Disclaimer: The English language text below is
provided by the State Language Centre for information
only; it confers no rights and imposes no obligations
separate from those conferred or imposed by the
legislation formally adopted and published. Only the
latter is authentic. The original Latvian text uses
masculine pronouns in the singular. The State Language
Centre uses the principle of gender-neutral language in
its English translations. In addition, gender-specific
Latvian nouns have been translated as gender-neutral
terms, e.g. chairperson.
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Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
11 December 2008.
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
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The Saeima1 has adopted
and the President has proclaimed the following Law:
Law On Management of European
Union Structural Funds and the Cohesion Fund
Chapter I
General Provisions
Section 1. Terms Used in this
Law
The following terms are used in this Law:
1) Responsible Institution - the line ministry and the
State Chancellery, which implements all the functions of an
intermediate body or part of them in accordance with the
procedures specified by the Cabinet;
2) operational programme complement - the programming
document of the European Union Structural Funds and the Cohesion
Fund (hereinafter - European Union funds) of a national level,
which is subordinate to the relevant operational programme and
determines implementation of the measures and activities
indicated therein. The operational programme complement shall be
approved by the Cabinet;
3) activity of the European Union funds - aggregate of
the activities carried out in order to achieve the objectives and
indicators specified in planning documents;
4) applicant of a European Union fund project - a
direct or indirect State administrative institution, derived
public person, another State institution, as well as a natural
person, a legal person registered in the Republic of Latvia or an
association of such persons;
5) application of a European Union fund project - an
application (a filled-in form and annexes thereof) submitted by
the applicant of a European Union fund project in order to
receive the financing necessary for the project from the European
Union fund;
6) European Union fund project application selection
criteria - the determinant indicators, according to which the
applications of European Union fund projects are evaluated and a
decision regarding approval, conditional approval or rejection
thereof is taken;
7) European Union fund project - an application of a
European Union fund project, which complies with the selection
criteria of a project application and which is approved by the
institution involved in the management of the European Union
fund;
8) planning documents - a National Strategic Reference
Framework, an operational programme or an operational programme
complement;
9) Co-operation Institution - a State agency or the
Society Integration Fund, which implements part of the functions
of an intermediate body in accordance with the procedures
specified by the Cabinet.
[11 December 2008]
Section 2. Purpose of this Law
The purpose of this Law is to specify the management of
European Union funds in order to promote the efficient and
transparent introduction of European Union funds in Latvia, which
complies with the principles of financial management.
Section 3. Scope of Application of
this Law
(1) This Law determines the rights and obligations of
institutions involved in the management of European Union funds
and the final beneficiary of a European Union fund, as well as
the procedures for taking, contesting and appeal of decisions
taken by institutions involved in the management of European
Union funds.
(2) This Law shall apply to the management of European Union
funds in the planning period 2007-2013.
Section 4. Management of European
Union Funds
Management of European Union funds shall be the preparation,
harmonisation and approval of the necessary planning documents,
establishment of a management system of European Union funds,
development of the criteria for evaluation of project
applications of European Union funds, selection and approval of
project applications of European Union funds, implementation,
control, auditing, monitoring and evaluation of European Union
funds.
Section 5. Allocation of Financing
of European Union Funds
Submitting of an application of a European Union fund project
in accordance with this Law shall not create a duty for the
institution involved in the management of European Union funds to
grant financing to the applicant of the European Union fund
project .
Section 6. Selection of Applications
of European Union Fund Projects
Selection of applications of European Union fund projects may
be:
1) open - if an equal competition among applicants of
applications of European Union fund projects takes place for the
approval of the project application and granting of the financing
of the European Union fund; or
2) restricted - if the circle of applicants of European Union
fund projects who are invited to submit a project application is
previously known. In such case all applications of European Union
fund projects, which comply with the European Union fund projects
selection criteria, shall be approved and financed.
Section 7. Horizontal Policies
The Cabinet shall determine the institutions responsible for
the co-ordination of horizontal policies.
Chapter II
Provision of Management of European Union Funds
Section 8. Institutions and Persons
Involved in the Provision of Management of European Union
Funds
(1) Management of European Union funds shall be provided:
1) by the following institutions involved in the management of
European Union funds:
a) Managing Authority,
b) Paying Authority,
c) Audit Authority,
d) Certifying Authority,
e) Responsible Institution,
f) Co-operation Institution,
g) Monitoring Committee,
h) the Procurement Monitoring Bureau;
2) by the final beneficiary.
(2) In order to achieve the objective of this Law,
institutions involved in the management of European Union funds
shall issue internal regulatory enactments and co-operate with
other institutions in accordance with the procedures specified in
the State Administration Structure Law.
Section 9. Managing Authority,
Duties and Rights Thereof
(1) The Managing Authority has the following duties:
1) to ensure the management of European Union funds and
efficiency of implementation thereof;
2) to ensure the preparation of planning documents;
3) to ensure the execution of information, publicity and
communication measures of the management of European Union
funds;
4) to ensure the management of technical assistance of
European Union funds and efficiency of implementation
thereof;
5) to prepare a section regarding the investment of European
Union funds to the annual report on implementation of the State
reform programme;
6) to co-ordinate and submit an application of the major
project to the European Commission in accordance with the
provisions included in Council Regulation No. 1083/2006 of 11
July 2006 laying down general provisions on the European Regional
Development Fund, the European Social Fund and the Cohesion Fund
and repealing Regulation No. 1260/1999;
7) to ensure measures for the evaluation of the introduction
of European Union funds; and
8) to establish an information system of the management of
European Union funds for monitoring of the operational programme
and to ensure the accumulation of data related to European Union
funds therein.
(2) The Managing Authority has the following rights:
1) to propose to conduct and to conduct control of the
introduction and auditing of European Union funds; and
2) to request information, which is necessary for the
provision of the management of European Union funds, from
institutions involved in the management of European Union funds
and final beneficiaries.
(3) The functions of the Managing Authority shall be fulfilled
by the Ministry of Finance.
(4) The Ministry of Finance shall ensure that the functions,
which it fulfils as the Managing Authority in accordance with
this Law, are separated from the other functions thereof.
Section 10. Paying Authority, Duties
and Rights Thereof
(1) The Paying Authority has the following duties:
1) to make payments within the framework of the European Union
funds; and
2) to perform the financial accounting of payments.
(2) The Paying Authority has the right to request information,
which is necessary for the performance of the financial
accounting of payments, from institutions involved in the
management of European Union funds.
(3) The functions of the Paying Authority shall be performed
by the Treasury.
(4) The Treasury shall ensure that the functions, which it
fulfils as the Paying Authority in accordance with this Law, are
separated from the other functions thereof.
Section 11. Audit Authority and
Rights Thereof
(1) The Audit Authority has the right to request information,
which is necessary for the provision of control and audit of
European Union funds, from institutions involved in the
management of European Union funds and final beneficiaries.
(2) The functions of the Audit Authority shall be fulfilled by
the Ministry of Finance.
(3) The Ministry of Finance shall ensure that the functions,
which it fulfils as the Audit Authority in accordance with this
Law, are separated from the other functions thereof.
Section 12. Certifying Authority and
Rights Thereof
(1) The Certifying Authority has the following rights:
1) to conduct the control and audit of the introduction of
European Union funds, which is necessary for approval of the
expenditure declaration and payment applications;
2) to request information, which is necessary for the approval
of the expenditure declaration and payment applications, from
institutions involved in the management of European Union funds
and final beneficiaries.
(2) The functions of the Certifying Authority shall be
performed by the Treasury.
(3) The Treasury shall ensure that the functions, which it
fulfils as the Certifying Authority in accordance with this Law,
are separated from the other functions thereof.
Section 13. Duties and Rights of the
Responsible Institution and Co-operation Institution
(1) The Responsible Institution and the Co-operation
Institution have the following duties:
1) to participate in the development of planning
documents;
2) to draw up European Union funds selection criteria;
3) pursuant to planning documents to ensure the relevant
activities of European Union funds and the implementation,
monitoring and control of projects of European Union funds, to
analyse the problems in the implementation of the activities and
projects of European Union funds and to submit proposals
regarding improvement of implementation of the activities and
projects of European Union funds to the Managing Authority and
the Monitoring Committee;
4) to ensure the selection and appraisal of applications of
European Union fund projects;
5) taking into account the legal status of the applicant of a
European Union fund project, to determine the conditions for
implementation of the project of European Union funds to the
final beneficiary in accordance with the requirements of the
Cabinet;
6) to examine and to approve the payment request of the final
beneficiary and to prepare the expenditure declaration;
7) to provide information to society and to ensure publicity
in cases, which are related to the projects of European Union
funds;
8) to draw up a support programme and to submit it for initial
evaluation to the Ministry of Finance in accordance with the
procedures specified in the Law On Control of Aid for Commercial
Activity, if the measure included in the operational programme is
intended for aid for commercial activity;
9) in cases and in accordance with the procedures specified in
the Law On Control of Aid for Commercial Activity to submit an
application of the project of a European Union fund to the
Ministry of Finance for initial evaluation, if the project is
intended for aid for commercial activity; and
10) to use the information system of the management of
European Union funds for monitoring of the operational programme
and to accumulate data therein regarding applications of projects
of European Union funds and projects of European Union funds.
(2) The Responsible Institution and the Co-operation
Institution have the right to request information, which is
necessary for the provision of the implementation, monitoring and
control of projects of European Union funds, from institutions
involved in the management of European Union funds and final
beneficiaries.
Section 14. Determination of the
Responsible Institution and the Co-operation Institution and
Procedures for Co-operation Thereof
(1) The Responsible Institution and the Co-operation
Institution, as well as distribution of competence between them,
shall be determined by the Cabinet.
(2) The Responsible Institution, in fulfilling the duties
referred to in Section 13, Paragraph one of this Law, may
co-operate with several Co-operation Authorities.
(3) The duties referred to in Section 13, Paragraph one,
Clauses 1, 2 and 8 of this Law shall be fulfilled only by the
Responsible Institution.
(4) The Co-operation Institution, in fulfilling the duties
referred to in Paragraph one of this Section, is functionally
subordinate to the member of the Cabinet, to which the
institution responsible for fulfilment of the duties referred to
in Section 13, Paragraph one of this Law is subordinate.
(5) In order to fulfil the duties referred to in Section 13,
Paragraph one of this Law efficiently, the Responsible
Institution, in co-ordinating with an institutionally superior
institution of the Co-operation Institution, may issue internal
regulatory enactments binding to the Co-operation Institution in
relation to the fulfilment of tasks assigned thereto. If the
institutionally superior institution is the Cabinet, internal
regulatory enactment shall be issued without co-ordination with
it.
(6) The functions, which an institution fulfils as the
Responsible Institution or the Co-operation Institution, shall be
separated from the functions, which it fulfils as the final
beneficiary.
(7) The Head of the Responsible Institution shall be
determined by the Cabinet member, under the subordination of whom
is the direct administration authority, within the framework of
which the Responsible Institution has been established. In
determining the Head of the Responsible Institution, the
regulation that the Head of the relevant direct administration
authority may not hold the position of the Head of the
Responsible Institution shall be observed and the requirements of
other regulatory enactments shall be taken into account.
[11 December 2008]
Section 15. Final Beneficiary and
Duties Thereof
(1) A final beneficiary shall be a direct or indirect State
administrative institution, a derived public person, another
State institution, as well as a natural person, a legal person
registered in the Republic of Latvia or an association of such
persons, whose submitted application of a European Union fund
project is approved in accordance with the procedures specified
in this Law.
(2) A final beneficiary has the following duties:
1) to ensure implementation of the project of the European
Union fund in accordance with the conditions of the civil legal
contract - if the final beneficiary is a natural person, a legal
person registered in the Republic of Latvia or an association of
such persons;
2) to ensure implementation of the project of the European
Union fund in accordance with an agreement regarding introduction
of the project of the European Union fund - if the final
beneficiary is a direct or indirect State administrative
institution, a derived public person or another State
institution;
3) to ensure separate accounting for each project of the
European Union fund; and
4) to provide information regarding implementation of the
project of the European Union fund and to ensure the
representatives of the European Commission and institutions
involved in the management of European Union funds with access to
the originals of all documents related to the implementation of
the project of the European Union fund, as well as to the place
of implementation of the relevant project.
Section 16. Monitoring Committee
(1) The Monitoring Committee is a collegial institution
involved in the management of European Union funds, which
operates pursuant to bylaws approved by the Cabinet.
(2) The composition of the Monitoring Committee shall be
determined by the Cabinet.
(3) The Monitoring Committee shall take administrative
decisions in accordance with this Law and other regulatory
enactments regulating the management of European Union funds.
Section 17. Procurement Monitoring
Bureau, Duties and Rights Thereof
(1) The Procurement Monitoring Bureau has a duty to ensure
selective pre-examination of the procurement documentation and
the process of the procurement procedure of European Union
funds.
(2) The Procurement Monitoring Bureau has the right to request
information, which is necessary in order to ensure the selective
pre-examination of the procurement documentation and the process
of the procurement procedure of European Union funds, from the
institutions involved in the management of European Union funds
and the final beneficiaries.
Chapter III
Competence of the Cabinet
Section 18. Competence of the
Cabinet in Provision of Management of European Union Funds
In order to ensure the management of European Union funds, the
Cabinet shall determine:
1) the procedures, by which the institutions involved in the
management of European Union funds ensure the preparation of
planning documents and implementation of the European Union
funds, including the selective pre-examination of the procurement
documentation and the process of the procurement procedure;
2) the procedures for monitoring and evaluation of the
introduction of European Union funds;
3) the procedures for notification regarding non-conformities
detected in the introduction of European Union funds, the taking
of administrative decisions regarding utilisation of the
financing granted and recovering of non-conforming
expenditure;
4) the procedures, by which functions of the Audit Authority
are ensured in the management of European Union funds;
5) the procedures, by which the Managing Authority, the
Certifying Authority, the Co-operation Institution or the
Responsible Institution conducts inspection at the place of
implementation of the project financed by the European Union
fund;
6) the procedures, by which resources in the State budget are
intended for the implementation of projects co-financed by
European Union funds, as well as the procedures, by which
payments are made and expenditure declaration is prepared;
7) the procedures for the publication of information regarding
projects of European Union funds;
8) the procedures, by which publicity of European Union funds
and compliance with the requirements of visual identity are
ensured;
9) the procedures for the establishment and usage of the
information system for the management of European Union
funds;
10) the procedures, by which activities of a European Union
fund indicated in a complement of an operational programme are
implemented, the selection criteria of applications, the
requirements to an applicant of a project, the Responsible
Institution and the Co-operation Institution, distribution of the
competence between these institutions and the procedures for
co-operation, as well as the form of functional subordination of
the Responsible Institution and the Co-operation Institution are
determined;
11) the requirements for the establishment of the management
and control system of European Union funds; and
12) the procedures by which the information regarding the
application of value added tax within the framework of the
projects co-financed by the European Union Structural Funds and
the projects financed by the European Community Initiative EQUAL
shall be provided and checked and the decision regarding the
inclusion of value added tax in eligible costs of projects shall
be taken.
[11 December 2008]
Chapter IV
Decisions of the Responsible Institution and the Co-operation
Institution, Contesting and Appeal Thereof
Section 19. Decisions of the
Responsible Institution and the Co-operation Institution
(1) The head of the Responsible Institution or the
Co-operation Institution shall take a decision regarding the
approval, conditional approval or rejection of an application of
a European Union fund project, as well as a decision regarding
recovery of the financing granted.
(2) A decision regarding the approval of an application of a
European Union fund project shall be taken, if it complies with
the European Union fund projects selection criteria and financing
for the project implementation is available within the framework
of the selection stage of the European Union fund activity
project applications.
(3) A decision regarding the rejection of an application of a
European Union fund project shall be taken, if it does not comply
with selection criteria of applications of European Union fund
projects and elimination of non-compliance in accordance with
Paragraph five of this Section would affect an application of a
European Union fund project on the merits, as well as if an
application of a European Union fund project complies with
selection criteria of applications of European Union fund
projects, but the financing for the project implementation is not
available within the framework of the selection stage of the
European Union fund activity project applications.
(4) A decision regarding recovering of the granted financing
shall be taken, if the financing granted has been disbursed to
the final beneficiary, but it has not been used pursuant to the
requirements of regulatory enactments or conditions of a
contract.
(5) A decision regarding the conditional approval of an
application of a European Union fund project shall be taken, if
an applicant of a European Union fund project has to perform the
activities specified by the Responsible Institution or
Co-operation Institution in order to adequately prepare and
implement a European Union fund project. Conditions shall be
included in a decision and the fulfilment thereof shall be
controlled taking into account the Cabinet Regulations regarding
the relevant activity of a European Union fund. If any of the
conditions specified in the decision is not complied with, an
application of a European Union fund project shall be deemed as
rejected.
[11 December 2008]
Section 20. Types of Decisions of
the Responsible Institution and the Co-operation Institution
(1) The Responsible Institution or the Co-operation
Institution shall issue an administrative act or take an
administrative decision according to the legal status of the
applicant of the European Union fund project.
(2) If the applicant of the European Union fund project is a
natural person, a legal person registered in the Republic of
Latvia or an association of such persons, the decision of the
Responsible Institution and the Co-operation Institution shall be
the administrative act.
(3) If the applicant of the European Union fund project is a
direct or indirect State administrative institution, a derived
public person or another State institution, the decision of the
Responsible Institution and the Co-operation Institution shall be
an administrative decision; it may be contested in accordance
with the procedures specified in Law, but it may not be appealed
to a court.
(4) The administrative decision referred to in Paragraph three
of this Section shall be issued in writing, and it shall have the
following parts:
1) the name and address of the Responsible Institution or the
Co-operation Institution;
2) the addressee - the applicant of the European Union fund
project;
3) determination of facts;
4) justification of the administrative decision;
5) a separate list of the legal norms applied (indicating also
section, paragraph, clause or sub-clause of the regulatory
enactment);
6) the rights assigned to the addressee and the rights
rejected; and
7) the procedures for contesting a decision.
Section 21. Time Period for Taking
of a Decision
The Responsible Institution or the Co-operation Institution
shall take a decision regarding the approval, conditional
approval or rejection of an application of a European Union fund
project not later than within three months after the final date
for the submission of an application of a European Union fund
project.
[11 December 2008]
Section 22. Contesting and Appeal of
a Decision of the Responsible Institution and the Co-operation
Institution
(1) A applicant of the European Union fund project may contest
and appeal the decisions referred to in Section 19, Paragraph one
of this Law, observing the provisions of Section 20, Paragraph
three of this Law.
(2) A decision of the Co-operation Institution may be
contested to the institution responsible for the management of
the activity of the European Union fund. A decision of the
Responsible Institution regarding the contested decision of the
Co-operation Institution may be appealed to an administrative
court.
(3) A decision of the Responsible Institution may be contested
to the head of such direct administration institution, within the
framework of which the Responsible Institution is established.
The decision may not be contested to a member of the Cabinet. A
decision of the head of the direct administration institution
regarding the contested decision of the Responsible Institution
may be appealed to an administrative court, if the extra judicial
examination procedures specified in this Law have been
observed.
(31) An opinion regarding the fulfilment of a
condition included in a decision shall be contested and appealed
in accordance with such procedures and terms as a decision for
which the opinion regarding the fulfilment of a condition
included therein is prepared. The opinion regarding the
fulfilment of a condition included in a decision may also be
contested and appealed separately from the decision in which a
condition is included.
(4) Contesting or appeal of a decision shall not suspend
operation thereof.
[11 December 2008]
Chapter V
Procedures for Settling Disputes regarding Granted Financing of a
European Union Fund
Section 23. Procedures for Settling
of Disputes
A dispute regarding granted financing of a European Union fund
shall be settled in accordance with the procedures specified in
the Administrative Procedure Law, the Civil Procedure Law and
other regulatory enactments.
Section 24. Decision regarding
Recovering of the Granted Financing
A decision regarding recovering of the granted financing shall
be taken in the cases specified in Section 19, Paragraph four of
this Law and in accordance with the procedures specified in the
Administrative Procedure Law, if a final beneficiary may be the
addressee of the administrative act pursuant to Section 20,
Paragraph two of this Law and compulsory execution may be
directed to him of her.
Section 25. Settling of Disputes
According to Civil Legal Procedures
(1) If application of the procedures for recovering of the
financing specified in Section 24 of this Law is not useful, as
well as in cases when the provisions of Section 19, Paragraph
four and Section 24 of this Law are not applicable for recovering
of the granted financing, the granted financing shall be
recovered or a dispute regarding disbursement or continuation of
disbursement of financial resources shall be settled according to
civil legal procedures.
(2) If a final beneficiary is a direct or indirect State
administrative institution of the State, a derived public person
or another State institution, a dispute regarding disbursement or
continuation of disbursement of granted financial resources shall
be settled according to civil legal procedures, except for the
possibility to settle the disputed by judicial process.
Chapter VI
Final Provisions
Section 26. Updating of a Project
Application of a European Union Fund
An application of a European Union fund project shall not be
updated after the submission thereof until the taking of a
decision regarding approval, conditional approval or rejection
thereof.
[11 December 2008]
Section 27. Restrictions to the
Persons Involved in the Management of European Union Funds
Restrictions of commercial activity, earning of income and
combination of offices, as well as other restrictions and duties
of persons involved in the management of European Union funds
shall be specified in the Law On Prevention of Conflict of
Interest in Activities of Public Officials.
Section 28. Rights to Become
Acquainted with a File
(1) An applicant of a European Union fund project has the
right to get acquainted with the file of the application of the
European Union fund project submitted thereby at any stage of the
process.
(2) An applicant of a European Union fund project is entitled
to get acquainted with the evaluation materials of the
application of the European Union fund project submitted thereby
only after a decision regarding the approval, conditional
approval or rejection of the application of the European Union
fund project has come into effect.
(3) An applicant of a European Union fund project, in getting
acquainted with the file of application of the European Union
fund project thereof, shall not be disclosed information
regarding persons who evaluate or have evaluated the application
of the European Union fund project, except the members of
evaluation committee. The information regarding the members of
evaluation committee shall be available in the amount and
according to the procedures specified in this Law and other
regulatory enactments.
[11 December 2008]
Section 29. Freedom of
Information
(1) A file of an application of a European Union fund project
shall be restricted access information.
(2) The following information shall be regarded as generally
accessible:
1) the final beneficiary of a European Union fund financing
(the given name and surname of a natural person or the name and
legal address of a legal person);
2) the title of the European Union fund project;
3) the amount of financing of the European Union fund
granted;
4) the activity intended in the planning document, within the
framework of which the financing of the European Union fund has
been granted;
5) the place of implementation of the European Union fund
project; and
6) a summary regarding the activities to be carried out within
the framework of the project of the European Union fund.
(3) Information referred to in Paragraphs one and two of this
Section shall be available in the amount and according to the
procedures specified in the Freedom of Information Law after the
decision regarding approval, conditional approval or rejection of
an application of a project has come into effect.
(4) Information regarding persons who evaluate or have
evaluated the application of the European Union fund project
shall not be disclosed, except the members of evaluation
committee. The information regarding the members of evaluation
committee shall be available in the amount and according to the
procedures specified in this Law and other regulatory
enactments.
[11 December 2008]
Section 30. State Fee in Applying to
the Court
The Managing Authority, the Paying Authority, the Certifying
Authority, the Responsible Institution and the Co-operation
Institution shall not pay a State fee in applying to a court of
general jurisdiction regarding a contractual dispute.
Transitional Provisions
1. The Cabinet shall issue by 1 May 2007 the regulations
referred to in Section 18, Clauses 1, 2, 3, 4, 5, 6, 7, 8, 9 and
11 of this Law.
2. By 31 December 2010 the Cabinet shall issue the regulations
referred to in Section 18, Clause 10 of this Law.
2.1 The Cabinet shall, by 1 June 2010, issue the
regulations referred to in Section 18, Clause 12 of this Law.
3. Institutions involved in the management of European Union
funds and the final beneficiary shall store the originals of all
the documents related to implementation of the projects of
European Union funds until 31 December 2021.
[11 December 2008]
This Law shall come into force on 1 March 2007.
This Law has been adopted by the Saeima on 15 February
2007.
President V. Vīķe-Freiberga
Rīga, 23 February 2007
1 The Parliament of the Republic of
Latvia
Translation © 2009 Valsts valodas centrs (State
Language Centre)
