An evaluation of existing and proposed mechanisms to ensure data accuracy for the Pell Grant program is reported, and recommendations for efficient detection of fraud and error in the program are offered. One study objective was to examine the existing system of pre-established criteria (PEC), which are validation criteria that select students on the basis of corrections they have made to their original applications. Additional objectives were to examine: the Error Prone Model (EPM) criteria used to select students on the basis of the responses on their application; PEC and EPM "splits," (recently developed criteria); and "Other Groups to Test," (additional criteria developed that are unrelated to PEC or EPM). Validation is an audit process in which selected eligible applicants must provide documentation confirming their application responses before they can receive a Pell Grant. Based on findings, 25 validation selection criteria were recommended for the 1982-1983 processing system. Nine of these criteria were from the EPM or variations of an EPM criterion, while 15 are PEC or variations of a PEC. The recommendations include only one criterion from the "Other Groups to Test." Information is included on technical issues, including file merging, sample selection, transaction selection, and variable preparation. (SW)