Memorandum of Understanding

 

  Introduction:

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:

 

 MOU includes with:

 

1. The parties of the agreement
2. The project for which the parties are forming an association.
3. The time which means the limitation period of the agreement
4. The duties & responsibilities of each partner are defined clearly.
5. Proper disclaimers should be included.
6. The financial contribution of each party is clearly mentioned.
7. The other vital element to be included in the memorandum of understanding is risk-sharing i.e. to what extent each party bears the risk due to the mishap.
8. The signature & the date of signature of both the parties, to confirm the term & conditions mentioned in the MOU.

 

    Purpose and Agreement:

 

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 of Term of Memorandum and Termination Process:

 

   The memorandum should identify the beginning and ending dates of the agreement or its duration.

 

Example:

 

This memorandum shall commence on [date] and shall continue for a period of [ending date/number of years].

The memorandum should also identify how the MOU can be terminated.

 

Example:

 

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.

 

• Financial Considerations

 

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.

 

Example:

The following is an 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 drafting process:

1. Planning phase: each party involved determines their wants & what they’re willing to negotiate on.
2. Drafting phase: parties then draft the initial MOU.
3. Negotiable phase: the MOU typically outlines guidelines that govern the mediation process.
4. Timeline negotiation: once negotiations have competed, parties establish a timeline for the MOU to take effect when it expires, & any rules regarding termination.
5. Restriction: finally each party adds any restriction, disclaims, privacy statements, etc, & sign the final MOU.

 

Sample 1:

                     

                           MEMORANDUM OF UNDERSTANDING (MOU) between

                         ------------------------------------ [name of the party A]

                                          AND

                          ------------------------------------- [name of the party B]

 

This is an agreement between “party A” hereinafter called ___________________ & “party B” herein after called _________________________

 

1. PURPOSE & SCOPE:

The purpose of this MOU is to clearly identify the roles & responsibilities of each party as they relate to (your project name), a project of the Growing Justice Institute, designed to (your mission statement).

        Particularly MOU is intended to:

Example:

• Enhance
• Increase
• Reduce costs
• Establish

2. MOA term:

The term of this MOA agreement is the period within which the project responsibilities of this agreement shall be performed. This term commences ___________________ and terminates ___________________.

3. PARTY A responsibilities under MOA:

As a contractor of Party B, Party A shall undertake the following activities:

 

ï‚· Maintain good standing as a Growing Justice Institute Fellow

 

ï‚· Develop the (your project name) and manage its implementation in West Oakland

 

ï‚· Develop an organizing cohort of residents and institutions in West Oakland and beyond

 

ï‚· Generate progress reports and updates on time

 

ï‚· Support People’s Grocery programs and events

 

ï‚· Represent People’s grocery in the Oakland community

 

ï‚· Support and maintain good standing with other GJI leaders and projects

 

ï‚· Maintain an up-to-date Nation builder sub-nation

 

4.  PARTY B RESPONSIBILITIES UNDER THIS MOA

 

Party B shall undertake the following activities:

 

ï‚· Provide resources and support for the development and propagation of the (your project name), utilizing the expertise and support of PG staff and networks.

 

ï‚· Provide fiscal sponsorship of the (your project name) with Party A as a contractor

 

ï‚· Support the program by providing promotion, marketing and recruitment for the (your project name) 

 

ï‚· Evaluate, assess and record the progress of the projects 

 

ï‚· Provide facilities, office space and supplies for project management

 

ï‚· Assist with the publicity of (your project name) through social media, at speaking engagements, etc

 

ï‚· Promote and (your project name) within Party B’s network

 

ï‚· promptly reimburse allowable expenses

 

ï‚· Provide web hosting and website development support through Nation builder platform

 

5.MEETINGS AND REPORTING: 

To accomplish these objectives, partners will meet at least ___times a year for program planning and monitoring and evaluating outcomes. Decisions at the meeting will be decided by…….. (a simple majority, consensus etc).

  

6.  IT IS MUTUALLY UNDERSTOOD AND AGREED BY AND (your name) MOU BETWEEN THE PARTIES THAT:

 

•  All amendments must be made in writing and must be agreed to and executed by the parties before becoming effective. 

 

• This agreement may be cancelled or terminated without cause by either party by giving (30) calendar days advance written notice to the other party. Such notification shall state the effective date of termination or cancellation and include any final performance and/or payment invoicing instructions/requirements.

 

 

7.  FUNDING

 

This MOA does include the reimbursement of funds between the two parties as Party A is the contractor to Party B to manage the (your project name).

 

Party B will assist Party A in fundraising for the program.  Program activities should not supplant existing outreach programs and be operating in conjunction with existing programs, enhance and supplement them.

 

Party B shall assist Party A in grant writing, research and fundraising for the (your project name).

 

 

8.  RECORD RETENTION

 

All records must be retained for three years from fiscal closure. This requirement applies to fiscal records, reports and client information. Supporting documentation may be kept at the subcontractor level, but must be available for review for three years from the date of quarterly claim submittal. 

 

9.  EFFECTIVE DATE AND SIGNATURE

 

This MOA shall be effective upon the signature of Parties A and B authorized officials. It shall be in force from ___________________ to ___________________. Parties A and B indicate agreement with this MOA by their signatures.

 

Signatures and dates

 

Party A

____________________________        __________ 

Signature                                                        Date

 

Party B

 

____________________________       __________

Signature                                                             Date         

 

 

 

Some additional Clauses that may be included:

 

• Staff

     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……..

 

• Legal matter:

        If the Memorandum is binding legally, then the principles of contract law & the Contract Act 1872 will applicable.

       If the Memorandum is not legally binding no law directly applies to it. However ordinary principles of contract law, as provided by the common         law, may be applied in interpreting & understanding the agreement between the parties.