1. Assumptions of large-scale earthquakes in the program forresilience of oil supply infrastructure (Presentation of opinions)
Outline of construction works under the program for resilience

Evaluation of earthquake resistant performance

Agency for Natural Resources and Energy
Agency for Natural Resources and Energy
18,780.31 million yen (Background amount)

Assumption of a Nankai Trough earthquake is insufficient(for 10 of 12 oil refineries in Kinki area)
Earthquakes occurring in almost the

Earthquakes occurring furthest fromsame places of the past earthquakes

the sea within the possible range

Seismic
intensity scale
7
6 upper
6 lower
5 upper
5 lower4
Under 3陸側ケース
Landsidescenario

Basic scenario

Implementation ofcountermeasures
Strong motion area

Safety stop measures forfacilities(Reinforcement ofemergency shutdown
valves in piping)

Earthquake, liquefaction, andtsunami countermeasures(Back revetments, premises piping)

Source: material of the working
group for countermeasuresagainst Nankai Trough Earthquake

Assumption of a Tokyo inland earthquake is insufficient(2 of 8 oil refineries in Kanto area)

Capacity
increase of
⼊出荷設備の能⼒増強対策
receiving/shipping
facilities 等)(ロリー出荷能⼒の増強(e.g., Increase of lorry shipment
capacity)(Excerpt from the Ministry of Economy,
Trade and Industry website)・Amounts of the government subsidies pertaining to earthquake countermeasures
32,902.97 million yen (FY2014 to FY2019)

Strong motion area

Earthquake resistant performance isevaluated based on the “basic scenario”

Report byExpert examination committee on
Countermeasure for an inland Tokyo
earthquake
July 2005
Expert examination Committee on
Countermeasure for an inland Tokyo
earthquake,
Central Disaster Management Council

Largest possible earthquake
Latest scientific knowledge

Report on the source fault model,
distribution of seismic intensity,
tsunami height of M7 class earthquake
hitting the metropolitan area, M8 class
earthquake along the Sagami TroughDecember 2013
Study Group on an inland Tokyo
earthquake model

Evaluated earthquake resistant performance based on the 2005
report on earthquakes possibly hitting the Tokyo metropolitan area

 Instruct oil companies to adopt the most severe scenario by using the latest earthquake data when evaluating earthquake resistant performance.

Presentation  Instruct oil companies to evaluate earthquake resistant performance of the 12 oil refineries, as described above and to take earthquakeof opinions
countermeasures again.
Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct;
see the FY2019 Audit Results (Japanese only).

１. Assumptions of large-scale earthquakes in the program forresilience of oil supply infrastructure (Presentation of opinions)

Agency for Natural Resources and Energy
18,780.31 million yen (Background amount)

Outlineof theProgram The program of oil companies to enhance resilience of oil supply infrastructure by implementing countermeasuresfor earthquakes, liquefaction and tsunamis for receiving/shipping facilities of refineries in each area, in preparation forrisks such as large-scale earthquakes, with the aim of establishing a system that can sustain stable oil supply atnormal times and at the time of disaster.
 “A system that can sustain stable oil supply” means a system where oil companies maintain the minimum receiving andshipping functions provided in their business continuity plans.
 In their business continuity plans, oil companies stipulate that the minimum receiving and shipping functions include anability to ship one-half of their normal land-based shipping volume by tank truck.
 When evaluating an earthquake resistant performance, oil companies are expected to obtain “the data of ground motion
acceleration (acceleration) of the earthquake engineering base (strong ground deep underground)” (the earthquakedata) from the Cabinet Office and estimate an acceleration on the ground surface.

Audit
Results

 In the evaluation of earthquake resistant performance, assumptions of large-scale earthquakes varied among oil
refineries and some of them were insufficient in light of the purpose of the Nankai Trough Report and theMetropolitan Area Earthquake Report.
12 oil refineries in total
・In the evaluation of earthquake resistant performance in the event of a Nankai Trough earthquake, some oil
refineries estimated accelerations of the ground surface, based on accelerations of the earthquake engineering basesof both the basic scenario and landside scenario, and adopted the basic scenario even though the landsidescenario had a higher maximum acceleration of the ground surface; other oil refineries estimated an
acceleration of the ground surface based on the basic scenario only even though the landside scenario had ahigher maximum acceleration of the earthquake engineering base than the basic scenario.
10 oil refineries
・In the evaluation of seismic performance in the event of a Tokyo inland earthquake, some oil refineries evaluatedearthquake resistant performance based on the earthquake data of “the 2005 report on earthquakes possibly
hitting the Tokyo metropolitan area”, even though “the 2013 report” had a higher maximum acceleration of theearthquake engineering base than the 2005 report.
2 oil refineries

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct;
see the FY2019 Audit Results (Japanese only).

１. Assumptions of large-scale earthquakes in the program forresilience of oil supply infrastructure (Presentation of opinions)

Presentationof Opinions

Agency for Natural Resources and Energy
18,780.31 million yen (Background amount)

Instruct oil companies to: use the latest earthquake data for evaluation of earthquake resistant performance in the future and to adopt themost severe scenario if there are several cases in which the earthquake data are available; and if it is difficult toensure the earthquake resistant performance for the most severe scenario, consider also other measures toestablish a system that can sustain stable oil supply by establishing a system for backup supply.
 evaluate the earthquake resistant performance as in the case above for the 12 oil refineries; to ensure
earthquake performance of the facilities that are found to have insufficient earthquake resistant performanceby taking earthquake countermeasures again; and if it is difficult to ensure the earthquake resistant performancefor the most severe scenario, consider other measures to establish a system that can sustain stable oil supply.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct;
see the FY2019 Audit Results (Japanese only).

2. Anti-inundation measures for private power generators
at disaster base hospitals (Demand for measures)(IAA) National Hospital Organization / (IAA) Japan Community Health careOrganization / (IAA) Japan Organization of Occupational Health and Safety
11,056.06 million yen/ 3,194.62 million yen / 21,318.98 million yen(Background amount)（Note: This slide describes 2) of the Outline of Selected Audit Findings and similar issues the Board found in the audit of other two organizations.）

Disaster base hospitals

Hospitals with advanced

Audit results

medical care functions for

Lacking or insufficient inundation measures
Number ofof private 無停電電源装置
Number of
病院数 Number
自家発電機
hospitals
generators
UPS systems

critical care of critically ill
emergency cases that
occur frequently at a timeof disaster.
Private power
generators

Secure power source for theequipment necessary tomaintain basic functions of
the hospital.

In the light of the importance of their role at a timeof disaster, disaster base hospitals need antiinundation measures to secure power necessary
to continue to provide medical care at a time offlooding that has been frequent in recent years.
Copyright©2020 Board of Audit of Japan

National Hospital
2
Organization（独）国⽴病院機構
Japan
Community1（独）地域医療機能
Health careOrganization
推進機構
Japan
Organization（独）労働者健康of Occupational
安全機構
Health and Safety
Total

計

3

6

2

(台)

(台)

4

2

4
2

1
3

6

2
4

2
3

3
5

4

5

10
10

10
10

Demand for measures 6 disaster base hospitals should decide temporary
measures for the private power generators installed ina place with a risk of flooding, and formulate plans to
relocate the generators or install watertight doors
or water stops depending on the situations of thebuildings where the generators are installed 3 organization headquarters should establish asystem to check the status of anti-inundation
measures described above
This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only) . （１）（２）（３）

２. Anti-inundation measures for private power generators
at disaster base hospitals (Demand for measures)Outline ofDisaster
Base
Hospitals



11,056.06 million yen/ 3,194.62 million yen / 21,318.98 million yen(Background amount)

Disaster base hospitals have advanced medical care functions to provide critical care in critically ill
emergency cases that occur frequent at a time of disaster and are designated by prefectures.
63 hospitals (37 hospitals of National Hospital Organization, 13 hospitals of Japan Community Health careOrganization, and 13 hospitals of Japan Organization of Occupational Health and Safety) were designated as
disaster base hospitals.
According to the notification from the Ministry of Health, Labour and Welfare, disaster base hospitals should
possess the private power generators which have a capacity to cover 60% of the power generation capacity innormal times, and secure power supply from the private power generators for the facilities necessary tomaintain the basic functions of the hospitals in normal times.



23 Disaster base hospitals are located in areas at risk of flooding.
10 private generators and 10 UPS systems at 6 disaster base hospitals: some had not taken any antiinundation measures, and others installed water stops whose heights were not high enough to prevent
flooding.
There was a risk that flooded generators could not operate and the hospitals could not secure power
necessary for continued provision of medical care when commercial power supply stopped due to flooding.

Regarding the private power generators installed in places at risk of flooding, 6 disaster base hospitals should
decide temporary measures and formulate plans to relocate the private power generators or install watertightdoors, etc. depending on the situations of the buildings where the generators are installed.
3 organization headquarters should establish a system to check the status of anti-inundation measuresdescribed above.

Audit
Results

Demandfor
Measures(IAA) National Hospital Organization / (IAA) Japan Community Health careOrganization / (IAA) Japan Organization of Occupational Health and Safety

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only). （１）（２）（３）

3. Implementation of childcare for sick children at nurseries established byusing subsidy for development of company-led childcare services project(Demand for measures)
Audit whether nurseries, etc. for sick children (including nurseries for sick children and temporary
childcare rooms) established in company-led childcare facilities by using subsidy are used and how
the Foundation for Child Well-being examines subsidy applications from the perspective ofeffectiveness

Audit results of 25 facilities* of 25 service providers
11 facilities of 11 service providers

are not providing childcare for sick children(Equivalent to over 64.81 million yen subsidy for establishment of nurseries, etc. for sick children)

Cabinet Office
64.81 million yen (Improper amount)<Industry-sponsored childcare services>*Selected from 1,116 facilities

Cabinet OfficeSubsidyFoundation for Child Well-being(subsidized entity)

Failure to secure thenecessary number of nurses
due to insufficient planning 8 facilities were not providing childcare for sick children at all. Sck Child Day Care
 3 facilities had discontinued childcare for sick children and do not plan to resume the service

Response of the Foundation was checked.

Subsidy

Examination

service providers

The initial cost-andprofit analysis was
too optimistic andthe operation was
found impossible

Establishment and operation
Company-led
childcare facilities
Usual childcare

Nurseries, etc. for sick children

Foundation for Child Well-being (subsidized entity)(dedicated space)

The Foundation did not demand submission of a plan pertaining to a childcare for sick children implementation system when examining subsidy applications
to ensure appropriate examination nor examine whether the applicants were able to secure necessary personnel,

did not fully inform the implementation requirements of the respective business models including different assignment of nursery teachers, and

did not establish a system to assess the status of use of the established nurseries, etc. for sick children and to give instruction as needed.

Demand for measures to the Cabinet OfficeCabinet Office

Make the implementation requirements known
Subsidized entity

Have the subsidized entity establish the following systems to: make every service provider familiar with the implementation requirements when they apply for the subsidy and to makethem submit a plan pertaining to a childcare for sick children implementation system
to ensure appropriate examination,
 sufficiently assess the status of use of nurseries, etc. for sick children established by service providers and instruct toservice providers who have established nurseries, etc. for sick children but are not providing childcare for sick children
Copyright©2020 Board of Audit of Japan

Appropriate
examination
Assessment of
the status of use

Serviceproviders

Instruction

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

3. Implementation of childcare for sick children at nurseries established by using
Cabinet Officesubsidy for development of company-led childcare services project
64.81 million yen (Improper amount)(Demand for measures)
Outlineof theProject

Audit
Results

 The Cabinet Office established company-led childcare service project in FY2016.
 A subsidized entity selected through public offering (from FY2016 through FY2018: the Foundation for Child Wellbeing) implemented the company-led childcare services by granting subsidies to entities which provide the services(service providers) to cover setting up and operation costs for company-led childcare facilities.
 The company-led childcare services include childcare services for sick children and temporary childcare
services (childcare for sick children) , and facilities for the services are set up in accordance with the content of theservices to be implemented.
 Audit results of 25 facilities that were reported in a project completion report to have nurseries for sick children
and temporary childcare rooms (nurseries, etc. for sick children) set up to provide childcare for sick children→ 11 facilities: childcare for sick children was not provided.
・8 facilities: service providers did not provide any childcare for sick children for more than one year after setting
up the facilities (Equivalent to over 47.72 million yen subsidy for establishment of nurseries, etc. for sick children).
・3 facilities: service providers used to provide childcare for sick children but discontinued childcare for sickchildren and do not plan to resume the service as of April 1, 2020 (Equivalent to over 17.08 million yen subsidy
for establishment of nurseries, etc. for sick children).
 The Foundation did not demand submission of a plan on a childcare for sick children implementation system when
examining subsidy applications nor examine whether applicants were able to secure necessary personnel to
implement childcare for sick children.
 The Foundation did not fully inform the implementation requirements of the respective business models including
different assignment of nursery teachers.
 The Foundation did not establish a system to assess the status of use of the established nurseries, etc. for sickchildren and to give instruction as needed.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

3. Implementation of childcare for sick children at nurseries established by using
Cabinet Officesubsidy for development of company-led childcare services project
64.81 million yen (Improper amount)(Demand for measures)

Demandfor
MeasuresCabinet Office should have the subsidized entity establish the following system to: make every service provider familiar with the implementation requirements of the respective business models, andto make them submit a plan pertaining to a childcare for sick children implementation system to ensure
appropriate examination when they apply for the subsidy.
 sufficiently assess the status of use of nurseries, etc. for sick children by service providers and instructservice providers who have established nurseries, etc. for sick children but are not providing childcare forsick children to use their nurseries, etc. for sick children for childcare for sick children.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

4. Calculation of the amount of national treasury benefits to specific health checkups and healthguidance of national health insurance (Presentation of opinions and demand for measures)
Overview of benefits and specifichealth checkups

Issue 1 Validity of the amount of benefits cannot be confirmed.

 Specific health checkups are conducted for hypertension, hyperlipidemia,
etc. caused by accumulation of visceral fat.
 Basic checkup items: height, weight, abdominal girth, blood pressure, liverfunction, blood lipid, blood sugar and urine test Detailed checkup items: anemia, cardiac electrogram and fundoscopy
found necessary by a doctor based on the criteria provided by the public
notification
 If checkups are conducted at medical institutions that havecheckups centers, application for benefit is made under the category ofgroup checkups.
MethodCheckup item
Only basic checkup items（Basic unit price ）Both basic anddetailed checkup items

Ministry of Health, Labour and Welfare (MHLW)
682.60 million yen (Improper amount))
20,425.78 million yen (Background amount)Group checkups
Individual checkups
TaxableTax-freeTaxableTax-freehouseholds households households households
4,190 yen

5,390 yen

5,490 yen

7,060 yen

5,080 yen

6,530 yen

6,600 yen

8,500 yen

Validation was impossible because the municipalities did not keep basic data after correction,
which served as basis of the calculation of the amount of benefits, after preparing implementation
reports.
The Board of Audit conducted analysis as far as possible by using re-output data submitted by the municipalities.
Analysis by the Board
Report by the municipalities
a Detailed checkups

Examinees did not meet thecriteria for detailed checkup:
712,994 in totalb Implemented throughCheckup was conducted at medical
institutions that have checkup
centers: 574,334 examinees in
1,730 institutions

were implemented for
2,127,443 examinees in
total

individual checkups（Basic/detailed unit price ） Detailed checkup items: Implementation of any of the 3 items is
considered as implementation of detailed checkup and basic/detailed
unit price is uniformly applied to calculation of base amount.

Demand formeasuresMHLW should inform every municipality that they are required to appropriatelyorganize and keep data and documents that were collected and used as evidenceof the number of examinees when calculating the base amount of benefits.
Implementation rate of individual items is notconsidered. When implementation rate of alow-price item is significantly higher than therate of other items, it causes a big difference
between the unit price and the actual cost.

Issue 2: Basic/detailed unit price was not based on the status of implementation of detailed checkup
items.
Implementation status of detailed checkup items was examined for a totalof 1,414,449 examinees which was calculated by deducting 712,994
examinees who did not meet the criteria for detailed checkup from 2,127,443
examinees who received detailed checkup.

2項目 計53,417人（同3.7％）
2 items: 53,417 examinees (implementation
rate: 3.7％)
3 items: 11,528 examinees （implementation rate: 0.8％）

Copyright©2020 Board of Audit of Japan

Assumption of MHLW
Basic/detailed unit price=1 item: 1,349,504 examinees (implementation rate: 95.4%)(of which 1,322,584 received anemia test)

Most of the examinees received
only anemia test, whose unit
price is the lowest.

Not basic/detailed unit price but basic unit
price could be applied to a, and not the unit
price of individual checkup but rather thatof group checkup could be applied to b.
However, it is not verifiable whether totaling of
the number of examinees is appropriate,
because correction to basic data made by
the municipalities cannot be verified.

＋

+

３

+

As a result of estimation of the amount equivalent to the benefits based on the unit prices of
the 3 items, which were used for calculation of basic/detailed unit price from FY2020, andnumber of examinees of individual items, a difference of 682.60 million yen was foundbetween the estimated amount and the actual amount equivalent to the benefits provided forspecific health checkups.

Presentationof opinions

MHLW should check the implementation status of each item of thedetailed checkup, and consider measures to decide the basic/detailed
unit price based on the results.
This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

4. Calculation of the amount of national treasury benefits to specific health checkups and healthguidance of national health insurance (Presentation of opinions and demand for measures)

Ministry of Health, Labour and Welfare (MHLW)
682.60 million yen (Improper amount)
20,425.78 million yen (Background amount)

Outline of
National
Treasury
Benefits

 The Benefits are provided to municipalities to pay part of the cost for their implementation of specific healthcheckups and health guidance.
 Specific health checkups are conducted for hypertension, hyperlipidemia, etc. caused by accumulation of visceralfat.
 Specific health checkups cover basic checkup items (height, weight, abdominal girth, blood pressure, liverfunction, blood lipid, blood sugar and urine test) and detailed checkup items (anemia, cardiac electrogram andfundoscopy found necessary by a doctor based on the criteria provided by the public notification).
 The amount of benefits is to be calculated by multiplying the base amount specified in the payment guidelines
by one third as a benefits rate.
 The base amount for specific health checkups is to be calculated by multiplying the base unit price specified
for each implementation method by the number of examinees and by totaling the results.
 Base unit prices are segmented into several unit prices on the basis of ①implementation method (groupcheckups or individual checkups) and ②the basic unit price (for implementing only basic checkup items) or
the basic/detailed unit price (for implementing both basic checkup items and one or more detailed checkup
items).

Audit
Results

 Audit results of the amount equivalent to the benefits payment for the specified health checkups to 942
municipalities in 23 prefectures, which calculated the payment based on the base amount, totaling over
20,425.78 million yen in FY 2008 and FY 2009.
 Validity of the amount of benefits cannot be confirmed because the municipalities did not keep basic datafor calculating base amounts as documentary evidences.
 Basic/detailed unit prices were not based on the status of implementation of detailed checkup items.
 When revising the basic/detailed unit prices based on the implementation status of individual detailed
checkup items and estimating an amount equivalent to benefits by using the revised unit prices, a difference ofover 682.6 million yen was found between the estimated amount and the actual amount equivalent to benefits.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

4. Calculation of the amount of national treasury benefits to specific health checkups and healthguidance of national health insurance (Presentation of opinions and demand for measures)

Demandfor
Measures

Ministry of Health, Labour and Welfare (MHLW)
682.60 million yen (Improper amount)
20,425.78 million yen (Background amount)

MHLW should: inform every municipality that they are required to appropriately organize and keep data and documents thatwere collected and used as evidence of the number of examinees when calculating the base amount of benefits.
 check the implementation status of each item of the detailed checkup, and consider measures to decide thebasic/detailed unit price based on the results.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

5. Early implementation of application for certification of cadastral maps
created under the cadastral survey project (Demand for measures)<Outline of cadastral survey>

For delays, demand for measures was issued in 1978 and 1987

Prefectural Governor
sends the cadastral maps
to the registry office

Certification by thePrefectural Governor

Prefectural Governor
Application▶
forcertification
Municipalities

Results (cadastral maps) aremade available for public
inspection for 20 days andcorrected as needed

Acreage measurement,
creation of cadastral maps

Parcel area survey(setting up control points)

Survey of parcels of land
(Border confirmation)

Briefing to the residents

Municipalities
implementcadastral survey

Scope of provision of
grantsThe Ministry of Land, Infrastructure, Transport
and Tourism (MLIT)
4,333.99 million yen (Improper amount)

The cadastral maps are held at theregistry office.
The maps contribute to smoothland transaction and siteacquisition, and expedition ofrestoration activities after adisaster

Sending cadastral maps

<Audit results>(1) Application for certification was not made despite confirmation ofborders of all parcels in the surveyed district, due to:a. delay in administrative procedures for application for certification(169 projects by 66 municipalities of 14 prefectures)b. assumption that application for certification may not be made without
confirmation of viewing by all landowners(59 projects by 30 municipalities of 11 prefectures)c. assumption that application for certification may not be made withoutcertification of an adjacent district whose control point was used in thesurvey. (43 projects by 23 municipalities of 13 prefectures)(2) Application for certification was not made due to the unconfirmed
borders of some parcels in the surveyed district.
(233 projects by 73 municipalities of 12 prefectures)

Copyright©2020 Board of Audit of Japan＜Demand for measures＞
 Show municipalities clearly that the guidelines do not require confirmationthat the landowners actually viewed the original draft maps.
 Thoroughly inform that application for certification may be made byincluding the control points set up in the survey of uncertified adjacentdistrict in the results of the surveyed district, and that, when some borders are
not confirmed, it is expected that the process will be advanced by creating
maps with unconfirmed borders.
 Set the standard period from creation of cadastral maps to application forcertification, and thoroughly inform municipalities that they are expected toissue a public notice for viewing of prepared draft maps publicly and offer themfor inspection without delay and, after preparation of cadastral maps, to apply
for certification within the standard period mentioned above.
 Regarding the cadastral survey project where cadastral maps have beencreated but application for certification is not made yet, give themunicipalities technical advice to enable them to examine the propriety of
application for certification and to apply for certification without delay for
appropriateThis material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

5. Early implementation of application for certification of cadastral maps
created under the cadastral survey project (Demand for measures)

Outlineof theProject

Audit
Results

The Ministry of Land, Infrastructure, Transport
and Tourism (MLIT)
4,333.99 million yen (Improper amount)

 MLIT provides grants for cadastral surveys and integrated Grants for Comprehensive Infrastructure
Development, to prefectures that bear the cost for cadastral survey municipalities conduct, for the purpose ofclarifying cadastres.
 Municipalities implement cadastral survey projects by ; ①conducting a survey of parcels of land andconfirming their borders, ②creating original maps based on acreage measurement, and ③making the original
maps available for public inspection and preparing cadastral maps.
 Municipalities send cadastral maps to prefectural governors and apply for their certification.
 After cadastral maps are certified by prefectural governors, the cadastral maps are sent to the registry office, andused as official cadastral maps.

 The Board audited 522 cadastral survey projects implemented by 151 municipalities of 16 prefectures, where
original maps and cadastral maps had been created from FY2014 through FY2018, and application for certification
was not made to prefectural governors as of March 31, 2020 (total project cost: 8,843.33 million yen, of which
4,432.19million yen was granted).
⇒ Application for certification was not made despite confirmation of borders of all parcels in the surveyed
district: 271 projects by 104 municipalities of 16 prefectures (total amount of grants: 2,109.03million).
⇒ Application for certification was not made due to the unconfirmed borders of some parcels in the surveyed
district: 233 projects by 73 municipalities of 12 prefectures (total amount of grants: 2,224.96million).

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

5. Early implementation of application for certification of cadastral maps
created under the cadastral survey project (Demand for measures)

Demandfor
Measures

The Ministry of Land, Infrastructure, Transport
and Tourism (MLIT)
4,333.99 million yen (Improper amount)

 MLIT should show municipalities clearly that the guidelines do not require confirmation that the landowners
actually viewed the original draft maps and that when some borders are not confirmed, it is expected thatthe process will be advanced by creating maps with unconfirmed borders.
 MLIT should set the standard period from creation of cadastral maps to application for certification, andthoroughly inform municipalities that they are expected to issue a public notice for viewing of prepared draft
maps publicly and offer them for inspection without delay and, after preparation of cadastral maps, to apply
for certification within the standard period mentioned above.
 MLIT should regularly check the status of application for certification by municipalities, and give the municipalities
that have created cadastral maps but have not yet applied for certification technical advice to enable them toapply for certification without delay for appropriate cases.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

6. Implementation of International Solidarity projects(Measures taken)

Ministry of Foreign Affairs (MOFA)
5,760.00 million yen (Improper amount)

Audit results
Flow of the contributions
Government of Japan
Japan-China(Ministry of Foreign Affairs)
Friendship Center(manages the contributions(Pays contributions)
9.0 billion yen was
paid in Mach 2016

・Tree-planting project・Youth exchange project・Third country project

The fund standards

and implements projects(partially commissioned)• The youth exchange project had been implemented every year
since FY2016, but• The tree-planting project and the third country project had
not been implemented. 5,760.00 million yen (equivalent to thecontributions) planned for both projects was not used at theend of FY2019.
• the situation where the funds were not utilized had continued.

･The tree-planting project･The third country project MOFA paid the contributions to the Center for implementation of the
projects in multiple fiscal years. However, MOFA was not aware that the
5,760.00 million yen
provided fund is subject to the standards for funds because the fund is
Implementing bodies
named “contribution.” As a result, MOFA did not provide instruction and(implementation of the projects)
supervision under the standards to make the Center examine
treatment of the funds that are not likely to be used.

”Standards forfunds createdby grantingofsubsidy” (CabinetDecision inAugust2006) (excerpt)
3 Establishment of funds and Instruction and supervision of fund projects(4) Standards for funds that are not likely to be useda. Fund corporations holding funds that fall under the criteria below (hereinafter referred to “funds
that are not likely to be used”) should study treatment of the funds at the time of periodical review,which includes returning the government subsidies that are source of the funds to the nationaltreasury.

“Guidelinesforgovernment project review”(Council onAdministrativeReforminApril 2013)(excerpt)
Part 3 Inspection of funds
Individual ministries and agencies should ensure transparency of their funds every
fiscal year through the following efforts and carry out strict inspection pertaining topossible surplus funds. (omitted)
1 Fund sheets (fund inspection sheets)(1) Preparation and publication of fund sheets (omitted)
Status of review based on the ”Standards forfunds createdbygrantingof subsidy”(Cabinet Decision in August2006) shouldbeclearlyindicatedinthefundsheet.
Copyright©2020 Board of Audit of Japan

Measures taken by MOFA
MOFA revised the guidelines in September 2020 to① implement the tree-planting project and the third country
project after reviewing their content② review the project‘s content in the light of the operation of the
projects by providing instruction and supervision andinspection based on the fund standards③ have the Center study treatment of the funds that are not
likely to be used and, return funds with no prospect of use to
the national Treasury

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

6. Implementation of International Solidarity projects(Measures taken)

Ministry of Foreign Affairs (MOFA)
5,760.00 million yen (Improper amount) MOFA formulated guidelines and project implementation plans to implement the Japan-China International Solidarity
Projects for Afforestation and Tree Planting, and contributed 9,000 million yen as Japan-China tree planting and tree
planting international solidarity project contributions (contributions), to Japan-China Friendship Center (a public
interest incorporated foundation; the Center), in order to further improve relations with China by addressing
environmental problems in China, such as yellow sand that may come to Japan, raising environmental awareness andfurther promoting understanding of Japan through exchange of young people, and contributing to the prevention of
Outlinedesertification, and to strengthen a strategic mutually beneficial relationship by addressing issues of the internationalof thecommunity.
Projects  According to the guidelines, the Center was to utilize the contributions to implement the following projects: (1) treeplanting project in China (tree-planting project), (2) youth exchange project and (3) tree-planting project in third
countries (third country project).
 In 2006, the government made a cabinet decision on “Standards for funds created by granting of subsidy” (the fundstandards) which set standards for ministries and agencies to instruct and supervise fund corporations that
implement projects for two years or more using funds created by subsides from the ministries and agencies.
 Individual ministries and agencies prepares and publishes fund sheets, and carry out an inspection pertaining topossible surplus funds, based on “Guidelines for government project review” (the guidelines).

Audit
Results

 The youth exchange project had been implemented every year since FY2016, but the tree-planting project and the third
country project had not been implemented and 5,760.00 million yen (equivalent to the contributions) planned for bothprojects was not used at the end of FY2019.
 MOFA paid the contributions to the Center for implementation of the projects in multiple fiscal years. However, MOFA was
not aware that the provided fund is subject to the fund standards because the fund is named “contribution” and as a result,did not provide instruction and supervision under the fund standards to make the Center examine treatment of
the funds that are not likely to be used, nor inspect the funds based on the fund standards by the fund sheet.
 It was improper that the situation where the funds were not utilized had continued without instruction andsupervision under the fund standards, and both projects have no plan to implement for four years after the contributions
was made.

 MOFA revised the guidelines in September 2020 to implement the tree-planting project and the third country
project after reviewing their contents, to review the projects’ contents in the light of the operation of the projects
by providing instruction and supervision and inspection based on the fund standards, and to have the Center
Measuresstudy treatment of the funds that are not likely to be used so that the Center return funds with no prospect of use to
the national treasury.
taken by
 In September 2020, MOFA issued a notice to the Center to inform that projects should be implemented based on
MOFA
the above guidelines, and also issued a notice to the relevant divisions to inform that the same situation will not
be repeated in cases where voluntary contributions are made to a fund corporation that implements projects for multiple
fiscal years, in the future.
Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

7. Implementation of subsidy program for purchase ofnon-step buses (Measures taken)<<Non-step buses>> (low step buses)
Bus whose floor height from the ground surface is under 30cm<<Audit results>>

Photo from the website of Tohoku Transportation Bureau<<Calculation method ofsubsidy amount>>

Upper limit:
1.40 million yen(Cost eligible for subsidy－price of ordinary vehicle) ×1/2 = subsidy amount

Body price after pricediscount (price of thevehicle body and onboard equipment)

Average price of one-step buses(survey by MLIT)

Special specification price of color
coating of the vehicle body andsheet material is not eligible for thesubsidy
Copyright©2020 Board of Audit of JapanMLIT
422.37422.37 million
million yenyen (Improper(Improper amount)amount)1,436 vehicles of 65 subsidized entities

Average discount rate of special specification price (83.1%) is higher than
average discount rate of body price (13.3%)
Average discount rate of body price of vehicles with subsidy amount 1.4 million
yen (1,134 vehicles) is lower than that of vehicles with subsidy under 1.4 million
yen (302 vehicles), but average discount rate of special specification price of theformer is higher than the latter.
There was a
Vehicle A（10 thousandyen）

Vehicle B（10 thousandyen）

Body price (before
discount)

(ａ)

2514

2515

Discount for body price(discount rate)

(ｂ)

△228
(9.1％)△486(19.3％)

Body price after
discount (= cost eligible
for subsidy)(ｃ=ａ+ｂ)

2286

2029

Special specification
price (before discount)

(ｄ)

295

290

Discount for special
specification price(discount rate)

(ｅ)

△293
(99.3％)△29(10.0％)

Purchase price (after
discount)(ｃ+ｄ+ｅ)

2288

2290

1/2 of the difference
between the costeligible for subsidy andthe price of ordinary
vehicle(f = (cｰ18.80
millionyen)/2)

203

74

Subsidy amountf or 1.4 million
yen, whichever
lower

140

74

difference in theamount of subsidy
because cost eligible
for subsidy increased
or decreased
depending on how thediscount had been
provided for the body
price and special
specification price.

Almost the same

Nearly double
differenceThis material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

7. Implementation of subsidy program for purchaseof non-step buses (Measures taken)<Analysis by the Board of Audit>

MLIT
422.37 million yen (Improper amount)

1,134 vehicles with 1.4 million yen as subsidy

 Estimated cost eligible for subsidy by adding the discount of special specification price to the discount of the body price
Most vehicles of the group with lower subsidy wereAnalysis by dividing the 1,134 vehicles into 405 vehicles that maintain
1.4 million yen and 729 vehicles whose subsidy decreases, after
provided 1.4 million yen as subsidy because therecalculation of the subsidy
discount on the special specification price is large while
Group with the same subsidy (1.4 million yen)
the discount on the body price is small.
Number of vehicles
500

Body price
Average discountrate of body price:
17.9%

400

Special specification priceIn light of the purpose of the subsidy, it isinappropriate that there were differences in theamount of subsidy depending on how the discounthad been provided for the body price.

Average discount rateof special specification
price: 45.7%

300
200

31
vehicles(7.6%)

100
0Under 10

From 10 tounder 20

From 20 to From 30 to From 40 to From 50 to From 60 to From 70 to From 80 to From 90 to 100
under 30 under 40 under 50 under 60 under 70 under 80 under 90 under 100
Discount rate (%)

Group with lower subsidy
Number of vehicles
500

Body price

Average discount rateof body price: 9.0%

400
300

Special specification price
Average discountrate of special
specification price:
88.5%

388
vehicles(53.2%)

200
100
0Under 10

From 10 tounder 20

From 20 to From 30 to From 40 to From 50 to From 60 to From 70 to From 80 to From 90 to 100
under 30 under 40 under 50 under 60 under 70 under 80 under 90 under 100
Discount rate (%)

Copyright©2020 Board of Audit of Japan

Costs eligible for subsidy of the 1,436 vehicles were recalculated
based on the average discount rate of the body price according to thesurvey on discounts regarding non-step buses conducted by MLIT
(including vehicles that were not eligible for the subsidy.). The
resulting deviation of subsidy was 422.37 million yen.

Concentration of 388
vehicles (53.2%) on the“discount rate 100%” isunnatural<<Measure taken by MLIT>>
The payment guidelines were revised in September 2020 todecide the reference discount rate based on annual
survey on the actual discount rate of the vehicle body anduse the reference rate for vehicles with a lower
discount rate
This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

7. Implementation of subsidy program for purchase ofnon-step buses (Measures taken)

MLIT
422.37 million yen (Improper amount) To encourage widespread use of non-step buses, MLIT provides bus operators who purchase non-step buses (or lowfloor buses) with subsidies equivalent to one-half of the difference between the body price (price of the vehicle
Outlineitself and on-board equipment) and the ordinary vehicle price (average prices of one-step buses based on MLIT’sof theexamination) (subsidy ceiling per vehicle: 1.4 million yen).
Program  Cost eligible for the subsidy is the body price only; special specification price (price for additional special
specifications, etc.) is not eligible for subsidies.
 When purchasing buses, it is common that a discount is offered to one or both of the body price and the special
specification price.
 The Board audited 1,436 vehicles purchased by 65 subsidized entities (subsidies granted: 1847.21 million yen).
 An average discount rate to the special specification price (83.1%) is higher than that of the body price (13.3%).
 The Board found that some buses of the same model that had almost the same prices before and after
discounts were provided with different amounts of subsidies because different discount rates were offered totheir body prices and special specification prices.
 It was considered that many vehicles might have received a maximum subsidy of 1.4 million yen, as a result oflarge discount rate on the special specification price and small discount rate on the body price.
Audit
 For further analysis, the Board divided 1,134 buses which have received a maximum subsidy of 1.4 million yen, into 405
vehicles that would still receive 1.4 million yen as a subsidy when recalculating their subsidies by deducting bothResults
discounts for their body prices and special specification prices from their body price, and 729 vehicles that would
receive less than 1.4 million yen.
It was found that the latter group had larger discount rates for their special specification prices (88.5%on
average versus 45.7% of the former group) and smaller discount rates for their body prices (9.0% versus
17.9%).
 A situation in which costs eligible for subsidy increased or decreased depending on how discounts were
provided for the body prices and amounts of the subsidy increased or decreased accordingly, was inappropriate inlight of the purpose of the program to provide a subsidy based on the difference between the purchase price of nonstep buses and the price of ordinary vehicles.
Measurestaken

 The payment guidelines were revised in September 2020 to decide the reference discount rate based on annual
survey on the actual discount rate of the vehicle body and use the reference rate for vehicles with a lower discountrate, and the contents of the guidelines were informed.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

8. Allowances to persons completing vocational training(Measures taken)
Extendedtraining
allowances

Ministry of Health, Labour and Welfare(MHLW)
3,287.24 million yen (Background amount)・”Allowances for the period of waiting for training”
・”Allowances for the period of receiving training”
・”Allowances for a fixed period after the end of training” : Allowances after the end of training

Percentage of payment of allowances after the end of training by Labour Bureau = number of the initial recipients ofallowances after the end of training / number of the initial recipients of extended training allowances
36 Labour Bureaus: under 3.3%

(Prefectural Labour Bureaus of 47
prefectures in Japan)

312 public employment security officesin the service area of the 36 Bureaus
It was judged that in the light of the favorable employment situation,
persons completing training do not fall under persons withconsiderable difficulty in employment in principle.
It was judged that only persons completing training who are deemed
especially needful of support based on their job search activities(e.g. multiple applications for job vacancies) fall under persons withconsiderable difficulty in employment.

11 Labour Bureaus: 29.9%〜45.9%
122 offices in the service area of the 11
Bureaus

It was deemed that persons completing training fallunder persons with considerable difficulty inemployment only for the reason that they don’t havea job at the end date of training.
Among 4,978 random samples from persons completing training who obtained positive
grant decisions regarding the allowances →789 were confirmed to have applied for
multiple job vacancies in the 4 weeks until the end date of training

In the law amendment in 2003 eligible persons are changed to persons with considerable difficulty in employment, but→ the guidelines remained unchanged and did not specify concrete requirements for confirming that persons completing training fallunder persons with considerable difficulty in employment.

The situation where items of the examination to determine whether a person completing training falls under persons with considerable
difficulty in employment varied was not appropriate because fairness among persons completing training was not ensured.

MHLW amended the guidelines in August 2020 and specified concrete requirements for confirming that a person completing training falls
under persons with considerable difficulty in employment (e.g., multiple applications for job vacancies in the occupation pertaining to thetraining content in the 4 weeks until the end date of the training). The amendment was applied to persons who completed training after the samemonth.
Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

8. Allowances to persons completing vocational training(Measures taken)
Outlineof theProgram






Audit
ResultsMeasurestaken

Ministry of Health, Labour and Welfare(MHLW)

3,287.24 million yen (Background amount)In cases where basic allowances with the ordinary duration under the Unemployment Insurance are not sufficient
for recipients due to a severe employment situation, those who are eligible for extended training allowances can beprovided with basic allowances for an extended duration.
Extended training allowances are provided to recipients who are receiving public vocational training, etc.
designated by the chief of the public employment security office and include the following three types: “allowances
for the period of waiting for training,” “allowances for the period of receiving training,” and “allowances fora fixed period after the end of training (Allowances after the end of training).”
Allowances after the end of training are provided to recipients who complete training and are approved by
the chief of the public employment security office as persons with considerable difficulty in employment
only for the reason that they don’t have a job at the end date of training. The recipients are provided withbasic allowances for more than the number of days prescribed for the basic allowance, up to 30 days from the day
after the training ends.
In the law amendment in 2003, eligible persons for allowances after the end of training are limited to those withconsiderable difficulty in employment, as mentioned above.
The proportion of recipients who are provided with the first payment of allowances after the end of training to thosewith the first payment of all extended training allowances (proportion of allowances after the end of training)ranged from 0% to 45.9% among Prefectural Labour Bureaus, and was under 3.3% in 36 Prefectural Labour
Bureaus and between 29.9% and 45.9% in 11 Prefectural Labour Bureaus.
The public employment security offices varied in items of the examination to determine whether a personcompleting training falls under persons with considerable difficulty in employment.
The guidelines, which prescribed the detailed regulations on allowances after the end of training, remained
unchanged, not in accordance with the law amendment in 2003, and did not specify concrete requirements forconfirming that persons completing training fall under persons with considerable difficulty in employment.
Fairness among persons completing training had not been ensured.
MHLW amended the guidelines in August 2020 and specified concrete requirements for confirming that aperson completing training falls under persons with considerable difficulty in employment.
The amendment was applied to persons who completed training after the same month of the amendment of theguidelines in August 2020.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

9. Financial management pertaining to installation of large cages
for chimpanzees (Improprieties)(National University Corporation) Kyoto University

1,128.23 million yen (Improper amount)•

Field audit of Kyoto University in December 2018 and suppliers in May 2019 found inappropriate financial management (e.g., non-delivery) regarding multiple
contracts for large cage facilities for chimpanzees in the Primate Research Institute.

•

In June 2020, Kyoto University published an inspection report (Kyoto University Report) that indicated misuse of 506.69 million yen for the cage facilities.

The Board of Audit audited 100 contracts for cage facilities (contract amount: 1,212.37 million yen) .
■Audit results: Improper financial management in 8 aspects in 55 contracts with a total payment of 1.12 billion yen
1
Researchers of the Primate
Research Institute had suppliers
create false estimates andstatements of delivery by
instructing fictitious transaction,and prices were paid for thefictitious transaction.

2
General public bidding was
avoided by deliberately
dividing contracts with thesame work contents, point andtime limit of delivery against
the intent of provisions ofaccounting rules.

15 cases 49.85 million yen

15 cases 52.48 million yen

5Contracts were not modified toreduce the contract amountalthough material change wasmade in the contents of thecontracts such as a reduction inquantity of materials used.

6
Some parts were lacking in thedelivered goods, which did notmeet the specifications, but
researchers of the institutemade them pass theacceptance inspections, andthe prices were fully paid.

9 cases 624.23 million yen
2 cases 60.83 million yen

3 According to the Agreement on
Government Procurement, the procuringorganization should not have suppliers
who are directly involved in the planningof specifications participate in thebidding procedure, and this is publicly
notified. However, bidding by suppliers
who were directly involved in thearrangement of specifications was notmade void and contracts were concluded
with the said suppliers. Further,
Researchers of the institute informed
the budget amount of the project only
to a specific supplier and had the said
supplier participate in general bidding.

12 cases
7

Purchase prices of the goods
delivered in the previous year were
paid as goods delivered after thecontract conclusion in the current
year, and purchase prices of the
products delivered in the
succeeding year were paid as
price of goods delivered in thecurrent fiscal year.

3 cases
Copyright©2020 Board of Audit of Japan

970.19 million yen

54.97 million yen

4

Proper estimate comparison
was not made in discretionary
contracts as researchers of theinstitute had a specific suppliercollect quotations of othersuppliers and pretended tohave individually collected
quotations from these
suppliers.

18 cases 75.26 million yen
8Acquired goods were used forother purposes.

1 case470 thousand yen• There are overlapping contracts inthe numbers of cases and amounts
among the 8 cases.
• Highlights in red are not included in
the Kyoto University Report.

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

9. Financial management pertaining to installation of large cages
for chimpanzees (Improprieties)
Outline oftheProcurement
Procedures

Audit
Results(National University Corporation) Kyoto University

1,128.23 million yen (Improper amount)

The Primate Research Institute, Kyoto University made contracts pertaining to installation of large cagefacilities for chimpanzees.
Contracts for procurement are required to be made properly in accordance with procedures stipulated basedon the accounting regulations.

 Researchers of the Primate Research Institute had suppliers create false estimates and statements ofdelivery by instructing fictitious transaction, and prices were paid for the fictitious transaction.
 General public bidding was avoided by deliberately dividing contracts with the same work contents, point and time
limit of delivery against the intent of provisions of accounting rules.
 As researchers of the institute informed the budget amount of the project only to a specific supplier, generalbiddings were not conducted appropriately.
 Proper estimate comparison was not made in discretionary contracts as researchers of the institute had a specificsupplier collect quotations of other suppliers and pretended to have individually collected quotations fromthese suppliers.
 Contracts were not modified to reduce the contract amount although the amount of material change was madein the contents of the contracts such as a reduction in quantity of materials used.
 Some parts were lacking in the delivered goods, which did not meet the specifications, but researchers of theinstitute made them pass the acceptance inspections, and the prices were fully paid.


Cause

Researchers of the Primate Research Institute significantly lacked basic recognition of proper financial
management.
 Officers in charge of accounting did not sufficiently verify the contents of the contracts and conduct
acceptance inspection.
 Kyoto University did not instruct sufficiently that researchers of the Primate Research Institute and officers in chargeof accounting should conduct procurement properly in accordance with provisions of accounting regulations.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

Ministry of Land,
10. Appropriate implementation of inspection of contracts for purchase of
MLIT
Infrastructure, Transport
properties based on accounting laws and ordinances
Tourism(MLIT)
4,860.27 million yenand(Improper
amount)(Measures taken)
In November 2019, MLIT disclosed that officials of the responsible section of Tokyo Regional Civil Aviation Bureau had given instructions to create
documents stating completion of the delivery of 3 contracts concluded by the bureau in FY2018 (contract amount is 60.93 million yen) even though someequipment was not delivered by the deadline and the prices had been paid.
〈Flow of inspection to be carried out by inspection officers〉

3 casesabove①Completion of construction and delivery of goods②Verifies completion of provision ofInspection officers

services or goods at theconstruction site or the point ofdelivery of the goods③Creates inspection records

Appointment④
Submission

were audited in detail

The inspection officers did not
implement inspection at theconstruction site.
They determined completion ofdelivery based on the check of
documents submitted by the party
to the contracts or check withpersonnel of the government
offices where the goods weredelivered.

Tokyo Regional Civil Aviation Bureau
reported that inspection officers had verifiedcompletion of delivery by June 2019.
However, the verification was made by theinspection officers based on telephonereport by site personnel. As of November
2019 when field audit was conducted,
inspection by inspection officers on theconstruction site was not implemented.

Officers responsible for actions

Audit results

authorizing expenditures

Even though neither inspection officers nor delegated inspection
officers verified that the services or goods provided conformed to theterms of the contracts at the construction site or the point ofdelivery of the goods, inspection officers created inspection records
and the contract prices were paid based on the records.
91 cases
Copyright©2020 Board of Audit of Japan

4,786.41 million yen

Measures taken by MLIT

 In order to inform the importance of inspection thoroughly, provide
training in accounting laws and ordinance to inspection officers andcomprehensively appointed inspection officers
 In order to ensure appointment of inspection officers suitable for thecontract content, clearly indicate the scope of inspection, such as
content and place of inspection, for each inspection officer, in theappointment form of inspection officers in the guidelines, and inform
officers responsible for actions authorizing expenditures of their revisionThis material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

10. Appropriate implementation of inspection of contracts for purchase of
MLIT
properties based on accounting laws and ordinances
4,860.27 million yen (Improper amount)(Measures taken)
Outlineof theSystem






Audit
Results

Based on accounting laws and ordinances, the officers responsible for actions authorizing expenditures
should implement inspections to verify the completion of provision of services or goods either personally or byassigning an assistant.
According to Cabinet Order on Budgets, the Settlement of Accounts, and Accounting, the officers
responsible for actions authorizing expenditures or inspection officers should create inspection records after
completion of inspections, and contract prices should not be paid unless based on inspection records.
According to the guidelines of Tokyo Regional Civil Aviation Bureau, inspection officers should implement
the inspection on the construction site or the point of delivery of the goods. Also, the verification of thegoods should be implemented by comprehensively appointed inspection officers (who are a staff member of
local airports, etc. and comprehensively appointed by the officers responsible for actions authorizing expenditures as
an inspection officer) or inspection officers (who are designated by a comprehensively appointed inspection officer
as a delegated inspection officer).
The Board audited 767 contracts (contract amount: 59,522.00 million yen) which were made from the fiscal
year 2014 through November 2019.
Even though neither inspection officers nor delegated inspection officers verified that the services or goods
provided conformed to the terms of the contracts at the construction site or the point of delivery of thegoods, inspection officers created inspection records and the contract prices were paid based on the records.
(91 cases: 4,786.41 million yen)
Although completion of provision of services or goods was not verified appropriately because comprehensively
appointed inspection officers did not submit acceptance inspection reports to the officers responsible foractions authorizing expenditures, inspection officers created inspection records and the contract prices were
paid based on the records. (9 cases: 80.88 million yen)

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

MLIT
10. Appropriate implementation of inspection of contracts for purchase ofproperties based on accounting laws and ordinances
4,860.27 million yen (Improper amount)(Measures taken)

 In order to inform the importance of inspection thoroughly, MLIT provided training in accounting laws and ordinances
to inspection officers and comprehensively appointed inspection officers by the end of June 2020, and continuously will
provide the training.
 In the appointment form of inspection officers and comprehensively appointed inspection officers, some cautions
were indicated, including the caution that inspections should be implemented at the construction site or the point of
Measuresdelivery of the goods, and a copy of the appointment form and the cautions thereon are to be provided to theappointees.
taken by
MLIT
 It was clearly stated in the guidelines that comprehensively appointed inspection officers should submit acceptanceinspection reports to the officers responsible for actions authorizing expenditures after verifying goods at the pointof their delivery without fail, and that inspection officers create inspection records after reviewing the contents of
the acceptance inspection reports.
 In order to ensure appointment of inspection officers suitable for the contract content, it was clearly indicated that thescope of inspection, such as content and place of inspection, for each inspection officer, should be described in theappointment form of inspection officers.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

Ministry of the Environment
11. Implementation of the Regional Renewable Energy-Based Hydrogen
1,932.66 million yen (Improper amount)
Station Introduction Project (Measures taken)

Conceptual Diagram of Renewable
Energy-based Hydrogen Station

Subsidies are granted for renewableenergy-based generation facilities
including the use of existing
renewable energy-based generation
facilities, and renewable energybased hydrogen stations.

Renewable energy-based hydrogen station

Requirement for subsidies
All of the electricity necessary for producing hydrogen(the necessary amount of electricity) is covered byrenewable energy-based generation.

Audit results○ With regard to the requirement for subsidies,

The status of electricity generated using renewable energy against
the total necessary amount of electricity for introduced renewableenergy-based hydrogen stations(1) 7 projects wherein renewable energy-based generation facilities
were newly establishedIn 5 projects (government subsidies: 585.96 million yen), only part of thenecessary amount of electricity was covered by renewable energy-based
generation (45.4% on average).

(2) 12 projects wherein existing renewable energy-based generation
facilities were utilized
In 12 projects (government subsidies: 1,346.69 million yen), all of thenecessary amount of electricity was covered by purchased electricity.

Copyright©2020 Board of Audit of Japan

examination of applications for subsidies andchecking of the performance after the
implementation of projects were not sufficient.
○ Most of the introduced renewable energy-basedhydrogen stations failed to satisfy the
aforementioned requirement.
○ The necessary amount of electricity was not able to
be clearly ascertained.
⇒There are technical challenges to be resolved forappropriately implementing the project.

Measures taken by the Ministry of
the Environment○ Decided to abolish this project○ Decided to conduct technical validation with theaim of contributing to similar projects in the
futureThis material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

Ministry of the Environment
11. Implementation of the Regional Renewable Energy-Based Hydrogen
1,932.66 million yen (Improper amount)
Station Introduction Project (Measures taken)

Outlineof theProject

 Since FY2015, the Ministry of the Environment has granted subsidies for the introduction of hydrogen stations thatgenerate hydrogen through solar photovoltaic generation or other renewable energy-based generation (renewableenergy-based hydrogen stations) and supply generated hydrogen to Fuel Cell Vehicles (FCV), etc.
 Renewable energy-based hydrogen stations aim to comprehensively low-carbonize by curbing CO2 emissions
in the process of generating hydrogen, in addition to curbing CO2 emissions from driving automobiles.
 For receiving subsidies, it is required that all electricity necessary for generating hydrogen (the necessary amountof electricity) is covered by renewable energy-based generation (temporary purchase of electricity is permitted).

Audit
Results

 With regard to the requirement for subsidies that the necessary amount of electricity should be covered in full by
renewable energy-based generation, the Ministry did not sufficiently examine applications for subsidies nor checkperformance after the implementation of projects.
 An analysis of the year-round status of introduced renewable energy-based hydrogen stations revealed that most of the
projects (17 out of 19 projects) failed to cover all the necessary amount of electricity by renewable energy-based
generation (government subsidies granted to these projects amounted to 1,932.66 million yen).
 In light of the existence of technical challenges in that the amount of electricity necessary for a renewable energy-basedhydrogen station has yet to be clearly ascertained, a fundamental review including consideration of whether or not
to continue the project is required.

Measurestaken bythe
Ministry As a result of a review by hearing opinions of experts and collecting technical information, the Ministry concluded that
it was difficult to appropriately ascertain the necessary amount of electricity and assume the optimal scale of
the renewable energy-based generation facilities based on the technical knowledge available at this point in time,and decided to abolish the Regional Renewable Energy-Based Hydrogen Station Introduction Project in FY2020.
 In order to contribute to the effective implementation of similar projects in the future, the Ministry decided to
conduct a technical validation to appropriately ascertain the necessary amount of electricity by such means asutilizing renewable energy-based hydrogen stations introduced under the project.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

12. Implementation status of projects using subsidies for promotion of energysaving investments (projects to support businesses working onrationalization of energy use) (Demand for measures)

Agency for Natural Resources and Energy
59.88 million yen (Improper amount)
3,424.04 million yen (Background amount)

Projects to support businesses working on rationalization of energy use● When private businesses as service providers replace existing equipment with energy-saving equipment, a part of the expense is subsidized.
● If service providers cannot achieve the planned value, the service providers should take measures and report the actual energy-saving amount for 1 year.
● If it is found difficult to achieve the planned amount, service providers may be required to return the subsidy.

Conceptual diagram of tolerance and correction

Correction content might substantially overlap with the content of tolerance(Audit result ②)

Planned amount

Energyconsumption
for 1 year
beforeimplementationof the projects

Energy consumption
for 1 year after
implementation of the
projects
Calculated basedon the performanceof the energysaving equipment

Energy consumption before
implementation of the projects

Correction Actual amountTolerance is added

Assuming
deviation
・・
from actual energy
consumption,
tolerance is added
for temperature
increase

Calculation of planned amount

Actual energy
consumption
for 1 year after
implementationof the projects

Assuming changes in
the circumstance related
to energy consumption,correction is made forthe same reasons ofadding the tolerance

Calculation of
actual amount

Energy management measures● When service providers conclude an energy management support service contract with 3 or more contract years with abusiness (energy management business that proposes additional improvements to obtain further energy saving basedon the energy-saving record) that implements energy-saving measures jointly with the service provider, and implement more
effective energy-saving measure (energy management measure), a higher upper limit is set for subsidy rate.

【Audit result ①】(3 projects)
The correction content was
inappropriate and the planned amount
was not achieved based on correct
calculation of the actual amount.
【Audit result ②】 (32 projects)
It was not possible to verify whether theplanned amount was achieved because
appropriateness of the correction
content cannot be verified.
【Audit result ③】 (33 projects)
Service providers did not make operation
improvement through energy
management measures.

Demand for measures (excerpt)
Agency for Natural Resources and Energy should instruct the subsidized entity to:✔ have the 3 service providers that made correction using inappropriate data for calculation of actual amount report the energy saving amount again, and to consider making them
return the subsidy for rationalization if the planned amount cannot be achieved.
✔ specify in application guidelines handling of tolerance and correction in order to avoid their substantial overlapping✔ clearly show in application guidelines the need for operation improvement adopting proposals for energy management measures made by energy management businesses
Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

12. Implementation status of projects using subsidies for promotion of energysaving investments (projects to support businesses working onrationalization of energy use) (Demand for measures)

Outlineof theProjects

Audit
Results

Agency for Natural Resources and Energy
59.88 million yen (Improper amount)
3,424.04 million yen (Background amount) The Agency for Natural Resources and Energy (ANRE) granted government subsidies to the Sustainable Open
Innovation Initiative (SII) as the subsidized entity to have SII provide private businesses as service providers withsubsidies for projects for rationalization of energy use (rationalization projects), in order to promote the energysaving in the industrial sector.
 Service providers describes the calculated planned amount of the energy saving which would be achieved in one
year after implementation of the rationalization project (planned amount) in the application form. For the calculationof the planned amount, a “tolerance” is added assuming deviation from actual energy consumption.
 Service providers calculates an actual energy consumption for one year after implementation of the projects(actual amount) and reports it to SII. In cases where circumstances related to energy consumption change during the
project, service providers make “correction” in the calculation of an actual amount so that it is calculated under thesame operating condition as when the planned amount was calculated.
 If the planned amount is not achieved, service providers should take improvement measures for operation andreport an actual energy saving amount for another one year.
 When service providers conclude an energy management support service contract with three or more contract years witha business (energy management business) that implements energy-saving measures jointly with the service
provider, and implement more effective energy-saving measure (energy management measure), a higher upper
limit is set for subsidy rate.
The Board audited 186 projects and found the followings:
 The correction content was inappropriate and the planned amount was not achieved based on correct calculationof the actual amount. (3 projects)
 It was not possible to verify whether the planned amount was achieved because appropriateness of the correction
content cannot be verified. (32 projects)
 Service providers did not make operation improvement through energy management measures. (33 projects)

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

12. Implementation status of projects using subsidies for promotion of energysaving investments (projects to support businesses working onrationalization of energy use) (Demand for measures)

Demandfor
MeasuresAgency for Natural Resources and Energy
59.88 million yen (Improper amount)
3,424.04 million yen (Background amount)

ANRE should instruct the subsidized entity to: have the 3 service providers that made correction using inappropriate data for calculation of actual amount report theenergy saving amount again, and to consider making them return the subsidy for rationalization if the planned
amount cannot be achieved.
 inform the service providers and energy management businesses about ensuring appropriate calculation of
the actual amount.
 specify in application guidelines handling of tolerance and correction in order to avoid their substantial
overlapping.
 clearly show in application guidelines the need for operation improvement adopting proposals for energy
management measures made by energy management businesses and to have service providers report thecontents of operation improvement.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

13. Use of a system to develop an earthquake disaster reconstruction
medical system to provide medical information support jointly withmultiple universities (Improprieties)- Outline of the project -Audit results

Reconstruction
On disasters
Kyushu[Medical care support]
University[Demand forecasting]Prescribed doseof drugs

Analysis

Local codes

Mapping works
Standardization code

Information obtained
through demand
forecasting

Saga University makes a request
to the participating universities
for mapping works. Saga
University and the participating
universities carry out the work.

Occurrence ofdisasters

Medical data ofnational
universities in
Kyushu areconcentrated to
Saga University

279.82 million yen (Improper amount)established in FY2013 and scheduled to start its operation in April 2015

has not beenAt
used
at all(Improprieties)
normaltimes
Mapping works are
required forforecasting(National University Corporation)
Saga University

Saga University

Nagasaki
University

Information obtained throughdemand forecasting project

Oita University
Kumamoto
University

Kagoshima
University

Miyazaki
University

Provide the Information
obtained through demand
forecasting to theparticipating universities
Provide support to ensure
effective distribution of
medicine to afflicted area

✔ 5 of the participating national universities excluding Kyushu University did not complete mapping works.

✔ Saga and Kyushu Universities completed mapping works but Saga University did not carry out demand forecasting due to failure to import
medical data to the earthquake disaster medical system.
✔ Saga University deemed that it was difficult to carry out the work necessary for operation in the future and gave up demand forecasting with theearthquake disaster medical system.
✔ The earthquake disaster medical system had not been used at all since its delivery with no prospect of use in the future, and therefore thiswas improper.

Cause
Saga University lacked the following awareness:✔ to need to formulate an implementation plan for concrete mapping works based on sufficient consensus building on
concrete implementation methods of the mapping works that Saga University and other universities need to carry out
respectively, and division of their roles, not sharing the recognition with the participating universities regarding the needfor demand forecasting sufficiently✔ to operate the established earthquake disaster reconstruction medical system appropriately
Copyright©2020 Board of Audit of Japan

参加
大学

佐賀
大学

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).

13. Use of a system to develop an earthquake disaster reconstruction
medical system to provide medical information support jointly withmultiple universities (Improprieties)(National University Corporation)
Saga University

279.82 million yen (Improper amount)

Outlineof theProject

 An earthquake disaster reconstruction medical system (earthquake disaster medical system) is a system that collects
medical information (medical data) on patients with chronic diseases held by Saga University and 6 National
University Corporations (participating universities) that have affiliated hospitals in Kyushu area, and medical data
are accumulated at Saga University, aiming to carry out the following medical supports:
・Saga University analyzes the accumulated data and implements a research project of forecasting a demand for
doses of drugs prescribed and tests conducted at medical consultation “at normal times.”・By providing information obtained through the demand forecasting project at normal times to the participating
universities, Saga University provides support to ensure that medicines are effectively distributed to afflicted
areas “at the time of disaster.” Saga University developed an earthquake disaster reconstruction medical system and carried out procurementof necessary devices such as a server on November 2013 (contract amount: 279.82 million yen).
 Since medical data are given a distinct code (local codes) by each medical institution, it is essential to match
local codes and an code created by Medical Information System Development Center, General Incorporated
Foundations (standardization code) to help information exchange among medical institutions (mapping works), in
order to import medical data to the earthquake disaster medical system and carry out demand forecasting.

Audit
Results

 Five of the participating national universities excluding Kyushu University did not complete mapping works.
 Saga and Kyushu Universities completed mapping works but Saga University did not carry out demand forecasting
due to a failure to import medical data to the earthquake disaster medical system.
 Saga University deemed that it was difficult to carry out works necessary for the operation of the earthquake disastermedical system in the future and gave up the demand forecasting by the system.
 The earthquake disaster medical system had not been used at all since its delivery with no prospect of its futureuse, and therefore this was improper.

Cause

Saga University lacked the following awareness: to need to formulate an implementation plan for concrete mapping works based on sufficient consensus
building on concrete implementation methods of the mapping works that Saga University and other universities
need to carry out respectively, and division of their roles, not sharing the recognition with the participating
universities regarding the need for demand forecasting sufficiently.
 to operate the established earthquake disaster medical system appropriately.

Copyright©2020 Board of Audit of Japan

This material is a simplified version and is not guaranteed to be correct,
see the FY2019 Audit Results (Japanese only).