What Is a Interdepartmental Letter of Agreement

An interdepartmental letter of agreement (ILOA) is a document that outlines the terms and conditions of a project or initiative that involves multiple departments within a company or organization. The purpose of an ILOA is to establish clear expectations, roles, and responsibilities among the involved parties before proceeding with the project.

When is an interdepartmental letter of agreement required?

An ILOA is required when a project or initiative impacts multiple departments within a company or organization and involves the allocation of resources, such as budget, staff, time, or equipment. It is also necessary when the project entails the transfer of data, information, or intellectual property across departments. The purpose of this document is to ensure that all parties involved are aware of their roles and responsibilities and that the project runs smoothly.

What should an interdepartmental letter of agreement include?

An ILOA should clearly outline the following:

1. Objectives: A detailed description of the project objectives and outcomes that all departments will work towards.

2. Scope: The specific aspects of the project, including milestones, timelines, and budget.

3. Roles and responsibilities: A clear and concise outline of the responsibilities of each department or team involved in the project.

4. Governance and decision-making: The decision-making process and the points of contact for each department involved in the project.

5. Risk management: A comprehensive risk assessment and mitigation plan should be included to identify and manage potential risks throughout the project.

6. Resources: A detailed list of resources required to complete the project, such as funding, equipment, and personnel.

7. Signature and date: The ILOA should be signed and dated by all parties involved, indicating their agreement with the terms and conditions outlined in the document.


An ILOA is a crucial document for any project that involves multiple departments within a company or organization. It establishes clear roles and responsibilities and ensures that all parties involved are aware of the project`s objectives, timelines, and budget. It is a valuable tool for communication and collaboration between departments and helps to ensure the success of the project. By following the guidelines outlined in this article, you can create a comprehensive and effective ILOA that will help your project run smoothly and achieve its goals.

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