Abar Presentation Revised

8/6/2019 Abar Presentation Revised

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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.





OUR EXPERTISE



DisbursementProcessing

Our Expertise

Individual Functions

Full Service

Transaction

Source Cycle

Recording and

ReportingHuman

Resources Cycle

Decision Support

&AnalyticsRisk Management

Revenue Processing

�Supplier/Service Provider

Administration

�Purchase Order Processing

�Invoice Processing

�Review, record, and

monitor various

disbursement activities

�Customer Administration

�Billing

�Credit Administration

�Collection

�Review, record and

monitor revenue

generating activities

�Payroll Administration

Preparation and Processing

�Checks and EFT

�Reconcilation

�Tax Reporting

�Government Requirements

and Reports

�Periodic and Annual

Reports

�General LedgerMaintenance

�Account Reconcilation

�Banking/Treasury Report

�Inter-company Accounts

�Fixed Asset Accounting

�Preparation of Financial

Statements�Budget and Forecasting

�P&L / Balance Sheet

Analysis

�Performance Analysis and

Reporting

�Responsibility Accounting

ABAR·s Scope of Services

�Cash Management

�

Treasury�Budgeting

�Forecasting

�Regulatory Reporting

�Internal Audit

-Internal Controls

- Management Audit

-Operational

Improvement

-Financial Impropriety

Audit



OUR MIGRATIONAPPROACH



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 ABAR·s designated subject matter specialist

to document in detail the outsourced process. This documentation will also be the template to be used to

train ABAR·s offsite professionals and ensure their understanding of the process, including non-routine stepsand 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 ABAR·s Philippines service center. To ensure that the

documentation is complete and accurate, ABAR·s professionals responsible for performing the work will be

put on a ´work shadowingµ environment with the client·s incumbents. Using the process documentation,

ABAR·s professional will re-process historical information in a test environment and compare those results

with actual results. The ́ work shadowingµ 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 Shadowingµ

� 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 managementteams·, 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 client·s 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 identifytraining needs of our employees to reduce exception reporting close to zero.





Our Approach

Information and Data Security

ABAR·s 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 company·s key resource. As such, important basic

concepts such as Confidentiality, Integrity, and Availability are observed.

�Confidentiality pertains to protecting a client company·s 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 anaccurate 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 company·s 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 company·s 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;

�ABAR·s 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 ifµ 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 client·s 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 company·s requirements.



GETTING STARTEDTHE 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) thepositions 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 Sarbanes-

Oxley 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 company·s 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 canhelp assess your organization and recommend insights to maximize the benefits of

outsourcing but at the same minimize the risks.



Approaches to Get Started

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 casesets the stage for

contract provisions,

governance and

service level

expectations.

Designed to

demonstrate the viabilityof ABAR·s approach.

Provides an opportunity

to fine-tune, test

connectivity and validate

assumptions in the

business case.

Builds support among

middle managers.

Many companies start by

outsourcing only selectedfunctions.

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.

The scope of services

typically expands overtime, consistent with the

business case.

Companies often find

other ways in which

ABAR can provide benefit

beyond the original

business case, especially in

operational (non-accounting) aspects of

their business.

Business Case

FormulationPilot Tests

Functions

Selected

Optimal

Mix of

Functions



MANAGEMENT TEAM



Augusto C. CabugaoDirector for International Operations

Mr. Cabugao heads ABAR·s 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 ² 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) ² Philippine chapter and a member of the

Dallas, USA IIA from 1998 to 2000.

Management Team



Frumencio DeguitoDirector for Internal Operations

Mr. Deguito is the director for internal operations and a member of ABAR·s 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





SENIOR ASSOCIATES

AND MEMBERS OF THE

ADVISORY BOARD



William ´Billµ PflugerChairman ² Board of Advisors

Bill is one of ABAR·s 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 FASB·s to financial reporting to reconciliations to payroll.

In 1998, Bill spearheaded the establishment of the Manila Shared Services Center (MSSC) in the Philippines, a multi-functional backroom transactional processing services in the areas of finance, human resources and informationtechnology for Chevron Corporation in North America and Asia-Pacific. Bill was responsible for leading and managing theFinance and Accounting Teams of MSSC in providing services to the different Chevron/Caltex geographic entities in AsiaPacific and Chevron/Texaco entities in North America. Included in this responsibilities was providing strategic andmanagement direction in the overall planning activity for the implementation and conversion of Finance and Accountingprocesses from the geographic entities to MSSC.

Bill is a director of the American Chamber of Commerce- Philippines, Trustee of the Business Processing Association-Phils, member of the American Institute of CPAs and the New York State Society of CPAs and the Conference Board-Asia Pacific Shared Services Council.

Bill holds a degree in Business Administration- Major in Accounting and MBA in International Business from PaceUniversity. He has also taken advanced management program at Wharton University.

Senior Associates and Members of the Board of

Advisors



Cherry Marie Cruz Member ² Board of Advisors

Cherry is a Certified Public Accountant. Cherry began her career at one of the Big 4 Auditfirms 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 company·s performance. Cherry has vast knowledge on Business Intelligence

Solutions and Enterprise Financial Software.


Advisors



Danilo M. Celestial Member ² 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 country·s 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 company·s 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


Advisors



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 country¶s executive search industry, recognirzed for its total quality

service, integrity, and client satisfaction.

KSearch¶s 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 client¶s 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.

KSearch¶s 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.

KSearch ABAR·s Manpower Recruitment and Development Partner


Advisors



Buan & Temprosa Law Offices ABAR·s 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 Firm¶s 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.


Advisors

Documents

Abar Presentation Revised