Deficit & Financial Soundness Racio Audits

Audit of financial soundness ratios (of local government)

This audit is performed in order to examine the real deficit, consolidated deficit, real debt expenditure, and future financial burden ratios (referred to as the “financial soundness ratios”) stipulated in the Law for the Enhancement of Financial Status of Local Public Bodies (Law #94 in 2007) together with the supporting documents which provide the underlying basis of those ratios. (Clause 1, Article 3 of the Law for the Enhancement of Financial Status of Local Public Bodies)

The audit ensures that the financial soundness ratios presented by the governor and the supporting documents are prepared in a proper manner. For this purpose, audit methods such as matching with final accounts and other statements and ledgers, and interviews with the relevant bureaus and departments are applied.

Audit of deficit ratio (of local public enterprise)

This audit is performed in order to examine the deficit ratio of local public enterprise stipulated in the Law for the Enhancement of Financial Status of Local Public Bodies (Law #94 in 2007) and check the supporting documents which provide the underlying basis of that ratio. (Clause 1, Article 22 of the Law for the Enhancement of Financial Status of Local Public Bodies)

The audit ensures that the deficit ratio presented by the governor and the supporting documents are prepared in a proper manner. For this purpose, audit methods such as matching with final accounts and other statements and ledgers, and interviews with the relevant bureaus and departments are applied.

Planning of Audit Work, Results of Audit by (Fiscal) Year(JAPANESE)