In 2000, the IAEA adopted the Results Based Approach for the development of its programme. Results based programming and budgeting involves formulating a programme and budget that is driven by a number of desired results that are articulated at the outset of the process, and against which actual performance is measured at the end of the programme and budget cycle. In a results based approach, programme formulation follows a sequence of steps intended to ensure that the programme is designed to meet the needs of Member States and makes the best use of the Agency's potential.
The Agency's main sources of funding are the Regular Budget Fund, the Technical Cooperation Fund and Extrabudgetary Programme Funds. These are mainly supplied by Member States and, in some cases, by other donors. Contributions to the extrabudgetary funds and the Technical Cooperation Fund are voluntary.
The regular budget consists of an operational and a capital component. While the first component is used to finance ongoing operational costs, the capital component is used to finance major infrastructure investments in line with the IAEA's major capital investment plan. The regular budget is divided into six major programmes, in accordance with the structure of the Agency's work programme.
Technical Co-operation funding
The IAEA’s technical co-operation activities are financed from the Technical Co-operation Fund and extrabudgetary contributions. The Fund comprises voluntary contributions, for which the Agency’s Board of Governors recommends a target each year.
Other voluntary contributions
The Agency also relies on voluntary contributions to carry out some of its activities in all its six work programmes. Estimates of these extrabudgetary funds are planned on the basis of the Agency’s capacity to implement the activities in question and the likely receipt of the funding.
Some of these activities fall under the Peaceful Uses Initiative (PUI) launched by the IAEA in 2010. This Initiative has since become an important vehicle to raise extrabudgetary contributions for the Agency’s activities in the peaceful uses of nuclear technology. The PUI allows the IAEA to implement for the benefit of its Member States additional projects in the peaceful applications of nuclear technology, many of which would otherwise remain unfunded.
The IAEA prepares annual financial statements in compliance with the International Public Sector Accounting Standards. These statements are audited by the Agency's External Auditor, the Supreme Audit Institution of one of its Member States. The annual financial statements, along with the report of the External Auditor, are then approved by the General Conference.