The OECD is governed by a Council composed of representatives of all the Member countries. The Council appoints the Secretary-General for a term of five years.
The Organisation is funded primarily by assessed and voluntary contributions from its member countries, within the framework of a biennial Programme of Work and Budget.
Through the Budget, the Council accords the necessary commitment authorisation and makes the necessary appropriations for the functioning of the Organisation and the delivery of its agreed output results. It determines the amount of assessed contributions to be paid by members after taking into account other resources of the Organisation. All the OECD member countries fund the 'Part I' Budget (M EUR 202.5 in 2018), which accounts for 53% of the overall Budget (M EUR 385 in 2018). Their scale of contributions are based on both a proportion that is shared equally and a scale proportional to the relative size of their economies.
Part II programmes are funded according to a scale of contributions or other agreements among the participating countries. Part II budgets (M EUR 104.8 in 2018) include, in some programmes, a significant number of non-member participants in addition to those member countries participating in those programmes. The other main Budget items are pensions (M EUR 61.5 in 2018) and publications (M EUR 13.4).
The approval of the Budget by Council empowers the Secretary-General, subject to any special conditions established by Council:
The OECD is entitled to diplomatic privileges and immunities, as are officials and member country representatives. The OECD is exempt from paying taxes related to its operating revenue and expenses.
The Organisation prepares annual Financial Statements in accordance with IPSAS.
Independent external auditing of the Organisation’s accounts and financial management is performed by a Supreme Audit Institution of an OECD Member Country, appointed by the Council. It certifies the financial statements and reviews the Budget results and the outcome of the performance audits. The Council, in the light of this certification and comments, discharges the Secretary-General from all liability in respect of his or her administration.