That is normal, or at least when I reloaded one of my old saves at that point I didn't get any reward for reporting Elrath (except an invitation to the castle). You get experience and rep when picking up the letter to Elrath in his basement, though (didn't check any of the earlier sections of that quest).
Completing any of the quests that give you an invitation to the castle will break the escort quest, if you have not already completed it (they move on their own). The two sick soldiers also leave Aleroth, and if you didn't finish the catacombs, Mardaneus will be cured without your assistance.
Maybe the reward you get from Ralph is for the escort quest (when you get the invitation), rather than for reporting Elrath?
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