However, the guidelines emphasise the importance of a CRC having a strong, independent board of management, with a Chief Executive officer empowered to manage the resources of the CRC to achieve its objectives. Each centre is established by a joint venture Centre Agreement binding all the participants, and a Commonwealth Agreement between each participant and the Commonwealth. Agreements, including funding, generally run for seven years. Agreements require CRCs to provide quarterly reporting of expenditure to draw down program funds. First year visits, generally timed at about six months into the first year of operation, ensure that the management framework agreed in the contracts is in place.
Performance is monitored through annual reports and a process of second and fifth year reviews.
Second and fifth year reviews are very rigorous, and are carried out by independent expert panels. They assess the performance of the CRC against the evaluation criteria specified in the guidelines. The outcomes of the reviews are in turn reviewed the CRC Committee, which advises the Minister on whether funding for individual CRCs should be continued. The Committee will frequently make recommendations to the CRC itself, aimed addressing management issues identified by the review panels. This independent assessment process distinguishes the CRC Program from general research funding and operational programs.