II

Summary of Audit Results

1. Audit Results by Category and by Auditee
The total number of cases listed in the Audit Report for FY2020 was 210. Of these, the numberof cases which were found not appropriate (Improper/Unreasonable Matters) was 192
and the improper amounts 1 totalled 210,872.31 million yen. (There were also backgroundamounts 2 concerning the problem cases.) The following Table 1 shows the breakdown of the
210 cases by category.
Table 1: Audit Findings by Category
Number ofaudit cases

Category

Improper amounts(Unit: million YEN)

• Improprieties (Note 1)

157

6,633.01• Presentation of Opinions and/or Demand for

15 (Note 7)

20,488.73

20 (Note 7)

183,750.57

Total of Improper/Unreasonable Matters

192

210,872.31• Special Report to the Diet and the Cabinet(Note 4)2• Special Report on Audit Requested by the Diet (Note 5)5• Report on Specific Matters (Note 6)

11

Grand total

210

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

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.
1

2

Table 2 shows the breakdown of 192 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

Auditee

Presentation of Opinions
and/or Demand for Measures(Note 1)

Cases

Amount Article (Note 2)/Cases(Note 3) (Note 4)

Cabinet Office

3

29.75

34
○

Amount136.61(65.67)

36 1
○

35.78

Ministry of Internal
Affairs andCommunications

8

199.83

Ministry of Finance1

154.92

Ministry of Education,
Culture, Sports,
Science andTechnology

19

182.12

36 1○(Note 3) (Note 4)

54

1,971.12

34
○

3

34 ・○
36 1
○

(Note 4)

Ministry ofAgriculture, Forestry
and Fisheries

15

1,100.78(920.97)(Note 1)

Cases

3,360.98(2,696.72)

36 4○

15,754.21

Ministry of Economy,
Trade and Industry

1

3.51

34 ・○
36 1
○

154.87

Ministry of Land,
Infrastructure,
Transport and Tourism

25

209.2536 1○

860.48Amount(Note 3)(Note 4)(Note 3)6

202.14(65.67)

1(21,336.32)

1(21,336.32)

1

350.479550.301

160,197.76

3

160,352.68(920.97)1(4,492.43)

20

182.12(4,492.43)(Note 3)1

20.87

(Note 4)59

(380.88)

34 ・○
36 1
○

3

Amount(Note 3)

72.03
(50,681.32)

Total(Note 1)

Cases

(Note 3)

2

Cabinet Office(National Police
Agency)Ministry of Health,Labour and Welfare

Measures Taken(Note 4)

42,554.21(1,113.52)(3,309.71)

1

512.54(Note 4)1

143.34(2,653.59)(Note 4)(Note3)

2,064.02(50, 681.32)(380.88)24

22,770.18(2,696.72)(1,113.52)(3,309.71)

3670.92(Note 4)27

1,213.07(2,653.59)

Category

Improprieties

Auditee

Presentation of Opinions
and/or Demand for Measures(Note 1)

Cases

Amount Article (Note 2)/Cases

Ministry of theEnvironment

8365.49

Ministry of Defense

3

499.37

Amount3(Note 4)537.02(2,834.37)

14.85

620.74

Japan Railway
Construction,
Transport andTechnology Agency(Note 1)

Cases

Amount8

365.49(Note 4)6(Note 4)

1

2

Amount113.77(65.72)

New Energy andIndustrial Technology
Development
Organization

Total(Note 1)

Cases

(Note 4)

34 ・○
36 1
○

Japan Pension Service

Japan Sport Council

Measures Taken

1,036.39(2,834.37)

1

113.77(65.72)

1

14.85

2

620.74

1

83.30

1

83.30

Japan Housing
Finance Agency

17

1,290.79

17,400.00

18

8,690.79

Nippon Hoso Kyokai(NHK:Japan
Broadcasting
Corporation)

1

5.29

1

207.772

213.06

Nippon Telegraph andTelephone East
Corporation

1

1,002.05

1

1,002.05

Nippon Telegraph andTelephone West
Corporation

1

10,726.39

1

10,726.39

20

183,750.57

Total

157

6,633.01(Note 3)15

420,488.73(Note 3)

192

210,872.31

(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 Cabinet Office and the Ministry of Health, Labour andWelfare, the amount has been listed only in the column of the Cabinet Office. In addition,
duplication has been eliminated from the total number of cases.
(Note 4) Concerning the categories “Presentation of Opinions and/or Demand for Measures” and“Measures Taken”, 7 cases in total have both improper amounts and background amounts.

5

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 thecommunity child care support centers project)(b) Excessive payment of child and child-rearing support grants (the portion for the afterschool classes for children project)b. Improper design and construction of works:
Improper design and construction of hot and chilled water generators and other machines,
which were aided by the regional revitalization base development grant
34 - Calculation of the amount of the subsidies for the operation cost of
Demand for Measures ○company-led childcare projects
Demand for Measures ○36 - Calculation of the grant for projects for developing Off−Site
Emergency Managing Control Centers, out of grant for emergency safety measures fornuclear power generation facilities(National Police Agency)
Measures Taken - Measures to prevent water intrusion into police facilities(2) Ministry of Internal Affairs and Communications
Improprieties - The purpose of the subsidies was not achieved, because seismic measures were nottaken in the existing storage racks for installing parent machines of wireless access devices
purchased with the aid of the public wireless LAN environment development support
project.
Improprieties - Excessive payment of special allocation tax grantMeasures Taken - Reduction adjustment for nuclear power-related special grant tax(3) Ministry of FinanceImproprieties - Cases of deficiency in tax collection
Demand for Measures ○36 - Establishment of audit systems for recording refunds as revenue as aresult of applying the special bankruptcy prevention mutual aid for income tax return
Measures Taken – Effective use of gold bullion possessed in the reserve fund for the collection ofcoinage(4) 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 facility development of certified center for earlychildhood education and careb. Excessive payment of subsidies for improvement of private school facilities (the emergency
6

special project for promoting the reinforcement of disaster prevention functions and the
project for promoting the use of ICT)c. Excessive payment of grants for improvement of school facilities and the environmentd. Excessive payment of the extraordinary special grant for responding to block fences and airconditioners
e. Excessive payment of the grant for projects for developing cultural-property multilingualcommentary projects
f. Excessive State contribution to the cost of compulsory education
Measures Taken - Accounting processes relating to educational expenses for Japanese Government
Scholarships in national universities(5) 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 - Excessive payment of consignment expenses for the project for supporting
establishment in the agriculture and forestry industry
Improprieties - Excessive payment of consignment expenses for the nation-wide project for
supporting employment of women
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 payment of fiscal adjustment grants under national health insurance
c. Excessive State contribution to the livelihood assistance subsidy
d. Excessive State contribution to the benefits for services and supports for people withdisabilities
e. Excessive State contribution to disability benefits for children with disabilities in living
support facilities
f. Excessive State contribution to the nursing care benefit
g. Excessive payment of fiscal adjustment grants under nursing care insurance
h. Excessive payment of the subsidy for projects for workers' welfare
Improprieties - Improper State contribution to nursing care benefits for elderly persons
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 - Grant amounts of insurance foundation stability payment for national
health insurance
Demand for Measures ○34 - Calculation of subsidies for disabled children who make regular visits
to care facilities when care facilities for disabled children are over-capacity7Demand for Measures ○34 ○36 - Development and maintenance of COVID-19 Contact-Confirming
Application (COCOA), under the contract related to the development and maintenance of
the “Health Center Real-time Information-sharing System on COVID-19” (HER-SYS)
Measures Taken - Calculation of consignment expenses for the projects for training unemployedpeople for reemployment(6) Ministry of Agriculture, Forestry and Fisheries
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Not eligible for a subsidy:(a) Some people were granted the investment fund for next-generation agricultural humanresources but did not start working as farmers and were not eligible for the grant.
(b) 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.
(c) Part of the cost of the projects that received subsidies for expenses of projects forpromoting forestry, fishery and food exports was not eligible for the subsidies.
(d) Forest thinning implemented as projects for forest environment conservation andpreparation was not eligible for the subsidy.
b. Improper design of works:(a) Improper design of bed protection work(b) Improper design of guardrails(c) Improper design of office buildingsc. Improper use of funds created by subsidies:(a) Part of the expenses for projects implemented using funds created with subsidies for thecost of strengthening dairy and livestock profitability was not eligible for the subsidy.
(b) Excessive payment of subsidies for projects implemented using funds created withsubsidies for the cost of fisheries business stability measures (the portion for urgent
measures for the introduction of equipment to enhance competitiveness)d. Subsidized objective not achieved:
A shared warehouse for storing rice, which was established using the grant project forstrengthening agriculture/food industry, did not integrate functions of existing warehouses
affected by the disaster, and distribution costs were significantly higher than before theproject, resulting in a failure to achieve the purpose of the subsidy.
e. Improper calculation of subsidized amounts:
Improper calculation of amounts of subsidies for implementation of the project for
management support measures in specified regions
34 ○36 - Implementation of the comprehensive support grant project for
Demand for Measures ○building strong agriculture and farmers (support for core facilities in producing districts)
Presentation of Opinions ○36 Demand for Measures ○36 - Implementation of the project forestablishing an agricultural information disclosure system
Demand for Measures ○36 - Estimation of expenses related to transporting logs by truck
Demand for Measures ○36 - Status of farmland consolidation by the cultivation condition
improvement project
Demand for Measures ○36 - Calculation of unit prices of mesh-check cargo-handling expenses inconsignment contracts for operations such as sales of government-owned rice
Measures Taken - Highway charges for government-owned cars
8

Measures Taken - Grant project for direct payment to farmers in hilly and mountainous areas
Measures Taken - Setting of a fixed unit price for projects for producing timber from forest
thinning
Measures Taken - Implementation of program for urgent measures for the introduction ofequipment to enhance competitiveness(7) Ministry of Economy, Trade and Industry
Improprieties - Improper design of fire hydrant plumbing that was prepared using the grant forareas that have power generation facilities
Demand for Measures ○34 ○36 Presentation of Opinions ○36 - Implementation of the project for
ensuring stable supply of petroleum products, and operation of a system for collecting
information in times of disaster
Measures Taken - Method of managing funds for overseas Supply Chain (SC) contributions(8) Ministry of Land, Infrastructure, Transport and Tourism
Improprieties - Because measures were not taken to protect obligations of burden changes, theobligations were canceled by the statute of limitations.
Improprieties - As a result of incorrect calculation for design and amount for demolition of
government buildings, pavement and other work, contract prices were higher than actual
prices.
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 retaining walls(d) Improper design of fences around airports(e) Improper design of guardrails(f) Improper design of electrical distribution panels installed at designated shelters(g) Improper design of rock fall protection works
b. Improper calculation of subsidized amounts:(a) Improper calculation of compensation costs for relocation of telecommunication linesand gas pipes(b) Excessive subsidy payment due to improper calculation of subsidized amounts
c. Improper design and construction of works:(a) Improper design and construction of receivers, controllers(b) Improper design and construction of dam management equipment
d. Improper construction of works:
Improper construction for installing power center panels
e. Not eligible for a subsidy:
Portion of grant paid by the government for projects for landslide prevention work was not
eligible for the grant.
36 - Methods for storing portable power supply equipment kept as backup
Demand for Measures ○power supply equipment for aviation security facilities
Measures Taken - Maintenance of pieces of mechanical equipment for river management facilities9(9) Ministry of the Environment
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Not eligible for a subsidy:(a) 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) Part of the project expenses covered by the subsidy for special emergency business
expenses for reducing radiation quantity was not eligible for the subsidy.
b. Improper use of funds created by subsidies:
Improper design of facilities in projects financed by funds for supporting introduction ofrenewable energy(10) Ministry of Defense
Improprieties - Operation of new TACAN and other devices could not be started, and the expected
goals were not achieved.
Improprieties - Personal portable life-saving radios used by crew on T-4 exercise aircraft were notused, and the purpose of procurement was not achieved.
Improprieties - Fraud by officials
Measures Taken - Estimation of increased expenses associated with suspension of work
Measures Taken - Acceptance inspection for sonobuoys for overseas training
Measures Taken - Selection when implementing early purchases of special lease accommodations(1. Cabinet Office (Cabinet Office), 5. Ministry of Health, Labour and Welfare)
Demand for Measures ○34 - Status of the calculation of the grant to support children and childcare
relating to the project for sound rearing of children after school
B Improper/Unreasonable Matters by Entity(1) Japan Pension Service
Demand for Measures ○34 ○36 - Procurement of portable terminals(2) New Energy and Industrial Technology Development Organization
Measures Taken - Calculation of transfer prices related to paid transfer of R&D assets acquired
through consignment projects(3) Japan Sport Council
Improprieties - Contract processes were improper, because lease contract was concluded that did
not meet specifications stated in the public notice.
Improprieties - As a result of improper calculation of the amount equivalent to consumption tax,compensation costs for relocation were excessive.
(4) Japan Railway Construction, Transport and Technology Agency
Measures Taken - Design of muddy water treatment in tunnel construction(5) Japan Housing Finance Agency
Improprieties - Breach of restriction on lease conditions of rental housing loan
Measures Taken - Scale of the interest rate fluctuation preparation fund, whose source is10

government investment(6) Nippon Hoso Kyokai (NHK:Japan Broadcasting Corporation)
Improprieties - Fraud by officials
Measures Taken - Procurement of photocopiers(7) Nippon Telegraph and Telephone East Corporation, (8) Nippon Telegraph and Telephone West
Corporation
Measures Taken - Maintenance and management of utility poles
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:- Status of loss carried forward in incorporated administrative agencies- PFI projects implemented by the Japanese government(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 expressway fees, debt repayment- Status of treatment of waste, removed soil contaminated with radioactive material as a result of theaccident at the Fukushima Daiichi Nuclear Power Plant- Status of maintenance, operation, use of government information systems- Measures related to acceptance of foreign human resources- Implementation of services related to the maintenance of public statistics.
(3) Report on Specific Matters
The Board conducted audits on the following matters which were found necessary to be included in
the Audit Report:- Execution status of budget regarding measures for COVID-19- Financing support for small and medium-sized enterprises in measures related to COVID-19 control- Implementation of fabric mask distribution project- Provision of employment adjustment subsidies to respond to unemployment due to the influence of
the COVID-19 pandemic- Project to stimulate consumption in the service industry (Go to Campaign project)- Implementation of the sustainability subsidy project- Implementation of a support policy package for airlines and airport-related companies under the
influence of the COVID-19 pandemic, and the status regarding revenue of airport improvement
account and the income of three airport companies- Government debts- Measures for creating proper financial documents of special accounts- Status of the tax on dividends paid by listed companies to individual shareholders who apply forspecial dividends that do not have to be filed11

- Status of construction delay and increased project expenses related to construction of the Hokuriku
Shinkansen (between Kanazawa and Tsuruga)

12