Assurance & Business Advisory Resource, Inc.

a management consulting and business process outsourcing company

Presentation Sequence
About Us Our Expertise Our Migration Approach Getting Started Management Team Senior Associates and Board of Advisors

ABOUT US

About Us
Assurance & Business Advisory Resource, Inc. or ABAR is a professional services company dedicated to finance and accounting processes outsourcing. ABAR, as matter of policy direction, implements a collaborative approach with its clients to ensure that each step of the outsourcing process is aligned thus resulting in the delivery of customized business process outsourcing (BPO) solutions whose complexities could range from transaction-based functions, such as accounts receivable and accounts payable processing, to full-service finance and accounting, including decision support and analytics, such as performance analysis and reporting and responsibility accounting.

About Us
Drawing on the very varied experience of our management team in the field of accounting, business management and information system, we have developed specific principles to deliver the highest value possible when outsourcing finance and accounting processes. These include: Highly developed experience and expertise in finance and accounting processes Well trained accounting and business professionals Commitment to continuous improvement Recognition of clients technology resource as process base model

We set as our primary objectives for our clients, the improvement of their financial operations which could be realized from increased efficiency and transparency and in the process mitigating risk and tightening controls. ABAR will provide outsourcing services to a broad range of industries that would include manufacturing, financial services, hospitals and health organizations, retail, hotel/restaurant and non-profit institutions.

OUR EXPERTISE

Our Expertise
Full Service Individual Functions
Transaction Source Cycle
Disbursement Processing

Human Resources Cycle Payroll Administration

Preparation and Processing

Recording and Reporting General Ledger

Maintenance Account Reconcilation Banking/Treasury Report Inter-company Accounts Fixed Asset Accounting

Decision Support & Analytics

Preparation of Financial Statements Budget and Forecasting P&L / Balance Sheet Analysis Performance Analysis and Reporting Responsibility Accounting

Risk Management
Cash Management Treasury Budgeting Forecasting Regulatory Reporting Internal Audit -Internal Controls -Management Audit -Operational Improvement -Financial Impropriety Audit

Supplier/Service Provider Checks and EFT Administration Purchase Order Processing Reconcilation Tax Reporting Invoice Processing Government Requirements Review, record, and
monitor various disbursement activities and Reports Periodic and Annual Reports

Revenue Processing

Customer Administration Billing Credit Administration Collection Review, record and

monitor revenue generating activities

ABARs Scope of Services

OUR MIGRATION APPROACH

Our Approach
Process Documentation and Training
The migration approach template of ABAR begins by reviewing and documenting the functions selected by the client to be outsourced. Our professionals will team up with ABARs designated subject matter specialist to document in detail the outsourced process. This documentation will also be the template to be used to train ABARs offsite professionals and ensure their understanding of the process, including non-routine steps and unique situations and exceptions.The resulting documentation will also serve as guide to ensure accuracy and quality of our offsite processing and compliance with our clients business policies, operating guides and practices. As indicated above, the detailed process documentation serves as the basis for training our professionals and would also ensure standardization across processes at ABARs Philippines service center. To ensure that the documentation is complete and accurate, ABARs professionals responsible for performing the work will be put on a work shadowing environment with the clients incumbents. Using the process documentation, ABARs professional will re-process historical information in a test environment and compare those results with actual results.The work shadowing approach makes certain that the process documentation is complete and accurate and that the ABAR professionals will have the required knowledge and understanding of each process steps. Exceptions will be thoroughly examined and its cause evaluated and determined. These thorough and intensive documentation as well as training approach will enable ABAR to successfully migrate majority of the processes in 100 days, with the more complex processes in 120 to 150 days.

Our Approach
Summary of Process Documentation and Training Detailed documentation of outsourced process Employment of Subject Matter Specialists (SMS) Work Shadowing Reprocess Historical Information in a Test Environment Exceptions and Peculiar Transactions Thoroughly Examined

Our Approach
Risk Mitigation
ABAR fully understand the risks of outsourcing accounting functions and have as such instituted risk mitigation strategies into every aspect of our operations. The migration methodologies adopted will reinforce our clients internal control structure and controls. The key risk mitigation factors we have adopted are: All data reside on the clients servers to maintain control over sensitive information. Using our clients IT platform to ensure integration with other systems and avoids write-off of investments. If desirable and appropriate to mitigate loss of control, our clients key employees may remained as the clients staff and but become part of the ABARs team responsible for the function.

Our Approach
Optimizing Processes
ABAR believes in continuously raising the quality of its performance. As we perform our responsibilities as outsourced professionals, we will draw upon our management teams, Board of Advisors, Subject Matter Specialists and Business Professionals finance and accounting process experience, expertise and dedication to identify opportunities to: (a) reduce cycle times (b) achieve zero defect or errors (c) continuously improve processes. Our ultimate goal for success is for continuously raising the bar of our performance and thus contributing in the overall success of our clients business over the life of the contract.

Our Approach
Continuous Improvement
ABAR believes that Outsourcing is not just capturing the benefits of labor arbitrage but more so about improving operations. This could be achieved by integrating best practices, consolidating and standardizing of functions, or by eliminating process bottlenecks. These goals will evolved as a result of continuous improvement efforts. ABAR has set as ultimate goal to always be beyond our clients expectations. At ABAR, we set continuous improvement as an integral part of our outsourcing model. As indicated erstwhile in this document, we look as success when our contribution to our clients bottom line, as result of continuously raising the quality of our performance, is realized. We will continue to identify and implement additional value-added improvements using best practices methodologies to improve service quality. One built-in continuous improvement effort in our business process outsourcing approach is to strictly implement a quality review process that will proactively identify training needs of our employees to reduce exception reporting close to zero.

Our Approach
Continuous Improvement ABAR is dedicated and passionate in:

Integrating Best Practices Consolidating and Standardizing Functions Eliminating Process Bottleneck Identifying and Implementing Valued-added Improvements
Our Goal - ALWAYS Be Beyond Our Clients Expectations

Our Approach
Information and Data Security
ABARs approach to technology and security deliberately mitigates risks and employs significant precautionary privacy and security efforts. Technology, security and disaster recovery efforts are critical to the success of outsourcing and as such we will maintain the highest level of standards. It is imperative to safeguard valuable information as it is a companys key resource.As such, important basic concepts such as Confidentiality, Integrity, and Availability are observed. Confidentiality pertains to protecting a client companys data and information from disclosure to unauthorized parties. Enacting policies on privacy, access control and authentication is essential.These will also include monitoring activity, maintaining logs and audit trails. Integrity accounts for a system ensuring data quality and relevance. Information systems should provide an accurate representation of the physical systems that they represent. Availability provides a protected environment for supporting data flow and guarantee that all essential information and data is only available to those authorized to view and use it. ABAR has Information and Data Security Management guidelines in place that: help identify the threats that can compromise a companys information resources, define the risks these threats can impose, establish an information security policy, and implement controls that address the risks

Our Approach
Information and Data Security Deliberate Mitigation of Risk and Employment of Precautionary Privacy and Security Efforts Basic Concepts of Confidentiality, Integrity and Availability are Observed Information and Data Security Management
- Identify threats that can compromise a companys information resources - Define risks these threats can impose - Establish an information security policy - Implement controls that address the risks.

Our Approach
Disaster Recovery
Documented disaster recovery and business continuity plans are paramount when business processes are moved to offshore locations. Accordingly, all devices, services, locations, and personnel within ABAR network are taken into consideration; ABARs network links are protected by redundancies All system data is regularly backed up and stored in both local and remote locations Test restoration is regularly run to validate data recovery procedures A contingency relocation plan to guarantee a seamless transfer of operations to another site should the primary site be rendered unavailable We work to integrate our disaster recovery plans with those of our clients. A mutual plan takes into account outages on either side, ensuring that communication and organizational plans are securely in place. A joint disaster recovery team will be formed ensuring that individual and team roles including communication protocols are identified, understood and put in-place. A number of what if situations will be formulated and tested periodically.

Our Approach
The foregoing approach can be summarized as follows:
Providing and establishing a spirit of strong partnership and governance model. Development of a stakeholder matrix and a process to identify key risks. Work shadowing at clients site to ensure knowledge transfer and a firm understanding of your unique business requirements. Employment of tracking tools to detect, analyze and report transaction results. If required under the circumstance, a reengineering of some processes would be recommended. Develop an accounting organization to optimally address the companys requirements.

GETTING STARTED
THE OUTSOURCING PROCESS

Getting Started
Due Diligence
Before selecting and outsourcing provider, take the time to understand the details of your F & A processes. These would include: (a) ascertaining work flow, (b) the positions or jobs that would impact a particular process, (c) determining the inputs and outputs, (d) identifying work dependencies, (e) identifying users of information that are dependent on information created from a particular process, and (f) identifying processes hierarchies, i.e., from the most critical to those where compensating controls are in-place. These information can be obtained from existing documentation, such as SarbanesOxley or internal or external audit documentation. We can manage the gathering of information at the start of the outsourcing partnership.

Getting Started
Scope
You will have to address your companys desire and goals for outsourcing and whether you will take a phased or big-bang approach. Some companies choose to begin outsourcing only one or two discrete processes. Others, however, would choose to transform their business and outsource a significant part of their finance and accounting function to immediately achieve their transformation goals. We do not prescribe a definitive rule on this. This will depend largely on certain unique characteristics of the business endeavor. We can help assess your organization and recommend insights to maximize the benefits of outsourcing but at the same minimize the risks.

Approaches to Get Started

Business Case Formulation
The business case establishes the goals and strategies for moving forward. ABAR can develop the business case in concert with senior management. A formal business case sets the stage for contract provisions, governance and service level expectations.

Pilot Tests

Functions Selected
Many companies start by outsourcing only selected functions. Selected functions are designed to have high impact and achieve a substantial portion, but not all, of the goals set forth in the business case.

Optimal Mix of Functions

The scope of services typically expands over time, consistent with the business case. Companies often find other ways in which ABAR can provide benefit beyond the original business case, especially in operational (nonaccounting) aspects of their business.

Designed to demonstrate the viability of ABARs approach. Provides an opportunity to fine-tune, test connectivity and validate assumptions in the business case. Builds support among middle managers.

MANAGEMENT TEAM

Management Team
Augusto C. Cabugao
Director for International Operations
Mr. Cabugao heads ABARs BPO International Operations and a member of its Oversight Committee. He is a Certified Public Accountant and has more than 30 years of experience in the fast moving, dynamic and competitive petroleum industry and energy sector. He began his professional career with one of the Big 4 Audit firms then subsequently moved to Caltex Phils. Inc. (the subsidiary of Chevron/Texaco) as an Accounts Payable Clerk rising to the position of Regional Audit Manager for Asia Pacific of Caltex Petroleum Corporation, Dallas, Texas and later as CFO of Chevron Philippines, Inc. While in the petroleum industry, he has held various positions in Organization Development, Human Resources Management and Manila Shared Services Center a backroom transactional processing services in finance, HR and IT for Chevron Corp. Along the way Mr. Cabugao accumulated over 30 years of expertise in people management, project management, operational reviews, internal audit and financial management. His in-depth experience in leading and working with diverse culture teams has enabled him to build a strong understanding on leadership, communication and team building. He is currently the managing director of ABAR, Inc., a business process outsourcing firm catering to SMEs in the Philippines. He has attended advanced management development program courses at De La Salle University, University of the Philippines and University of Western Australia. He has also completed the Caltex Management Development Course conducted by Columbia University in Dallas, Texas. Mr. Cabugao was formerly a Director of The Institute of Internal Auditors (IIA) Philippine chapter and a member of the Dallas, USA IIA from 1998 to 2000.

Management Team
Frumencio Deguito
Director for Internal Operations
Mr. Deguito is the director for internal operations and a member of ABARs Oversight Committee. He brings with him over 29 years of managerial skills having served as General Manager of Caltex Philippines, Inc.s (the subsidiary of Chevron Corporation in the Philippines) Marketing Logistics and Marketing Retail Departments. He also served as member of the Board of Directors of Caltex Philippines from 1998 to 2000. During his stint at Caltex, Deguito has been involved in a number of reengineering projects in the areas of inventory system and automation of critical processes in the marketing operations group to bring about best practices and to strengthen internal controls. His efforts resulted not only in significant financial savings to Caltex Philippines but also improved efficiencies and processes. After Caltex, Deguito served as Chairman of BPO Client Support, Inc., a contact center handling client sourcing for Trendwest North, a California-based company. He holds a Bachelors Degree in Mechanical Engineering and a Masters in Management (with distinction) from the Asian Institute of Management- Manila.

Management Team
Victor Gerard C. Cabugao
Director for Information Systems
Victor Cabugao is ABARs Chief Information Officer and coordinates the technology resource of the firm. Victor holds a Bachelors Degree in Economics. His past experiences include the fields of business development and entrepreneurial consulting. He worked at one of the Big Four accounting firms as part of its financial advisory services team involved in corporate finance and project evaluation. In the past seven years, Victor has done independent consultancy in both the private and public sectors. Victor also served as business development officer of a start-up public relations and performance motivation firm. He served as IT Director of ABAR, Inc., a business process outsourcing firm. Through the years, Victor has broadened his skills in information technology acquiring expertise in I.T. security, networks and systems implementation. He is a Microsoft Certified Professional. Victor possesses vast knowledge in Unix Shell Programming and the Linux and Macintosh Operating Systems.

SENIOR ASSOCIATES AND MEMBERS OF THE ADVISORY BOARD

Senior Associates and Members of the Board of Advisors

William Bill Pfluger
Chairman Board of Advisors

Bill is one of ABARs Senior Associates and Chairman of the Board of Advisors. Bill started his career as an audit staff in Delotte and Touche prior to joining Caltex Petroleum Corporation (CPC), Dallas, Texas headquarters in 1973 culminating in Assistant Comptroller position that covered all processes of Comptrollership ranging from FASBs to financial reporting to reconciliations to payroll. In 1998, Bill spearheaded the establishment of the Manila Shared Services Center (MSSC) in the Philippines, a multifunctional backroom transactional processing services in the areas of finance, human resources and information technology for Chevron Corporation in North America and Asia-Pacific. Bill was responsible for leading and managing the Finance and Accounting Teams of MSSC in providing services to the different Chevron/Caltex geographic entities in Asia Pacific and Chevron/Texaco entities in North America. Included in this responsibilities was providing strategic and management direction in the overall planning activity for the implementation and conversion of Finance and Accounting processes from the geographic entities to MSSC. Bill is a director of the American Chamber of Commerce- Philippines, Trustee of the Business Processing AssociationPhils, member of the American Institute of CPAs and the New York State Society of CPAs and the Conference BoardAsia Pacific Shared Services Council. Bill holds a degree in Business Administration- Major in Accounting and MBA in International Business from Pace University. He has also taken advanced management program at Wharton University.

Senior Associates and Members of the Board of Advisors

Cherry Marie Cruz
Member Board of Advisors

Cherry is a Certified Public Accountant. Cherry began her career at one of the Big 4 Audit firms wherein she developed a strong background in finance, risk management, operations and compliance audit. Cherry then worked at a semiconductor manufacturing company as head of the Internal Audit Department and has spearheaded several design and implementation projects of Finance Related Business Solutions. As part of the finance group of a large petroleum company, she implemented strategic plans and budget reviews integral to the companys performance. Cherry has vast knowledge on Business Intelligence Solutions and Enterprise Financial Software.

Senior Associates and Members of the Board of Advisors

Danilo M. Celestial
Member Board of Advisors

Danilo is a Certified Public Accountant. He started his career as Junior Auditor at one of the Big Four accounting firms and was Audit Supervisor before joining the countrys biggest utility company. For 11 years he held various positions in the Finance area and later became Chief Financial Officer as Head of Financial Services. He was elected to the companys Board of Directors where he served as member for seven years. Danilo then joined one of the largest banks in the Philippines where he served as President of one of its subsidiaries. He currently holds board chairmanships in three financial development corporations and concurrently sits in ABAR, Inc., a domestic BPO firm, as a member of its Executive Committee

Senior Associates and Members of the Board of Advisors

KSearch
ABARs Manpower Recruitment and Development Partner
KSearch Asia Consulting, Inc. is an executive search and recruitment firm formally established in October 1999. Now with 18 search consultants and research analysts of various levels and organized according to functional practice areas, it has grown remarkably in nearly 10 years as an important player in the countrys executive search industry, recognirzed for its total quality service, integrity, and client satisfaction. KSearchs search consultants have a deep understanding of the practice areas in which they work. They are highly experienced according to their functional group assignments and are constantly trained on the various industries that they serve. All KSearch consultants undergo the Target Selection interviewing methodology. Their highly developed core skills in understanding the clients requirements, developing and implementing the sourcing strategies in close consultation with the client throughout the search process serve to produce the best candidate fit for the job. The firm also prides itself with having a rich and dynamic database of talents made up of pre-selected functional achievers across industries. KSearchs methodology is thoroughly research oriented, making use of its vast network of local and offshore contacts, affiliations, and alliances. KSearch is a member and co-cooperative owners of the US-based National Personnel Associates, the worldwide recruiting network, enabling it to import or export executive talents through any of its 400 member companies spread throughout most parts of the world. The industries KSearch serves include those in the Business Processing Outsourcing, Shared Services Centers, Pharmaceutical, Food Service, Fast Moving Consumer Goods, Information and Communication Technology, Manufacturing and Distribution, among others.

Senior Associates and Members of the Board of Advisors

Buan & Temprosa Law Offices
ABARs Legal Services Partner
The Firm provides legal services both to multinational and Philippine corporations from the BPO, IT, carbon emissions reduction, manufacturing, trading, education, real estate, services, retail, shipping and other sectors. The Firms services include consultation and representation on various immigration matters, facilitation of investment projects in the Philippines of non-Filipino and Filipino investors, civil and criminal litigation, and handling of applications for tax rulings, tax clearance and other tax-related matters.