This Sample Memorandum of Understanding (MOU) and accompanying cost allocation methodologies for hypothetical local areas may be used as a reference guide or toolkit when developing your own MOU, including your one-stop operating budget, Infrastructure Funding Agreement (IFA), and cost allocation methodologies, pursuant to the requirements of section 121 of WIOA, its implementing regulations at 20 CFR part 678 and 34 CFR parts 361 and 463, and the relevant guidance.

This requirement is further described in the Workforce Innovation and Opportunity Act; Joint Rule for Unified and Combined State Plans, Performance Accountability, and the One-Stop System Joint Provisions: Final Rule at 20 CFR 678.500, 34 CFR 361.500, and 34 CFR 463.500.

121(h), its implementing regulations, and the Federal Cost Principles contained in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) at 2 CFR part 200.

This is a Sample MOU that includes actual portions of local MOUs, one stop operating budgets, and Infrastructure Funding Agreements (IFAs) that have been developed thus far. 


It is important to note that the local information contained in this sample MOU and cost allocation methodologies hypothetical and should be adapted to meet the particular circumstances in your local area. Use of the local hypothetical language in this document does not ensure compliance with WIOA and cannot substitute for developing these documents based on careful review of WIOA, its implementing regulations and guidance, and local conditions.

This sample MOU and cost allocation methodologies should not replace the local negotiations that should occur or supplant any State laws that apply in any particular State.  States and local areas are not required to develop an MOU that uses the same format of this sample because there are many other ways to develop a MOU.

Anyone interested in the original Excel versions of the MOU worksheets should contact Deborah Strama at


Contributor(s): Campbell, Lekesha; Castaneda, Chanel; Strama, Deborah; Harris, Charlotte; McManus, Craig; Pope, Christopher; Shoholm, Jacqui; et al. 

Funding Source: U.S. Department of Labor, Employment and Training Administration 

Resource Availability: All of the information contained in this Toolkit is in the public domain and available for sharing, reproduction, and distribution, but may not be reproduced or distributed for a fee.