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. 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 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 and publications.
The approval of the Budget by Council empowers the Secretary-General, subject to any special conditions established by Council:
- to commit and authorise expenditures and to make all payments to be borne by the Organisation, for the purposes assigned and within the limits of the appropriations or the commitment authority
- to receive the income entered in the Budget, together with any other resources accruing to the Organisation in respect of its programme of work
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.