1. Status of Use of the Reserve Funds(Special report on audit requested by the Diet)

Detailsof theRequestfor Audit

8 ministries and agencies, Ministry of Finance

The matters requested by the Diet (on June 13, 2022), with regard to the amount of carry-over out of the COVID-19-related reserve funds for
FY2020 (contingency funds for the COVID-19 and general contingency reserve [limited to those used for measures related to COVID-19]), andcontingency funds for COVID-19 for FY2021, were as follows:(i) the status of execution of budget items that were newly established or for which the budget amount was increased using the reserve funds, and(ii) the status of use of the reserve funds; in particular, the grounds for the use and the basis for the estimation of the used amount.
In the resolution based on the deliberation of the State’s final accounts for FY2020 on the same day of the audit request, the Committee on Auditof the House of Councillors requested the national government to make further efforts to fulfil its accountability for the use of the reserve funds
during the Diet session and to enhance transparency regarding the status of execution of budget, including reserve funds.
The amount of reserve funds which was allocated for a budget item based on decisions to use them is executed integrally with its existing budget,
including the initial budget. Accordingly, it is not possible to distinguish and concretely ascertain the execution status of the amount equivalent tothe used reserve funds (the allocated amount funded with reserve funds) from the overall execution status of the budget item, except in very
limited cases.

Resultsof theAudit

For 47 line items of 22 budget items for FY2021 to which budgets were allocated based on decisions to use the COVID-19-related reserve
funds, the execution status of the amount equivalent to the used reserve funds was not able to be distinguished from the overall execution
status of these budget items.
8 ministries and agencies practically managed budget execution by project using a management ledger, for example, and were able todistinguish the execution status of the amount equivalent to the used reserve funds, although their methods of deciding the order of selecting
financial sources (the methods of deciding in what order to be used among multiple financial sources) differed.
There were some projects in which an amount equivalent to the used reserve funds was diverted to projects in other line items (legal budget
transfer among different line items) or was diverted within the same line item (practical budget transfer within a single line item) and otherprojects in which the entire amount equivalent to the used reserve funds for a single decision item (unit in which a decision to use reserve
funds is made) was carried over to the following fiscal year.
There were also some projects in which the requested amount of reserve funds for use was calculated using a period exceeding the numberof days from the day of the decision to use the reserve funds to the fiscal year end (for all the projects, the entire amount equivalent to theused reserve funds for a single decision item was carried over to the following fiscal year).

Findings

In addition to the execution status of the overall project budgets, as a breakdown thereof, the execution status of the amount equivalent
to the used reserve funds for each project should be published.
The methods of deciding the order of selecting financial sources should be clearly indicated for each project.
When the amount equivalent to the used reserve funds is diverted to other projects in other line items or within the same line item,the circumstances leading to the diversion should be indicated in detail.
When a large amount of carry-over occurs for the amount equivalent to the used reserve funds, in particular, when the entire amountequivalent to the used reserve funds for a single decision item is carried over to the following fiscal year, the assumption at the time of
deciding the use of the reserve funds pertaining to the implementation of the project and the execution of the budgets therefor andthe developments leading to the carry-over should be indicated in detail.

Copyright©2023

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 September 15, 2023 Audit Report(Japanese only).

11. Status of Use of the Reserve Funds(Special report on audit requested by the Diet)
Background of the Audit

Use of reserve funds

8 ministries and agencies, Ministry of Finance(p.1 to p.8 of the audit report)(e.g.) When “using” 500 billion yen from the reserve funds (5 trillion yen) for the budget for Ministry of ●●Occurrenceof an incident

Ministry of ●●(Heads of ministries andagencies)(ii) Request for the use of a reserve fund of 500 billion yen(i) Prepare a written request
for the use of the reserve funds

The initial budget of
300 billion yen is not enough.
Another 500 billion yen is required.

Budget under the jurisdiction of MOF

MOF

Reserve funds(Minister of Finance)

5 trillion yen(iii) Examine the request (ii) and prepare adocument for the use of the reserve funds
by making adjustments as required(vi) Allocation of a budget of 500 billion yen(vi) Decrease in the reserve
funds budget balance dueto the allocation of 500
billion yen(iv) Prepare a written request for deliberations
at a Cabinet meeting to seek a Cabinet
decision

Reserve
funds(Used reserve funds: 500 billion yen)

Meaning of “use” of the reserve funds
Incorrect: To make expenditure (in cash) using thebudget for the MOF as direct financial sources
Correct: To additionally allocate a budget to the
Ministry of ●●4.5 trillion yen
Budget balance

Cabinet(v) Cabinet decision(Decision to use the reserve funds)

Constitution of Japan - Article 87, paragraph (1)Resolution based on the deliberation of the State’s final accounts for FY2020

In order to provide for unforeseen deficiencies in the budget, a reserve fund may be authorized

The national government should make further efforts to fulfil its
accountability in the Diet so as not to invite suspicions over thepredictability and urgency of expenses for which the use of thereserve funds was decided during the Diet session and theirrelation with the Cabinet decision in 2007.

by the Diet to be expended upon the responsibility of the Cabinet.
Use of Reserve Funds (Cabinet decision in 1954; Finally amended in 2007) – Paragraph (3)Reserve funds are not to be used, except for the following expenses, … during Diet sessions.
(iii) urgent expenses which are found difficult to cope with in a timely manner unless the reserve
funds are used

General Provisions of Budget for FY2020 and FY2021
Contingency funds for the COVID-19 should not be used for expenses other than urgent ones inrelation to COVID-19….
Copyright©2023

Board of Audit of Japan

Resolution based on the deliberation of the State’s final accounts for FY2019

The national government should endeavor to ensure theappropriate use of the reserves funds in line with the purport of House of Councillors
the reserve fund system prescribed in the Constitution ofCommittee on Audit
Japan….

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;see the September 15, 2023 Audit Report(Japanese only).

21. Status of Use of the Reserve Funds(Special report on audit requested by the Diet)
Background of the Audit

8 ministries and agencies, Ministry of Finance

Execution of budget funded with the used reserve funds (p.8 to p.11 of the audit report)(e.g.) Budget item under the jurisdiction of Ministry of ●● to which a budget was allocated based on the decision to use 500 billion yen from the reserve funds(Ministry with jurisdiction)
Ministry of ●●Budget item A

Allocation of a budget of 500 billion yen based on the decision to use the reserve funds(unit: 100 million yen)
1

Item

2

Appropriation

Carry-over fromthe previous fiscal
year

3000

－

Budget item △△Line item◇◇

Used reserve 3
funds

Changes in theamounts diverted

5000

-500
Diversion of budget

It is not also possible to distinguish theamount equivalent to the used reserve
funds (funded with ③) included in changes
in the amounts diverted.
(Ministry with jurisdiction)
Ministry of ●●Budget item B
Item

Appropriation

Carry-over fromthe previous fiscal
year

1000

－

Budget item△△Line item◇◇

4

Used

5

－

Actual budget amount

Total of1 to 5

7500

Expendedamount

5000

Carry-over tothe following
fiscal year

Unusedbudget2000

500

Whether it is possible to distinguish the execution status of the amount equivalent to the usedreserve funds (funded with ③)

The budget funded with the used reserve funds (funded with ③) is executed
integrally with the existing budget, including the initial budget.
It is not possible to distinguish the execution status (expended amount,carry-over to the following fiscal year, and unused budget) of the amountequivalent to the used reserve funds (funded with ③).

Changes in theamounts diverted－

Changes in theamountstransferred

500

Changes in theamountstransferred－

Actual budget
amount1500

Expendedamount500

Carry-over to thefollowing fiscal
year

500

Unusedbudget500

Usage of Reserve Funds (Cabinet decision in 1954) – Paragraph (４)Resolution based on the deliberation of the State’s final accounts for FY2020

The amount funded with the reserve funds must not be
used for any purpose other than its determined purpose.

With regard to the executed amounts stated in financial statements, … budgets
are not executed separately by financial source, and for some budget items, it is
impossible to ascertain the amounts of executed budgets funded by the reserve
funds only and to conduct verification as required.
The national government … should deliberate on methods of information
disclosure and enhance the transparency regarding the status of budget
execution.

Copyright©2023

Board of Audit of Japan

House of Councillors
Committee on Audit

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;see the September 15, 2023 Audit Report(Japanese only).

31. Status of Use of the Reserve Funds(Special report on audit requested by the Diet)
Audit Results 1 Management of budget execution by project

8 ministries and agencies, Ministry of Finance(p.24 to p.36 and p.52 to p.54 of the audit report)

For 47 line items of 22 budget items for FY2021 to which budgets were allocated based on decisions to use the reserve funds, there were none for which the execution status of the amountequivalent to the used reserve funds was able to be distinguished.
8 ministries and agencies practically managed budget execution by project and deliberated on whether or not to request the use of the reserve funds.
The execution of project budgets was managed by the departments in charge of individual projects using a management ledger (a ledger prepared using spreadsheet software), for example.
COVID-19-related reserve
funds for FY2020

Contingency funds for
the COVID-19 for FY2021

Decision

Decision

to useto useNet total: 7 ministries andagencies – 56 projects

7 ministries and agencies– 37 projects

4 ministries –8 projects

4 ministries and agencies– 26 projects

The actual amount of budget was solely fundedwith reserve funds for a single decision item.

7 ministries andagencies – 48 projects

Whether the execution was
managed to ensure thatbudgets were not expensed
for any purpose other thantheir determined purposes

Whether the execution status of the amountequivalent to the used reserve funds
was able to be distinguishedBy project OK

Directly based on the execution status of
the relevant project budgets
OK(i) The actual amount of budget for the expense category wassolely funded with reserve funds for a single decision item.

By expense category
OK

Directly based on the execution status of
the relevant expense categoryOK(ii) The actual amount of budget for the expense
category was funded with multiple financial sources.

By expense category
OK

It is necessary to decide the order of selecting financial
sources to be used.

(iii) Multiple expense categories included those falling under (ii).

By expense category
OK

The actual amount of budget is funded with multiple financial sources.

4 ministries andagencies – 15 projects

Limited the expenses to be funded with the amount equivalent tothe used reserve funds
Managed budget execution by expense category

2 ｍinistries- 11 projects
2 ministries andagencies- 3 projects
1 ministry- 1 project
6 ministries andagencies - 33 projects

The purpose of use was the same for the reserve funds and otherfinancial sources.
Integrally managed the execution of multiple financial sources

By project OK

6 ministries andagencies - 32 projects

In a first-in, first-out mannerPrioritized the use of
3 ministries - 4 projects the reserve funds
Prioritized the use of
1 ministry - 1 project the supplementary budgets

By deciding the order of selecting
financial sources to be used

OK

(Note) The published materials do not clarify the execution status of the amount equivalent to the used reserve funds for each project or the method of deciding the order of selecting financial resources.

In order to further
In addition to the execution status of the overall project budgets, as a breakdown thereof, the execution status of the amount equivalentFindings A
contribute to ex-post
to the used reserve funds for each project should be published.
verification …
Findings B The methods of deciding the order of selecting financial sources to be used should be clearly indicated for each project.
Copyright©2023

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 September 15, 2023 Audit Report(Japanese only).

41. Status of Use of the Reserve Funds(Special report on audit requested by the Diet)

8 ministries and agencies, Ministry of Finance

FY2020

Audit Results 2 Status of budget execution by project (p.36 to p.54 of the audit report)
COVID-19-related reserve funds for FY2020
34 decision items - used reserve funds:
7.9819 trillion yen

Budget items to which budgets were allocated basedon decisions to use the reserve funds and were carriedover to the following fiscal year

Decision
to use7 ministries and agencies - 37 projects

Diversion within the same line item(Note): 1 ministry - 1 projectStatus of carry-overProjects in which the entire amount equivalent to the usedreserve funds for a single decision item was carried over tothe following fiscal year
FY2020: 6 ministries and agencies - 14 projects
FY2021: 2 ministries and agencies - 4 projects(See p.7)

7 ministries and agencies - 38 projects
Contingency funds for the COVID-19 for FY2021
16 decision items - used reserve funds:
4.6185 trillion yen

Of which, the amount equivalent to the usedreserve funds was carried over in 27 projectsof 7 ministries and agencies(Carry-over to the following fiscal year :4.7964 trillion yen)

FY2021

Decision
to use4 ministries and agencies- 26 projects

7 ministries and agencies- 27 projects

Diversion within the same line item(Note) :1 ministry - 1 project

Net total: 7 ministries and agencies - 50 projects
Amount equivalent tothe used reserve funds
9.4149 trillion yen

Expended amount8.2335 trillion yen

Carry-over tothe following fiscal year
0.7282 trillion yen

Unused budget
0.4532 trillion yen

Of which, COVID-19-related reserve funds for FY2020 (carry-over): 4.7964 trillion yen
Of which, contingency funds for the COVID-19 for FY2021: 4.6185 trillion yen

In order to further
contribute to ex-post
verification
Copyright©2023

Findings C

Board of Audit of Japan

Status of diversion
Diversion toprojects in otherline items

Legal budget transfer
among different line items

Diversion within
the same line
item

Practical budget transfer
within a single line item

Project A

Project B

Projects in which the amount equivalent to the used reserve
funds was diverted to other projects in other line items orwithin the same line item
FY2020 - Diversion
within the same line item
1 ministry - 3 projects (4 cases)(Note)
Diversion within the same line
item to a project to which abudget was not allocatedFY2021 - Diversion to other line items based on a decision to use thereserve funds
1 ministry - 1 project (1 case)

Diversion within the same line item
1 ministry - 2 projects (2 cases)

FY2020: 1 ministry - 1 project
FY2021: 1 ministry - 1 project

When the amount equivalent to the used reserve funds is diverted in other line items or within the same line item
to any projects other than those to which budgets are used initially based on decisions to use the reserve funds,
the circumstances leading to the diversion should be indicated in detail.
This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;see the September 15, 2023 Audit Report(Japanese only).

51. Status of Use of the Reserve Funds(Special report on audit requested by the Diet)
Audit scope for the use of reserve funds

8 ministries and agencies, Ministry of Finance(p.54 of the audit report)
Of 34 decision items for COVID-19-related reserve funds for FY2020, those in which theamount equivalent to the used reserve funds was carried over

COVID-19-related reserve funds: 41 decision items(Net total: 7 ministries and agencies- 49 projects; used reserve funds: 10.7089 trillion yen)

FY2020: 25 decision items (7 ministries and agencies - 27 projects; used reserve funds: 6.0903 trillion yen)
FY2021: 16 decision items (4 ministries and agencies- 26 projects; used reserve funds: 4.6185 trillion yen)

Audit Results 3 Status of the grounds for using the reserve funds (p.56 to p.59 of the audit report)

Incidents that require
the use of the reserve funds

Status of deliberations
on how to secure a budget

A reserve fund is to be allocatedto cover unforeseen deficiencies
in the budget.

A reserve fund is to be allocatedto cover unforeseen deficiencies
in the budget.

Examples of given explanations were as
follows:
It was decided to implement a projectin a policy package.

Given explanations were as follows:
For 2 projects of 2 ministries, theamounts of shortage even after
budget diversions were requested.

In light of the situation of the spreadof COVID-19, it was decided toextend the project period.

For 47 projects of 7 ministries andagencies, it was impossible todivert budgets to these projects
and the full amounts of shortage
were requested.

Copyright©2023

Board of Audit of Japan

Status of the periods forcalculation of the total amounts

Series of procedures,
including preparation
for project
implementation

Expenditure

Allocationof budgets

Cabinet Decision

Deliberations at a
Cabinet meeting

Examination

Request for use

Occurrence of anincident that requires
the use of the reserve
funds

Actions authorizing
expenditures

Process of executing the amount equivalent tothe used reserve funds

Process of using reserve funds

Timing of actions authorizing expenditures
Reserve funds should be used only for urgent expenses and time-criticalexpenses.
It is necessary to secure a budget at the time of an action authorizing
expenditure at the latest.
One of the key points for verifying the urgency is how short the period isfrom the day of deciding the use of reserve funds up to the action authorizing
expenditure of the amount equivalent to the used reserve funds.

(See p.7).

For 28 projects of 4 ministries and agencies, action authorizing expenditures
were taken more than one month after the day of deciding the use of the reserve
funds.

Given explanations were as follows:
For 15 projects of 3 ministries and agencies, the actual timing ofactions authorizing expenditures was more than one month later
than the original schedule.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;see the September 15, 2023 Audit Report(Japanese only).

61. Status of Use of the Reserve Funds(Special report on audit requested by the Diet)

8 ministries and agencies, Ministry of Finance

Audit Results 4 Status of the basis for calculation of the used reserve funds (p.60 to p.67 of the audit report)
Single-year budget principle

Status of carry-over

The Diet makes budget approvals
for each fiscal year (from April 1 to March
31 of the following year).

Projects in which the entire amountequivalent to the used reserve funds
for a single decision item wascarried over to the following fiscal
year
FY2020: 6 ministries and agencies- 14 projects
FY2021: 2 ministries and agencies- 4 projects

The requested amount of reserve funds
needs to be calculated based on theestimated amount of expenditures within afiscal year on the premise of executing therequested amount of reserve funds within
the fiscal year.

(Repeated on p.5)

Auditing the calculation of the requested amount of reserve fund for 49
projects of 7 ministries and agencies (41 decision items) by requestingthem to submit materials proving the grounds for the calculation or by othermeans, the periods for calculation of the total amounts were indicated for
14 projects of 5 ministries and agencies (16 decision items).
Reserve funds are exempt from the principle of requiring a prior decisionof the Diet.
Calculation of the requested amounts needs to be conducted based on theestimated amount of expenditures within a fiscal year based on the singleyear budget principle.

Regarding the status of carry-over of the amount equivalent to the usedreserve funds, it is considered that sufficient explanations, including theassumption at the time of deciding the use of the reserve funds, are required.
Copyright©2023

Board of Audit of Japan

Status of periods for calculation of the requested amounts
The entire amount equivalent to the used reserve funds for a single decision item wascarried over.
Of which, 4 projects of 2 ministries and agencies (4 decision items (id.))

Periods exceeding the number of days from the day of deciding the useof the reserve funds (March 23, 2021) up to the end of the fiscal year
(March 31, 2021) were used.
Examples of a period for calculation of the requested amounts• From March 8 to April 21, 2021; For 240 days; For 12 months

Explanations by 2 ministries and agencies (Note)(Note) Including the Children and Families Agency from April 1, 2023, onward.

At the time of making the request, they planned to complete the relevant projects
within the fiscal year.
The calculation of the requested amounts was based on the estimated amount ofexpenditures within the fiscal year.
They used the periods for the convenience of calculating the expenditure size thatwould be required within by the end of the fiscal year.

The Board also checked how 2 ministries and agencies were
supposed to have completed the projects in such a short periodof time by the end of the fiscal year, but clear explanations were
not provided.
Findings D
When a large amount of carry-over occurs for the amount equivalent to the usedreserve funds, in particular, when the entire amount equivalent to the usedreserve funds for a single decision item is carried over to the following fiscal year,
the assumption at the time of deciding the use of the reserve funds pertaining to
the implementation of the project and the execution of the budgets therefor andthe developments leading to the carry-over should be indicated in detail.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;see the September 15, 2023 Audit Report(Japanese only).

72. Status of Filing of Tax Returns for Sustainability Subsidies(Report on Specific Matters)

Backgroundof the Audit

National Tax Agency

The COVID-19-related subsidies for sustaining businesses (sustainability subsidies) are the largest support program among
the national government's subsidies to individuals and corporations for the purpose of mitigating the impact of the spread of
COVID-19.
In FY2020, sustainability subsidies totaling 5.5417 trillion yen were provided for 4.24 million cases, which included 2.81 million
sole proprietorships (2.63 million solo proprietorships by December 2020).
It is considered that a subsidiary program targeting a large number of recipients, like sustainability subsidies, may also be
implemented in the future due to the occurrence of a disaster, a pandemic, or changes in the social and economic conditions.
1. Out of 11,000 sole proprietorships randomly selected using a statistical method, income tax filing data for 2020 were able tobe confirmed for 8,903. As a result of examining the income tax filing data, it was found that the amounts of income of 428
sole proprietorships were below the amounts of sustainability subsidies that they had received and that they might have notreported sustainability subsidies as their income (accounting for 4.8% of the 8,903 sole proprietorships; the total amount ofsustainability subsidies: 384.18 million yen).
The status observed for the aforementioned 11,000 persons is assumed to apply to 2.63 million sole proprietorships thatreceived sustainability subsidies.

Status of
the Audit

2. The status of making inquiries about the provision of sustainability subsidies with the Small and Medium Enterprise Agency(granting agency) using a request for cooperation based on the Act on General Rules for National Taxes, differed by regional
taxation bureau (some bureaus made inquiries for a total of over 1,000 cases for FYs 2021 and 2022, some made only adozen inquiries, and some made no inquiries). The National Tax Agency (NTA) has not evaluated effects of utilizing suchinquiries.
3. The next-generation system that is scheduled to be operational in FY2026 will expand the information to be digitalized andwill enable efficient and effective data matching between the information reported by taxpayers and that held by national tax
authorities. However, the NTA stated that it intended to work on the inquiry procedures based on the Act on General Rules
for National Taxes effectively and efficiently in consideration of the effects of its utilization, since there were various
restrictions, such as the need for coordination with the granting agencies in obtaining data and budgetary restrictions.
The NTA has not deliberated on the development of a specific system for matching the details in tax returns and the dataon subsidies provided to a large number of recipients, like sustainable subsidies.
The NTA should continue informing taxpayers to ensure that they file proper tax returns. (Audit Status 1)

Findings

The NTA should consider more effective measures in the current tax return examination and inquiry procedures to encourage
taxpayers to file proper tax returns concerning income from subsidies, and to effectively examine whether income fromsubsidies has been declared. (Audit Status 2)
The NTA should deliberate on the various issues in its medium- to long-term initiatives for enhancing efficiency in andsophisticating taxation procedures through digital transformation for tax administration. (Audit Status 3)

Copyright©2023

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 FY2022 Audit Report (Japanese only).

82. Status of Filing of Tax Returns for Sustainability Subsidies(Report on Specific Matters)
Background of the Audit

National Tax Agency

Outline of sustainability subsidies and filing of income tax returns

In FY2020, the Small and Medium Enterprise Agency (SMEA) provided the COVID-19-related subsidies for sustaining businesses (sustainability subsidies), which can be widelyused for the overall businesses, to sole proprietorships, including freelancers and corporations, that were significantly affected by the spread of COVID-19 for the purpose of
supporting their efforts for sustaining and restoring businesses (provided to business operators whose earnings decreased by 50% or more from the level of the same month of theprevious year; up to 1 million yen for sole proprietorships and up to 2 million yen for corporations).
Sustainability subsidies were provided for 4.24 million cases (5.5417 trillion yen in total) in FY2020. Out of all recipients, 2.81 million (two-thirds of the total) were sole proprietorships.
Upon filing income tax returns, sole proprietorships are required to report the amount of sustainability subsidies that they received as business income, miscellaneous income, oroccasional income.
(However, if the amount of necessary expenses is larger than the total amount of income, they are not required to file tax returns.)

Audit Status 1<SMEA>

Status of filing of income tax returns by sole proprietorshipsthat received sustainability subsidies
Provided sustainability subsidies to 2.81 million
sole proprietorships in FY2020

Submitted data on 2.63 million sole
proprietorships who received
sustainability subsidies by the end of
December 2020 to the Board.

<Board of Audit><National Tax
Agency (NTA)>

Randomly selected 11,000 persons
using a statistical method fromthe data on the 2.63 million
sole proprietorships

Submitted data on income tax returns forthe 11,000 sole proprietorships

Board of Audit of JapanFor the remaining
2,097 sole proprietorships, income tax
returns were not able to be confirmed
due to a possibility that there might be
no taxable income
because the amount of necessary
expenses was larger than
the total amount of income, for example.

Examined the status of reporting of incomeon sustainability subsidies in income tax
returns by such means as cross-checking
the data on the subsidies provided to
the 11,000 sole proprietorships
and the data on their income tax returns

Number of sole proprietorships who might
have not reported sustainability subsidies as
their income: 428
The reported amount of income
was below the amount of thereceived sustainability subsidies.

Findings The NTA should continue informing taxpayers to ensure that they file proper tax returns.
Copyright©2023

Number of sole proprietorships whose data on
income tax returns for 2020 were confirmed:
8,903, out of the 11,000 sole proprietorships

Total amount of sustainability subsidies received
by the 428 sole proprietorships: 384.18 million
yen
The status observed for the randomly selected
11,000 sole proprietorships is assumed to apply
to 2.63 million sole proprietorships that received
sustainability subsidies.
.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2022 Audit Report (Japanese only).

92. Status of Filing of Tax Returns for Sustainability Subsidies(Report on Specific Matters)
Status of collection of information on sustainability subsidies
by the National Tax Agency (NTA)

Audit Status 2

Regional Taxation
Bureaus
Sapporo Regional
Taxation Bureau
Sendai Regional
Taxation Bureau
Kantoshinetsu Regional
Taxation Bureau
Tokyo Regional
Taxation Bureau
Kanazawa Regional
Taxation Bureau
Nagoya Regional
Taxation Bureau
Osaka Regional
Taxation Bureau
Hiroshima Regional
Taxation Bureau
Takamatsu Regional
Taxation Bureau
Fukuoka Regional
Taxation Bureau
Kumamoto Regional
Taxation Bureau
Okinawa Regional
Taxation Office

Total

Number of inquiries
FY2021

FY2022

Total

120

5

125

0

0

0

6

55

61

0

551

551

0

0

0

0

30

30

1,419

237

1,656

2,736

5

2,741

8

6

14

2

22

24

0

0

0

0

1

1

4,291

912

5,203

Inquiries were made incases where such problems
on taxations were foundthat there was a highprobability of undeclaredtaxable income and others.

National Tax Agency

Audit Status 3 Status of the NTA's efforts for digital transformation
Digital transformation for tax administration
Fundamental review of conventional procedures and operations concerning national taxes
by the use of digital technologies(Basic Guidelines)
Thoroughly implement Business Process
Re-engineering (BPR)

Ensure full security

Thoroughly ensure user perspective

Scheduled to commence
operation in FY2026

Future Vision of Tax Administration
2.0*
Properly
Adjusting to the
ICT society

Some bureaus madeinquiries for over 1,000
cases for FYs 2021 and2022 in total, some madeonly a dozen inquiries, andsome madeno inquiries.

Drastic
Digitalization of
Taxation
Procedures

A Society in which
Any Tax Procedure
Can be Performed
without Visiting Tax
OfficePromoting Convenience for
Taxpayers (Smooth and Speedy)

Efficient and Advanced Taxation andCollection (Intelligent)

Proper Effort into
Priority Issues

Simple and Easy Procedure

Automatic Check of Tax Returns

Addressing Tax
Avoidance

Online Check on Personal information

AI and Data Analysis

Ensuring Proper
Taxation of the
Wealthy Class

Easy Consultation by Chatbot

Online Inquiries

Ensuring Proper
Consumption Tax

Customized Notification

Web Conference Systems

Addressing LargeScale and Malicious
Cases(Establishment of Infrastructure)
System Sophistication and HR Development

Collective Processing of In-office Work

Coordination and Cooperation of Related Agencies

Source: Partially processed the "Digital Transformation for Tax Administration- Future Vision of Tax Administration 2.0 (updated by NTA in February 2022)”

The status of making inquiries about the provision of sustainability subsidies with the
granting agency, SMEA using a request for cooperation based on the Act on General
Rules for National Taxes, differed by regional taxation bureau. The NTA has notevaluated effects of utilizing such inquiries.

The NTA stated that it intended to work on the inquiry procedures based on the
Act on General Rules for National Taxes effectively and efficiently in considerationof the effects of its utilization, since there were various restrictions, such as theneed for coordination with the granting agencies in obtaining data and budgetary
restrictions. The NTA has not deliberated on the development of a specific system
for matching the details in tax returns and the data on subsidies provided to alarge number of recipients, like sustainable subsidies.

Findings The NTA should consider more effective measures in the current

Findings The NTA should deliberate on the various issues in its medium-tax return examination and inquiry procedures to encourage taxpayers to fileproper tax returns concerning income from subsidies, and to effectively
examine whether income from subsidies has been declared.

to long-term initiatives for enhancing efficiency in and sophisticating taxation
procedures through digital transformation for tax administration.

(Note) Numbers include those of inquiries concerning the subsidies for rent.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

103. Status of COVID-19 Special Loans provided by Japan Finance Corporation
and Other Financial Institutions (Report on Specific Matters)

Japan Finance Corporation
Shoko Chukin BankJapan Finance Corporation (JFC), Shoko Chukin Bank (SCB) and other financial institutions provided cash flow support to cope with COVID-19.
By the end of March 2023, major loans provided by them amounted to 21 trillion yen for 1.31 million cases.

Backgroundof the Audit

Of which, the following three loans (COVID-19 special loans) amounted to 19 trillion yen for 1.18 million cases (90% of the overall total):(i) COVID-19 special loans to small and medium enterprises (SMEs) (mainly micro/small businesses) provided by JFC(the micro business and individual unit’s operation (the MBI unit’s operation)),(ii) COVID-19 special loans to SMEs provided by JFC (the SMEs unit’s operation), and (iii) crisis loans to SMEs by SCB.
Many COVID-19 special loans came due for repayment and there were an increasing number of loans that required repayment of principal
and interest.
The number of bankruptcies of SMEs in relation to COVID-19 has increased.
1. The total balance of COVID-19 special loans was 14.3085 trillion yen for 989,267 cases as of the end of FY2022.
It was considered that there were a considerable number of cases where the loans were fully repaid through refinancing.
Write-offs of loan claims amounted to 69.7 billion yen for 7,291 cases (as of the end of FY2022). Risk-monitored loans and partial direct
write-offs (Note) amounted to 878.5 billion yen and 124.6 billion yen, respectively (as of the end of FY2022).

Status of
the Audit(Note) A method to offset assets through write-off in lieu of making allowance for doubtful accounts, when they are deemed uncollectible

but do not meet the criteria for direct write-off for tax purpose.
2. Examining the financial institutions’ efforts to properly monitor loan applicants’ circumstances under the relaxation measures, the Board
was not able to confirm that JFC had sufficiently monitored loan applicants in some cases of the MBI unit’s operation.
3. Regarding the management of loan claims, JFC did not periodically monitor borrowers’ financial conditions based on their financial statements
and other information, but followed them up and offered support for early business improvement in the MBI unit’s operation.
Regarding the write-off that is made when the entire amount of a loan claim is deemed uncollectible, JFC made decisions to write off someloan claims without sufficiently ascertaining the borrowers’ economic difficulties that were the grounds for the write-off, in the MBI unit’s operation.

Findings

Copyright©2023

JFC and SCB should continue to monitor borrowers’ situation appropriately for COVID-19 special loans and other loans refinanced from them.
(Audit Status 1)
When JFC provides relaxation measures in the MBI unit’s operation in response to requests of relevant ministries and agencies in future
emergencies, it should endeavor to ensure that loan applicants’ situation is properly monitored. (Audit Status 2)
For the MBI unit’s operation, JFC should continue making efforts to monitor borrowers’ situation and provide support accordingly, and to verify
the grounds for deciding write-offs for those loan claims that were written off on the grounds of the borrowers’ economic difficulties based on
the results of the outsourced examination and take measures as necessary. (Audit Status 3)
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 FY2022 Audit Report (Japanese only).

113. Status of COVID-19 Special Loans provided by Japan FinanceCorporation and Other Financial Institutions (Report on Specific Matters)
Background of the Audit

Shoko Chukin Bank

< Figure. 1: Conceptual diagram of the cash flow support >Private financial
institutions

The government• Since March 2020, Japan Finance Corporation(JFC), Shoko Chukin Bank (SCB) and otherfinancial institutions have provided cash flow
support (loans, credit guarantee, and interest
subsidies) to small and medium enterprises (SMEs)
that were temporarily facing deterioration ofbusiness conditions due to the effects of COVID-19[(i) Support 1 to 3 in Figure. 1].

(ii) Financial support
Loans: 16.5178 trillion yen
Capital contribution: 10.9568 trillion yen
Subsidies: 4.4338 trillion yen

Loans (zero-zeroloans by private
financial institutions
for those who meet therequirements)(i) Support - 2: Credit guarantee: 35.9312 trillion yen

JFC, SCB and other financial institutions• The government provided financial support to JFC
and other financial institutions [(ii) in Figure. 1], andit requested them to endeavor to simplify and speed
up examinations so that they would be able torespond to business operators' demand for funds
promptly.
• Many COVID-19 special loans (virtually interest-free
and unsecured loans for those who meet therequirements) came due for repayment and there
were an increasing number of loans that required
repayment of principal and interest (while regarding
virtually interest-free and unsecured loans by private
financial institutions [zero-zero loans], many will
come due for repayment in the first half of FY2024).
[Figure. 2].

Japan Finance Corporation(i) Support - 3: Interest subsidies: 695.9 billion yen(i) Support - 1: Loans: 21.8748 trillion yen
Of which, COVID-19 special loans (Note) : 19.4365 trillion yen(virtually interest-free and unsecured loans for those who meet the requirements)

SMEs(Note) (i) COVID-19 special loans to SMEs (mainly micro/small businesses) provided by JFC (the MBI unit’s operation),(ii) COVID-19 special loans to SMEs provided by JFC (the SME unit’s operation), and(iii) Crisis response loans to SMEs provided by SCB< Figure. 2 Time to commence repayment of COVID-19 special loans and zero-zero loans >（件）(Cases)80,000新型コロナ特別貸付等
COVID-19 special loans

新型コロナ特別貸付等
COVID-19 special loans

2年7月、34,755件、6％July. 2020: 34,755 cases, 6%

3年6月、61,209件、32％
June. 2021: 61,209 cases, 32％

70,000新型コロナ特別貸付等
COVID-19 special loans

60,000

5年6月、36,213件、78％
June. 2023: 36,213 cases, 78％
新型コロナ特別貸付等
COVID-19 special loans

50,000COVID-19
special loans by the JFC
日本公庫等の4年6月、39,490件、55％
June. 2022: 39,490 cases, 55％

新型コロナ特別貸付等

40,000

民間ゼロゼロ融資
Zero-zeroloans by private financial institutions

30,00020,00010,000
0

令和2年
2020

Copyright©2023

Board of Audit of Japan

Mar. 6月
Jun.
3月

Dec.
12月

2021 Jun.
3年6月

Dec.
12月

2022 Jun.
4年6月

Dec.
12月

2023 Jun.
5年6月

Dec.
12月

Sept. 2023

2024 Jun.
6年6月

Dec.
12月

2025 Jun.
7年6月

Dec.
12月

2026 Jun.
8年6月

Dec.
12月

2027 Jun,
9年6月

Dec. 10年4月
2028 Apr.
12月

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2022 Audit Report (Japanese only).

12

3. Status of COVID-19 Special Loans provided by Japan FinanceCorporation and Other Financial Institutions (Report on Specific Matters)
Audit Status 1-1

19.4365
trillion yen 19兆4365億円
for 1,187,201 cases
1,187,201件(i) The amount of write-offs (that are made when the entire amount of a loan
claim is deemed uncollectible) was 69.7 billion yen.
Both the number of cases and the amount of write-offs increased year byyear.

<〈4年度末時点の状況〉
Status as of the end of FY2022 >Repaid返済
5.0582 trillion
5兆0582億円
yen

Loanbalance
貸付残高989,267件
14.3085
trillion yen14兆3085億円
for 989,267 cases

Including
借換えによるもの
repayment
throughも含まれている。
refinancing< Status of repayment of principals >〈元金返済等の状況〉

Allowancefor
4年度末時点のdoubtful accounts
as of貸倒引当金
the end of
FY20222879億円
0.2879trillion yen< Status of risk-monitored loans >〈リスク管理債権等の状況〉

元金返済中
Being repaid
7.5665trillion yen
670,141件
for7兆5665億円
670,141 cases

In据置期間中
grace period
5.9576
trillion yen
254,399件
for 5兆9576億円
254,399 cases

正常債権claims
Ordinary
13.5064
trillion yen
13兆5064億円

Board of Audit of Japan(i) Write-offs①償却
69.7 billion
yen for
7,291件
7,291 cases697億円(ii) Modifications of②条件変更中conditions
53,921件
6654億円
665.4 billion
yen
for 53,921 cases(iii) Overdue③延滞等
119.5 billion yen
11,651件
for 11,6511195億円
cases

Risk-monitored④(iv)リスク管理債権
loans

8785億円
878.5
billion yen(v) Partial direct⑤
部分直接償却
write-offs(ii) The balance of loans for which conditions were modified (easing of loan
conditions by extending repayment periods or grace periods or reducing
monthly repayment amounts) increased significantly from the previous
fiscal year at the end of FYs 2021 and 2022, respectively.
(iii) The balance of loans that became overdue (delay in repayment ofprincipals and interest, bankruptcies) increased significantly from theprevious fiscal year, at the end of FYs 2021 and 2022, respectively.

(iv) The amount of risk-monitored loans was 878.5 billion yen, and it
increased in the MBI unit’s operation and the SME unit’s operation of
JFC and in the COVID-19 loans as a whole.

124.6
billion yen
1246億円< Status of risk-monitoredloans >
〈リスク管理債権の内訳〉
Substandard
要管理債権
assets4929億円
492.9
billion yen

19.4365 trillion yen was provided in loans by the end of FY2022. The loanbalance was 14.3085 trillion yen, of which over 90% consisted of loan
claims for which principals were being repaid or in the grace period.

In the meantime…

Loans
provided by the end of FY2022
令和4年度末までの貸付実績

Copyright©2023

Shoko Chukin Bank

Status of loan claims for COVID-19 special loans< Status of loan claims for COVID-19 special loans as of the end of FY2022 >Of which,
うち完済
paid off
190,643件
3.3305trillion yen
for3兆3305億円
190,643 cases

Japan Finance Corporation

危険債権
3731億円Doubtful claims
373.1 billion yen

Bankruptcy or
破産更生債権及びreorganization
claims and
これらに準ずる債権
other equivalent claims
124億円
12.4
billion yen(v) As of the end of FY2022, the amount of partial direct write-offs (amethod to offset assets through write-off in lieu of making allowance for
doubtful accounts, when they are deemed uncollectible but do not meetthe criteria for direct write-off for tax purpose) was 124.6 billion yen.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2022 Audit Report (Japanese only).

13

3. Status of COVID-19 Special Loans provided by Japan FinanceCorporation and Other Financial Institutions (Report on Specific Matters)< (i) Changes in the amounts of write-offs for COVID-19 special loans>
(億円)
(100
million yen)

5000

The amount increased year by year.

600

4500
4000

500

JFC's
loans (MBI Unit operation)
日本公庫の国民生活事業

400

379

日本公庫の中小企業事業
JFC'sloans (SME Unit operation)

300

商工中金
SCB's
loans
－

0
2年度
FY2020

令和元年度
FY20193年度
FY2021

60

700

21

11

47
35

500
0

500

6000

868

200

21

30

70

令和2年度末FY2020
end

110

104
66

3年度末
FY2021
end

684

320

SCB's
loans
商工中金

3年度末
FY2021end

4年度末
FY2022end

The balances of risk-monitored loans increased in the MBI
unit’s operation and the SME unit’s operation of JFC, and in
the total amount for the units as a whole.

5000

JFC's
loans (MBI Unit operation)
日本公庫の国民生活事業

4000

223

300

562

< (iv) Changes in the balances of risk-monitored loans
for COVID-19 special loans >JFC'sloans (SME Unit operation)
日本公庫の中小企業事業

336

400

367

令和2年度末FY2020 end

4年度
FY2022

JFC's 日本公庫の国民生活事業
loans (MBI Unit operation)

600

日本公庫の中小企業事業
JFC's loans (SME Unit operation)
1256

(100
million yen)
(億円)

The amounts at the end of FYs 2021 and 2022
increased significantly from the previous fiscal
year, respectively.

0

2145

1000

(100
million yen)
（億円）

100

JFC's loans (MBI Unit operation)
日本公庫の国民生活事業

3000

1500

< (iii) Changes in the balances of loan claims (overdue)
for COVID-19 special loans>

800

3500

2000

30

13

4712

The amounts at the end of FYs 2021 and 2022
increased significantly from their respective
previous fiscal years.

2500

178

200

900

< (ii) Changes in the balances of loan claims (modification of conditions)for COVID-19 special loans >(100
million yen)
（億円）

700

1000

Shoko Chukin Bank

Status of write-offs, modification of conditions, overdue and risk-monitored loans

Audit status 1-2

100

Japan Finance Corporation

SCB's
loans
商工中金
4年度末end
FY2022

3000

3234

JFC's
loans (SME Unit operation)
日本公庫の中小企業事業

2136

592

3417

2469

2000
1000

5018

SCB's
loans
商工中金

77

153

349

3年度末
FY2021end

4年度末
FY2022
end

0
令和元年度末FY2019 end

2年度末
FY2020end

Findings

JFC and SCB should continue to monitor borrowers’ situation appropriately for COVID-19 special loans and other loans refinanced from them.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

14

3. Status of COVID-19 Special Loans provided by Japan FinanceCorporation and Other Financial Institutions (Report on Specific Matters)

Japan Finance Corporation
Shoko Chukin Bank

Audit Status 2
Audit Status 3
Status of relaxation measures provided for examination procedures Status of the management of loan claims for COVID-19 special loans
for COVID-19 special loans• With regard to the simplification of documents to collect in examination
procedures in the MBI unit’s operation, JFC took measures to omit
documents, such as statements of cash receipts and disbursement,
and trial balances after the latest accounting period (relaxation
measures) nationwide, since many borrowers did not prepare these
documents.
• Under the relaxation measures, JFC adopted a policy to record thegrounds for approving loans concretely in the prescribed column of aloan document and check a loan applicant's current status of cash
management.

The Board was not able to confirm that JFC had sufficiently monitor thesituation of the loan applicants in 59 cases (loans: 589.66 million yen).
More specifically,• The grounds for approving loans were not sufficiently described in theprescribed column of a loan document.
• A loan document did not contain concrete descriptions to the effectthat the current status of cash management of the loan applicant waschecked.

• As JFC managed an enormous number of loan claims in the MBI unit’s operation,
it did not monitor borrowers’ financial conditions based on their financial
statements and other information periodically but ascertained them when loan
conditions were modified or on some limited occasions.
However, since September 2020, JFC has followed them up and offered support
for early business improvement.
• It has a policy to write off a loan claim when its entire amount was deemed
uncollectible due to such reasons as a borrower’s bankruptcy and carefully makes
a decision on the write-off.

Regarding write-offs of loan claims for which examinations of the borrowers’ living
conditions were outsourced, there were 30 cases where JFC made decisions towrite off loan claims without sufficiently ascertaining the borrowers’ economic
difficulties that were the grounds for the write-off.
(Written-off amount out of the loans totaling 335.61 million yen: 335.04 million yen)Findings

Findings

When JFC provides relaxation measures in the MBI unit’s
operation in response to requests from relevant ministries andagencies in future emergencies, it should endeavor to ensure thatloan applicants’ situation is properly monitored.

For the MBI unit’s operation, JFC should continue making efforts to monitor
borrowers’ situation and provide support accordingly, and verify the grounds
for deciding write-offs for those loan claims that were written off on the
grounds of the borrowers’ economic difficulties based on the results of theoutsourced examination and take measures as necessary.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

15

4. Status of Use of Next Generation Sequencers(Presentation of Opinions)

Outline of
the Project

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

The Ministry of Health, Labour and Welfare (MHLW) subsidized prefectures for the installment of next generation sequencers for the
purpose of developing testing systems for COVID-19, in the Facility Development Project For Infection Testing Institutions using theEmergency Comprehensive Support Grant For COVID-19 (For Medical Care).
Next generation sequencers were installed in private testing institutions (private testing companies, universities, and medical institutions),
in addition to public health institute in prefectures and other local governments.
Next generation sequencers are to be used for whole-genome analysis of the novel coronavirus with the aim of identifying infection
routes and monitoring the emergence of mutant strains.
According to the grant guideline, private testing institutions are "required to ensure a system to promptly and surely conduct tests,
regardless of holidays, when prefectures and other local governments request them to conduct administrative tests based on the
Infectious Diseases Control Law.” (Note)(Note) Act on Prevention of Infectious Diseases and Medical Care for Patients Suffering Infectious Disease

Audit
Results

In response to the Board of Audit’s inquiry, the MHLW stated that “developing testing systems” in the purpose of the project means "tostrengthen systems for tests (administrative tests) to be conducted by prefectures and other local governments based on the Infectious
Diseases Law."
Out of 63 units of next generation sequencers installed in 18 prefectures in FYs 2020 and 2021 (grant amount: 1.39672 billion yen), 21
units installed in 20 private testing institutions in 8 prefectures (grant amount: 586.53 million yen ) have never been used foradministrative tests in line with the purpose of the project.
The 20 private testing institutions installed next generation sequencers with the intention of developing their own testing systems, or
supposing that they would receive requests for administrative tests in the future. However, at the time of the installation, they did notconduct deliberations necessary for promptly and surely conducting administrative tests, with the prefectures and other local
governments.
Although 8 prefectures installed next generation sequencers in the 20 private testing institutions, they have never requested theinstitutions to conduct administrative tests since the installation.
As descriptions in the grant guideline are not necessarily clear, the 8 prefectures considered that next generation sequencers could
be installed even in private testing institutions that did not conduct deliberations necessary for promptly and surely conducting
administrative tests with them, under this project. Thus, their understanding of the purpose of the project was insufficient.

Presentationof Opinions

In order to ensure that the next generation sequencers will be utilized effectively in the future, the MHLW should・inform prefectures again about the purpose of the project and have them consider means to ensure that next generation sequencers
installed in private testing institutions are used in line with the purpose; and・instruct prefectures to promptly take such measures as undertaking procedures for the disposition of assets if they find any next
generation sequencer that would not be used in line with the purpose of the project.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

16

4. Status of Use of Next Generation Sequencers(Presentation of Opinions)

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

Installation of Next Generation Sequencers by Using the Emergency Comprehensive Support Grant For COVID-19 (For Medical Care)(Facility Development Project For Infection Testing Institutions)
The purpose of the Facility Development Project For Infection
Testing Institutions is to develop testing systems for COVID-19.

Ministry of Health, Labour and Welfare (MHLW)
Request for whole-genome analysis

Provision of the grantPrefectures (local hygiene research centers)
Provision of subsidies

Request forwhole-genome
analysis

Municipalities(e.g., public health institutes,
public health centers)

Audit Results

Provision of subsidies

Private testing institutions(private testing companies, universities,
and medical institutions)

Installed next generation sequencers
were not used
Next generation sequencers installed in FY2020 and FY2021(Projects subject to audit)

Of which, those that have neverbeen used in line with the purposeof the project

Project implementing
entities

18 prefectures

8 prefectures

Number of units

63

21

Amount of provided
Grant

1.39672 billion yen

586.53 million yen

Placesfor installation

18 prefectures and
27 private testing institutions

20 private testing institutions

The MHLW requests prefectures and other local governments
to conduct whole-genome analysis of novel coronavirus basedon the Infectious Diseases Law.
As equipment necessary for whole-genome analysis, next
generation sequencers were installed in public health institutes
and private testing institutions.

Next generation sequencer

Whole-genome analysis

Detect virus mutations(Purpose of the project confirmed with the MHLW)• To strengthen systems for tests (administrative tests) to be conducted by
prefectures and other local governments based on the Infectious Diseases Law.
(Reasons for non-use)• Prefectures and other local governments, and private testing institutions did notconduct deliberations necessary for promptly and surely conducting
administrative tests.
• Prefectures have never requested administrative tests since the installation.
• As descriptions in the grant guideline are not necessarily clear, prefectures did
not sufficiently understand the purpose of the project.

Presentation of Opinions
In order to ensure that the next generation sequencers will be utilized effectively in the future, the MHLW should・inform prefectures again about the purpose of the project and have them consider means to ensure that next generation sequencers installed
in private testing institutions are used in line with the purpose; and・instruct prefectures to promptly take such measures as undertaking procedures for the disposition of assets if they find any next generation
sequencer that would not be used in line with the purpose of the project.
Copyright©2023

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 FY2022 Audit Report (Japanese only).

175. Return of Excess Amount Paid by Rough Estimate in the Subsidy
Program for Sustaining Businesses (Measures Taken)

Outlineof theProgram

Organization for Small & Medium Enterprises
and Regional Innovation
582.26 million yen (Improper amount)

The Organization for Small & Medium Enterprises and Regional Innovation (SME Support JAPAN) implemented a
program to provide subsidies for sustaining small businesses (sustaining subsidies) to small businesses that preparedbusiness plans contributing to improving productivity and made efforts for sales channel development (subsidy program)as part of the productivity revolution project aiming to support sales channel development and capital investment ofsmall businesses.
The subsidy program is categorized into an ordinary-type and special type to cope with COVID-19 (COVID-19-type) thatwas implemented using the COVID-19-related operating expense grant, which was appropriated in the supplementarybudget based on the emergency economic measures for response to COVID-19.
With regard to the COVID-19-type subsidy program, SME Support JAPAN entrusted its secretariat work, including thatfor paying the sustaining subsidies, to the Central Federation of Societies of Commerce and Industry (CFSCI) up until
the end of FY2023.
SME Support JAPAN was allowed to pay funds for providing COVID-19-type sustaining subsidies by rough estimate to
the CFSCI and paid a total of 15.1 billion yen by rough estimate to the CFSCI from June 2020 to November 2021.

Audit
Results

The amount of program expenses that the CFSCI actually paid (actual amount of expenses) was 14.51773 billion yen in
total as of the end of FY2021, and the payment of COVID-19-type sustaining subsidies to small businesses wascompleted by March 2022.
⇒ 582.26 million yen, as the amount of difference between the 15.1 billion yen paid by rough estimate and the amount of
actual expenses of 14.51773 billion yen, was unlikely to be used in April 2022 onward.
However, program expenses were to be settled after the completion of the entrusted business operations at the end of
FY2023, and therefore, the aforementioned 582.26 million yen was continuously held by the CFSCI and was not able tobe utilized for other COVID-19-related programs in the productivity revolution project.

Measures
Taken

In May 2023, SME Support JAPAN had the CFSCI return the aforementioned amount that was unlikely to be used.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

18

5. Return of Excess Amount Paid by Rough Estimate in the Subsidy
Program for Sustaining Businesses (Measures Taken)

・Program to provide sustaining subsidies to small businesses that preparedbusiness plans contributing to improving productivity and made efforts forsales channel development.

SME Support
JAPAN・The subsidy program for sustaining businesses was categorized into theordinary-type and the special type to cope with COVID-19 (COVID-19-type)that was implemented using the COVID-19-related operating expense grant,
which was appropriated in the supplementary budget based on theemergency economic measures for response to COVID-19.
・SME Support JAPAN was allowed to pay funds for providing COVID-19-typesustaining subsidies by rough estimate to the CFSCI, which served as the
Secretariat, and paid a total of 15.1 billion yen by rough estimate from June
2020 to November 2021.

(Reason why the amount unlikely to be used for the project was continuously
held by SME Support JAPAN)
Program expenses were to be settled after the completion of the entrusted
business operations at the end of FY2023.

Copyright©2023

Micro/small businesses(i) Application for sustaining subsidies(ii) Decision to grant sustaining subsidies

CFSCI(iii) Payment of funds for sustaining
subsidies⇒15.1 billion yen by rough estimate(as of the end of FY2021)(Note) (a) in the Table below(iv) Payment of sustaining subsidies(Secretariat)⇒Actual amount of expenses(as of the end of FY2021)
14.51773 billion yen(Note) (b) in the Table below

The amount unlikely to be used for the program remained unreturned.

The payment of COVID-19-type sustaining subsidies by the CFSCI was completed, but
582.26 million yen was continuously held by the CFSCI and was not able to be utilized
for other COVID-19-related programs in the productivity revolution project.

Measures Taken

582.26 million yen (Improper amount)

Flow of sustaining subsidies (COVID-19-type)

Outline of the Subsidy Program for Sustaining Businesses

Audit Results

Organization for Small & Medium Enterprises
and Regional Innovation

Amount paid to
CFSCI by roughestimate (as ofthe end of FY2021)(a)Actual amount ofexpenses paid by
CFSCI (as ofthe end of FY2021)(b)

Amount unlikely to
be used in
April 2022 onward(a-b)

15.1 billion yen

14.51773 billion yen

582.26 million yen

In May 2023, SME Support JAPAN had the CFSCI return the aforementioned amount that was unlikely to be used.

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 FY2022 Audit Report (Japanese only).

19

6. Project to Install Negative Pressure Devices in Nursing Homes(Measures Taken)

Ministry of Health, Labour and Welfare
56.85 million yen (Improper amount)283.44 million yen (Background amount)

Outline ofthe
Negative
Pressure
DeviceInstallation
Project

In order to support projects based on plans prepared by prefectures, the Ministry of Health, Labour and Welfare (MHLW)
provided the medical and nursing care system reform promotion grant in an amount equivalent to two-thirds of the expenses
necessary for creating relevant funds in prefectures.
The MHLW included the project to support expenses for installing simple negative pressure devices in nursing homes(installation project) in the fund projects as part of the projects to support measures to prevent the spread of COVID-19.
Prefectures provide grants by using the funds to nursing home operators directly or via municipalities.
The installation project covers work to install simple negative pressure devices in rooms to make them into negative-airpressure rooms, and to install simple ducts for reducing the risk of infection spread in nursing homes by confining the virus.
(Some simple negative pressure devices do not necessarily require duct work.)
Eligible expenses are those for installing simple negative pressure devices, such as equipment purchase expenses,
construction expenses, construction contract expenses, and clerical work expenses.
(Expenses to purchase spare parts (e.g., spare replacement filters) are not eligible.)

Audit
Results

As necessary duct work was not conducted, rooms did not function as negative-air-pressure rooms.
(30 cases; amount equivalent to the grant: 35.11 million yen)
Expenses of purchasing spare parts, which are not eligible, were included in project expenses.
(i) Projects where expenses of purchasing spare parts were able to be extracted(171 cases; amount equivalent to the grant: 21.74 million yen)(ii) Projects where expenses including those of purchasing simple negative pressure devices were integrally recorded
and expenses of purchasing spare parts were not clearly indicated(294 cases; amount equivalent to the grant: 283.44 million yen (background amount))

Measures
Taken

The MHLW demanded that the rooms be made to function as negative-air-pressure rooms by installing ducts or other means.
The MHLW issued a written notification to prefectures and informed them that when installing a simple negative pressuredevice that requires duct work, the duct work should be conducted and that expenses of purchasing spare parts should not
be included in project expenses.
(The MHLW advised prefectures to inform municipalities and nursing home operators of the notification.)

Copyright©2023

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 FY2022 Audit Report (Japanese only).

20

6. Project to Install Negative Pressure Devices in Nursing Homes(Measures Taken)
Outline of the Medical and Nursing Care System Reform
Promotion Grant

Ministry of Health, Labour and Welfare
56.85 million yen (Improper amount)283.44 million yen (Background amount)～ Outline of the Negative Pressure Device Installation Project• In order to support projects implemented based on plans prepared by
prefectures, the MHLW provided the medical and nursing care system
reform promotion grant for creating relevant funds.
• Prefectures provided grants by using the funds to nursing home
operators directly or via municipalities.

The MHLW revised the guidelines for management and administration of the fundprojects and included the negative pressure device installation project that aimed to
install simple negative pressure devices in rooms to make them into negative-airpressure rooms and to install simple ducts in the fund projects as part of the projects
to support measures to prevent the spread of COVID-19 (there are cases where duct
work is not necessary.).

Audit Results 1 Required duct work was not conducted and rooms did not function as negative-air-pressure rooms(Negative-air-pressure room)(Reason why nursing home operators acted incorrectly)

As required duct work was not conducted, rooms did notfunction as negative-air-pressure rooms.
(30 cases; amount equivalent to the grant: 35.11 million yen)Nursing home operators mistakenly believed that rooms would
function as negative-air-pressure rooms only by installing negative
pressure devices without duct work, as the prefectural written
notification states that "it does not matter whether duct work is
conducted or not."Audit Results 2 Expenses of purchasing spare parts were included in project expenses
Expenses of purchasing spare replacement filters (expenses of purchasing spare parts), which are not eligible, were
included in project expenses.
(i) Projects where expenses of purchasing spare parts were able to be extracted(171 cases; amount equivalent to the grant: 21.74 million yen)(ii) Projects where expenses including those of purchasing simple negative pressure devices were integrally
recorded and expenses of purchasing spare parts were not clearly indicated(294 cases; amount equivalent to the grant: 283.44 million yen (background amount))

Source: Provided by MHLW

(Reason why nursing home operators acted incorrectly)
As descriptions in the guidelines for management andadministration were unclear, nursing home operators
mistakenly believed that expenses of purchasing spareparts could be included in project expenses.

Measures Taken
・The MHLW demanded that the rooms be made to function as negative-air-pressure rooms by installing ducts or by other means.
・The MHLW issued a written notification to prefectures and informed them that when installing a simple negative pressure device that requires duct work,
the duct work should be conducted and that expenses of purchasing spare parts should not be included in project expenses.
(The MHLW advised prefectures to inform municipalities and nursing home operators of the notification.)
Copyright©2023

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 FY2022 Audit Report (Japanese only).

21

7. Excessive Payment of the Emergency Comprehensive Support
Grant For COVID-19 (For Medical Care ) (Improprieties)

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

Outlineof theProject

The Ministry of Health, Labour and Welfare (MHLW) provides prefectures with the Emergency Comprehensive Support
Grant For COVID-19 (For Medical Care) [grant rate: 10/10] for urgent needs in response to COVID-19, such as preventionof the spread of infection and development of medical care delivery systems, in order to assist with their efforts to takethe measures flexibly depending on local circumstances.
Expenses eligible for the grant were calculated for each project category specified in the grant guideline. In such cases as
the COVID-19 Intensive Medical Institution System Development Project, the grant’s upper limit per unit is set for eachtype of eligible installing equipment.
e.g., Expenses to transport COVID-19 patients are eligible in the COVID-19 Control Project⇒Transport to designated accommodations for medical treatment: eligible⇒Transport to medical institutions for hospitalization: Ineligible (covered by another national subsidy [grant rate: ½])
e.g., Expenses to purchase simple negative pressure devices (Note) are eligible in the Emergency, Perinatal & PaediatricCare System Securing Project For Acceptance Of Suspected COVID-19 Patients. (Note: Devices to negatively
pressurize the room air to confine viruses inside)

Audit
Results

As for the 7 projects below, the major cases found were as follows:
Grants were provided in excess because of the inclusion of ineligible expenses, such as those for transporting COVID-19
patients to medical institutions for hospitalization and for purchasing consumables.
(i) COVID-19 Control Project:
6 cases; 233.11 million yen(ii) Outpatient Facility Development Project For Returnees & People Who Had Contact With COVID-19 Patients:
3 cases; 26.64 million yen(iii) Facility Development Project For Infection Testing Institutions:
5 cases; 21.48 million yen(iv) Medical Team (incl. DMAT/DPAT) Dispatch Project:
1 case; 19.45 million yen
Grants were provided in excess because the expenses for installing equipment were calculated over the grant’s upper limit
per unit.
(v) COVID-19 Intensive Medical Institution Facility Development Project:
6 cases; 206.15 million yen(vi) Facility Development Project For Medical Institutions Hospitalizing COVID-19 Patients:
6 cases; 27.88 million yen
Simple negative pressure devices installed with the grant did not achieve the purpose of the grant as they failed to negatively
pressurize the room air.
(vii) Emergency, Perinatal & Paediatric Care System Securing Project For Acceptance Of Suspected COVID-19 Patients:
2 cases; 4.33 million yen

Copyright©2023

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 FY2022 Audit Report (Japanese only).

22

7. Excessive Payment of the Emergency Comprehensive Support
Grant For COVID-19 (For Medical Care ) (Improprieties)

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

Outline of the Excessive Payment of Emergency Comprehensive Support Grant For COVID-19 (For Medical Care )Project name

Copyright©2023

Details of major cases(Figures are the totals of improper spending for each project.)(i) COVID-19 Control Project

Ineligible expenses were included.
[See the next page.]
6 cases; 233.11 million yen(ii) Outpatient Facility Development Project For
Returnees & People Who Had Contact With
COVID-19 Patients

Ineligible expenses were included.
3 cases; 26.64 million yen(iii) Facility Development Project For Infection
Testing Institutions

Ineligible expenses were included.
5 cases; 21.48 million yen(iv) Medical Team (incl. DMAT/DPAT) Dispatch
Project

The project expenses were ineligible.
1 case; 19.45 million yen(v) COVID-19 Intensive Medical Institution
Facility Development Project

The grant was provided in excess of its upper limit per unit.
[See the next page.]
6 cases; 206.15 million yen(vi) Facility Development Project For Medical
Institutions Hospitalizing COVID-19 PatientsThe grant was provided in excess of its upper limit per unit.
6 cases; 27.88 million yen(vii) Emergency, Perinatal & Paediatric Care System
Securing Project For Acceptance Of Suspected
COVID-19 Patients

The facilities installed with the grant did not achieve the purpose of
the grant.
2 cases; 4.33 million yen

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 FY2022 Audit Report (Japanese only).

23

7. Excessive Payment of the Emergency Comprehensive Support
Grant For COVID-19 (For Medical Care ) (Improprieties)

Ministry of Health, Labour and Welfare
539.07 million yen (Improper amount)(i) Outline of the COVID-19 Control Project(v) Outline of the COVID-19 Intensive Medical Institution Facility
Development Project

The MHLW provides the grant to implementing agencies, such asprefectures, in order to help them secure sickbeds for COVID-19
patients, thereby enhancing public health (grant rate: 10/10).

The MHLW provides the grant to intensive medical institutions for COVID-19
in order to assist them in installing equipment necessary for providing
advanced and proper medical care, thereby developing medical caredelivery systems.

Eligible expenses are those for transporting COVID-19 patientsto designated accommodations for medical treatment.
Transport to medical institutions for hospitalization is covered byanother national subsidy (grant rate: 1/2) and ineligible for this grant.
Eligible for the grantIneligible

Transport

Transport
Eligible for another subsidy

Audit Results
Expenses for transporting COVID-19 patients to medical
institutions for hospitalization, which are ineligible, were included.
6 cases; an excess of 233.11 million yen

Eligible equipment includes diagnostic ultrasound imaging systems
and blood purifiers.
The grant’s upper limit per unit is set for each type of such equipment.
(Note) When purchasing multiple units of the same type equipment, the amountof the grant for each unit shall be the lesser one in comparison between the actual
expenditures for each unit and the grant’s upper limit per unit.

Audit Results
Regarding the purchase of multiple same-type equipment with different unit
prices, comparison was made between the total amount of actual expenditure forthe equipment and the amount calculated by multiplying the grant’s upper limit
with the number of same-type equipment. In consequence, looking at each unit,
some exceeded the grant’s upper limit per unit in the calculation of the amount ofgrant.
6 cases; an excess of 206.15 million yen
Calculation Example: the amount of the grant when purchasing the same type equipment A and B
with different prices (the figures in bold are the grant amounts provided.)
Correct:
The actual expenditure for equipment A > the upper limit , That for equipment B ＜ the upper limit
Incorrect: The actual expenditure for equipment A + That for equipment B > the upper limit × 2(Note) Additionally, in the three projects from (ii) to (iv) in the previous page,
grants were provided in excess for such reasons as ineligible
expenses were included.
9 cases; 67.59 million yen

Copyright©2023

Board of Audit of Japan(Note) Additionally, in Project (vi) of the previous page,
the grant was provided in excess of its upper limit per unit.
6 cases; 27.88 million yen

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2022 Audit Report (Japanese only).

24

8. Settled Amount of Refunds in Calculation of the State Contribution
to the Livelihood Assistance Subsidy (Demand for Measures)
The Outlineof the State
Contribution
to theLivelihood
Assistance
Subsidy

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

The Ministry of Health, Labour and Welfare (MHLW) bears the State contribution to the livelihood assistance, which isequivalent to three-quarters of the expenses required for livelihood assistance that implementing entities (prefectures andmunicipalities) paid to eligible households.
The amount of the contribution is calculated by deducting the settled amount of refunds from assistance recipients, from theamount of the expenses recorded in a project performance report.
The amount of refunds is to be settled by project implementing entities based on the Local Autonomy Law.
When the expenses need to be refunded for reasons such as erroneous payments,(i) the amount that was refunded within the fiscal year should not be included in the amount of the expenses, and(ii) the amount that was not refunded within the fiscal year (unrefunded amount) should be included in the amount of theexpenses of the fiscal year (implementing entities settle the unrefunded amount in the following fiscal year and deduct
the settled amount from the amount of the expenses in the following fiscal year.).

Audit
Results

The Board of Audit examined the contribution paid to 162 implementing entities in 19 prefectures in FYs 2019 and 2020
(1.16294863 trillion yen in total).
On such grounds as that the unrefunded amount was not settled in the following fiscal year, or that the unrefunded amount
was settled but was not recorded as the settled amount of refunds in a project performance report, the unrefunded amountwas, as the settled amount of refunds, not deducted from the amount of the expenses in the following fiscal year.
⇒ In total 165.00 million yen of the contributions were excessively paid to 47 implementing entities in 18 prefectures.
Major causes were as follows:(i) the guideline for contribution does not sufficiently clarify that the unrefunded amount settled in the following fiscal year
should be included in the settled amount of refunds in the following fiscal year, and(ii) implementing entities did not sufficiently understand the method of recording the unrefunded amount in a project
performance report.

Demandfor
Measures

With regard to implementing entities that have yet to undertake procedures to refund the overpaid amount out of the 47
implementing entities that calculated contributions excessively, the MHLW should instruct them to undertake the relevant
procedures promptly.
The MHLW should inform implementing entities that the unrefunded amount settled in the following fiscal year is includedin the settled amount of refund and that it is necessary to settle the unrefunded amount properly and then calculate
the contribution correctly.
In order to accurately ascertain the settled amount of refunds when examining entries in a project performance report,
the MHLW should alter the form of a project performance report to include a column to record the unrefunded amount.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

25

8. Settled Amount of Refunds in Calculation of the State Contribution
to the Livelihood Assistance Subsidy (Demand for Measures)
Outline of the State Contribution to the Livelihood Assistance Subsidy• The MHLW bears the contribution, which is equivalent to three-quarters of theexpenses required for livelihood assistance that implementing entities (prefectures andmunicipalities) paid to eligible households.
• The amount of the contribution is calculated by deducting the settled amount of refunds
from assistance recipients, from the amount of the expenses recorded in a project
performance report.
The amount of refunds is to be settled by project implementing entities based on the
Local Autonomy Law.
• When the expenses need to be refunded for reasons such as erroneous payments,(i) the amount that was refunded within the fiscal year should not be included in theamount of the expenses, and(ii) the amount that was not refunded within the fiscal year (unrefunded amount) should
be settled in the following fiscal year and deducted from the amount of the expenses.

Audit Results

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

Amount to be refunded out of the erroneous payments

Fiscal year
in which erroneous payments
occurred(i) Refunded amount in therelevant fiscal year(ii) Unrefunded amount(Not included in the amount of the expenses)(Included in the amount of the expenses)

Following fiscal year
If processed properly,
the unrefunded amount is to be deductedwhen calculating the contribution
in the following fiscal year.

(ii) Settlement(Included in the settled amount of refunds andexcluded from the amount of the expenses.)

The Board examined the contributions paid to 162 implementing entities in 19 prefectures in FYs 2019 and 2020.

47 implementing entities in 18 prefectures failed to deduct the unrefunded amount as the settled amount of refunds from the amount of the expenses in the following fiscal year,on such grounds as that the unrefunded amount was not settled in the following fiscal year, or that the unrefunded amount was settled but was not recorded as the settled amountof refunds in a project performance report.

In total 165.00 million yen of the contributions
were paid excessively.

(Causes of failure to deduct the unrefunded amount as the settled amount of refunds)
・The guideline for the contribution does not sufficiently clarify the scope of the settled amount of refunds.
・Implementing entities did not sufficiently understand the method of recording the unrefunded amountin a project performance report.

Demand for Measures
・With regard to implementing entities that have yet to undertake procedures to refund the overpaid amount out of the 47 implementing entities that calculated contributions excessively,
the MHLW should instruct them to undertake the relevant procedures promptly.
・The MHLW should inform implementing entities that the unrefunded amount settled in the following fiscal year is included in the settled amount of refund and that it is necessary tosettle the unrefunded amount properly and then calculate the contribution correctly.
・In order to accurately ascertain the settled amount of refunds when examining entries in a project performance report, the MHLW should alter the form of a project performance report
to include a column to record the unrefunded amount.
Copyright©2023

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 FY2022 Audit Report (Japanese only).

26

9. Effects of Subsidies for Health Services for the Elderly andUtilization of Medical Information (Presentation of Opinions)

Outline ofhealthcheckups

Ministry of Health, Labour and Welfare
1.18577 billion yen (Improper amount)
7.60444 billion yen (Background amount)

Associations of medical care services for older senior citizens (Associations) are required to make efforts to implement healthcare services
for senior citizens, including health checkups, targeting older senior citizens who are the insured, based on the Act on Assurance of Medical
Care for Elderly People. The Ministry of Health, Labour and Welfare (MHLW) provides financial support for part of expenses for the healthcheckups conducted by associations using subsidies for the medical care system for elderly in the latter stage of life.
The health checkups are conducted to identify persons who are recommended for medical examinations and who need health guidance,with the aim of preventing diseases.
In the healthcare services for senior citizens, medical information(Note) is not required to be utilized as part of health checkup results.
⇒ For specific health checkups conducted by municipalities under the national health insurance program, it is allowed to utilize medical
information as part of specific health checkup results. (Note) Data of laboratory tests such as blood tests and urine tests that are taken
as part of medical examinations at medical institutions.

Audit
Results< Persons who were recommended for medical examinations and who needed health guidance were not properly identified. >The Board audited subsidies (4.11984 billion yen in total) provided to 22 associations in FY2020.
407 member municipalities of 15 associations (health checkup recipients in the municipalities: 651,986 persons) identified neither
persons who needed recommendations for medical examinations nor those who needed health guidance based on health checkup
results. Subsidies for the health checkup recipients (1.18577 billion yen) did not sufficiently produce expected effects.
< Medical information was not utilized. >The Board audited subsidies (7.60444 billion yen in total) provided to all 47 associations in FY2020.
Out of 4,195,246 health checkup recipients, 791,516 recipients (18.9％) had received blood tests and urine tests similar to those inhealth checkups as part of medical examinations they received at medical institutions in FY2019, and further, among them,472,548 recipients (11.3％) also received similar tests in FY2020.
⇒ If the associations had requested cooperation for the provision of medical information on the premise of consent of the insured,
medical information for a certain number of recipients could have been obtained and subsidies could have been cut down by acertain amount.

Presentationof Opinions

MHLW should thoroughly inform associations of the purpose of health checkups, clearly indicate the necessity forrecommendations for medical examinations and health guidance, and the details and implementation method thereof, andshould consider measures to ascertain the utilization status of health checkup results and to check and provide guidanceon identifying persons requiring the recommendations of medical examinations and health guidance.
MHLW should consider concrete measures to enable associations to utilize medical information.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

27

厚生労働本省
Ministry of Health, Labourand Welfare
11億8577万円(指摘金額)
1.18577 billion
yen (Improper amount)
7.60444 billion yen(Background amount)
76億0444万円(背景金額)

9. Effects of Subsidies for Health Services for the Elderly andUtilization of Medical Information (Presentation of Opinions)
Outline of the Healthcare Project for Senior Citizens
・Implementing entities
Associations of medical care services
for older senior citizens(associations; for each prefecture)・Coverage
Older senior citizens who are the insured(People aged 75 or older or people aged
between 65 and 75 with certain disabilities)

・Service details
Health checkups, health guidance, or other programs
necessary for maintaining and promoting health of older seniorcitizens(Note) Associations are required to make efforts to implement the service.

Purpose of the health checkups and national subsidies"The Guideline for the Implementation of Healthcare Service for Senior Citizens based on the
Act on Assurance of Medical Care for Elderly People " (guideline)
The health checkups are to be conducted for the purpose of properly identifying persons whoneed to receive medical examinations at medical institutions and who need to receive healthguidance, with the aim of preventing onset and worsening of diseases.

Health checkups
Identify persons
Conducted directly by associations or
through their entrustment to municipalities

Recommendations for
medical examinations
Health guidance
Conducted by the unit of municipality throughsuch means as entrustment by associations,for example

Part of expenses for entrustment required for the implementation of the healthcare services is funded by
the national government with subsidies for the medical care system for elderly in the latter stage of life.

Audit Results 1 Persons who were recommended for medical examinations and those who needed health guidance were not properly identified.
When auditing subsidies (4.11984 billion yen in total) provided to 22 associations (915 member municipalities) in FY2020.

407 member municipalities of 15
Associations failed to extract targets
for both recommendations for medical
examinations and health guidance.

The health checkups conducted for 651,986
senior citizens who have addresses in those
407 municipalities failed to achieve thepurpose specified by the Guideline.

Subsidies for the health checkups (1.18577
billion yen) did not sufficiently produce
expected effects.

Presentation of Opinions
MHLW should thoroughly inform associations of the purpose of health checkups, clearly indicate the necessity for recommendations for medical
examinations and health guidance, and details and implementation method thereof, and should consider measures to ascertain the utilization statusof health checkup results and to check and provide guidance on the identification of persons upon providing subsidies.
Copyright©2023

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 FY2022 Audit Report (Japanese only).

28

Ministry of Health, Labour
厚生労働本省and Welfare

9.高齢者保健事業に係る補助金等の効果及び診療情報の活用
9. Effectsof Subsidies for Health Services for the Elderly and Utilization（意見表示）
ofMedical Information (Presentation of Opinions)Audit Results 2

Medical information was not utilized.
An example of the utilization of medical information in specific health checkups(conducted by municipalities under the national health insurance program)

Details of health checkups (basic items)
AST（GOT）(ii) Examination of subjective② 自覚症状及び他覚症状の有無の検査
symptoms
and objective symptoms)

肝機能(vi)⑥Liverfunction
検査test(iii) Height and weight計測③ 身長と体重の検査(iv) BMI ④
measurement
BMIの測定ALT（GPT）(ix)尿検査
Urine
⑨
test
（2項目）
(2 items)

Urine尿糖
glucoseThe insured

Urine
protein
尿たん白

血液検査
（7項目）

(v) Blood pressure⑤ 血圧の測定
measurement

The same as specific healthcheckups except for the omissionof abdomen measurement in (iii)(i) Request for cooperation for the provision of
medical information

Insurer(iii) Provide information via medical
institutions based on consent of the insuredγ－GT（γ－GTP）
Blood test
(7 items)

Measurement

Physicalexamination① 既往歴等の調査(i) Investigationof anamnesis

診察11億8577万円(指摘金額)
1.18577
billion yen (Improper amount)
7.60444 billion
yen (Background amount)
76億0444万円(背景金額)

Neutral
fat
中性脂肪

血中
(vii)⑦
Lipid
blood
test
脂質検査

HDL-cholesterol
HDL－コレステロール

LDL－コレステロール
LDL-cholesterol(viii) Blood⑧ 血糖検査glucosetest(ii) Receive tests for the same items
as those for specific health checkups
as part of medical examinations

Medicalinstitution

fasting blood glucose
空腹時血糖（HbA1c）(HbA1c)In contrast, in the healthcare services
for senior citizens, medical information
is not to be utilized as part of healthcheckup results.

Results of cross-checking medical information and information on health checkups for all the persons who received
health checkups covered by subsidies (7.60444 billion yen in total) provided to all 47 associations in FY2020
・Many older senior citizens were considered to receive medical
examinations for their lifestyle diseases at medical institutions.
・The details of health checkups (basic items) are the same as
those of specific health checkups except for the omission of
abdomen measurement.
⇒It was considered that medical information could be utilized in
the same manner as in the case of specific health checkups.

(i) Health checkup
recipients covered by thesubsidies in FY2020

4,195,246(ii) Out of (i), the number of persons
who had received medical
examinations for the same items (Note)
in FY2019791,516(18.9% out of (i))(iii) Out of (ii), the number of persons
who also received medical
examinations for the same items (Note)
in FY2020

59.7% outof (ii)472,548(11.3% out of (i))

A large number of persons in (iii) were lifestyle disease patients and were supposed to continue receiving outpatient
treatment. By utilizing medical information, subsidies could be cut down by a certain amount for persons for whom
health checkups could be omitted, and thus the healthcare services for senior citizens could be implemented in amore economical manner.
(Note) All items for blood test and urine test, out of the basic items.

Presentation of Opinions

Copyright©2023

MHLW should consider concrete measures to enable associations to utilize medical information.

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 FY2022 Audit Report (Japanese only).

29

10. Construction Methods for Bridge Pier Reinforcement for
Expressways (Presentation of Opinions)

Outline ofbridge pierreinforcementfor
expressways

East Nippon Expressway Co., Ltd., Central Nippon Expressway Co., Ltd.,West Nippon Expressway Co., Ltd.,
Honshu-Shikoku Bridge Expressway Co., Ltd.
60.28839 billion yen, 47.62886 billion yen,
282.43449 billion yen, 22.63957 billion yen (Background amount)

The four companies intend to conduct seismic reinforcement work on bridges of expressways which were designed by applying old
specifications prior to the Specifications for Highway Bridges and Explanations in 1996 and have been used, in order to ensure theperformance of the bridges in the event of an earthquake to minimize damage to them, restore functions of expressways promptly and to allow
expressways to function as emergency transport roads (functional recovery performance).
While measures to prevent bridges from falling and collapsing were completed for all of the 17,605 bridges managed by the four companies,functional recovery performance was not secured for 4,454 bridges as of the time when the 2016 Kumamoto Earthquakes occurred.
➢An earthquake might damage bridge piers, making both inbound and outbound lanes of an expressway impassable (missing links in theevent of an earthquake) and thus the expressway network might not function as emergency transport roads.
The four companies formulated the Basic Plan for Safety and Security on Expressways based on the policies indicated by the Ministry ofLand, Infrastructure, Transport and Tourism.
➢The Basic Plan sets targets to complete reinforcement work for bridge piers (bridge pier reinforcement) for areas with a high probability of alarge earthquake by FY2021 and for the other areas by FY2026, respectively.
The Board conducted an audit of 4,454 bridges for which the functional recovery performance had yet to be achieved, and 403 contracts forbridge pier reinforcement that the four companies concluded from FYs 2016 to 2022 (the contract amount: over 1.26230375 trillion yen in total).
Out of the 4,454 bridges, construction contracts for bridge pier reinforcement were not concluded for 3,059 bridges as of the end of FY2022.
➢An earthquake might bring about missing links for 381 sections on 67 expressways.
Out of the 4,454 bridges, 1,873 bridges were separate-type with a structure wherein separate bridge piers respectively support inbound andoutbound lanes, which run parallel to each other.

Audit
Results

Out of the 1,873 bridges, for all of the 528 bridges for which bridge pier reinforcement was completed, the reinforcement work was conductedsimultaneously for bridge piers for both inbound and outbound lanes, instead of tentatively conducting reinforcement work separately for either
lane.
➢For 1,345 separate-type bridges (for which contracts for bridge pier reinforcement had yet to be concluded), sections with a risk of theoccurrence of missing links in the event of an earthquake could be eliminated earlier by adopting a method of tentatively conducting
reinforcement work separately for either the inbound lane or the outbound lane.
Out of the 4,454 bridges, 89 bridges were in sections that were made into four-lane roads through staged construction (excluding those of the
Honshu-Shikoku Bridge Expressway Co., Ltd.).
➢Although there was no risk of the occurrence of missing links in the event of an earthquake as lanes with bridges for which functional
recovery performance was secured had been additionally constructed in parallel to existing lanes, bridge pier reinforcement was conducted.

Presentationof Opinions
Copyright©2023

The four companies should consider efficient construction methods for bridge pier reinforcement based on conditions of individual sites, decidepolicies for such construction methods in the future, and disseminate them to branch offices or otherwise take measures properly.

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 FY2022 Audit Report (Japanese only).

30

10. Construction Methods for Bridge Pier Reinforcement for
10.高速道路の橋脚補強の整備手法（意見表示）
Expressways (Presentation of Opinions)

East
Nippon Expressway Co., Ltd., Central Nippon Expressway Co., Ltd.,
東日本高速道路（株）・中日本高速道路（株）・West Nippon Expressway Co., Ltd.,
西日本高速道路（株）・本州四国連絡高速道路（株）
Honshu-Shikoku Bridge Expressway Co., Ltd.

602億8839万円・476億2886万円・60.28839 billion yen, 47.62886 billion yen,
282.43449 billion yen, 22.63957 billion yen (Background amount)
2824億3449万円・226億3957万円(背景金額)

Outline of the bridge pier reinforcement for expressways
・The four companies intend to conduct seismic reinforcement work on bridges of expressways which were designed by applying old specifications prior to theSpecifications for Highway Bridges and Explanations in 1996 and have been used, in order to ensure the performance of the bridges in the event of earthquakes tominimize damage to them, restore functions of expressways promptly and to allow expressways to function as emergency transport roads (performance to restore
functions).
・While measures to prevent bridges from falling and collapsing were completed for 17,605 bridges managed by the four companies, the functional recovery
performance was not secured for 4,454 bridges as of the time when the 2016 Kumamoto Earthquakes occurred.
➢An earthquake might damage bridge piers, making both inbound and outbound lanes of an expressway impassable (missing links in the event of an earthquake)and thus the expressway network might not function as emergency transport roads.
(Source)
Website of the East
Nippon Expressway
Co., Ltd.

Audit Results○Contracts for seismic reinforcement work for bridge piers (bridge pier reinforcement)
Out of the 4,454 bridges, contracts for bridge pierreinforcement were not concluded for 3,059 bridges(as of the end of FY2022).

An earthquake might bring about missing links.
(381 sections on 67 expressways)

Separate-type bridge(Before bridge pierreinforcement)○ Bridge pier reinforcement of separate-type bridges with a structure wherein separate bridge piers
respectively support inbound and outbound lanes, which run parallel to each other
Separatetype bridges

3Completed orunder construction528
bridges

1,873 bridges(Out of 4,454
bridges)

Construction
Contracts notconcluded

1,345
bridges

For all of the 528 bridges, a method of tentatively conducting
reinforcement work separately for either the inbound lane or
the outbound lane was not adopted.

(Reference)
In order to promote the development of the expressway
network, the method of tentatively constructing two lanes to
put them into service, and two more lanes to complete afour-lane road has been adopted in the past.

For the 1,345 bridges, sections with a risk of the occurrence of missing links in the event of an earthquake could
be eliminated earlier by adopting a method of tentatively conducting reinforcement work separately for either lane.

○Bridge pier reinforcement conducted at sections that were made into four-lane roads through staged construction
89 bridges out of the 4,454 bridges (excluding thoseof the Honshu-Shikoku Bridge Expressway Co., Ltd.)

Although there was no risk of the occurrence of missing links in the event of an earthquake as lanes with bridges
for which functional recovery performance was secured had been additionally constructed in parallel to existinglanes, bridge pier reinforcement was conducted.

Presentation of Opinions

The four companies should consider efficient construction methods for bridge pier reinforcement based on conditions of individual sites,
decide policies for such construction methods in the future, and disseminate them to branch offices or otherwise take measures properly.
Copyright©2023

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 FY2022 Audit Report (Japanese only).

31

11. Status of Use of Transmission Line Facilities Installed in the Project on Promoting
Advanced Radio Environment Improvements (Presentation of Opinions)

Ministry of Internal Affairs and Communications
3.43066 billion yen (Improper amount)

Outline of the
Project on
Promoting
Advanced
Radio
Environment
Improvements

The Ministry of Internal Affairs and Communications (MIC) provides subsidies for the project on promoting advanced radio
environment improvements, which aims to install facilities necessary for opening radio stations (transmission line facilities)
in order to eliminate areas where radio communications are difficult.
Implementing entities should ensure that radio stations are opened promptly after completing the projects, conduct ex-post
evaluations of the status of achievement of targets (e.g. the number of households where Wi-Fi is installed) which are set in
optical fiber development plans and radio station establishment plans submitted to the Minister of Internal Affairs andCommunications, and publicize the results thereof.

Audit
Results

The Board audited 63 projects by 31 implementing entities from FYs 2019 to 2021 (provided subsidies: 7.29457 billion yen).
Examining the details of the ex-post evaluations of 11 projects out of the 63 projects, while the status of the achievement oftargets was evaluated, the status of the use of installed transmission line facilities was not required to be evaluated, thus
MIC was not able to ascertain whether the facilities were sufficiently utilized or not.
For 31 projects (project expenses: 8.27868 billion yen; provided subsidies: 3.43066 billion yen) out of the 63 projects, theutilization rates(Note) of transmission line facilities were less than 50% and thus the facilities were not sufficiently utilized.
(Note: The rate of the number of used lines against the total number of lines for services, including the internet services thattransmission line facilities can provide)
15 projects out of 46 projects, for which the Board was able to ascertain the achievement rates,(Note) achieved their targets
but their utilization rates were less than 50%.
(Note: The rate of the number of radio stations actually installed against the number of radio stations set as a target)⇒ It is also necessary to evaluate the status of the use of installed transmission line facilities.
⇒ MIC did not sufficiently consider measures to further utilize transmission line facilities.

Presentationof Opinions

MIC should consider methods of evaluating the status of the use of transmission line facilities and should ensure that it canascertain whether they are sufficiently utilized or not based on the evaluation results.
MIC should consider measures to further utilize transmission line facilities that are not sufficiently used so that it can
provide advice to implementing entities as necessary.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

32

11. 11.高度無線環境整備推進事業により整備された伝送用専用線設備のStatus of Use of Transmission Line Facilities Installed in the Project on Promoting
Advanced
Radio Environment Improvements (Presentation of Opinions)
利用状況等（意見表示）

総務本省

Ministry of Internal Affairs and Communications
3.43066
billion yen (Improper amount)
34億3066万円(指摘金額)

Conceptual drawing of the Project on Promoting Advanced Radio
Environment Improvements

Outline of the Project on Promoting Advanced Radio
Environment Improvements
・MIC provides subsidies for the project on promoting advanced radio
environment improvements, which aims to install transmission line
facilities necessary for opening radio stations (e.g., home Wi-Fi) inareas where radio communications are difficult.
・After completing the projects, implementing entities should conductex-post evaluations of the status of the achievement of targets (i.e.
the number of radio stations).

Co-working space

Agricultural
IoT

Transmission line facilities

Radio
stationCommunication
facility building

Smart home

Audit Results The Board audited 63 projects implemented in 14 prefectures from FYs 2019 to 2021.
Relationship between the status of the achievement
Status of the use of installed facilities of targets (achievement rates) and utilization rates< Relationship between achievement rates andutilization rates >Examining the details of the expost evaluations of 11 projects
out of the 63 projects, the statusof the use of transmission line
facilities was not required to beevaluated.

For 31 projects out of the 63
projects, the utilization rates oflines were less than 50% andthus the facilities were notsufficiently utilized.

15 projects out of 46 projects
achieved their targets, but
their utilization rates were lessthan 50%.

MIC was not able to ascertain
whether the facilities were
sufficiently utilized or not.

MIC did not sufficiently consider
measures to further utilize thosefacilities.

It is also necessary to evaluate
the status of the use of installedfacilities.

Presentationof Opinions

Copyright©2023

46 projects for which
achievement rates
were ascertained
Utilization rate

Status of ex-post evaluations

Achievement rate
Achievement rate = Actual value / Target×100
Utilization rate = Number of used lines / Number of lines that
installed transmission line facilities can provide×100

・MIC should consider methods of evaluating the status of the use of transmission line facilities and should ensure that it canascertain whether they are sufficiently utilized or not based on the evaluation results.
・ MIC should consider measures to further utilize transmission line facilities that are not sufficiently used so that it can provide
advice to implementing entities as necessary.

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 FY2022 Audit Report (Japanese only).

33

12. Implementation Status of the Project for Measures to Mitigate
Drastic Changes in Fuel Oil Prices (Report on Specific Matters)

Backgroundof the Audit

Agency for Natural Resources and Energy

In order to prevent sharp rises in crude oil prices from hindering economic recovery after the COVID-19 pandemic, the Agency for Natural
Resources and Energy (ANRE) implemented the project with the aim of taking measures to control wholesale prices of fuel oil and curb
sharp rises in retail prices, thereby reducing burdens on consumers.
The ANRE provided subsidies to establish a fund to a fund establishment corporation in charge of establishing, managing, and operating
the fund.
The fund establishment corporation provided subsidies (fund subsidies) for fuel oil wholesalers depending on their sales volumes.
(Examinations and other operations were entrusted to an entity other than the fund establishment corporation, as a secretariat.)
The period for providing fund subsidies was extended several times and the maximum price of the fund subsidies per-unit of fuel oil was
also altered several times. Therefore, a large budget was appropriated (a total of 6.2133 trillion yen for FYs 2021 and 2022).
Out of the actual expenditure budget for FY2022, 3.0222 trillion yen was carried over to FY2023. (The National Petroleum Association(NPA), as the fund establishment corporation, was not able to secure a financial institution to deposit such a large amount for the fund.)Backgroundof the Audit

The prices of fuel oil that wholesalers domestically procured had already incorporated the fund subsidies. If the subsidies are provided forthe sale of such fuel oil, it would result in double fund subsidies for the same fuel oil. Accordingly, the volume of fuel oil domesticallyprocured needs to be subtracted when calculating the volume covered by subsidies.
The method of calculating the covered volume by subtracting the domestic procurement volume from the domestic sales volume on a
weekly basis may result in a negative value for the covered volume. However, two wholesalers did not offset the amount of the fundsubsidies for the portion that became negative (366.11 million yen) with the amount of those for other types of fuel oil, and thus, fundsubsidies were provided twice for the same fuel oil.
Hakuhodo Inc., as the secretariat, re-entrusted price monitoring (i.e., conducting a price survey of more than 20,000 service stations
nationwide every week by phone or through on-site visits) to a subcontractor at a fee of 6.2 billion yen (the upper limit). However, theresults of the monitoring were not utilized for analyzing whether retail price increases were properly curbed or not, so it was not clear how
the telephone and on-site survey contributed to the curb of retail prices.
The amount of curbed price increases (1.2671 trillion yen) that was estimated based on the actual sales volume of gasoline was below theamount of the provided fund subsidies (1.2773 trillion yen) by 10.1 billion yen. Analysis of the difference between retail and wholesale
prices before and after the project implementation found that the difference expanded after the project at more than half of the analyzed
service stations. Further, the target set by the ANRE in the Administrative Work Review Sheet was not appropriate as a targeted goal.

Findings

Copyright©2023

In order to ensure that the fund subsidies are provided properly in cases where the total domestic sales volume is below the domestic
procurement volume in future estimated payments and settlements, the ANRE should resolve the cases where fund subsidies were
provided twice for the same fuel oil and provide appropriate guidance to wholesalers to prevent the recurrence of similar cases. (Audit
Status 2).
The ANRE should sufficiently consider the details, implementation methods and report contents of the telephone and on-site survey, as wellas the necessity for the survey, at any time even during the project period. (Audit Status 3).

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 FY2022 Audit Report (Japanese only).

34

12. Implementation Status of the Project for Measures to Mitigate
12.燃料油価格激変緩和対策事業の実施状況（特定）Drastic Changes in Fuel Oil Prices (Report on Specific Matters)
Background of the Audit

Agency for Natural Resources
and Energy
資源エネルギー庁

Outline of the Project for Measures to Mitigate Drastic Changes in Fuel Oil Prices(Purpose) To take measures to control wholesale prices of fuel oil and curb sharp rise in retail prices, thereby reducing burdens on consumers(Details) The Agency for Natural Resources and Energy (ANRE) provided subsidies to establish a fund to a fund establishment corporation.
The fund establishment corporation provided subsidies (fund subsidies) for fuel oil wholesalers depending on their sales volumes. (Examinations of applications and other operations were
entrusted to a secretariat.)(Characteristics) The period for providing fund subsidies was extended several times and the maximum for per-unit fund subsidies was altered, and thus, a large amount of budget was appropriated.

Project Transition

Flow of the project

Project name

Project for
Measures to
Mitigate Drastic
Changes in FuelOil Prices under
COVID-19

Project for Measures to
Mitigate Drastic
Changes in Fuel Oil
Prices in Response to
COVID-19 andIncreased International
Tension

Period forproviding fundsubsidies

Until the end of
March 2022

Until the end of
April 2022

Maximum perunit subsidies

5 yen/L

25 yen/L

Budgetappropriation

89.3 billion yen

357.9 billion yen

ANRE
Subsidies
Entrustment

Fund establishment corporation

Fundsubsidies

Secretariat

Examinations andother operations

Wholesalers

Mechanism to control prices

Project for Measures to Mitigate Drasticchanges in Fuel Oil Prices

Until the end of
September 2022

Until the end of
December
2022

35 yen/L
1.4429 trillion yen

1.2959 trillion
yen

Until the endof September
2023
To be
reduced bystages
3.0271 trillion
yen

Oil refiners and oil importers (wholesalers) that receive fund subsidies control wholesale prices, and this works to curb sharp rises in prices at which
service stations sell fuel oil to consumers (retail prices).
Application

Price control

Fund subsidies
Fund establishment corporation
Secretariat

Copyright©2023

Board of Audit of Japan

Wholesaler

Price control
Service station (SS)ConsumerThis material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2022 Audit Report (Japanese only).

35

12. Implementation Status of the Project for Measures to Mitigate
12.燃料油価格激変緩和対策事業の実施状況（特定）Drastic Changes in Fuel Oil Prices (Report on Specific Matters)

Agency for Natural Resources
and Energy
資源エネルギー庁

Audit Status 1 Status of the execution of the budget for the Project for Measures to Mitigate Drastic Changes in Fuel Oil Prices
Out of the actual expenditure budget for FY2022, 3.0222 trillion yen was carried over to FY2023. (The National Petroleum Association (NPA),
as the fund establishment corporation, was not able to secure a financial institution to deposit a large amount for the fund.)Total of FYs 2021 and 2022

Audit Status 2

Actual expenditurebudget (A)Expended amount (B)Carry-over to thefollowing fiscal year (C)6.2133 trillion yen

3.1910 trillion yen

3.0222 trillion yen

Methods of calculating the amount of fund subsidies, and duplicate payments

Methods of calculating the・amount of fund subsidies

・The amount of fund subsidies to wholesalers is calculated by multiplying the covered volume (i.e. sales volume of fuel oil) by per-unit fund subsidies. (Fund subsidies are provided
only once at the time of selling fuel oil.)・For calculating the covered volume, individual wholesalers can select a formula most suited to their transactions from among three calculation formulae set by the ANRE.
(The selected formula cannot be changed.)
・As the volume procured from other domestic wholesalers (domestic procurement volume) already incorporates fund subsidies, it should be deducted when calculating the covered
volume.

Examining evidence documents for covered volumes, the Board found that fund subsidies (366.11 million yen) were provided twice for the same fuel oil for two
wholesalers.

(iii) Covered volume
by fund subsidies ＝(i) Total domestic sales
volume* for a certain week－(ii) Domestic procurement
volume* for a certain week

* Excluding the volume other than * Already incorporating fund subsidies
the covered volume by subsidies

e.g., A wholesaler who selected the calculation formula (on the left) has not sold out thegasoline it domestically procured in a certain week (ii), by the end of that week.
↓
The covered volume of (iii) may be negative in some cases ((i)＜(ii)). Unless theamount obtained by multiplying the negative value by per-unit fund subsidies is offset
with fund subsidies for other types of fuel oil (e.g., kerosene, light oil) or those foranother week, fund subsidies would be provided twice for fuel oil which had alreadyincorporated fund subsidies at the time of procurement.

Findings In order to ensure that the fund subsidies are provided properly in cases where the total domestic sales volume is below the domestic procurement
volume in future estimated payments and settlements, the ANRE should resolve cases where fund subsidies were provided twice for the same fuel oil and provide
appropriate guidance to wholesalers to prevent the recurrence of similar cases.
Copyright©2023

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 FY2022 Audit Report (Japanese only).

3612. Implementation Status of the Project for Measures to Mitigate
12.燃料油価格激変緩和対策事業の実施状況（特定）Drastic Changes in Fuel Oil Prices (Report on Specific Matters)

Agency for Natural Resources
and Energy
資源エネルギー庁

Audit Status 3 Status of Entrusted Operations by the Secretariat
System for the price monitoring・
Fund establishment corporation(National Petroleum Association)
Entrustment
Secretariat (Hakuhodo Inc.):
Design and planning of the overall project
Re-entrustment (the maximum limit for
the re-entrustment fee: 6.2 billion yen)
Subcontractor(Various Dimensions Co., Ltd.):
Implementation of the price monitoring

Outline of the price monitoring
・・
In order to monitor changes in retail prices and thereby
ensure the effectiveness of price control, a price survey
was conducted every week targeting more than 20,000
service stations nationwide by telephone or through onsite visits.

Status of use of survey results
・The results of the telephone and on-site survey were not published.
・The ANRE received a report on the results of the telephone and on-site survey but did notconduct an analysis on whether retail price increases were properly curbed based on the
results.

It was not clear how the telephone and on-site survey contributed to the controlof retail prices.
Decision of per-unit fund subsidies
When deciding per-unit fund subsidies, the ANRE used the results of the "Petroleum Product
Retail Market Survey" of approximately 2,000 service stations (ANRE’s survey) that it
conducted every week since before the project but did not use the results of the telephone andon-site survey of the project.

Comparison with the ANRE’s survey
・Retail prices from the phone survey and on-site survey were always below those from the
ANRE's survey, but price changes showed similar trends in both surveys.
・Correlation coefficients between prices from these surveys were from 0.98 to 0.99, indicatinga strong positive correlation.

For merely ascertaining changes in nationwide retail prices, it suffices to utilize
the results of the ANRE's survey.

Findings When continuing the Project for Measures to Mitigate Drastic Changes in Fuel Oil Prices or implementing similar projects in the future, ANRE should
sufficiently consider the details, implementation methods, and report contents of the telephone and on-site survey, as wells as the necessity at any time even during
the project period.
Copyright©2023

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 FY2022 Audit Report (Japanese only).

37

12. Implementation Status of the Project for Measures to Mitigate
12.燃料油価格激変緩和対策事業の実施状況（特定）Drastic Changes in Fuel Oil Prices (Report on Specific Matters)

Agency for Natural Resources
and Energy
資源エネルギー庁

Audit Status 4 Effects of curbed price by the provision of fund subsidies
Estimation of the effects of curbed priceIn the budget execution survey (BES) for FY2022, the Ministry of Finance estimated the effects of curbed price based on the sales volume of gasoline
for five months and published the results: that the amount actually curbed was below the amount of provided fund subsidies by 11.0 billion yen.

Estimating the effects for 14 months using the same method as that for BES, the Board found that the amount of curbed price increases (1.2671
trillion yen) was below the amount of provided fund subsidies (1.2773 trillion yen) by 10.1 billion yen (for gasoline).
As there was the possibility that an amount equivalent to per-unit fund subsidies was not reflected in sales prices, the Board analyzed
the difference between retail prices and wholesale prices of regular gasoline for 700 service stations for which it was able to ascertainchanges in these prices before and after the project.
The difference before the project was 17.8 yen/L on average, while the difference after the project was 19.4 yen/L on average. Therefore, it expanded by
1.6 yen/L on average.
Breakdown: The difference expanded for 486 service stations, diminished for 112 service stations, and remained the same for 102 service stations.
* Retail prices of regular gasoline consist of crude oil cost, taxes, refining cost, storage cost, sales and general administrative expenses, and others, most ofwhich are fluctuating factors. Therefore, it is difficult to clarify which factors affect retail prices.

Setting of a target to be achieved
In the administrative work review sheet and the fund sheet for the Project for Measures to Mitigate Drastic Changes in Fuel Oil Prices, the ANRE set aquantitative target as "achieving 100% as the percentage of weeks in which the national average price of gasoline becomes lower than the projected priceduring the project implementing period," and stated that the target was achieved.

The project aims to achieve the standard price by deciding per-unit fund subsidies based on the projected price, and it cannot be said that the target wasachieved only if the national average retail price becomes lower than the projected price. Accordingly, the target set by ANRE was not appropriate as a target
to be achieved.
Copyright©2023

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 FY2022 Audit Report (Japanese only).

3813. Implementation of Direct Payment Grant Project for Promoting Utilizationof Paddy Fields (Presentation of Opinions / Demand for Measures)

Outline of
the Direct
Payment
Grants on
Utilizationof Paddy
Fields

Ministry of Agriculture, Forestry and Fisheries
13.45200 billion yen (Improper amount)
2.77984 billion yen (Background amount)Direct Payment Grants on Utilization of Rice Paddy Fields (Grants) are provided to farmers who produce wheat, soybeans or otherstrategic agricultural products (eligible products) in paddy fields where rice as a staple food is not planted (eligible farmers).
[Amount of Grants = Per-unit Grants × Area of eligible paddy fields]
Farmlands unsuited for wet-rice farming are not eligible for Grants.
In principle, eligible products should be produced in a manner to obtain sufficient yield.
When deemed highly likely that appropriate planting, fertilization management or harvesting (appropriate production) have not been
conducted, the yield will be checked. If it is remarkably low, Grants are not provided. (If reasonable reasons are confirmed on astatement of reasons for the low yield (statement of reasons), Grants may be provided.)Even when reasonable reasons are confirmed, if there is a risk that the yield would become remarkably low in the following year,
directors of Regional Agricultural Administration Offices (directors) should provide the relevant farmers with written instructions for
improving production in the following year onwards.

Audit
Results

Grants were provided for paddy fields with horticultural facilities, which were considered substantially unsuited for wet-rice farming.
(1,547 farmers; provided Grants: 70.35 million yen)
Grants were provided without ascertaining the actual production or yields. (10,747 farmers; provided Grants: 10.09743 billion yen)
Grants were provided without checking yields by a quantitative method based on the actual yield, assuming that appropriate production
was conducted. It, however, was found that they were remarkably low. (3,177 farmers; provided Grants: 4.00504 billion yen)
There were statements of reasons that gave rise to doubt whether yield reduction was actually caused by reasonable reasons.
Mechanisms for the confirmation of statements of reasons and the provision of written instructions by directors did not function sufficiently,
making it difficult to improve yields of eligible products. (provided Grants: 2.77984 billion yen)

Demand for
Measuresand
Presentationof Opinions

The Ministry of Agriculture, Forestry and Fisheries (MAFF) should establish criteria for eligible paddy fields in order to determine whether
farmlands are substantially unsuited for wet-rice farming.
With regard to the verification of performance reports, MAFF should ensure that yields can be ascertained by such means as having thefarmers submit or preserve documents in which the yields are stated.
With regard to eligible products, such as forage crops and rice for whole crop silage (feedstuff made by harvesting ripe rice and foliage
together and fermenting them with lactic acid), MAFF should ensure that regional agriculture revitalization councils, which compile
application documents, check yields quantitatively based on the actual yields.
MAFF should take measures to facilitate improvement in yields of eligible products by specifically establishing a method of examining
statements of reasons and criteria for the provision of written instructions by directors to ensure that these mechanisms function
sufficiently, and by reviewing their operation.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

39and Fisheries
農林水産本省13. Implementation of Direct Payment Grant Project for Promoting Utilization Ministry of Agriculture, Forestry(指摘金額)
billion yen (Improperamount)13.水田活用の直接支払交付金事業の実施（意見表示・処置要求） 13.45200134億5200万円
of Paddy Fields (Presentation of Opinions / Demand for Measures)
2.77984 billion
yen (Background amount)
27億7984万円(背景金額)

Outline of Grants• Amount of Grants = Per-unit Grants × Area of eligible paddy fields (farmlands unsuited for wet-rice farming are not eligible.)• In principle, eligible products should be produced in a manner to obtain sufficient yields.
• When deemed highly likely that appropriate planting, fertilization management or harvesting (appropriate production) have not been conducted, the yield will be checked. If it isremarkably low, Grants are not provided. (If reasonable reasons are confirmed on a statement of reasons for the low yield (statement of reasons), Grants may be provided.)• Even when reasonable reasons are confirmed, if there is a risk that the yield would become remarkably low in the following year, directors should provide the relevant farmers
with written instructions for improving production in the following year onwards.

Audit Results 1 Grants were provided for farmlands that were substantially unsuited for wet-rice farming.
Horticultural facilities installed by using government
subsidies are restricted from disposal for a certain
period of time.
The Grant guideline does not specify any criteria
for eligible paddy fields in cases where
horticultural facilities are installed by using
government subsidies.

1,547 farmers(provided Grants: 70.35 million yen)
⇒ Grants were provided although
farmlands with horticultural facilities,
whose disposal were restricted, were
substantially unsuited for wet-rice
farming.

Demand for Measures

Horticultural facilities

Dikes

MAFF should establish
criteria for eligible paddy
fields in order to determine
whether farmlands aresubstantially unsuited for
wet-rice farming.

Irrigation water supply facilities

Audit Results 2 Performance reports on eligible products were not properly confirmed.
The Grant guideline provides that eligible farmers should submit copies of shipment and sales contracts and of sales slips for each eligible product for
the relevant year, as evidence for performance reports, to regional agriculture revitalization councils (councils) which compile application documents.

10,747 farmers (provided Grants: 10.09743 billion yen)

The Grant guideline・does not specify the details to be stated inevidential documents for performance reports,
・does not specify evidential documents in cases
where farmers use forage crops themselves.

Copyright©2023

Board of Audit of Japan⇒ Grants were provided without ascertaining the actual production or yields.
For example,
・The evidential documents did not contain information on the yields.
・The farmers did not submit evidential documents when they used crops such as
forage crops themselves.

Demand for Measures
With regard to theverification of performance
reports, MAFF should
ensure that yields can beascertained by such means
as having the farmers
submit or preserve
documents in which theyields are stated.

⇒ Grants were provided without sufficiently confirming the appropriateness of theyields.
・It was doubtful whether the yields stated in performance reports were based on
the actual yields when the farmers used forage crops themselves.
This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2022 Audit Report (Japanese only).

40and Fisheries
13. Implementation of Direct Payment Grant Project for Promoting Utilization Ministry of Agriculture, Forestry農林水産本省(指摘金額)
billion yen (Improperamount)13.水田活用の直接支払交付金事業の実施（意見表示・処置要求） 13.45200134億5200万円
of Paddy Fields (Presentation of Opinions / Demand for Measures)
2.77984 billion
yen (Background amount)
27億7984万円(背景金額)

Audit Results 3 Yields were not checked appropriately.

For forage crops and rice for wholecrop silage, the Grant guideline does
not require that yields be checked bya quantitative method based on theactual yields.

Demand for Measures

Examining the yields by a quantitative method based on the actual yields⇒ Grants were provided for 3,177 farmers (provided Grants: 4.00504
billion yen) assuming that appropriate production was conducted,
although the yields were remarkably low; for example, in some of the
paddy fields the per-unit yields were less than half of the average ofneighboring paddy fields.

Audit Results 4 Mechanisms for the confirmation of statements of reasons and the provision of written

instructions by directors did not function sufficiently, making it difficult to improve yields
of eligible products.

If farmers submitted statements ofreasons, there considered to bereasonable reasons and Grants were
provided in most cases (99.8% out of a
total of 3,130 cases).

・Examining factors for the low yields stated in statements of reasons⇒ Grants were provided for 955 cases although the statements gave
rise to doubt whether the yield reduction was actually caused by force
majeure, such as a natural disaster (i.e., reasonable reasons).

(e.g.) Although being a member of an agricultural mutual relief association, the farmer did not
file an application for mutual aid for natural disaster relief.
Farm work and necessary pest management were not conducted in a timely manner.

⇒ It has been difficult to improve the yield.

交付額計27億7984万円
Provided
Grants: 2.77984 billion yensRegarding “cases where there is a riskthat the yield would become
remarkably low in the following year,”which is the criteria for the provision of
written instructions, the details are notspecified concretely.

Copyright©2023

Board of Audit of Japan

Examining the status of the provision of written instructions⇒ 730 farmers submitted statements of reasons (e.g. those for the same
type of eligible product for six consecutive years) and there was a riskthat yields would become remarkably low in the following year, but
written instructions were not provided.
⇒ It has been difficult to improve the yield.

With regard to eligible
products, such as forage
crops and rice for wholecrop silage, MAFF should
ensure that the councils
check yields quantitatively
based on the actual yields.

Presentation of Opinions
The MAFF should specificallyestablish the standards, etc.
for how to confirm
statements of reasons foryield reduction and for
improvement guidance byDirectors of Regional
Agricultural Administration
Offices, etc. to ensure thatthese mechanisms function
sufficiently, and should review
the operation of the current
system, thereby taking
measures so that eligible
farmers can make efforts for
improvement to increase theyield of covered products.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2022 Audit Report (Japanese only).

41

14. Initiatives for Securing a Stable Supply of Food
(Report on Specific Matters)

Ministry of Agriculture, Forestry and Fisheries

The Ministry of Agriculture, Forestry and Fisheries (MAFF) has taken measures based on the Basic Act on Food, Agriculture and Rural
Areas (Basic Act) so that a stable supply of food is secured by appropriately combining production increase, import and stockpiling.

Backgroundof the Audit

The Basic Plan for Food, Agriculture and Rural Areas (Basic Plan), which is formulated based on the Basic Act, sets the targets of foodself-sufficiency ratios. The Basic Plan formulated in 2020 sets the target of 45% as the total food self-sufficiency ratio on a calorie supply
basis to be achieved by FY2030 (actual ratio in FY2022: 38%).
Against such a background as increasing instability of food production worldwide due to recent climate changes and soaring prices ofimported food materials due to the tense situation in Ukraine, the national government considers the strengthening of food security as anurgent and most important national issue and conducts verifications and reviews to amend the Basic Act.
1. Budgets executed for the initiatives for securing a stable supply of food (from FYs 2017 to 2022) amounted to 16.4654 trillion yen for 554
projects.
By types of initiatives; production increase, import and stockpiling, production increase accounted for the bulk of the executed budgets(12.8609 trillion yen; 78.1% of the total).

Statusof theAudit

Findings
Copyright©2023

2. Implemented initiatives for securing a stable supply of food included 519 projects for production increase and 7 projects for import.
With regard to the import of wheat, the amount of decrease in revenue due to the emergency measures(Note) for mitigating the impact of thetense situation in Ukraine was calculated at 30.9 billion yen.
(Note) For the selling price in the 2022 October term (from October 2022 to March 2023), the government maintained that of the previous
term, instead of newly calculating the selling price based on buying prices in the previous term, which increased sharply.
3.(i) With regard to 11 items, including rice, which accounted for large percentages in the total calories supplied, the Board calculated theircontribution ratios to the total food self-sufficiency ratio. For the items other than wheat and soybeans, increases in production volumes
contributed less to raising the total food self-sufficiency ratio, or decreases of production volumes worked as factors to lower it.
(ii) Initiatives for increasing production of soybeans and forage crops were considered to produce only limited effects under some restrictions.
Further, even if the initiatives were to be continued in line with the Basic Plan and the targets are achieved, Japan’s high dependence on
imports for wheat and soybeans would remain unchanged.
(iii) For some of the indicators presented in the Basic Plan as a prerequisite for the target of the total food self-sufficiency ratio, indicatortargets were not achieved in the target fiscal years or performances comparable with the indicator targets were not ascertained. MAFF
verified the progress of the indicators but did not conduct such verification as ascertaining the status of the achievement of the targets inthe target fiscal years and analyzing causes of non-achievement.
MAFF should continue to make efforts to secure a stable supply of food by appropriately combining production increase, import andstockpiling, while paying attention to the importance of conducting timely and appropriate verification of the status of the achievement of
the targets for indicators presented in the Basic Plan to contribute to efficient and effective implementation of measures for a stable foodsupply.

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 FY2022 Audit Report (Japanese only).

4214. Initiatives for Securing a Stable Supply of Food
14.食料の安定供給に向けた取組（特定）(Report on Specific Matters)
Background of the Audit

農林水産省
Ministry of Agriculture, Forestry and
Fisheries

Outline of a stable supply of food・The Ministry of Agriculture, Forestry and Fisheries (MAFF) has taken measures based on the Basic Act on Food, Agriculture and Rural Areas (Basic Act) so that a stable supplyof food is secured by appropriately combining production increase, import and stockpiling.
・The Basic Plan for Food, Agriculture and Rural Areas (Basic Plan), which is formulated based on the Basic Act, sets the targets of food self-sufficiency ratios, among other things.
The Basic Plan has been formulated every five years since 2000 (in 2000, 2005, 2010, 2015, and 2020).
Types of food self-sufficiency
ratio

OutlineTotal food self-sufficiency ratio

The indicator showing the ratio of domestic production against domestic food supply, which is calculated by adjusting units for all foodstuffs based on a common scale
The indicator showing the ratio of domestic production against calories supplied to the people (total calories supplied)This characteristically better reflects theactual status of food supply and isconsidered to be suited for measuring(Note) In addition to the above types of food self-sufficiency ratios, there are the self-sufficiency ratio by item (see p.45) and the total food self-sufficiency ratio on a production value basis. the actual status of food security.
Calorie supply basis

Total food self-sufficiency ratio on a calorie supply basis = Daily domestically supplied calories per capita / Daily total calories supplied per capita

Daily domestically supplied calories per capita (850 kcal) / Daily total calories
supplied per capita (2,260 kcal)

Changes in targets and performances of the total food self-sufficiency ratios in Japan

Breaking down the 2,260 kcal into items

On a calorie supply basis; Target to be achieved in FY2030: 45% (2020 Basic Plan); Actual ratio in FY2022: 38%
(％)
100
90

(2005)
76%(Ｈ17)80(2015)
73％(Ｈ27)(2010)
70%(Ｈ22)

Vegetables
野菜

10
0

476

＜凡例＞
<Explanatory note>

474 (99％)

73(2000)
45%(Ｈ12)50

20

7 items accounted for approx. 80%of the total (the part surrounded bybold lines).

Rice
米

62
(22％)

Soybeans
大豆

60

30

66

その他
Others
282

66

70

40

Fruits果実(2020)
75％(Ｒ2)

Targettotal food self-sufficiency ratio on a production
生産額ベースの総合食料自給率の目標
value
basis
Total
food
self-sufficiency ratio on a production value
生産額ベースの総合食料自給率
basis
Targettotal food self-sufficiency ratio on a calorie supply
供給熱量ベースの総合食料自給率の目標
basis
Total
food self-sufficiency ratio on a calorie supply basis
供給熱量ベースの総合食料自給率(2005)
45%(Ｈ17)(2010)
50%(Ｈ22)

45% (2020)
45％(Ｒ2)20 (30％)50 (75％)18 (25％)39 (49％)63 (34％)

魚介類
78
Sugar,
etc.
砂糖類(2015)
45％(Ｈ27)

185

47
(16％)

38%
令和4年度38％
in FY2022

Suppliedcalories by item
品目別供給熱量

68 (17％)
191
(46％)

9
(3％)

Livestockproducts
畜産物

408

係る品目別供給熱量

Wheat
小麦

令和
平成
昭和
1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1894 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2025 2030
39 41 43 45 47 49 51 53 55 57 59 61 63 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 2 4 7 12

（Fiscal Year）

(年度)

299

Domestically supplied calories by
品目別国産供給熱量
item（( )書きは品目別(Figuresin parentheses are self供給熱量自給率）
sufficiency
ratios in calorie supply
by item.)
Suppliedcalories by livestock
輸入飼料により国内でproducts domestically produced by
生産された畜産物にusing imported feedstuff, by item
Supplied calories by imports, byitem
輸入分に係る品目別

Oils
and fats
油脂類

327(Unit: kcal)（単位：kcal）

供給熱量

Against such a background as increasing instability of food production worldwide due to recent climate changes and soaring prices of imported food materials
due to the tense situation in Ukraine, the national government considers the strengthening of food security as an urgent and most important national issue andconducts verifications and reviews to amend the Basic Act.
Copyright©2023

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 FY2022 Audit Report (Japanese only).

4314. Initiatives for Securing a Stable Supply of Food
14.食料の安定供給に向けた取組（特定）(Report on Specific Matters)

農林水産省
Ministry of Agriculture, Forestry and
Fisheries

Audit Status 1 Budgets executed for the initiatives for securing a stable supply of food (from FYs 2017 to 2022)
Budget executed for the initiatives for securing a stable supply of food was more than 2 trillion yen every fiscal year, and amounted to 16.4654 trillion yen for554 projects in total.
By types of initiatives, production increase accounted for the bulk of the executed budgets as shown in the following table.
(Unit in billion yen)

Initiatives

FY2017FY2018FY2019FY2020

FY2021

FY2022

Total

Percentage

Production
increase

1,900.0

1,843.5

2,043.6

2,358.6

2,386.4

2,328.7

12,860.9

78.1%

Import

280.6

287.3

263.4

257.2

335.9

436.8

1,861.4

11.3%

Stockpiling

55.3

42.7

60.4

71.0

61.0

53.2

343.9

2.0%

Others

217.8

224.7

235.8

263.6

248.9

208.0

1,399.0

8.4%

Total

2,453.9

2,398.3

2,603.3

2,950.5

3,032.3

3,026.9

16,465.4

100.0%(Note “Others” are initiatives that cannot be categorized into any of “Production increase,” “Import,” or “Stockpiling.”)

Subsidies (subsidized projects) granted to local
governments and other entities amounted to10.3860 trillion yen (63.0% of the total),accounting for the bulk of 16.4654 trillion yen.

Audit Status 2 Implementation status of the initiatives for securing a stable supply of food (from FYs 2017 to 2022)
Projects implemented for the initiatives for securing a stable supply of food: 519 projects for production increase, 7 projects for import, etc.
Initiatives for importWith regard to the import(Note 1) of wheat, for which Japan highly depends on foreign countries, the national government took emergency measures for its
selling price to flour milling and other companies, in order to mitigate the impact of sharp increases in buying prices due to the situation in Ukraine (fromOctober 2022 to March 2023).
<Normal situation>

Overseas

The government’s selling prices are calculated twice a year based on MAFF’s
buying prices for the last six months.
Sell wheat based on the
小麦の売渡し<Emergency measures> Maintained the government’s selling price of the previous term (from April to
Buyinggovernment's selling price
September 2022)(Did not newly calculate the government’s selling price based on buying prices
in the previous term, which increased sharply)
National government
Flour milling and other companies

The Board estimated the amount of decrease in revenue due to the emergency measures(Note 2) at 30.96215 billion yen.
(Note 1) The “import” here refers to those under the general import system, in which the national government compiles purchase applications from flour milling and other companies in advance, integrally imports
wheat in bulk and sells it to them.
(Note 2) The Board calculated the difference between the estimated amounts and actual amounts of the sales payments, assuming that the government selling prices are calculated based on the purchase prices
from the second week of March 2022 to the first week of September 2022 and also assuming the sales volume from October 2022 to March 2023.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

4414. Initiatives for Securing a Stable Supply of Food
14.食料の安定供給に向けた取組（特定）(Report on Specific Matters)

農林水産省
Ministry of Agriculture, Forestry and
Fisheries

Audit Status 3 Status of the achievement and verification of the targets of indicators relating to the total food self-sufficiency ratio
Indicators as a prerequisite for the target of the total food self-sufficiency ratio
Reference materials published together with the Basic Plan show forecasts of food consumption and production targets by item, and the targets for individual indicators, such as
yield per 10a (per-unit yield) for major items, crop acreage, and self-sufficiency ratios by item(Note 1), as a premise for the target total food self-sufficiency ratio.
(Note 1) The indicator showing the ratio of domestic production against supplies for domestic consumption (i.e., the amount supplied for consumption in Japan during a year) by item
+2.0
(Rice)(米)(i) Status of the achievement of the targets relating to the total foodself-sufficiency ratio on a calorie supply basis+1.69

As of the target fiscal years of the Basic Plans, the forecasts offood consumption and actual food consumption differed by 20%
or more, and actual production was below the production targets
for some items.

With regard to 11 items(Note 2) that accounted for large percentages
in daily total calories supplied per capita, the Board estimated theircontribution ratios to the total food self-sufficiency ratio on a calorie
supply basis in FY2019 (in comparison with FY1998)(Note 3) …

+1.0
(Seafood)(魚介類)(Pork)
and fats) (豚肉)
(油脂類)
milk) (Oils(生乳)+0.44 (Raw

Contribution ratio

Therefore,(Wheat)
(小麦)

+1.01

-0.06

+0.0
0.0

-0.24

寄
与
度

-0.89

(Note 2) Rice, livestock products (raw milk, beef, pork, chicken and eggs), oils and fats, wheat,sugar, seafood, and soybeans(Note 3) Estimation mainly used the following formulae based on the methods shown in the Annual
Report on Food, Agriculture and Rural Areas in Japan.
・Contribution ratio by changes in total calories supplied＝－((Changes in daily supplied calories per capita by item × Total population in FY2019 ×
Number of days of FY2019）× Domestically supplied calories for FY2019） /(Total calories supplied for FY1998 ×Total calories supplied for FY2019) ×100
・Contribution ratio by changes in domestically supplied calories＝ Changes in domestically supplied calories by item / Total calories supplied for FY1998 ×100

-0.30

+0.02
-0.22

-0.21

+0.06

-0.20

(Sugar, etc.) +1.00
(砂糖類)

+0.14
+0.09
+0.14
+0.08
+0.05

+0.02

-0.24

(Beef) (Soybeans)
(大豆)
(牛肉)

-0.03

+0.01

+0.00

+0.23
+0.34
-0.11

+0.01

-0.18

-1.0

-1.91

For the items other than wheat and soybeans, increases in production
volumes contribute less to raising the total food self-sufficiency ratio,or decreases in those worked as factors to lower the total food selfsufficiency ratio (see the right Figure).

-0.45

+0.07

-0.28

(Chicken)(鶏肉)(Eggs)
(鶏卵)

-2.0
-3.60

・The
total food self-sufficiency ratio on a calorie supply basis for FY2019 was・令和元年度の供給熱量ベースの総合食料自給率は38％であり、平成38%,
down 2 percentage points from FY 1998 (40%).
10年度の40％に対して2ポイント低下
・With
regard to the 2 percentage points, the Board estimated contribution ratios
・上記2ポイントの低下について、総供給熱量及び国産供給熱量の増減
of による寄与度を品目別に試算
changes in total calories supplied and domestically supplied calories by item.

-3.0
-4.0

(Explanatory（ 凡 例note)）

Contribution ratios by changes in total calories supplied [A]・A
decrease in consumption of the relevant item decreases the total calories supplied and works as a factor to raise the total
総供給熱量の増減に係る寄与度【Ａ】
food self-sufficiency ratio (the bar graph extends upward).
・当該品目の食料消費が減少すると、総供給熱量が減少し、上昇要因（棒グラフは上方に伸びる）
・An increase in consumption of the relevant item increases the total calories supplied and works as a factor to lower the total
・当該品目の食料消費が増加すると、総供給熱量が増加し、低下要因（棒グラフは下方に伸びる）
food self-sufficiency ratio (the bar graph extends downward).
Contribution ratios by changes in domestically supplied calories [B]
国産供給熱量の増減に係る寄与度【Ｂ】
・A
decrease in domestic production of an item decreases domestically supplied calories and works as a factor to lower the total
food self-sufficiency ratio (the bar graph extends downward).
・当該品目の国内生産量が減少すると、国産供給熱量が減少し、低下要因（棒グラフは下方に伸びる）
・An
increase in domestic production of an item increases domestically supplied calories and works as a factor to raise the total
・当該品目の国内生産量が増加すると、国産供給熱量が増加し、上昇要因（棒グラフは上方に伸びる）
food self-sufficiency ratio (the bar graph extends upward).
[A]
+ [B]
【Ａ】＋【Ｂ】
Items
with positive figures indicate raising factors, while those with negative figures indicate lowering factors.
プラス表示は当該品目が上昇要因、マイナス表示は低下要因となっていることを表す

Copyright©2023

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 FY2022 Audit Report (Japanese only).

45

14. Initiatives for Securing a Stable Supply of Food
14.食料の安定供給に向けた取組（特定）(Report on Specific Matters)

農林水産省
Ministry of Agriculture, Forestry and
Fisheries

Audit Status 3 Status of the achievement and verification of the targets of indicators relating to the total food self-sufficiency ratio<Changes in self-sufficiency ratios by item for wheat, soybeans, and forage crops>(ii) Changes in the indicators for wheat, soybeans, and forage crops

(％)

(％)

Comparing the targets and performances for individual indicators …

50[Soybeans]
The target for per-unit yield was not achieved.
[Forage crops] MAFF did not ascertain part of performances that were comparable with thetargets. As far as the Board examined performances, the targets for
production volume, per-unit yield, and crop acreage were not achieved.
Initiatives for increasing production of soybeans and forage crops are considered to produce
only limited effects under some restrictions.

100(2010)
100(Ｈ22)80(2010)
34(Ｈ22)Forage crops [target ratio] (right scale)

飼料作物［目標］(右軸)30Foragecrops [actual ratio] (right scale)
飼料作物［実績］(右軸)

60

Wheat
ratio] (left scale)
小 [target麦［目標］(左軸)Wheatratio] (left scale)
小 [actual麦［実績］(左軸)20

大豆［実績］(左軸)
Soybeans[actualratio] (left scale)(2010)
17(Ｈ22)(2005)
14(Ｈ17)12(Ｈ12)(2000)(2020)
19(Ｒ2)

40(2015)
16(Ｈ27)1020(2015)
12(Ｈ27)(2000)
5(Ｈ12)

0(ⅲ) Status of the verification of indicators related to food self-sufficiency rate

(2020)
100(Ｒ2)40

大豆［目標］(左軸)
Soybeans[targetratio] (left scale)[Wheat and soybeans] Even if initiatives for production increase were to be continued inline with the Basic Plan and the targets (i.e., the target self-sufficiency ratios byitem for FY2030 in the 2020 Basic Plan: 19% for wheat and 10% for soybeans)
were achieved, Japan’s high dependence on imports would remain unchanged(see the right Figure).

(2015)
100(Ｈ27)10(Ｒ2)(2020)(2005)
6(Ｈ17)

令和2020 2022
平成 2000 2002 2004 2006 2008 2010 2012 2014 2016 20181998
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 元 2 3 4

0

2025
7

2030
（Fiscal
12Year）(年度)

As targets were found unachieved for some indicators in addition to those of (ii), the Board examined the status of the verification of indicators by MAFF …
・The Council(Note 3) conducted verification based on the results of policy evaluation.
(Regarding indicators presented in the 2010 Basic Plan) Indicators other than the production targets for beef, pork, and chicken were not set as those for policy evaluation.
・(Regarding indicators presented in the 2015 Basic Plan)At the time of formulating the 2020 Basic Plan, the Council verified the status of the progress of all indicators except for the self-sufficiency ratios by item.
(Regarding indicators presented in the Basic Plans for which the target fiscal years arrived)
The Council did not conduct such verification as ascertaining the status of the achievement of targets in the target fiscal year and analyzing causes of non-achievement.
(Note 3) The Council of Food, Agriculture and Rural Area Policies established in MAFF

Findings MAFF should continue to make efforts to secure a stable supply of food by appropriately combining production increase, import and stockpiling, while
paying attention to the importance of conducting timely and appropriate verification of the status of the achievement of targets for indicators presented in the Basic
Plan to contribute to efficient and effective implementation of measures for a stable food supply.
Copyright©2023

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 FY2022 Audit Report (Japanese only).

46

15. Contract on Procurement of Domestic Pork to be Served at the Tokyo
Olympic and Paralympic Games Athletes' Village (Improprieties)

Outline oftheContract

Audit
Results

Ministry of Agriculture, Forestry and Fisheries

Ministry of Agriculture, Forestry and Fisheries
19.14 million
yen (Improperamount)19.14 million
yen (Improperamount)

The Ministry of Agriculture, Forestry and Fisheries (MAFF) concluded a discretionary contract (the Contract) for the "promotion of
the attractiveness by providing Japanese domestic food products at the Athletes’ Village” with Starzen Co., Ltd. (the Company) in
February 2021.
The purpose of the Contract was to serve dishes using domestic pork at a restaurant at the Tokyo Olympics and Paralympics
Athletes' Village, thereby encouraging athletes who experience high-quality Japanese domestic foodstuffs to disseminate their
attractiveness to the whole world.
The details of the Contract included procuring domestic pork, processing the procured domestic pork in a manner to satisfy thestandards required by a business operator serving food and beverages at the Athletes’ Village (food service provider), and storing
the processed pork (6,264 kg in total).
MAFF paid the full amount of the Contract (19.14 million yen) to the company in April 2021.

The Company had concluded a contract on delivery of livestock products to be used at a restaurant (prior contract) with a food service
provider prior to the conclusion of the Contract.
Around November 2020, MAFF and the Company orally agreed upon the following points, in order to replace part of the foreign pork
(11,215 kg) that was supposed to be delivered to a restaurant under the prior contract, with domestic pork, on the basis of the continuationof the prior contract.
The Company was to procure unprocessed domestic pork, process such domestic pork, and store the processed product, and was tosequentially deliver it to a warehouse designated by the food service provider until September 2021, when the Tokyo Olympic andParalympic Games would end.
MAFF was to pay increased expenses for procurement, processing, storage, and delivery that would become necessary due to thereplacement of foreign pork with domestic pork to the Company.
MAFF prepared a written contract stating details different from those agreed upon regarding major items of the Contract.
⇒ MAFF disguised the increased expenses (14.94 million yen) as expenses required for the procurement, processing and storage ofdomestic pork. The volume of domestic pork (6,264 kg) stated in the written contract was also fictitious.
⇒ MAFF set the implementation period of the Contract as starting from the day of concluding the Contract to March 31, 2021, andpretended that no work would arise from April 2021 onward.
Although the procurement of domestic pork was not completed and processing and storage were not conducted, an inspection official in
charge of the Contract prepared an inspection report stating incorrect details on March 31, 2021.
These acts were in violation of accounting laws and regulations and were extremely inappropriate.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

47

Ministry of Agriculture, Forestry農林水産本省
and Fisheries
15. 15.東京オリンピック・パラリンピック競技大会の選手村に提供するContract on Procurement of Domestic Pork to be Served at the Tokyo
19.14 million yen(Improper amount)
1914万円(指摘金額)
Olympic
and Paralympic Games Athletes' Village (Improprieties)
国産豚肉の調達等に係る契約（不当事項）
Outline of the Contract
MAFF concluded a contract (the Contract) for the provision of foodstuffs (domestic pork) at the Athletes' Village with the Company in February 2021.
The purpose was to encourage athletes who experience high-quality Japanese domestic foodstuffs to disseminate their attractiveness to the whole world.
The details agreed on
before the conclusionof the Contract

The Company was to procure unprocessed domestic pork, process such domestic pork, and store the processed product, and was to sequentially deliver it to a warehouse designated by a foodservice provider until September 2021, when the Olympics and Paralympics would end.
MAFF was to pay increased expenses that would become necessary due to the replacement of foreign pork with domestic pork to the company.

Audit Results(1) A written contract with details different from those agreed upon was prepared.
MAFF prepared a written contract stating details different from those agreed upon (i.e., what was supposed to be actually implemented)
regarding major items of the Contract.
Major differences between the agreed-upon details and the details of the written contract
Major items of theContract
PurposeAmount(Constituent)

Agreed-upon details

Details of the written contract

Replace foreign pork (11,215kg) withdomestic pork and deliver the domestic
pork

Procure domestic pork, process it, andstore processed domestic pork (6,264㎏)[What was to be implemented]
・Procure domestic pork
・Process procured domestic pork
・Store processed domestic pork
・Deliver stored domestic pork

[What was to be implemented]
・Procure domestic pork
・Process procured domestic pork
・Store processed domestic pork

・Prepare a report

・Prepare a report

September 2021, when the Olympics andParalympics would end(From around February 2021, when work was
to be commenced, to September 2021, when
the Olympics and Paralympics would end)

・In order to simplify the Contract, its details were changed from what had been agreed upon.
⇒ MAFF disguised increased expenses (14.94 million yen) that arose from replacing
foreign pork with domestic pork, as expenses required for the procurement, processing,and storage of domestic pork.
⇒ The volume of domestic pork (6,264 kg) stated in the written contract was fictitious.
.

Increased expenses for procurement,
Expenses for procurement, processing,processing, storage, and delivery thatstorage that would be necessary forwould become necessary to replacestoring domestic pork (6,264 kg)
foreign pork (11,215 kg) with domestic pork

Deadline(Implementing Period)[The volume of domestic pork and the constituents of the Contract amount]

March 31, 2021
(From February 16, 2021, the day ofconcluding the Contract, to March 31, 2021)[What was to be implemented and the implementation period of the Contract]
・MAFF set the implementation period of the Contract as starting from the day ofconcluding it to March 31, 2021, and pretended that no work would arise from April 2021
onward.
・Regarding what was to be implemented, the delivery of domestic pork, which had been
agreed upon and was indispensable for serving domestic pork, was not included in thewritten contract.

(2) An inspection report was prepared by pretending that the works stated in the written contract were fully performed.
・As of March 31, 2021, the procurement of domestic pork was conducted partially but processing was not commenced, and there was no domestic pork
processed and stored.
・Despite such circumstances, an inspection official in charge prepared an inspection report stating incorrect details, pretending to have confirmed thecompletion of the contractual works.
⇒

The acts described in (1) and (2) were violation of accounting laws and regulations and were extremely inappropriate.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

48

16. Size of Reserve Funds Based on Management Expense Grants Provided to
National University Corporations for Specified Expenditures (Measures Taken)

Ministry of Education, Culture, Sports,
Science and Technology
1.64058 billion yen (Improper amount)

Outlineof theSystemNational University Corporations (NUCs) granted exemption of all or part of tuition fees (student support) to students whose families arefacing significant changes in household economy due to COVID-19 based on their individual standards (student support system).
The Ministry of Education, Culture, Sports, Science and Technology (MEXT) provided Management Expense Grants pertaining to significant
changes in household economy (MEGs) in FY2020 to NUCs in order to support their expenses for student support.
On the other hand, the system of exemption of all or part of tuition fees (new study support) was introduced based on the Act on Support forStudy at Universities (new study support system) in FY2020, and when students are eligible for both systems, the new study support system
is prioritized.
NUCs' profits for each business year are appropriated to cover losses, and any residual amount is to be saved as reserve funds.
Out of reserve funds as of the end of the period for the medium-term objectives, the amount approved by the Minister of MEXT can be
carried over to appropriate it as a fund source for a following period for medium-term objectives, and the remaining amount is to be returnedto the national treasury.

Audit
Results

MEXT conducted a survey on estimated amounts of student support that 85 NUC s would provide to their students, and provided theamounts obtained by multiplying those estimated amounts by 7 as MEGs (4.80189 billion yen in total to the 85 NUCs in FY2020).
The residual amount of the provided MEGs as of the end of FY2021 was 3.69736 billion yen for the 85 NUCs, and the non-execution rate
was 77%.
18 NUCs had non-execution rates of 90% or higher (including 8 NUCs that did not execute MEGs at all).
⇒ Main reasons for the high non-execution rates:"The amount of student support actually provided to students was smaller than provided MEGs.""New study support covered a larger number of students than had been supposed initially."
The 85 NUCs respectively filed applications for approval to carry over all the amount of reserve funds as which they had settled the residual
amount of MEGs to the following period for the medium-term objectives (FYs 2022 to 2027), obtained approval from the Minister, andcarried over all the amount.
⇒ When filing applications, each NUC did not calculate estimated costs for student support for the following period for the Medium-term
objectives, and MEXT did not consider estimated costs either.
Calculating estimated costs for the 85 NUCs, the Board found that the amount of reserve funds that 69 NUCs carried over was larger thanthe estimated costs (difference: 1.64058 billion yen in total).

Measures
Taken

MEXT thoroughly informed NUCs that they should properly calculate estimated costs for the following period for the Medium-term objectives
in order to utilize funds effectively when filing an application for a disposal of reserve funds based on management expense grants provided
for specified expenditures.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

4916. 16.特定の支出等のために国立大学法人に交付された運営費交付金
Size of Reserve Funds Based on Management Expense Grants Provided to
National
University Corporations for Specified Expenditures (Measures Taken)
による積立金の規模（処置済）

Ministry of Education, Culture, Sports,
文部科学本省
Science andTechnology

16億4058万円(指摘金額)
1.64058 billion
yen (Improper amount)

Conceptual drawing explaining the student support system and the new study support system
Exemption of all or part of tuition fees (new study support)
based on the Act on Support for Study at Universities(new study support system)

Exemption of all or part of tuition fees (student support) was granted based on
individual universities' own standards to their students whose families are facing
significant changes in household economy due to COVID-19 (student support system).
(Supported by Management Expense Grants pertaining to significant changes inhousehold economy (MEGs))

Audit Results(Note) When students are eligible for both systems, the new study
support system is prioritized.

Disposition at the end of the period(at the end of FY2021)

FY2020 - FY2021

Provided the amount obtained by multiplying the estimated amounts through a survey by 7
as MEGs (4.80189 billion yen in total to 85 NUCs in FY2020)
MEXT

Non-execution rate of MEGs (at the end of FY2021)

The residual amount of theprovided MEGs as of the endof FY2021

3.69736 billion yen in total for the 85 NUCs
Non-execution rate: 77％(100％ for 8 NUCs)(Reasons for the non-execution)(e.g.,)
・The amount of study support actually provided
to students was small.
・Support was mainly provided under the new
study support system.

Respectively filed applications
for approvals to carry over all
the amount of reserve funds aswhich they had settled the residual
amount of MEGs to the following period
for the Medium-term objectives

The amount of reserve
funds that 69 NUCs carriedover was larger than thecalculated estimated costs.
(Difference:
1.64058 billion yen in total)

Did not calculate estimated costs for student
support for the following period for the
Medium-term objectives

Number of NUCs

NUCs

NUCs

Calculation by the BoardMedian value: 82%
Approved the carry-over of all
the amount without
considering estimated costs

or more|or lessor more|less thanThe size of reserve funds
was inappropriate.

MEXT

Non-execution rate

Measures Taken
MEXT thoroughly informed NUCs that they should properly calculate estimated costs for the following period for the medium-term objectives in order to utilize
funds effectively when filing an application for a disposal of reserve funds based on management expense grants provided for specified expenditures.
Copyright©2023

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 FY2022 Audit Report (Japanese only).

50

17. Improper Design of Catch Basins (Improprieties)

Outlineof theProjects

Audit
Results

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

Ichinoseki City (Iwate Prefecture), by using the Disaster Prevention & Safety Grant (Sewerage), and Hino Town (Shiga
Prefecture), by using the General Grant for Social Capital Development (Sewerage), respectively implemented projects toconstruct catch basins, box culverts and gutters for discharging rainwater to rivers.
Designing of the catch basins was entrusted to consultancies.
Ichinoseki City installed 4 unreinforced concrete catch basins.
・The City designs catch basins, selecting standard drawings suited to the conditions of the construction sites based on
the Standard Design of Civil Engineering Structures Vol.1 Gutters and Culverts (established by the Ministry ofConstruction) (Japan Construction Engineers’ Association).
Hino Town installed 5 reinforced concrete catch basins and 3 unreinforced concrete ones (8 in total).
・The Town designs catch basins, calculating stresses of the reinforcing bars by obtaining loads applied to components
for the side walls and the bottom of the basins, based on the Design Manual (draft) (the Kinki Regional Development
Bureau, Ministry of Land, Infrastructure, Transport and Tourism (MLIT)).

In Ichinoseki City and Hino Town, 3 and 5 catch basins respectively were installed at road shoulders on which vehicles
pass and they were impacted by vehicle loads.
(i) The City designed their basins by erroneously selecting standard drawings applicable when the impact of vehicle loads
are ignorable.
(ii) The Town designed their basins by erroneously calculating the stresses without considering the impact of vehicleloads.
⇒ Re-calculation of the stresses by considering vehicle loads revealed that the shear stresses of the concrete on the sidewalls and the bottom of the basins were not within the safe ranges.
In Hino Town, 2 catch basins were constructed based on bar arrangement drawings wherein the layout intervals of
reinforcing bars to be arranged at the side walls and the bottom were different from those in the design calculation.
⇒ The reinforcing bars were erroneously arranged at intervals of 25cm, which should have been 12.5 cm. Re-calculation
based on the 25 cm intervals revealed that tensile stresses of the bars at the bottom of the basins were not within thesafe ranges.

Copyright©2023

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 FY2022 Audit Report (Japanese only).

51

17.17.集水桝の設計が適切でなかったもの（不当事項）
Improper Design of Catch Basins (Improprieties)

Ministry of Land, Infrastructure, Transport and国土交通省
Tourism
1238万円(指摘金額)
12.38 million yen(Improper amount)

Outline of the Projects

Methods of designing catch basins

・Ichinoseki City and Hino Town respectively constructed catch basins, box
culverts for discharging rainwater to rivers.

・Ichinoseki City designs catch basins, selecting standard drawings suited
to the conditions of the construction sites based on the Standard Design ofCivil Engineering Structures Vol.1 Gutters and Culverts (established by the
Ministry of Construction) (Japan Construction Engineers’ Association).

・Ichinoseki City and Hino Town respectively installed 4 and 8 catch basins.

⇒ Decided the shapes and thickness of components for the side walls
and the bottom

Road, etc.

Installed at connecting partsof box culverts crossing
under a roadBox culvert

Catch basin

・Hino Town designs catch basins, calculating stresses of the reinforcing
bars by obtaining loads including earth pressures applied to components
for the side walls and the bottom of the basins, based on the Design
Manual (draft) (the Kinki Regional Development Bureau, MLIT).
⇒ Decided the shapes, thickness, and amount of reinforcing bars of thecomponents for the side walls and the bottom

Audit Results
Catch basins designed without considering the impact of vehicle loads

Ichinoseki City: 3; Hino Town: 5・Designed by selecting standard drawings applicable when the impact of vehicle loads are ignorable, despite
vehicles possibly passing over the catch basins.
・Re-calculation of the stresses by considering vehicle loads revealed that the shear stresses of the concrete on
the side walls and the bottom of the basins were not within the safe ranges for stress calculations.
Catch basins constructed based on bar arrangement drawings with the incorrect layout intervals of reinforcing bars
Hino Town: 2・The reinforcing bars were erroneously arranged at intervals of 25cm, which should have been 12.5 cm.
・Re-calculation based on the 25 cm intervals revealed that tensile stresses of the bars at the bottom of the basins
were not within the safe ranges for stress calculations.

Copyright©2023

Board of Audit of Japan

Source: Provided by Ichinoseki City

The catch basin extended to theroadway with vehicles possibly
passing over top.

This material is a simplified version of the original Audit Report, and does not necessarily correspond to it;
see the FY2022 Audit Report (Japanese only).

52