Step 1: Add a Transition Date Variable:
DECLARE @TransitionDate DATE = ( SELECT AV.ValueAsDateTime FROM [AttributeValue] AV
INNER JOIN Attribute A ON A.Id = AV.AttributeId
WHERE A.[Key] = 'GradeTransitionDate'
)
Step 2: Join to the Grade Defined Value and use the 'GetGrade' function with the person's graduation year and the Transition Date variable to calculate the correct grade:
LEFT JOIN DefinedValue DV ON DV.[Value] = [dbo].[ufnCrm_GetGradeOffset](P.GraduationYear, @TransitionDate) AND DV.DefinedTypeId = 51

Example (Central AZ) New Student Report: https://rock.centralaz.com/page/2532?NewStudentsOnly=True