A is wrong because of SV agreement- the subject is influx (singular) so it should be "has" not "have"
B is wrong because "prompted" implies that this event has happened and ended in the past i.e is not ongoing
C is wrong because it is using a past perfect tense which requires a sequence of events- there is no sequence in this passage.
E is wrong because it makes the same mistake as option B. It also distorts the intended meaning by saying "to reconsider allotting funds quarterly". This implies that the university is is reconsidering distributing funds every 3 months in general. Where as the intended meaning is that the university is reconsidering on the amount of distributions every 3 months.
D is correct because it fixes the verb tense error- The present perfect tense indicates that the action happened in the past, but is continuing today.
These are my thoughts on the answer choice. If anyone finds any errors, or any new things to point out, can you let me know please.
Also I have a question.. Can the phrase "A recent influx" act as event 1, and "prompted" act as event 2? To justify the use of past perfect tense? I know option C would still be wrong because it would imply that "prompted" was event 1 and "A recent influx" was event 2, which is nonsensical. But is my logic correct?