A Memorandum of Understanding (MOU) is simply a written agreement to identify the working relationships and guidelines between collaborating entities. An MOU spells out the common understandings. It clarifies what kind of support will be provided and creates more meaningful ways for communication or participation. It defines the rights and responsibilities of each involved entity. Here are some typical components of an MOU, with sample language:
Purpose and Agreement(s)
The memorandum should state the purpose and goals of the collaboration or partnership between the two entities. The specific agreements should be detailed into separate paragraphs or listings along the lines of "What [X Agency] Will Do" and "What [Y Group] Will Do."
Duration or Term of Memorandum and Termination Process
The memorandum should identify the beginning and ending dates of the agreement or its duration.
This memorandum shall commence on [date] and shall continue for period of [ending date/number of years].
The memorandum should also identify how the MOU can be terminated.
This memorandum may be terminated by either party giving the other party [three months'] notice in writing.
Meetings and Reporting
An MOU describes the interaction between the organizations. It provides a structure, such as a specific meeting time, or the "as needed" informal expectations of either party. It is also a way for parties to specify their reporting needs and timeframes.
To accomplish the purpose and objective set forth in the MOU, partners will meet at least [twice] a year.
The financial or funding support situation should be explained. Someone may need to take responsibility for financial record keeping and reporting. Specify who will review and approve expenditures and financial decisions on behalf of the collaboration, if needed.
Here are a few examples of statements for program collaborations or partnerships where funding is not part of the agreements:
Nothing in this MOU shall be deemed to be a commitment or obligation of funds from either …. or …… (or any of their various components).
The entities acknowledge that all or any financial arrangements must be negotiated and will depend upon the availability of funds.
Signatures with Dates
Once the MOU is prepared and agreed upon by parties involved, it should be signed and dated by the authorized individuals representing each partner or organization. Copies should be kept in an easily accessible location by both entities.
The following is example template with sample language for Memorandum of Understanding (MOU). Please note that other sections may need to be added, depending on the nature of the agreement and the parties involved. The duties and responsibilities of each party should be clearly defined. Please state what is to be done or what is expected in plain, simple language. Be specific about any financial or other resource obligations of each party and include the dates when the actions are to be taken and completed.
MOU between …...... and ……..... and …….......
This Memorandum of Agreement establishes the guidelines for collaboration between ….. and the ________ in the delivery of Eemployment Services Contract 2009 -2012
The ________.... and ……. and ……. hereby agree to work together to:
6. Jointly identify and support reporting requirements of each organization.
MEETINGS AND REPORTING
To accomplish these objectives, partners will meet at least ___times a year for the purposes of program planning and monitoring and evaluating outcomes. Decisions at the meeting will be decided by…….. (simple majority, consensus etc)
FUNDING and Financial Responsibilities:
For – (insert specific financial arrangements)
This MOU is at-will and may be modified with the mutual consent of the authorized individuals of …. and ________.... and …... Once signed by authorized officials of both groups, this MOU will begin [Month Day, Year] and remain in effect until [Month Day, Year].
Some additional Clauses that may be included:
It is agreed by the parties to this MOU to jointly appoint a suitably qualified Manager to manage the programs. The terms and conditions and remuneration for this position will be determined by the parties to this agreement.
All other staff employed as a result of obtaining business shall be employed by……..