Japan’s Board of Audit Submits Annual Report, Notes Issues

Mr. Teruhiko Kawato, President of the Board of Audit of Japan (the Board), submitted the fiscal year 2016 audit report to Prime Minister Shinzo Abe. The report, containing results on audits the Board conducted between 2016 and 2017, includes final accounts of annual expenditures and revenues of state and government-affiliated institutions. After the submission to the Cabinet, the Cabinet, in turn, provided the report to the Diet (Japan’s bicameral legislature) along with the audited final accounts.

This audit report contains 423 audit cases identifying 87.4 billion Yen (approximately 794 million USD) of “improper amounts.”*

The Board has been continuously conducting agile, flexible audits and responding to issues in a timely and appropriate manner. In this annual audit report, the Board noted issues on several matters, including national finance and the auditees’ financial matters; recovery from the Great East Japan Earthquake; securing the safety of citizens’ well-being; proper execution of budget; appropriate management of public accounts; efficient use of administrative expenses; effective management of systems and projects; social security; and information technology.

The Board can, throughout the year, report to the Diet and Cabinet at any time on issues which the Board has presented its opinions, demanded measures, or found particularly necessary (even prior to the completion of the annual audit report) for that fiscal year. In 2016-2017, there were 9 cases that fell into this category. Likewise, the Diet can request the Board to conduct audits on specific matters and report the results (the Board reported two cases to the Diet in 2016-2017 in this category).

*For a definition of “improper amounts,” please visit www.jbaudit.go.jp/english. For additional information, contact the Board via email: liaison@jbaudit.go.jp or web: http://www.jbaudit.go.jp/english/.

In the photo: Mr. Teruhiko Kawato, President of the Board of Audit (pictured left) and Mr. Shinzo Abe, Prime Minister of Japan. Source: Official Website of the Prime Minister of Japan and His Cabinet.

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