POLICY STATEMENT

This policy gives instructions to PSU Community; departments /units / offices on how to prepare, review and store memoranda of understanding (MOU) and Memoranda of Agreement (MOA).

BACKGROUND & JUSTIFICATION

PSU shall have the power and duties to fulfill the following:

• Build links with the community, corporate sector and industry;
• Promote national and international linkages; and
• Work on internationalization in higher education and research

PURPOSE:

• To standardize the procedure of entering into MOU and MOA by the different departments/offices/units of PSU
• To make certain that the initiator of MOU or MOA implement Standard Operating Procedure (SOP)
• To manage the different steps and progress of MOU/MOA
• To standardize the reporting and recording of MOU/ MOA

DEFINITIONS:

A Memorandum of Understanding (MOU)

An agreement between two or more parties expressed in a formal document. It is not a legally binding document. The MOU can be considered as a starting point for negotiation and communicates the mutually accepted expectations of the parties involved. While not legally binding, the MOU can be the signal of an imminent contract. MOU’s do not require any party to commit funds or other resources. They do not create duties or legally enforceable liabilities or obligations for any signatory party.

The MOU should contain the following provisions:

• A listing of the parties to the MOU
• A purpose
• Terms and conditions
• Duration
• Signatures of the parties to the MOU; and any special provision as the case may be.

A memorandum of Agreement (MOA)

A legal document describing a business partnership between two parties that have agreed to cooperate to accomplish a certain objective or project. MOA’s are usually used when money is involved but not always the case. The MOA states the terms agreed upon and the steps to reach the agreed goal. The MOA is legally binding and enforceable type of contract.

The MOA should include the following:

• A listing of the parties involved
• A brief description of the scope of work
• Financial obligations of each party, if applicable
• The effective date of the agreement
• Contact address of each party involved
• Detailed description of responsibilities
• Payment schedule if applicable
• Duration and termination of the agreement
• Signatures of the parties’ representatives

RESPONSIBILITIES

• The initiator of the agreement is responsible for the coordination with the appropriate responsible offices, the President’s Office, Vice President’s offices, the Compliance & Legal Office, the Colleges, Departments, and any other responsible office for the creation of an MOU/MOA.
• The responsible offices, including the Compliance and Legal Office will assist with the appropriate process steps of each agreement and will have access to the electronic database for MOU/MOA and any other agreement storage of fully executed agreements in compliance with the procedure guidelines.

PROCEDURES

• All MOU/MOA should be reviewed first by their initial office, either a Department head, or director of research Center, or Director of Unit, or any other entity initiating the agreement.
• A process of review by the entities involved to the agreement and the appropriate office, unit, department and college is necessary to ensure that the requirements are met.
• All memoranda (MOU/MOA) should be reviewed at the last stage of process review by the Compliance and Legal Office prior to their submission to the final approval and execution.
• The signature authority of MOU/MOA lies to the appropriate office.
• The duration of the review is of 10 days on receiving the MOU or the MOA or any other type of agreement.

REFERENCES:

See the appendix: the steps to complete and approve an MOU/MOA and flowchart

APPENDIX