Policy Number:
Policy:
Date Adopted/Revised:
Next Review Date:
Responsible Office or Administrator:
References:
Internal Agreements Policy
Office of Administration & Finance
UM Policy 201.3 Facilities Use and Access
UM Policy 302.1.4 Property/Equipment -Use
DRAFT FOR CABINET REVIEW 7 8 15
Purpose
Provide guidance to the University to manage existing and future internal agreements (all
funding sources) and ensure internal agreements comply with appropriate timeframes,
authorizations, and enforcements by formalizing them as internal Memorandums of
Understanding (MOU).
Statement of Policy
The Office of Administration and Finance is responsible for the policy on internal agreements
for the University of Montana (UM) - Missoula, including Missoula College and Bitterroot
College. Authority and responsibility for maintaining, enforcing, and adjudicating internal
agreements rests with the unit heads and sector executives of the University. Internal
agreements are typically financial in nature and may be formal (in writing) or informal (verbal).
Currently, campus units enter into two types of internal agreements: 1) the exchange of
resources e.g., goods, services, equipment, or space; and 2) fund allocation, distribution, or
redistribution. This policy will guide the transition from informal internal agreements to formal
internal agreements written according to the parameters outlined in the following procedures
for establishing internal Memorandums of Understanding (MOUs). Additionally, this policy will
guide the execution of any future MOUs. If departments utilize informal/verbal agreements
there will be no recourse for disagreements and these verbal agreements will not be binding.
Transition
Internal agreements established prior to the adoption of this policy, and not conforming to the
procedures of this policy, will be void 90 days after the adoption of this policy, or at the end of
the current fiscal year, and must be renegotiated under the procedures of this policy.
[Link to Procedures]
Procedure: University Operating Policy No.
Date Adopted/Revised:
Next Review Date:
References:
______________________________________________________________________________
A. Applicability
a. These procedures apply to all formal internal agreements / Memorandums of
Understanding (MOUs) between two or more units of the University of Montana that are
intended to remain in force for more than one year or involve University assets or resources
valued at $10,000 or more. Agreements that terminate less than one year after the effective
date or that involve University assets or resources of less than $10,000 do not need to, but
may, comply with these procedures.
b. These procedures establish a record of the understanding and practice of the parties. They
are not sufficient to establish a formal legal contract.
c. These procedures may not be used for agreements regarding employment. All employment
agreements are governed by Human Resource Services policies and procedures.
d. These procedures may not be used for agreements regarding use of space that is governed
by the University of Montana Facilities Use and Access Policies and Procedures.
e. These procedures may only be used for agreements between units of the University of
Montana. Agreements involving any party outside the University of Montana must follow
procedures applicable to the type of agreement and may require additional review,
including review by the Office of Legal Counsel.
B. Definitions
a. “Department Head” or “Dean” means the head of an academic unit.
b. “Director” means the head of a non-academic unit.
c. “Unit Head” means the Dean, Department Head, or Director of a University unit.
d. “Sector Executive” means a member of the President’s Cabinet.
e. “Internal agreement” or “agreement” means a cooperative arrangement between two or
more units of the University of Montana regarding use of space, services, or equipment and
fund allocation, distribution, or redistribution.
f. “Memorandum of Understanding” or “MOU” means the formal written agreement.
g. “Year” means fiscal year (July 1st through June 30th).
C. Forms of Agreement
a. All internal agreements that terminate more than one year after the effective date or that
involve University assets or resources of $10,000 or more must be in writing as
Memorandums of Understanding (MOUs) and must contain the following provisions:
i. Identification of units that are parties to the agreement;
ii. Identification of and contact information for the following:
1. persons responsible for implementing the agreement;
2. persons responsible for reviewing, amending, renegotiating, and resolving
disputes related to the agreement (if different than the persons
implementing the agreement);
iii. Purpose of the agreement;
iv. Terms of the agreement;
v. Effective date;
vi. Termination date;
vii. Authorized signatures from all parties.
b. All internal agreements are required to be in writing and must contain the following
provisions:
i. This Memorandum of Understanding (MOU) is intended only to set forth the
general understanding of the parties with respect to the subject matter herein, and
does not, and is not intended to contractually bind the parties.
ii. This MOU sets forth the complete understanding of the parties. It supersedes all
prior agreements and negotiations, oral or written, with respect to this subject
matter.
iii. The President’s decisions supersede all internal agreements / MOUs and the
President has the right to terminate any agreement if believed to be in the best
interest of the University.
c. Internal agreements made using the Internal Agreements Memorandum of Understanding
form will be deemed compliant with this section if the form is complete.
D. Approvals
a. All Memorandums of Understanding (MOUs) must be approved by the Unit Head and Sector
Executive.
b. University of Montana Office of Legal Counsel must approve all MOUs created in a format
other than the Internal Agreement Memorandum of Understanding Form provided herein.
E. Duration
The initial term of all MOUs must not exceed three years. Upon mutual written consent, the parties may
extend the term of the agreement for up to two (2) two-year terms, not to exceed a period of seven
years. A new MOU must be issued to extend the agreement beyond the seven year period.
F. Amendment
Any MOU may be amended any time before the termination date by approval of all parties.
Amendments must be in writing and must be approved in the same manner as the original agreement.
G. Record Retention
All parties must retain a written, signed copy of the MOU in either print or digital format for the
duration of the agreement. Additionally, a signed copy of the MOU in either print or digital format must
be sent to the Office of the Vice President for Administration & Finance. After termination of the
agreement, copies of the MOU must be retained in compliance with the Montana University System
Record Retention Policy (forthcoming), or, in the absence of a retention policy, for a period of 7 years
from the date of termination.
UM Operating Policy No. xxxxxx
Internal Agreements MOU Form
[effective date of policy]
Memorandum of Understanding between
____________________________________
and
____________________________________
Regarding
____________________________________________________________
PURPOSE
[Set forth the purpose of the agreement here].
TERMS
[Set forth the terms of the agreement here].
RESPONSIBLE PARTIES
A. The following persons are responsible for implementing this Memorandum of Understanding:
[Unit A]
Name, Title
Address
Email
Phone
[Unit B]
Name, Title
Address
Email
Phone
B. The following persons are authorized to review, amend, renegotiate, and resolve disputes related to
this Memorandum of Understanding (this section may be left blank if the persons responsible for
implementation are Unit Heads).
[Unit A]
Name, Title
Address
Email
Phone
[Unit B]
Name, Title
Address
Email
Phone
EFFECTIVE DATES
The Memorandum of Understanding will be in effect on [date and time] and terminate on [date and
time].
AGREEMENT
This Memorandum of Understanding (MOU) is intended only to set forth the general understanding of
the parties with respect to the subject matter herein, and does not, and is not intended to contractually
bind the parties. This MOU sets forth the complete understanding of the parties. It supersedes all prior
agreements and negotiations, oral or written, with respect to this subject matter. The President’s
decisions supersede all internal agreements / MOUs and the President has the right to terminate any
agreement if believed to be in the best interest of the University.
SIGNATURES
UNIT HEAD SIGNATURES
_____________________________________
Signature
_____________________________________
Signature
______________________________________
Print Name
_____________________________________
Print Name
_____________________________________
Date
_____________________________________
Date
SECTOR EXECUTIVE SIGNATURES
_____________________________________
Signature
_____________________________________
Signature
______________________________________
Print Name
_____________________________________
Print Name
_____________________________________
Date
_____________________________________
Date
FIRST EXTENSION
By mutual agreement of the parties, this memorandum of understanding is extended to ____________.
UNIT HEAD SIGNATURES
_____________________________________
Signature
_____________________________________
Signature
______________________________________
Print Name
_____________________________________
Print Name
_____________________________________
Date
_____________________________________
Date
SECTOR EXECUTIVE SIGNATURES
_____________________________________
Signature
_____________________________________
Signature
______________________________________
Print Name
_____________________________________
Print Name
_____________________________________
Date
_____________________________________
Date
SECOND EXTENSION
By mutual agreement of the parties, this memorandum of understanding is extended to_____________.
UNIT HEAD SIGNATURES
_____________________________________
Signature
_____________________________________
Signature
______________________________________
Print Name
_____________________________________
Print Name
_____________________________________
Date
_____________________________________
Date
SECTOR EXECUTIVE SIGNATURES
_____________________________________
Signature
_____________________________________
Signature
______________________________________
Print Name
_____________________________________
Print Name
_____________________________________
Date
_____________________________________
Date