Guidance for Creating a Memorandum of
Understanding (MOU)
As discussed in Strengthening Formal Systems through Collaboration (Module 5)
A memorandum of understanding (MOU) is a signed commitment by two or more organizations
about the nature of their collaboration, what they hope to achieve, and how desired results are to
be reached. Although not a legally binding document, a MOU concretely spells out any terms of
agreement in writing. It can also be used as a reference should any problems arise during the
collaboration.
Elements of an MOU
An MOU can provide details about a variety of aspects of collaborations. The most common
aspects are the length of the partnership (start and end dates of the relationship), the role of each
agency including the services that will be provided, the types of clients and how they will be
serviced by each agency, and the necessary resources and skills of all parties involved.
Additionally, an MOU describes the type of interagency communications (e.g., face to face
meetings, teleconferences), the expectations and responsibilities of the agencies, and how to
review performances and when to evaluate. Furthermore, an MOU includes potential financial
obligations (e.g., fees, date of payment), the referral practice between agencies, and
confidentiality and recordkeeping requirements.
There is no standard MOU format, although some organizations have standard guidelines for the
format of MOUs. If none of the organizations in the collaboration have set guidelines, there are
still common tips that can be helpful for creating an effective MOU. It is important to write
clearly and avoid jargon to make sure everyone involved clearly understands and is in agreement.
Any acronyms should also be clearly explained in the document. It is also important to identify
key personnel involved in the process, clearly define the hierarchy of this collaboration (e.g.,
who has jurisdiction, who has oversight, how will votes count), and to make sure the
relationships between agencies are fostered so that continued and future collaborations can occur.
An MOU will also set realistic expectations about goals and objectives for the collaboration, as
well as clearly setting dates for review and evaluation.
An MOU can specify various aspects of collaboration. The following are commonly used
sections in an MOU. A template of an MOU is also provided.
Introduction:
This section is focused on the reason for the collaboration (e.g., what is the benefit of this
collaboration to achieve a commonly agreed upon result? Why is it necessary? What product(s)
will come out of the collaborations? Who will be a part of the partnership?).
Purpose:
This section clearly delineates the purpose of the partnership (e.g., the services that will be
provided, expectations, and responsibilities of the agencies).
Scope:
This section clarifies the agencies that are involved in the agreement (e.g. the role of each
agency, the duration of the partnership, types of clients and how they will be served by each
agency)
Definitions:
This section describes the operational and technical terms associated with the contract (any
acronyms, community specific terms, or technical aspects).
Obligations and responsibilities:
This section outlines the obligations of this agreement (e.g., financial obligations, referral
practice between agencies, the type and schedule of interagency communications)
Oversight:
This section clarifies how oversight will occur within the new partnerships (e.g., the level of
commands, who and when to monitor performances, and confidentiality and recordkeeping
requirements)
SAMPLE MEMORANDUM OF UNDERSTANDING (MOU)
Between
Party A: Enter the full and official name of the party.
And
Party B:
Enter the full and official name of the other party.
This is an agreement between Party A, hereinafter called Enter a shortened name for Party A, and
Party B, hereinafter called Enter a shortened name for Party B.
I. PURPOSE & SCOPE
The purpose of this MOU is to clearly identify the roles and responsibilities of each party as
they relate to ... complete this sentence by describing the nature of the relationship between
the two parties. In other words, list the services to be provided and the roles of each agency.
II. LOCATIONS
The partnership’s activities described herein will occur at the sites below.
List the full and official name of each site; include city or town where site is
located.
III. BACKGROUND
A. Enter name for Party A: Describe what the agency does, skills, and resources it possess
B. Enter name for party B: Describe what the agency does, skills, and resources it possess
IV. OBLIGATIONS AND RESPONSIBILITIES UNDER THIS
MOU A. Enter name for Party A shall:
List and describe the duties and responsibilities of Party A.
B. Enter name for Party B shall:
List and describe the duties and responsibilities of Party B.
V. TERMS OF AGREEMENT/ UPDATES TO MOU
Describe the terms and conditions under which this agreement may be modified or
terminated by the parties.
VI. FUNDING
Describe financial obligations, including the reimbursement of funds between the parties and
the form that those reimbursements will take. Or enter "Not applicable"
VII. OTHER TERMS & CONDITIONS
Enter any other terms or conditions covered by this agreement such as oversight,
referrals between agencies, confidentiality, or enter "Not applicable" here.
VIII. EFFECTIVE DATE AND SIGNATURE
This MOU shall be effective upon the signature of authorized officials of Enter name for
Party A and Enter name for Party B. It shall be in force from Enter dates of partnership.
Both parties indicate agreement with this MOU by their signatures.
Signature Signature
Printed Name Printed Name
Date Date
References
Federal Communication Commission. (2012). "Writing Guide for a Memorandum of Understanding
(MOU)."Retrieved from http://www.fcc.gov/pshs/docs/clearinghouse/DHS-
MemorandumOfUnderstanding.pdf
Pennsylvania Nutrition Education Tracks. (2012). Retrieved from http://www.patracks.org/public/RFP2014.asp
Additional Resource on Memorandum of Understandings
Johnson, M.L., & Sterthous, L.M. (1982). A guide to memorandum of understanding negotiation and
development.
Aspe.hhs.gov. 1982. (April 29, 2011) Retrieved from http://aspe.hhs.gov/daltcp/reports/mouguide.htm
