When I look at the Topics page of the Course, the activity that is graded shows that the grade has not been achieved. The note that appears when you roll over the X is Completed (did not achieve pass grade). Here's the screen shot:
But when you view the student's grade report, you see that the activity did indeed receive a Pass as seen on both screens where the activity grade appears:
I've obviously missed a setting somewhere, or I have course completion confused with the grade, but I have no idea where to begin to find the connections I need at this point.