This paper describes the process by which the Humanities and Social Sciences Panel of the Australian Research Council (ARC) gives effect to the principle of funding 'research excellence' A member of this Panel for four years, the author provides an account of the ARC Research Allocation Policy, what criteria assessors are asked to use in judging each research grant application, and the qualify controls operating within the system. Peer review is identified as the central element in assessing the excellence of the research proposal, the possibility of a significant conceptual advance and the quality of the researcher(s). Particular comment is made about the success of educational researchers in obtaining ARC funds for research and implications for the future.