Ministry for Culture and Heritage - example of a Memorandum of Understanding with an NGO
A memorandum of understanding (MOU) covers a broader range of relationship issues than a standard funding contract. This example is used for a funding relationship between the Ministry for Culture and Heritage and a non-government organisation.
The Ministry for Culture and Heritage uses memorandums of understanding because strict purchase agreements don’t meet the needs of the different agencies it funds on an annual basis.
The MOU includes:
- the outcomes to be supported (the outputs to be provided, appropriate performance measures timeliness of delivery and cost of outputs would be included in a schedule to the MOU)
- any agreed commitments, for example, an agreement for the Board of the agency to review its performance and advise the Minister about the review’s conclusions and what action it intends to take
- sanctions for non-performance
- reporting requirements
- other matters relevant to the relationship between the Minister, Ministry and the NGO.
