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Public Sector

Finding solutions and strengthening trust

Public sector organisations are facing many familiar as well as new challenges. They include digitalisation, dealing with climate change and environmental protection, the sustainability of public services, and the optimisation of administration and compliance. Successfully coping with these challenges requires innovative concepts and experience.

True to the PwC motto “Build trust in society and solve important problems”, it is our particular concern to support the public sector in fulfilling its social tasks. We want to contribute to making processes more efficient and thereby strengthen trust in public entities. 

Our interdisciplinary range of advisory services is based on broad expertise in the various subject areas at federal, state, and local level. The PwC team has extensive experience in the public sector and designs tailor-made concepts for the situation of your organisation.

Public Sector

Federal, state, and local bodies

We are a reliable partner for governments, ministries, and other political institutions at federal, state, and local level when dealing with current challenges.

Public enterprises

We help public enterprises to reconcile the delivery of public services with the principles of economic efficiency.

Non-profit organisations

We support associations, foundations, NGOs, international organisations, and other non-profit-oriented entities in effectively delivering their added value to society.

Faith communities

We support churches and other faith communities in making themselves fit for the future.

Challenges

Digitalisation

Digitalisation poses a variety of challenges for public administrations and authorities. These include ethical issues related to new technologies, data protection and keeping pace with digital developments, as well as the needs of the population. For example, people increasingly expect to be able to deal with the authorities digitally and in a user-friendly manner. 

However, in addition to challenges, digitalisation also creates great benefits for the public sector. Data offers opportunities for increasing efficiency and reducing costs. Better decisions are also possible if the relevant information base is available and can be evaluated. We would be happy to advise you on the profitable use of technologies for your purposes and help you build up analysis capacities.

Climate change and sustainable development

The Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) emphasises the alarming progress of climate change. In addition, biodiversity loss and environmental pollution pose threats not only to the world's ecosystems, but also to the functioning and cohesion of societies and the safety and health of every individual.

The public sector has a pioneering role when it comes to sustainability. For one thing, government departments and administrations from the local to the national level are responsible for finding solutions for society as a whole and developing suitable policies to limit and remedy the negative impacts on our environment and climate. Moreover, the public sector is itself expected to lead by example and reduce its carbon footprint and other negative environmental impacts. We support public institutions from strategy development and the implementation of specific measures all the way to sustainability reporting.

Sustainable financing

People want to ensure that public services will also be guaranteed in the future. This challenge is at the heart of public finance management. It must ensure the sustainability of fiscal policy (tax and expenditure policy) as well as of other policy areas. The best-known indicators of the financial sustainability of states are the so-called “Maastricht criteria”: Maastricht deficit (< 3% of GDP) and Maastricht debt (<60% of GDP), which have been used at European Union level since 1992. Due to the introduction of double-entry accounting systems in more and more public institutions, these are also increasingly being supplemented by new and more comprehensive indicators (such as comprehensive risk, asset, and liability management).

Public institutions that take up this challenge and assess the sustainability of their finances can thereby increase public well-being and improve the quantity and quality of their services. They can also analyse and increase the efficiency of their public spending. The International Monetary Fund (IMF) has identified the following benefits for countries that manage their budgets through asset accounting: 

  • Lower interest rates on financing

  • Lower spreads on bonds (volatility)

  • Greater budgetary leeway for counter-cyclical measures

  • More resilience in economic downturns

  • Three times faster growth after recessions

In addition to ensuring long-term financial viability, there is also the question of which goals and developments should be supported by public spending and investments. In this context, financial investments that contribute to promoting sustainability and mitigating damage to the environment and climate are of particular importance. So-called “green bonds” are securities that are declared as sustainable. However, it should be noted that the “green bond” label has not yet been protected and that no central authority is responsible for its control. Accordingly, it is of particular importance for public sector bodies to scrutinise green bonds closely in order not to damage public confidence.

We will be happy to support you with the following services:

  • Budget analysis 

  • Introduction of or support in the application of IPSAS/BHG 2013 or VRV 2015

  • Ongoing support in asset and liability management (Public Sector Accounting Services)

  • Development of a comprehensive budget control system (NetWorth Strategy)

  • Support in the development and elaboration of sustainable financing instruments (e.g. green bonds)

Public consulting

Optimising structures and processes in the public sector

Public sector organisations are constantly facing new challenges that need to be met by adjusting strategies. To ensure efficient public administration, it is necessary to dismantle hierarchies and introduce more flexible structures. Good governance is characterised by openness, participation, accountability, effectiveness, and coherence. A particular challenge lies in successfully integrating and implementing these principles of “good governance” in public sector bodies.

Regardless of what drives the restructuring of your organisation, be it legal requirements, the optimisation of administrative processes, or the implementation of technical solutions and mechanisms, we can provide you with the support you need.

Specifically, we will support you with these services:

  • public corporate governance

  • project support

  • process optimisation

  • technical concepts

Citizen-centric services and increased efficiency have been driving buzzwords in public administration for several years. Digitalisation is omnipresent, and it impacts the public sector too. The high speed and the enormous complexity with which digitalisation is changing the reality of our lives pose enormous challenges for the public sector, but at the same time represent a huge potential for optimising administrative processes. Citizens demand online services as a matter of course, just as they want more transparency in political processes.

We will support you with these services:

  • public corporate governance

  • project support

  • process optimisation

Compliance

Compliance refers to the observance of and adherence to laws and guidelines, contractual obligations, and voluntary commitments by a company and its executive bodies, managers, and employees. What might seem self-evident in the public sector is by no means a matter of course. To be able to adequately fulfil monitoring and selection obligations, public companies must take organisational measures in which a compliance management system (CMS) is of central importance.

PwC provides comprehensive advice in compliance matters to public administrations and companies, thereby reducing the risk of corruption and promoting the attractiveness of the country as a business location.

What we offer

Public consulting

With our consulting services, we support you in meeting the numerous challenges of the public sector, including those related to climate change and sustainable development, management optimisation, and compliance.

Subsidy review & advice on potential subsidies

PwC's experts have many years of experience in the field of subsidies and can therefore provide you with optimal support, identify new opportunities, and ensure a smooth process.

On behalf of companies, we offer the following services:

  • Depending on the funding programme – usually above a certain threshold – it is necessary to have the subsidised expenses audited and certified by an auditor (e.g. FP7 from a funding amount of EUR 375,000).

  • Preparation of methodology certificates – e.g. certificate on the methodology for unit cost (CoMUC)

On behalf of public sector organisations, we carry out the following audits:

  • first-level control audits on behalf of the certifying authorities

  • second-level control audits on behalf of the auditing authorities

  • audits on behalf of the administrative or certifying authorities

Contact person: Rudolf Hoscher

 

Project support

As a long-term partner for public infrastructure projects, we would be glad to use our experience to advise and support municipalities, cities, states, and companies owned or influenced by public local authorities when implementing their (investment) projects.

Why do you need project support?

Especially in very complex and cost-intensive projects such as the construction of infrastructure, the renovation of buildings, or far-reaching digitalisation activities, you often come across very specific questions that even skilled employees can’t solve. This is exactly where we can step in as advisors to maximise your overall benefit – in line with the motto: We create added value together.

Specific ways PwC can support you in projects of this kind:

  • We advise you on rough and detailed project planning and project structuring.

  • With us you will define responsibilities clearly.

  • We’ll be at your side during the negotiation of financing agreements.

  • We’ll set important critical milestones.

  • We’ll develop an initial cash flow model.

  • We’ll compare possible implementation alternatives.

  • We’ll negotiate the business aspects of the project contracts with the client.

  • We’ll review the operational processes and financing.

  • We’ll help you with communicating the details to your employees

Your contact person: Tarik Daoud

 

Process optimisation

To make public administration more effective and efficient, it is necessary to continuously improve existing processes and operations as well as the use of resources required for them. Under the leadership of our process optimisation team, the processes in all areas of your organisation will be determined and scrutinised to identify and implement optimisation potentials. In doing so, we attach great importance to cross-departmental cooperation in order to optimise the entire process organisation and to prepare the public administration for a digital future.

Specifically, we will support you with these services:

  • Survey of current processes

  • Deriving requirements for the target situation

  • Definition of target processes

  • Creation of a realisation/implementation plan

Your contact person: David Morawski

 

Public Corporate Governance

Public corporate governance and compliance management are becoming increasingly important for publicly owned companies. In the past, breaches of the rules have often led to major liability and reputational damage for public companies. Transparency and control are therefore no longer buzzwords but represent everyday requirements for the management and supervisory bodies of federal, state, and local government holdings.

How PwC can support you in projects of this kind:

  • Introduction/expansion or evaluation of governance systems, such as

    • risk management system (RMS)

    • internal control system (ICS)

    • compliance management system (CMS)

  • Analysis and optimisation of governance functions (1st, 2nd or 3rd line): clear responsibilities, structured cooperation, regulated exchange of relevant information, and alignment of the organisation with its goals.

Contact person: Florian Mundigler

 

Public finance

Our financial services are designed to help public bodies meet the requirements of sustainable finances and funding.

Budget analysis

The public sector has a responsibility to its citizens to use budgetary funds efficiently. In this context, budgets should be analysed regularly to identify potential savings. 

The so-called spending review has established itself as a common tool for this purpose. We will gladly support you in designing and implementing such a review for your organisation. 

We would also be happy to analyse your budget from the point of view of sustainable financing. We offer long-term budget analyses that evaluate the extent to which current spending, tax, and other policies are future-proof.

In addition, the public budget offers an effective control function to drive other political goals such as equality or sustainability. We would be happy to show you the possibilities of gender budgeting and green/SDG budgeting as well as how to control the public budget with regard to your individual priorities.

Contact person: Bernhard Schatz

IPSAS

The International Public Sector Accounting Standards (IPSAS) are an international set of rules for accounting in the public sector. The introduction of IPSAS presents national and international public sector organisations with far-reaching decisions.

Switching to IPSAS will have effects on systems and processes, and we will be happy to advise you with our experience in the process. Besides the introduction, we can also support you in the subsequent application of IPSAS and the IPSAS-related public accounting standards such as BHG 2014 and VRV 2015.

PwC provides you with technical expertise and good practice solutions in the technical analysis and implementation of the new accounting standards.

Contact person: Bernhard Schatz

Find out more

Digitalisation in the public sector

With our offers for digitalising the public sector, we are at your side to address the expectations and difficulties related to a digitalised public administration.

Digitalisation (Digital Factory)

We work with public authorities / regulators and NGOs to use data to make better decisions, improve efficiency and effectiveness, promote the protection of citizens' interests, and proactively provide services tailored to citizens' needs. We help the authorities to build up data and analytics capacity, understand, test and scale use cases, and apply new and emerging technologies ethically. Advanced data analytics, artificial intelligence, and robotic process automation are just some of the technologies that create value from data.

We will support you with these services:

  • Applied AI Research Centre – research and prototyping of explainable and ethical AI-driven systems, building frameworks for data analysis based on "white box" modelling techniques compliant with Article 22 of the (European) General Data Protection Regulation to detect patterns and anomalies found in different types of data. Implementing the power of deep learning and reverse data engineering to extract knowledge and observations required for individual use cases. Conducting AI implementation studies.

  • Smart cities (energy & mobility) – consulting on smart cities. The development of smart cities – enabled, powered, and integrated by digital technologies – will be one of the crowning achievements of 21st century societies. Today, governments, businesses and citizens are making even greater use of technology to achieve their goals. Intelligent digital services are making life in cities easier, more fulfilling, and safer.

  • But the transformation of our cities has only just begun, and developing smart cities requires more than just technology. Municipalities and the private sector must work together to turn their vision of connected, efficient and always-on citizen services into reality.

  • Digital twins & simulations – safety management / disaster management

  • Virtual Reality & Metaverse

Contact person: Elena Yalozova

Digitalisation of accounting

Digitalisation is fundamentally changing the public sector, and with it its finance and accounting. Artificial intelligence, robotics, big data, advanced & predictive analytics, and blockchain are common buzzwords in this context.

Public entities that use the possibilities of digitalisation for their accounting and financial reporting can reduce costs and thus use taxpayers' money more efficiently. 

Use our experience to successfully develop and implement the digitalisation strategy for your finance and accounting.

Contact person: Bernhard Schatz

Mehr erfahren

Digital Consulting

Budget cuts, legislative changes and other political agendas make it difficult for public sector companies to take concrete action and stay innovative. In addition, the public's expectations of customer-focused, efficient, and quality-oriented services are exerting pressure. We help the public sector integrate digital technologies into the way they work to uncover new opportunities.

Contact person: Andreas Hladky

Digital Consulting for NPOs and public sector

Easy access and a dense infrastructure network form the backbone of modern economic processes. We know the challenges digitalisation brings in the field of transport and logistics and focus on the user experience.

Hollistic approach for transport and mobility

Digital transformation means that storied organisations are facing questions of relevance and innovative strength in the medium term. Process optimisation is the toughest challenge in this change process.

Process optimisation within legacy structures

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Contact us

Gerald Dipplinger

Gerald Dipplinger

Partner, PwC Austria

Tel: +43 1 501 88-3648

Hans Hartmann

Hans Hartmann

Partner, PwC Austria

Tel: +43 1 501 88-1816

Andreas Hladky

Andreas Hladky

Partner, PwC Austria

Tel: +43 1 501 88 2320

Christoph Obermair

Christoph Obermair

Partner, PwC Austria

Tel: +43 1 501 88-3629