II

Summary of Audit Results

1. Audit Results by Category and by Auditee
The total number of cases listed in the Audit Report for FY2022 was 344. Of these, the numberof cases which were found not appropriate (Improper/Unreasonable Matters) was 333 and theimproper amounts 1 totalled 58,022.14 million yen. (There were also background amounts 2
concerning the problem cases.) The following Table 1 shows the breakdown of the 344 cases
by category.
Table 1: Audit Findings by Category
Number ofaudit cases

Category

Improper amounts(Unit: million YEN)

• Improprieties (Note 1)285

9,763.75• Presentation of Opinions and/or Demand for

20 (Note 7)

30,960.72

28 (Note 7)

17,306.15

Total of Improper/Unreasonable Matters

333

58,022.14 (Note 8)• Special Report to the Diet and the Cabinet(Note 4)3• Special Report on Audit Requested by the Diet (Note 5)

4• Report on Specific Matters (Note 6)

4Grand total

344

Measures (Note 2)• Measures Taken (Note 3)(Note 1) Improprieties: Matters being found, as a result of audit, in violation of the law,
Cabinet Order, the approved budget, or being found improper.
(Note 2) Presentation of Opinions and/or Demand for Measures: Matters regarding which theBoard has presented its opinions or demanded measures to relevant ministers etc.
pursuant to the provisions of Article 34 and 36 of the Board of Audit Act.
(Note 3) Measures Taken: Matters for which the auditee took measures for improvement inresponse to the findings of the Board.
1(Note 4) Special Report to the Diet and the Cabinet: Matters reported to the Diet and the
Cabinet pursuant to the provision of Article 30-2 of the Board of Audit Act.
(Note 5) Special Report on audits requested by the Diet: Results of audit reported to the Diet
regarding matters audited pursuant to the provision of Article 30-3 of the Board ofAudit Act based on the request made under the provision of Article 105 of the Diet
Law.
(Note 6) Report on Specific Matters: A report on specific matters which the Board finds
necessary to report among audit activities of the Board.
(Note 7) 9 cases of “Presentation of Opinions and/or Demand for Measures” and “Measures
Taken”, in multiple situations, have both improper amounts and background amounts.
(Note 8) Some cases are counted both as “Improprieties” and “Presentation of Opinions and/or
Demand for Measures”. As such duplication is deducted from the total, adding each
improper amount does not correspond with the total.

Improper Amounts: Improper amounts represent any deficiency in the collection of taxes orsocial insurance premiums to be collected; overpayments for construction or purchases;
overpayment of subsidies; amount of credit managed improperly; amount of assets not utilized
effectively; and any amount of assets stated improperly in the statements of account and financial
statements. The total sum of improper amounts in the Audit Report is sometimes referred to as "thetotal amount of wasteful expenditure." While the total amount of them tend to be referred as “thetotal amount of wasteful expenses”, the Board of Audit of Japan does not use the term "wastefulexpenses" when explaining the Improper/Unreasonable matters, having in mind that they concern
various situations as set forth above.
2 Background Amounts: Background amounts represent overall amounts of payments orinvestments etc. regarding matters concerned. Background amounts are presented when improperamounts cannot be calculated for audit cases such as: 1) where the Board finds, as a result of audit,
any matters that it finds necessary to be improved with regard to laws and regulations, system oradministration; and 2) which the Board reports to draw public attention to project cases of nonrealization of investment effect due to problems in project progress caused by policy issues.
Besides, the background amounts are not totaled up since the basis for determining the backgroundamounts differ from case to case.
1

2

Table 2 shows the breakdown of 333 cases of“Improper/Unreasonable Matters”(Improprieties,
Presentation of Opinions and/or Demand for Measures and Measures Taken in Table 1）by auditee.
Table 2: Improper/Unreasonable Matters by Category and by Auditee(unit of monetary amount, million YEN)
Improprieties

Presentation of Opinions and/or
Demand for Measures

Cases

AmountArticle/Cases

12

59.32

20

298.49

Ministry of Foreign
Affairs1

13.02

Ministry of Finance1240.86

Ministry of Education,
Culture, Sports,
Science andTechnology

24174.59Category
AuditeeCabinet Office

Ministry of Internal
Affairs andCommunications(Note 1)

(Note 4)(Note 3)36 2○

(Note 3)36 2○

(Note 6)

36 1
○

34 ・○
36 1
○

34
○
Ministry of Health,Labour and Welfare

146

3,798.56(Note 6)2

(Note 6)

34 ・○
36 1
○
(Note 6)

36 2○

Ministry ofAgriculture, Forestry
and Fisheries

18

227.03

Ministry of Economy,
Trade and Industry

5

34.81

(Note 6)

36 3○

Measures Taken(Note2)(Note 2)

Amount Cases

14

14,647.76

1

134.1018.63(16.35)

1

9.08

2

1

258.69(Note 3)23

(Note 6)3

1

(Note 3)15,080.35

575.31

3

816.17

1,640.58

26

2,073.86

220.95(283.44)5,899.36(1,499.80)

3,534.93(2,821.08)(Note 4)(Note5)154

6,060.45(13.63)(12,016.64)(7,604.44)(283.44)(Note 6)

19,701.98(2,779.84)(1,721,224.61)(1,499.80)

1,772.30(7,604.44)
13,575.59 (Note 6)(2,779.84)
2(1,721,224.61)(Note 3)141.6840.73(16.35)(Note 6)(Note 6)

Amount3179.02(13.63)
98.11(12,016.64)(Note 2)

Cases

(Note 3)82.36

(Note 6)

3

Amount(Note 3)(Note 3)

Total

23

(Note 6)

63,569.74(2,821.08)

Improprieties

Presentation of Opinions and/or
Demand for Measures

Cases

AmountArticle/Cases

Ministry of Land,
Infrastructure,
Transport and Tourism

33

1,457.57

36 1○

Ministry of theEnvironment

11134.53

Ministry of Defense

2

41.74

Category
Auditee(Note 1)The Okinawa
Development FinanceCorporation
The Promotion and
Mutual Aid
Corporation forPrivate Schools of
Japan

3

34
○

Measures Taken(Note2)(Note 2)

Amount Cases(2,632.40)

1135.07

34 ・○
36 1
○

193.19Total(Note 6)5

3

Amount1,987.31(442.98)

600.06

8.92(Note 2)

Cases

Amount(Note 6)39

3,444.88(2,632.40)(442.98)11

134.536776.871

193.193

8.92

East Nippon
Expressway Company
Limited36 1○(60,288.39)

1

26.50

2

26.50
(60,288.39)

Central Nippon
Expressway Company
Limited36 1○(47,628.86)

1

23.40

2

23.40
(47,628.86)

West Nippon
Expressway Company
Limited36 1○(282,434.49)

1

61.20

2

61.20
(282,434.49)

Honshu-Shikoku
Bridge Expressway
Company Limited

36 1○(22,639.57)

1(22,639.57)

Japan Pension Service

1

57.00

National Center for
University Entrance
Examinations
Japan Agency of
Maritime Education
and Training for
Seafarers

1

65.98

4

2

927.91

3

984.91

1

70.05

1

70.05

1

65.98

Improprieties

Presentation of Opinions and/or
Demand for Measures

Cases

AmountArticle/Cases

New Energy andIndustrial Technology
Development
Organization (NEDO)

1

Informationtechnology Promotion
Agency, Japan

1

Category
Auditee(Note 1)

Measures Taken(Note2)

Total(Note 2)

Amount Cases(Note 2)

Cases

Amount

4.18

1

4.18

42.90

1

42.90

2

1,495.46

Organization for
Small & Medium
Enterprises andRegional Innovation

2

Amount1,495.46

Asahikawa Medial
University

1

277.031

277.03

Osaka University

1

2,801.85

12,801.85

Yamaguchi
University

1

Hanshin Expressway
Company Limited

1(Note 4)(Note 4)

4.99

1

19.99

1

19.99

1

99.95

1

5.30

(Note 3)(Note 4) (Note 5)

Japan Post Co., Ltd.

1

Japan Sewage Works
Agency

1

5.30

Total

285

9,763.75(Note 4)(Note 3)20

30,960.72

28

99.95

17,306.15

333

4.99

58,022.14

34 refer to audit findings under Article 34 of the Board of Audit(Note 1) The cases identified with ○Act, and the cases identified with ○36 refer to those under Article 36.

(Note 2) The amounts in parentheses are background amounts, which are not totaled since the basis
for determining the background amounts differs from case to case.
(Note 3) Although one case involves both the Cabinet Office and the Ministry of Internal Affairs andCommunications, the amount has been listed only in the column of the Ministry of Internal
Affairs and Communications. In addition, duplication has been eliminated from the total
5

number of cases.
(Note 4) Although one case involves both Ministry of Education, Culture, Sports, Science andTechnology and Yamaguchi University, duplication has been eliminated from the total
amounts.
(Note 5) Some cases are counted both as “Improprieties” and “Presentation of Opinions and/or
Demand for Measures” (related to the emergency comprehensive support grant for COVID19 (for medical care)(the portion pertaining to the facility development project for infection
testing institutions )(refer to 9 page)). As such duplications are deducted from the total, adding
each improper amount does not correspond with the total.
(Note 6) Concerning the categories “Presentation of Opinions and/or Demand for Measures” and“Measures Taken”, 9 cases in total have both improper amounts and background amounts.

6

2. Brief Description of Audit Cases
The following is a brief description of individual cases.
A Improper/Unreasonable Matters by Ministry or Agency(1) Cabinet Office(Cabinet Office)Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Excessive billing of cost for projects with subsidies or grants:(a) Excessive billing for the costs for a project for child education and childcare benefit
grants(b) Excessive billing for the costs for the project covered by the temporary special benefit
subsidies for child-rearing households (temporary special benefits to be provided tochild-rearing households (advance payments))
b. Not eligible for a subsidy or a grant:
Some of the costs for the project covered by the regional revitalization promotion grant were
not eligible.
c. Non-implementation of a part of projectNon-implementation of a part of the project covered by the regional revitalization promotion
grantd. Excessive design quantities of works
Incorrect calculation for the design quantity for waterproofing urethane coating resulted in
the contract price higher than the actual price.
Demand for Measures ○36 - Calculation of the amount of child education and childcare benefit grants
for certified centers for early childhood education and care(2) Ministry of Internal Affairs and Communications

Improprieties - Some of the costs for the project for the temporary grant for regional revitalization
for COVID-19 were not eligible.
Improprieties - Excessive payment of special allocation tax grant
Improprieties - Excessive payment of special allocation tax grant for post-disaster restoration due
to improper cost calculation when calculating tax grant for post-disaster restoration
Presentation of Opinions ○36 - Status of use of transmission line facilities installed in the Project on
Promoting Advanced Radio Environment Improvements
Measures Taken - Tax credits for special allocation tax grant for expenses required for
implementing the host town exchange initiative(3) Ministry of Foreign Affairs

Improprieties - Fraud by officials
Presentation of Opinions ○36 - Implementation status of grant assistance (Grant Assistance for
Grassroots Human Security Projects)
Measures Taken – Procurement of power generators to be installed in residences of staff ofdiplomatic missions abroad7

(4) Ministry of FinanceImproprieties - Cases of deficiency in tax collection
Measures Taken – Examination of tax returns regarding basic exemption for income tax filed byresidents who received the payment of retirement allowances
Measures Taken – Lease of national land for school facilities at lower rent(5) Ministry of Education, Culture, Sports, Science and Technology

Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Excessive payment of subsidies for the improvement of information equipment for publicschoolsb. Excessive State contribution to the cost of compulsory educationc. Excessive payment of subsidies for the university reform promotion (project to enhance
education using digital technologies)
d. Excessive payment of subsidies for the improvement of information equipment for National
Institute of Technology
e. Excessive payment of subsidies for improvement of private school facilities (the emergency
special project for promoting the reinforcement of disaster prevention and other functions)f. Improper design of air-conditioning equipment
g. Excessive payment of grants for improvement of school facilities and the environmenth. Excessive payment of the extraordinary special grant for responding to block fences and airconditioners
i. Excessive payment of subsidies for the project to facilitate utilization of cultural resources
Demand for Measures ○34 ○36 Presentation of Opinions ○36 - Implementation of the project todevelop public school information and communication network environment facilities
Measures Taken - Size of reserve funds based on management expense grants provided to National
University Corporations in relation to significant changes in household economy(6) Ministry of Health, Labour and Welfare

Improprieties - Cases of excess and deficiency in collection of labor insurance premiums
Improprieties - Deficiency in collected premiums of health insurance and employees’ pension
insurance
Improprieties - Under a contract agreement concerning the storage, management and distribution ofarticles procured for the purpose of preventing the spread of COVID-19, while the excessive
numbers of packets in which fabric masks were packed were recorded in contract by mistakeand excessive expense claims were made, checking was insufficient and subsidies were paid
excessively.
Improprieties - Improper payment of industrial employment stabilization grant-in-aid under
employment insurance
Improprieties - Improper payment of human resource development grant-in-aid under employment
insurance
Improprieties - Improper payment of career enhancement grant-in-aid under employment insurance
Improprieties - Improper payment of old-age employees’ pension benefits under employees’
pension insurance
Improprieties - Improper State contribution to medical expenses
8

Improprieties - Excessive payment of costs for medical consultation fees required for medical
benefits under workers' accident compensation insurance
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Excessive payment of subsidies for securing the outpatient acceptance of fever clinics in the flu
season (project to support medical institutions participating in the project to secure structures forcare and examinations for outpatients with fever in preparation for the flu season)b. Excessive payment of the emergency comprehensive support grant for COVID-19 (for medicalcare) (the portion for a prevention of COVID-19 spread project)c. Excessive payment of the emergency comprehensive support grant for COVID-19 (for medicalcare) (the portion pertaining to the facility development project for medical institutions
hospitalizing COVID-19 patients)
d. Excessive payment of the emergency comprehensive support grant for COVID-19 (for medicalcare) (the portion pertaining to the outpatient facility development project for returnees & people
having contact with COVID-19 patients)
e. Excessive payment of the emergency comprehensive support grant for COVID-19 (for medicalcare) (the portion pertaining to the facility development project for infection testing institutions)f. Excessive payment of the emergency comprehensive support grant for COVID-19 (for medicalcare) (the portion pertaining to medical team (incl. DMAT/DPAT) dispatch project)g. Excessive payment of the emergency comprehensive support grant for COVID-19 (for medicalcare) (the portion pertaining to the COVID-19 intensive medical institution facility development
project)
h. Excessive payment of the emergency comprehensive support grant for COVID-19 (for medicalcare) (the portion pertaining to the emergency, perinatal & pediatric care system securing project
for acceptance of suspected COVID-19 patients)
i. Unnecessary payment of subsidies for the project to promote medical care provision systems (theportion pertaining to the project to offer daytime support)
j. Excessive payment of State contribution to medical treatment benefits under national healthinsurance
k. Excessive payment of fiscal adjustment grants under the advanced elderly medical service
systeml. Excessive payment of fiscal adjustment grants under national health insurance
m. Excessive payment of subsidies for the project to take disease prevention measures (the portion
pertaining to the project to strengthen functions of core hospitals for collaborative cancer
treatment)
n. Excessive State contribution to specified health checkups and health guidance under national
health insuranceo. Excessive payment of grant for the development of childcare centers
p. Excessive payment of national subsidies for the restoration of social welfare facilities damaged
by disasters
q. Excessive State contribution to the livelihood assistance subsidy
r. Excessive State contribution to disability benefits for children with disabilities in living support
facilities
s. Excessive State contribution to medical expenses of people with disabilities
t. Excessive State contribution to the nursing care benefit
9

u. Excessive payment of fiscal adjustment grants under nursing care insurance
v. Excessive payment of comprehensive grant to support disaster victims
Improprieties - Improper collection of expenses required for paying labor insurance benefits
Improprieties - Improper State contribution to nursing care benefits for elderly persons
Improprieties - Improper State contribution to training benefits included in benefits for services andsupports
Improprieties - Improper State contribution to outpatient benefits for children with disabilities
Demand for Measures ○34 - Calculation of settled amount of refunds in calculation of the State
contribution to the livelihood assistance
Demand for Measures ○34 - Payment of introduction support grant for promoting thecomputerization of procedures for claiming medical expenses regarding workers' accidents
Demand for Measures ○34 Presentation of Opinions ○36 - Calculation of the amount to be paid asState contribution for specified health checkups conducted by municipalities as an insurer
under national health insurance program and the utilization of medical information
Presentation of Opinions ○36 - Status of use of next generation sequencers installed using the
emergency comprehensive support grant for COVID-19 (for medical care) (the portion
pertaining to the facility development project for infection testing institutions)
Presentation of Opinions ○36 - Effect of subsidies for health services for the elderly conducted by
the Associations of Medical Care Services for Older Senior Citizens and utilization of
medical information
Measures Taken - Implementation status of projects covered by the subsidies for the restoration ofsocial welfare corporations damaged by disasters
Measures Taken - Implementation of the project to install negative pressure devices in nursing
homes
Measures Taken - Payment of rewards to labor insurance administrative affairs associations(7) Ministry of Agriculture, Forestry and Fisheries

Improprieties - Violation of accounting laws and regulations of the contract on procurement ofdomestic pork to be served at the Tokyo Olympic and Paralympic Games athletes' village
Improprieties - With regard to a disaster-related project for forest facilities, as the design based onan estimated work volume was not properly altered in accordance with the actual volume,the contract price was higher than the actual price.
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Not eligible for a subsidy or a grant:(a) The business continuity support project was not eligible as another government grant
has already been received by the beneficiary for other projects.
(b) Checking of farm bridges conducted as a seismic resistance inspection in the rural area
disaster prevention and mitigation project was not eligible.
(c) Some people were granted the investment fund for next-generation agricultural humanresources but did not start working as farmers and were not eligible.
(d) Some of the costs for the project covered by the grant for agricultural production
measures after the Great East Japan Earthquake were not eligible.
b. Excessive billing of cost for projects with subsidies or grants:(a) Excessive billing for the costs for the project covered by the subsidies for supporting10

expanded utilization of flowers in public facilities(b) Excessive billing for the costs for a project that received a grant through a grant projectfor developing market scale expansion measures toward the sixth industrializationc. Improper design of works:
Improper design of bed protection worke. Excessive estimate of the cost of works:
Excessive estimate of the cost of the revetment work
f. Excessive receipt of subsidies
Subsidies for the amount of consumption tax after purchase tax credit were not returned.
36 Demand for Measures ○36 – Implementation of the direct payment
Presentation of Opinions ○grants on utilization of rice paddy fields
Demand for Measures ○36 – Maintenance of guard fences installed in the project for forest
environment preservation and improvement
Demand for Measures ○36 – Measures against flood for agricultural water facilities where
emergency power generation systems are installed
Measures Taken – Implementation of the project by using funds created with subsidies for the costof strengthening dairy and livestock profitability (project to introduce machines)
Measures Taken – Estimate of cost for transporting personnel in a commission contract on crop
surveys(8) Ministry of Economy, Trade and Industry

Improprieties – Improper execution of and accounting for projects with subsidies or grants:
a. Excessive payment of subsidies:(a) Excessive payment of subsidies for the restoration cost for common facilities of SME
Cooperatives damaged by disasters, due to inappropriate calculation of the upper limitof national subsidies(b) Excessive payment of subsidies for the commissioned work conducted by the use of thesubsidies for the support project to promote the introduction of renewable energy inFukushima Prefecture due to the failure to alter the amount of commission fees despite
the altered content of the commissioned workb. Improper use of funds created by subsidies:
In the project using a fund created with the subsidies for the project to support self-help ofdisaster-affected businesses, purchased facilities are used for other purposes, and some of
the costs for the project covered by the subsidies were not eligible.
c. Use for purpose other than subsidized objective:
Facilities purchased in the project through the receipt of support subsidies for the
improvement of management capabilities in the manufacturing, commercial and service
industries were used for other purposes.
d. Excessive billing of cost for projects with subsidies or grants:
Excessive billing for the costs for the project covered by the subsidies for management
support for SMEs (project to support the strategic enhancement of fundamental technology)
Measures Taken – Requirements for the exclusion from the post adjustment of the granted amountin the project to promote the creation of global demand for content
11(9) Ministry of Land, Infrastructure, Transport and Tourism

Improprieties – Inappropriate separate accounting for the decrease of property value and disposal
credit in public indemnity
Improprieties – Improper execution of and accounting for projects with subsidies or grants:
a. Improper design of works:(a) Improper design of foot protection works(b) Improper design of retaining walls(c) Improper design of catch basins(d) Improper design of the bearing portion and abutment of a bridge(e) Improper design of conduits(f) Improper design pertaining to the decision of a site to transport soil arising fromconstruction work(g) Excessive cost of works as a result of improper design of floor slab reinforcement work(h) Improper design of drainage facilities
b. Not eligible for a subsidy or a grant:(a) Some of the costs for the project covered by the subsidies for promoting the revitalizationof and adding high value to existing sightseeing spots were not eligible.
(b) Portion of the grant paid by the government for the project for anti-erosion work should
not have been received.
c. Improper procedures for the disposal of property acquired through a project with subsidies
Improper procedures for the disposal of the site for a city planning roadd. Improper calculation of subsidized amounts:
Improper calculation of the cost of projects relating to cheaper rent on public housing
Improprieties - Fraud by officials
Demand for Measures ○36 - Securing of the quake resistance of communications towers andcommunications stations necessary for maintaining functions of multiplex wirelessnetworks
Measures Taken - Implementation status of measures to prevent deterioration of sewerage systemfacilities
Measures Taken - Registration of departure and arrival sites and no-fly zones for air ambulances
under the system to share information on flights of unmanned planes
Measures Taken - Design of floor slab waterproofing work in bridge construction
Measures Taken - Statements of information on underpasses in water damage hazard maps
Measures Taken - Estimate of a target price for a contract for dispatching personnel who engage in
air traffic controller training as instructors(10) Ministry of the Environment

Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Not eligible for a subsidy or a grant:
Cost incurred for development of facilities in projects with grants for promoting
establishment of a sound material-cycle society was not eligible.
b. Excessive payment of a subsidy or a grant:(a) Excessive payment of a grant for the project for promoting the establishment of a soundmaterial-cycle society as a result of inappropriate calculation of site expenses
12

c.

d.

e.

(b) Excessive payment of a grant for the project to curb CO2 emissions (project to promote
introduction of advanced facilities) due to the failure to deduct the proceeds from thesale of iron scraps from the project cost
Unauthorized disposal of property acquired through a project with subsidies
Unauthorized disposal of facilities developed in the project covered by a subsidy for the
project to curb CO2 emissions
Improper design of works
The size of the photovoltaic installation was unreasonable and inappropriate and wasexcessive.
Excessive estimate of the cost of works:
Excessive estimate of the cost of installing heat pumps in the project covered by a subsidy
for the project to curb CO2 emissions(11) Ministry of Defense

Improprieties - As a result of incorrect calculation for accommodation expenses upon conducting
repair work on housing facilities, the contract price was higher than the actual price.
Improprieties - Fraud by officials
Demand for Measures ○34 - Settlement pertaining to the provision of services based on the
Acquisition and Cross-Servicing Agreement (ACSA)
Measures Taken - Estimate of a target price for security and labor expenses for construction work
Measures Taken - Contract agreement concerning the modification of Type 94 minelayers
Measures Taken - Execution of PBL contracts on the supply of components for minesweeping
helicopters and cargo helicopters(1. Cabinet Office (Cabinet Office), 2. Ministry of Internal Affairs and Communications)
Demand for Measures ○36 - Implementation of the project to distribute goods with the temporary
grant for regional revitalization for COVID-19
B

Improper/Unreasonable Matters by Entity(1) The Okinawa Development Finance Corporation

Demand for Measures○
34 Presentation of Opinions ○36 - Ascertaining of the situation after providing
loans for covered housing pertaining to personal home loans in the project to lend housing
funds(2) The Promotion and Mutual Aid Corporation for Private Schools of Japan
Improprieties - Improper accounting of subsidies for private universities’ current expenses(3) East Nippon Expressway Company Limited, (4) Central Nippon Expressway Company Limited, (5)West Nippon Expressway Company Limited, (6) Honshu-Shikoku Bridge Expressway Company Limited

Presentation of Opinions ○36 - Construction methods for reinforcing bridge piers of expressways((3) East Nippon Expressway Company Limited, (4) Central Nippon Expressway Company Limited, (5)West Nippon Expressway Company Limited)
Measures Taken - Frequency of non-destructive testing for precast concrete floor slabs

13

(7) Japan Pension Service

Improprieties - When estimating a target price for a commission contract on security services, perhour labor cost for security guards was calculated incorrectly and the number of hours per
day for deploying security guards on weekdays was set excessively, and as a result, thecontract price was higher than the actual price.
Measures Taken - Estimate of a target price for a contract agreement concerning affairs ofreceiving national pension premiums
Measures Taken - Information security measures for statistics management devices (servers) orother equipment used at call centers of the Japan Pension Service(8) National Center for University Entrance Examinations

Measures Taken - Procurement of exam question booklets and listening test equipment for theunified university entrance exam
(9) Japan Agency of Maritime Education and Training for Seafarers

Improprieties - Upon executing a contract for separating terminals used at the Agency from theinternet as information security enhancement measures, the Agency failed to perform
required duties appropriately on a timely basis, and as a result, part of the equipment rented
for building a separation system remained unused and additional expenses occurred.
(10) New Energy and Industrial Technology Development Organization (NEDO)

Improprieties - The Organization failed to manage machines and devices that subcontractors
purchased or manufactured in commissioned projects as its acquired property, and as aresult, suffered a shortage in the proceeds from the sale of its own assets.
(11) Information-technology Promotion Agency, Japan

Improprieties - Upon payments to the treasury of unnecessary property related to the government's
contributions in the account for capital contributions to regional projects, the Agency filed
an application that included the amount of dividends from profit and loss transactions, and adecrease of the Agency's capital of the same amount was determined and the relevant notice
was issued by the competent Minister, and as a result, it was inappropriate that the amountof capital was understated at the same amount in the Agency's financial statements.
(12) Organization for Small & Medium Enterprises and Regional Innovation, Japan

Measures Taken - Retention of funds for loans in the project to support development of facilities
and equipment of SMEs affected by the Kumamoto Earthquake
Measures Taken - Retention of project expenses granted as funds for subsidies for sustaining
small businesses(13) Asahikawa Medial University, (14) Osaka University

Improprieties - Inappropriate indications in financial statements due to the misunderstanding of theuseful life for tangible fixed assets to be applied upon their depreciation(15) Yamaguchi University

14

Improprieties - Under a contract on the development of students' health checkup support and data
management system, the provision of services was not completed due to the failure toappropriately provide information to the contractor as defined in the specifications, but the
University had the contractor submit a delivery slip and paid the contract amount in full inviolation of its accounting rules, while pretending that the provision of services wascompleted.
(16) Hanshin Expressway Company Limited

Improprieties - In a commission contract on seismic reinforcement and design work, the applied
standards for the judgment on the necessity of seismic reinforcement work for bridge piers
and the design based on the judgment results were not appropriate, and as a result, theoutcome failed to achieve the original purpose, as it became necessary to conduct the work
again.
(17) Japan Post Co., Ltd.

Measures Taken - Payment of commission fees for the service to sort out packages by delivery areathat is contingent to a commission contract on the collections and deliveries of packages(18) Japan Sewage Works Agency

Improprieties - Upon conducting seismic reinforcement work for an aqueduct bridge, the design ofthe bridge fall prevention system was inappropriate and the safety required in the event ofan earthquake was not secured for the box culverts, and the purpose of the work was notachieved.
C Special Report to the Diet and the Cabinet, and Special Report on audit requested by theDiet, etc.
(1) Special Report to the Diet and the Cabinet

The following reports were submitted to the Diet and the Cabinet prior to the submission of the
Audit Report pursuant to the provision of Article 30-2:- Implementation status of the project to secure sickbeds for COVID-19 patients- Implementation status of the project for the reconstruction from the Great East Japan Earthquake- Implementation status of the COVID-19 vaccination project(2) Special Report on audit requested by the Diet

The following reports were submitted to the Diet based on requests from the Diet:- Status of initiatives toward the Tokyo Olympic and Paralympic Games- Status of bidding, closing of bids, contract amounts for three projects under the Act on Special
Measures Concerning the Handling of Environmental Pollution by Radioactive Materials- Implementation status of the 3-year emergency measures for preventing and mitigating disasters andbuilding national resilience- Status of use of the reserve funds

15(3) Report on Specific Matters

The Board conducted audits on the following matters which were found necessary to be included in
the Audit Report:- Status of filing of tax returns for sustainability subsidies granted to sole proprietorships- Initiatives for securing a stable supply of food
- Implementation status of the project for measures to mitigate drastic changes in fuel oil prices- Status of loan claims pertaining to COVID-19 special loans to SMEs provided by the Japan FinanceCorporation and other financial institutions

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