II

Summary of Audit Results

1. Audit Results by Category and by Auditee
The total number of cases listed in the Audit Report for FY2019 was 248. Of these, the numberof cases which were found not appropriate (Improper/Unreasonable Matters) was 241 and theimproper amounts 1 totalled 29,721.93 million yen. (There were also background amounts 2
concerning the problem cases.) The following Table 1 shows the breakdown of the 248 cases
by category.
Table 1: Audit Findings by Category
Category

Number ofaudit cases

Improper amounts(Unit: million YEN)

• Improprieties (Note 1)

205

8,758.95• Presentation of Opinions and/or Demand for

14 (Note 7)

5,538.72

22 (Note 7)

15,424.26

Total of Improper/Unreasonable Matters

241

29,721.93• Special Report to the Diet and the Cabinet(Note 4)3• Special Report on Audit Requested by the Diet (Note 5)2• Report on Specific Matters (Note 6)

2

Grand total

248

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.

(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) 5 cases of “Presentation of Opinions and/or Demand for Measures” and “Measures
Taken”, in multiple situations, have both improper amounts and background amounts.

1

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.
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.

Table 2 shows the breakdown of 241 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)
Category

Improprieties

Presentation of Opinions
and/or Demand for Measures

Auditee

Measures Taken(Note 1)

Cases

Total

(Note 1)

(Note 1)

Amount Article (Note 2)/CasesAmountCases

AmountCases

Amount

36 1
○

64.81

1

25.83

15

331.47

Cabinet Office13

240.83

Reconstruction
Agency

1

16.16

1

16.16

6

454.11

6454.11

Ministry of Internal
Affairs andCommunications(Note 3) (Note 6)

Ministry of Foreign
Affairs

36 1○(Note 3)(Note 3)8.09
(503.24)1

5,760.00(Note 6)(Note 6)2

(Note 3)

5,768.09(503.24)(Note 6)

Ministry of Finance2346.071

291.34(3,828.61)

3

637.41(3,828.61)

Ministry of Education,
Culture, Sports,
Science andTechnology

19163.291(1,559.87)

20

163.29(1,559.87)

34○
Ministry of Health,Labour and Welfare

Ministry ofAgriculture, Forestry
and Fisheries

82

3,665.81(Note 4)(Note 6)

34 ・○
36 1
○

15

109.54(Note 4)

1

36 3
○

682.60(20,425.78)

111.91(14,061.48)(474.23)(Note 6)(Note 4)2

(208.04)(3,287.24)

86

4,348.41(20,425.78)(208.04)(3,287.24)

3293.80(8,286.84)

21515.25(14,061.48)(474.23)(8,286.84)(Note 6)

Ministry of Economy,
Trade and Industry

34 ・○
36 1
○
6

58.73

36 1
○

59.88
(3,424.04)(Note 6)

8

118.61(3,424.04)(18,780.31)

25

10,159.84(18,780.31)

Ministry of Land,
Infrastructure,
Transport and Tourism

20329.3636 1○

4,333.99

45,496.49

Category

Improprieties

Presentation of Opinions
and/or Demand for Measures

Auditee

Measures Taken(Note 1)

Cases

Amount Article (Note 2)/CasesAmountTotal(Note 1)

(Note 1)

Cases

AmountCases

AmountMinistry of theEnvironment

7

87.40

1

1,932.66

82,020.06

Ministry of Defense

2

11.00

3

846.875857.87

The Promotion and
Mutual Aid
Corporation forPrivate Schools of
Japan

1

1.81

1

1.81

Japan Pension Service

1

11.81

National Institute ofAdvanced Industrial
Science andTechnology(Note 4)(Note 4)(Note 4)(Note 4)

1

43.45

2

55.26

34 ・○
36 1
○

233.991

233.991453.31(Note 3)(Note 3)

34○

Japan agency of
Maritime Education
and Training for
Seafarers

1

Japan International
Cooperation Agency(JICA)
Japan Society for the
Promotion of Science(Note 3)

36 1
○

1

(Note 5)471.96

National Hospital
Organization

2

3.53

Japan Agency for
Marine-Earth Scienceand Technology

1

70.01

Japan Atomic Energy
Agency(Note 3)(Note 5)

2

Japan Organization of
Occupational Healthand Safety

Urban RenaissanceAgency453.312471.9636 1○(21,318.98)

1(21,318.98)

36 1○(11,056.06)

3

3.53(11,056.06)

1

70.01

(Note 6)(Note 6)2

150.51(120.21)2

150.51(120.21)

1

62.95

1

62.95

Category

Improprieties

Presentation of Opinions
and/or Demand for Measures

Auditee

Measures Taken(Note 1)

Cases

AmountJapan Community
Health careOrganization

Article (Note 1)/Cases36 1○

AmountTotal(Note 1)

Cases

Amount(3,194.62)(Note 1)

Cases

Amount1(3,194.62)

Japan Housing
Finance Agency

22

1,665.0722

1,665.07

National Cancer
Center1

110.22

1

110.22

Kyoto University

1

1,128.23

1

1,128.23

Saga University

1

279.82

1

279.82

1

110.50(Note 5)(Note 5)

Hokkaido Railway
Company1

110.50(Note 3)(Note 5) (Note 3), (Note 4)

Total

205

8,758.95

14

5,538.72

22

15,424.26(Note 4)(Note 5)241

29,721.93(Note 1) 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 2) The cases identified with ○34 refer to audit findings under Article 34 of the Board of Audit
Act, and the cases identified with ○36 refer to those under Article 36.
(Note 3) Although one case involves both the Ministry of Foreign Affairs and the Japan International
Cooperation Agency, the amount has been listed only in the column of the Ministry ofForeign Affairs. In addition, duplication has been eliminated from the total number of cases.
(Note 4) Although one case involves both the Ministry of Health, Labour and Welfare and the Japan
Pension Service, the amount has been listed only in the column of the Japan Pension Service.
In addition, duplication has been eliminated from the total number of cases.
(Note 5) Two cases involve both the Japan Society for the Promotion of Science and Kyoto University,and duplication has been eliminated from the total amount.
(Note 6) Concerning the categories “Presentation of Opinions and/or Demand for Measures” and“Measures Taken”, 5 cases in total have both improper amounts and background amounts.

2. Brief Description of Audit Cases
The following is a brief description of individual cases
A Improper/Unreasonable Matters by Ministry/Agency(1) Cabinet Office(Cabinet Office)Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Improper calculation of subsidized amounts:(a) Excessive payment of child and child-rearing support grants (the portion for the afterschool classes for children project)(b) Excessive payment of subsidies for maintaining and advancing local communities on
specific inhabited remote border islands(c) Excessive payment of regional revitalization promotion grants
b. Subsidized objective not achieved:
Simplified electronic dosimeters not meeting the specifications posed a risk of failure tomeasure spatial radiation dose ratec. Excessive billing of subsidized project cost:
Excessive billing of the cost of projects eligible for a State contribution towards benefits forchildren’s education and cared. Use for purpose other than subsidized objective:
The ambulance developed using the grant project for nuclear power plant emergency safetymeasures was used for unintended purposes.
e. Not eligible for a subsidy:
Part of the cost of projects that were implemented using grants for establishment of regional
revitalization bases was not eligible
f. Excessive estimate of the cost of works:
Excessive estimate of the cost of transportation charges of Prestressed Concrete girders
related to a bridge embankment
g. Excessive receipt of subsidy:
Subsidy pertaining to the amount of consumption tax after deduction for purchase tax was
not returned.
36 - Implementation of child care for sick children at nurseries established
Demand for Measures ○by using subsidy for development of company-led childcare services projectMeasures Taken - Estimate of costs for commissioned work for abandoned chemical weapon
disposal projects(2) Reconstruction Agency
Improprieties - Excessive billing of the cost of projects implemented with comprehensive support
grants for disaster victims(3) Ministry of Internal Affairs and Communications
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Part of the cost of projects that were implemented using grants for heightening regional

vitality (local economy vitalization/employment creation)b. Excessive payment of subsidies under the program to comprehensively support practical useof advanced telecommunication technologies
c. Part of the cost of projects implemented with subsidies for information and communication
technology utilization and application projects (General Account) was not eligible.
d. Part of the cost of projects implemented with subsidies for information and communication
technology utilization and application projects (Special Account for Reconstruction from theGreat East Japan Earthquake) was 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(4) Ministry of Foreign Affairs
Presentation of Opinions ○36 - The effects of official development assistance
Measures Taken - Implementation of International Solidarity projects(5) Ministry of FinanceImproprieties - Cases of excess and deficiency in tax collection
Improprieties - Use of national property land is permitted for persons without authority, which is
improper management.
Measures Taken - Special provisions for taxation on asset expropriation or purchase premised on
expropriation in public works(6) 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 cost of promoting partnership and cooperation
between schools, homes, and communities
b. Excessive payment of subsidies for the cost of support for students in rural areasc. Excessive payment of subsidies for facility development of certified center for earlychildhood education and cared. Excessive payment of subsidies for aid to operating expenses of private high schools (special
expenditure for promotion of education reform)e. Excessive payment of grants for improvement of school facilities and the environment
f. Improper design of wooden buildings
g. Excessive State contribution to the cost of compulsory education
Measures Taken - Concrete method for calculation of the amount of day-care subsidy and scope ofchildren eligible for the subsidy(7) 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 - Improper payment of benefits to compensate temporary absence from work under
workers' accident compensation insurance
Improprieties - Improper payment of career formation subsidy under employment insuranceImproprieties - Improper payment of subsidies for development of employment for specified job
seekers under employment insurance (subsidy for courses for specified persons withdifficulty in employment)
Improprieties - Improper payment of career enhancement subsidies under employment insurance
Improprieties - Improper payment of old-age employees’ pension benefits under employees’
pension insurance
Improprieties - Improper State contribution to medical expenses
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 State contribution to medical treatment benefits under national healthinsuranceb. Excessive State contribution to stabilization of national health insurance
c. Excessive payment of fiscal adjustment grants under the advanced elderly medical service
systemd. Excessive payment of fiscal adjustment grants under national health insurance
e. Excessive State contribution to the livelihood assistance subsidy
f. Excessive State contribution to the livelihood assistance subsidy (part pertaining to thecontributions to expenses for public assistance facility affairs)g. Excessive State contribution to the benefits for services and supports for people withdisabilities
h. Excessive State contribution to disability benefits for children with disabilities in living
support facilities
i. Excessive State contribution to the nursing care benefit
j. Calculation of the amount of national treasury benefits to specific health checkups and healthguidance of national health insurance
k. Excessive use of funds in projects implemented using funds created by extraordinary special
grants for the regeneration of community medicine
Improprieties - Improper State contribution to nursing care benefits for elderly persons undernursing care insurance
Improprieties - Improper State contribution to training benefits included in benefits for services
and supports
Improprieties - Improper State contribution to outpatient benefits for children with disabilities
Demand for Measures ○34 - Affairs regarding return of overpaid pension benefits
Demand for Measures ○34 ○36 - Calculation of the amount of State contribution to specified healthcheckup and health guidance of national health insurance
Measures Taken - Calculation of the amount of subsidies to the National Health Insurance
Organizations
Measures Taken - Allowances to persons completing vocational training(8) Ministry of Agriculture, Forestry and Fisheries
Improprieties - The purpose of the project is not achieved, as accurate grasping of the actual stateof agricultural water intake from the river is not possible through the system constructedunder the project to automate water intake measurement
Improprieties - Improper execution of and accounting for projects with subsidies or grants:

a.

Not eligible for a subsidy:(a) Part of the cost of projects that received grants through the grant project concerning
measures to strengthen agriculture and the food industry was not eligible.
(b) Part of the cost subsidized under the project for forest environment conservation anddevelopment is not eligible.
(c) Part of the cost of the projects that received grants through the grant program to facilitate
the sixth industrialization of rural areas was not eligible.
(d) Thinnings production implemented under the program to improve the productivity of
plywood, lumbering and laminated wood production and to promote switching ofproduct lines was not eligible.
(e) Part of the cost of the projects subsidized under the program of grants to enhance
livestock competitiveness was not eligible.
b. Improper design of works:(a) Improper design of headworks(b) Improper design of bed protection workc. Excessive billing of subsidized project cost:(a) Excessive billing of the cost of the program to improve the productivity of plywood,
lumbering and laminated wood production and to promote switching of product lines, as
the project cost includes the amount of consumption tax that is subject to purchase tax
credit(b) Excessive billing of the cost of projects under the program to improve the productivityof plywood, lumbering and laminated wood production and to promote switching ofproduct lines
d. Improper use of funds created by subsidies:
Excessive payment of subsidies for projects implemented using funds created with subsidies
for the cost of fisheries business stability measures (the portion for urgent measures for the
introduction of equipment to enhance competitiveness)e. Improper calculation of subsidized amounts:
Improper calculation of amounts of subsidies for implementation of the project for measures
to enhance systems for the production and supply of domestic agricultural products (program
to promote strengthening of the tea, medicinal crop and other local special crop production
systems)
f. Improper plans:
Improper plans of the grant program for development of measures to enhance the agriculture
and the food industry
36 - Implementation of tending felling
Presentation of Opinions ○Presentation of Opinions ○36 Demand for Measures ○36 - Formulation of individual facility plans
based on inspection for life prolongation of forest road facilities
Demand for Measures ○36 - Allocation of the calculated amount pertaining to the business fostering
assistance projectMeasures Taken - Implementation of replanting under the project to support fruit growing
Measures Taken - Implementation of cost effectiveness analysis of the subsidy program forcomprehensive measures to increase the earning capacity of livestock and dairy farming
Measures Taken - Program to pay subsidy directly to environmentally sound agriculture

(9) Ministry of Economy, Trade and Industry
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Not eligible for a subsidy:(a) Part of the cost of projects subsidized for disaster recovery of the SME cooperatives
joint-use facilities was not eligible for the subsidy.
(b) Part of the cost of projects subsidized under the program of grants for advancement ofoil supply structure was not eligible.
b. Improper work design and management:
Improper design and management of emergency power generators
c. Use for purpose other than subsidized objective:
Equipment purchased under the project implemented by using subsidies to support
innovative manufacturing, commerce and service development was used for purposes otherthan the subsidized objective.
d. Improper construction of works:
Improper execution relating to hot water piping of wood chip boiler and installation of watersupply tank for extinguishing fire34 ○36 - Implementation status of projects using subsidies for promotion of
Demand for Measures ○energy-saving investments (projects to support businesses working on rationalization ofenergy use)
Presentation of Opinions ○36 - Assumptions of large-scale earthquakes in the program for resilienceof oil supply infrastructure(10) Ministry of Land, Infrastructure, Transport and Tourism
Improprieties - Comparatively high contract price due to use of an interest rate higher than thebasic interest rate for calculation of installment payment charge when calculating theestimated cost of common use cable trench PFI
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Improper design of works:(a) Improper design relating to installation of light control console(b) Improper design of bridge bottom(c) Improper design of retaining walls(d) Improper choice of combination of strength and number of anchors when designingfoundation of water storage tank(e) Improper design and construction of equipment related to broadcast facilities(f) Improper design of rock fall protection works
b. Improper calculation of subsidized amounts:(a) Improper calculation of compensation concerning relocation of communication lines andwater pipes(b) Improper calculation of the cost of projects relating to cheaper rent on public housing(c) Excessive payment of grant due to improper calculation of cost of subsidized projects
relating to development of sludge treatment facilities(d) Excessive subsidy payment due to improper calculation of subsidized amounts(e) Relatively high contract price due to wrong design quantity of rooftop waterproofing
sheetsc. Improper use of funds created by subsidies:Excessive funds created due to improper calculation of the cost of projects relating tocheaper rent on public housing for disaster victims
36 - Early implementation of application for certification of cadastral maps
Demand for Measures ○created under the cadastral survey projectMeasures Taken - Estimate of the restoration material cost relating to restoration work of sanitary
sewer conduit
Measures Taken - Implementation of subsidy program for purchase of non-step buses
Measures Taken - Appropriate implementation of inspection of contracts for purchase of properties
based on accounting laws and ordinances
Measures Taken - Calculation of the estimated cost of statistics survey service contract(11) Ministry of the Environment
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Not eligible for a subsidy:
Cost incurred for development of facilities in subsidized projects for promoting
establishment of a sound material-cycle society was not eligible for the grant.
b. Improper use of funds created by subsidies:
Improper design of facilities in projects financed by funds for supporting introduction ofrenewable energy
Measures Taken - Implementation of the Regional Renewable Energy-Based Hydrogen Station
Introduction Project(12) Ministry of Defense
Improprieties - Relatively high contract price of civil engineering works for construction of new
barracks
Improprieties - Relatively high contract price of consignment of boiler maintenance management
Measures Taken - Parking area guidance service
Measures Taken - Removal of the information system procured based on a lease contract
Measures Taken - Camouflage net against ultraviolet rays

B Improper/Unreasonable Matters by Entity(1) The Promotion and Mutual Aid Corporation for Private Schools of Japan
Improprieties - Improper accounting of subsidies for private universities’ current expenses(2) Japan Pension Service
Improprieties - Fraud by officials
Demand for Measures ○34 - Affairs relating to return of overpaid pension benefits(3) National Institute of Advanced Industrial Science and Technology
Demand for Measures ○34 ○36 - Usage status of land held by the National Institute of Advanced
Industrial Science and Technology(4) Japan agency of Maritime Education and Training for Seafarers

Measures Taken - Land and buildings that are not used effectively(5) Japan International Cooperation Agency
Presentation of Opinions ○36 - The effects of official development assistance(6) Japan Society for the Promotion of Science
Improprieties - Improper accounting of Grants‐in‐aid for Scientific Research
Improprieties - Improper accounting of subsidies for strategic strengthening of cutting-edge
research and development (cutting-edge research infrastructure program)(7) Japan Organization of Occupational Health and Safety
Demand for Measures ○36 - Anti-inundation measures for private power generators at disaster basehospitals(8) National Hospital Organization
Improprieties - Fraud by officials
Demand for Measures ○36 - Anti-inundation measures for private power generators of disaster basehospitals(9) Japan Agency for Marine-Earth Science and Technology
Improprieties - Improper payment of contract price for production of drifting buoys with CO2
sensor(10) Urban Renaissance Agency
Measures Taken - Conclusion of sublease contract of high-price rental housing
Measures Taken - Consignment of housing complex management(11) Japan Atomic Energy Agency
Measures Taken - Decommissioning of nuclear power facilities(12) Japan Community Health care Organization
Demand for Measures ○36 - Anti-inundation measures for private power generators of disaster basehospitals(13) Japan Housing Finance Agency
Improprieties - Breach of restriction on lease conditions of rental housing loan(14) National Cancer Center
Improprieties - Improper contract procedure for consignment of laboratory animal rearing
management(15) Kyoto University
Improprieties - Financial management pertaining to installation of large cages for chimpanzees(16) Saga UniversityImproprieties - Use of a system to develop an earthquake disaster reconstruction medical system toprovide medical information support jointly with multiple universities(17) Hokkaido Railway Company
Measures Taken - Estimate of cost of service contract relating to snow clearing from crossing

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 subsidized projects for acceleration of rebirth of Fukushima- Strengthening of IT security measures of local governments by the central government- Operations and financial conditions of government-financed corporations in the context of low
interest rates(2) Special Report on audit requested by the Diet
The following reports were submitted to the Diet based on requests from the Diet:- State of initiatives ahead of the Tokyo Olympic and Paralympic Games- Child and child-rearing support measures including elimination of waiting list for children and childpoverty alleviation(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 financial base of some corporations that are exempt from application of special tax rate
for specified family companies in order to strengthen their financial base but whose financial base isdeemed to be above a certain level in comparison with specified family companies- Refund and interest on refund arising from withholding on dividends relating to shares of wholly
owned subsidiaries and associated corporations, as well as withholding income tax and refund affairs
at tax offices