The Pell Grant Quality Control Study of 1982-83, the third stage of a contract with the Department of Education, was designed to identify program error rate, to measure the impact of increased validation activity, and to propose corrective actions to reduce the misallocation of program funds. A nationally representative sample of approximately 4,000 students was drawn from a stratified random sample of 317 participating institutions. The results showed that Pell Grant recipients in 1982-83 were granted $129, or 13 percent, more than they should have been. Both student and institutional error dropped between 1980-81 and 1982-83. The study confirmed that institutions complied with the revised validation requirements for the Pell Grant program in 1982-83, reflected in a $22 million reduction in the net Adjusted Gross Income error. The findings are presented in Volume 1 in terms of an overview of program-wide error, institutional error, student error, validation, and trends. In general, it is concluded that (1) the upward trend in error noted in 1980-81 has been turned around, and (2) the amount of overawards has decreased while the amount of underawards has increased. Appended are error definitions and equations. (Author/LB)