Fiscal Year 2013 Department of Transportation Budgetary Compliance Report For the Fiscal Year Ended June 30, 2013 Department of Audits and Accounts Greg S. Griffin State Auditor State Government Division David Pennington, Director DEPARTMENT OF TRANSPORTATION BUDGETARY COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 -- TABLE OF CONTENTS -- Page COMPLIANCE SECTION Independent Accountant's Report ........................................................................................................ i Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund ............................................................................................................... 1 FINDINGS SECTION Schedule of Findings and Questioned Costs Summary Schedule of Prior Year Findings and Questioned Costs ....................................... 12 (This page intentionally left blank) COMPLIANCE SECTION (This page intentionally left blank) (This page intentionally left blank) Department of Transportation Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30, 2013 Airport Aid State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds Total Airport Aid Air Transportation State Appropriation State General Funds Other Funds Total Air Transportation Capital Construction Project State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Highway Administration - Highway Planning and Construction Other Funds Total Capital Construction Project Capital Maintenance Project State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction Other Funds Total Capital Maintenance Project Construction Administration State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Highway Administration - Highway Planning and Construction Other Funds Total Construction Administration Data Collection, Compliance and Reporting State Appropriation State General Funds State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Highway Administration - Highway Planning and Construction Other Funds Original Appropriation Amended Appropriation Final Budget Funds Current Year Revenues $ 3,064,237.00 35,537,002.00 6,350.00 38,607,589.00 $ 2,099,780.00 35,537,002.00 970,807.00 38,607,589.00 $ 2,099,780.00 35,537,002.00 970,807.00 38,607,589.00 $ 2,099,780.00 27,798,317.83 276,656.34 30,174,754.17 - - - - - - - - - - - - 211,655,479.00 - 675,252,699.00 - - 886,908,178.00 220,538,536.00 - 675,252,699.00 - - 895,791,235.00 220,538,536.00 499,155,446.00 749,226,994.00 - 53,844,792.00 1,522,765,768.00 220,538,536.00 - 748,381,573.06 - 58,877,401.67 1,027,797,510.73 60,560,150.00 128,218,385.00 - 188,778,535.00 60,560,150.00 128,218,385.00 - 188,778,535.00 60,560,150.00 318,290,723.00 285,879,550.00 469,134.00 665,199,557.00 60,560,150.00 - 285,878,648.12 476,133.73 346,914,931.85 74,357,642.00 - 64,892,990.00 - 165,000.00 139,415,632.00 78,328,268.00 - 64,892,990.00 - 165,000.00 143,386,258.00 78,328,268.00 60,549,166.00 61,342,990.00 30,113.00 24,321,210.00 978,157.00 225,549,904.00 78,328,268.00 - 61,197,683.52 30,098.03 2,851,987.40 15,687,229.03 158,095,265.98 2,804,774.00 - 8,270,257.00 - 62,257.00 2,804,774.00 - 8,270,257.00 - 62,257.00 2,804,774.00 2,333,882.00 8,270,257.00 - 184,466.00 2,804,774.00 - 5,174,630.25 - 856,700.68 Total Data Collection, Compliance and Reporting 11,137,288.00 11,137,288.00 13,593,379.00 8,836,104.93 1 Available Compared to Budget Prior Year Reserve Program Transfers Carry-Over or Adjustments Total Funds Available Variance Positive (Negative) Expenditures Compared to Budget Variance Actual Positive (Negative) Excess (Deficiency) of Funds Available Over/(Under) Expenditures $ -$ 733,761.36 733,761.36 - $ 2,099,780.00 $ - $ 2,098,611.60 $ 1,168.40 $ - 27,798,317.83 (7,738,684.17) 27,798,317.83 - 1,010,417.70 39,610.70 112,376.70 7,738,684.17 858,430.30 - 30,908,515.53 (7,699,073.47) 30,009,306.13 8,598,282.87 1,168.40 898,041.00 899,209.40 - - - - - - - - - - - - - - - - - - - - - - 499,155,445.67 - - 499,155,445.67 - 220,538,536.00 - 499,155,445.67 - 748,381,573.06 - - - - - 58,877,401.67 - 1,526,952,956.40 - (0.33) (845,420.94) - 5,032,609.67 4,187,188.40 211,430,320.77 33,928,578.30 748,381,573.06 - 53,722,997.21 1,047,463,469.34 9,108,215.23 465,226,867.70 845,420.94 - 121,794.79 475,302,298.66 9,108,215.23 465,226,867.37 - 5,154,404.46 479,489,487.06 318,290,722.61 318,290,722.61 - 60,560,150.00 - 318,290,722.61 - 285,878,648.12 - 476,133.73 - 665,205,654.46 (0.39) (901.88) 6,999.73 6,097.46 56,399,077.17 29,868.00 285,878,648.12 469,133.73 342,776,727.02 4,161,072.83 318,260,855.00 901.88 0.27 322,422,829.98 4,161,072.83 318,260,854.61 7,000.00 322,428,927.44 - 60,549,166.01 - - 60,549,166.01 - 78,328,268.00 - 75,788,325.70 - 60,549,166.01 0.01 67,765.90 - 61,197,683.52 - 30,098.03 (145,306.48) (14.97) 61,197,683.52 30,098.03 - 2,851,987.40 (21,469,222.60) 2,851,987.40 - 15,687,229.03 14,709,072.03 967,605.89 - 218,644,431.99 (6,905,472.01) 140,903,466.44 2,539,942.30 60,481,400.10 145,306.48 14.97 21,469,222.60 10,551.11 84,646,437.56 2,539,942.30 60,481,400.11 - 14,719,623.14 77,740,965.55 - 2,333,882.62 - - 2,333,882.62 - - - 2,804,774.00 - - - 2,685,584.87 - 2,333,882.62 0.62 - - 5,174,630.25 (3,095,626.75) 5,174,630.25 - - - - - - - - - 856,700.68 672,234.68 152,209.40 - 11,169,987.55 (2,423,391.45) 8,012,424.52 2 119,189.13 2,333,882.00 3,095,626.75 - 32,256.60 5,580,954.48 119,189.13 2,333,882.62 - 704,491.28 3,157,563.03 (continued) Department of Transportation Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30, 2013 Departmental Administration State Appropriation State General Funds State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Highway Administration - Highway Planning and Construction Federal Recovery Funds Not Specifically Identified Other Funds Total Departmental Administration Local Maintenance and Improvement Grants State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction Other Funds Total Local Maintenance and Improvement Grants Local Road Assistance Administration State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction American Recovery and Reinvestment Act of 2009 Federal Highway Administration - Highway Planning and Construction Other Funds Total Local Road Assistance Administration Local Road Assistance - Special Project 1 State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Total Local Road Assistance - Special Project 1 Local Road Assistance - Special Project 2 State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Total Local Road Assistance - Special Project 2 Planning State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction Other Funds Total Planning Original Appropriation Amended Appropriation 51,083,000.00 - 10,839,823.00 - 898,970.00 62,821,793.00 52,803,350.00 - 10,839,823.00 - 898,970.00 64,542,143.00 110,642,250.00 - 110,642,250.00 110,642,250.00 - 110,642,250.00 16,854,565.00 - 32,758,670.00 - 595,233.00 50,208,468.00 12,354,565.00 - 32,758,670.00 - 595,233.00 45,708,468.00 - - - - - - - - 3,756,074.00 - 14,683,804.00 - 18,439,878.00 3,756,074.00 - 14,683,804.00 - 18,439,878.00 Final Budget Funds Current Year Revenues 52,803,350.00 24,186,764.00 8,339,823.00 12,631.00 8,131.00 - 944,191.00 86,294,890.00 52,803,350.00 - 8,034,289.63 12,600.71 8,130.30 - 3,027,403.19 63,885,773.83 110,642,250.00 75,916,075.00 - 186,558,325.00 110,642,250.00 - 22,418.47 110,664,668.47 12,354,565.00 48,612,567.00 104,558,670.00 1,547,701.00 606,237.00 167,679,740.00 12,354,565.00 - 104,529,773.84 1,547,700.09 2,137,595.66 120,569,634.59 - - - - - - - - - - - - 3,756,074.00 3,905,266.00 15,708,849.00 23,370,189.00 3,756,074.00 - 15,707,858.02 1,500.00 19,465,432.02 3 Available Compared to Budget Prior Year Reserve Program Transfers Carry-Over or Adjustments Total Funds Available Variance Positive (Negative) Expenditures Compared to Budget Variance Actual Positive (Negative) Excess (Deficiency) of Funds Available Over/(Under) Expenditures - 24,186,763.98 - - 24,186,763.98 - - - 52,803,350.00 - 24,186,763.98 - 8,034,289.63 - 12,600.71 - 8,130.30 - - - 3,027,403.19 - 88,072,537.81 - - - 52,564,461.82 (0.02) 887,680.66 (305,533.37) (30.29) 8,034,289.63 12,600.71 (0.70) - 2,083,212.19 8,130.30 - 83,774.50 1,777,647.81 61,590,937.62 . 238,888.18 23,299,083.34 305,533.37 30.29 0.70 - 860,416.50 24,703,952.38 238,888.18 23,299,083.32 - 2,943,628.69 26,481,600.19 75,916,075.45 75,916,075.45 - 110,642,250.00 - 75,916,075.45 - - - 22,418.47 - 186,580,743.92 0.45 22,418.47 22,418.92 109,988,081.55 45,037,880.86 - 155,025,962.41 654,168.45 30,878,194.14 31,532,362.59 654,168.45 30,878,194.59 22,418.47 31,554,781.51 48,612,567.20 48,612,567.20 - 12,354,565.00 - 48,612,567.20 - 104,529,773.84 - 1,547,700.09 - 2,137,595.66 - 169,182,201.79 0.20 (28,896.16) (0.91) 1,531,358.66 1,502,461.79 3,482,998.10 - 104,529,773.84 1,547,700.09 13,936.03 109,574,408.06 8,871,566.90 48,612,567.00 28,896.16 0.91 592,300.97 58,105,331.94 8,871,566.90 48,612,567.20 2,123,659.63 59,607,793.73 - - - - - - - 151,350.86 - 151,350.86 151,350.86 - - 151,350.86 151,350.86 - 151,350.86 151,350.86 - - 151,350.86 - - - - - - - 639,677.52 - 639,677.52 639,677.52 - - 639,677.52 639,677.52 - 639,677.52 639,677.52 - - 639,677.52 3,905,266.00 3,905,266.00 - 3,756,074.00 - 3,905,266.00 - 15,707,858.02 - 1,500.00 - 23,370,698.02 (990.98) 1,500.00 509.02 1,875,675.57 - 15,707,858.02 - 17,583,533.59 1,880,398.43 3,905,266.00 990.98 - 5,786,655.41 1,880,398.43 3,905,266.00 1,500.00 5,787,164.43 (continued) 4 Department of Transportation Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30, 2013 Ports and Waterways State Appropriation State General Funds Federal Funds Federal Highway Administration - Highway Planning and Construction Other Funds Total Ports and Waterways Rail State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Other Funds Total Rail Routine Maintenance State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction American Recovery and Reinvestment Act of 2009 Federal Highway Administration - Highway Planning and Construction Other Funds Total Routine Maintenance Traffic Management and Control State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction Federal Funds Not Specifically Identified American Recovery and Reinvestment Act of 2009 Federal Highway Administration - Highway Planning and Construction Other Funds Total Traffic Management and Control Transit State Appropriation State General Funds Federal Funds Federal Funds Not Specifically Identified Federal Highway Administration - Highway Planning and Construction American Recovery and Reinvestment Act of 2009 Federal Recovery Funds Not Specifically Identified Other Funds Total Transit Payments to the State Road and Tollway Authority State Appropriation State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction Other Funds Total Payments to the State Road and Tollway Authority Original Appropriation Amended Appropriation 941,812.00 - 941,812.00 836,370.00 - 836,370.00 356,891.00 88,239.00 445,130.00 122,464.00 88,239.00 210,703.00 173,068,804.00 - 24,886,452.00 - 642,602.00 198,597,858.00 192,250,223.00 - 24,886,452.00 - 642,602.00 217,779,277.00 19,640,861.00 - 35,670,542.00 - 4,026,240.00 59,337,643.00 33,837,425.00 - 35,670,542.00 - 4,026,240.00 73,534,207.00 3,277,847.00 31,324,367.00 - 6,000.00 34,608,214.00 2,949,962.00 31,324,367.00 - 6,000.00 34,280,329.00 62,351,674.00 - 148,156,201.00 - 210,507,875.00 89,329,020.00 - 148,156,201.00 - 237,485,221.00 Final Budget Funds Current Year Revenues 836,370.00 3,922,000.00 4,758,370.00 836,370.00 3,121,930.00 3,958,300.00 122,464.00 542,798.00 7,378,726.00 8,043,988.00 122,464.00 542,797.29 6,885,076.89 7,550,338.18 192,250,223.00 12,563,592.00 22,786,452.00 57,142.00 3,360,551.00 231,017,960.00 192,250,223.00 - 22,198,938.15 57,141.76 3,795,925.56 218,302,228.47 33,837,425.00 70,169,008.00 24,666,542.00 51,304.00 28,396.00 40,857,975.00 169,610,650.00 33,837,425.00 - 17,168,587.25 51,303.95 28,396.00 28,945,362.75 80,031,074.95 2,949,962.00 37,976,104.00 787,757.00 12,078,987.00 1,370,081.00 55,162,891.00 2,949,962.00 37,949,703.55 787,757.00 9,542,211.84 801,271.85 52,030,906.24 89,329,020.00 308,019.00 150,931,906.00 - 240,568,945.00 89,329,020.00 - 150,931,905.72 - 240,260,925.72 5 Available Compared to Budget Prior Year Reserve Program Transfers Carry-Over or Adjustments Total Funds Available Variance Positive (Negative) Expenditures Compared to Budget Variance Actual Positive (Negative) Excess (Deficiency) of Funds Available Over/(Under) Expenditures - 1,495,895.45 1,495,895.45 12,563,591.94 6,730,120.48 19,293,712.42 70,169,008.85 10,392,045.75 80,561,054.60 1,915,753.25 1,915,753.25 - 836,370.00 - - - 3,121,930.00 - 3,958,300.00 - (800,070.00) (800,070.00) 831,760.46 3,118,500.00 3,950,260.46 4,609.54 803,500.00 808,109.54 4,609.54 3,430.00 8,039.54 - 122,464.00 - 122,464.00 - 542,797.29 (0.71) 542,797.29 - 8,380,972.34 1,002,246.34 6,445,561.42 - 9,046,233.63 1,002,245.63 7,110,822.71 - 0.71 933,164.58 933,165.29 - 1,935,410.92 1,935,410.92 - 192,250,223.00 - 12,563,591.94 - 22,198,938.15 - 57,141.76 - 10,526,046.04 - 237,595,940.89 (0.06) (587,513.85) (0.24) 7,165,495.04 6,577,980.89 184,311,701.28 10,942,659.23 22,198,938.15 57,141.76 1,317,817.17 218,828,257.59 7,938,521.72 1,620,932.77 587,513.85 0.24 2,042,733.83 12,189,702.41 7,938,521.72 1,620,932.71 9,208,228.87 18,767,683.30 - 33,837,425.00 - 70,169,008.85 - 17,168,587.25 - 51,303.95 - 28,396.00 - 39,337,408.50 - 160,592,129.55 - 0.85 (7,497,954.75) (0.05) (1,520,566.50) (9,018,520.45) 32,007,940.65 - 17,168,587.25 51,303.95 28,396.00 12,724,837.69 61,981,065.54 1,829,484.35 70,169,008.00 7,497,954.75 0.05 28,133,137.31 107,629,584.46 1,829,484.35 70,169,008.85 - 26,612,570.81 98,611,064.01 - 2,949,962.00 - 2,922,760.31 - 37,949,703.55 - 787,757.00 (26,400.45) - 37,949,703.55 787,757.00 - 9,542,211.84 (2,536,775.16) 9,542,211.84 - 2,717,025.10 1,346,944.10 1,370,080.68 - 53,946,659.49 (1,216,231.51) 52,572,513.38 27,201.69 26,400.45 - 2,536,775.16 0.32 2,590,377.62 27,201.69 - 1,346,944.42 1,374,146.11 308,018.54 308,018.54 - 89,329,020.00 - 308,018.54 - 150,931,905.72 - - - 240,568,944.26 (0.46) (0.28) (0.74) 89,329,020.00 0.31 150,931,905.72 - 240,260,926.03 308,018.69 0.28 - 308,018.97 - 308,018.23 - 308,018.23 (continued) 6 Department of Transportation Statement of Funds Available and Expenditures Compared to Budget By Program and Funding Source Budget Fund For the Fiscal Year Ended June 30, 2013 Economic Development Infrastructure Grants State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Other Funds Total Economic Development Infrastructure Grants Program Not Identified State Appropriation State General Funds State Motor Fuel Funds State Funds - Prior Year Carry-Over State Motor Fuel Funds - Prior Year Federal Funds Federal Highway Administration - Highway Planning and Construction Other Funds Total Program Not Identified Original Appropriation Amended Appropriation - - - - - - - - - - - - - - - - - - Final Budget Funds Current Year Revenues 6,000,000.00 - - - 6,000,000.00 - - - - - - - - - - (3,033,630.26) - (3,033,630.26) Budget Unit Totals $ 2,011,398,143.00 $ 2,081,159,751.00 $ 3,644,782,145.00 $ 2,485,504,219.87 7 Available Compared to Budget Prior Year Reserve Program Transfers Carry-Over or Adjustments Total Funds Available Variance Positive (Negative) Expenditures Compared to Budget Variance Actual Positive (Negative) Excess (Deficiency) of Funds Available Over/(Under) Expenditures 6,000,000.00 - 6,000,000.00 - 6,000,000.00 - - - - - - - - - 6,000,000.00 - 6,000,000.00 - 6,000,000.00 - - 31,767,165.16 3,501,000.00 35,268,165.16 $ 1,179,317,278.70 $ - - - - - - - - - - - - - 31,767,165.16 31,767,165.16 - - 31,767,165.16 - - - - - - - 467,369.74 467,369.74 - - 467,369.74 - 32,234,534.90 32,234,534.90 - - 32,234,534.90 - $ 3,664,821,498.57 $ 20,039,353.57 $ 2,503,644,080.84 $ 1,141,138,064.16 $ 1,161,177,417.73 8 (This page intentionally left blank) FINDINGS SECTION (This page intentionally left blank) DEPARTMENT OF TRANSPORTATION Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30, 2013 SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-484-12-100 FS-484-12-101 Further Action Not Warranted Partially Resolved FS-484-12-100 Budgetary Compliance Deficiencies Control Category: Internal Control Impact: Compliance Impact: Accounting Controls (Overall) General Ledger Financial Reporting and Disclosure Budget Material Weakness Material Noncompliance Issues reported in finding # FS-484-12-100 pertain to transactions recorded in fiscal year 2012; no new issues were reported in FY 2013. In FY 2013, the Georgia Department of Transportation (GDOT) recorded State Motor Fuel funds equal to appropriated amounts and no transactions were reported in the Program Transfers or Adjustments column. FS-484-12-101 Budgetary Noncompliance on Statutory (Budgetary) Basis Financial Statements Control Category: Accounting Controls (Overall) General Ledger Financial Reporting and Disclosure Budget Internal Control Impact: Material Weakness Compliance Impact: Nonmaterial Noncompliance In FY 2013, GDOT monitored current year and prior year program fund balances monthly and made adjustments as necessary to ensure compliance with the Constitution of the State of Georgia and to avoid prior year ending fund balance deficits. In future years, there may be instances where prior year deficits occur due to the application of the Georgia State Accounting Office's (SAO) Prior Year Carry-Over Policy if prior year adjustments to expense are necessary. SAO's current policy requires prior year reserves to be reclassified as current year funds available. The policy does not provide guidance on restoring prior year surplus fund balances to prior year available funds if funds are needed to cover adjustments to prior year expenses. GDOT met with SAO during fiscal year 2013 to discuss this issue and will continue to seek clarification from SAO on the proper treatment of adjustments to prior year expenses and the application of the prior year carry-over policy. 12 DEPARTMENT OF TRANSPORTATION Schedule of Findings and Questioned Costs For the Fiscal Year Ended June 30, 2013 GDOT has also been working to properly identify and apply the Other Funds reserve balance. These funds include rebates, overpayments of vendor invoices, overbillings by vendors, and employee reimbursements recorded in prior years as miscellaneous revenue rather than credit expenditures. Also included are miscellaneous receipts for sales and services that have not been properly applied to individual projects to fund eligible expenses. GDOT has several contract employees dedicated to this effort who are researching prior year files to identify unapplied funds in order to apply them to the appropriate projects. Each project must be researched and corrected to bring revenue and expense into balance by fund source, program and budget year. This process is very tedious, requires many steps, significant research and multiple entries into the financial systems. GDOT identified and applied approximately 70% of the Other Funds reserve balance as of the June 30, 2013 year-end close and intends to identify and apply the remaining balances prior to the close of fiscal year 2014. Additionally, the Revenue Unit is monitoring the fund balance of other funds monthly to ensure funds are applied appropriately. GDOT has also filled three permanent, full-time positions in the Revenue Unit responsible for the recording of local participation funds, credit expenditures and miscellaneous revenue. The Assistant Accounting Administrator and the Accounts Receivable Manager are also working with SAO to determine the proper treatment of all miscellaneous funds and are in the process of revising current policies and procedures accordingly to ensure proper treatment in fiscal year 2014 and future years. 13