The purpose of this Law is to ensure the efficient and transparent implementation of the European Union funds in Latvia in accordance with the principles of sound financial management. The Law prescribes the rights and obligations of institutions involved in the management of European Union funds and the beneficiary, the procedures for taking, contesting and appeal of decisions taken by the involved institutions, and also the amount of the State budget co-funding rate and conditions for planning of overcommitments. 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, implementation of financial instruments and the fund of funds, development of the project application evaluation criteria, selection of project applications, control, auditing, monitoring and evaluation of a management system of European Union funds and projects, certification of expenditure made within the projects, development and maintenance of the information system for the management of European Union funds.