9.4 Procedures

9.4.1 Scope

Auditors conduct audits on the overall operation and asset condition of the School Corporation. Specifically, audits shall be conducted on the following items:    

1. Condition of enacting and practicing the relevant laws and school policies and regulations.  
2. Business and management condition of the School Corporation and University.
3. Administrative performance condition of overall system and organization of the School Corporation and University.
4. Personnel management condition.
5. Implementation status of budgets, business plans and financial plans.
6. Expenditure and management conditions of cash, etc.
7. Condition of financial supply-demand and the management.
8. Property acquisition, management, and disposal conditions.
9. Safety management conditions.
10. Other issues necessary for the achievement of healthy and stable operation of the School Corporation.

9.4.2 Types and Procedure of Audit

There are two types of audits: Periodical Audits which are conducted periodically, and Special Audits which are conducted on an as-needed basis.

9.4.2.1 Document Audit
Only documents that are created and managed by the School Corporation will be subject to audits. When implementing document audits, documents pertaining to accounting, contracts, and other necessary forms are subject of Document Audit. This also includes but is not limited to all the logs and records from the School Corporation’s computer systems.

9.4.2.2 Field Audits
Audits may also be conducted at the employee’s workplace, where employees are interviewed and explanations may be requested.

9.4.3 Implementation Procedure

Audits by the Auditors shall follow the procedures stated in this Chapter unless otherwise stipulated separately.

9.4.3.1 Auditors must prepare audit plans every fiscal year and inform the CEO in advance. However, Special Audits are conducted whenever deemed necessary, and therefore no advance notice is required.

9.4.3.2 The head of a section/division that will be audited will receive a written notice of a Periodical Audit in advance.

9.4.3.3 In case of a Special Audit, no advance notice is issued.

9.4.3.4 The head of an audited section/division is responsible for cooperating for a smooth conduct of the audit activity. This includes but is not limited to preparing documents pertinent to the items on the advance notice form.

9.4.4 Documents to be Audited and Sent to the Auditors

Documents stipulated in Bylaws Article 31 must be sent up to the Auditors for the purpose of audit. The following documents must also be sent up to the Auditors after they have been approved by the determining authority (Kessai) for they are crucial in assessing the condition of the School Corporation’s administrative operation.

1. Documents concerning enactment, revision and abolition of the Bylaws, regulations, stipulations, and other policies of the School Corporation
2. Documents requesting for an approval or authorization or other important documents prepared for the Prime Minister and the Minister of Education, Culture, Sport, Science and Technology
3. Documents concerning the determination of the basic policies for the School Corporation’s business and administrative operation
4. Important documents concerning contracts
5. Important documents concerning lawsuits and petitions
6. Important documents for submission to the Board of Audit
7. Important documents concerning an approval or authorization from the Prime Minister or the Minister of Education, Culture, Sport, Science and Technology
8. Important documents issued from Government offices other than the Cabinet Office or Ministry of Education, Culture, Sport, Science and Technology
9. Other important documents, both issued and received, concerning School Corporation’s operation