diff --git a/api/src/main/java/ca/bc/gov/educ/api/graduation/service/GraduationService.java b/api/src/main/java/ca/bc/gov/educ/api/graduation/service/GraduationService.java
index be133af9..eee950dd 100644
--- a/api/src/main/java/ca/bc/gov/educ/api/graduation/service/GraduationService.java
+++ b/api/src/main/java/ca/bc/gov/educ/api/graduation/service/GraduationService.java
@@ -384,13 +384,13 @@ private List<Student> processStudentList(List<GraduationStudentRecord> gradStudL
                 gradData.setGraduationDate(gsr.getProgramCompletionDate() != null ? EducGraduationApiUtils.parsingTraxDateLocalDate(gsr.getProgramCompletionDate()) : null);
                 gradData.setHonorsFlag(gsr.getHonoursStanding() != null && gsr.getHonoursStanding().equalsIgnoreCase("Y"));
                 std.setGraduationData(gradData);
-                std.setNonGradReasons(getNonGradReasons(gsr.getNonGradReasons()));
+                std.setNonGradReasons(getNonGradReasons(gsr.getProgram(), gsr.getNonGradReasons()));
                 stdPrjList.add(std);
             } else {
                 std.setGraduationData(new ca.bc.gov.educ.api.graduation.model.report.GraduationData());
                 if (gsr.getStudentProjectedGradData() != null) {
                     ProjectedRunClob projectedClob = (ProjectedRunClob)jsonTransformer.unmarshall(gsr.getStudentProjectedGradData(), ProjectedRunClob.class);
-                    std.setNonGradReasons(getNonGradReasons(projectedClob.getNonGradReasons()));
+                    std.setNonGradReasons(getNonGradReasons(gsr.getProgram(), projectedClob.getNonGradReasons()));
                     if (!projectedClob.isGraduated())
                         stdPrjList.add(std);
                 }
@@ -399,7 +399,8 @@ private List<Student> processStudentList(List<GraduationStudentRecord> gradStudL
         return stdPrjList;
     }
 
-    private List<NonGradReason> getNonGradReasons(List<GradRequirement> nonGradReasons) {
+    private List<NonGradReason> getNonGradReasons(String gradProgramCode, List<GradRequirement> nonGradReasons) {
+        nonGradReasons.removeIf(a -> "506".equalsIgnoreCase(a.getTranscriptRule()) && (StringUtils.isNotBlank(gradProgramCode) && gradProgramCode.contains("1950")));
         List<NonGradReason> nList = new ArrayList<>();
         if (nonGradReasons != null) {
             for (GradRequirement gR : nonGradReasons) {
diff --git a/api/src/main/java/ca/bc/gov/educ/api/graduation/service/ReportService.java b/api/src/main/java/ca/bc/gov/educ/api/graduation/service/ReportService.java
index e8ac5eed..4fa141e1 100644
--- a/api/src/main/java/ca/bc/gov/educ/api/graduation/service/ReportService.java
+++ b/api/src/main/java/ca/bc/gov/educ/api/graduation/service/ReportService.java
@@ -278,6 +278,7 @@ private List<NonGradReason> getNonGradReasons(String gradProgramCode, List<ca.bc
                 populateTraxReqCodesMap(programReqCodes, traxReqCodes);
             }
             nonGradReasons.removeIf(a -> applyFilters && "505".equalsIgnoreCase(a.getTranscriptRule()) && (StringUtils.isNotBlank(gradProgramCode) && gradProgramCode.contains("1950")));
+            nonGradReasons.removeIf(a -> "506".equalsIgnoreCase(a.getTranscriptRule()) && (StringUtils.isNotBlank(gradProgramCode) && gradProgramCode.contains("1950")));
             for (ca.bc.gov.educ.api.graduation.model.dto.GradRequirement gR : nonGradReasons) {
                 String code = xml ? traxReqCodes.get(gR.getRule()) : gR.getTranscriptRule();
                 NonGradReason obj = new NonGradReason();
@@ -1269,14 +1270,14 @@ private List<OptionalProgram> getOptionalProgramAchvReport(String gradProgramCod
             op.setHasRequirementMet(" Check with School");
             if (existingData != null && existingData.getOptionalRequirementsMet() != null) {
                 op.setHasRequirementMet("The Following Requirements Are Met");
-                op.setRequirementMet(getRequirementsMetAchvReport(existingData.getOptionalRequirementsMet(), existingData.getOptionalStudentCourses(), op.getNonGradReasons()));
+                op.setRequirementMet(getRequirementsMetAchvReport(gradProgramCode, existingData.getOptionalRequirementsMet(), existingData.getOptionalStudentCourses(), op.getNonGradReasons()));
             }
             opList.add(op);
         }
         return opList;
     }
 
-    private List<GradRequirement> getRequirementsMetAchvReport(List<ca.bc.gov.educ.api.graduation.model.dto.GradRequirement> optionalRequirementsMet, StudentCourses optionalStudentCourses, List<NonGradReason> nonGradReasons) {
+    private List<GradRequirement> getRequirementsMetAchvReport(String gradProgramCode, List<ca.bc.gov.educ.api.graduation.model.dto.GradRequirement> optionalRequirementsMet, StudentCourses optionalStudentCourses, List<NonGradReason> nonGradReasons) {
         List<GradRequirement> grList = new ArrayList<>();
         for (ca.bc.gov.educ.api.graduation.model.dto.GradRequirement gr : optionalRequirementsMet) {
             if (!gr.isProjected()) {
@@ -1306,6 +1307,7 @@ private List<GradRequirement> getRequirementsMetAchvReport(List<ca.bc.gov.educ.a
                 nonGradReasons.add(obj);
             }
         }
+        nonGradReasons.removeIf(a -> "506".equalsIgnoreCase(a.getCode()) && (StringUtils.isNotBlank(gradProgramCode) && gradProgramCode.contains("1950")));
         return grList;
     }
 
diff --git a/api/src/test/java/ca/bc/gov/educ/api/graduation/service/GraduationServiceTest.java b/api/src/test/java/ca/bc/gov/educ/api/graduation/service/GraduationServiceTest.java
index 1d475cb4..13c345a0 100644
--- a/api/src/test/java/ca/bc/gov/educ/api/graduation/service/GraduationServiceTest.java
+++ b/api/src/test/java/ca/bc/gov/educ/api/graduation/service/GraduationServiceTest.java
@@ -2030,7 +2030,7 @@ public void testCreateAndStoreSchoolReports() {
 		Mockito.when(gradStatusService.getStudentListByMinCode(mincode, "accessToken")).thenReturn(sList);
 		Mockito.when(schoolService.getSchoolDetails(mincode, "accessToken", exception)).thenReturn(sTrax);
 		int numberOfRecord = graduationService.createAndStoreSchoolReports(uniqueList,"REGALG","accessToken");
-		assertEquals(2,numberOfRecord);
+		assertEquals(1,numberOfRecord);
 	}
 
 	@Test