Your sorting is grouping all the records into a single group where you need two groups. Unlike sub summary layout parts in a summary report, the "found set, summarized data" data source settings only support grouping records by sorting on a single field. You can't sort by year, then sort by a secondary category via a value in a second field and get category groups within each larger year based grouping.
You may, however, be able to concoct a calculation field that has a value that combines year with the sub category data that you can use as your single sort field to get the needed groups for your chart.
Agggg, Since this is true, is it even possible to do two+ column charts? I had plans for a Budget vs Actual column chart later in the project. But now....
Thanks for the quick answer.
Yes it is possible, but it can take some creativity to come up with a calculation field that serves the place of two fields in your sort order to get the needed columns in your chart.