Prince Sultan University PSU
Compliance and Policies Office
Process of Approval of MOU & MOA

Policy Code: COP-010
Policy Name: Process of Approval of MOU & MOA
Handler: Compliance & Legal Office
Date Created: 20 November 2022
Date of Current Review: N/A
Approved by: PSU University President
Date of Approval: N/A


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).


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


  • 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


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


  • 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.


  • 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.


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


Steps to complete and approve a Memorandum of Understanding (MOU) & a Memorandum of Agreement (MOA)

Basic MOU Components

Introduction A description of the project or program & identification of the parties involved
Purpose What do the parties wish to achieve
Scope A description of a full extent of the project/program
Parties to the agreement Who are the parties involved and their detailed contact information
Responsibilities Expected contributions and obligations of the parties
Other provisions Describe how to handle conflict of interest, to protect data and how to resolve conflicts

Non-disclosure terms
  • How to administer the MOU: identify the signatories and their coordinators if applicable.
  • How to change or amend the MOU
Terms of review When and how the review will happen
Time frame The time duration of the agreement. The exact time period of the project/program should be specified with both start and end dates.
Signature While an MOU is not necessarily a legally binding contract, the signature section is still important. Each party should keep a copy of the fully signed MOU for his records

Basic MOA Components

Names of parties involved in the agreement Who are the parties involved and their detailed contact informatio
Purpose of the agreement What do the parties to the agreement wish to achieve
Scope A description of a full extent of the project/program
Financial obligation if applicable Details of financial obligations of the parties. For instance; the per centage of financial contribution by the parties.
Non-disclosure terms and conditions Details of information, extend of sharing of information or confidentiality that must be observed by parties to the agreement.
Effective date of agreement To state the date of the commencement of the agreement
Duration To state clearly the duration of the agreement, when it starts and when it ends.
Termination Modes of termination of the agreement as mutually agree by the parties.
Disclaimer If there are any disclaimers that should be mentioned in the MOA, a separate section should be included to outline them. It would be advisable to note that a clear disclaimer clause may be inserted.
Key contacts The key person that shall be the main person for correspondence must clearly be provided in the agreement.
Signature of the parties The signature is an important section in a MOA. Each party or its representative should keep a copy of the fully signed MOU for his records.

Steps to complete and approve a memorandum of Understanding (MOU) or a memorandum of Agreement (MOA)

Step 1 Identify the parties to the agreement
Who will sign the MOU or MOA and who will be working cooperatively. This may entail any party involved in completing the agreement.
Step 2 Draft the MOU or MOA
It would be better to choose one party responsible for drafting the Understanding or Agreement. The language will be in English or Arabic or both languages.
Step 3 Check if there are other agreements
With the proposed partner either national or international.
Step 4 Discuss the agreement initiative
Discussion with the chair, Director or Dean and check the existing policies.
Step 5 Send the MOU or the MOA for review
The review will be conducted first by the parties involved (the 1st and the other parties) to ensure that there is an understanding of what is expected from them to ensure a good implementation of the terms of the Understanding or Agreement.
Step 6 Submit the draft of the agreement to the: This is for review and feedback by the Compliance & Legal Office. May include any attachment or any additional information that would be helpful to the reviewers.
Step 7 Editing of the agreement
The Compliance & Legal Office may request editing of the agreement.
Step 8 Return of the draft to the agreement initiators from PSU
The Compliance & Legal Office will in turn send it to the other partners for review.
Step 9 Approval of the draft
Following approval of the draft, the institutional authorities mentioned in the agreement print and sign the agreement. The final draft of the agreement will be printed and signed.
Step 10 Original agreement
Signed copies in PDF or word will be considered originals if the signatures appear on a single document. One copy will remain with PSU and the other will be with the partner institution.
Step 11 The final completed MOU or MOA shall be uploaded in: