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Other Activities

Besides the audit, the Board carries out the following audit-related activities.

(1) Adjudication on the liability for indemnity

If an official responsible for cash handling, handling goods or budget execution has been involved in a loss or damage to cash or goods under his or her control, or otherwise has made disbursement in violation of the laws and regulations or the approved budget, resulting in damage to the State, the Board shall inquire into whether the official has caused a loss or damage through his/her failure to exercise the due care of a prudent manager, or through intent or gross negligence, and adjudicates whether the official is liable to indemnity.
If the Board adjudicates that the official is liable to indemnity, the Minister to which the official belongs must order the official to pay the indemnity.

(2) Demand for disciplinary action

If the Board finds, as a result of audit, that an official who handles accounting for the State has caused substantial damage to the State through intent or gross negligence, or that a budget executing official has made disbursement in violation of the laws and regulations or the approved budget through intent or gross negligence, and caused damage to the State, the Board may demand the Minister to which the official belongs to take disciplinary action against the official. The Board is also authorized to execute the same right in case where an official who handles accounting for the State neglects to submit statements of accounts or documentary evidence to the Board.

(3) Examination

If the Board has been requested by an interested party to examine the conduct of an official who handles accounting for the State with regard to the handling of financial management, the Board must examine that official's conduct and, if the Board considers it necessary for such conduct to be corrected, the Board must notify the competent authorities or other responsible parties of this judgment.
The competent authorities or other responsible parties must take appropriate measures pursuant to the judgment of which they have been notified.

3-2-2,Kasumigaseki,Chiyoda-ku,Tokyo 100-8941 Japan[Map (PDF:54KB)]
Tel:81-(0)-3-3581-8125
(c)2011 Board of Audit of Japan