Final answer:
Ratification in government contracting refers to the approval of previously unauthorized expenditures and typically involves using funds from the fiscal year when the purchase was made. In the example given, the correct funds to use for a purchase made in FY13 and ratified in the next fiscal year, would be the FY13 funds.
Step-by-step explanation:
The process of ratification is often used in the context of approving a treaty or a constitution, as seen in the historical example of the U.S. Constitution. Ratification involves formal approval, typically through a vote or a similar decision-making process. In the case of government spending and contracts, ratification can refer to the approval of previously unauthorized expenditures or contracts. In the scenario provided, if an unauthorized contract is made in one fiscal year (FY) and later ratified in the subsequent fiscal year, the general rule is to charge the expenses to the funds of the fiscal year in which the purchase was originally made.
Regarding the specific question asked, for the purchase made by 'Joe' on 05 Sep 13 which was ratified on Oct 1, 2014, the correct action would be to use funds from the fiscal year when the actual purchase was made, which is FY13 funds. Therefore, the correct answer to the question is c) FY13 funds.