Travel Management Center (TMC) or Commercial Travel Office (CTO) are the names the General Services Administration (GSA) designated for accredited travel agencies under contract with the federal government to sell airline tickets and other travel services.

Travel begins with a travel order – the traveler must create a travel authorization using the E-Gov travel system.  When creating the authorization using ETS, the traveler will be prompted to make reservations for air, hotel, car rental and other transportation using different screens to complete the information.  If the traveler forgets to include something or if the request does not comply with agency policy, the system will send an error message with guidance for correcting the error.  Per Diem entitlements are automatically populated using the travel dates, and location.  The traveler can indicate if the lodging is for a conference, if any meals are being provided, if leave is being used, or if actual expenses are being claimed.

A pre-audit is completed by the system.  If no errors are found, the traveler will electronically sign the authorization.  The authorization is then approved by the traveler’s approving official.  It is then transmitted in an electronic file called a queue to the TMC/CTO.  If there are no changes made to the authorization, the electronic airline ticket will be issued by the TMC/CTO 2 to 3 business days prior to travel.  The traveler receives electronic correspondence from the TMC/CTO regarding the trip.

After the ticket is issued, Captain Kirk will be able to board the USS Enterprise for his trip to “Space, The Final Frontier”.

By: Sue Burton

The contents of this message are mine personally and do not reflect any position of the Government or my agency.

Once the Finance Office received the documents, a technician verified the per diem rates and quarter day calculations for first and last day as well as other expenses.  Voucher receipts were verified and any voucher with a discrepancy was sent back to the traveler for correction.   Once the voucher was deemed correct, the finance technician would classify expenses into Budget Object Codes (BOC) and information such as the employee’s name, SSN and Accounting were written on to a coding sheet.  The coding sheet was sent to a Data Transcriber to enter into the financial system.   This process was labor intensive, prone to error and in many cases reimbursement of a travel voucher could take several weeks.

In the mid 1990′s my agency implemented Travel Manager, an electronic COTS travel system that was hosted in-house.  With the implementation of this system we went from a paper based travel process to a fully automated one.  Travel Manager contained locations with applicable per diem and performed calculations.  The electronic routing allowed documents to be reviewed and approved electronically.  Once a document was approved it was interfaced to the financial system daily and travelers were reimbursed for expenses within a few days of submitting a voucher.  Although a Travel Management Center (TMC) was available, many travelers continued to call the airline and hotels directly to make reservations and recorded the cost in Travel Manager.

In 1998 the Smartpay program was introduced that made credit cards available to frequent travelers and by 2001 the Federal Travel Regulations (FTR) required travelers to use a TMC to book official travel.  The FTR also requires travelers to use the City Pair Program except in limited situations.  The fairs offered by the airlines are one way which allows for complex multiple destination trips. The City Pair program offers very competitive airfare that can be discounted up to 70% off of unrestricted coach fare and offers benefits such as no advance purchase, no minimum or maximum length stay, last seat availability, no blackout dates, no penalties/fees for rebooking and tickets are fully refundable.

In 2003, GSA awarded contracts for E-Gov Travel Services (ETS) to three vendors and amended the Federal Travel Regulations to require agencies to implement one of the systems by September 30, 2006.  My agency awarded a contract and began implementing ETS in the summer of 2004.  The ETS had many of the same features that the Travel Manager system had with the addition of integration with the TMC.  By using the ETS, travelers have a one-stop-shopping for travel where the process of creating the authorization also includes making on-line reservations for common carriers, hotels and rental cars.  Vouchers are easy to complete as all the traveler needs to do is to update the estimated expenses from the authorization, electronically attach receipts (which are used for post payment audits) and electronically sign to route for approval.

In 2005 Government agencies were required to implement split disbursement.  Split disbursement provides a high level of convenience to the traveler to designate charges they made to their government credit card be paid directly to the bank through the vouchering process.    Another program that began about the same time is Fedrooms.  This program initiated by GSA is managed by Carlson Wagonlit who negotiates rates and terms with hotels in cities that have a large number of visits from Federal travelers.  Hotels that participate are FEMA and ADA compliant, have a least a two star rating from Mobil Travel Guide or AAA rating, they must accept government travel cards and other forms of payment, the rate must be at or below the government per diem rate, have a 4:00pm or later cancelation policy on the day of arrival, last room availability and other amenities. Federal Travelers are to give Fedroom Properties first consideration when booking a room.

The evolution of Federal Travel has been significant over the last 20 years.  20 years ago electronic travel and on-line booking was an idea reserved for Buck Rogers and the Jetsons.  In addition to automation, the government has moved towards consolidation and elimination of stove-pipe systems.   In the future I see agencies continuing to consolidate and automate travel processing as well as to outsource travel services to a Shared Service Provider.  Federal travel may decrease with the popularity of video conferencing and on-line training but federal travelers will still need to be on-site for a variety of mission essential trips that can relate to anything from the economy, civil rights and defense to disabilities, education, and Veterans Affairs.   Travel is an important part of many agencies mission and in servicing the public.  Needless to say, I’m looking forward to being involved in the next twenty years of Government Travel evolution.

by Diana Bonnell

Disclaimer: The contents of this message are mine personally and do not reflect any position of the Government or my agency.  Use of this equipment is consistent with the agency’s policy governing limited personal use.

The first step of the travel process is being asked to perform travel. Whatever the need is for the travel, the authorization to travel must be approved by management. Once management has approved the need for travel, they may give specific limitations, exceptions, approvals that pertain to the travel at hand. This information will need to be input in the authorization.

The second step of the travel process is entering the authorization into the e-travel system used by the agency. The authorization can either be entered by the traveler or an assigned document preparer for the office. The authorization should be entered into the system before the individual departs for the travel. Of course, there can be exceptions to this rule as long as a verbal authorization has been given. At the time the authorization is being entered, reservations can be made online for hotel, airline, and rental car. An estimate of these expenses will be loaded into the e-travel system as well as any TMC fees that will be incurred. After the reservations have been selected, the individual will continue estimating any other travel expense they feel may occur during the trip. After all expenses have been entered into the authorization, an accounting code must be selected to show how the travel will be paid. Once all comments, expenses, and accounting has been added, the individual will need to electronically sign the authorization. This will start the routing process of the authorization and the reservations will be reserved. The authorization may route electronically through several individuals before it is approved by management within the e-travel system. Once approved, the authorization will load into the accounting system and the money will be assigned and obligated for this travel.

The third step of the travel process is vouchering for actual expenses. Once the travel is completed, the individual is to complete the voucher within five days if possible. All information entered on the authorization is copied directly into the voucher. The traveler will now update all estimated expenses from the authorization and input actual expenses incurred while on travel. If a certain expense is not needed, it is simply removed and any item not previously on the authorization can be added. It is recommended that the traveler look at the charge card statement online to see all charges placed on the charge card. That way, when the voucher is completed, the traveler can split disburse those expenses directly to the charge card provider and no check will need to be sent. It is imperative that the traveler review the voucher thoroughly to make sure that the expenses and the amounts claimed are truly what were incurred during the travel. Once all expenses have been claimed, the traveler will need to electronically sign the voucher.  This will start the routing process for the voucher. It may also go through many individuals before it is approved by management.  Once approved, the voucher will now be sent to the accounting group for processing into the accounting system.  Local vouchers can be entered into the e-travel system the same way a voucher can. Local vouchers do not require an authorization to be created first.

The final step of the travel process is processing the voucher into the accounting system. Once the accounting technicians receive the file from the e-travel vendor, they perform a data link which loads the information into the accounting system. Once in the accounting system, the technician must perform a validation process that ensures all information loaded correctly. Once the process has been completed, the voucher will be sent to a payment batch where the accountant will process and make the payment allocations. The accountant will send a portion of the payment directly to the charge card vendor via split disbursement and a portion directly to the traveler via direct deposit. This is allocated to how the payment was vouchered for in the e-travel system. Once the payment batch is processed, the payment should be received within 3-5 business days.

This completes the process. The process is not a difficult process if the proper training has been given before the travel begins. The main requirements are to know how to use the e-travel system to input the authorization and voucher and the Federal Travel Regulations to know what expenses can or cannot be claimed. Any questions on the process can be directed to the Travel Customer Service Helpdesk.

By: Linda Ruppel

In the accounting world, a travel authorization becomes an accounting document called an obligation and has the same accounting impact as a purchase order for goods or services.  The obligation reserves the estimated amount to ensure funds are available when the traveler submits a voucher for payment.  When the voucher is recorded in the financial system, the obligation is reversed and a payment is made.

To determine what “pot of money” the traveler is using, the travel documents must contain an appropriation or fund code and cost center.  For even more detail, some agencies may use project codes and reporting categories.

For the Government to define and track the type of travel expense incurred, expenditures are recorded using budget object codes (BOC).  Travel expenses are usually classified as major object class 2100, which is further broken down into sub object classes where the last two digits of the BOC define the type of expense selected such as Lodging, Common Carrier or POV.    In an eTS the BOC is automatically assigned as the document preparer selects each type of expense.

When using an eTS the accounting string (usually a combination of the fund, cost center and project code/reporting category) selected on the authorization will automatically pull forward to any amendments or vouchers for the trip.  Some agencies require that an authorization route to a budget reviewer who may review or assign the accounting as well as verify the availability of funds.  Some agencies have a fund check built into the authorization that will verify funds and accounting once the document preparer or traveler has entered it.   Once a travel document is approved in the eTS it interfaces to the financial system where all the accounting data is recorded and used for financial and other reporting.

Agencies use the travel accounting information to better manage their travel program.  For example agencies can use travel reports from the financial system to determine if fleet cars are cost effective by analyzing costs to travel by POV and rental car. Reports are also used to help develop travel budgets and create policy.

Disclaimer: The contents of this message are mine personally and do not reflect any position of the Government or my agency.  Use of this equipment is consistent with the agency’s policy governing limited personal use.

By Diana Bonnell

Travel authorizations are manually entered by the traveler or a document preparer in the eTravel system prior to taking a trip for the agency.  During the creation of the authorization the reservations are made for air, hotel and rental car.  Any estimated miscellaneous expenses such as parking, taxi or hotel taxes are input so that funds can be reserved in the accounting system.  The appropriate accounting is selected for the trip.  Once the document is completed it is digitally signed by the traveler or document preparer to start the electronic routing.  The document is routed through pre-established routing lists setup by the agency.  Each individual in the routing is notified by email when the document is ready for them to review.  Once the document has been approved, it is held to be sent for processing in the accounting system.

When the traveler returns from the trip, they complete the travel voucher in the eTravel system.  All information from the authorization is pre-populated in the voucher.  All amounts and expenses are reviewed to ensure they were incurred and claimed correctly.  Once all valid expenses are entered, the traveler must be the one to digitally sign the voucher to start the routing.  It is routed through the pre-established routing list for approval.  Once the voucher has been approved, it is held to be sent for processing in the accounting system.

Local vouchers are also completed in the eTravel system and follow the same process as the travel voucher.  They can be created at anytime in accordance with the agency policy.

Approved documents in the eTravel system are securely transmitted to the processing office each night in a batch file.  The processing office transfers those files the next morning and placed in the “drop zone” to be interfaced to the accounting system.  There is a custom travel interface that is run each business day by our accounting technicians for each customer we service.  There is a separate interface for authorizations and vouchers/local vouchers.  We also receive a report that provides details about the documents in each file for reconciliation purposes.

Authorizations are usually run first and consist of a GT Start Order API that reads the information from the interface file and performs data checks to ensure that the required fields are included and valid for each document.  The Purchasing Documents Open Interface loads the data into the purchasing module and approves them.   Travel authorizations could create 2 obligations in the accounting system.  An obligation is created for the portion of the document that is reimbursable to the traveler.  A second obligation could be created if there were any non-reimbursable expenses included on the authorization that would be charged and paid on a centrally billed travel card.  Reports are run from the accounting system and compared to the report received from the vendor to verify that all authorizations included in the day’s file were interfaced and approved.

Vouchers and local vouchers begin with the GT Start Voucher process that reads the information from the interface file and performs data checks to ensure that the required fields are included and valid for each document.  The Payables Open Interface loads the data into the invoice module.  Reports are run from the accounting system to ensure that everything interfaces correctly.  The Invoice Validation process approves all invoices that the technician has access to approve.  Any invoice over $2500 requires a secondary approval by an analyst or accountant.  Travel vouchers could create as many as 3 invoices in the accounting system.  The invoice created for the traveler is for the portion of the payment that is to be paid directly to the traveler’s bank account.  If the traveler has a credit card, an invoice could be created to pay a portion of the payment directly to the credit card vendor on the traveler’s behalf (split disbursement).  Each voucher processed has a Travel Authorization Voucher (TAV) fee that is charged by the software vendor for using the software and an invoice is created to pay that fee directly to the vendor.  Reports are run from the accounting system and compared to the report received from the vendor to ensure that all invoices included in the day’s file were interfaced and approved.

By: Jason Caltrider

§301-2.1  Must I have authorization to travel?

Yes, generally you must have written or electronic authorization prior to incurring any travel expense. If it is not practicable or possible to obtain such authorization prior to travel, your agency may approve a specific authorization for reimbursement of travel expenses after travel is completed. However, written or electronic advance authorization is required for items in §301-2.5(c), (i), (n), and (o) of this part.

In addition, when available to the agency, the employee must use the E-Gov Travel Services in compliance to FTR Chapter 301-50.3.  The E-Gov Travel Services requires the employee to prepare an electronic travel authorization to make travel arrangements through on-line booking. Besides generally being required by the FTR, the electronic travel authorization provides a method for the federal agency to streamline document processing, monitor travel activity and manage travel funds.

The federal agency has the responsibility to insure federal funds are spent efficiently and responsibly.  Travel budgets are closely monitored.  The travel manager is tasked with the duty to insure travel is performed in the most economical and effective manner while still meeting the agency’s mission.  By preparing a travel authorization prior to the employee incurring the expenses, the financial manager and approving official can review the employee’s travel plans and determine whether or not the trip is in agreement with the agency’s financial accountability and mission.

In preparing the authorization the federal employee provides information to the approving official regarding why the travel is necessary, how the trip will be accomplished, and what expenses he expects to incur while on travel. Once the employee has submitted the request to perform travel with the estimated cost of the trip, the program office will identify how the costs of the travel will be paid and assigns a funding source.  The funding source classifies where the money is coming from to reimburse the employee for the travel expenses.  It identifies what budgetary fund, program office, project code, and reporting category that will be paying for the travel expenses.

Based on the information provided in the authorization, the approving official can determine if the requested trip is in alignment with the agency’s mission.  He can confirm that the expenses incurred are reasonable and are reimbursable according to the Federal Travel Regulations and within the agency’s internal travel policy.  He can verify that funds are available and being properly used to reimburse the employee for his cost incurred and/or pay any travel vendors directly, if appropriate.

If the approving official agrees with the outlined travel arrangements and expenses submitted by the employee, he will electronically affix his signature to the authorization, thereby giving permission for the employee to incur travel cost and authorizing the travel service providers to use the federal travel programs to arrange for transportation and/or hotel accommodations for the employee.  The signed authorization gives the finance office the go-ahead to obligate federal funds in anticipation of the future expenditures.

Once the authorization is approved and transmitted to the federal financial accounting system, it is recorded as a financial obligation for the federal agency.  The funding source provided in the authorization allows the budget officer and travel manager to track the use of funds for financial reporting and accountability.  The data captured in the accounting system can be retrieved and analyzed by the financial officer to evaluate the agency’s travel program and assist with financial decisions regarding their travel activity.

The electronic authorization has a built in audit features that assures the approving official that regulatory requirements are met.  It populates the travel voucher with the estimated costs reducing the time spent by the employee to prepare his voucher to claim reimbursement.  The employee only needs to update the expenses to actual costs and attach pertinent receipts for the approving officials review and signature.

In summary, the electronic authorization streamlines the voucher preparation and approval process by automatically forwarding data from the authorization to the electronic voucher. The authorization includes financial information needed by the finance office to assure funds are available and spent in accordance to budgetary plans and the Federal Travel Regulations.  It also identifies the purpose of the travel, so that the approving official can determine the necessity of the travel to meet the federal agency’s mission and financial accountability. It provides the documentation needed by the travel service provider to book transportation and hotel accommodations taking advantage of the Government travel programs. The travel authorization conveys information to the employee regarding the travel expenses that are reimbursable to him by his agency.  The travel authorization is the federal agency’s consent for their employee to travel using the Government’s resources.

By Regina Potter

The contents of this message are mine personally and do not reflect any position of the Government or my agency.

In order for the travel system to communicate the travel and accounting information to the financial accounting system, a coordination of data is obtained through a code structure and an interface program.  The financial codes are incorporated into the travel document. Each type of travel document triggers a specific accounting transaction.

The travel documents are interfaced into the agency’s financial accounting system after being approved by the program office. Travel data from the electronic document is compiled into a data file and transferred to the financial system through an electronic interface program.  In the interface the data is converted into the appropriate code to populate the required fields in the accounting system to create an accounting entry.  These elements include a transaction identification number, the type of accounting transaction, the method of payment, the amount of the payment, and the funding source for the payment.

The identification number is automatically generated by the travel system when the travel document is created.  This unique identifier becomes the document number associated with the accounting entry in the financial system.

The accounting transaction is generated by the type of travel document conveyed to the financial system.  A travel authorization establishes an obligation entry.  This transaction reserves federal funds in the amount estimated by the traveler in the electronic travel authorization.  A travel voucher establishes an accounts payable entry.  This transaction sets up a payment to a specified bank account in the amount identified in the electronic travel voucher.  When preparing the travel document the traveler selects the payment method for each expense.  The traveler has a choice of directing payment to a personal bank account, an individual government travel card account, or the federal agency’s centrally billed travel account.  The total amount paid to each account is calculated by the ETS and transmitted to the finance office through the interface.  Separate accounting entries are generated in the financial system for each payment method selected.

The funding source for each transaction is also included in the data interfaced into the accounting system through a coordination of codes.  The financial codes are established by the federal agency based on standard accounting and budgetary reporting elements required by the federal government.  The agency builds these codes into their financial accounting system to track funds available and spent.  The budgetary codes are assigned to each funding source, division, office, branch, project, and reporting category depending on the level needed to capture spending.  These codes are combined to establish the line of accounting which designates the financial source for payment of the travel expenses.

A combination of these codes is also entered into the electronic travel system.  The agency submits valid lines of accounting to the travel system administrator to add into the ETS. Adding these classifications to the ETS tables allows the traveler or program office to select the applicable line of accounting for the travel expenses incurred for the trip.

In addition to the lines of accounting, each expense submitted on the voucher is assigned a budget object code (BOC). Our agency uses the code of 21 to represent all travel related expenses.  This code is then broken down by the type of expense. For example, domestic lodging expense is assigned BOC 2111.  These expense codes are also imbedded into the travel system. When the traveler selects lodging accommodation the ETS records this as BOC 2111 with its associated cost. These expense codes are not obvious to the user.  They are coded in the background to be included in the data transmitted through the interface program to the financial system.

All of the documentation needed to support the accounting entry and disburse a payment is supplied through the electronic travel system and interface program.  The authorizing signatures, voucher, receipts, payee’s account, expenses, and funding sources are provided by the traveler and program office through application of the ETS.  The resulting data stored in the ETS and the agency’s financial system can be extracted to generate reports for the program office and the finance office to review for their travel management and financial decisions.

By Regina Potter

The contents of this message are mine personally and do not reflect any position of the Government or my agency.