible policy changes Automated integration with HR

system Level-3 data for hotel folio, etc.

Offline entry capability

Personal card charges pre-populated

5 of top 6 features supported

Page 42: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Industry needs vs. bank offered capabilities Ease of Use

– Solutions are generally designed to be user friendly with one click access to features and easy to use but could vary from provider to provider

ERP Integration – Most banks providers have experience in interfacing with major ERP systems such as SAP, Oracle,

Lawson, PeopleSoft and JD Edwards Lowest Cost

– Fees may be nominal or no cost compared with other solutions Corporate Card Integration

– Card transactions automatically loaded into most bank card platforms every day Management Reporting

– Robust reporting with access to all card and system data elements commonly supported Robust Feature Set

– Default Charge Code Mapping– Custom Approval Flows– Out of Pocket Transactions– Spend Wizards– Delinquency Management– Complex Tax Estimation– Receipt Management– Complex Policy Integration– Automated Integration with HR System and Chart of Accounts– Level 3 data for hotel folio, etc

Bank Offered Expense Management Solutions

Page 43: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Complex Policy Rule Integration for Card and Cash Expenses Multiple Policy Triggers can be applied simultaneously to create unique Policy Rules

Bank Offered Expense Management Solutions Policy Integration – Policy Rules

Transaction Types

Card Transactions

Cash Expenses

Violation Level

Policy Levels 1 - 4

Amount Triggers

Less Than

Subject Triggers

Supplier

Currency

Charge Code Segment

Charge Code

Source Country

Home Country

Merchant Category

Merchant Group

Transaction Type

Day of Week

Policy Example:

– Card Transactions greater than $100 at Office Depot on a Saturday and Coded to Project 2 is a Policy level 1 Violation

Card Transactions Greater Than $100

Supplier - Office Depot

Day of Week - Saturday

Policy Level 1Charge Code – Project 2

Greater Than

Between

Page 44: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Policy flags highlight suspected policy violations Cardholders can enter comments to justify policy violations Managers will have visibility into policy violations and cardholder comments

Bank Offered Expense Management Solutions Policy Integration – Violation Monitoring

Page 45: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Basic or Complex Approval Routing

Bank Offered Expense Management Solutions Approval Routing Rules

Transaction Types

Card Transactions

Cash Expenses

Subject Triggers

Rule Behavior

Amount Triggers Rule Drivers

Supplier

Currency

Charge Code Segment

Charge Code

Source Country

Home Country

Merchant Category

Merchant Group

Transaction Type

Day of Week

Approval Rule Example:

– Card Transactions greater than $100 and Coded to Project 2 requires an additional approval

Card Transactions Greater Than $100 Charge Code – Project 2Transaction Status –

Strictly Coded

Basic Approval Routing– Approval can be simply based in hierarchy

Complex Approval Routing– Multiple levels of approval based on certain

criteria and can route to other departments or project managers when their budgets are cross-charged by the cardholder

Process Order

Dependency Order

Approver Grouping

Transaction Status

Less Than

Greater Than

Between

Rule Grouping

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To ensure adherence to your company’s travel and entertainment (T&E) policy, it’s crucial to conduct audits on a regular basis

Robust reporting options can simplify policy and approval rule audits by focusing on exceptions

Bank Offered Expense Management Solutions Policy and Approval Rules – Compliance Audits

Perform company wide searches based on custom approval and policy rules

Click on violations to drill into details

Page 47: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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4.) Coding automatically

assigned /locked

Customizable Spend Wizards can simplify and automate assignment of charge codes by focusing on question based expense report allocation

Bank Offered Expense Management Solutions Spend Wizards – Simplified Charge Code Allocation

3.)Enter Information

2.) Allocate Amounts

1.) Select Spend Wizard

5.) Receipt Images can be attached to transaction

Page 48: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Streamline month end reconciliation management with automated email reminder alerts and the ability send communications directly to certain groups of users

Bank Offered Expense Management Solutions Program Management - Email Communications

Multiple email alerts can be set for distribution with multiple trigger and distribution frequency

options

Emails can be generated to predefined groups of employees i.e. “Employees with items not

submitted”, etc

Page 49: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Customizable report parameters – user defined filters and output formats Robust Reporting enables Strong Program Management

– Expenditure Analysis Know what, where, and how your cardholders are spending

– Company Administration Stay on top of month-end reconciliation and approvals

– Usage and Monitoring Identify and correct out-of-compliance spending

Bank Offered Expense Management Solutions Interactive Program Reporting

Page 50: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

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Bank Offered Expense Management Solutions So what can’t they support?

Key potential gaps in functionality supported through bank offered expense management card platforms vs. solutions such as Concur or InterplX

Offering of a travel booking system

Robust Mobile Apps

– Some bank platforms can offer mobile apps while others may still be in development

– However, companies do not consider mobile a decision factor at this point Automated Out of Pocket Reimbursements to Employees

– Bank platforms to not typically support storage of employee bank account information, however, they typically can provide data extracts to clearly identify approved cash out of pocket expenditures by employee

Automated payments to card issuers for Individual Bill/Corporate paid programs

– Not applicable for Individual Bill/Pay and Corporate Bill/Pay programs May support more options for receipt submission (smartphone, fax, scan/upload,

email, or US Mail)

– Bank platforms can typically support fax, scan/upload, and some support smartphone submission

Ease of use

– Bank platforms are typically designed to support p-card and T&E cards and features could be weighted more heavily towards p-card vs. T&E card management

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Increased focus on audit and compliance

Fairly tight controls on Airline Booking

Meal reimbursements are fairly less restrictive compared to other expense categories

DO NOT RENT LAMBORGHINI’S - Chances are they will not be approved

Booking integration is not a top priority

A number of companies are still manual and paper based

Companies are planning on migrating to automated solutions

Ease of Use is important! Employee engagement is likely to be much higher if it is easy to use the system

A large amount of paper can be eliminated with receipt imaging

Audit a percentage – focus on the high risks

Leverage your access to reporting to negotiate discounts

Summary - Observations

Page 52: Presented to: Industry Best Practices for T&E Expense Management and Automation April 23, 2013 Pittsburgh AFP David Enick, CTP Assistant Vice President

Questions?