diff --git a/grade/report/grader/ajax_callbacks.php b/grade/report/grader/ajax_callbacks.php
index f0c7188ffff..82fc9eb49a4 100644
--- a/grade/report/grader/ajax_callbacks.php
+++ b/grade/report/grader/ajax_callbacks.php
@@ -81,13 +81,10 @@ switch ($action) {
                 // Warn if the grade is out of bounds.
                 if (is_null($finalgrade)) {
                     // ok
-                } else {
-                    $bounded = $grade_item->bounded_grade($finalgrade);
-                    if ($bounded > $finalgrade) {
-                        $errorstr = 'lessthanmin';
-                    } else if ($bounded < $finalgrade) {
-                        $errorstr = 'morethanmax';
-                    }
+                } else if ($finalgrade < $grade_item->grademin) {
+                    $errorstr = 'lessthanmin';
+                } else if ($finalgrade > $grade_item->grademax) {
+                    $errorstr = 'morethanmax';
                 }
 
                 if ($errorstr) {
diff --git a/grade/report/grader/lib.php b/grade/report/grader/lib.php
index 067453cbdef..2890159a44e 100644
--- a/grade/report/grader/lib.php
+++ b/grade/report/grader/lib.php
@@ -256,7 +256,7 @@ class grade_report_grader extends grade_report {
                         } else {
                             $bounded = $gradeitem->bounded_grade($finalgrade);
                             if ($bounded > $finalgrade) {
-                                $errorstr = 'lessthanmin';
+                            $errorstr = 'lessthanmin';
                             } else if ($bounded < $finalgrade) {
                                 $errorstr = 'morethanmax';
                             }
diff --git a/grade/tests/reportgrader_test.php b/grade/tests/reportgrader_test.php
deleted file mode 100644
index ffe284a3ade..00000000000
--- a/grade/tests/reportgrader_test.php
+++ /dev/null
@@ -1,115 +0,0 @@
-<?php
-// This file is part of Moodle - http://moodle.org/
-//
-// Moodle is free software: you can redistribute it and/or modify
-// it under the terms of the GNU General Public License as published by
-// the Free Software Foundation, either version 3 of the License, or
-// (at your option) any later version.
-//
-// Moodle is distributed in the hope that it will be useful,
-// but WITHOUT ANY WARRANTY; without even the implied warranty of
-// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
-// GNU General Public License for more details.
-//
-// You should have received a copy of the GNU General Public License
-// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
-
-/**
- * Unit tests for grade/report/user/lib.php.
- *
- * @package  core_grade
- * @category phpunit
- * @copyright 2012 Andrew Davis
- * @license  http://www.gnu.org/copyleft/gpl.html GNU Public License
- */
-
-defined('MOODLE_INTERNAL') || die();
-
-global $CFG;
-require_once($CFG->dirroot.'/grade/lib.php');
-require_once($CFG->dirroot.'/grade/report/grader/lib.php');
-
-/**
- * Tests grade_report_grader (the grader report)
- */
-class grade_report_graderlib_testcase extends advanced_testcase {
-
-    /**
-     * Tests grade_report_grader::process_data()
-     *
-     * process_data() processes submitted grade and feedback data
-     */
-    public function test_process_data() {
-        global $DB, $CFG;
-
-        $this->resetAfterTest(true);
-
-        $course = $this->getDataGenerator()->create_course();
-        $coursecontext = context_course::instance($course->id);
-
-        // Create and enrol a student.
-        $student = $this->getDataGenerator()->create_user(array('username' => 'Student Sam'));
-        $role = $DB->get_record('role', array('shortname' => 'student'), '*', MUST_EXIST);
-        $this->getDataGenerator()->enrol_user($student->id, $course->id, $role->id);
-
-        // Test with limited grades.
-        $CFG->unlimitedgrades = 0;
-
-        $forummax = 80;
-        $forum1 = $this->getDataGenerator()->create_module('forum', array('assessed' => 1, 'scale' => $forummax, 'course' => $course->id));
-        // Switch the stdClass instance for a grade item instance.
-        $forum1 = grade_item::fetch(array('itemtype' => 'mod', 'itemmodule' => 'forum', 'iteminstance' => $forum1->id, 'courseid' => $course->id));
-
-        $report = $this->create_report($course, $coursecontext);
-        $testgrade = 60.00;
-
-        $data = new stdClass();
-        $data->id = $course->id;
-        $data->report = 'grader';
-
-        $fieldname = 'grade_'.$student->id.'_'.$forum1->id;
-        $data->$fieldname = $testgrade;
-
-        $warnings = $report->process_data($data);
-        $this->assertEquals(count($warnings), 0);
-
-        $studentgrade = grade_grade::fetch(array('itemid' => $forum1->id, '' => $student->id));
-        $this->assertEquals($studentgrade->finalgrade, $testgrade);
-
-        // Grade above max. Should be pulled down to max.
-        $toobig = 200.00;
-        $data->$fieldname = $toobig;
-        $warnings = $report->process_data($data);
-        $this->assertEquals(count($warnings), 1);
-
-        $studentgrade = grade_grade::fetch(array('itemid' => $forum1->id, '' => $student->id));
-        $this->assertEquals($studentgrade->finalgrade, $forummax);
-
-        // Grade below min. Should be pulled up to min.
-        $toosmall = -10.00;
-        $data->$fieldname = $toosmall;
-        $warnings = $report->process_data($data);
-        $this->assertEquals(count($warnings), 1);
-
-        $studentgrade = grade_grade::fetch(array('itemid' => $forum1->id, '' => $student->id));
-        $this->assertEquals($studentgrade->finalgrade, 0);
-
-        // Test unlimited grades so we can give a student a grade about max.
-        $CFG->unlimitedgrades = 1;
-
-        $data->$fieldname = $toobig;
-        $warnings = $report->process_data($data);
-        $this->assertEquals(count($warnings), 0);
-
-        $studentgrade = grade_grade::fetch(array('itemid' => $forum1->id, '' => $student->id));
-        $this->assertEquals($studentgrade->finalgrade, $toobig);
-    }
-
-    private function create_report($course, $coursecontext) {
-
-        $gpr = new grade_plugin_return(array('type' => 'report', 'plugin'=>'grader', 'courseid' => $course->id));
-        $report = new grade_report_grader($course->id, $gpr, $coursecontext);
-
-        return $report;
-    }
-}