Note that neither MOUs nor MOAs can to be used independently to receive services or obligate funds beyond those separately authorized, and that any MOU or MOA with outside entities should be made in accordance with USACE District policies and authorizations. MOAs do not obligate any funds themselves, but they establish the terms for future service and cite one of the appropriate authorities to do so. MOAs often establish common legal terms that will be read into every reimbursable order that follows. The term commences xx date and terminates xx date. The MOA is prepared in advance of a support agreement/reimbursable order form that defines the support, basis for reimbursement, the billing and payment process, and other terms and conditions of the agreement. MOU Term The term of this MOU Agreement is the period within which the project responsibilities of this agreement shall be performed. Memorandum of Agreement (MOA) is a “conditional agreement” between two or more parties where the transfer of funds for services are anticipated. The MOU is nothing more than a formalized handshake. For example, two agencies that have similar goals may agree to work together to solve a problem or support each other’s activities by using an MOU. Thus, MOUs do not contemplate funds transfers and should usually include language that states something similar to: “This is not a funds obligating document by signing this agreement the parties are not bound to take any action or fund any initiative.” An MOU may be used to outline the operation of a program so that it functions a certain way. MOUs often state common goals and nothing more. Memorandum of Understanding (MOU) defines a “general area of understanding” within both parties' authorities and no transfer of funds for services is anticipated. MOAs, on the other hand, establish common legal terms that establish a “conditional agreement” where the transfer of funds for services are anticipated. MOUs tend to be used for simple common-cause agreements which are not legally binding.
These “agreements to agree” or umbrella agreements are often used interchangeably, although they are distinctly different. MOUs and MOAs are used to coordinate the Corps’ authorized activities with another entity. Memoranda of Understanding/Agreement (MOU/MOA)
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