1. Execution status of budget, etc., regarding measures for COVID-19(Report on specific matters)

Ministries, agencies in charge

Backgroundof the Audit

The government has allocated a large amount of the budget to carry out various projects related to measures against COVID-19(COVID-19-related projects).
The total amount of the budget for responses and measures related to COVID-19 is as follows,- FY2019
456.4 billion yen- FY2020
76,697.4 billion yen- FY2021
36,958.9 billion yen- Total114,112.9 billion yen

Status of
the Audit

The Board analyzed the status of the budget execution of 1,367 projects whose budget execution was managed separately out of 1,529
COVID-19-related projects implemented from FY2019 to FY2021.
<Status of the budget execution of COVID-19-related projects (586 projects) for FY2021>
The actual budget for FY2021 was 50,873.5 billion yen, the expended amount was 33,847.1 billion yen, the carry-over amount to
FY2022 was 13,325.4 billion yen, the unused budget was 3,700.9 billion yen, and the execution rate was 66.5%.
<Status of the execution of the total budget for COVID-19-related projects from FY2019 to FY2021 (1,367 projects)>
The total budget for the three years from FY2019 to FY2021 (a total amount calculated by deducting overlaps among actual budget
amounts for the three years) is a large amount of 94,492 billion yen. The amount carried over from FY2021 to FY2022 out of thetotal budget is also a large amount of 13,325.4 billion yen.
<Status of the settlement and surplus amount of subsidies, etc., paid by rough estimate in FY2020>
The amount of subsidies, etc., that had been paid by rough estimate, and were settled between May 1, 2021 and April 30, 2022 is 3,446
billion yen. The surplus amount out of the amount is 478.8 billion yen.
The 3,446 billion yen was recorded as the expended amount for COVID-19-related projects in the statement of accounts for FY2020, but
the 478.8 billion yen was not ultimately used for the implementation of COVID-19-related projects.
<Status of the provision of information on the budget execution of COVID-19-related projects by ministries and agencies>
The expended amounts of major projects implemented by ministries and agencies were disclosed in the materials compiled by the
Cabinet Office. With regard to carry-over amounts and unused budgets, however, there are no standards for disclosure. Thus, otherthan one project implemented by the Ministry of Health, Labour and Welfare, carry-over amounts and unused budgets of COVID-19related projects were not explicitly disclosed as identifiable amounts.

Findings

ーMinistries and agencies should provide information in an easy-to-understand manner on the status of the execution of large amountsof budget for COVID-19-related projects, such as expended amounts, carry-over amounts as well as unused budgets, and surplus
amounts of subsidies, etc., which are the basic information on the status of the budget execution.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

11. Execution status of budget, etc., regarding measures for COVID-19(Report on specific matters)

Ministries, agencies in chargeーSince many projects were managed by dividing the budget execution, the status of budget execution was sorted and analyzed for these projects.

The status of the budget execution for COVID-19 related projects for FY2021
Number of projects

Actual budget
amountCarry-over amount from FY2020

586

22,325.6(Unit: projects, billion yen, %)Expended amount

50,873.5

Carry-over amount to FY2022

33,847.1

Unused budget

13,325.4

3,700.9The status of the execution of the total budget for COVID-19 related projects from FY2019 to FY2021
Expense item

Execution rate

66.5

(Unit: projects, billion yen, %)Number of projects

Total budget amount

Expended amount

Execution rate

Carry-over amount to FY2022

Unused budget

Unused rate

Measures to prevent COVID-19

533

18,656.4

15,885.5

85.1

2,105.7

665.0

3.5

Economic and employment measures

641

60,271.0

50,780.7

84.2

5,517.4

3,972.8

6.5

International cooperation

186

388.3

388.3

99.9

ー

0

0.0

7

15,761.1

9,437.5

62.1

5,702.1

36.4

0.2

1,367

94,492.0

76,492.1

80.9

13,325.4

4,674.4

4.9

Temporary subsidy for regional revitalization for COVID-19

Total

Total budget
amountExpendedamountCarry-overamount to
FY2022

Special Cash Payment Project

12,880.2

12,772.3

ー

107.9

99.1

Ministry of Economy, Tradeand Industry

Business Revival Support Grant

2,791.4

529.5

2,261.9

-

18.9

2020,
2021

Cabinet Office,Ministry of Internal Affairs
and Communications

Temporary subsidy for regional
revitalization for COVID-19

15,175.9

9,437.4

5,702.1

36.4

Project with the largest
unused budget

2020,
2021

Ministry of Land,
Infrastructure and Transport

Go To Travel Project

1,961.5

863.9

323.2

774.3

39.4

Project with the highest
unused rate

2019

Ministry of Health, Labourand Welfare

Subsidy regarding measures for
COVID-19

155.6

0.1

-

155.4

99.9

Status of budget execution
by project

FY

Ministries and agencies

Project name

Project with the largest
expended amount2020

Ministry of Internal Affairs
and Communications

Project with the lowest
execution rate

2021

Project with the largest
carry-over amount

UnusedbudgetExecution
rate

Unusedrate

Note: The shaded area does not include figures in the inspection report.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

21. Execution status of budget, etc., regarding measures for COVID-19(Report on specific matters)

Ministries, agencies in chargeーThe status of settlement and surplus amount of subsidies, etc., paid by rough estimate in FY2020
Projects where the expended amount is 10 billion yen or higher and the settlement was completed between May in FY2021
and April in FY2022(Unit: Project, billion yen)Amount of subsidies paid byrough estimate

Number of projects
16

3,446.0

The confirmed amount out of theleft column

Surplus amount

2,967.2

4,788

・ If subsidies paid by rough estimate are not settled by April 30 of the following fiscal year, surplus amounts that have not been finally used byrecipients cannot be returned to the current fiscal year's budget and are recorded as part of the expended amount in the statement of accounts forthe current fiscal year.
・ Although the amount of subsidies paid by rough estimate in the above table was recorded as the expended amount for COVID-19-related projects
in the statement of accounts for FY2020, the surplus amount was not finally used for the implementation of COVID-19-related projects andthus the actually used amount cannot be recognized by the settlement of accounts alone.
・All the surplus amounts were returned to the national treasury, and were recorded as revenues for FY2021 or FY2022.

Status of the provision of Information on the budget execution of COVID-19-related projects by ministries and agencies
・ In the meeting materials of ”the Council on Economic and Fiscal Policy (CEFP) “ of the Cabinet Office, the expended amounts for major projects
implemented by ministries and agencies were disclosed.
Carry-over amounts and unused budgets of COVID-19-related projects were not explicitly disclosed as identifiable amounts, other than
one project implemented by the Ministry of Health, Labour and Welfare.

Findings
Ministries and agencies in charge should provide information in an easy-to-understand manner on the status of the budget
execution of large amounts of budget for COVID-19-related projects, such as expended amounts, carry-over amounts as well as
unused budgets, and surplus amounts of subsidies, etc., which are the basic information on the status of the budget execution.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

32. Usage of devices such as mobile Wi-Fi routers(Presentation of Opinions)

Ministry of Education, Culture, Sports, Science and Technology
917.06 million yen (Improper amount)In the Telecommunication Equipment Provision Support Project for Home Learning (subsidy project), prefectural and municipal
governments (entities) are given subsidies for purchasing devices such as mobile Wi-Fi routers (routers) to be lent for
supporting home-based learning activities carried out by students of subsidized schools using the Internet as part of school
educational activities (Home learning).

Outline of
the Project

The entities lend the router to households that cannot afford to prepare an Internet environment so that students cancontinue their studies in the event of emergencies such as temporary school closure due to COVID-19 and other situations.
The Ministry of Education, Culture, Sports, Science and Technology (MEXT) indicates that routers should be usedeffectively in emergencies as well as in normal times, and can be used for extracurricular activities and be lent tohouseholds other than those receiving subsidies for school attendance, but entities are required to appropriately manage thesubsidy project in accordance with its purpose.
In 193 entities (79.7%) out of 242 entities that implemented subsidy projects in FY2020, the maximum lending rate for each
entity up to the end of the FY2021 (ratio of the number of routers that were lent to households at the peak to the number of routers
procured under subsidy projects in FY2020, is less than 50%.
In the 193 entities mentioned above, 101,614 routers (equivalent to a national subsidy of 917.06 million yen) have not beenused for home learning for more than one year after delivery.

Audit
Results

Out of 141 entities that recognized the main factors for the sluggish maximum lending rate, 74 entities cited “due to a lower
number of households wanting to borrow routers than expected,” and 56 entities cited “due to the lack of progress inhome learning.”
The number of routers that entities did not expect to be used for home learning in the future is 80,181.
MEXT has not provided sufficient information so that entities could properly consider the utilization of routers for homelearning and other activities.

Presentationof Opinions

To ensure that routers will be utilized as effectively as possible in the future:
After having entities identify why the use of routers for home learning is sluggish, MEXT should consider measures topromote the use of routers for home learning based on the identified factors and disseminate the result to entities.
To the extent that it does not interfere with the use of routers for home learning, MEXT should examine the use and methods
other than home learning for effectively utilizing routers, and, based on the result, disseminate appropriate utilization methods
to entities, such as by introducing good practices.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

42. Usage of devices such as mobile Wi-Fi routers(Presentation of Opinions)

Ministry of Education, Culture, Sports, Science and Technology
917.06 million yen (Improper amount)

Outline of the Telecommunication Equipment Provision Support Project for Home Learning
In case of emergencies
such as temporary school closure and other situations

Using at home
Home learning using the Internet×

Need to enable students to continue learning
Go toschoolLend mobile Wi-Fi routers

Source:“Outline of supplementarybudget for FY 2020:
Realization of GIGA School
Program“(May 11 2020, Ministry of
Education, Culture, Sports,
Science and Technology) ,modified by the Board of Audit
of Japan.

Students who cannot afford Wi-Fi routers
Audit Results● Usage of routers● Main factors for the sluggish maximum routerlending rate (141 entities identified the factors)

Maximum lending rate of routers until the end of FY2021
50% ormore

AMore than30%
and lessthan 50%

10% ormore
Less than
30%

Less than
10%

B

C

D

Total

0% out ofthem

A+B+C+D

Total of the
maximum lending
rate that is lessthan 50%

B+C+D

Number of entities(Percentage of their total)

49(20.2%)

36(14.8%)

51(21.0%)

106(43.8%)

31(12.8%)

242(100%)

193(79.7%)

Number of routers that have not been lentto households and have not been used forhome learning by the end of FY2021 (units)

11,701

16,35230,67754,585

7,138

113,315

101,614

The amount equivalent to subsidies
pertaining to the above (in thousand yen)

110,346

143,740

296,429 476,894

67,239

1,027,411

917,064

Presentation of Opinions

・ "Due to a lower number of households
wanting to borrow routers than expected”:
74 entities
・ "Due to the lack of progress in homelearning”:
56 entities● Prospective usage of routers for home learning in
the future
・ The number of routers that were not expected to
be used in future is 80,181.
⇒ The Ministry of Education, Culture, Sports,
Science and Technology (MEXT) has notprovided sufficient information so that entities
could properly consider the utilization ofrouters.

Lending is sluggish

To ensure that routers will be utilized as effectively as possible in the future:・After having entities identify why the use of routers for home learning is sluggish, MEXT should consider measures to promote the use of routers forhome learning based on the identified factors and disseminate the result to entities.
・To the extent that it does not interfere with the use of routers for home learning, MEXT should examine the use and methods other than home study for
effectively utilizing routers, and, based on the result, disseminate appropriate utilization methods to entities, such as by introducing good practices.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

5

3. Implementation of projects provided with the temporary subsidy for regional
revitalization for COVID-19 (Presentation of Opinions and Demand for Measures)

Cabinet Office,Ministry of Internal Affairs and Communications
730.61 million yen (Improper amount)
2,731,116.21 million yen (Background amount)

Outline of
the Project

The national government provides the temporary subsidy for regional revitalization for COVID-19 (COVID-19 subsidy) for expenses of
eligible projects based on implementation plans (implementation plan) for the temporary subsidy for regional revitalization for COVID-19
prepared by local governments.
Projects eligible for the COVID-19 subsidy aim to contribute to the prevention of the spread of COVID-19 and the revitalization of local economies
and lives of residents affected by the spread of the infection. In principle, there are no restrictions on the use of the COVID-19 subsidy.
The COVID-19 subsidy can also be used to support local independent projects. There are various projects in local independent projects, such as
the project of distributing gift vouchers, etc., the project of subsidies for credit guarantee fees, etc., the project for reduction and exemption of water
charges, etc., and the project of additional sustainability subsidies.
After the completion of subsidized projects, local governments are requested to evaluate the implementation status of the projects and their effectby appropriate methods such as questionnaire surveys (verification of the effect ), and are requested for publishing the result.

Audit
Results

The Board audited subsidized projects in the implementation plans of 24 prefectures and 965 municipalities for FY2020.
In the projects of distributing gift vouchers, etc., 68.93 million yen, which is equivalent to the amount of unredeemed gift vouchers, etc., after the
expiration date in 30 municipalities, was held at entities such as the commercial and industrial associations (The appropriated amount of thesubsidy: 66.95 million yen), etc.
In the project of subsidies for credit guarantee fees, etc., 562.94 million yen, which was refunded as excess payment as a result of early
redemption of debts covered by guarantees in 3 prefectures and 82 municipalities, is held by the local governments (The amount equivalent to thesubsidy: 547.50 million yen)In the project for reduction and exemption of water charges, etc., the COVID-19 subsidy has been allocated to reduction and exemption of
the water charges, etc., of 122.57 million yen for public institutions in 84 municipalities (The appropriated amount of the subsidy: 116.16 million yen).
In the project of additional sustainability subsidies, in cases where the presentation contracts for sustainability subsidies are canceled due tofraud or other reasons, it is difficult to examine whether the additional amount provided from the COVID-19 subsidy is eligible.
21 prefectures and 738 municipalities have not disclosed the verification results of subsidized projects. 17 prefectures and 541 municipalities
out of these local governments did not conduct a verification of the effect, and 4 prefectures and 197 municipalities conducted a verification of theeffect, but have not released the verification results.

Presentationof Opinions

The Cabinet Office should inform local governments that the COVID-19 subsidy will not be allocated to the amount equivalent to unredeemed gift
vouchers, etc., after the expiration date in the project of distributing gift vouchers, etc., which has been held at entities such as the commercial
and industrial associations.
Regarding the project for reduction and exemption of water charges, etc., the Cabinet Office should consider measures such as indicating to local
governments that, in principle, water charges, etc., for public institutions are not eligible for the COVID-19 subsidy.
The Cabinet Office should consider measures to disseminate methods of a verification of the effect to local governments, and inform local
governments that they need to conduct a verification of the effect promptly by an appropriate method in line with the purpose of the verification of
the effect and publish the result.
etc.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

63. Implementation of projects provided with the temporary subsidy for regional
revitalization for COVID-19 (Presentation of Opinions and Demand for Measures)

Cabinet Office,Ministry of Internal Affairs and Communications
730.61 million yen (Improper amount)
2,731,116.21 million yen (Background amount)

Outline of the temporary subsidy for regional development for COVID-19 (COVID-19 subsidies)
National government
Subsidies

Local governments
Formulation of
implementation
plans

Implementationof various
projects

Verification of
the effectPublication

Gift
vouchers

The national government provides subsidies for expenses of eligible projects based on implementation plans prepared by local
governments.
Eligible projects aim to contribute to the prevention of the spread of COVID-19 and the revitalization of local economies and lives ofresidents affected by the spread of the infection.
In principle, there are no restrictions on the use of the COVID-19 subsidy, and local independent projects can be also subsidized.
Thus, eligible projects included in implementation plans are diverse.
After the completion of subsidized projects, local governments are requested to evaluate the implementation status of the projects andtheir effect by appropriate methods such as questionnaire surveys, and to publish the result.

<Projects of distributing gift vouchers, etc.>

Audit Results

Projects to distribute regional-specific gift vouchers, etc., free of charge for livelihood support and encouraging
consumer spending and other purposes.
30 municipalities did not have rules to settle the amount equivalent to unredeemed gift vouchers, etc., that havenot been used by the expiration date, and 68.93 million yen was held at entities such as commercial andindustrial associations. (The appropriated amount of the subsidy: of 66.95 million yen)
→ The COVID-19 subsidy was not been fully utilized.
57 municipalities were not aware of the amounts of gift vouchers exchanged between entities such as commercial
and industrial associations and dealers. (Background amount: 1,294.52 million yen).
Advanced payment for
the equivalent to thegift vouchers, etc.

Local governments
It will not be reimbursed.

Claim
Entities such as commercial andindustrial associations
entrusted by local governments, etc. Cashing
The equivalent to unredeemedcash of unredeemed gift
vouchers is accumulated.

Store<Projects for reductionand exemption of water charges, etc.>
84 municipalities out of the 293 municipalities audited applied
for reduction and exemption of water charges, etc. to allcontractors in their jurisdiction.
Reduction andexemption of water
charges, etc.
Individuals,
Public institution
business operator, etc.

Residents, etc.

The COVID-19 subsidy was also used for reduction and exemptionof the water charges, etc. for public institutions.
(The appropriated amount of the subsidy: 116.16 million yen)

Gift vouchers, etc. Expired for use→ Although the projects were categorized as "support forhouseholds and individuals who are in need,” they did notmeet the purpose of supporting civic life and local economy.

Use
Gift vouchers, etc.

Demand for Measures

Presentation of Opinions

The Cabinet Office should establish a policy of not allocating the subsidy to the amount equivalent tounredeemed gift voucher, etc., after the expiration date, which were held at entities such ascommercial and industrial associations, entrusted by local governments, etc., and recognizing theamounts of exchanged gift vouchers, etc., and inform local governments of it.

The Cabinet Office should consider measures such as
indicating to local governments that, in principle, water
charges, etc., for public institutions are not eligible for
the COVID-19 subsidy.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

7

3. Implementation of projects provided with the temporary subsidy for regional
revitalization for COVID-19 (Presentation of Opinions and Demand for Measures)

Cabinet Office,Ministry of Internal Affairs and Communications
730.61 million yen (Improper amount)
2,731,116.21 million yen (Background amount)

Audit Results
Demand for Measures＜Project of subsidies for credit guarantee fees, etc.＞
In the project, local governments provide subsidies for credit guarantee fees, etc., borne by small and medium-sizedenterprises that get loans.
In the event that small and medium-sized enterprises redeem guaranteed loans before maturity and the overpaymentof credit guarantee fees, etc., arises, the excess payment of subsidies will be refunded to local governments.
Has not specified how to handle
refunds when they arise.

Subsidy
Local
Credit guarantee
governments
corporations
Performance Accumulation Refund
reportNational
government

SubsidyFor 3 prefectures and 82 municipalities, the amount of the COVID-19
subsidy was fixed based on subsidized project expenses in performance
reports submitted to the national government, from which refunds were
not excluded, and 562.94 million yen (appropriated amount of grants
of 547.50 million yen) was held by them.

Possibility of refunds by
the end of the loan period

Offices in charge of the subsidies were
not aware of the occurrence of refunds
or did not identify the amount of refunds.

If presentation contracts for sustainability subsidies are canceled due to fraud or other reasons,the requirement for additional sustainability subsidies will not be met.
5 prefectures and 86 municipalities had difficulty in examining whether additional sustainability
subsidies meet the requirements, since they did not obtain recipients’ consent to provide theirpersonal information and were not able to receive their personal information from organizations
such as the Small and Medium Enterprise Agency.
(Background amount: 32,102.32 million yen)

When examining the implementation status of verification of the effect on subsidized projects ofimplementation plans for FY2020 in 24 prefectures and 965 municipalities and the status of theirdisclosure of the verification results (as of the end of March, 2022), it was found that 21 prefectures and738 municipalities have not disclosed the verification results of subsidized projects.

Copyright©2022 Board of Audit of JapanThe Cabinet Office should advise local
governments to establish a system to obtainconsent from recipients to provide their personal
information when providing their own subsidies,etc., on condition that the recipients are
subsidized by the national government.

Presentation of Opinions<Verification of the effect>

17 prefectures and 541 municipalities

Ministry of Internal Affairs andCommunications should establish a system for
local governments to recognize the amount ofrefunds of overpaid credit guarantee fees, etc.,
and to exclude the amount from subsidized
project expenses in performance reports.

Demand for Measures<Project of additional sustainability subsidies>

4 prefectures and 197 municipalities

The Cabinet Office should disseminate thepossible refunds of overpaid credit guarantee
fees, etc., due to advance redemption, etc.,
and the handling rule of such cases.

They conducted a verification of the effect, but theverification results were not disclosed.
They did not conduct a verification of the effect.
(Background amount: 2,697,719.37 million yen)

The Cabinet Office should consider measures todisseminate methods of a verification of theeffect to local governments, and inform local
governments that they need to conduct a
verification of the effect promptly by anappropriate method in line with the purpose of
the verification of the effect and publish the result.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

84. Ex-post examination of employment adjustment subsidies, etc.,
and leave support grants, etc. (Demand for Measures)
Outline of
ex-postexamination by
the Ministry of
Health, Labourand Welfare,etc.

Ministry of Health, Labour and Welfare,
33 Labour Bureaus
317.19 million yen (Improper amount)

In order to expedite the payment of employment adjustment subsidies, etc., and leave support grants, etc., the Ministry of Health,Labour and Welfare (MHLW) expedites examination (pre-examination) conducted at the time of payment decision, etc., and, inorder to ensure appropriate payment, works on examination (ex-post examination) to see if there are any fraudulent receipts
after payment.
In order to strengthen its response to fraudulent receipts, MHLW issued a notice that instructed labour bureaus to conduct onsite inspections by visiting the business places of employers who received employment adjustment subsidies, etc., to labour
bureaus in October 2021.
In light of the limited number of business places that labour bureaus can visit for on-site inspections, the Board examined
employment adjustment subsidies and leave support grants determined for payment in both FY2020 and FY2021 to examine
whether the ex-post examination was conducted appropriately.

Audit Results

Data has not been fully utilized, and the ex-post examination to see if payments of employment adjustment subsidies, etc.,
and leave support grants, etc., were overlapped (overlapping payment) has not been properly conducted, etc.
(Improper amount: 161.33 million yen)
Data has not been fully utilized, and the ex-post examination to see if leave support grants, etc., was paid twice(duplicate payment), has not been properly conducted. (Improper amount: 22.71 million yen)
The scope of employers for the on-site inspection has not been set on the risks, etc., and it was found that employers
outside the scope of the on-site inspection received employment adjustment subsidies fraudulently.
(Improper amount: 133.15 million yen)
MHLW should conduct the ex-post examination to see if there are any overlapping payments by utilizing the data
possessed and other ways, and take measures such as formulating specific methods and other ways.

Demand for
MeasuresMHLW should conduct the ex-post examination to see if there are any duplicate payments by utilizing the data
possessed and other ways, and take measures such as formulating specific methods.
MHLW should review the scope of employers for the on-site inspection with due considerations to risks and otherelements, select employers for the on-site inspection based on priorities assigned by appropriately assessing risks andformulate specific methods.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

9Ministry of Health, Labour and Welfare,
33 Labour Bureaus
317.19 million yen (Improper amount)

4. Ex-post examination of employment adjustment subsidies, etc.,
and leave support grants, etc. (Demand for Measures)
Outline of employment adjustment subsidies, etc.

Either of the grants will be paid depending onwhether the employer has paid leaveallowance to the employee who is on leave.

Employers(1) Order to take leave

Outline of leave support grants, etc.

(3) Application(1) Order to take leave

Labour Bureaus

Employees

Employers

Employees(2) Not pay leave allowance

Labour Bureaus(3) Application(2) Pay leave allowance(4) Payment of subsidies(4) Payment of grants

Employees covered by employment insurance ⇒ Employment adjustment subsidies
Employees other than the above employees ⇒ Emergency employment stability subsidies

Employees covered by employment insurance ⇒ Leave support grants
Employees other than the above employees⇒ Leave grant allowances

Status of the ex-post examination by Ministry of Health, Labour and Welfare[Status of the ex-post examination conducted by MHLW]
1. Overlapping payments

Rapid contraction of economic activities dueto the impact of COVID-19
19 and other reasons.

● The ex-post examination is conducted if there is any suspicionof fraudulent receipts of leave support grants, etc.
● The ex-post examination has not been conducted by utilizing
the payment data.

In order to maintain employment of workers, prompt
payment of employment adjustment subsidies, etc.,
and leave support grants, etc., were required.
⇒ Goal: make payment within two weeks in principle.

2. Duplicate payment● The ex-post examination has not been conducted by utilizing
the payment data.

For that purpose•Simplification of application documents•Expediting of examination•Establishment of a business system
in Labour Bureaus, etc.
Copyright©2022 Board of Audit of Japan

3. On-site inspection
Limited examination conducted at
the time of payment
The ex-post examination is importantto respond to fraudulent receipts.

What MHLW
has been doing
for the ex-post
examination● Selection lists are created and employers for the inspection are
selected from the selection lists.
● Employers whose applications have arisen suspicion at thetime of the pre-examination and whose fraudulent receipts
have been informed are to be included in the selection lists.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

10

Ministry of Health, Labour and Welfare,
33 Labour Bureaus
317.19 million yen (Improper amount)

4. Ex-post examination of employment adjustment subsidies, etc.,
and leave support grants, etc. (Demand for Measures)
Audit Results (1)Data has not been fully utilized, and the ex-post examination to see if the payment of employment adjustment
subsidies, etc., and leave support grants, etc. were overlapped has not been properly conducted, etc.
It is possible to extract potential overlapping payments through the analysisof data held by the Ministry of Health, Labour and Welfare (MHLW).

Employers(3) Applied for employment adjustment subsidies,etc., claiming that the employer has paid leaveallowance to the employee.

(4) Paying employment
adjustment subsidies, etc.

Employees(3)’ Applied for leave support grants, etc., claiming

Not allowedin the system

Labour Bureaus

that the employer did not pay leave allowance tothe employee.

Overlapping
payments(4)’ Paying leave support
grants, etc.

The Board actually analyzed the data, and found thatoverlapping payments were 100.17 million yen.
In addition to theoverlapping payments

Fraudulent receipt of employment adjustment
subsidies, etc.: 52.77 million yen.

Fraudulent receipt of leave support grants, etc.:
8.38 million yen.
(Improper amount: 161.33 million yen)

Demand for Measures
MHLW should conduct the ex-post examination to see if there are
any overlapping payments by utilizing the data possessed and otherways, and take measures such as formulating specific methods, etc.

Data has not been fully utilized and the ex-post examination, to see if leave support grants, etc., were paid twice,
Audit Results (2) has not been properly conducted, etc.
It is possible to extract potential duplicate payments through the analysis ofdata held by MHLW.

(3) Applied for leave support grants, etc.

Employees(4) Payment

Labour Bureaus

The Board actually analyzed the data, and found that
duplicate payments were 22.71 million yen.
(Improper amount: 22.71 million yen)(3)’ Applied again for leave support grants, etc.

Demand for Measures(4)’ Duplicate payment

Copyright©2022 Board of Audit of JapanMHLW should conduct the ex-post examination to see if there areany duplicate payments by utilizing the data possessed and otherways and take measures such as formulating specific methods, etc.
This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

11

4. Ex-post examination of employment adjustment subsidies, etc.,
and leave support grants, etc. (Demand for Measures)

Ministry of Health, Labour and Welfare,
33 Labour Bureaus
317.19 million yen (Improper amount)

The scope of employers subject to the on-site inspection has not been set based on risks and other elements, and it was

Audit Results (3) found that employers outside the scope of the on-site survey received employment adjustment subsidies fraudulently.
● Scope of employers subject of the on-site inspection in the efforts of MHLW (image figure)

Employers whose
applications have arisen
suspicion at the time ofthe pre-examination- Category I

Employers whose
fraudulent receipts
have been informed- Category II

Outside thescope of theon-siteinspection(MHLW approach for selection)
High-risk employers

High-risk employers

High-risk employers

Mid-risk employers

High-risk employers

High-risk employers

Low-risk employers

Mid-risk employers

Mid-risk employers● Scope of employers subject of the on-site inspection in the Board’s Demand for Measures(image figure)

Employers whose
applications have arisen
suspicion at the time ofthe pre-examination- Category I

Employers whose
fraudulent receipts
have been informed- Category II

Employers who have arelatively high risk of
fraudulent receipts outof the employers
outside the scope of theon-site inspection Category III(The Board’s approach for selection in the Demand of Measures)High-risk employers

High-risk employers

High-risk employers

Mid-risk employers

High-risk employers

High-risk employers

Low-risk employers

Mid-risk employers

Mid-risk employers

Copyright©2022 Board of Audit of Japan

66 employers were extracted from category III and examined.
⇒ 6 employers fraudulently received employment adjustment
subsidies of 133.15 million yen in total.
(For example, an employer claims that it has employees
although it has none.)

The percentage of frauds
found by the on-site
5.7%
inspection by
9 Labour Bureaus.

The percentage of frauds
9.0%
found in the Board’s audit.

Frauds were also found in categories III, and thus employers of
categories III need to be included in the scope for the on-site
survey. Otherwise employers who are supposed to be at risk ofmaking fraudulent payment applications will not be examined.

Demand for Measures
MHLW should review the scope of employers subject to theon-site inspection with due considerations to risks, andformulate specific methods to select employers for the on-site
inspection based on priorities assigned by appropriately assessing
risks.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

12

5. Payment of cancellation fee-related expenses in the Go To Travel Project(Demand for Measures)Japan Tourism Agency
217.39 million yen (Improper amount)

Outline of
the ProjectJapan Tourism Agency (JTA) entrusted the implementation of the Go To Travel Project which provides discounts on travel fares, etc., to the Tourism
Industry Joint Proposal Body (Travel office). (Implementation period: July 2020 to December 2022 (as of the end of August 2022). The estimatedamount of contracting costs: 234.1 billion yen (as of the end of April 2022))
In light of the infection status of COVID-19, from November 2020, JTA temporarily took measures such as suspension of the project, and requested
travel agencies, etc., to refrain from receiving cancellation fees for reservations of travel products from travelers.
In order to reduce the real losses incurred by tourism-related business operators due to the request aforementioned, JTA, through the Travel office,took measures to pay travel agencies, etc., cancellation fee-related expenses and administrative fees for allocating the expenses to tourismrelated business operators, for reservations that meet the requirements (payment requirements) stipulated in the guidelines, etc. (Cancellation feerelated expenses, etc., paid by the Travel office: 132.1 billion yen)
At the time of application, travel agencies, etc., shall submit to the Travel office a list (reservation list) stating the reservation dates, cancellation dates
and other data of canceled tour products.
The Travel office prepared a manual for examiners of application, and examined the details of reservation lists and other related documents (preexamination), and paid cancellation fee-related expenses, etc.
Travel agencies, etc., shall keep documents (reservation records, etc.) proving the reservation details of tour products and cancellation dates, etc.

Audit
Results

Cancellation fee-related expenses, etc., were paid even though the actual cancellation dates stated in reservation records, etc., did not fallunder the eligible period, etc., and thus did not meet the payment requirements. (Cancellation fee-related expenses, etc.: 29.57 million yen
in 865 cases).
Cancellation fee-related expenses, etc., were paid even though the reservation dates and cancellation dates, etc., reported on reservation
lists did not fall under the eligible period set in the guideline and thus did not meet the payment requirements (Cancellation fee-related
expenses, etc.: 187.82 million yen in 9,104 cases).
JTA instructed the Travel office to reexamine part of reservations after the pre-examination by requesting travel agencies, etc., tosubmit reservation records, etc. (ex-post examination).
The ex-post examination remained at only 6,086 (0.15%) out of 4.05 million reservations, and JTA did not dictate the expansion ofcoverage.
Even the check items described in the manual for examiners were not sufficiently examined.

Demandfor
Measures

With regard to reservations for which the details of reservation records, etc., did not meet the payment requirements, JTA should instruct theTravel office to calculate cancellation fee-related expenses, etc., request travel agencies to return overpayments, and return theequivalent contracting costs to the national treasury.
With regard to reservations for which the details of reservation lists, etc., did not meet the payment requirements, JTA should instruct theTravel office to take the same action above, except for cases where it will be confirmed that reservations meet the payment requirements
based on reservation records, etc.
JTA should instruct the Travel office to consider methods for an efficient examination and other measures and then ex-post examine whether
reservations are eligible by expanding the scope of examination based on the results of both the Travel office’s ex-post examination and
the Board’s audit, and take the same action above for reservations that will be found ineligible.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

13

Japan Tourism Agency

5. Payment of cancellation fee-related expenses in the Go To Travel Project(Demand for Measures)

217.39 million yen (Improper amount)

Outline of the payment procedure and examination of cancellation fee-related expenses
Travel agencies, etc.

Travel office
Japan Tourism Agency (JTA)

Pre-examination(2) (2) Confirmation
Reservation
List

Estimated payment234.1 billion yen(Consignment)*if any suspicion,
Of which, the amountrequest evidence
equivalent to cancellation and examine
fee-related expenses
133.7 billion yen.

(v) Reporting theresult of the ex-post
examination
Ineligible
payments
502 cases(i) In order to confirm
that the pre-examination
was appropriately
conducted, instruct theimplementation of the
ex-post examination.

Reservation
List(3) Payment
4.05 million cases
132.1 billion yen

Ex-postexamination

Reservation
List(ii) Request
submission ofevidence(iv) Examination
Reservation
Records, etc.

Only 0.15% of the 4.05 million
cases of reservation

Create(1) Application

Scope: 6,086 cases

・The Board examined whether the details of reservation lists
match reservation records, etc., and found that cancellation feerelated expenses of 29.57 million yen were paid for 865 caseseven though the actual cancellation date in reservation
records, etc., did not meet the payment requirements, suchas not falling under the eligible period.
・Cancellation fee-related expenses were paid even though thedetails of reservation lists did not meet the payment
requirements, etc.

(Unit: cases, thousand yen)
Keeping a trail

Reservation
Records, etc.
Allocation
Tourism-related
business
operators(iii) Submission

Audit Results

Hotels,Transportationcompanies
etc.

Situation

Cases

AmountReservation date and/or
cancellation date, etc., is outside
the eligible period

8,632

167,940

The contents of travel products,
etc., are not eligible

359

11,840Duplicate applications for thesame travel products

113

8,030

9,104

187,820

Total

・JTA did not provide the Travel office with instructions
such as expanding the scope of the ex-post examination.

・Even the check items stipulated in the manual for examiners
were not sufficiently examined.

Demand for Measures
・ With regard to reservations for which the details of reservation records, etc., did not meet the payment requirements, JTA should instruct the Travel office tocalculate cancellation fee-related expense, etc., request travel agencies to return overpayments, and return the equivalent contracting costs to the nationaltreasury after.
・ With regard to reservations for which the details of reservation lists did not meet the payment requirements, JTA should instruct the Travel office to take the sameaction above, except for cases where it will be confirmed that reservations meets the payment requirements based on reservation records, etc.
・ JTA should instruct the Travel office to consider methods for an efficient examination and other measures , and then ex-post examine whether
reservations are eligible by expanding the scope of examination based on the results of both the Travel office’s ex-post examination and the Board’s audit, andtake the same action above for reservations that will be found ineligible.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

146. Method of calculating the amount of payments for employment adjustment
subsidies (Presentation of Opinions）

Ministry of Health, Labour and Welfare,
13 Labour Bureaus
1,693.48 million yen (Background amount)

Outline of
employment
adjustment
subsidies,
etc.

Employment adjustment subsidies are provided for the amount equivalent to leave allowance paid by employers who provide leave ofabsence to employees covered by the employment insurance in cases where business activities are forced to shrink due to economic
fluctuations and other factors.
The amount of employment adjustment subsidies is calculated by multiplying the amount obtained by multiplying the average wage basedon the total wage of the previous fiscal year by the payment rate for leave allowance and the grant rate, or the maximum daily amount,whichever is lower, by the total number of man-days of leave, etc.
From April 2020, the Ministry of Health, Labour and Welfare (MHLW) has increased the grant rate and the maximum daily amountunder special treatments for COVID-19.
Because some cases arose after the aforementioned increase, where the amount of employment adjustment subsidies paid by thenational government exceeded the amount of leave allowance actually paid by some employers, MHLW has introduced from September
2021 onward the actual cost method of calculating the amount equivalent to leave allowance based on the amount of leave allowanceactually paid by employers when employees receive commission payment are included in employees who will be provided with leave ofabsence.
FY2021 Audit Report: “Provision of employment adjustment subsidies to respond to unemployment due to the influence of the COVID-19
pandemic”: It is described that the calculation method for the employment adjustment subsidy should be improved to prevent theemployment adjustment subsidy amount from exceeding the amount paid for leave allowances as far as possible.

Audit
Results

The Board audited employment adjustment subsidies provided to employers who only employ workers not receiving commission
payment, and examined whether there are any excess amounts (the amount by which the subsidy payment exceeds the amountactually paid for leave allowance).
=> The cumulative total of excess amounts is a total of 1,693.48 million yen (for 25 employers, from 2020 to 2022).
In calculating the amount of employment adjustment subsidies, the scope of wages, etc., subject to calculation of the payment rate
for leave allowance is not taken into account. Because of this, even though some employers set the ratio of leave of allowance topart of wages, etc., as the payment rate for leave allowance, the amount of employment adjustment subsidies is calculated bymultiplying this payment rate by all wages, etc.
For this reason, part of wages, etc., that is not expected to be covered by employment adjustment subsidies is subsidized andexcess amounts arise due to an increase in the grant rate and the maximum daily amount under special treatments for COVID-19.

Presentationof Opinions

MHLW should establish a reasonable calculation method to minimize excess amounts by considering the scope of wages ,etc., for calculating the amount of employment adjustment subsidies in order to ensure that employment adjustment subsidies
are provided in line with the purpose of the subsidies, while giving consideration to reducing the burden of employers' application
for payment and ensuring the swiftness of payment procedures.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

15

Ministry of Health, Labour and Welfare,

6. Method of calculating the amount of payments for employment adjustment
13 Labour Bureaus
1,693.48 million yen (Background amount)subsidies (Presentation of Opinions)
Outline of employment adjustment subsidies, etc.
・ Main factors for the excess amounts

・Subsidize the amount equivalent to leave allowance paid by employers(Method of calculating the amount of leave allowance)

・Amount of subsidies = (1) or (2), whichever is lower x Total number ofman-days of leave, etc.

Subject the calculation of thepayment rate for leave allowance(1) Average wage per person per day x Payment rate for leave allowance x
Grant rate
Calculated based on the total wage including both fixed salaries
and bonuses, etc.

Fixed salaries such as"basic salaries and family
allowance”

Payment rate stipulated in agreements concluded
with labour unions and other related organizations.

Bonuses and overtime× 100％
allowance are notincluded
The scope of wages, etc.,
subject to the calculation(Method of calculating the amount of employment of the payment rate foradjustment subsidies)leave allowance is nottaken into account.

(2) Maximum daily amount set by the Ministry of Health, Labour and Welfare(MHLW)

Audit Results

Subject to the calculation of the payment rate

・ The Board examined whether or not there were any excess amount⇒The cumulative total of excess amounts is 1,693.48 million yen(25 employers; from FY2020 to FY2022)

Fixed salaries such as"basic salaries and family
allowance”

Bonuses and overtime
allowance are
× 100％ × Grant rate
included(Average wage per person per day) (Payment rate for the Leave allowance)

Excess amount:the payment amount of subsidy exceeds the amount paid for the leave allowance(Employment
adjustment
subsidies)
LabourBureauExcess amountPayment
amount of
the subsidy(Leave allowance)

Employer

EmployerAmountpaid

Workers

・ Audit Results
Part of wages, etc., that is not expected to be covered by employment adjustment
subsidies is subsidized and excess amounts arise due to an increase in the
grant rate and the maximum daily amount under special treatments for COVID-19.

Presentation of Opinions
MHLW should establish a reasonable calculation method to minimize excess amounts by considering the scope of wages, etc., for calculating theamount of employment adjustment subsidies in order to ensure that employment adjustment subsidies are provided in line with the purpose of thesubsidies, while giving consideration to reducing the burden of employers' application for payment and ensuring the swiftness of payment procedures.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

16

7. Excessive payment of subsidies for the project of securing hospital beds
(Improprieties)

Ministry of Health, Labour and Welfare
5,591.8 million yen (Improper amount)

Through prefectures, the Ministry of Health, Labour and Welfare (MHLW) provides subsidies for the project of securing hospitalbeds to medical institutions that have secured hospital beds for accepting patients infected with COVID-19, etc.

Outline of
the Project

Hospital beds eligible for the project of securing hospital beds are:(1) Hospital beds that are unoccupied out of hospital beds (secured beds) which are secured for hospitalization of patients
infected with COVID-19, etc.
⇒ If a patient is hospitalized and the bed is not unoccupied, the bed is not eligible for the project.
(Since such a bed is eligible for payment of medical fees such as hospital charges, etc.)(2) Hospital beds suspended to accept patients infected with COVID-19, etc. (suspended beds)
The upper limit amount of the fee for securing a bed per day is set with respect to each type of medical institutions and hospital
bed classification (for example, secured hospital beds: ICU, HCU, and others)
The amount of subsidies is calculated by multiplying the upper limit amount of the fee for securing a bed per day by the total
number of beds that were secured or suspended to accept patients infected with COVID-19, etc.
Prefectures examine the details of the project performance reports, etc., submitted by medical institutions and submit them to MHLW.
The Board audited 13 prefectures and 106 medical institutions (entities) that received subsidies through the prefectures in FY2020.

Audit
Results

Subsidies were excessively provided because the number of beds during the period of patients’ hospitalization, which are noteligible for subsidies, was included in the total number of beds.
(32 medical institutions in 9 prefectures: 2,408.66 million yen)
Subsidies were excessively provided because higher fees for securing a bed per day (for HCU bed) in the hospital bed classification
were mistakenly applied.
(4 medical institutions in 3 prefectures: 3,100.52 million yen)

CausesMedical institutions,(1) did not sufficiently understand the system.
(2) did not sufficiently confirm the total number of beds eligible for the project of securing hospital beds.
Prefectures did not sufficiently examine the project performance reports, etc., submitted by medical institutions.
MHLW did not sufficiently provide guidance to prefectures.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

17

7. Excessive payment of subsidies for the project of securing hospital beds
(Improprieties)
Outline of the projects of securing hospital beds

The upper limit amount of the fee for securing a bed per day is set withrespect to each type of medical institutions and hospital bed classification.

(1) Hospital beds that are unoccupied out of hospital beds which are
secured for hospitalization of patients infected with COVID-19, etc.
(Secured beds)(2) Hospital beds suspended due to acceptance of patients
infected with COVID-19, etc. (Suspended beds)

Occupied Bed

Secured bed

Suspended bed

Suspended bed

Note: Medical institutions are categorized into four types, such as priority medical
institutions. The secured bed has three categories and the suspended bed has
four categories in the hospital bed classification.

(Unit: yen per bed, per day)
（単位：円／日・床）Priority medical
institutions

Since secured beds
occupied by patients duringhospitalization are eligible for
medical treatment fees suchas hospital charges, they are
not eligible for the project of
securing hospital beds.

Bed classification
病床区分

Fees for securing hospital beds

Audit Results

重点医療機関Advancedtreatment
General hospitals
特定機能病院等
一般病院
hospitals

ICU病床
ICU beds

436,000円
436,000
yen

301,000円
301,000
yen

Secured HCU病床
確保病床
HCU beds

211,000円
211,000yen

211,000円
211,000
yen

74,000円
74,000yen

71,000円
71,000yen

beds

Source: Provided by the Ministry of Health, Labour and Welfare
Medical fees

5,509.18 million yen (Improper amount)(Upper limit amount of the fee for securing beds)(Hospital beds eligible for the project of securing hospital bed)(for COVID-19 patients) (for COVID-19 patients)

Ministry of Health, Labour and Welfare

Other hospital

その他の病床beds
OthersFees of wrong hospital bed categories were applied.
(4 medical institutions in 3 prefectures: 3,100.52 million yen)

The total number of hospital beds was excessively reported.
(32 medical institutions in 9 prefectures: 2,408.66 million yen)
The fee for securing HCU beds (211,000 yen/day) was applied to beds
(Example)
The number of beds occupied by patients during hospitalization (thethat were eligible for the fee for securing other beds (71,000 yen/day).
number of beds on the day of discharge), which are not eligible for the
project of securing hospital beds was included in the total number of beds.
(Example)
For hospital beds classified as HCU beds, the Board examined the status of theNot eligible
placement of nurses, etc., and found that some of the beds did not meet the
6月19日
6月20日
～
6月27日
June
19
June
20
June
27
facility standards for the HCU.
Hospitalized

入院

Because a bed on the day of discharge is eligible for medical
treatment fees such as hospital charges, etc., it is not eligible for the
project of securing hospital beds.
Copyright©2022 Board of Audit of Japan

Discharged

退院

Included in the total
number of hospital beds

・ It was reported that the number of HCU beds was 50.
⇒ In fact, only 16 beds meet the facility standards.
・ It was reported that the number of HCU beds was100.
⇒ In fact, only 28 beds meet the facility standards.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

18

8. Calculation of the consignment expenses for the Go To Eat Campaign(Improprieties)

Outline oftheconsignment
contracts

Ministry of Agriculture, Forestry and Fisheries
7 million yen (Improper amount)

This is a commissioned project in the Go To Eat campaign, which aims to restore the flow of consumers who use eating out that has
been lost due to the spread of COVID-19.
The Ministry of Agriculture, Forestry and Fisheries (MAFF) entrusted the implementation of the project of meal voucher issuance of
issuing, selling and collecting meal vouchers and transferring money to restaurants after the collection in Saga Prefecture, to SAGA Ad
Center Co., Ltd. (Saga Office).
(The amount paid for the consignment expenses: 493.14 million yen(including personnel expenses: 33.57 million yen (for a total of 31 employees including 6 managers)) ,Implementation period: August 2020 to January 2022)
In calculating the consignment expenses, the "Optimization of the calculation of personnel expenses for commissioned projects"(Notification of optimization) set in the contract need to be followed.
Out of the consignment expenses, personnel expenses for managers who are not subject to overtime charge should be calculated by thefollowing formula in the notification of optimization, if their overtime work hours for commissioned projects are included in the number of
direct working hours.
Personnel expenses for managers = Hourly rate × Number of direct working hours (including overtime work hours for commissioned projects)

Audit
Results

Overtime work hours
Hourly rate=Total annual payment, etc./ (Total annual regular working hours + (pertaining to commissioned projects and other activities, etc. ))Total actual working hours per year
In calculating personnel expenses for managers, the Saga Office included overtime work hours for the project in the number of direct working
hours. However, the hourly rate was calculated by not dividing the total annual payment, etc., by the total actual working hours per year
including overtime work hours, but dividing the total annual payment, etc., by the total annual regular working hours.
➣Thus, the personnel expenses for managers were not calculated properly, and the consignment expenses were 7 million yen higher.

CausesThe Saga Office did not fully understand the method of calculating personnel expenses for commissioned projects.
MAFF did not sufficiently examine the project performance report, etc.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

19

8. Calculation of the consignment expenses for the Go To Eat Campaign(Improprieties)

Ministry of Agriculture, Forestry and Fisheries
7 million yen (Improper amount)

Outline of the consignment contract
Ministry of Agriculture,
Forestry and Fisheries (MAFF)

Consignment contracts

SAGA Ad Center Co., Ltd.
(Saga Office)Details of the contract: Issuing, selling, collecting meal vouchers, and transferring money to restaurant after the collectionin Saga Prefecture
Consignment expenses: 493.14 million yen: Personnel expenses (33.57 million yen (for all 31 workers)),other project expenses, etc.

Audit Results<Notification of optimization> Regarding personnel expenses for managers who are not subject to overtime charge, when their overtime
work hours for commissioned projects are included in the number of direct working hours, the following calculation shall be made.
Personnel
expenses

Number of direct working hours
Hourly rate

Hourly rate(including overtime work hours for commissioned projects)

Total annual payment,
etc.

Total annual
regular working
hours

Overtime work hours(pertaining to commissioned projects
and other activities)

Total actual working hours per year

In calculating the personnel expenses for six managers, the Saga Office included overtime working hours for the contract in the number of
direct working hours. However, the hourly rate was calculated by not dividing the total annual payment, etc., by the total actual working
hours per year including overtime work hours, but dividing the total annual payment, etc., by the total annual regular working hours.
As a result, the personnel expenses for managers were not calculated properly, and the consignment expenses were 7 million yen higher.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

20

9. Calculation of the additional units for assignment of child guidance workers, etc.,
at outpatient support offices for children with disabilities (Demand for Measures)

Ministry of Health, Labour and Welfare
70.19 million yen (Improper amount)

Outline oftheAdditional
Units for
Assignmentof Child
Guidance
Workers,etc.

For facilities that provide child development support, after-school day services, etc., to children with disabilities(outpatient support offices for children with disabilities), the operators receive outpatient benefits for children withdisabilities from municipalities for expenses incurred for the support.
The national government bears one-half of the outpatient benefits paid by municipalities.
In order to strengthen support for children with disabilities who need constant supervision and guidance for theirguardians on support methods, when one or more child guidance workers, etc., are additionally assigned to facilities
where the prescribed number of employees are assigned, the prescribed number of units can be added to the number ofunits of basic remuneration for calculation of outpatient benefits.
(Additional units for assignment of child guidance workers, etc.)
A child development support management supervisor (supervisor) is required to be assigned as one of the prescribed
number of employees to facilities, and it is not allowed to calculate outpatient benefits for the additional units for
assignment of child guidance workers, etc., during the period when the supervisor is not assigned.

Audit
Results

At 119 facilities of 96 business providers in 9 prefectures and 13 cities and wards, the additional units for
assignment of child guidance workers, etc., were added to calculate outpatient benefits, even though the period thatthe supervisor is not assigned.
The total amount of outpatient benefits for the additional units for assignment of child guidance workers, etc., wasoverpaid by 140.38 million yen from FY2019 to FY2021, and the national government did not need to bear theequivalent amount of 70.19 million yen.
Ministry of Health, Labour and Welfare (MHLW) did not fully inform prefectures, etc., and operators of therequirements for the additional units for assignment of child guidance workers, etc.
Many prefectures, etc., and operators did not fully understand the requirements for the additional units
for assignment of child guidance workers, etc.

Demand for
Measures

MHLW, through prefectures, etc., should have those operators who have not yet carried out repayment
procedures, out of the 96 operators of the 119 facilities for which outpatient benefits for the additional units
for assignment of child guidance workers, etc., were overpaid, calculate the proper amount of outpatient
benefits and carry out repayment procedures for the overpaid amount.
MHLW should thoroughly inform prefectures, etc., and operators of the requirements for the additional
units for assignment of child guidance workers, etc., and also inform them that they should check theassignment of supervisors at facilities when examining the status of facility employees in calculating
outpatient benefits for the additional units for assignment of child guidance workers, etc.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

21

9. Calculation of the additional units for assignment of child guidance workers, etc.,
at outpatient support offices for children with disabilities (Demand for Measures)
Outline of the additional units for assignment of child guidance workers, etc.
For facilities that provide child development support, after-school day services,
etc., for children with disabilities, the operators receive outpatient benefits forchildren with disabilities from municipalities for expenses incurred for the
support.

When one or more child guidance workers, etc., are additionally assigned tofacilities where the prescribed number of employees are assigned, theprescribed number of units can be added to the number of units of basic
remuneration for calculation of outpatient benefits (Additional units for
assignment of child guidance workers, etc.).
However, it is not allowed to calculate outpatient benefits for the additional
units for assignment of child guidance workers, etc., for the period when a childdevelopment support management supervisor (supervisor) is not assigned.

Demand for Measures

70.19 million yen (Improper amount)

For 119 facilities of 96 operators

The outpatient benefits are calculated by multiplying the prescribed number ofunits for each type of support by the prescribed unit price, and the government
bears the burden of one-half of the outpatient benefits.

When physical therapists,
occupational therapists, speechlanguage-hearing therapists, nurseryteachers, child guidance workers,
etc., are additionally assigned, theadditional units can be added.

Ministry of Health, Labour and Welfare

A supervisor in charge ofconducting interviews withguardians and children, preparing
individual support plans, andobjectively evaluating support isalso assigned.

Audit Results

Even though the supervisor was not assigned, theprescribed number of units was added as additional
units for assignment of child guidance workers, etc.
The total amount of outpatient benefits for the
additional units for assignment of child guidance
workers, etc., was overpaid by 140.38 million yen(from FY 2019 to FY2021).
The national government did not need to bear
the equivalent amount of 70.19 million yen.
Ministry of Health, Labour and Welfare (MHLW) did notinform prefectures, etc., and operators of the requirements
for the additional units for assignment of child guidance
workers, etc.
Many prefectures, etc., and operators did not
fully understand the requirements for the
additional units for assignment of child guidance
workers, etc.
The prefectural governments shall provide guidance,
etc., to operators on the claim for expenses related to
outpatient benefits.

MHLW should have those operators who have not yet carried out repayment procedures carry out the procedures for the overpaid outpatient
benefits.
MHLW should thoroughly inform prefectures, etc., and operators of the requirements for the additional units for assignment of child guidance
workers, etc., and inform them that they should check the assignment of supervisors at facilities in calculating outpatient benefits for the
additional units for assignment of child guidance workers, etc.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

2210. Earthquake resistance of emergency equipment, etc., to be installed
in social welfare facilities (Demand for Measures)

Outline offacility
development
subsidies

Audit
Results

Demand for
Measures

Ministry of Health, Labour and Welfare
384.26 million yen (Background amount)

The Ministry of Health, Labor and Welfare (MHLW) provides subsidies for development of facilities for community care and welfare
space development, etc., or subsidies for facility development expenses for social welfare facilities (facility development subsidies)to prefectures or municipalities (prefectures, etc.) who subsidize the installation of emergency private electric generationequipment and water supply equipment such as water tanks (emergency equipment, etc.) carried out by social welfare
corporations, etc. (entities), at social welfare facilities, etc. (service facilities).
MHLW explains that as emergency equipment, etc., aim to maintain the functions of service facilities and to ensure the safety ofresidents, etc., even in the event of power outages or water interruptions due to disasters such as earthquakes,
prefectures provide facility development subsidies on the premise that necessary measures to ensure earthquake
resistance, etc., have been taken for emergency equipment, etc., to be installed.
On the other hand, the guidelines for the facility development subsidies, etc., by MHLW do not indicate the need to ensure
earthquake resistance of emergency equipment, etc.
MLHW did not have its regional bureaus of health and welfare examine whether earthquake resistance of emergency
equipment, etc., was ensured, and 15 prefectures and 69 cities, wards and towns did not examine whether earthquake
resistance was ensured.
The 45 entities that received the facility development subsidies from the prefectures above did not receive any materials fromthe contractors that indicated that the earthquake resistance of emergency equipment, etc., installed at 55 service
facilities had been ensured.
Since the Guidelines for Seismic Design and Construction of Building Equipment (seismic design guidelines) indicate that, inprinciple, equipment must be fixed to the foundation of reinforced concrete, etc., with anchor bolts to prevent it from falling overin the event of earthquakes, the Board inspected the installation of emergency equipment, etc., in the 55 facilities above andfound that:the emergency equipment, etc., was not fixed to reinforced concrete foundation by anchor bolts, etc., and in light of theseismic design guidelines, earthquake resistant measures were not implemented. (7 facilities)
seismic design calculations performed based on the seismic design guidelines for the anchor bolts used to fix the emergency
equipment, etc., revealed that the anchor bolts did not fall within the safe range. (2 facilities)
although emergency equipment, etc., was fixed with anchor bolts, it was not possible to determine whether earthquake
resistance was ensured because the strength of the anchor bolts was unknown. (46 facilities)
If required earthquake resistance is not actually ensured, emergency equipment, etc., may not function effectively in theevent of earthquakes.
MHLW should inform prefectures, etc., of the necessity to ensure earthquake resistance of emergency equipment, etc.,
installed by entities with the facility development subsidies, to prevent it from falling in the event of earthquakes.
MHLW should indicate checklists, etc., that include items related to ensuring earthquake resistance of emergency equipment, etc.,
to prefectures, etc., so that regional bureaus of health and welfare can examine earthquake resistance based on thedetails of examinations conducted by prefectures, etc.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

2310. Earthquake resistance of emergency equipment, etc., to beinstalled in social welfare facilities (Demand for Measures)
Outline of the facility development subsidies
・ The Ministry of Health, Labor and Welfare (MHLW)
provides the facility development subsidies toprefectures, etc., who subsidize the installation of
emergency equipment, etc. carried out by entities atsocial welfare facilities, etc.
・ Emergency equipment, etc., aims to maintain thefunctions of service facilities and to ensure the safetyof residents, etc., who need medical care and support
in their daily lives even in the event of power outages
or water interruptions due to disasters such as
earthquakes.

Ministry of Health, Labour and Welfare
384.26 million yen (Background amount)

Audit Results
・MHLW did not have its regional bureaus of health and welfare examine
whether earthquake resistance of emergency equipment, etc., wasensured, and 15 prefectures and 69 cities, wards and towns did not
examine whether earthquake resistance was ensured.

×・The 45 entities that received the facility development subsidies fromthe prefectures above did not receive any materials from thecontractors that indicated that the earthquake resistance of emergency
equipment, etc., installed at 55 service facilities had been ensured.

×

Since the Guidelines for Seismic Design and Construction Building Equipment (seismic
design guidelines) indicate that, in principle, equipment must be fixed to thefoundation of reinforced concrete, etc., with anchor bolts, the Board inspected
the installation of emergency equipment, etc., at the 55 business facilities above.

・ MHLW explains that, in light of the objective above,
prefectures provide the facility development subsidies
on the premise that necessary measures to ensure
earthquake resistance, etc., have been taken for
emergency equipment, etc., to be installed.
・ MHLW's guidelines for the facility development
subsidies do not indicate the need to ensure
earthquake resistance of emergency equipment, etc.,
to be installed with the facility development subsidies.

・ The emergency equipment, etc., was not fixed to reinforced concrete foundation byanchor bolts, etc., and in light of the seismic design guidelines, earthquake resistantmeasures were not implemented. (7 facilities)
・ Seismic design calculations performed based on the seismic design guidelines for theanchor bolts used to fix emergency equipment, etc., revealed that the anchor bolts did
no fall within the safe range. (2 facilities)
・ Although emergency equipment, etc., was fixed with anchor bolts, it was not possible
to determine whether earthquake resistance was ensured because the strength of theanchor bolts was unknown. (46 facilities)⇒ If required earthquake resistance is not actually ensured, emergency
equipment, etc., may not function effectively in the event of earthquakes.

Demand for Measures
・MHLW should inform prefectures, etc., of the necessity to ensure earthquake resistance of emergency equipment, etc.
・MHLW should enable its regional bureaus of health and welfare to examine earthquake resistance based on the details of examinations conducted by
prefectures, etc.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

2411. Inappropriate design of the snow fences (Improprieties)

Ministry of Land, Infrastructure, Transport and Tourism
2.5 million yen (Improper amount)

Outline of
the Project

Iwate Prefecture installed a snow fence (entire length: 68.0 m) at the Hanamaki Seinan road station in Hanamaki City
using a social infrastructure comprehensive subsidy project (road) in order to protect visitors to the road station fromblizzards that occur during the winter season.
The installation of the snow fence that is commonly necessary for facility management by the prefectural and municipal
governments was carried out jointly by the two parties after concluding an agreement.
The design and construction of the snow fence were carried out by the city. After confirming the design and construction,
the prefectural government paid the construction costs to the city based on the burden ratio stipulated in the agreement.
In designing the snow fence, the city received design calculations, etc., based on the Highway Snowstorm
Countermeasure Manual (manual) from the manufacturer. Based on the calculations, the city determined that the snow
fence would be structurally safe from the wind load that the 3.7 m height of the snow fence net installed between posts
built at 4.0 m intervals will sustain if a concrete foundation of 0.5m width and 0.9m or 1.0m height (cross-section) were
to be built over the entire length of the snow fence.
The city prepared drawings such as cross-sectional drawings that are viewed from the side of the snow fence in the
direction of extension, longitudinal drawings that are viewed from the front at right angles from the cross-sectional
drawings, and construction quantity summaries that show the shape, dimensions, design quantities, etc., of materials
related to the construction work, etc. (collectively, designs), and ordered the construction work.

Audit
Results

In the preparation of the construction quantity summaries, the city was supposed to build a precast concrete
foundation with dimensions of 0.5 m length and width and 0.9 m or 1.0 m height only at the base of each of the 18
posts, which is different from the drawings since the city mistook the cross-sectional drawings for the longitudinalones, etc.; the construction work was performed based on the erroneous construction quantity summaries.
Even though the construction work of the fence foundation was performed based on the erroneous construction
quantity summaries that differed from the drawings, the prefectural government did not fully examine these
documents and paid the construction cost to the city, determining that the construction was completed in accordancewith the design documents.
The design calculation performed based on the manual by using the shape and dimensions of the actually built pre-cast
concrete foundation revealed that the factor of safety from falling was 0.200 for a 0.9-meter-height foundation and
0.248 for a 1.0-meter-height foundation, both of which were well below the safety factor of 1.2 that is considered
to be safe by design calculations.

CausesApart from the city’s insufficient check in preparing the design documents, the prefectural government did not sufficiently
examine the design documents prepared by the city and the construction carried out by the city.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

25

11. Inappropriate design of the snow fences (Improprieties)

Ministry of Land, Infrastructure, Transport and Tourism
2.5 million yen (Improper amount)

Outline of the project・ Iwate Prefecture installed a snow fence (entire length: 68.0m) at the Hanamaki Seinan road station in Hanamaki City using a social infrastructure
comprehensive subsidy project in order to protect visitors to the road station from blizzards that occur during the winter season.
・ A 3.7-meter-high snow net was installed between posts built at 4.0-meter intervals.
・ The snow fence would be structurally safe from the wind load that the snow net will sustain with a concrete foundation of 0.5 m width and 0.9 m or 1.0 m
height built over the entire length of the snow fence.
・ The city prepared drawings, such as cross-sectional drawings that are viewed from the side of the snow fence in the direction of extension, longitudinal drawings
that are viewed from the front at right angles from the cross-sectional drawings, and construction quantity summaries, etc., and ordered the construction.

Audit Results
The city mistook the cross-sectional drawings for the longitudinal ones in preparing the construction quantity summaries and built 18 precast concrete
foundations of 0.5 m length and width and 0.9 m or 1.0 m height only at the base of each of the 18 posts.

The snow fence built on the erroneous
construction quantity summaries

The snow fence basedon the drawings, etc.
Post

Foundation
made of precast
concrete

Mistook the cross-sectional
drawings for the longitudinal ones

Snow fence
net

3.7 m
Height
0.9 m to 1.0 m

Crosssectional
drawing

Longitudinaldrawing
Length0.5 m

Build a concrete foundation over theentire length of the snow fence

Height
0.9 m or 1.0 m
Crosssectional
drawing

Length0.5 m
Crosssectional
drawing

Width
0.5 m

Although the foundation should
be built over the entire length of
the snow fence, it is built only atthe base of each of the posts.

The prefectural government paid the construction cost to the city, determining that the construction was completed in accordance with the design documents,
because it did not fully examine the construction even though the construction work of the fence foundation was performed based on erroneous
construction quantity summaries, different from the drawings.
The design calculation performed using the shape, etc., of the actually built foundation revealed that the factor of safety from falling was significantly
below the value that is considered to be safe by the design calculation.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

26

12. Implementation status of information inquiries through the information
provision network system in public assistance work (Demand for Measures)
Outline of
informationinquiries
through theinformation
provision
networksystem inpublicassistance
work

Audit
Results

Ministry of Health, Labour and Welfare
143.79 million yen (Improper amount)

The government has modified systems for the introduction of the Social Security and Tax Number System(My number system).
➢ Government ministry and agencies, through the information providing network system, can exchange
information necessary for administrative procedures each other (information linkage). In the area of
public assistance, prefectures and municipalities (entities) can request information on pension benefits,etc., held by other organizations (information inquiry).
The Ministry of Health, Labour and Welfare (MHLW) provides subsidies to entities for expenses necessary for therenovation of public assistance systems, etc., for the purpose of connecting public assistance systems and theinformation provision network system.
➢ The Board audited subsidies provided to 175 entities in 32 prefectures from FY 2014 to FY2020(a total of 1,239.47 million yen equivalent to the national subsidies).

It was found that 35 entities in 23 prefectures did not conduct any information inquiries, although the entities
renovated their public assistance systems, etc., using subsidies.
➢ A total of 143.79 million yen equivalent to the national subsidies for 35 entities in 23 prefectures
MHLW did not understand the details of the reasons why information linkage had not been used and did notprovide specific support to entities, such as identifying cases that could be used as references for utilization.
The Board examined the state of support provided by prefectures to entities that did not conduct any informationinquiries at all and found that only one prefecture provided support to one entity.

Demand for
MeasuresMHLW should improve the details of the notices, etc., that indicate the necessity of checking and reviewing
business flows related to the implementation of information inquiries and the business benefits from theimplementation of information inquiries, etc., in an easy-to-understand manner and inform entities of them.
To inform prefectures, etc., that they should understand the status of information inquiries conducted byentities and provide support to entities, such as training in information inquiries.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

27

12. Implementation status of information inquiries through the information
provision network system in public assistance work (Demand for Measures)
Conceptual diagram of information inquiries at entities
A CityInformation System,
ServerInformation provision
network system

Ministry of Health, Labour and Welfare
143.79 million yen (Improper amount)

Audit Results

B CityInformation System,
Server(Information provision
NWS)

Implementation status of information inquiries

138 entities in 32 prefectures encouraged their employees to use
information inquiries by preparing administrative manuals that arecompatible with the public assistance systems of the entities, andconducted information inquiries through information provision NWS.
On the other hand

Informationinquiry

A CityPublic Assistance System

Subsidies*

Information
provision

B CityPublic Assistance System

35 entities in 23 prefectures did not conduct any informationinquiries, although the entities renovated their public assistancesystems, etc., using subsidies.
(Reason: They did not have a good understanding of the procedures
and methods for information inquiries
and of the details of the notices issued by MHLW, etc.)

A total of 143.79 million yen
equivalent to the national subsidies

Subsidies*

Support for a smooth implementation of information inquiries, etc.

* The Board audited subsidies provided to 175 entities in 32 prefecturesfrom FY2014 to FY2020(A total of 1,239.47 million yen equivalent to the national subsidies).

MHLW did not understand the details of the reasons why information
linkage had not been used and did not provide specific support toentities, such as identifying cases that could be used as references forutilization.

□Reduction in operation hours and personnel by conducting
information inquiries

The Board examined the state of support provided by prefectures toentities that did not conduct any information inquiries at all, and foundthat only one prefecture provided support to one entity.

Demand for Measures
MHLW should improve the details of the notices, etc., that indicate the necessity of checking and reviewing business flows related to theimplementation of information inquiries and the business benefits from the implementation of information inquiries, etc., in an easy-to-understandmanner and inform entities of them.
MHLW should inform prefectures, etc., that they should understand the status of information inquiries conducted by entities and provide
support to entities, such as training in information inquiries.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

28

13.Title
Usage(Measuresof the DR system(Measures Taken)
Taken)

Ministries andorganizations
Improper amount
43.06 million yen (Improper amount)(Background amount)

Okinawa General Bureau, Cabinet Office

Outline of
the DRsystemThe Okinawa General Bureau (General Bureau) developed the DR system to be used in the event that aconnection to the Okinawa General Bureau's core LAN system is disabled due to disasters (equivalent paid
amount: 43.06 million yen).
The DR system has three functions to execute operations that must be carried out after disasters(emergency priority work) in individual departments within the General Bureau (excluding the Economy,
Trade and Industry Department, which has its own backup, etc.).
1) Function to store electronic data necessary for the emergency priority work on file servers
2) Function to access the file servers via a mobile router
3) Function to communicate with other employees by the DR system email

Audit
Results

The General Bureau did not check the usage status of file servers, and the Board found that individual
departments above stored only part or none of the electronic data necessary for the emergency priority
work, and that stored electronic data were not kept up-to-date.
➣ The servers were not ready for use for the emergency priority work at the time of disasters.
Mobile routers were collectively stored at the General Affairs Department, and email accounts for the
DR system mail were not assigned.
➣ The routers and the DR system mail were not ready for use for the emergency priority work at
the time of disasters.

Measures
Taken

The General Bureau took the following measures:
It informed each department that electronic data necessary for the emergency priority work should be
stored on file servers, and that stored electronic data should be kept up-to-date by a regular check.
It established a regular check by the General Affairs Department to see if each department stores
electronic data necessary for the emergency priority work on file servers.
It distributed mobile routers in advance and assigned mail accounts for the DR system so that eachdepartment could use them in the event of disasters.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

29

Okinawa General Bureau, Cabinet Office

13. Usage of the DR system (Measures Taken)

43.06 million yen (Improper amount)

Outline of the DR system

Audit Results

・ The DR system developed as a backup for the core LAN system.
(Equivalent paid amount: 43.06 million yen)

1) Only part or none of the electronic data necessary for the
emergency priority work was stored, and the stored electronic
data were not kept up-to-date.

・ Has three functions to execute the operations that must be
carried out after disasters (emergency priority work)2) Mobile routers were collectively stored at the General Affairs
Department.

1) Function to store electronic data necessary for the emergency
priority work on file servers
2) Function to access the file servers via a mobile router

The DR system was not ready for use for the emergency
priority work at the time of disasters.

3) Function to communicate with other employeesby the DR system email<Actual situation><Image of use in the event of disasters>
File server3) Email accounts for the DR system were not assigned.

File server

Mobile Router

3)

Email

2) Access1) Data storage・ Not saved
Collectively stored at
・ Not up to date the General Affairs Department

Email2) Access3)1) Data storage

Mobile RouterNo email account assigned

Measures Taken
General Bureau informed each department that electronic data necessary for the emergency priority work should be stored on fileservers and that the stored electronic data should be kept up-to-date by a regular check. It further established a regular check by theGeneral Affairs Department to see if each department stores electronic data necessary for the emergency priority work on file servers.
It distributed mobile routers in advance and assigned mail accounts for the DR system mail so that each department could use
them in the event of disasters.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

30

14. Implementation status of measures based on the TPP-related
policy framework in the agricultural, forestry and fisheries sector(Special Report on audit requested by the Diet)

Cabinet Secretariat,
Ministry of Agriculture, Forestry and Fisheries, etc.

Details of
the Special
Report on
audit
requestedby theDiet, etc.

The Board was requested by the Diet on June 15, 2020 to audit the following matters concerning measures basedon the TPP-related policy framework in the agricultural, forestry and fisheries sectors:
1) Status of implementation of measures and budget execution2) Status of the effects of implementation of measures
Measures based on the TPP-related policy framework in the agriculture, forestry and fisheries sector are divided into thosefor the policies to strengthen structure (supporting ambitious efforts for management development by farmers, foresters
and fishermen with a business mindset) and those for the policies to stabilize management (dispelling concerns andanxieties of farmers and taking all possible measures to ensure management stability after the entry into force of the TPP).

Audit
Results

With regard to the status of budget execution, it was difficult to understand a full picture of the budget execution forthe policies to strengthen structure, and it was not possible to capture the execution amounts, etc., of the TPP-related
portion of the budget for the policies to stabilize management.
Regarding the implementation status of measures and the status of the effects of implementation of measures,・With regard to the policies to strengthen structure, it was found that there were projects that had not achieved thetargets, and measurement objects (individual agricultural, forestry and fisheries operators, regions, etc.) that had notachieved the targets.
・ With regard to the policies to stabilize management, it was found that the financial burden of the national government
would be expected to increase in the projects for wheat, dairy products and sweetener resource crops if production
costs did not reduce in the future. In addition, key performance indicators (KPIs) were not set for the policy objective of"preparing for stable management and stable supply," etc.

Findings

Ministry of Agriculture, Forestry and Fisheries (MAFF) should provide the public with information on the status of budget
execution for the policies to strengthen structure as well as information on the status of budget execution, including the TPPrelated portion, for the policies to stabilize management in a more easy-to-understand manner.
With regard to measures for the policies to strengthen structure, MAFF should promote efforts to generate more effectthrough the implementation of the measures by continuing to provide necessary guidance to farmers, forestry andfishermen, etc., who set targets for the projects whose targets were not achieved, in response to changes in thecircumstances, etc.
With regard to measures for the policies to stabilize management, MAFF should continue to promote reduction in
production costs and strive to reduce the amount of subsidies, etc., by making efforts to generate more effect frommeasures for the policies to strengthen structure, etc., and consider necessary measures to ensure a stable operation of thesystem; the Cabinet Secretariat and MAFF should appropriately evaluate whether the policy targets have been achieved, andcontinue to check and evaluate whether the policies are implemented effectively and efficiently to achieve the policy targets.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

－31

14. Implementation status of measures based on the TPP-related
policy framework in the agricultural, forestry and fisheries sector(Special Report on audit requested by the Diet)
Background of the Audit[Policy objective] Building strong agriculture, forestry and fisheries(Policies to strengthen structure)[Targets (KPIs) for the policy objective]
Achieve an export value of 5 trillion yen for agricultural, forestry
and fishery products and food by 2030
To realize
the policy

Promotion ofinternationallycompetitive
innovation in
production areas
Promotion of acomprehensive
project tostrengthen the
profitability oflivestock and dairy
farms
5 other items

Specific items to achieve the measures

Fostering business
farmers with abusiness mindset
who will lead thenext generation－

Outline of measures based on the TPP-related policy framework in the agriculture, forestry and fisheries sector(Policy structure)

Policies to strengthen structure

PolicyCabinet Secretariat,
Ministry of Agriculture, Forestry and Fisheries, etc.

Measures

Make key measures
into projects

Support the efforts necessary
to secure newcomers andfoster business farmers torealize a strong and sustainableproduction structure

Key measures
Introduction ofmachines/facilities topromote management
development of motivatedfarmers
Further enlargement offarm blocks andmultipurpose use of paddy
fields in the priority areas,etc., designated under the
farmland mid-level
management projectMeasures to stabilize management[Policy objective] Preparing for stable business and stable supply(Related to five important products)[Targets (KPIs) for the policy objective]:
No target was set.

PolicyProjects
Rice

Blocking the impact of
an increase incountries’ importquotas on rice on
supply and demandand prices of domestic
table rice

Support projects
for securingbusiness farmers
andstrengthening
management
Project for
agricultural andrural area
development
related to the TPP(Promote further
enlargement offarm blocks andmultipurpose useof paddy fields)

Wheat・Ensure a stable supplyof domestic wheat
・Respond to theelimination of tariffs
under the Japan-EU
EPA

and others

and others* An example of the policy structure (excerpt) of the policy of fostering business farmers with abusiness mindset who will lead the next generation is described to illustrate the relationship among
policies, measures and projects.

Beef and pork………
………………
Dairy
products

Measures and key
measures

Projects

Make key measures
into projects

Review the operation of
the government
stockpiled rice every
year and purchasedomestic riceequivalent to theamount imported under
the countries’ quota, as
the stockpiled rice
Continue to steadily
implement the Farming
Income Stabilization
Measures--------------

Substantially eliminate themarkup for wheat (rawmaterial for pasta) andlower it……………………
Sweetener resource crops………………

and others

Purchase domestic
rice equivalent tothe amountimported under
the countries’
quotas, as thegovernment
stockpiled rice
Farming Income
Stabilization
Measures
Substantiallyeliminate themarkup for wheat(raw material for
pasta) and lower it

and others*An example of the policy structure (excerpt) of the policies for rice and wheat is
described to illustrate the relationship among policies, measures and projects.

Findings

Findings

The Ministry of Agriculture, Forestry and Fisheries (MAFF) should continue to make efforts toachieve the target of an export value of 5 trillion yen for agricultural, forestry and fisheryproducts and food by 2030, by appropriately implementing measures for the policies to strengthen
structure and further promoting export efforts by agricultural, forestry and fishery businesses.

Copyright©2022 Board of Audit of JapanTo realize
the policy

The Cabinet Secretariat and MAFF should appropriately evaluate whether the policy
targets have been achieved, and continue to check and evaluate whether thepolicies are implemented effectively and efficiently to achieve the policy
targets.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

32

14. Implementation status of measures based on the TPP-related
policy framework in the agricultural, forestry and fisheries sector(Special Report on audit requested by the Diet)
Audit Results 1

Cabinet Secretariat,
Ministry of Agriculture, Forestry and Fisheries, etc.

－

The status of budget execution

The status of budget execution of the policies to strengthen structure
・ The budget amount exceeded 300 billion yen every fiscal year. The
total amount of the budget for the 6 fiscal years was 1,940.4 billion
yen (of which the budget for creating funds was 531.9 billion
yen (27.4% of the total)).

(100 million yen)

Fiscal year-end balance of the funds

Businessfarmers fund

Production
areas fundLivestockfund

Plywood
fund

Grant decisions
were not plannedfor 1.2 billion yenof the amount.

・ Expenditures spent per year over the fiscal years were between
197.6 billion yen and 306 billion yen. (1,553.7 billion yen in
total for the 6 fiscal years. The unused rate over the 6 fiscal years
was 5.8 %.)・ Budgets were secured by supplementary budgets, and the largepart was carried forward to the next fiscal year.

The estimatedamount for use
was overstated by
12.3 billion yen.

・ While three projects had a six-year execution rate of less than 50%,
budgets were largely executed in the other projects.
◎ It was difficult to get a full picture of the budget execution forthe policies to strengthen structure, because it was not
systematically organized in the published materials.

Fisheries fund

2015

2016

2017

2018

2019

2020(FY)(FY)

The status of budget execution for the policies to stabilize management
・ The Ministry of Agriculture, Forestry and Fisheries (MAFF) stated that it was difficult to separate the TPP-related portion from the budget for thepolicies to stabilize management and basically did not capture budget and execution amounts, etc., for the TPP-related portion.
・ Then, the Board examined the execution status of the entire budget for the policies to stabilize management, for the TPP-related portion, and foundthat the grant amount provided from the general account to the Agriculture & Livestock Industries Corporation for the management stabilization
project for dairy products largely increased in FY2017 from the previous fiscal year (From 13.2 billion yen in FY2016 to 24.3 billion yen in FY2017).
・ The Ministry of Agriculture, Forestry and Fisheries (MAFF) should provide the public with information on the status of budget execution forthe policies to strengthen structure, as well as information on the status of budget execution, including the TPP-related portion, for the policies tostabilize management in a more easy-to-understand manner.
・ As for the funds established to flexibly and efficiently implement the policies to strengthen structure based on the TPP-related framework, MAFF
should have the fund management organizations appropriately estimate the amount expected to be used in the fund projects in the
future and provide them with instructions on the effective use of the funds, for example, by requiring that they promptly return funds tothe national treasury if the balance of the funds is expected to be excessive in light of expected withdrawals from the funds in the future.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

33

14. Implementation status of measures based on the TPP-related
Cabinet Secretariat,
Ministryof
Agriculture,
Forestryand Fisheries, etc.
policy framework in the agricultural, forestry and fisheries sector－(Special Report on audit requested by the Diet)
Audit Results 2-1 The status of the implementation and effects of the measures (for the policies to strengthen structure)・ The Ministry of Agriculture, Forestry and Fisheries (MAFF) captured the status of achievement of the targets at the level of each of the projects

for the key measures. (Administrative Project Review)

・ In addition, a target was set for each measurement object (individual farmers, foresters and fishermen, etc., whose performance is to bemeasured) based on the project implementation guidelines.
⇒ The Board examined the achievement status of the targets for 6 measures out of 8 measures, while the other 2 measures had smaller total
expenditure budgets for the 6 years. It was found that 4 measures had projects that did not achieve the targets, and that 6 measures hadmeasurement objects that did not achieve the targets.

Example: Key measures for the policy of fostering business farmers with a business mindset who will lead the next generation
Achievement status of the targets of individual
measurement objects

Achievement status of the targets for key measures
Keymeasures
主要施策

主要施策
Project
事業
事業

Target
成果目標
成果目標

FY
年度
年度

Target
目標値
目標値
value

Key

Results Achievement
成果実績
達成度
成果実績
達成度

主要施策
measureslevel

事業
Project

Introduction of machines/ facilities to promote management development of
意欲ある農業者の経営発展を促進する機械・施設の導入
意欲ある農業者の経営発展を促進する機械・施設の導入
motivated
farmers

担い手確
Support
担い手確

Reduce operating

project for
経営コストの縮減
costs
保・経営 経営コストの縮減
securing
保・経営business
強化支援
farmersand強化支援strengthening Increase value-added
付加価値額の拡大
事業
management

事業

令和元
2019
令和元

amounts
付加価値額の拡大

The target was not achieved.

△3.7％-△3.7％

△56％
△56％
-

6.6%

14.8%

224%

14.8%

主な内容

Number of
目標年度に成果が設定さ
targets
measurement measurement measurement
were set でに目標年目標の一部又はwhose 成果目標のobjects that did
objects that
れた測定 objects
target years

6.6%
6.6%

6.6%

Number of measurement objects
Main items 成果目標
成果目標のof the target whose
Numberof
Numberof
令和2年度ま目標年度に

not achieve part

achieved all
全てを達成 全部を達成して対象の数 度が到来しpassed prior to the targets in of or any targets
2020
in the target year
target year いなかった測定
た測定対象 the
していた測

の数

224%

The target of “increasing value-added
amounts” was achieved.

定対象の数

対象の数

Introduction
意欲ある農 Increase
付加価値額
2,967
2,561
1,656
902
machines/value-added
facilities
業者の経営
to
の拡大、売
amounts,
promoteincrease sales,
発展を促進 and上高の拡
management
reducedevelopment operating costs
する機械・
大、経営コ
of motivatedfarmers
施設の導入 ストの縮減
Supportproject for
担い手確
securing
The target of individual measurement objects
保・経営強business
was not achieved, even though the target offarmers and化支援事業
strengthening
the project was achieved.
management

Findings MAFF should promote efforts to generate more effect through the implementation of the measures by continuing toprovide necessary guidance to farmers, forestry and fishermen, etc., who set targets in the projects whose targets
were not achieved, etc., in response to changes in the circumstances, etc.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

34

14. Implementation status of measures based on the TPP-related
policy framework in the agricultural, forestry and fisheries sector(Special Report on audit requested by the Diet)
Audit Results

Cabinet Secretariat,
Ministry of Agriculture, Forestry and Fisheries, etc.

－

2-2 The status of the implementation and effects of the measures (for the policies to stabilize management)

As for the policies to stabilize management,
the Board audited the status of the implementation and effects of the measures for each of 5 important products.

Example: Measures to stabilize management of wheat (direct payment subsidy for field crops)* Audit results regarding the other important products are also described in the audit report.

After the TPP, etc., came into effect

Outline of the subsidy

Directpayment
subsidy forfield crops

Standard
production
costs

Fund transferred fromthe general accountA

C

Direct payment
subsidyfor field crops

F
E

Domestic wheat[Mechanical estimation] (FY2026)
Increase in fiscal burden: 41.2 billion yen

The TPP, etc.,
entry into force

D

Purchase priceof imported
wheat

B

Standard 3) Increase in fund transferred
production
costs2) The direct payment
subsidy for field crops
increased due to lower
sales prices, etc., caused
by a decline in the markup.

MarkupStandard
selling price

Fund transferred from thegeneral account

Imported wheat

・ The difference between A and B is provided as the subsidy (C).
・ C is financed by the markup revenue (E), obtained bydeducting government administrative expenses from themarkup (D), etc., and any shortfall will be covered by the fundtransferred from the general account (F).

Increase* Assumptions such as production costs
not being reduced* The amount may fluctuate due tofuture market conditions, etc.

Lowering the markup
MarkupImport price ofimported wheat

Standard
selling priceDomestic wheat

1) The Markup was
lowered due to the
TPP, etc., resulting
in a decrease in themarkup revenue.

Imported wheat

・ Since the above 1) and 2) will occur due to the effect of the TPP, etc.,
the financial burden of the national government would be expected
to increase if production costs were not to reduce in the future, etc.

Findings

With regard to the policies to stabilize business for wheat, dairy products and sweeting resources crops, MAFF should continue topromote the reduction of production costs and strive to reduce the amount of subsidies, etc., by making efforts to generate more
effect from measures for the policies to strengthen structure, etc., in order to ensure a sustainable operation of the policies to stabilize
business and take all possible measures for stable management and stable supply.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

35

15. Contract pertaining to business of biochemical inspection, etc. National Institute for
National Institutefor Environmental
Studies
Environmental
Studies
15.theContract
for biochemical
tests,
etc.
in the HealthJapan Environment
and Children’s StudyinNational
Surveyon
Childand Environment(JECS)(NIES)(JECS) (Demand for Measures)43.25 million yen (Improper amount)(Demandfor measures)

Outline of
the JECSThe National Institute for Environmental Studies (a National Research and Development Agency, NIES) has conducted theJapan Environment and Children’s Study (JECS) with the aim of clarifying the effects of exposure to chemical substances
and the living environment on the health of children from the fetal period through childhood and establishing an appropriate
risk management system for chemical substances.
In the JECS, exposure to chemical substances is assessed and index chemical substances such as allergies are measured bycollecting samples (bio specimen) such as blood, urine, breast milk, cord blood during delivery from mothers, blood and urineof children and measuring the concentration of chemical substances in collected biological samples (biochemical tests, etc.).
Biochemical tests, etc., for the JECS were undertaken by private contractors with ten lump sum contracts (contract amount:
2,944.37 million yen) and two unit price contracts (payment amount: 422.14 million yen).

With regard to the ten lump sum contracts, the Board examined the ratio of the actual quantity to the planned quantity
stated in the specifications for each type of biochemical test (implementation rate) and found that the implementation
ratio was 38.9% to 99.9% in eight contracts, lower than the planned quantity.
➢If three contracts out of the ten contracts, whose payments were more likely to be affected, had been amended
to make payment that appropriately reflected actual performance, payment could have been saved by 24.49
million yen.

Audit
Results

With regard to the two unit price contracts, the unit price per subject for biochemical tests, etc., was set only for thecase where one subject was tested for all test items, and even if a subject was tested for one item, the unit price forall test items was paid to the contractor.
➢If the unit price per subject for each item had been set, payment for one of the two contracts could have been
reduced by 14.83 million yen.
With regard to two of the lump sum contracts, the supervisory official from the requesting department, in violation of
the accounting regulations, etc., had the contractor perform an elemental analysis of tap water collected fromsubjects’ homes, etc. (at a cost equivalent to 3.93 million yen), that was not stipulated in the specification, by giving
oral or e-mail instructions to the contractor without amending the contract.

Demandfor

Measures

NIES should establish specific measures to enable an economical payment that appropriately reflects actual
performance of the contract, such as standards for contract amendments, etc., and methods for setting unit prices
for contract expenses, and thoroughly inform the relevant departments of the measures.
NIES should provide guidance and training to employees of requesting departments to be appointed as supervisors on thenecessity of amending a contract in the event that a contractor is requested to perform work that is not
stipulated in the specification.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

36

(JECS)
15. (DemandContract for biochemical
tests, etc., in the Japan Environment and Children’s Studyfor(JECS) (Demand for Measures)
measures)•Example of a lump sum contract
1) Medical test (for 125 persons)2) Psychiatricneurodevelopmental test
(Clinical Assessment for
Attention (CAT)) (113 persons)3) Biochemical test (125 persons)4) Intelligence test (WISC-IV)(113 persons)•Example of a unit price contract
Blood and urine analysis•Elemental analysis
in bio specimen such as blood
sample, etc.

43.25 million yen (Improper amount)

Audit Results

Outline of the contract for the JECSBiochemical tests, etc., for
the JECS were undertaken by
private contractors
with ten lump sum contracts
and two unit price contracts.

National Institute for Environmental Studies

Plannedquantity

Actualquantity125922) Psychiatricneurodevelopmental test

113

44

Blood: 6
items

125

88

Blood: 1
item

125

89

Urine: 2
items

125

91

113

44

Type of test
1) Medical test3)Biochemical
test4) Intelligence test

• The actual quantity is smaller than the planned
quantity stated in the specification.
• If the contracts had been amended, etc., to makepayment that appropriately reflects actual
performance, the payment could have been savedby 20.49 million yen (estimated amount).

Unit: Persons

Type

Actualquantity inthe workcompletion
reportCollected

Blood

3,671
Uncollected
Collected

Urine

3,671

All test items
performed

Collection result

Uncollected

3,411

Part of or any test items
not performed

3,321

90

260
3,609

3,605

62

4

If either a blood or a urine sample iscollected and even one test item isperformed, the unit price per subject
for the case where all test items ofblood and urine tests are performed
for one subject is paid.
Payment = Unit Price × 3,671 persons

The payment could have been
14.83 million yen less if the unit
price per subject for each test had
been set.

The JECS instructed the contractor to perform the work that was not stipulated in the specification(an elemental analysis of tap water collected from subjects’ homes, etc. (at a cost equivalent to 3.93 million yen),

Demand for Measuresorally or by e-mail without amending the contract.

NIES should establish specific measures to enable an economical payment that appropriately reflect the actual performance of thecontract, such as standards for contract amendments, etc., and methods for setting unit prices for contract expenses, and thoroughly inform therelevant departments of the measures.
NIES should provide guidance and training to employees of requesting departments who are expected to be appointed as supervisors on thenecessity of amending a contract in the event that a contractor is requested to perform work that is not stipulated in the specification.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

37

Small and Medium Enterprise Agency, the Headquarters of
16. Size of the Special Finance for Small and Medium Enterprises the Organization forThe
Small & Medium Enterprises and Regional Innovation, JAPAN(an incorporated administrative agency)in Specified Area (Demand for Measures)

21,782.27 million yen (Improper amount)

Outline oftheproject

The Special Funds for Small and Medium Enterprises in Specified Area (specified area project) provides necessary loans for acquisition
and maintenance of land, buildings, etc., or working capital loans to support continuation or resumption of business to small
and medium-sized enterprises, etc., that have been forced to relocate due to the accident at Tokyo Electric Power Company
Holdings, Inc. (TEPCO)’s Fukushima Daiichi Nuclear Power Station associated with the Tohoku and Pacific Ocean Earthquake (relocatedsmall and medium-sized enterprises, etc.).
The Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (an incorporated administrative agency,
Organization) provides loans without interest (organization loan, total loan amount: 70.3 billion yen) to Fukushima Prefecture
for part of loans that the prefecture provides without interest (prefectural loan) to the Fukushima Center for Industrial Promotion(Center) in charge of implementing the specified area project.
The number of new loans in the loan operation of the Center had decreased significantly since FY2012 compared to the one in
FY2011 when the project was started, and there was just one new loan provided in FY2021. Out of the loan resources of 39.3 billion
yen provided by the prefecture, 23.7 billion yen had never been utilized for loans and were held by the Center.
Out of the cumulative income from fund management, etc., to be allocated to administrative expenses, allowance for doubtful
accounts, etc., in the administrative operation of the Center, an unused amount was 2.4 billion yen.

Audit
Results

By deducting expected loans and administrative expenses, etc., in the future from 23.7 billion yen and 2.4 billion yen above,
respectively, the Board found that the amount of loan resources and cumulative income from fund management, etc., that were notexpected to be used in the future by the Center was a total of 21.8 billion yen, and it was translated into 21.7 billion yen of theorganization loan.
The size of prefectural loans was to be reviewed at the end of the final fiscal year of the loan implementation period (initially
March 2012). However, the loan implementation period has been extended every fiscal year, and as a result, the size has not beenreviewed to date.
The Small and Medium Enterprise Agency (SME Agency) and the Organization failed to review the size of the prefecturalloan in consultation with the prefectures, although they could have noticed changes in circumstances surrounding the project,such as a decrease in loan demand and the commencement of a new scheme of subsidies*, in materials that the prefecture
submitted at the end of each fiscal year.
*Fukushima Prefecture subsidy to support the resumption of business affected by the nuclear disasterIn order that the Organization can receive reimbursement of the organization loan that is not be expected to be used and utilize it forother projects, SME Agency and the Organization should:

Demandfor
Measuresrequest Fukushima Prefecture to review the size of the prefectural loan and calculate and redeem the amount of theorganization loan that is not expected to be used.
ensure that a future review of the size of the prefectural loan will be carried out in a timely manner, by stipulating that
Fukushima prefecture regularly reviews the size of the prefectural loan even before the end of the loan implementation period, andthat the Organization requests Fukushima Prefecture to review it in accordance with lending performance, etc., and changes in thecircumstances surrounding the project.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

38

16. Size of the Special Finance for Small and Medium Enterprises
in Specified Area (Demand for Measures)

The Small and Medium Enterprise Agency, the Headquarters of theOrganization for Small & Medium Enterprises and Regional Innovation, JAPAN(an incorporated administrative agency)

21,782.27 million yen (Improper amount)

Summary of Loans

Loans performance, etc.

FY2011:42 billion yen
FY2014:28.3 billion yen

Prefectural loan:
70.43 billion yen
FY2011:42.1 billion yen
FY2014:28.33 billion yen

Specified Area Project● Loan operation
Loan resources :39.33 billion yen● Administrative
operation Fund:31.1 billion yen

Centerloan

Relocated small and mediumsized enterprises, etc.

Organization loan:
70.3 billion yen

Fukushima
Prefecture

Organization

Center

Unused resources of loans at the end of each fiscal year
Cumulative
450
amount of loans as of the end of each fiscal year

400
350

Amount that has never been used

300
260

249

244

241

239

238

237

237

237

120

132

144

149

152

153

154

155

156

156

225
2012

326
2013

427
2014

528
2015

6 29
2016

7 30
2017

8
9 2
令和元
2018
2019

179

69

66

35

21

12

13

250

Audit Results

200• The size of prefectural loans has not been reviewed to date.

150• Although the Organization, etc., noticed that loan demand
estimated by the prefecture decreased (especially after
FY2016), it did not review the size of the projectby consulting with the prefectural government.

100
50

200

100

180

0

• As a result of estimating the amount required in the future,
the amount that is not expected to be used was 21,782.27
million yen (at the organization loan level).

Demand for Measures(Unit: 100 million yen, cases)

124
年度FY平成23 2011
貸付

Number of loans

件数

533

553

179

69

66

35

21

The number of loans has decreased
significantly since the commencementof the new subsidy scheme in FY2016.

12

13

3

3

Total
10 3 2021
11
計(注)
2020
(Note)

5

5

1

1

(55)

(55)

937
937

Note: Figures in ( ) indicate number of loans
since FY2016.

SME Agency and the Organization should
request Fukushima prefecture to calculate and redeem the amount of the organization loan that is not expected to be used.
ensure that a future review of the size of the prefectural loan will be carried out in a timely manner by stipulating that Fukushima
prefecture regularly reviews the size of the prefectural loan even before the end of the loan implementation period, and that theOrganization requests Fukushima prefecture to review it in accordance with lending performance, etc., and changes in the circumstances
surrounding this project.
Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

3917. Examination of Tax Returns on Dividend Income ofMajor Individual Shareholders, etc. (Measures Taken)

National Tax Agency
1,318.91 million yen (Background amount)

When paying dividends for shares in Japan, companies shall withhold income tax and pay it to the national government(withholding at source) and submit payment reports stating names of persons who receive dividends, numbers of shares,
amounts of dividends, and amounts of withholding taxes to the district tax office director.

Outline oftheschemeMajor individual shareholders with a shareholding ratio of 3% or more who receive dividends on listed shares and individual
shareholders of unlisted companies who receive dividends shall file income tax returns using the aggregate taxation
method after the withholding at source (income tax rate: 20.42% in principle). In this method, shareholders calculate
gross taxable income by totaling dividend income and other types of income and multiplying the gross taxable income by aprogressive tax rate (5% to 45%) that is set for each category of gross taxable income.
The district tax office examines whether the details of tax returns are appropriate in light of payment reports, etc., based on
the guidelines for individual taxation, but specific procedures for examination of dividend income are not described in theguidelines.
The NTA informs residents of the method of filing tax returns for dividend income through its website, etc.
Out of 2,025 major individual shareholders (total dividend income: 219,445.36 million yen) and 1,237 individual shareholders ofunlisted companies (do: 53,107.05 million yen), 149 shareholders (do: 1,318.91 million yen) failed to file tax returns using
the aggregate taxation method for the tax years of 2018 and 2019.

Audit
Results

The Board calculated their income taxes on a trial basis using the aggregate taxation method and found that, out of the abovementioned 149 shareholders, income taxes would have increased for 74 shareholders by 103.03 million yen anddecreased for 44 shareholders by 21.72 million yen. (The amounts were calculated mechanically and do not necessarily represent
an increase or decrease in income taxes.)
The NTA did not establish specific procedures, such as an effective examination using the results of analysis ofwithholding tax amounts in payment reports.
The Board conducted interviews at seven district tax offices and found that no district tax offices carried out examinationsof whether dividend income is properly filed, such as by establishing procedures for examination based on payment
reports, and that examinations of income tax returns were not conducted effectively.
NTA did not clearly state on its website, etc., that major individual shareholders, etc., needed to file dividends they receive
as dividend income by the aggregate taxation method, and did not thoroughly inform residents in Japan of it.

MeasuresTaken

NTA established specific procedures for examining whether major individual shareholders, etc., have filed dividends theyreceive as dividend income using the aggregate taxation method, based on payment reports, and informed district tax
offices of the procedures.
NTA informed residents in Japan that major individual shareholders, etc., needed to file dividends they receive as dividend
income using the aggregate taxation method and by clearly stating it on its website, etc.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

40

17. Examination of Tax Returns on Dividend Income ofMajor Individual Shareholders, etc. (Measures Taken)

National Tax Agency
1,318.91 million yen (Background amount)

The flow of taxation on dividend income, etc., of major individual shareholders
and individual shareholders of unlisted companies

Payment of dividends,
etc. (after withholding
income tax at the tax
rate of 20.42%)

Companies who pay dividends, etc.

Final tax returns as
dividend income by theaggregate taxation method(progressive tax rate from
5% to 45%)

Inform how to file tax returns
on the website of NTA
Examination of tax returns
at district tax offices

・ Payees・ Numbers of shares・ Amount of dividends
・ Amounts of withholding tax

A total of 149 major individual shareholders(total amount of dividend income: 1,318.91
million yen) did not file tax returns by using
the aggregate taxation method.
Calculation by the Board
Of the 149 major individual shareholders above,
income tax would have increased for 74 shareholders by
103.03 million yen, anddecreased for 44 shareholders by 21.72 million yen.

Shareholders
Examining theappropriateness ofthe details of tax
returns in light of
payment reports

Submit payment reports

Audit Results(The amounts were calculated mechanically, and do notnecessarily represent an increase or decrease in income
taxes.)NTA did not established specific procedures for
examining tax returns by using the results ofanalysis of payment reports, and examination
was not conducted effectively at district tax
offices.
NTA did not clearly state on its website, etc.,that major individual shareholders, etc., needto file dividends they receive as dividend
income by the aggregate taxation methodand did not sufficiently inform them.

Measures Taken
NTA established specific procedures for examining whether major individual shareholders, etc., have filed dividends they receive as dividend
income by the aggregate taxation method, based on payment reports, and informed district tax offices of the procedures.
NTA informed residents in Japan that major individual shareholders, etc., needed to file dividends they receive as dividend income byusing the aggregate taxation method and by clearly stating it on its website, etc.

Copyright©2022 Board of Audit of Japan

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2021 Audit Report (Japanese only).

41