II

Summary of Audit Results

1. Audit Results by Category and by Auditee
The total number of cases listed in the Audit Report for FY2018 was 335. Of these, the numberof cases which were found not appropriate (Improper/Unreasonable Matters) was 325 and theimproper amounts 1 totalled 100,230.58 million yen. (There were also background amounts 2
concerning the problem cases.) The following Table 1 shows the breakdown of the 335 cases
by category.
Table 1: Audit Findings by Category
Category

Number ofaudit cases

Improper amounts(Unit: million YEN)

• Improprieties (Note 1)

254

5,721.87• Presentation of Opinions and/or Demand for

27 (Note 7)

57,600.59

44 (Note 7)

36,909.37

Total of Improper/Unreasonable Matters

325

100,230.58• Special Report to the Diet and the Cabinet(Note 4)4• Special Report on Audit Requested by the Diet (Note 5)2• Report on Specific Matters (Note 6)

4Grand total

335

Measures (Note 2)• Measures Taken (Note 3)(Note 8)(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.
46

(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) 12 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”, or “Improprieties” and “Measures Taken”. As suchduplications are deducted from the total, adding each improper amount does notcorrespond with the total.

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.

47

Table 2 shows the breakdown of 325 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

Amount Article (Note 2)/CasesAmount36 1○(Note 3)

Diet
(House ofRepresentatives)
Cabinet(Cabinet Secretariat)

34 ・○
36 1
○

Total

(Note 1)

Cases

Amount(Note 1)

Cases

Amount944.481

944.48(Note 3)(Note 3)(Note 3)

1(Note 4)(Note 4)11

175.40

34 ・○
36 1
○

Cabinet Office(Note 4)(Note 9)(Note 4)14

4,202.15(49.33)(Note 9)36 2○4,026.75(49.33)

Cabinet Office(Imperial Household
Agency)

1

58.46

1

58.46

Cabinet Office(Financial Services
Agency)

1

20.25

1

20.25

Ministry of Internal
Affairs andCommunications(Note 3)(Note 3) (Note 4) (Note 3) (Note 4)

8

678.55

34 ・○
36 2
○
36 2
○

3,452.74
1,319.46

Ministry of Justice(Note 4)(Note 3) (Note 4)

1

229.5013

5,680.25

12,358.45

12,358.45(Note 5)(Note 5) , (Note 9)

Ministry of Foreign
Affairs

36 2○(Note 5)8,015.11(13,176.89)(Note 9)(Note 5)

1

29.94

3

8,045.05(13,176.89)

415,236.17(1,185.42)

515,447.71(1,185.42)

24,034.72

39

4,942.514

303.22(Note 8)

Ministry of Finance1212.79

Ministry of Education,
Culture, Sports,
Science andTechnology

36664.74

34 ・○
36 1
○

243.05

34
○

39.94

1
(Note 9)

Ministry of Health,Labour and Welfare

34 ・○
36 3
○
81

1,843.69(Note 9)

36 2
○

48

317.97(1,212.37)
36.58(343,729.57)(291.44)(Note 9)91

2,541.40(1,212.37)(343,729.57)(291.44)Category

Improprieties

Presentation of Opinions
and/or Demand for Measures

Auditee

Measures Taken(Note 1)

Cases

Amount Article (Note 2)/Cases
34○

Ministry ofAgriculture, Forestry
and Fisheries

39

471.81

Ministry of Economy,
Trade and Industry

15

86.94

Ministry of Land,
Infrastructure,
Transport and Tourism

23

Ministry of theEnvironment

19

303.93

Ministry of Defense

1

21.74

The Promotion and
Mutual Aid
Corporation forPrivate Schools of
Japan

12

278.40

1

Amount(Note 1)

Cases

Amount2

36.59(1,809.13)(Note 6)(Note 7)34○

337.81(Note 6)(Note 6)(Note 6)

16

20,347.97

12,680.60

36 1○

816.55(1176.76)

36 1○

135.89(Note 9)(Note 7)5

610.76(94,513.37)30

4,445.72(1,176.76)(94,513.37)

3876.3923

1,316.21

8

1
36 1
○

9.70

17.10
(Note 9)Central Nippon
Expressway Company
Limited(Note 9)West Nippon
Expressway Company
Limited(Note 9)Honshu-Shikoku
Bridge Expressway
Company Limited(Note 9)

1

1

1

1

1

(Note 9)9,511.17(5,036.82)

1,544.84

East Nippon
Expressway Company
LimitedJapan Pension Service

1.30

34
○

14,108.16(10,352.02)(2,383.10)(1,809.13)

20,261.03

Bank of Japan

1

45

36 1
○

(Note 9)

Tokyo Metro Co.,
Ltd.

Amount(Note 9)13,572.99(10,352.02)(2,383.10)(Note 9)Japan Racing
Association(Note 1)

Cases

26,77

(Note 9)

36 3
○

Total

1

66.74

9

9,532.91(5,036.82)

12278.4019.70

11,544.84

1

17.10(Note 9)148.89(1,115.14)

1148.89(1,115.14)(Note 9)26.78
(103.16)1

26.78(103.16)(Note 9)55.57
(637.84)1

55.57(637.84)(Note 9)59.64
(427.03)1

59.64(427.03)

2

68.04

49

Category

Improprieties

Presentation of Opinions
and/or Demand for Measures

Auditee(Note 1)

Cases
National Museum ofArt

Amount1

Article (Note 1)/CasesAmount(Note 5)

36 1
○

1

83.77

3.53

1

1

119.66

35.82

Organization for
Small & Medium
Enterprises andRegional Innovation,
Japan(Note 6)36 1○

(Note 6)

1

36 1
○

Amount15.30(Note 5)(Note 5)

1

83.77

1

3.53

1

119.661

35.82(Note 6)(Note 6)

1

Urban RenaissanceAgencyJapan Expressway
Holding and Debt
Repayment Agency(Note 1)Cases

1Japan Oil, Gas andMetals National
Corporation(JOGMEC)
National Hospital
Organization

Amount(Note 5)

Japan Sport Council

1

Total

(Note 1)

Cases

5.30

Japan International
Cooperation Agency(JICA)

Japan Organization for
Employment of theElderly, Persons with
Disabilities and Job
Seekers

Measures Taken

1,950.21

99.10

Japan Atomic Energy
Agency1

1,096.75

11,950.21

1

99.10

1

1,096.75

Japan Community
Health careOrganization

1

26.67

1

26.67

University of
Yamanashi

1455.541455.54Kobe-Osaka
International Port
Corporation

1(Note 7)1

200.65

Japan Post Co., Ltd.
Tokyo Electric Power
Company Holdings,
Inc.

(Note 7)200.65

1

50.83

1

50.83

(Note 9)1.95(20313.99)(Note 9)1.95(20313.99)11(Note 3)(Note 4)

Total

50

254

(Note 3), (Note 4)(Note 5)(Note 7)(Note 5), (Note 6)(Note 6) (Note 7), (Note 8)

5721.872757600.59

4436909.37

325

100,230.58

(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.
34 refer to audit findings under Article 34 of the Board of Audit(Note 2) The cases identified with ○Act, and the cases identified with ○36 refer to those under Article 36.

(Note 3) Although one case involves both the Cabinet (Cabinet Secretariat) and the Ministry ofInternal Affairs and Communications, 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 number of cases.
(Note 4) 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
number of cases.
(Note 5) 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 6) Although one case involves both the Ministry of Economy, Trade and Industry and theOrganization for Small & Medium Enterprises and Regional Innovation, Japan, the amount
has been listed only in the column of the Ministry of Economy, Trade and Industry. In
addition, duplication has been eliminated from the total number of cases.
(Note 7) One case involves both the Ministry of Land, Infrastructure, Transport and Tourism andKobe-Osaka International Port Corporation, and duplication has been eliminated from thetotal amount.
(Note 8) One case is counted both as “Improprieties” and “Measures Taken” (Case of excess anddeficiency in collection of taxes). As such duplication is deducted from the total, adding each
improper amount does not correspond with the total.
(Note 9) Concerning the categories “Presentation of Opinions and/or Demand for Measures” and“Measures Taken”, 12 cases in total have both improper amounts and background amounts.

51

2. Brief Description of Audit Cases
The following is a brief description of individual cases
A Improper/Unreasonable Matters by Ministry/Agency(1) Diet(House of Representatives)
Presentation of Opinions ○36 - Effective use of national property(2) Cabinet Office(Cabinet Office)Improprieties - Excessive payment of costs for commissioned work under outsourcing contracts forabandoned chemical weapon disposal projects- 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 child and child-rearing support grants (the portion for thecommunity child care support centers project)b. Excessive billing of subsidized project cost:(a) Excessive billing of the cost of projects eligible for a State contribution towards benefits
for children’s education and care(b) Excessive billing of the cost of developing company-run childcare facilities under thecompany-run childcare project(c) Excessive billing of the cost of projects implemented with subsidies for maintaining andadvancing local communities on specific inhabited remote border islandsc. Not eligible for a subsidy:
Part of cost of a project implemented by the emergency support grant for local revitalizationand local residents’ living (regional revitalization initiative) was not eligible for the subsidy.
d. Improper design of works:
Improper design of protective fence work
36 - Use of dedicated lines and installation of communications equipment
Demand for Measures ○under the emergency contact network development project
Demand for Measures ○36 - Setting of enrollment limits in the development of company-run
childcare facilities(Imperial Household Agency)
Measures Taken - Management of advance payments in respect of visits to foreign countries byaccounting officials responsible for advance payments(Financial Services Agency)
Measures Taken - Equipment usage fees associated with contracts for the provision of information(3) Ministry of Internal Affairs and Communications
Improprieties - Excessive purchase of paper and its printing when calculating the number ofquestionnaires to be procured for the Population Census
52

Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Excessive payment of an extraordinary grant for heightening regional vitality (local
economy vitalization/employment creation)b. Improper design of measures to deal with lightning strikes on relay stations developed withsubsidies for projects to support widespread use of wireless systems
36 - The effects of the regional economic circulation creation project grants
Demand for Measures ○Demand for Measures ○36 - Implementation status of projects undertaken with subsidies for
information and communication technology utilization and application projects
Measures Taken - Prices recorded in the national property register after repairs(4) Ministry of JusticeMeasures Taken - Management of administrative assets associated with branches of the Public
Prosecutors Office and the Local Public Prosecutors Office that are not permanently staffed(5) Ministry of Foreign Affairs
Presentation of Opinions ○36 - The effects of official development assistancePresentation of Opinions ○36 Demand for Measures ○36 - Efficient use of grants provided as grantassistance (Economic and Social Development Programme)
Measures Taken - Assistance for Japanese schools overseas(6) Ministry of FinanceImproprieties - Cases of excess and deficiency in tax collection
Measures Taken - Review of applications of special provisions concerning mortgage tax
deductions, special provisions concerning transfers and special provisions concerning gifts
Measures Taken - Imposition of consumption tax in the event that sole proprietors have closed
their businessMeasures Taken - Leases concerning ancillary facilities for large-scale X-ray devices forinspecting container cargoes
Measures Taken - Equipment usage fees associated with contracts for the provision of information(7) 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 disaster mutual aid schemes (subsidies to refund
payments of mutual aid premiums by parents and guardians of aid-requiring children andquasi-aid-requiring children)
d. Excessive use of funds in projects implemented using funds created by extraordinary special
grants for childcare support (the portion for Certified Centers for Early Childcare and
Education improvement projects)
e. Excessive payment of subsidies for aid to operating expenses of private high schools(general subsidy)
f. Excessive payment of subsidies for aid to operating expenses of private high schools(expenses for kindergarten and other special needs education)
53

g.

Excessive payment of subsidies for improvement of private school facilities (private
kindergarten facility improvement expenses)
h. Excessive payment of subsidies for improvement of private school facilities (projects topromote education and research facilities, educational devices, and ICT use)
i. Excessive payment of subsidies for improving facilities to revitalize education and researchat private universities
j. Excessive payment of grants for improvement of school facilities and the environment
k. Excessive payment of grants for public investment for promotion of Okinawa (projects
concerning improvement of school facilities and the environment)l. Excessive State contribution to the cost of compulsory education
Measures Taken - Calculation of amounts of subsidies for improvement of facilities at National
University Corporations
Measures Taken - Value of impairment recorded in the business operation cost statement of the
National University Corporation(8) 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 employment adjustment subsidies under employment
insurance
Improprieties - Improper payment of human resource development support grants under
employment insurance
Improprieties - Improper payment of subsidies for development of employment for specified job
seekers under employment insurance
Improprieties - Improper payment of career enhancement subsidies under employment insurance
Improprieties - Improper payment of unemployment benefits 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 billing of projects with subsidies for operating expenses of medical facilities (theportion for projects to support certification of medical specialists)
b. Excessive billing of projects with subsidies for operating expenses of medical facilities (theportion for projects involving the operation of medical institutions designated for infectious
diseases)c. Excessive use of funds in projects implemented using fund created by grants for promoting
reform of medical and long-term care provision systems (the portion for medical careprojects)
d. Objectives of subsidies not achieved in projects implemented using funds created byextraordinary special grants for the regeneration of community medicine
e. Excessive payment of State contribution to medical treatment benefits under national healthinsurance
54

f.
g.

Excessive payment of fiscal adjustment grants under national health insurance
Use of funds for unintended purposes in projects implemented using funds created by the
extraordinary special grant for the emergency human resource development and employment
support programs
h. Excessive State contribution to the livelihood assistance subsidy
i. Excessive State contribution to the benefits for services and supports for people withdisabilities
j. Excessive State contribution to disability benefits for children with disabilities in living
support facilities
k. Excessive State contribution to medical expenses for people with disabilities
l. Excessive State contribution to ordinary adjustment grants for nursing care insurance
m. Excessive billing of costs eligible for the subsidy under the project to secure employment
opportunities for elderly persons (Silver Human Resources Center Project)n. Excessive billing of the costs of projects implemented with comprehensive support grants
for disaster victims
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 - Calculation of benefits for the employment transition support projectfor people with disabilities
Demand for Measures ○34 ○36 - Projects implemented using funds created by grants for promoting
reform of medical and long-term care provision systems
Demand for Measures ○34 ○36 - Financial management related to the implementation of the Basic
Survey on Wage Structure
Presentation of Opinions ○36 - Review of medical receipts by National Health Insurance
Organizations by means of computer checks
Demand for Measures ○36 - Setting of prices for medical examinations related to the secondary
health examination benefit
Measures Taken - Implementation of projects for the installation of sprinklers in clinics with
inpatient beds
Measures Taken - Grants related to review fees for the nursing care benefit
Measures Taken - Project to subsidize measures for the prevention of passive smoking
Measures Taken - Payment of incentives for accredited vocational training(9) Ministry of Agriculture, Forestry and Fisheries
Improprieties - Purpose of works conducted to implement comprehensive disaster prevention
projects targeting state-owned agricultural land not achieved, as the required level of safety
for box culverts was not ensured, due to improper design of foundation piles
Improprieties - Purpose of work conducted to implement forest repair and conservation projects
not achieved, as the required level of safety was not ensured, due to differences between
the design of the erosion control dam and its construction
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Improper calculation of subsidized amounts:
55

b.

c.

d.

e.

f.

56

(a) Improper calculation of amounts of subsidies for implementation of the businessfostering assistance project (business fostering assistance project for disaster-stricken
farmers)(b) Errors in application of the subsidy rate for implementation of the grant program fordevelopment of measures to enhance agriculture and the food industry(c) Improper calculation of amounts of subsidies for implementation of the project forurgent measures to enhance livestock competitivenessSubsidized objective not achieved:
Grant sums were determined on the basis that projects had been completed properly, eventhough the strength of low-cost weather-resistant houses did not meet the standard to beeligible for the grant.
Improper use of funds created by subsidies:(a) Excessive billing of costs eligible for the subsidy under projects implemented using
funds created with subsidies for the cost of fisheries business stability measures (theportion for urgent measures for the introduction of equipment to enhancecompetitiveness)(b) Excessive payment of subsidies for projects implemented using funds created withsubsidies for the cost of fisheries business stability measures (the portion for projects toinvestigate and monitor operations by foreign fishing vessels)(c) Livestock loans provided did not meet the requirements for subsidies and were therefore
ineligible to be subsidized in projects implemented using funds created with subsidies
for comprehensive measures to increase the earning capacity of livestock and dairy
farming.
Not eligible for a subsidy:(a) Part of the cost of projects that received grants through the grant project concerningcomprehensive measures to promote the symbiosis of cities and agriculturalcommunities and interaction between them was not eligible.
(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) Development of forestry roads conducted as forest environment conservation andenhancement project was not eligible for the subsidy.
(d) Thinning conducted as forest environment conservation and enhancement project was
not eligible for the subsidy.
(e) Part of a multifunctionality payment grant was used for a purpose other than
implementing activities positioned in the guiding principles for activities and wastherefore ineligible.
Improper design of works:(a) Improper design of retention basins(b) Improper design of conduits(c) Improper design of sand control work(d) Improper design of retaining walls
Excessive billing of subsidized project cost:(a) Excessive billing of the cost of trial projects to establish a model for improving
productivity in agriculture through partnerships between the agricultural sector and thebusiness community

(b) Excessive billing of subsidized costs of technical guidance projects to reduce poverty
and promote sustainable agriculture in Asia
g. Improper design and construction of works:
Improper design and construction of pumping stationh. Disposal of property obtained through subsidized projects without permission:
Unauthorized halting of a grant program for development of measures to enhance agriculture
and the food industry, without seeking approval regarding the disposal of property
i. Improper construction of works:
Improper construction of bed protection work
j. Excessive estimate of the cost of works:
Excessive estimate of general administrative expenses related to electrical equipment workat sewerage facilities in projects implemented by regional revitalization promotion grants
k. Improper plans:
Improper plans for implementation of reservoir decommissioning work
34 - Calculation of amounts of grants to extend operational life in projects
Demand for Measures ○funded by multifunctionality payment grants
Demand for Measures ○36 - Disaster prevention and mitigation projects involving reservoirs
Demand for Measures ○36 - Checking seismic performance of management facilities for securing
the functions of important equipment at dams and headworks following major seismic
motionDemand for Measures ○36 - Loans to Fisheries Credit Guarantee Fund Associations by the
Agriculture, Forestry and Fisheries Credit Foundations
Measures Taken - Use of OCR equipment procured for use with the agriculture, forestry andfisheries statistics system
Measures Taken - Implementation of projects for measures to enable the fisheries industry to fulfill
multifaceted functions(10) Ministry of Economy, Trade and Industry
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Improper design of works:(a) Improper design of water tanks(b) Improper design of street lights(c) Improper design of lighting facility installation work(d) Improper design of farm road-crossingsb. 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) Project for measures to promote the introduction of heat generated locally by renewableenergy was implemented by a body that was not a project implementing body and wastherefore not eligible for the subsidy.
(c) Part of the cost of projects implemented with subsidies to support projects to promote
understanding of geothermal development was not eligible.
(d) Part of the cost of projects with subsidies for projects to support regional and downtown
commercial revitalization was not eligible.
c. Excessive billing of subsidized project cost:57

(a) Excessive billing of projects with subsidies to encourage regional investment in the
future(b) Excessive billing of project costs as the project costs for implementing the program of
measures to support business operators generating heat using renewable energy werelower than stated in the performance reportd. Disposal of property obtained through subsidized projects without permission:
Unauthorized demolition of facilities developed under projects carried out with subsidies tosupport regional and downtown commercial revitalizatione. Use for purpose other than subsidized objective:
Use of funds created by subsidies for credit guarantee corporations intended to facilitate
financing for purpose other than subsidized objective
f. Improper use of funds created by subsidies:
Excessive billing of project costs for subsidy programs for funds focused on projects
implemented using funds created with subsidies to support prototype development by
manufacturing SMEs and micro enterprises
g. Unnecessary payment of subsidies:
Payment of disaster recovery subsidy for SME cooperatives joint-use facilities was
unnecessary
h. Improper construction of works:
Improper construction of ancillary road works
36 - Scale of government contribution to the type 2 credit guarantee fundPresentation of Opinions ○held by the Organization for Small & Medium Enterprises and Regional Innovation, Japan(11) Ministry of Land, Infrastructure, Transport and Tourism
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Improper calculation of subsidized amounts:(a) Improper calculation of compensation concerning relocation of communication lines andwater pipes(b) Improper calculation of compensation concerning relocation of buildings(c) Excessive subsidy payment due to improper calculation of subsidized amounts(d) Comparatively high contract price due to the wrong number of items of equipment being
designed(e) Improper calculation of compensation concerning relocation of machinery andequipment
b. Improper design of works:(a) Improper design of rock fall protection works(b) Improper design of foot protection works(c) Improper design of an anti-corrosion work for steel sheet pilings(d) Improper design of bank protection works(e) Improper design of retaining walls
c. Excessive estimate of the cost of works:(a) Excessive estimate of general administrative expenses related to electrical equipment
work at sewerage facilities in projects implemented by regional revitalization promotion
grants(b) Excessive estimate of the cost of hopper barge transport related to dredging work58

d.

Improper design and construction of works:
Improper design and construction of a lighting control desk relocation worke.

Not eligible for a subsidy:
Project was subsidized on the basis of a false performance report stating that the project had
been completed and was therefore not eligible for the subsidy.
f. Improper plans:
Excessive construction cost due to an improper plan for an electrical corrosion work
34 - Calculation of usage fees for administrative assets related to a
Demand for Measures ○government-managed airport land
Demand for Measures ○36 - Provision of guidance and advice to owners of buildings that haveundergone evaluation of seismic capacity under the program to form a safe stock of
housing and buildings
Measures Taken - Implementation of subsidized program for the cost of surveys to promote
development of land registers
Measures Taken - Number of spare blades required for patrol boat propellers
Measures Taken - Electrical equipment installed in disaster prevention facilities of rivermanagement facility
Measures Taken - Design of steel sheet piling work for river works
Measures Taken - Estimate of the cost of a work to install telemetry apparatus used in rivermanagement(12) Ministry of the Environment
Improprieties - Purpose of the work conducted to implement a park maintenance work in National
Parks not achieved, as the required level of safety for the bridge superstructure work was
not ensured, due to an improper design
Improprieties - Improper execution of and accounting for projects with subsidies or grants:
a. Improper use of funds created by subsidies:
Improper design of facilities in projects financed by funds for supporting local governments
introducing renewable energy
b. Not eligible for a subsidy:(a) Cost incurred for development of buildings in subsidized projects for promoting
establishment of a sound material-cycle society was not eligible for the subsidy.
(b) Part of cost of projects with subsidies for disaster waste disposal was not eligible for thesubsidy.
(c) Part of cost of projects with subsidies for measures to curb carbon dioxide emissions
was not eligible for the subsidy.
c. Excessive payment of subsidies:
Excessive payment of grants due to improper calculation of site management expenses insubsidized projects for promoting establishment of a sound material-cycle society
36 - Revision of standard work costs for grants related to the installation of
Demand for Measures ○septic tanks
Measures Taken - Leases concerning on-site laboratories
Measures Taken - Procurement of cooling water at waste disposal facilities
Measures Taken - Estimate of material costs for large sandbags used in a decontamination work59

(13) Ministry of Defense
Improprieties - Purpose of replacing anti-trespass fences not achieved
Measures Taken - Repayments related to contributions paid to the U.S. government under theForeign Military Sales scheme
Measures Taken - Dedicated uninterruptible power supply systems procured when installing andreplacing IT systems
Measures Taken - Management and operation of outdoor communication systems
Measures Taken - Service agreements on maintenance and management for Maritime Self-Defense
Force repair, maintenance, and supply systems (open type)Measures Taken - Maintenance checks of automatic noise measurement devices
Measures Taken - Estimate of shared costs for work related to enhancement of defense facilities on
islands
Measures Taken - Recording of equipment and materials procured for use in maintenance in the
goods management book, where such items are imported and delivered over multiple fiscal
years
Measures Taken - Lightning arresters connected to air-to-air radios(14) Cabinet (Cabinet Secretariat), (3. Ministry of Internal Affairs and Communications)
Demand for Measures ○34 Presentation of Opinions ○36 - Development of a secure zone on thegovernment common platform(2. Cabinet Office (Cabinet Office), 3. Ministry of Internal Affairs and Communications)
Demand for Measures ○34 ○36 - Calculation of special allocation tax for soft infrastructure projects
implemented to revitalize city centers(7. Ministry of Education, Culture, Sports, Science and Technology, 8. Ministry of Health, Labour andWelfare)Demand for Measures ○34 ○36 - Calculation of amounts of subsidies for projects to develop facilities
for Certified Centers for Early Childcare and Education

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) Bank of Japan
Measures Taken - Equipment usage fees associated with contracts for the provision of information(3) Japan Racing Association
Demand for Measures ○36 - Effective use and disposal of land not used for business purposes(4) Tokyo Metro Co., Ltd.
Improprieties - Comparatively high contract price for carrying out work to improve anti-trespass
fences at railyards, due to incorrect estimate of fence installation costs

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(5) East Nippon Expressway Company Limited, (6) Central Nippon Expressway Company Limited,(7) West Nippon Expressway Company Limited, (8) Honshu-Shikoku Bridge Expressway Company
LimitedMeasures Taken - Implementation status of disaster prevention measures by expressway
companies(9) Japan Pension Service
Improprieties - Fraud by officials
Demand for Measures ○34 - Delivery of notifications(10) National Museum of Art
Improprieties - Comparatively high contract price for carrying out refurbishment work on
buildings and facilities, due to incorrect estimate of shutter part replacement costs(11) Japan International Cooperation Agency
Presentation of Opinions ○36 - The effects of official development assistance(12) Japan Sport Council
Measures Taken - Calculation of reserves for payments related to the disaster mutual aid scheme
account(13) Japan Organization for Employment of the Elderly, Persons with Disabilities and Job Seekers
Improprieties - Implementation of unnecessary repair work for employee lodgings, due toinadequate consideration of the review of services in light of measures to discontinue newoccupancies and the occupancy status of employee lodgings(14) Japan Oil, Gas and Metals National Corporation (JOGMEC)
Measures Taken - Oil stockpiling program subsidy related to the Niigata joint oil stockpiling
facility(15) National Hospital Organization
Improprieties - Breach of accounting regulations in payment of increased amount resulting fromdesign alteration work(16) Organization for Small & Medium Enterprises and Regional Innovation, Japan
Presentation of Opinions ○36 - Scale of government contribution to the type 2 credit guarantee fundheld by the Organization for Small & Medium Enterprises and Regional Innovation, Japan(17) Urban Renaissance Agency
Measures Taken - Financial assets held by a subsidiary responsible for managing housing
complexes(18) Japan Expressway Holding and Debt Repayment Agency
Demand for Measures ○36 - Effective use of land under elevated roads

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(19) Japan Atomic Energy Agency
Measures Taken - Fabrication of fuel elements used in the JMTR testing and research reactor(20) Japan Community Health care Organization
Improprieties - Fraud by officials(21) University of Yamanashi
Improprieties - Improper presentation of financial statements(22) Kobe-Osaka International Port Corporation
Improprieties - Excessive payment of outsourcing fees for container consolidation project(23) Japan Post Co., Ltd.
Measures Taken - Procurement of Japan Post counter terminal machines(24) Tokyo Electric Power Company Holdings, Inc.
Measures Taken - Facing carried out on-site at Fukushima Daiichi Nuclear Power Station

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 application and review of special taxation measures (special provisions concerning SME
allowance for doubtful accounts)- Funds established by local governments with government subsidies- Status of the National Pensions Special Account and pension reserves managed and operated by theGovernment Pension Investment Fund
- Response of competent ministries and incorporated administrative agencies to institutional revisions
resulting from the reform of incorporated administrative agencies(2) Special Report on audit requested by the Diet
The following reports were submitted to the Diet based on requests from the Diet:- Measures concerning revitalization of urban centers- Procurement of defense equipment via Foreign Military Sales (FMS)(3) Report on Specific Matters
The Board conducted audits on the following matters which were found necessary to be
included in the Audit Report:- Social security trends and their impact on the State’s fiscal consolidation- Status of application and review of special taxation measures (special provisions concerning
mortgage tax deductions and special provisions concerning transfers)- Status of polychlorinated biphenyl waste disposal project being implemented by Japan
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Environmental Storage & Safety Corporation and status of financial burden on the government
associated with said project- Impact of quantitative and qualitative monetary easing on the financial position of the Bank of Japan

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