A preliminary design for a quality control (QC) system for the Pell Grant Program is proposed, based on the needs of the Office of Student Financial Assistance (OSFA). The applicability of the general design for other student aid programs administered by OSFA is also considered. The following steps included in a strategic approach to QC system design and testing are discussed: conducting a functional analysis of the current delivery system and conceptualizing QC system modular components. QC requirements at the policy, management, and operations levels are analyzed for the Pell Grant program, and a preliminary modular design for a Pell Grant QC system is provided. This system is composed of a series of modular components that can be developed independently, in an incremental phased fashion. Ways that the QC system design can be expanded to include the Guaranteed Student Loan program and campus-based aid programs are also discussed. Also considered are general strategies for proceeding with the system design effort, including consideration of the policy mechanisms required to develop corrective actions designed to reduce error in the delivery system. Appended is an outline of the components of the annual assessment of payment error in the Pell Grant program. (SW)