UACES Facebook C.E.S.P. 3-42: Memorandums of Agreement/Interagency Agreements/Contracts

 

Program Management

C.E.S.P. 3-42: Memorandums of Agreement/Interagency Agreements/Contracts

Date Revised: 2-14-2003
Supersedes: 4-23-2001

Summary: Establishes guidelines for Memorandums of Agreement, Interagency Agreements and Contracts.

Memorandums of Agreements are contracts between two campuses of the University of Arkansas System.  While no standard contract form exists, they should include the following terms and conditions:

• Description of the services to be rendered

• Date(s) that the services will be rendered

• Name(s) of the person(s)/unit and campus who will be rendering the services

• Dollar amount for the services, including a schedule of payments, and

• Responsibilities of each of the parties

Memorandums of Agreement (M.O.A.'s) must be reviewed and approved by the Associate Vice President for Agriculture - Extension as delegated by the Vice President for Agriculture on April 2, 2002.  M.O.A.'s which exceed $250,000, individually or in total, also require the signature of the Vice President for Agriculture and the Vice President for Finance and Administration.  They do not require review by Legislative council and legal review by the U.A. General Counsel’s office is not required if the agreement is between campuses, divisions or units of the University System.  Legal review is required for M.O.A.'s with any entity outside the University System.

Memorandums of Agreement are drafted by the faculty member serving as principal investigator or program director for the project and sent to Financial Services.  Financial Services will forward the M.O.A.'s to the Associate Director for Finance and Administration for submission to the Associate Vice President for Agriculture – Extension after appropriate signatures from other campuses are obtained.  Upon receipt of fully executed Memorandums of Agreement, Financial Services will send a copy to the specialist or agent responsible for the project and one copy to the other campus of the University.  Extension’s Financial Services will also maintain at least one copy.

Interagency Agreements

Interagency Agreements are similar to Memorandums of Agreement, but are used when the other governmental entity is not a part of the University of Arkansas System.  They also do not require review by Legislative Council but do require review by the U.A. General Counsel.  As with Memorandums of Agreement and Contracts, Interagency Agreements should be drafted by the specialist or agent responsible for the special project and sent to Financial Services.  Financial Services will obtain the appropriate signatures from the other entity and forward the Interagency Agreements to the Associate Director for Finance and Administration.  The Associate Director for Finance and Administration will submit Interagency Agreements for legal review and, once approved by legal, to the Associate Vice President for Agriculture - Extension for execution.  The appropriate name for the organization in the agreement is either "University of Arkansas - Cooperative Extension Service" or "Board of Trustees of the University of Arkansas - Cooperative Extension Service".

Upon receipt of fully executed Interagency Agreement, Financial Services will send a copy to the Principal Investigator responsible for the project and one copy to the other governmental entity.  At least one copy will also be maintained in the Financial Services office.

Contracts (Refer to University Wide Administrative Memoranda 300.1)

The authority to review, approve, and sign applications, proposals or contracts for the Division of Agriculture is delegated from the President of the University to the Vice President for Agriculture or his designee.  As of April 2, 2002, the Vice President for Agriculture delegated certain review and signature authority to the Associate Vice President for Agriculture – Extension.  

Contracts for Which Authority will not be Delegated.  Authority will not be delegated for the following contracts and must be approved by the Vice President for Agriculture and the Vice President for Finance and Administration:

(1) a commitment to build or renovate a facility (which shall not include maintenance or repairs to facilities which cost less than $30,000);

(2)  a commitment to initiate or expand an academic program;

(3)  a commitment to continue expenditures of University funds beyond the term of the contract;

(4) a contract, the amount of which exceeds $250,000 individually or $250,000 in the aggregate when involving connected transactions;

(5)contracts or other instruments affecting title to real estate such as deeds, easements, rights of way and leases unless specific authority is given elsewhere in this policy or in other Administrative Memoranda or Board Policies (e.g. lease and rental agreements for University-owned housing and dormitories and the authority to contract to purchase property).

Special Procedures for Professional/Consultant Services. 

(1)Contracts for professional or consultant services may be executed by the Associate Vice President for Agriculture  - Extension to whom contracting authority has been delegated subject to the same limitations and restrictions applicable to any other contract.  Contracts for professional/consultant services less than $25,000 on the standard state form may, in the discretion of the Associate Vice President for Agriculture - Extension, be executed without further legal review.  However, if a contract for professional or consultant services less than $25,000 has attachments or incorporates other documents by reference, the contract together with all the attachments and documents incorporated by reference and a completed Legal Review Form (see Attachment A) shall be sent to Financial Services.  Financial Services will submit these documents to the Associate Director for Finance and Administration.  The Associate Director for Finance and Administration will fax the completed form, contract and attachments to the General Counsel’s office for the required legal review prior to execution by the Associate Vice President for Agriculture - Extension. 

(2) Contracts that exceed $25,000 but are less than $250,000 require review by the Arkansas Legislative Council and must receive approval in writing from the Vice President for Finance and Administration prior to execution.  Written approval may be documented on the Legal Review Form (see Attachment A –1).  Submit a copy of the contract and any documents incorporated by reference, along with the appropriate Legal Review Form, to Financial Services.  Financial Services will forward the contract to the Associate Director for Finance and Administration who will then fax or deliver the contract documents to the General Counsel and the Vice President for Finance.

The Vice President for Agriculture and the Vice President for Finance and Administration must sign any contract that exceeds $250,000 or any contract for which authority has not been delegated.  Submit a copy of the contract and any documents incorporated by reference, along with the appropriate Legal Review Form to Financial Services.  Financial Services will forward to the Associate Director for Finance.  After the contract is reviewed by the Associate Vice President for Agriculture – Extension, the Associate Director for Finance and Administration will fax or deliver the contract documents to the General Counsel, who then will forward them to the Vice President for Finance and the Vice President for Agriculture for approvals.

(3) Placing professional and consultant services contracts on the agenda of the Legislative Council for its review, and appearance at meetings of the Legislative Council or other appropriate committees of the Legislature reviewing such contracts, shall be the responsibility of the Associate Vice President for Agriculture – Extension or his designee.

Agreements should include, but not be limited to, the following:

• A statement of the work to be conducted including specific responsibility of each party

• The name or position of the faculty or staff member directly responsible for the program

• The amount and terms of payment

• The amount of indirect costs; and

• A provision for progress and final reports

All contracts, which include a charge for indirect costs, should submit a copy of the approved negotiated rate agreement.  This is needed to support the amount of indirect cost requested and to substantiate the costs in the case of an audit.

Research and Sponsored Programs

All contracts or grants resulting from applications or proposals for sponsored programs are treated as contracts and should follow the same guidelines for approval, signature and legal review. 

The appropriate name for the organization in the contract is either "University of Arkansas - Cooperative Extension Service" or "Board of Trustees of the University of Arkansas - Cooperative Extension Service".  After legal review, contracts, memorandums of agreement, and other legal instruments relating to sponsored programs will be executed by the Associate Vice President for Agriculture – Extension.

Upon receipt of fully executed Contract, the Financial Services will send a copy to the Project Investigator responsible for the project, and one copy to the other party.  At least one copy will be maintained in Extension Financial Services. 

Many federal funding agencies require sub-recipients to sign certifications similar to those included in the grant application - example: Debarment, Suspension, etc.  These should be completed, signed and dated by the sub-recipient and returned to Financial Services to be maintained in the official files.

State Building Services (S.B.S.) Lease Agreements

Lease agreements through State Building Services must be reviewed and approved by the Associate Director for Finance who will submit to the Associate Vice President for Agriculture – Extension for review and approval.   S.B.S. leases require review by the U.A. General Counsel’s office and must be signed by the Vice President for Finance and Administration at the System office. 

Monitoring of Memorandums of Agreement, Interagency Agreements, and Contracts

The University of Arkansas Cooperative Extension Service is ultimately responsible for satisfying the terms of all memoranda, agreements and contracts.  The Principal Investigator is charged with the responsibility on behalf of the organization.   The Principal Investigator is specifically responsible for meeting all programmatic objectives, managing personnel assigned to the project, managing the budget, initiating all necessary paperwork needed to ensure proper documentation of expenditures, and completing all reports on time.

Legislative Peer Review & Legislative Council Review

Any interagency contracts subject to Legislative Peer Review will require the Principal Investigator or his/her designee to represent Cooperative Extension before the subcommittee where the contract will be reviewed.

All Personal Services Contracts, which exceed $25,000 require review by the Review Committee of the Arkansas Legislative Council and must be approved by the Vice President for Finance and Administration prior to execution.  Contracts should also receive legal review from the U.A. System legal staff.

Attachment A
Attachment A-1